According to Statista, 70% of all ad spend is primarily used on digital marketing. So, it is obvious that the world of digital marketing is becoming more competitive each passing day.
A proof of this competitiveness is that the average internet user is exposed to 98.5 ads per day, most of which aren’t actively perceived by the intended users. Each view that doesn’t generate a click means one lost opportunity.
Because brands are competing for the viewer’s time, businesses are constantly searching for ways to maximize their Return on Ad Spend (ROAS). This is the metric that tells you how much revenue your campaigns generate for every dollar spent.
With so many brands competing for attention, how can you boost your business’ ROAS without breaking the bank? The answer lies in smart, proven ad strategies. In this blog, let’s explore five proven tactics to help you skyrocket your ROAS and get the most out of your ad budget!
What Is ROAS (Return on Ad Spend)?
ROAS is a key performance indicator (KPI) that measures the effectiveness of your advertising campaigns. It shows how much revenue you’re earning for every dollar you spend on ads. For example, a ROAS of 5:1 means you’re generating 5 for every 1 spent.
This KPI also provides valuable insights regarding campaign performance. If used wisely, this KPI can be a key in choosing the best marketing channels and strategies.
Strategies to Improve Your ROAS
Marketers are always on the lookout for strategies that deliver. Here are 5 strategies that are proven to be effective in improving your return on ad spend:
1. Make sure your copy is compelling
Your ad copy is the words that speak on your behalf. It needs to grab their attention and persuade them to take action.
Plus, a clear call-to-action (CTA) is a must-have too. CTAs like “Shop Now,” “Get Started,” or “Claim Your Discount” can encourage clicks.
2. Remarketing to warm leads
Not every customer converts on their first visit. The marketing “Rule of 7” suggests that a potential customer needs to see an ad at least seven times before making a purchase decision. This is where remarketing plays a huge role in converting cold leads to warm leads and finally buyers.
Cold leads like website visitors or warm leads like those who have abandoned carts can be re-engaged with personalized ads. For instance, many e-commerce stores remarket those with abandoned carts by showing the same products they chose as ads. These leads are more likely to convert, making remarketing a powerful tool for boosting ROAS.
Conduct A/B testing
Another great idea is to conduct A/B testing of different versions of your ad copy, headlines, and CTAs. Testing will help you find the winning combination that drives conversions.
You could even try different colors, images, or audience segments to identify the most effective combinations.
There are a range of A/B testing tools available now that allow you to see which campaigns work effectively. Make sure that the results of your A/B tests are recorded so you can refine your campaigns over time rather than learning and relearning each time. A/B testing is a tool that shouldn’t be discredited, no matter how successful a brand might be.
4. Use negative keywords in your campaign
Negative keywords are a simple yet effective way to optimize your ad spend. Irrelevant or low-intent keywords can target an audience that isn’t relevant to you. This means marketing bucks lost on a segment that is very unlikely to convert.
For instance, a luxury watch seller will add “cheap” or “affordable” as negative keywords to avoid attracting bargain hunters. This way, their ads are only shown to users who are more likely to purchase, improving the ROAS.
Make your landing pages relevant and optimized
Your landing page is where the magic happens. If your ad and landing page aren’t aligned, you risk losing potential customers. To maximize conversions, create personalized landing pages that match the intent of your ads.
Here are three ways to optimize your landing pages:
- Personalize Post-Click Experiences:: Ensure your landing pages reflect the messaging of your ads and appeal to the needs of your target audience.
- Resolve Speed Issues:: Slow-loading pages can drive users away. Fix common speed issues to keep bounce rates low and engagement high.
- Use Hooks and Storytelling::Use compelling microstories in your ads and landing pages to keep users engaged. Tap into their beliefs and values to create a connection that drives action.
Conclusion
Improving your ROAS isn’t just about spending more—it’s about spending smarter.
We’ve outlined proven strategies to maximize your paid ads investment. Take these tips, apply them to your campaigns, and watch your ROAS soar. The results will speak for themselves!
At J. Arthur & Co., we’re proud to drive excellent ads results for our clients and would love to help your business improve ROAS. Find out how we can get you the leads you’ve been waiting for: (401) 239-1311