9 Creative Ways to Optimize Facebook Ads Cost and ROAS
Ads on Facebook can be finicky. Here are nine ways to improve the return on your ad spend(ROAS) by optimizing your campaigns .
Prism Digital Marketing, the best PPC Marketing Agency in Dubai gives you nine ways to improve your campaigns on the world’s largest social network to increase your return on ad spend (ROAS).
More Data Driven
Bad Facebook ROAS is often caused by a well-intentioned but widespread error: over-segmentation. We PPC people adore being in charge, but so does Facebook.
Facebook’s bidding algorithms, we must say, are very fine. They must, however, be able to exit the learning mode to reach their full potential (and more).
Since Facebook *loves* data and relies on it to make bidding decisions, data scarcity makes it difficult to optimize.
Low data volume can cause inconsistent results, causing your cost-per-result to be unpredictable, even if an ad set is driving conversions.
As a result, when we try to break down ad sets into ultra-fine goals, the bidding algorithm revolts.
Over-segmenting audiences limits data and makes good output challenging.
If conversion volume is low or inconsistent, removing segmentation across devices, platforms, and other factors can be a way to improve performance.
It’s not often because you’ve segmented too much. You might not have the platform or demographic segmentation in place, but if your audience is small or the geography you’re targeting is narrow, you might end up with an ad set that’s too small to get out of learning mode.
Integrating several transforming audiences will sometimes help to combine enough data, in this case, to perform better than they did separately.
Keep an Eye out for Outliers.
During account audits, we often see the following mistake: once anything is launched, the targeting is never changed. Examine the results breakdowns to see if anything needs to be altered.
Is there a particular age group that isn’t doing well? What do you mean, a placement? Even a full platform can eat into the budget without yielding much in return.
We know we just said not to over segment – and we still stand by it – but if anything has to be cut down to work better, it’s worth it.
As a consequence, if your ad collection becomes too thin, you can try combining it with another to see if it performs better.
Experiment with Various Bidding Strategies.
Trying out a new bid approach can often give the campaign the boost it needs.
Many people are tempted to use cost controls, which is possible because we’re used to using more manual bidding strategy choices in other platforms, and many of us – including us at Prism Digital PPC Marketing – prefer to have leverage.
Although I’ve seen cost caps function in certain cases, I’ve seen them more frequently limit the number of outcomes.
Since Facebook makes good bidding decisions based on volume, they aren’t always the most cost-effective bidding strategy.
Rather, we tend to experiment with “lowest cost” or “value-based” bidding in eCommerce.
Lowest cost bidding strategies allow you to tell Facebook which outcome you want to optimize for (clicks, Facebook lead form leads, conversions, etc.) and it tells Facebook to get as many of those as possible within the budget you’ve set, at the lowest possible cost per result.
Lowest cost bid strategies, in my experience, drive more volume and lower costs than cost limits, but they also mean you have less flexibility and must trust the algorithm.
As Facebook’s bidding algorithm appears to gain a stronger foothold as it starts small and grows, we suggest starting with a low budget and gradually increasing it,
You may describe a conversion with a value and set a minimum ROAS threshold using value-based bidding. Facebook can use these values to try to achieve or surpass your ROAS targets while maximizing volume.
For example, one of our clients was very concerned with the cost of acquisition (CAC), so they strictly adhered to cost limits.
They were so focused on CAC because they knew that was the amount they needed to reach to have a successful ROAS, according to our investigation.
We shifted our bidding strategy to value-based bidding, and as a result, Facebook more than tripled conversion volume while lowering CAC by around 27%.
Don’t get us wrong: cost caps can be efficient. If you’re driving a lot of volume and your cost per result is similar to but often exceeds what you can afford, cost limits might be worth experimenting with.
All of this means that putting your bidding strategy to the test will help you increase your profit!
Different Objectives Should Be Tested
Another way to boost ROAS is to try out new goals. Depending on their priorities, our clients often use a combination of campaign objectives.
When using dynamic remarketing instead of static remarketing, for example, some clients have seen significant increases in ROAS.
Another client began evaluating lead generation forms and saw a 7x rise in conversion rate, resulting in a significant increase in revenue.
Different goals can be evaluated in a variety of ways to boost results, so be adventurous and see what works best for you!
Get Your Mobile Experience Better
Since mobile accounts for so much social traffic, it’s important to monitor your mobile experience.
Your conversion rate will suffer if your page speed is slow or if your site is difficult to navigate on mobile – particularly if it takes a lot of clicks.
Additionally, everyone who has been through the checkout phase on a cell phone understands how inconvenient it can be.
You’ll probably see a drop-off if new prospects’ only choice is to fill out multiple fields of data with their thumbs.
We found that many people were dropping out of the funnel after adding something to their cart – even with free shipping! – for one of our clients.
They saw a 72 percent rise in sales completion from Add To Cart to Sale after introducing accelerated checkout.
Mobile interactions can have a major impact on the success of your Facebook advertising (or most any social ads, for that matter).
New Concepts Should Be Tested (h5)
On Facebook, the creatives rule. It may simply be that the creative isn’t resonating if a goal doesn’t seem to be working.
Those creatives need to be put to the test, and they need to be put to the test again and again.
Test different formats, and if you can produce different creatives for different placements, customizing your advertising to offer different assets in different placements can be extremely beneficial.
Use the Post IDs to leverage the same ad unit with aggregated feedback and engagements from various ad sets if you don’t customize your creative by placement.
This will allow you to gain engagement faster, which will serve as a source of credibility for new prospects.
Experiment with Different Journeys. (h5)
Often experimenting with a different journey will help you find a more cost-effective option. Regardless of how long your customer journey is, your customers will still take different paths to learn more and eventually convert.
Sending users straight to the product page and optimizing for sales isn’t always the best strategy. (It is sometimes, and sometimes it isn’t.)
For example, we’ve discussed how to use lead generation forms and follow up with email drip campaigns in the past. Alternatively, you might optimize for a higher-funnel transfer, such as add-to-cart, and then remarket to people who don’t complete their order.
Once upon a time, one of our clients had difficulty converting people. It was a high-cost transaction that necessitated careful thought. People were visiting several pages on the web, the bounce rate was low, but no conversions were occurring.
Additionally, heatmapping revealed that a large percentage of prospects scrolled the entire page. Prospects were interested, but not well-informed enough to convert, according to the data.
We ran a video view campaign with a lot of third-party feedback and media mentions, then remarketed those views.
The number of click-through conversions started to increase. In Google Analytics, we began to see an increase in supported conversions as a result of the video campaigns.
When moving to a higher-funnel entry point, make sure you don’t leave any gaps in the journey.
When you start optimizing for a micro-conversion, for example, you can run a follow-up campaign to keep people going along the journey – even if it isn’t a paid campaign.
Friction Should be Reduced
There are several ways to reduce friction in the network, including those we’ve already discussed: testing ways to convert on Facebook or enhancing CRO to reduce friction on-site.
Another way to reduce friction is to drive people to a higher funnel micro-conversion if you have well-oiled systems for converting higher funnel leads, such as high-converting email nurture systems.
It’s a no-brainer if you can push those leads at a low cost and then convert them via the funnel with email.
For example, by focusing more on higher funnel lead generation and then using offline strategies to cultivate and transform their leads, one of our clients was able to reduce their cost per sale by 35%.
We’ve also seen clients have success targeting higher-funnel buyer habits like add-to-cart (ATC) or begin checkout if it meant more data to optimize for, as Facebook’s bidding algorithm thrives on data.
When optimizing to ATC, it’s normal to see a decrease in ATC to Sale. However, a higher amount of ATC at a lower cost can still result in a lower CAC and, as a result, a better ROAS.
In Prism, the best PPC Marketing agency and experts in Google ads management service and Facebook ads we suggest always running a remarketing campaign targeting people who did not complete their purchase after adding-to-cart (assuming there is enough data). It’s particularly critical if you’re optimizing for add-to-cart conversions because further funnel fallout will result in a prime goal.
Better Audiences for Research
It’s a good start to have first-party data to use. We often discover that first-party audiences, as well as lookalikes based on them, outperform Facebook interests.
However, if there is enough data available, we prefer more trained audiences.
For example, instead of pulling a list of all leads to base your lookalikes on, lead gen advertisers might pull a list of Sales, Opportunities, SQLs, or MQLs (depending on how much data they have at each level).
When you qualify your lists, Facebook has a more precise idea of who you’re trying to reach.
Even better, leveraging audiences that include values is even more efficient. For example, you might create lists based on high-value customers, repeat customers, and so on.
Experiment with different audience segmentation to see if it improves your ROAS!
Call us now at Prism Digital Marketing, the best PPC Marketing Agency in Dubai and we’ll help you gain more conversions in your Facebook Ads and Google ads soon.
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