To improve ROAS (return on advertising investment)

To improve ROAS (return on advertising investment): -

When launching a new campaign, the most important metrics are

Essential metrics for every marketing or advertising campaign.

ROAS is the metric marketers need to determine the success of their marketing and advertising campaigns.

It is vital for new campaigns, as it allows to see how much revenue a campaign is generating versus costs in real time.

Marketers can use cost per conversion, but because that calculation focuses on a single conversion at a time, it only gives marketers part of the picture.

ROAS helps determine if a campaign is making the money it should.

ROAS stands for return on advertising investment.

It is the amount of income generated for every dollar spent on advertising or marketing.

Unlike ROI, ROAS focuses only on the return on revenue from a specific ad or marketing campaign.

ROAS is expressed as a ratio.

An ROAS calculation is similar to an ROI calculation, but it is very flexible and can be applied to one, some or even several campaigns.

ROAS, as specific to a calculation as costs per conversion, click-through rates, or any of the other laser-focused metrics that marketers regularly analyze.

It offers a holistic view of the success of a specific campaign.

Calculating ROAS may not be as complicated as it sounds.

To calculate ROAS, divide the revenue by the amount of money spent on a specific ad or marketing campaign.

Before inserting numbers into this equation, there is another calculation that must be done first:

The total cost of the campaign, which includes things like money paid to an agency, paying designers, bidding on keywords, or investing in a PPC campaign.

There are some other hidden costs that need to be considered as well.

All Vendor Costs - Includes the costs of all vendors, including freelance writers, graphic designers, or email marketers.

Salary: Include the cost of internal employees working on the campaign.

Affiliate Commissions - According to AdEsspresso, that includes network transaction fees and commissions

Overhead: Include the cost of equipment and applications used for the campaign.

There are free ROAS calculators that will use ROAS to help calculate budget, PPC spend, and various other useful statistics. 

From AdRoll, including the type of business in progress, the number and value of orders per month, and the number of site visitors.

A good ROAS can vary from company to company and even from campaign to campaign.

ROAS is not an independent statistic.

It is an indicator of how effective or ineffective the ad or marketing campaign is.

If ROAS is low, start researching the other stats to find out.

To improve the ROAS:

A low ROAS means that the advertising or marketing campaign is a complete failure and must start from scratch.

The campaign may only need a few adjustments.

Here are some ideas to start improving the ROAS.

Experiment with ad placement.

Run ad campaigns on media or ecommerce sites, experiment with banner ads instead of landing pages, skins, or pop-ups.

Strategic ad placement on social sites can also increase ROAS.

Newsfeed: Promoted posts and ads that appear directly in news channels tend to have higher visibility and convert at a better rate than other ads.

In-Stream Ads: Ads shown on videos can be placed before or during the video.

Pre-roll ads come before main content and are approximately 25% cheaper than mid-roll ads.

Mobile-only ads: Targeting mobile-only ads on Facebook and Instagram is also a good choice for visibility.

Facebook is the second most downloaded application, second only to TikTok.

Instagram has more than 1 billion monthly active users around the world.

Use audience targeting:

Narrowing down the target audience or using hyperlocal marketing techniques can help get more conversions for every dollar spent.

Marketers can use local campaigns on Google to highlight their products to potential customers in their area.

Meanwhile, B2B brands may want to spend more money on LinkedIn.

Refine the keywords:

It's tempting to search for trending or more general keywords with high search volumes.

Take advantage of tools, like Ubersuggest, to research statistics and dig into the keywords that make sense to bid.

Reduce the cost of developing the ads:

The first and most obvious step is to use ROAS to eliminate campaigns that are not generating enough revenue.

Refining the keywords and target audience can also save money by funneling cash to the keywords most likely to rank and the audience most likely to convert.

Consider adding negative keywords to the ads.

A negative keyword is a term to exclude.

The ad will not appear when users search for those terms.

Run PPC campaigns, put budget limits.

Many clicks are good only if having the budget to support them.

Use target ROAS on Google:

When setting up advertising campaigns, 

Google allows to choose based on a target ROAS.

Once a target ROAS is set, Google predicts a conversion rate based on current grant values.

Use that prediction to optimize bids based on budget.

Set a target ROAS for a single campaign or an entire portfolio.

Investigate non-ad issues:

A low ROAS does not always indicate a failed campaign.

Instead, it could mean a problem outside of the advertising strategy.

If ROAS is low, but conversion rates are high, the price of the product may be too low.

If the clicks are high, but the conversions are low, it means that the price of the product is too high.

If users are abandoning their shopping carts, the UX could make the checkout process confusing.

Calls to action (CTAs) on landing pages or users are not sure where to go to buy the product or service.

There are many reasons for a low ROAS.

ROAS is an essential metric for marketers and advertisers.

Helps indicate the success of one or more campaigns by measuring revenue versus cost.

Calculate ROAS and find help to identify problems and implement solutions, get in touch.