Return on ad spend (ROAS) is a crucial metric for measuring the effectiveness of your advertising campaigns. It represents the revenue generated for every dollar spent on advertising. In other words, the higher your ROAS, the better your return on investment (ROI).
As a team, we specialise in helping our clients increase their ROAS through robust Traffic Management and a Funnel optimised to increase the Lifetime Value of every Client.
Here are ten ideas to help you improve your ROAS:
- Define your target audience: Knowing your target audience will help you create more targeted and effective ads. Use tools like Google Analytics to gather data on your audience’s demographics, interests, and behaviors. You can also use exit interviews or the ASK methodology to collect deeper insights of the audience you serve. We find these approaches hugely beneficial when followed correctly.
- Testing Offers: Ensure you’re working on offering the very best solution for your Target Audience. Often when clients come to us, its the offer that needs to be changed – sometimes a complete overhaul – other times just very small tweaks can make a huge difference to results!! And it’s not just the initial offer, it’s also the up and down sells that go with it that can transform ROAS and LTV!!
- Use high-quality ad creatives: Create visually appealing ads that stand out from the competition. Use high-quality images and copy that is tailored to your target audience. And always be split testing!
- Optimize your landing pages: Make sure your landing pages are optimized for conversions. Use clear and concise messaging and make it easy for visitors to take action. And always be split testing! Yes, you’ll hear me say this a lot 😊
- Focus on relevant keywords: Use relevant keywords that are closely related to your business and your target audience. This will help your ads show up for the right people at the right time. This largely helps the 7 day ROAS. In time you’ll need to expand either keywords, geography, interests, and other demographics out to scale, but the clearer you understand your audiences problems (from point 1 above), the more options you have here.
- Keep your ad copy concise: Use clear and concise ad copy that gets straight to the point. Avoid using industry jargon or complicated language. You can also use story based approaches too. Most importantly, even if your target market is highly intelligent, they still will only have a limited attention span for your ads to catch their attention – be specific.
- Experiment with ad formats: Try different ad formats to see what works best for your audience. This could include video ads, carousel ads, or dynamic ads.
- Test different ad placements: Experiment with different ad placements to see where your ads perform best. This could include the top of search results, social media feeds, or websites within your industry. When you’re clear on the audience you’re trying to help, you should know where to find them!
- Use retargeting: Retargeting allows you to show ads to people who have already interacted with your brand. This can be an effective way to increase conversions and improve your ROAS. You can do this for buyer and non buyer audiences. And lookalike audiences from your buyer list can also be great profit pots for you.
- Monitor your campaigns regularly: Keep a close eye on your campaigns to see what’s working and what’s not. Use analytics tools to track your ROAS and adjust your campaigns accordingly. Ensure you have end to end tracking, covering both ROAS and LTV. Without this step, you’re running blind, so stop until you can see properly.
By implementing any of these ten ideas, you can improve your ROAS and achieve better ROI from your advertising campaigns.
Just make sure you’re tracking everything clearly (step 10).
By the way, the most simplest way to do it is four fold:
- Have a kick ass Traffic Team, who are consistently optimsing your Traffic for 7 day ROAS results
- Have an amazing Offer and Funnel, that again, is being optimised, to help with the 7 day ROAS
- Ensure you have built a Tail of Emails, to build on your ROAS and grow your LTV
- Making sure you track everything, so you know what works, to do more of, and what isn’t, so you can turn that off.
And yes, those 4 steps sound simple enough, and they are, when you have the right people working on them – that’s what my team (#2 & #4) and my partners do (#1 & #3).
And if you want to brainstorm ideas to improve the ROAS for your business, get in touch here: Contact Us