Social Media & Social Ads

What Is a Good ROAS for Facebook Ads? How to Achieve a Higher ROAS With Advertising

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By Chantal India, on 15 June 2022

If you ask yourself what the most important metric is to measure the success of your Facebook Ads, you would probably think ROAS or Return on Ad Spend. This figure is equivalent to ROI, as it indicates how much profit is being generated for each dollar invested in advertising.

So, what is a good ROAS for Facebook Ads?* Learn 40 effective strategies to optimize your ecommerce with our free,  comprehensive ebook! 
What Is a Good ROAS for Facebook Ads How to Achieve a Higher ROAS With Advertising

Simply put, the higher your ROAS, the more profitable your Facebook ads will be. So without further ado, let's see what the key ways to optimize your Facebook Ads campaigns are and how to make the most of your advertising budget.

10 Tips to Improve Your ROAS for Facebook Ads

1. Choose the Right Target

Facebook uses the objective you select when creating your campaign to decide who to show your ads 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 that the ad will end up being more effective if you choose the right target, even if the traffic target generates more clicks at a lower cost per click.

To choose the right target, keep in mind that Facebook divides ad targets into three broad categories, which correspond to the main phases of the conversion funnel: brand awareness/recognition, consideration, and conversions.

2. Don't Segment More Than Necessary

This tip may seem counterintuitive since targeting ads to the right audience increases the likelihood of getting results. But if your audience is too small, you run the risk of Facebook's algorithms spending too much time in learning mode and not being able to optimize your campaigns due to a lack of data.

If you think your audience is too small, try eliminating filters that are not essential to reaching your target, such as device segmentation.

3. Test Your Creatives and Formats

A/B testing is a great tool to compare two versions of an ad and find out which one works best. There are many elements suitable for A/B testing, but if you want to improve your ROAS on Facebook, we recommend starting with these two:

  • Creative themes such as 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 previous tip, you've probably already identified the most effective ad formats for your account. Now it's time to focus your budget on what works and watch your ROAS skyrocket. 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 focus on it... at least until you have to apply the next tip.

5. Be Careful with Frequency

As we've been saying, once you've found something that works, don't change it until the time is right. And how can you know when that time is? By monitoring the metric called "Facebook Ads frequency". If an ad's frequency metric goes higher than 3 or if it has stopped yielding ideal results after a while, it's time to update it. Otherwise, your audience may end up feeling saturated with your ads and your ROAS will plummet.

6. Test Landing Pages

Landing pages are another fundamental element for A/B testing. Getting the user to click on your ad is just the first step: the landing page experience is critical for conversion. The most appropriate landing page type is related to the objective of your ad and whichever stage of the conversion funnel the user is in.

  • For brand awareness or recognition ads, you can try sending users to a collection of products or even to the homepage of your website.

  • For consideration ads, collections or individual product pages can give good results.

  • For conversion ads, it’s most effective to send users directly to the advertised product pages.

7. Don't Compete With Yourself

Audience management is very important to improve ROAS on Facebook. If you create multiple ad sets and don't exclude your audiences that are already being used, you will end up competing and bidding against yourself to reach the same user.

For the best results, you can create ad groups targeting different stages of the conversion funnel so you can exclude your audiences from each other.

8. Exclude Your Existing Customers

There's another group of people you should exclude from your Facebook audiences: your current customers. If you're looking to acquire new customers, showing ads to people who have already bought from you is a waste of budget.

On the other hand, you can (and should) include them in your retargeting campaigns to build loyalty and generate repeat purchases.

9. Experiment with Lookalike Audiences

Lookalike audiences are groups of Facebook users that share characteristics with your company's existing customers. To create them, just upload a CSV file with the users in your database.

When setting up your lookalike audience, there is one key factor that we recommend you experiment with: the match rate, that is, the percentage of Facebook users you will potentially include in your audience. The strictest is 1% and the most relaxed is 10%. Try different percentages to see which one gives you the best results.

10. Optimize Your Budget

Finally, let's look at some recommendations to make the most of your budget:

  • Distribute your existing budget between different phases of the buying process. For new brands, it is generally recommended to start with 70% for recognition, 20% for consideration, and 10% for conversion.
  • Identify which platforms are performing the best to allocate your budget to them.
  • Pay attention to budget control by the ad group.
  • Don't raise all of your budgets at once. If you change your budget from 10 to 1000 dollars per day all of a sudden, Facebook's algorithm will not be able to optimize your campaigns properly. It is better to plan ahead to make more gradual increases.

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Chantal India