Solved: High CPMs and Poor Ad Performance for Beauty Store

Hi there,

Thanks for getting in touch! I'm happy to give you some initial thoughts and guidance on your ad account issues, especially regarding those high CPMs and low sales.

We'll need to look at your targeting...

First off, high CPMs in the beauty niche can often point to a few common issues. One of the most frequent culprits is overly broad targeting. Think of it this way: are you showing your ads to practically everyone, or are you laser-focusing on individuals who are genuinely interested in your specific type of beauty products? If you're targeting a very wide demographic, you're essentially paying to show your ads to a lot of people who simply aren't interested, which drives up your CPMs.

Narrowing Your Focus: Consider this: Instead of just targeting "women" or "beauty enthusiasts," try layering on more specific interests, demographics, and behaviours. For example, if you're selling organic skincare, you might target people interested in "organic beauty," "natural skincare," or even specific brands known for their organic products. You could also target demographics based on age, income, or location. The more specific you get, the more likely you are to reach people who are genuinely interested in what you have to offer, and the lower your CPMs will likely be.

I'd say you should check your conversion tracking...

Secondly, it's important to make sure you're accurately tracking your conversions. You mentioned that you got one purchase from $80 spent, but it's possible that you're missing some sales due to tracking issues. Ad platforms can sometimes be a bit glitchy, and it's easy to miss a few conversions if your tracking isn't set up correctly. This is a very common issue, in fact it's usually the first thing we look at when a new client comes to us with similar issues. If you're not tracking all of your sales, you're not getting an accurate picture of your ad performance, which makes it difficult to optimise your campaigns effectively.

Ensuring Accurate Tracking: Double-check your conversion tracking setup to make sure it's properly implemented on your website. Verify that the tracking code is firing correctly and that you're accurately recording all sales. If you're using a platform like Shopify, make sure your conversion tracking is properly integrated with your ad account. Also ensure you aren't missing any tracking due to new privacy laws like ITP and ATT.

You probably should test new ad creative...

Thirdly, your ad creative plays a huge role in your ad performance. In the beauty niche, visuals are everything. If your ads don't stand out and grab people's attention, they'll simply scroll past. User-generated content (UGC) can be particularly effective in this area. Instead of relying on overly polished, stock-photo-esque ads, try featuring real customers using your products. Seeing authentic, relatable content can build trust and increase engagement.

Making Your Ads Stand Out: Consider running a contest or giveaway to encourage customers to create UGC. You can also reach out to influencers or micro-influencers in the beauty niche to collaborate on content creation. High quality photography is also a must, don't fall for cheap pictures because people can always tell. At the end of the day, beauty is visual and you need to ensure people are impressed when they see your products.

You'll need to consider running retargeting ads...

Finally, don't give up on your ad account too quickly. It takes time for the algorithm to learn and optimise your campaigns. Even if your initial results aren't great, it doesn't necessarily mean that your ad account is "bad". Instead, focus on making incremental improvements to your targeting, creative, and tracking. Also, consider running retargeting ads to people who have previously engaged with your website or ads. Retargeting can be a very effective way to drive sales, especially for products that require more consideration.

Giving the Algorithm Time: The ad platform's algorithm needs time to gather data and learn who is most likely to convert. Be patient and persistent, and don't be afraid to experiment with different strategies. With the right approach, you can turn things around and start seeing better results.

This is the main advice I have for you:

Sometimes, getting a handle on all this can be tricky, especially with the ever-changing landscape of ad platforms. I've run quite a few successful campaigns for eCommerce brands, and sometimes it really helps to have an outside perspective to pinpoint what's holding you back. For instance, I remember working on a campaign for a client selling cleaning products where we saw a 633% return by testing new ad creative and audiences on Meta Ads. I also recall a campaign we ran in the women's apparel niche where we achieved a 691% return by focusing on retargeting and expanding to Pinterest ads.

If you'd like to chat more about your specific situation and how we could potentially help, feel free to book in a free consultation. It's a no-pressure call where we can discuss your challenges and explore potential solutions.

Regards,
Team @ Lukas Holschuh