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How to Improve ROAS

how to improve ROAS

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In 2018, the top 200 advertisers spent $163 billion on advertising. While advertising is an easy way to boost sales for your e-commerce businesses, there is a lot of competition. This means that you need to find ways to make your ads stand out and to increase your return on ad spend, also known as ROAS. Do you want to learn more about how to improve ROAS?

Keep reading these top tips to make your advertising strategies more efficient and attention-grabbing.

Improve the Mobile-Friendliness of Your Site

One of the easiest things that you can do to improve the return on investment for your advertisements is to improve the mobile friendliness of your website. This is because more and more people are doing their online searches with their smartphones. 

A report from Hitwise shows that about 60% of all online searches are done on a mobile device. 

When your site is not compatible with these mobile devices, you will not be getting conversions from the clicks on your ads. 

Focus On Keyword Targeting

Next, you need to prioritize keyword targeting. If you are not intentional with the keywords you choose and where you put them in your advertisements, you will not get as many conversions. 

Not only do you want to optimize your ads with keyword targeting, but you need to target keywords for each of your landing pages, product pages, and more. One easy way to find the right target audience is by using long-tail keywords. 

These are more specific keywords that attract high-quality traffic that will be more likely to convert. There is also typically less competition for these keywords, so it will not cost as much. By doing keyword research for your ad campaign, you can find low-cost keywords that will be more likely to convert to your site. 

Something else that can help you find the best keywords for your ads is using the negative keyword feature. This will show you what keywords you are using that are getting clicks, but no conversions. 

If you are paying for these negative keywords, it will lover your ROAS. 

Use Local Advertising

Something else that can help you gain more conversions and increase your return on ad spend is using local advertising. This is especially important if you have a brick-and-mortar business location. By using geo-targeting for your advertisements, you will not be wasting money on people who live hundreds of miles away.

Another reason why you may want to use geo-targeting for your local advertising is if you only ship to certain countries for your e-commerce business. This way, you can target your ads to those who are in your local area or those in the countries that your business ships to. 

These people will be more likely to make a purchase and to convert, meaning you will get a higher return on your ad spend. 

Optimize Your Website

Next, you need to optimize your website, specifically your landing pages. Getting a click on your advertisement is only the first step of the process. If you want to get more conversions and if you want to boost your average order value, you need to improve the user experience on your website. 

You must have different landing pages for all your ads. This way, your website, and ads will work together cohesively. 

There are also some landing page best practices that you need to follow to provide a better user experience. Make sure your landing page is focused on a single conversion goal that has a specific call to action. It should also be user-friendly and full of persuasive copy that highlights an attractive feature or incentive. 

Something that can help you find the best landing page for your advertisements is doing A/B testing. Trying out different features on two different pages will help you see what tactics are working and provide a better conversion rate. 

Learn About Google Ads Quality Score

Another vital factor to increasing your ROAS is learning more about the quality score of your ads. Many things determine your score, including the expected click-through rate, landing page experience, and ad relevance. These are important e-commerce metrics that can help you learn how to calculate ROAS. 

You can use Google Ads and other free tools to improve your advertisements. 

When you improve your quality score, you will find that your ads don’t cost as much. This improves your return on investment. 

Target the Right Audience

Finally, you must learn how to lower your cost per click when you are creating advertisements for your business. One way to do this is by targeting the right audience. When you know who is more likely to be interested in your product, you will convert more of your potential customers and will earn more money. 

There are many ways that you can learn to target different audiences with your advertisements.

This includes narrowing them down by geolocation, type of device, job title, and more. By segmenting your audiences and creating multiple personas, you can create different ads that work better for different audiences. 

Learn How to Improve ROAS With Free Tools

Learning how to improve ROAS can seem confusing and overwhelming, there are a few small changes that you can make to increase the return on your investment. Following each of these tips will give you more conversions out of your advertisements and increase your sales. 

Do you want to learn more about improving ROAS with your e-commerce business? The E-Commerce Boardroom can help! We provide e-commerce courses and other free tools that can help you develop your business and drive growth. 

Contact our team to schedule an appointment with an e-commerce consultant!


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