6 Steps To Improving ROAS

Blog | 04 min read

Written By: Amelia Brown

6 steps to improving ROAS

Are you satisfied with your return on ad spend? 

As a refresher, a simple definition of ROAS is: the dollar amount you receive for every dollar spent on advertising. This is one of the most fundamental marketing metrics.

Every business is different, with varying profit margins and ad budgets, so every business’ version of success is also different. Start by defining your performance goals, then establish your measurement tools, which will help you to decipher where and when things go wrong.

To improve advertising performance, you need a method for measurement – and that’s where ROAS comes into play. Poorly performing ads can do more harm than good, therefore, you need to consider some common successful factors that increase ROAS. 

The following steps will help you reach your business goals, and contribute to a higher ROAS.

1. Constantly refresh your ad creative

An important aspect in running a successful advertising campaign is knowing when to refresh your ad creative. Doing so will not only help you acquire more users, but it will also help you get the most return from your ad spend.

Ads are everywhere. They come in high volume, all over the internet. It is important to know that whoever your target customer may be, advertising fatigue is real. Constantly seeing the same boring ad is just plain annoying.. the solution to that: refresh ad creative.

Fresh ads grab the attention of users and refreshes what could have bored the user. They bring new life to the ad and add more value than they did before.

2. Ensure messaging is consistent

Consistency is the key to successful brand messaging and differentiating yourself from the competition. However, being consistent doesn’t mean that you can’t change.

It is consistent messaging that establishes trust between your brand and target audience and it is what creates a known identity to your brand. The goal with this is creating a lasting customer experience that enables them to create a connection with your brand.

3. Use intent-based segmentation

Statistically, users who have added a product to the cart and then abandoned their cart are more likely to return and complete their purchase than users who have only viewed a product. Knowing this type of information is useful in understanding which audience is more likely to convert. Segmenting and targeting users who are more likely to convert gives you a chance to see better results.

4. Speak in the language of the customer

It’s often said in business and technology that to leave a lasting impact, speaking in the language of the customer is crucial. But what does that even mean?

Start with simple language. For example, instead of using tech jargon, use terminology that is not industry specific. That way, not only can customers understand what you’re talking about but they will also be more engaged. Think about it this way: your customers are present by choice. This means, in order to gain their attention, you have to be able to think in the mind of the customer. And to think in the mind of the customer, you have to be able to understand things in their terms. 

The biggest question to keep in mind is: How can I solve their problem?

If you can answer this question, then you are on the right track to gaining a new customer.

5. Give shoppers a reason to return

Chances are, your ad has probably be seen but it didn’t necessarily convert. So give your audience a compelling reason to change their mind!

This is often done with promotions. Whether it involves cost savings, or contains extra added value, these kinds of offers are more appealing to the customer. The trick to this one is doing A/B tests to see which type of incentive leads to more conversions.

6. A clear CTA

Your CTA is arguably the most important part of your ad campaign. Why? Because your CTA is a chance to motivate your audience to take a real step towards becoming a customer and it is the difference between a lead and a conversion. In other words, the easier you make it for the customer to take the next step, the easier it will be to make those conversions.