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Paid Advertising
1How Paid Advertising Works2Google Search Ads3Meta Ads in Depth4Display & YouTube Ads5Ad Creative & Copywriting6Tracking & Attribution7Optimising Paid Campaigns8Campaign Structure & Budgeting9Paid Advertising Strategy
Module 7

Optimising Paid Campaigns

Launching a campaign is 20% of the work. Optimising it — reading the data, scaling winners, cutting losers, and iterating systematically — is the other 80%.

The campaign that went from 0.4× to 8× ROAS in 90 days

In 2022, an online education company launched Google and Meta campaigns for a £297 professional development course. Month 1 ROAS: 0.4× (spending more than they earned). The operations director wanted to shut everything down.

The paid media manager asked for 90 days. She had a methodical approach:

Days 1–30: Identified where the money was going. Found: 60% of Google budget was in one broad-match keyword cluster with a 0% conversion rate. Three of five Meta ad sets had never generated a single purchase. Paused all zero-conversion campaigns. Reallocated budget to what was showing early conversion signals.

Days 31–60: Tested three new landing page versions against the original. Version C (with a testimonial video above the fold) had a 4.2× higher conversion rate. Deployed Version C across all campaigns. Built a retargeting sequence for website visitors.

Days 61–90: Scaled the two Google ad groups converting below target CPA. Built lookalike audiences from the 47 purchasers in the Pixel. Launched a 3-ad retargeting sequence for add-to-cart abandoners.

Month 4 ROAS: 8.1×.

Not new campaigns. Not new creative (mostly). Systematic optimisation of what was already running.

(Illustrative scenario based on patterns common in online education advertising. Specific figures are representative of real-world outcomes — not a verified account of a specific named company.)

🔑Optimisation Is a Cycle, Not a Destination
Launching a campaign is 20% of the work. The other 80% is reading the data, pausing what does not convert, scaling what does, and testing new hypotheses — on a weekly cadence, for as long as the campaign runs. The best-performing accounts are not the ones with the best launch. They are the ones with the most disciplined optimisation cycle.

The optimisation mindset

Optimisation is a cycle, not a destination:

The most important rule: Don't optimise before you have data. The temptation to make changes in the first week (when results look bad or strange) is powerful — but changes restart the algorithm's learning phase and invalidate the data you've gathered. Allow campaigns to run for minimum 2–4 weeks and minimum 50+ clicks before drawing conclusions.

The diagnostic framework: where to look first

When a campaign underperforms, work through the funnel from top to bottom:

Step 1: Is the ad being shown? (Impression share)

Check impression share in Google Ads: what % of available auctions is your ad appearing in? If impression share is low (< 40%):

  • Budget may be too low (bidding is limited by daily spend cap)
  • Quality Score may be too low (Google isn't showing your ad because it's less relevant than competitors)
  • Targeting may be too narrow (search volume for your keywords is lower than expected)

Step 2: Is the ad being clicked? (CTR)

  • Google Search: CTR below 2% suggests the ad copy isn't matching user intent or isn't compelling enough
  • Meta feed ads: CTR below 0.8% suggests creative isn't stopping the scroll
  • Google Display: CTR below 0.1% is normal; focus on view-through conversions

Fix: improve ad copy or creative. For Google, ensure the headline includes the keyword. For Meta, test a new hook.

Step 3: Are clicks converting? (Conversion rate)

This is the most frequently broken part of the funnel. If you're getting clicks but not conversions:

  • Landing page doesn't match the ad promise (continuity failure)
  • Landing page loads too slowly (every extra second of load time measurably reduces conversion rates — research from Google/Deloitte and Akamai estimates 1–8% reduction per second depending on baseline speed, industry, and context)
  • Landing page isn't mobile-optimised
  • The offer isn't compelling (price too high, form too long, trust too low)
  • Wrong audience (clicking because of interest, not because they have purchase intent)

Step 4: Is the conversion profitable? (CPA vs. LTV)

Even with a good conversion rate, if the CPA exceeds customer value, the campaign isn't sustainable. Options:

  • Reduce CPA (better targeting, better ad, better landing page)
  • Increase offer value or AOV (higher price, upsell at checkout)
  • Increase LTV (subscription over one-time, referral programme)

The optimisation actions

Pause and reallocate: Any campaign, ad group, or ad that has received sufficient spend (5× target CPA minimum) and generated zero conversions should be paused. The budget should move to what's converting.

This sounds obvious. In practice, people rarely do it quickly enough — they "give it more time" when the data already indicates it's not working.

Keyword pruning (Google Ads): Weekly Search Terms Report review. Add irrelevant searches as negative keywords. Add high-performing searches as new exact-match keywords. Over time this makes the account increasingly precise.

Bid adjustments:

  • Device: If mobile converts at half the CPC of desktop, reduce mobile bid modifier by 30–50%
  • Time of day: If data shows conversions cluster between 9am–5pm, reduce bids overnight
  • Location: If certain postcodes or cities convert better, increase bids for those locations

Audience refinements (Meta):

  • Expand cold audiences that are converting well (1% lookalike → 2–3% lookalike)
  • Introduce new interest combinations based on who's converting
  • Test Advantage+ audience (let Meta broaden beyond your defined audience) once you have sufficient conversion data

Landing page testing: Landing page conversion rate improvements compound across all ad spend. A landing page improvement from 2% to 4% conversion rate halves your effective CPA across all campaigns — more impact than any single ad change.

Test: headline (most impactful), social proof placement, form length, CTA button copy, above-fold content.

⚡

Diagnose a Failing Campaign

25 XP
Practice diagnosing a campaign with the data below. **Campaign scenario:** Google Search campaign for a law firm. Running for 6 weeks. Budget: £50/day. **Data:** - Total spend: £1,900 - Impressions: 14,200 - Clicks: 284 (CTR: 2.0%) - Website sessions from ads: 47 (significant gap from 284 clicks — 237 "clicks" didn't result in sessions) - Contact form submissions: 2 - Cost per form submission: £950 - Target CPA: £80 **Work through the diagnostic:** 1. The 237-click gap (clicks vs. sessions) is unusual. What are 3 possible causes? 2. The contact form submission rate (2 from 47 sessions = 4.3%) is actually decent. Given the target CPA of £80, what's the real problem? 3. What would you investigate first to explain the large gap between clicks and sessions? 4. What three changes would you test first to bring CPA from £950 toward £80? 5. Should you pause the campaign, or continue while testing? What data informs this decision? _Campaign diagnosis is detective work. The data tells a story — your job is to identify which part of the funnel is broken and fix it systematically rather than guessing or making random changes._

Scaling: when and how to increase budget

Scaling a campaign means increasing spend while maintaining or improving efficiency. It's not simply "add more budget."

The scaling signals (when it's safe to scale):

  1. Consistent ROAS above target — for at least 3–4 weeks
  2. Sufficient conversion volume — the algorithm's smart bidding has data to maintain performance
  3. Proven creative — you know which ads are driving results, not guessing

How to scale (gradually):

  • Increase daily budget by no more than 20–30% at a time
  • Allow 7–10 days after each budget increase before evaluating performance
  • Large budget increases (doubling or tripling) destabilise smart bidding and often cause temporary CPA spikes

Google Ads scaling options:

  • Increase daily budget on proven campaigns
  • Add new keyword themes (new ad groups for related searches)
  • Expand geographic targeting (add new cities or regions)
  • Bid for position 1 on winning keywords

Meta Ads scaling options:

  • Increase budget on winning ad sets (20–30% at a time)
  • Expand cold audience lookalike from 1% to 2–3%
  • Duplicate winning ad sets and test new audiences with the same creative
  • Launch new creatives inspired by winning ads to address creative fatigue

Creative fatigue: Every ad eventually exhausts its audience. Frequency (the average number of times someone in your target audience has seen your ad) is the key signal. When frequency exceeds 3–5 for a Meta ad and performance drops, the audience has seen the ad enough — introduce new creative.

There Are No Dumb Questions

"How do I know if poor performance is caused by bad creative, bad targeting, or a bad offer?"

Isolate each variable: If CTR is low (people aren't clicking), the problem is creative or targeting. If CTR is high but conversion rate is low, the problem is landing page or offer. If conversion rate is fine but CPA is too high, the problem is bidding efficiency or audience cost. The funnel structure tells you where to look — start at the top (impressions and CTR) and work down (clicks, sessions, conversions, CPA).

"When should I give up on a campaign vs. keep optimising?"

Run the maths first. Calculate: if your conversion rate improved to your desired level, would the campaign be profitable? If yes — keep optimising. If no (the economics don't work at any realistic conversion rate) — the campaign concept needs rethinking, not just the execution. A campaign with a £15 product and £40 CPC economics cannot be optimised to profitability; no amount of ad copy testing changes the unit economics.

The optimisation calendar

Structure your optimisation work to avoid both paralysis (making no changes) and chaos (changing everything constantly):

FrequencyReview focus
DailyPacing (is budget being spent appropriately?), anomaly check (unexpected spend spikes or performance drops)
WeeklySearch Terms Report (Google), creative performance, audience performance, keyword bids
Bi-weeklyLanding page performance, A/B test results, CPA trends
MonthlyFull account review, budget reallocation, new test planning, performance vs. goals
QuarterlyStrategy review, channel mix assessment, new campaign concepts

⚡

Create Your Optimisation Playbook

25 XP
Build a personal optimisation playbook for one paid advertising account. The playbook should include: 1. **Success thresholds:** Define the specific numbers that mean "working" for this account: - Target CPA (£/lead or £/purchase) - Target ROAS (if e-commerce) - Minimum acceptable CTR per platform - Maximum acceptable CPC per platform 2. **Pause rules:** Define specific triggers for pausing underperforming elements: - "Pause a Google ad group if it has spent £[X] without a conversion" - "Pause a Meta ad set if ROAS < [X] after [Y] days and [Z] spend" 3. **Scale rules:** Define specific triggers for scaling: - "Increase budget by 25% if ROAS > [X] for [Y] consecutive days" - "Duplicate this ad set to a new audience if [condition]" 4. **Weekly review checklist:** List the 8–10 specific things you'll check every week (Search Terms Report, creative frequency, CPA by campaign, etc.) 5. **Creative refresh trigger:** At what frequency or threshold do you introduce new creative to avoid fatigue? _An optimisation playbook converts reactive (checking when something goes wrong) to proactive (knowing exactly what to look for and when). The best-performing accounts are managed by people who review them on a schedule, not by people who react to crises._

Back to the education company

The 8× ROAS wasn't a creative breakthrough or a lucky audience. It was 90 days of weekly decisions: pause the broad-match keyword cluster burning 60% of budget with zero conversions, test three landing page variations, deploy the one that converted 4.2× better, build retargeting sequences from real purchaser data. None of those actions were dramatic — but each one compounded. Month 1 ROAS of 0.4× became Month 4 ROAS of 8.1× because a methodical practitioner treated the data as a diagnostic, not a verdict. Optimisation isn't about finding the perfect campaign — it's about 90 days of not ignoring what the data is telling you.

Key takeaways

  • Don't optimise before you have data. Allow 2–4 weeks minimum and 50+ clicks before drawing conclusions or making changes. Early interventions restart the learning phase.
  • Work through the funnel diagnostically. Impression → CTR → click-to-session rate → conversion rate → CPA. Each stage has different causes and fixes.
  • Pause losers fast; scale winners carefully. Budget reallocated from non-converters to converters improves ROAS without increasing spend. Scale budgets 20–30% at a time to maintain algorithm stability.
  • Landing page optimisation has the highest leverage. A conversion rate improvement applies across all ad spend simultaneously — more impact than any single ad change.
  • Creative fatigue is real. Monitor Meta ad frequency; refresh creative when frequency exceeds 3–5 and performance drops.

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Knowledge Check

1.A Meta campaign launches on Monday. By Wednesday, the account manager notes a high CPA and wants to make significant targeting and creative changes. A senior colleague advises waiting. Why?

2.A Google Ads campaign has spent £2,400 over 6 weeks. Keywords 1–3 have spent £1,800 with 4 conversions (CPA: £450). Keywords 4–8 have spent £600 with 12 conversions (CPA: £50, target CPA: £80). What optimisation action should be taken first?

3.A Meta ad set that was generating consistent 6× ROAS starts declining: week 5 ROAS drops to 4×, week 6 to 2.8×, week 7 to 1.9×. Ad frequency has risen from 1.8 to 5.6 over the same period. What is happening and what is the fix?

4.An e-commerce brand wants to scale a Google Ads campaign from £200/day to £800/day quickly. They double the budget to £400/day, and two days later double again to £800/day. For the next two weeks, CPA spikes from £18 to £47 before gradually recovering. What caused the CPA spike?

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