Achieving a high Return on Ad Spend (ROAS) is a key objective for many e-commerce businesses advertising on Facebook. Sustaining a positive ROAS, especially with a large media spend is not an easy thing to accomplish, but it is possible with the right approach.
In this article, I am going to reveal 3 Proven Strategies that will help you increase your E-Commerce Facebook ROAS.
So let’s dive straight into it.
Strategy #1: Scaling Lookalike Audiences
Lookalike Audiences (LLAs) are powerful gamechanger. They are audiences created based on existing audience such as prospects and previous customers who have similar characteristics and interests. Using LLAs is a great way to approach new audiences and scale a successful product or service beyond its local environment. That can help you increase your website traffic, prospects, or customer base, because the Facebook users in the Lookalike Audience share interests and demographic similarities with your source audience. For example, if an audience is made up of users who are male, age 25-54, and interested in e-commerce, and online shopping, Facebook will find an entirely new set of users with the same characteristics.
Now, after you already know what Lookalike Audiences is you probably ask your self the following question “But what kind of Lookalike Audiences to create and how to find out which one works best?”
The Solution is to split-test them. Try launching three to four separate ad sets with one Lookalike Audience each based on pixel events, depending on the amount of audience overlap between them (Tip: Try avoiding any overlap above 25%).
You can create the following Lookalike Audiences:
- 1% of Previous Customers
- 1% of Add to Cart Audience who visited your website in the last 30 days
- 1% of Email List Lookalike Audience
- 1% of Specific Product Page View/Website Traffic Audience
This is a great start but as a next step, you need to make sure you create the right ad with the relevant message, as these will be people who have probably never heard about your brand but have an interest in similar products or services.
Strategy #2: Use Retargeting
Facebook Retargeting is a MUST use strategy in your e-commerce business. The type of audience you can create when using Retargeting is called Custom Audience.
It allows you to reach prospective customers who have shown an interest in your business or product, based on their online activity. You can create a different type of Custom Audiences such as:
- Email Sign Ups
- People who Added to Cart But Not Purchased
- People who visited a specific page on your website such as Product Page or Blog Page
- People who engaged with your Facebook or Instagram social media page
- People who watched a certain percentage of your video
Begin by creating different time slots for your retargeting ads. I always like to start with a 3-Day, 10-Day, and 30-Day Custom Audience. Now is the perfect time to say that if you are using Dynamic Product Ads, you can also customize those time slots. Remember that each of these windows gets an ad that is slightly different from the other because the message to someone who visited your website 3 days ago should be different than someone who visited 30 days ago. Try customizing each pitch with different offers and promotions. Using different ad types will allow you to scale sustainably because you are showing different value propositions to your potential customers, which ultimately helps you understand what is working and what isn’t. Also, make sure you exclude 3-Day Audience from 10-Day and 30-Day ones and 10-Day from 30-Day one to avoid message overlapping.
Strategy #3: Constant Creative Testing
After we have talked about different strategies on the ad set level, let’s now talk about a strategy you can use on ad level. The third and last strategy I want to share with you in this article is a strategy that you should always be using, especially if you start using Facebook ads for the first time. It’s the strategy of constant creative testing.
This is a necessity if you want to identify the best performing ads that can significantly improve your ROAS. You should constantly be testing different creative variations to avoid ad fatigue and maintain high ROAS. By using the right creative, you can provide value to your customers by creating meaningful connections and giving them a reason to purchase your product or service. Consumers are more likely to resonate with an ad if it is something they can relate to or if it is relevant to their interests.
When it comes to scaling your Facebook ROAS, there are numerous other strategies brands can use. These are just three examples that we have tried with so many businesses and every time we have successfully scaled accounts and generated high ROAS.
Well, what are you waiting for? Open your Ads Manager and start implementing these strategies and let me know in the comments below or via email how your ads are performing.
Hope this was helpful. Let us know if there is anything else you would add or if you know any other strategies that you have used in the past and increased your ROAS.