How To Achieve High ROAS On Facebook Ads

A positive return on ad spend is always the goal of every digital marketer and business owner. However, it doesn't just happen automatically. There are rules and tactics that make it a reality. Before I go into what the rules are, you may be wondering what a good ROAS is. 

What Is A Good ROAS

Return on ad spend is the revenue you get back for each dollar spent on advertising. It is calculated by dividing your revenue by your total ad spend. If you have setup purchase and revenue tracking on your ad account, it can be selected to show up as one of the metrics by using the customise column option on Facebook ad manager. 

 

Anything from 4X and above is generally considered a good ROAS on Facebook ads. However, there are other factors to take into consideration as well, such as your profit margins and total expenses outside of ad spend. You should take all these into consideration to determine what the optimal ROAS for your business is. 

How To Get A Positive ROAS On Facebook Ads

The below steps are things that have worked well for me in getting positive ROAS on Facebook. I have gotten as high as 14X ROAS from applying some of these.

Be Sure You Are Promoting An In Demand Product 

Having a good, in-demand product is essential to achieving a positive Return on Advertising Spend (ROAS) on Facebook ads. A great product inherently provides value to your customers. It meets a need or solves a problem, making it more appealing to your target audience. When you promote a product that people want and find useful, they are more likely to engage with your ads, click through to your website, and ultimately make a purchase. This increased interest and demand translate into higher conversion rates and a better ROAS. 

A high-quality product also tends to generate positive feedback and word-of-mouth referrals. Satisfied customers are more likely to share their experiences with others, whether it's through social media, online reviews, or personal recommendations. This organic promotion can amplify the reach of your Facebook ads, leading to more traffic and conversions without additional advertising spend. 

Create Compelling Ad Content 

For your target audience to take note of your ads, they need to be compelling and address their pain points. Do adequate audience research to clearly identify the pain points of your audience and what they need. After you have done this, craft your ads in a way that presents your products as the solution to those pain points. There are also proven ad templates that have worked well for other advertisers in the past that you can take advantage of. I have listed a few below.

1. Nostalgic Ad

 

This ad template draws the audience in by tapping into powerful emotional connections about the past.

Nostalgia is a powerful emotion that transports people back to cherished memories and experiences from the past. By incorporating nostalgic elements such as retro visuals, vintage music, or references to popular culture from bygone eras, Facebook ads can evoke strong emotional connections with viewers. 

Here is another nostalgic ad example that aims to get people to download a mobile game by playing on nostalgic memories of the popular video game- Mario

2. Press screenshot ads

This template leverages social proof, credibility, and visual appeal to capture audience attention and drive conversions. They are visually compelling and standout in Facebook newsfeed. They are much more effective when the press screenshot is a real article that was once published about your brand by a reputable publisher. They have a way of convincing potential customers who are on the fence to give your product a try.

When users see that your brand has been recognized and endorsed by respected publications or influencers, they perceive your brand as more trustworthy and credible. This increased trust and authority can significantly impact purchasing decisions, leading to higher conversion rates and improved ROAS.

However you can still use these template even if your brand doesn't currently have an article by a well known publisher. You just need to avoid mentioning a real publisher name.

3. Notes image ad

These templates leverages the familiarity of handwritten notes or sketches to tell a compelling story about a brand. They are usually visually appealing and standout in Facebook newsfeed. They evoke a sense of personalization and authenticity that resonates with audiences. Notes image ads feel less polished and more genuine, creating a connection with viewers on a human level

4. Do both in one template

This template finds a way to present your brand as the solution to people trying to choose between two alternatives. The trick is finding two or more things your product offers that people generally have to choose either or. An example is below

Go Broad In Your Facebook Ad Targeting

From recent experience broad targeting ad campaigns performs much better than interest based campaigns. With broad targeting you are leveraging machine learning by allowing facebook's algorithm to do its job the best way it knows out without any form of limitation. Instead of using interest targeting, you can call out your audience in your Facebook ad creative. The algorithm will on its own show the ads to people who have responded well to similar ads in the past.

Monitor And Analyze Performance

Regularly monitor the performance of your Facebook ad campaigns by paying attention to key metrics such as click-through rate (CTR), conversion rate, cost per conversion, and return on ad spend (ROAS). Identify which ads and targeting strategies are driving the best results and allocate more budget to them and create more of the same.

Optimize For Conversions

Be sure you are optimising for the actual result you want. Don't optimise for a result close to what you want, it doesn't work. Optimise for the actual goal. When you optimise for the wong result, it confuses the algorithm to think its showing your ads to the right audience when it isn't. Even if your actual goal is tough to meet, optimise for it. It pays in the long run and the algorithm will be forced to recognise the people that can convert.

All the above principles have worked well for me in my ad campaigns and am confident they will for you as well if they are followed.