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How can I increase the ROAS of my Facebook campaign?

Firstly, we need to understand what ROAS means, in simple terms it’s the amount of money you get back versus the amount you spend on advertising. ie. Revenue vs spend.

You also need to decide and understand what good looks like and what is profitable to you as a business. This will vary across lots of different business. Some businesses feel that just having a positive ROAS, ie. a ROAS over 1, is good. Some businesses need it to be over 6, to turn a profit. In an ideal world, the higher the ROAS the better, but you also need to set realistic targets and look at the product you’re selling.

    • Address the creative and the messaging – are you answering the customers key questions? Are you displaying trust signals? Does it clearly articulate what you want customers to do? Is it relevant to your target audience? Is the creative tired? How long has this creative been live? Are you running dynamic, personalised creative? Are you paying too much because we are being penalised for poor creative and experience? What does your quality, engagement and conversion rankings score? If you’re below average you’re likely paying higher CPMs.
    • Address the audience – Have you saturated this audience? Are you still reaching new people? What is your frequency on the adverts? Are you targeting the right audience? Look at other metrics – are people engaging and clicking through?
    • What’s the onsite experience like – Have you removed barriers to purchase? How long is the checkout process? Where are people dropping off? Why are they dropping off? Is the messaging from the advert reflective onsite, is the message consistent? Are you upselling or cross-selling onsite to increase the AOV (average order value)?
    • Are you fully tracking the activity? – This Is important, especially if you have a more considered or higher ticket item. Meta has shortened its attribution window in platform to 7 days. If someone converts outside this window, the platforms don’t track this. If they’re on an iOS14+ device and have opted out of tracking, you may not see this sale. Therefore, you’re not seeing the full picture – using alternate analytics and tracking tools can help paint a better picture.
    • Test, test and keep testing – Testing gives you data and that’s the best way to keep improving what you’ve already found. Don’t stop at the first hurdle, pivot, re-evaluate and test something else.

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