Looking for more profits from your Facebook ads? Want to know how to boost your ROAS or return on ad spend?
Before diving into the different ways of increasing Facebook ROAS, it is essential to define what Facebook ROAS is in the first place and why it is a crucial metric.
Return on ad spend is the measure of Facebook advertising success and whether the advertising is profitable or not. Like return on investment or ROI for the offline mode, ROAS measures the returns gained on expenditures made on advertisements online.
Online business owners can quickly increase their ROAS through on-and-off Facebook actions. Businesses need to focus on different Facebook actions to get the best output from their advertising and generate the highest returns on ad spend.
Some techniques that can help in increasing the ROAS from Facebook advertising are as follows:
Targeting Warm Audiences
The efficient use of resources means targeting warm audiences always. Warm audiences are the ones who have already interacted with your business or brand in some way or the other. This engagement might be through website visits, page engagement, or by adding a certain item to their cart.
Here, the key is that the audiences are well aware of your existence in the market and have shown a clear interest in your products and services. These audiences are entirely different from the cold audiences who do not have any idea of your business.
Of course, even the cold audiences can be targeted with affordable campaigns, but the success of these campaigns will entirely depend on the effectiveness of your guesswork and research.
Targeting warm audiences can be a bit intimidating, considering their sample sizes come restricted. This is something that places limitations on the scalability of the advertisements. The first step is identifying the warm audiences and then creating lookalikes to reach broader groups of prospective customers.
Drive in More Data
Most of the time, poor Facebook ROAD comes from over-segmentation! The algorithms for bidding on Facebook are quite good. But to achieve full potential, they need to come out of the learning mode.
Of course, Facebook likes data and largely depends on data for making bidding decisions, but with limited data, the user’s ability to optimize is wholly hampered. So, inconsistent performance because of low data volume can result in volatile cost-per-output despite an advertisement set driving conversions.
It is important to note that over-segmenting the audiences can restrict data making it very difficult for the ads to perform consistently. What needs to be done is testing the segmentation around different platforms and devices and removing the same.
This can help in improving the performance of a Facebook ad if its conversion volume is inconsistent or low. The majority of the time, it is not the over-segmentation but segmentation for demographics and devices that can result in low volume conversions through Facebook ads.
Using Facebook Pixel for Gaining Information
Even before making an ad through a Facebook video ad maker, it is necessary to get a clear insight into the target market or the market you are looking to reach. Facebook Pixel is one tool that you can use for carrying out this procedure.
It is basically a code that the users can implant onto their websites for identifying the users visiting their sites. The ones without coding knowledge need not worry as they have the option of copy-pasting the snippet into their website header.
The only thing that the online business marketers need to keep in mind is placing the Pixel on all their website pages. Failing to do so might make the collected data useless later on. You might be wondering why it is crucial to add the code to website pages.
Well, once this code is added to all the business website pages, Facebook automatically identifies and marks the users based on their actions. Then it becomes quite easy to come up with custom audiences of individuals showing interest by visiting the checkout and home page. But things are not this easy!
Businesses can target individuals who visited their checkout page but not their thank you or purchase confirmation page. This means that the website visitors were just a hair’s breadth away from making the purchase.
Simply by honing in on the demographics gained from data obtained through Facebook Pixel, it becomes easier for businesses to get representations of the visitors who are willing to buy their products and services.
Automating Advertisement Budgets Can Help with Efficient Scaling
Of course, you have used an ad maker for creating the best of Facebook advertisements, but what about evaluating the success of your ads? Checking the success of your ad sets and changing budgets manually can take a lot of time. This goes special for businesses with a lot of advertisements.
However, the best thing about Facebook is that businesses can easily automate their spending allocation towards the over-performing ads while curbing the under-performing ones.
The key here is not trying to scale ads more than 15% to 25% regularly. This is important because the increase in the budget does not correlate with an increase in traffic. Once the ad sets have been chosen, users need to set the condition for purchase conversion rates based on their requirements.
The hard work of resource distribution is best left to Facebook!
Running Remarketing Advertisements
Remarketing advertisements are highly effective when it comes to bringing in more revenues and higher ROAS. Facebook is a platform where businesses can run two different varieties of remarketing advertisements: dynamic ads and static ads.
These ad categories bring in good returns on ad spend because they show the viewers everything about a certain product or service. They are appealing and eye-catching simply because they feature products or items that have already caught the consumers’ attention.
Over to You
Congratulations! You now know a lot about how to increase the ROAD of your Facebook advertisements. To summarize, you need to improve upon audience targeting, run remarketing advertisements, and automate your advertising budget for increasing your return on ad spend on Facebook advertising.