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Cut my ad budget 40% after 2 flat months, conversions went UP in Albuquerque
Ran a small e-commerce side gig for about 18 months. Paid ads were my main traffic source, around $2,800 a month across google and meta. Sales were flat for August and September, so I pulled back to $1,700 out of frustration. Next 30 days, revenue per dollar actually jumped from 2.1x to 3.4x. My gut says the algo was just serving junk because I kept feeding it. But my buddy thinks it's seasonal noise and I'm reading too much into 2 data points. Which side is more likely? Anyone else see a drop in spend fix a broken funnel instead of killing it?
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the_viola24d ago
Kinda sounds like you were paying to train the algorithm on garbage traffic. Same thing happened to me with a pet product line. I cut spend by half, tightened the audience to just people who'd actually bought before, and the CPA dropped almost overnight. Your buddy's not wrong that two months is a small sample, but 3.4x vs 2.1x over 30 days is a pretty solid jump. Maybe the bigger issue is you had too many broad campaigns running and the system was scooping up window shoppers. I'd test, not with a full cut, but with a leaner audience and see if the trend holds for another month before you call it a fix.
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