How to achieve a 4x ROAS with your paid campaigns

Achieving a ROAS of 4x or higher is possible. Your product/service and your competition play important roles in influencing how high your ROAS can go, but if you follow the recommendations below, you can maximize your potential ROAS!

1. Look for ROAS spikes in your data

Look for patterns in your data that might be causing spikes. Do they occur during a specific time of day or in a specific location? Are they associated with a specific range of products? Dive into your data in search of the variables and combinations of factors that increase your ROAS. 

Once you’ve drawn conclusions, make a plan to maximize these spikes. For example, if you’ve discovered your audience spends more money during weekends or in certain locations, allocate extra budget to these segments.

2. Identify your products/services with higher AOV

In order to maximize ROAS, advertisers must understand which products generate higher AOV (Average Order Value) — especially if they have a catalog of products with highly differentiated prices.

In order to maximize ROAS, identify your high-revenue products and leverage their sales by putting them into their own campaigns. Dedicate extra time and budget to these campaigns, as they are key in boosting your ROAS.

3. Swap discounts for upsells 

Although discounts are a great way to boost conversions, they tend to hurt ROAS by reducing AOV. Once the discount ends, a drop in performance follows. 

Discounts hurt the stability of the account because the platform optimizes for a lower price point with a higher conversion rate that will then change again when the sale ends. Those who didn’t convert during the sales likely won'tconvert anytime soon, knowing that another sale might come up.

These factors result in after-sale hiccups which are known and expected for most advertisers but can be avoided. 

Instead of offering discounts, increase revenue by upselling. Consider product bundles similar to the example below from our client, Leon & George. Kits, or “+ 1 for free” products/services that have mid/high value for the client and low costs to the business, are a great option. 

4. Move your budget from one paid media platform to another — depending on performance

Brands don't adjust their budgets frequently enough. Most clients have monthly budgets per channel, but it is imperative to adjust your budget split on channels during periods in which you need to maximize ROAS.

Obviously, the opposite can occur. Updating your budgets too often can have a negative impact on your campaigns. Make sure you find the right balance to make these changes.

5. Produce creative that boosts your ROAS

The objective here is to find the key creative combinations to consistently lift your ROAS above a defined baseline. In order to unlock those high-performance creatives, test audiences, messaging, products, composition, etc. There are unlimited variables to experiment with in your creative testing.

Unlocking a high ROAS with creative is key to reducing costs. Be patient and, if possible, ensure your creative testing rounds are frequent — once/month, for example. 

Also, make sure you have a scientific creative testing process in place — building a structure that allows you to A/B test creatives and clearly define creative winners based on the data. This ensures that you produce better creatives each time.

6. Try a longer funnel

Most performance advertisers with short sales cycles focus on running immediate conversion campaigns. In some cases, especially those with longer sales cycles, this strategy doesn’t work! 

If that’s you, try focusing on other areas of the funnel as well and include TOF (Top of Funnel) campaigns. These campaigns tend to have lower costs and lower barriers of entry for users, which can ultimately have a great impact on reducing costs and increasing conversions in your retargeting campaigns. 

Examples of different campaign objectives are sign-up, complete registration, landing page views, or lead generation campaigns. 

7. Run seasonal campaigns

Adapt your ads to time of year and current hot topics within target markets. For example, if you sell plants online, you could run a Valentine’s Day campaign in February. Or, if you provide Mental Health treatment, try boosting your budget during Mental Health Awareness Month. 

Making use of time periods when there is higher purchase intent will increase your ROAS.

On its own, one seasonal initiative isn’t frequent enough to generate repeatable success, so it’s ultimately more important to create a “seasonal playbook” that has proven processes and tactics you can use for each season - making this a repeatable strategy.

8. Optimize your landing page to increase CvR

The key to boosting your ROAS doesn't just happen within the platform. If your current CvR is 2% or lower, your landing page needs improvements! 

Read more here on our do's and don’ts for creating high converting landing pages.

Goodbye

Follow this blueprint to reach and surpass your ROAS goals and continue pushing the bounds 🙂. If you’d like further advice, we offer personalized growth, creative and CvR optimisation services! Book an audit or let’s talk.

By author

Mariate Rodriguez

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