{"id":26707,"date":"2023-06-12T07:24:15","date_gmt":"2023-06-12T15:24:15","guid":{"rendered":"https:\/\/www.intentwise.com\/blog\/?p=26707"},"modified":"2024-02-06T05:50:59","modified_gmt":"2024-02-06T13:50:59","slug":"a-new-way-to-understand-why-your-ad-revenue-dropped","status":"publish","type":"post","link":"https:\/\/www.intentwise.com\/blog\/ad-optimization\/a-new-way-to-understand-why-your-ad-revenue-dropped\/","title":{"rendered":"A new way to understand why your ad revenue dropped","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n<p class=\"has-black-color has-text-color\">If you\u2019ve been advertising on Amazon or Walmart, you\u2019ve certainly run into this dilemma. You log into your account one day, and you realize your ad revenue dropped unexpectedly.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">What went wrong?&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Figuring out <em>why<\/em> your stats changed\u2014why your revenue went down, why your ACOS jumped, and so on\u2014isn\u2019t easy. There is just so much data to sort through before you can locate the culprit.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">If you\u2019re a big enough brand, you probably run dozens or hundreds of ad campaigns, each of which contains <a href=\"https:\/\/feedvisor.com\/resources\/amazon-marketing-advertising-strategies\/a-guide-to-amazon-ppc-keyword-match-type-broad-phrase-or-exact\/\">hundreds of keywords and product targets<\/a>. Not to mention, these campaigns cut across many categories\u2014there are Sponsored Brands campaigns, Sponsored Brands Video campaigns, and so on.\u00a0<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">That\u2019s a lot of data points to track.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-black-color has-text-color\" id=\"h-what-s-the-best-method-for-identifying-ad-revenue-changes\"><strong>What\u2019s the best method for identifying ad revenue changes?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">To identify what is going wrong\u2014or, if your revenue is up, what is going right\u2014you first need to download the data from Amazon or Walmart.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Then, comb through each line of the spreadsheet to find the campaigns, keywords, search terms, and more that are responsible for that sudden shift in performance.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>How do you sort through all of this data? <\/strong>We recommend laddering down through your account. Start with the highest levels of your ad system, and then work your way down until you\u2019ve identified the specific ad entities that might be the problem.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Here are the layers, in order, we recommend that you go through:&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>#1. Overall account:<\/strong> This will likely be your signal, in the first place, that something has gone wrong. If your overall account revenue is down 10%, for instance, then you want to figure out what happened.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>#2. Campaign types: <\/strong>The next step is to see whether a certain type of campaign was responsible for that drop in ad revenue. You should look through all of your categories of campaigns\u2014SBV campaigns, SP automatic campaign, SP keyword targeting campaigns, etc\u2014and see whether one in particular is the reason behind that big revenue drop.\u00a0<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>#3. Campaigns:<\/strong> Once you\u2019ve identified the campaign type that might be at fault, you want to look at your specific campaigns. Are one or two of the campaigns disproportionately responsible for your revenue decrease? Those are the ones to focus on next.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>#4. Keywords\/Product Targets:<\/strong> Now you\u2019ve reached the level of figuring out exactly <em>why<\/em> your revenue is getting so much worse. In the underperforming campaigns, are certain keywords most responsible for your overspending?&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>#5. Search Terms:<\/strong> Similarly, can we trace back the underperformance to a few long-tail search terms that were previously driving significant volume?<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">By the time you\u2019ve reached the keyword and search terms layer, you\u2019ll hopefully identify what needs fixing. It\u2019s very possible that you can trace a big drop in revenue to a handful of badly performing keywords.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-black-color has-text-color\" id=\"h-remember-don-t-evaluate-change-evaluate-contribution-to-change\"><strong>Remember: Don\u2019t evaluate change\u2014evaluate <\/strong><strong><em>contribution<\/em><\/strong><strong> to change<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">During this troubleshooting process, there\u2019s one trap you should avoid. For every line item you evaluate, make sure you are contextualizing its performance <em>against the overall spend <\/em>associated with that line item.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Just because one keyword or campaign has a big drop in the revenue it generates doesn\u2019t mean it\u2019s responsible for your overall performance issues. If it doesn\u2019t receive a lot of spend, then it probably isn\u2019t the culprit.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Here\u2019s what we mean: Let\u2019s say you discover that Campaign A had a 30% decrease in revenue last month. Your natural instinct might be to assume that Campaign A is responsible for your account-level revenue woes, right? But if Campaign A is only a fraction of your overall spend, then it probably isn\u2019t the problem.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Meanwhile, Campaign B\u2014your biggest campaign\u2014might have seen a modest 5% increase in revenue, but since it is responsible for so much more spend, then it is more likely the problem.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">That, in essence, is the difference between <strong>Change %<\/strong> and <strong>Contribution to Change %.<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Change % just says by how much the revenue is going up or down\u2014but the Contribution to Change % accounts for the extent to which a single keyword or a single campaign is impacting your account overall.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-black-color has-text-color\" id=\"h-what-if-there-was-an-easier-way-to-identify-account-level-changes\"><strong>What if there was an easier way to identify account-level changes?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">The system we discussed above works, but it is extremely time consuming.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">At Intentwise, we wanted to make it easier for brands and agencies to figure out what is driving increases or decreases in their revenue.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">So, this month, we launched a new feature in <a href=\"https:\/\/www.intentwise.com\/analytics-cloud\">Intentwise Analytics Cloud<\/a> that automatically measures <strong>Contribution to Change %<\/strong>.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"354\" src=\"https:\/\/www.intentwise.com\/blog\/wp-content\/uploads\/2023\/06\/image-18-1024x354.png\" alt=\"\" class=\"wp-image-26708\" srcset=\"https:\/\/www.intentwise.com\/blog\/wp-content\/uploads\/2023\/06\/image-18-1024x354.png 1024w, https:\/\/www.intentwise.com\/blog\/wp-content\/uploads\/2023\/06\/image-18-300x104.png 300w, https:\/\/www.intentwise.com\/blog\/wp-content\/uploads\/2023\/06\/image-18-768x266.png 768w, https:\/\/www.intentwise.com\/blog\/wp-content\/uploads\/2023\/06\/image-18-560x194.png 560w, https:\/\/www.intentwise.com\/blog\/wp-content\/uploads\/2023\/06\/image-18.png 1159w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Rather than comb through a complex spreadsheet, brands that use Intentwise can see a flashing sign that says: <em>Here\u2019s the line item that\u2019s contributing to your sudden increase in spend<\/em>.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">For now, we are able to measure Contribution to Change % for spend and revenue. That means we can identify the keywords, campaigns, product targets, and so on that are responsible for a sudden increase or decrease in spend or revenue. (From there, it\u2019ll be easy to calculate metrics like ACOS.)&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">In the near future, we\u2019ll add impressions and clicks as a measure, so you can get the same view across those two categories.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Do you have a strategy for decoding fluctuations in your spend or your revenue? We\u2019d love to know.&nbsp;<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center\"><em>(Want more content like this every week? Be sure to <a href=\"https:\/\/www.intentwise.com\/newsletter\">subscribe to our newsletter<\/a>.) <\/em><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>If you\u2019ve been advertising on Amazon or Walmart, you\u2019ve certainly run into this dilemma. You log into your account one day, and you realize your ad revenue dropped unexpectedly.&nbsp; What went wrong?&nbsp; Figuring out why your stats changed\u2014why your revenue went down, why your ACOS jumped, and so on\u2014isn\u2019t easy. There is just so much [&hellip;]<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":22,"featured_media":26709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[91],"tags":[87,24,96,155],"class_list":["post-26707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ad-optimization","tag-acos","tag-amazon-advertising-optimization","tag-mobile","tag-newsletter"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why did my Amazon CPC revenue drop?<\/title>\n<meta name=\"description\" content=\"Trying to understand why your account underperformed? 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