What factors contributed to the sudden 50% decrease in Perch's PPC campaign performance for Amazon listings last week?

Introduction

The sudden 50% decrease in Perch's PPC campaign performance for Amazon listings last week is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term and long-term implications for our product strategy.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into our product, metrics, and potential internal causes. We'll generate data-driven hypotheses, conduct root cause analysis, and develop a comprehensive plan to resolve the issue and prevent future occurrences.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be related to recent changes. Have there been any updates to our PPC campaign structure or bidding algorithms in the past two weeks?

Why it matters: Recent changes often correlate with performance shifts. Expected answer: Yes, we implemented a new bidding algorithm. Impact on approach: If yes, we'd focus on the algorithm; if no, we'd look at other factors.

• Considering the magnitude of the decrease, I'm wondering about our competitors. Have we noticed any significant changes in competitor behavior or pricing on Amazon recently?

Why it matters: Competitor actions can dramatically impact PPC performance. Expected answer: No major changes observed. Impact on approach: If yes, we'd analyze competitive landscape; if no, we'd focus more on internal factors.

• Given the specificity to Amazon listings, I'm curious about platform changes. Has Amazon made any updates to their PPC system or policies that might affect our campaigns?

Why it matters: Platform changes can have widespread effects on campaign performance. Expected answer: Amazon introduced a new ad format last month. Impact on approach: If yes, we'd investigate compatibility with the new format; if no, we'd look at our campaign settings.

• Considering potential data issues, I'm wondering about our tracking. Have we confirmed that our performance tracking systems are functioning correctly and consistently?

Why it matters: Ensures we're working with accurate data. Expected answer: Yes, tracking systems have been verified. Impact on approach: If no, we'd prioritize fixing tracking before further analysis; if yes, we can trust our data.