Why 40% of digital ads fail today and how can your brand fix it?

“Francisco Capelas points out the reasons for the failure of digital advertising effectiveness and shows real cases of how it is possible to increase the conversion rate.”

Every year, brands invest considerably in digital campaigns.

However, the Adlook study reminded us of a key challenge: many campaigns fail to achieve the expected results because they continue to be planned based on assumptions or “guesswork” rather than hard data.

How should the digital marketing agency you work with help you avoid this mistake?

Google Ads Advertising

One of the best ways to improve targeting involves creating custom intent audiences based on people’s searches and demonstrated interests. If a user is searching for “buy wool sweater,” that’s a clear signal of intent.

In GA4, you can create audiences based on very specific events, such as visitors who spent more than x minutes on your site, who visited product pages without converting, or who added products to their cart but didn't complete the purchase. Working with this data helps you create much more relevant campaigns.

Furthermore, it is recommended to combine segments in observation mode, to monitor the performance of different audiences and adjust investment according to the results.

Performance Max campaigns are a great example of how technology can support a well-defined strategy. When configured well, using first-party data, refined audience signals, and personalized lists, these campaigns can automatically adapt to maximize performance by showing ads in the most effective channels.

Using Customer Match also allows you to import customer databases, creating personalized campaigns and similar audiences (Lookalikes). This strategy expands the ability to reach highly qualified audiences. A customer database is one of the greatest assets of any brand. An experienced digital marketing agency knows how to turn this information into highly targeted campaigns.

Finally, dynamic remarketing is essential for impacting users with ads tailored to the products or services they viewed. Dynamic remarketing works like an attentive salesperson, reminding each customer of the products they viewed or left in their cart, encouraging them to return to the store and complete the purchase.

This technique significantly increases relevance and conversion rate by ensuring that ads are shown at the right time, to the right people, with the most relevant content.

Let’s analyze a real case…

Case:

Martech partner and digital marketing agency Webcomum, in the Pharmaceutical Industry sector, increased sales by 65%

Challenges:

Below-average conversion (0.7% vs. 3% for the industry) and strong competition from major players

Implemented Strategy:

Google Ads with first-party data that allows for more precise and personalized targeting. Customer Match + dynamic remarketing:

↗ Sales: +65%

↘ CPA: 90% Reduction

✅ Conversion rate from 1% to 4.5%

Meta Advertising

In Meta, the focus should be on creating custom audiences from real behaviors, such as website visits, interactions, or cart abandonment.

Advantage+ campaigns are also a good example of the potential of automation, allowing the platform to find the best audiences and adjust campaigns based on results.

Let's look at another Real Case:

Professional Tools Partner - Increased Meta Ads sales by 167%

Business Context

Online Store: Specialized in tools for professionals (electricians, carpenters, contractors).

Challenge: Increase sales of premium products (e.g. professional drills, industrial electric saws) in Portugal.

Implemented Strategy:

  • Hyper-Segmented Target Audience, Ideal Client Lookalike, Specific Interests, Creatives that Speak to Professionals and Optimized Conversion Flow

Results in 4 Months

Sales Increase: +167% in premium products.

CPA (Cost per Acquisition) reduction: From R$45 to R$22.

Average Ticket: Increased from R$85 (hobbyists) to R$217 (professionals).

In the end, it’s about communicating assertively. Because, more than numbers, we are talking about people and each person expects to receive messages that make sense to them, at the right time and through the right channel. This is why segmentation is key to any successful digital marketing campaign. By truly knowing our audience and adapting our communication to their preferences, needs and behaviors, we are able to increase the impact of our message and, above all, build lasting relationships with our consumers. Good segmentation turns data into relevant experiences.