One of the major goals of advertisement is to drive sales for your business. This is especially in the case of paid advertisements where you want maximum conversions or page visits.
This is where marketers calculate Return on Ad Spend (ROAS) in order to measure the effectiveness of a marketing campaign. It is used to calculate the profits made by or attributable to a marketing campaign.
The formula for ROAS = Revenue from Advertisement / Cost of Advertisement
Now that we have seen the calculation, let’s look at 5 proven strategies to improve ROAS.
5 Ways to Improve Return on Facebook and Google Ad Spend
#1. Target the Right Audience
Whether it is Facebook or Google Ad, getting the right audience is the key. One mistake that you must be making is trying to reach as many people as possible without checking if they are really interested in your product.
So instead of reaching the maximum number of people, your target should be to reach the right audience.
How to Target the Right Audience on Facebook
# Use Facebook Insights to filter your audience on the basis of demographics i.e. age, location, gender, interests, and other factors.
# Use Facebook Custom Audience for more effective targeting. It will help you to create a group of targeted customers who are more related to your business such as past customers, people who have visited your website, people who have installed your app, etc.
# Target your campaigns for both mobile and desktop users.
How to Target the Right Audience on Google
# Focus on in-market audience i.e. the people who are already searching for a particular product.
# Focus on affinity audiences based on their search history, political opinions, interests, etc.
# Get your site targeting right in order to control ad placements on websites that you want to be seen on.
#2. Optimize Your Landing Page
Every person who clicks through your ad wants to see something worth on your landing page. A well-constructed landing page will enhance customer experience and increase conversions.
Once you have a good looking landing page, it is important to optimize it and check its speed. As per a study conducted by Neil Patel, 40% of people abandon a website if it takes more than 3 seconds to load.
Tips To Optimize Your Landing Page
# Use simple headlines that match the style and tone of your ad
Add proper visuals to make content easy to consume
# If you are adding CTA, make them short and compelling. Also, the visitors should know where to click
# Keep an eye on loading time
#3. Use Appropriate Keywords
In order to increase your ROAS exponentially, focus on the right keywords, and place them correctly. Whenever you search for something on Facebook or Google, the results that appear in the results are dependent on the keywords.
So if you want your ad to show up on the landing page, you need to bid for the right keywords. Consider the following tips –
# Focus on specific keywords rather than general ones to have a better ROAS.
# Using negative keywords can reasonably improve targeting and ROAS by showing ads to only those people who are ready to make a purchase. By this you can avoid the audience you don’t want.
# Look out for the search terms report to know exactly the keyword used by your potential customers.
#4. Gather Data
So far we have known that increasing your ROAS depends on targeting the right audience and sharing the customized message with them. This targeting is in turn dependent on your knowledge about users and their choices. So you need to gather data about your users to increase ROAS.
Focus on Following Data –
# Mobile device or desktop, what is the platform that is used by the majority of your customers?
# What kind of content appeals to them the most and what content gets you maximum engagement.
# Do your ads perform better on Facebook feeds or as a Facebook suggested video?
#5. Split Test the Ads
Split testing is a strategy where you can compare two elements of a marketing campaign to gain insights on which one will perform better. You can apply split testing on landing pages, Facebook posts, Facebook ads.
Using this strategy on your marketing campaign can increase your ROAS by 10 times! Yes, you heard it right.
Split Test on Facebook
Through this feature, you can submit various versions of your ad. This can be with variations in images, titles, videos, landing pages, and so on.
Facebook will tell you what combinations work best and what didn’t.
Split Test on Google
Like Facebook, Google has a split test feature where the focus is on the following points
# Second line
# Display URL
Split testing of your ads on Facebook and Google helps you to track the results of your campaign. By making the changes suggested or changing the things that are not working, you can see improvement in your ROAS.
ROAS is a powerful metric for any marketing campaign. By focussing on your ad spend and the revenue generated by those ads, you can find out the areas where your marketing campaign needs improvement.