What is ROAS: A Deep Dive (Part 2)

ROAS, or Return On Ad Spend, measures how well your marketing campaigns are running. After understanding the basics in Part 1, let’s talk deep into optimizing performances!

Learn More:

What is ROAS and its Calculation

After measuring ROAS, use the following approaches to take your marketing campaigns to the next level:

1. Spend Less on Ads

  • Experiment with different bidding strategies for your advertising campaigns; keep trying and adapting!

  • If bidding for Google Search Ads, consider not aiming for the top spot in search results. Go for a lower position to save you money while still being visible on the first page.

  • For Meta Ads, leverage automatic placements to allow the system to optimise your ads for the best-performing placements, yielding the best results at the lowest costs.

2. Target the Right Audience

  • Maintain a mix of branded and non-branded keywords in your campaign: Non-branded keywords help you reach new customers and boost visibility, while branded keywords enhance competitiveness and drive conversions.

  • Craft appealing creatives: Optimise for mobile placements, use attention-grabbing visuals, write clear messaging with concise and understandable text, and a compelling Call-to-Action (CTA).

  • Target individuals similar to your target audience in terms of demographics, interests, finances, and lifestyle.
Choosing the right target audience is important when blasting your advertisements!

3. Improve Conversion Rates

  • Make sure your ads lead to relevant landing pages. The page users land on should match what they expect based on the ad.

  • Create personalised landing pages and optimise their load speed to engage users.

  • Use storytelling in your ads to connect with your audience personally.

4. Increase Customer Lifetime Value (LTV)

  • Retain your current customers, as it’s more cost-effective than getting new ones.

  • Use Retargeting ads to bring back visitors who didn’t convert.

  • Run email campaigns to keep subscribers informed and interested.

  • Think about loyalty programs that offer multiple benefits or rewards in return.

Leveraging ROAS

Benefit your business with the following usage:

  1. Precise gauge of Campaign Effectiveness and Revenue Generation
  2. Budget Planning & Optimisation to prioritise high ROAS campaigns
  3. Bid Strategy Improvement
  4. Goal Tracking
  5. Competitive Benchmarking against industry standards and competitors
  6. Ad Platform Evaluation for effective budget allocation
  7. Product and Pricing Decisions for different offerings to customers
  8. Customer Segmentation
  9. Long-Term Strategy

This article is originally published by Aspire:

Aspire is the all-in-one finance platform for modern businesses, helping over 15,000 companies save time and money with international payments, expense management, payable management, and receivable management solutions — accessible via a single, user-friendly account.