If we ask ourselves what is the most important metric to measure success in facebook adsthe most common answer is probably return on expenses or ROAS. This figure is equivalent to the ROI, since it tells us how much profit we manage to generate for each euro invested in advertising.
Simply put, the higher your ROAS, the more profitable your Facebook ads will be. So without further ado, let’s see what are the keys to optimizing your Facebook Ads campaigns and how to get the most out of your advertising budget.
10 tips to improve your ROAS on Facebook ads
1) Choose the right lens
Facebook uses the objective you select when creating your campaign to decide who to advertise to. For example, if you choose a conversion goal, Facebook will show your ads to people who are more likely to buy your products than if you choose a traffic goal. This means your ad will end up being more effective if you choose the right target, even if the traffic target gets more clicks at a lower cost per click.
To choose the right objective, keep in mind that Facebook divides advertising objectives into three main categories, which correspond to the main stages of the conversion funnel: awareness, consideration and conversions.
2) Do not segment more than necessary
This advice may seem counter-intuitive, because we know that targeting your ads to the right audience increases your chances of getting results. But if your audience is too small, you risk Facebook’s algorithms spending too much time in learning mode and cannot optimize your campaigns due to lack of data.
If you think your audience is too small, try removing filters that aren’t essential to reaching your target, such as device targeting.
3) Test your designs and formats
The A/B testing It’s a great tool for comparing two versions of an ad and determining which performs better.
There are many things suitable for A/B testing, but if you want to improve your ROAS on Facebook, we recommend starting with these two:
- Creative themes, for example, user-generated content, product photos or testimonials.
- Formats, such as images, videos, carousels, or collections.
4) Focus on the most effective formats
If you’ve followed the tips above, you’ve probably identified the most effective ad formats for your account. The time has come focus your budget on what works and see how your ROAS rises like foam.
Of course, it’s a good idea to keep experimenting with other ad types from time to time, but if you’ve found a format that works well, try to stick with it…at least until you had to apply the next advice.
5) Pay attention to the frequency
Like we said, when you find something that works, don’t change it until the time is right. And how can you know when that time has come? keeping the Facebook Ads Frequency Indicator.
If an ad’s frequency metric is above 3 or if it’s not performing well after running for a while, it’s time to refresh it. Otherwise, your audience may be saturated and your ROAS will drop.
6) Test landing pages
Landing pages are another fundamental element to do A/B testing with. Getting the user to click on your ad is only the first step: landing page experience This is essential for successful conversion.
The most suitable type of landing page is linked to the objective of your ad and the stage of the conversion funnel in which the Internet user is:
- In recognition ads, you can try to direct users to a collection of products or even to your website’s homepage.
- For consideration listings, individual product or collection pages can work well.
- For conversion ads, it’s more effective to send them directly to the advertised product page.
7) Don’t Compete
The audience management It is very important to improve return on spend on Facebook. If you create multiple ad sets and don’t exclude previously used audiences, you will end up competing and bidding against yourself to reach the same user.
For best results, you can create ad groups that target different stages of the funnel and exclude their audiences from each other.
8) Exclude your current customers
There’s another group of people you should exclude from your Facebook audiences: your current customers.
If you’re looking to attract new customers, serving ads to people who have already purchased from you is a waste of budget.
However, you can (and should) include them in your advertising campaigns. retargeting to build loyalty and generate repeat purchases.
9) Experiment with lookalike audiences
Lookalike audiences are groups of Facebook users who share characteristics with your business’s existing customers. To create them, you just need to upload a CSV file with the users in your database.
When setting up your lookalike audience, there is one key factor that I recommend experimenting with: match percentage, i.e. what percentage of Facebook users will you potentially include in your audience. The strictest is 1% and the most relaxed is 10%. Try different percentages to see which gives you the best results.
10) Optimize your budget
Finally, let’s see some recommendations to optimize your budget:
- Distribute the existing budget between the different phases of the purchasing process. For new brands, it’s generally recommended to start with 70% awareness, 20% consideration, and 10% conversion.
- Identify the platforms that perform better to allocate a budget to them.
- Pay attention to budget control per ad group.
- Don’t increase your budget all at once. If you suddenly increase your budget from €10 to €1,000 per day, the Facebook algorithm will not be able to optimize your campaigns correctly. It is better to plan in advance for more gradual climbs.