How To Get The Best Return On Ad Spend ( ROAS)

Increase your ROAS

Many businesses are spending tons of money on digital ads and many have seen that the ROI on these ads is nowhere near what they expected it to be. We want to help you optimize your Facebook Ads and Google Ads so that you see the return that you're looking for. w

Before we give you 4 major tips on how to optimize your digital ads, let's define and calculate ROAS, which is "Return On Ad Spend".

math equation profits divide cost

Let's say for example the latest ad you posted on Facebook returned $5,000 but this ad cost you $2,500 to create and operate. Meaning that your ROAS was 2, which means for every dollar you spent, you were given $2 in return. This is important to note because, if your ad spend is too high then running that ad might not have been worth the ROI.

What ROAS should you look for?

You may be wondering now, what is a good ROAS. It really depends on your business, revenue, margins, business goals and expenses. On average most businesses that are looking to grow should aim for a 4 ROAS. Understanding what ROAS you want as an owner is very important as it can be the difference between doubling or tripling your return.

Now, what you have been waiting for...

4 Tips to Optimize your Digital Ads

1. Improve your Targeting & Retargeting

A Hand with a marker grouping a set of people together to show targeting

If you're creating Facebook Ads or Google Ads, targeting these ads to the correct audience is key. Imagine Bob's Burgers served the best beef burgers in town, Bob decides to run a Facebook ad. He ends up barley selling 25% of his stock and the ad ends up costing him more than he made. Why? Well if Bob understood his audience he would know 90% of the community he targeted are vegan.

Don't be Bob! Understand who your audience is and dive deep into the demographic of the customers you should be targeting.

Once you understand your target market it's time to refine your ads. Retargeting will give you a much higher ROI, due to the fact you are interacting with the correct consumers.

2. Use the Correct Keywords

magnify glass Looking for key words

Keywords are another important aspect of increasing your ad spend. Many business owners have trouble finding the correct keywords. Keywords are not something that will stay the same month after month. These need to be adjusted for what your target audience is searching for. Checking Google trends is a great way to understand what people are searching for on the web.

3. Optimize your Landing Page

Picture of landing page

How many times have you been to a landing page and have left without purchasing a product, signing up or interacting with the page? A landing page has only 10 seconds to keep that customer browsing the page if it's not optimized, it won't catch the attention of the consumer.

To have a high-converting landing page make sure you check off these 3 items. One, make sure it is visually pleasing and organized, having a messy and confusing page will cause consumers to turn away. Two, the CTA should be clear and compelling, guiding the customer on a journey. Three, keep it simple, showcase what you are selling and make sure your ad matches your header.

4. A/B Test your Ads

A/B test showing the better results

Everyone makes mistakes, if Michael Jordan only took the shots he knew he would make, then he would never be considered as one of the greats. The same works for ads, it is important to test two or more different versions of an ad (A/B). With small differences, you can see what customers are engaging with, hence including these changes in future ads to suit the needs of the consumer.

Combining all these tips will help you get the largest return on ad spend. Being able to properly manage your Facebook Ads and your Google Ads will help boost revenues, understand your customers better and increase your ROAS.

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