If you are having a hard time optimizing your Facebook Ads and getting a good Return on Ad Spent (ROAS), then this guide is for you.
Are you currently managing or owning a Facebook page? If so, you’d know that Facebook makes numerous attempts to have you spend money to promote your posts and create advertisements out of them. While most professionals would advise against doing that, some of you have given in to the temptation and therefore lost money doing so.
But how does one create effective Facebook ads that have a decent, if not great, Return on Ad Spent (ROAS)?
Let us walk you through this guide and help you maximize your Facebook Ads ROAS so that you can stop wasting money and actually increase your revenues.
The world is seeing a new face of advertisement procedures with an increment in the usage of the internet. The introduction of the internet in our work made some huge rearrangements, especially in the advertising sector.
Whether you work at a digital marketing agency or doing your own ads, you’d agree that social media advertisements are one of the biggest forms of publicity and are working wonders for companies who are struggling to catch the attention of their targeted audience.
One big disadvantage with the old methods of advertisement was that no tracking was possible or no progress or success of the advertising campaign was possible to be known. With online modes of advertisements, one can easily overcome this issue because the entire process or how much effect is being imparted via the advertising process can be tracked. The same can be done even with social media advertisements as well.
Facebook is an amazing platform from where a company can enhance their online presence by utilizing it effectively. Posting ads, writing about their services, and posting regularly on the platform can, in general, help them to grow into a bigger franchise. But analyzing who saw your ads and how much revenue is being generated is also important.
Investing in Facebook ads is not anything which is very common amongst people who take up online advertisement procedures for their companies. Hence if you are investing in them, consider yourself to be ahead of your game.
When you tell people about optimizing your ads, the majority of them will consider it to be Google ads. But, on the contrary, Facebook ads can also be optimized. This is done in order to optimize your campaign and bring you a better Return on Ad Spend (ROAS).
What is ROAS?
Return on Ad Spend or ROAS is a metric commonly used in the marketing process where a person can evaluate the performance of their advertisements by optimizing them. And can also check if they are working well and what improvements are needed in order to make it function well.
How can you calculate your Return on Ad Spend or ROAS for Facebook?
ROAS is basically nothing but a process that tells you how much you are getting per dollar you are investing in your ads. The simple formula that enables you to calculate your Return on Ad Spend or ROAS is:
ROAS = Ad Revenue / Ad Spend
ROAS vs. Cost Per Conversion
Now that you are aware of how you can calculate Return on Ad Spend or ROAS, let’s focus on other metric systems like cost per conversion. Cost per conversion is an effective method that can be better than the cost per click method, but it does not give you the fuller picture.
Now let’s see how you can increase your Facebook Return on Ad Spend or ROAS.
ROAS Optimization Tips
1 – Know Your Target Precisely
While conducting a marketing campaign, one of the major things which any company needs to focus on is knowing their targeted audience very well.
Unless companies are aware of their targeted clients, they will never know their finishing line. Your finishing line is basically what you need out of this whole campaign; hence if your targeted audience is not known, you will not know where to head-on.
Another important factor behind knowing the targeted audience is sorting your target so that you can have a vivid idea of how you can appeal to them. Knowing your target gives you the power to imagine ways that will help them to grow interested in your company. And this thereby will increase your Return on Ad Spend or ROAS.
Here are five basic ways on how you can inculcate with the fact of knowing your targeted audience in order to enhance your Return on Ad Spend or ROAS:
Basic Information on Demography
Segregate your audiences on the basis of their age, gender, location, and this is the most basic form of segregation for targeting your audience. But if you plan to get a more specific outcome, then you need more than this for sure.
Knowing the Interests
This is a better and more precise way to target your audience. Interests like cooking, makeup, fitness, football, etc. can be taken into account in order to identify the clients.
Brand selection Targets
This involves targeting audiences who follow a certain brand’s page or are interested in purchasing their products. This is again an easier way of understanding the targeted audience’s interests and thereby segregating them.
These are basically nothing but targeting people based on their habits like their reading habits or their searching habits. This is an amazing way to filter your targeted audience searches.
This is quite a vague process of identifying the targeted audience who are looking like the ones who are already under the category of your targeted audience. You can identify them by comparing their activities, search purchases, etc. with your targeted audience’s activities. This is more of a vague procedure but can be helpful to enhance your Return on Ad Spend or ROAS.
2 – Analyze Your Ads and Know What Is Working
This is a process where you breakdown your ads into three or more parts in order to see how they are performing on different platforms. And how are people or rather your targeted audience responding to it.
The three parts where you can divide this process of enhancing your Return on Ad Spend or ROAS comprises of the following:
Checking The Platform
This process enables you to go through the platform thoroughly where you have posted your ads.
For example, Facebook owns Instagram; hence you can use both the platform to publicize about your company.
You can start creating ads for Instagram as well if you are already doing it for Facebook. To do this, you have to log in to Ads Manager, next choose the breakdown tab above the reporting table, and next choose the platform option.
This feature will give you a break down image of the performances of ads on Facebook as well as Instagram. The preferences over this feature will vary.
A brand that focuses on visual aspects, which invests the better amount of money in the visual work they will or can choose Instagram. On the other hand, brands who are into B2B advertising can go for Facebook advertising in order to get a more dignified result.
But utilizing both the platforms will widen your scope of enhancing the Return on Ad Spend or ROAS.
This is where you see where your ads are being displayed on to Facebook and check if they are getting the maximum amount of recognition in that placement as well.
- Facebook Feed
- Instagram Feed
- Facebook Marketplace
- Facebook Suggested Video
- Facebook Right Column
- Facebook Stories
- Instagram Stories
- Messenger Stories
- Facebook In-stream Videos
- Messenger Inbox
- Messenger Sponsored Messages
- Facebook Instant Articles
More Apps and Sites
- Audience Network Native, Banner, and Interstitial
- Audience Network Rewarded Videos
- Audience Network In-stream Videos
On selecting the Automatic Selecting option, you give Facebook the authority of displaying your ads on the above-mentioned list of placements. And evaluate where it is working the best and accordingly produce a report showing the outcome.
Here you need to focus on what your targeted audience is more likely to use? A phone or a computer. For example, a company was creating ads only targeted audiences who are using a smartphone, but on the contrary, users of computers also searched for them and generated revenue as well. Hence when another platform or device is bringing revenue, why not explore it more? Hence you need to check if a particular device that is left behind is working for your company or not.
Here is a list of activities you need to check while optimizing your ads:
- Find the Performance Indicators
- Decide on campaign objectives
- Make sure of tracking tags are working
- Measure and set benchmarks
- Develop A Marketing Strategy
- Review current data
- Create a customer avatar
- Research audience reach and volume
- Layout tests
- Setup audiences lists
- Build out campaigns on selected channels
- Mockup ad copy and creative
- Evaluate the results of the campaign
3 – Make Use of Facebook’s Creative Dynamic Feature
With the Creative Dynamic feature of Facebook, you can see what assets of your company works wonders in impressing your targeted audience and enhance your online presence.
In order to do that, upload different advertising components like images, videos, pamphlets, banners, etc. by keeping the Dynamic Creative toggle on setting up your advertising campaign effectively. That is all you need to do manually, and the rest will be done by Facebook.
The algorithms will mix and match and create a concoction of the best things in order to bring the maximum attention according to the campaign requirements to the targeted audiences.
4 – Focus on Your Visual Aspects
It is very common for what people see interesting, and they immediately develop a knack to know more about it. Hence the same thing follows up with a company’s visual aspects of the website as well. The more the fascinating graphics, the better the advertising campaign.
It is true that a company with colorful, relevant, and unique graphics, videos, and images or banner will always be successful in capturing the attention of their targeted audience better than any company that does not focus on their visual and graphic aspects that much.
5 – Do Not Stick to Only One Graphic or One Mode of Visual Representation
By this point, what is meant is that you do not invest all your money into creating only one sort of visual representation. Because in banners or images rather than that, try and post multiple sorts of visuals like images, videos, pamphlets, and a lot more.
A company that shows the variation in its advertisement campaign process will always have a better Return on Ad Spend or ROAS. If all you post on your Facebook page are only images, it will bore the targeted audience after a while. Hence try to mix and match, post videos sometimes, or banners with brief information about your company and work.
The same idea applies to videos as well. Nobody got abundant time to watch bog videos and understand what a company is trying to say. Hence posting videos once in a while is fine, but that should not be the prime focus. Instead, a variety should be portrayed throughout the page in order to keep the targeted audience hooked onto it.
Another misconception regarding the video making and posting is that the whole process is very time consuming and money consuming as well. But this is not at all true. If you cut on your finds for creating images and invest in small videos, you will undoubtedly experience a better outcome for enhancing your Return on Ad Spend or ROAS.
6 – Maintain a Call to Action Mode
This is an important part of making a better impression on your targeted audience. Call to action is a tactic maintained while a piece is written, which will urge the targeted audience to make a purchase. It will also keep them hooked onto the company page to know more.
Call to action is an important process to bring back your targeted audience for the second time onto your company page. And thereby increase the Return on Ad Spend or ROAS.
While maintaining a call to action tone, make sure not to use the bigger words in the beginning only. The ending is supposed to possess heavy words like Contact us, Hurry up, etc. in order to assert the impact of coming back to review the website over again.
This is an effective way to enhance your Return on Ad Spend or ROAS.
7 – Start Low and Then Build Big
When you plan to invest a certain amount of money into Facebook advertisements, Facebook will always ask you to bud the maximum amount of money for the ad campaign. But on the contrary, you can actually bid cents instead of investing dollars into it.
And it is always a better choice to invest a smaller amount of money initially. And later, you go on bidding on a larger amount when you see your ad campaign is doing well.
Conducting proper ad campaigns for smaller companies is really important. And to enhance the Return on Ad Spend or ROAS for them, it is always better to invest little amount before they go into bidding a higher amount.
This is advised because once you bid a lower amount, you have to let the algorithm catch up and touch a certain point, bring you good Return on Ad Spend or ROAS. And then increase the bidding amount accordingly.
8 – Focus on the Likes and Run Low Bid Campaigns Around That
Focusing on the number of likes is another effective way of how you can increase the Return on Ad Spend or ROAS for your Facebook ads.
This is recommended because the number of likes is directly proportional to the amount of appreciation a company receives from its targeted audience panel. The majority of the companies do not pay much attention to their like content, which is not at all-wise.
Likes should be one of the priorities of any company that wants to enhance their Return on Ad Spend or ROAS. Be that a potential customer, an investor, or anybody of significant value to the company always checks the company’s social media page.
Hence keeping the company social media page clean and engaging is a very important activity.
Also, another important thing is to focus on the number of followers your company’s page possesses.
It is an important part because it is again directly proportional to the number of people who are keeping up with the company’s activity updates. Working towards increasing the number of followers is also an effective way to enhance your Return on Ad Spend or ROAS.
9 – Avoid Making Many Changes Too Often
Use tools such as HubSpot to maintain a specific schedule for uploading new and engaging content on your Facebook page because you need to give time to your targeted audience to keep up with what you are posting.
Avoid posting way too much content on a regular basis without following a pattern because it will make your algorithm drop off by getting confused and thus crashing the whole progress. Maintain a specific pattern when you plan to post multiple contents.
This way, your targeted audience can keep up with your updates, and your Return on Ad Spend or ROAS will also rise up. This will help in bringing you the maximum amount of revenue as well.
Making way too many changes and crowding your feed is also not an ideal thing to do. The feed is supposed to be clean and relevant so that your targeted audiences do not get confused with your content, and ultimately get bored.
This will cause a humongous drop-down in your Return on Ad Spend or ROAS, and ultimately, you might lose potential customers as well. Hence it is the utmost necessity to maintain a particular patter, and another important thing is to check the results of your campaign weekly.
If you see a drop in your campaign, try and pause the campaign first, then make the changes. If you see no drop-offs, then one thing you can do in terms of enhancing your Return on Ad Spend or ROAS is that you can duplicate the original ad and ultimately pause the original ad.
10 – Use Facebook for Remarketing
Those days are gone when Google was the only option in remarketing.
The aspects utilized by Google in terms of remarketing stand nothing in front of Facebook, and one should totally utilize Facebook to enhance their Return on Ad Spend or ROAS. Facebook has got the easiest remarketing facilities.
Here in the Audience selection part, just click on the Pixel option. What pixel option will do is it will connect your targeted audience who has already visited your website.
Also, if you think your audience panel is too small and you need to extend it, then you can choose the Audience look-alike option.
This will help you to reach people who resemble your targeted audience, converting them into customers, and increase your Return on Ad Spend or ROAS effectively.
11 – Don’t Depend on the Facebook Advertising Expert by Facebook
One of the new features Facebook has added in it is their advertising expert army.
Often you will see a pop up from Facebook Advertising Expert advising you on making changes in your schedule.
It is always advised to discuss with them in terms of what changes they urge you to make. But you should never forget that this whole thing is made by Facebook so that the people utilizing them for their advertising purposes increase their investment in the whole campaign.
This whole feature is obviously created so that Facebook gets the maximum benefit. Hence do not expect to get the maximum amount of good advice from the Facebook Advertising Expert. In order to keep up with the Return on Ad, Spend or ROAS stop fully relying on them and instead look into hiring a third-party local Digital Marketing agency to help you with your Facebook Ads.
12 – Do Not Make Your Advertisement Look Exactly Like an Advertisement
It might sound very absurd, but this is true that if an ad looks like ad people get repelled from it. Because they will understand it as a way, the company is trying to fulfill their requirements by showing the clients only the goof part.
If your ads are not fresh and, moreover, simple people, your targeted clients will never feel the urge to invest in you. Ads are not supposed to be manipulative and pushy, where people will ultimately get annoyed by their presence.
If you tell a person all of sudden about the good deeds you have been doing for five minutes straight at one point, the person will feel it unnecessary to know. Because nobody likes to hear about the other person, brag about their qualities.
The face factor works for ads. Hence if a company wishes to enhance its Return on Ad Spend or ROAS, the first thing they need to do is stop making manipulative ads. Also, ads are not supposed to exaggerate about the services or products throughout the ad.
Instead, make them relatable and moreover convincing not manipulative.
13 – Do Not Get Lost in Targeting
This might sound like a contrary to what has been advised earlier.
But this is true that a company should never indulge more in demographic searches unless the product itself is very secluded or niche related.
If your product is meant for people belonging to a different group, then targeting might be a difficult thing. Hence there is no requirement in investing a huge amount of money in it because fruitful results are not something inevitable to come out.
14 – Make Sure You Take Your Targeted Audience’s Feedback
Interviewing your audience is an important part of conducting a well-maintained advertisement campaign. Interviewing your clients and asking them the basic number of questions will provide you clarity on how your campaign is functioning so far.
You can conduct an online process and send forms to fill up to your targeted clients with questions.
Here is are some of the basic things you need to ask your clients:
- Where do you work?
- What is your job title?
- Before you decided to choose us, what was your sole biggest issue that you were looking to get fixed?
- Did you think there was something that we served that the other training options couldn’t or wouldn’t serve?
- What was your biggest issue when deciding on us
- How did you give up that hesitation?
- Are you single, or are you in a relationship? Do you have kids? How old?
- What neighborhood do you live in?
- Which social media platforms are you most active on?
- What are your hobbies and interests outside of work?
- What websites or blogs did you go to when you were researching options?
- You mentioned your biggest problem was ____ If you were talking to a friend, how would you describe what we did for you?
- How did it make you feel to solve this problem?
Some General Pieces of Advice
1 – Maintain a Proper Budget While Working
Your budget for the advertisement should be realistic, considering what you need to do for your company.
Do not follow the instructions of other people in terms of investing in ads because what might have worked for someone else might not be the right thing for you.
Make sure no matter what you invest in, that should be effective enough, not expensive. Anything that is expensive is not going to be good.
2 – If a Tactic Is Not Working, Omit It From Your Process
Focusing on something for a long period of time and waiting for ages to bring you the desired about of results in the advertisement is foolish.
If something is not working, leave it behind and start looking for better and new tactics.
One thing is very important in terms of ads, which is time. You cannot waste time waiting for something that is not working.
3 – Use the Right Kind of Content for Your Ads
No matter how much you invest in enhancing your Return on Ad Spend or ROAS, if your content is not of good quality, nothing will help you increase your Return on Ad Spend or ROAS.
Over Facebook, people look for unique content, and if your company does not stand up to that mark, it is inevitable you will not see fruitful results soon.
Hence focusing on your content is really important. Image selection, video posting, font selection, banner size, and a lot of other small things matter a lot in the process.
Your content should be relevant and not manipulative enough to bore people. Image selection is an important issue; make sure you follow up with your graphic specialist and analyze their working process instead of leaving it to them.
One great idea is to take advantage of user-generated content for your ads.
4 – Prioritize Your Product First and Then Your Brand
It is mentioned earlier also that the ads you post should not be manipulative and something which talks only about the brand. A company bragging about the achievements of the brand will always sound manipulative and not convincing enough.
Hence when an ad campaign is initiated, products should be the company’s first concern. Selling it and making targeted audiences choose it over other company’s products should be their prime focus.
Also, not making people aware of the presence of the brand. Brand visibility is only increased when the products achieve the maximum amount of appreciation.
Talking about the benefits of the product and relating it with the lives and requirements of the targeted audience is what companies should focus on in order to convince people to choose them.
Considering the uprising amount of competition in every industry, a company cannot afford to make mistakes by bragging about themselves and ultimately bore their targeted audience.
To keep up with the competition and to reach the epitome of success effortlessly, one should never prioritize the brand first because the product is what that requires maximum attention.
These above tactics are the best you can follow up with in order to maximize your Return on Ad Spend or ROAS. The competition in every industry is touching the epitome, and every day a new company is popping up, offering something exquisite.
To keep up with your competitors and conduct a well-maintained business, you definitely require investing in high-quality advertisement campaigns.
But getting fruitful results from it is again a necessity considering when you invest so much on money into it.
Acquiring maximum Return on Ad Spend or ROAS should be one of your top priorities when you plan to invest a good fortune in the advertisement, and for that, these above-mentioned pieces of advice are required. Increasing your Return on Ad Spend or ROAS is not an overnight miracle.
You have to keep up with your work and maintain your patience as well, while the tactics increase your Return on Ad Spend or ROAS.