wiki/clients/current/adava-care/2026-02-04-google-ads-performance-analysis.md · 566 words · 2026-04-05

Google Ads Performance Analysis — Adavacare (2026-02-04)

Reviewed during [1]. Analysis covers account performance trends since November 2025, root causes of CPC increase, and strategic direction.

Overview

Adavacare's Google Ads account is experiencing a significant squeeze: impressions and clicks have collapsed while cost-per-click has more than doubled. The silver lining is that traffic quality has improved markedly — conversion rates have climbed from ~2% to 5–7% — but total conversions remain flat and the cost-per-conversion has not improved proportionally.

Key Metrics (January 2026 vs. Prior Period)

Metric Prior (early 2025) January 2026 Trend
Impressions ~24,000 ~6,000 ▼ 75%
Clicks ~1,100 ~400 ▼ ~64%
CPC ~$2.63 ~$6.00 ▲ 128%
Conversion Rate ~2% 5–7% ▲ Strong
Conversions ~23–24/mo ~23–24/mo → Flat
Cost per Conversion Flat Flat

Root Cause Analysis

1. Rising Industry Competition

The most significant driver of CPC increase is market-wide. Locale IQ's Healthcare Search Advertising Benchmarks Report documents a 32% YoY CPC increase for Assisted Living, Elder, and Home Care Services. Adavacare's CPC increase (from ~$2.63 to ~$6.00) tracks above that benchmark, suggesting the Milwaukee market may be especially competitive.

Auction Insights confirmed a crowded landscape:
- Adavacare impression share: 21%
- Top-of-page rate: 66%
- Absolute top-of-page rate: 23%
- Key competitors in auction: A Place for Mom (aggregator), Caring.com, SeniorLivingNearMe.com (aggregators), plus at least one direct local competitor worth investigating further

Aggregators are difficult to outbid directly; focus should remain on direct competitors.

2. Budget Tightening / Campaign Pauses

Two poor-performing campaigns (by location) were paused prior to this review. This accounts for the sharp drop in impressions seen in November. The pauses were intentional and correct — they eliminated low-quality traffic — but they reduced total volume.

The November impression cliff (from ~14K to ~6K) is largely explained by these pauses, not organic account degradation.

Strategic Assessment

Pausing the underperforming campaigns was the right call. The surviving campaigns are running at 5–7% conversion rates versus the ~2% baseline, meaning the remaining traffic is substantially higher quality.

The core strategic question is now: can we scale the high-converting campaigns profitably?

Given that:
- Adavacare has ~10 facilities with ~3 open beds each (~30 beds to fill)
- Average resident revenue is ~$5,000/month with a ~22-month average stay
- Each filled bed is worth ~$110,000 in lifetime revenue

There is significant headroom to increase spend on the well-performing campaigns before hitting diminishing returns on cost-per-conversion.

Action Items

Open Questions

Sources

  1. Gilbert — 2026 02 04
  2. Index|Adavacare Client Overview
  3. 2026 02 04 Google Ads Performance Drop|Reynolds Transfer Google Ads Performance Drop (2026 02 04)
  4. Gilbert — Inventory & Google Ads Review (2026 02 04)