Wanting to increase your paid social return on ad spend (ROAS)? Well that was a silly question because of course you are, who wouldn’t want to increase it?! First, let’s go through the basics:

 

What is ROAS?

As we mentioned above, ROAS stands for ‘Return on Ad Spend’ which is a metric used to determine how many dollars (in revenue) they receive back for each dollar that is spent on advertising. In simple terms, it helps marketers determine how effective their advertising campaigns are and whether or not they are increasing the goals of the campaign (whether that be brand awareness, increase in conversions, etc.)

Whilst most online marketing platforms such as Facebook Ads Manager or Google Analytics will show this metric, it can easily be calculated manually through the following formula:

(Revenue – Cost) / Cost

 

What makes ROAS a useful metric?

ROAS is beneficial as it helps to determine how particular ad’s are contributing to the company’s bottom line, as essentially without it, you wouldn’t know whether it is draining the company’s advertising budget or whether it is contributing to revenue. It is also insightful to look at when wanting to make changes or create new creatives for your advertising campaigns as you will be able to tell what has been successful and what hasn’t worked out so well. 

 

Ways to Increase your paid social ROAS 

Three ways to increase your paid social return on ad spend include: 

  • Increase revenue while maintaining costs 
  • Decrease ad cost while maintaining revenue
  • Increase revenue while lowering cost

 

Possible strategies to increase ROAS 

Negative Keywords

Negative keywords are keywords that you don’t want your ad to show up for. Using negative keywords assists in improving the relevancy of your ad traffic, which as a result will increase your ROAS.

 

Optimise landing pages 

Optimise your landing pages for conversion so that when potential consumers click through, the same key message or sales promotion is easily visible for the consumer which will minimise the bounce rate and increase the likelihood of them converting into a sale, which again will help increase your ROAS.

 

Don’t just rely on broad match

Although broad match in Google campaigns allows you to see which keywords are generating the highest return, it can cost you a significant amount of money without seeing any returns. A good tactic to employ is to use broad match to determine which keywords convert the highest and then from there, change your tactics and develop an exact keyword match strategy.

 

Ad quality score 

How the Google quality score works is that the higher the score, the lower your cost per click and the higher your ad ranking will be. Therefore it is safe that the Google quality score corresponds with a lower cost per conversion. 

 

Google remarketing can help you boost that bottom line, amp up your revenue and conversions. Take advantage of the information, both on Google Analytics and the segmentation available on Google Ads to hone in on everyone and anyone who’s visited your site. If you want to leave the hard work to the experts who can guarantee success, the team at Digital Squad can help you out. Digital Squad is a leading digital marketing agency and Google remarketing agency and as a Google Partner, they can help you set up your campaign and see the sales going up. Contact them to find out more.