• About
        • Paid Social

          Highly targeted performance marketing

          Paid Search

          Exceptional growth across the Google network

          Social Media

          Increase your engagement across social

          Content Creation

          Producing unique social content

          Web Design

          Building a high converting e-commerce store

          Email Marketing

          Creating automated email funnels

  • Case studies
        • Branded Content

          Create brand-first impact through video

          Social Media content

          Dominate socials through quality content

          Product Adverts

          Drive conversions through video

          Web Design Portfolio

          Top spec web design projects to improve your brand

  • Blog

How to increase ROAS (return on ad spend) on Facebook

If you’re running Facebook advertising campaigns, you need to ensure that your budget is working as hard as possible for your business. 

After all, you’re investing your hard-earned cash into the platform. Every penny counts.

(Brace yourself for some marketing lingo.)

To help you maximise the impact of your Facebook budget, you must stay focused on increasing your ROAS.

Upbeat Agency Logo

Boost E-Commerce ROI: Download Our Free CPA & ROAS Calculator

That little acronym stands for Return On Advertising Spend – a handy calculation that can highlight the efficiency of your spend and identify opportunities for improvement.

But what does the ROAS calculation involve? And how can you ensure that your spend is working overtime to smash your goals and boost your revenue?

Let’s dive deeper into the world of ROAS, so you can understand how to squeeze the best results out of your Facebook budget.

How do I calculate ROAS?

The ROAS calculation itself is very simple, so don’t panic if you’re not a maths whizz. 

To calculate ROAS, just divide your advertising revenue (i.e. your total income from advertising) by your advertising cost (i.e. your ad expenditure).

Voila – you’ve successfully calculated your ROAS. 

ROAS benchmarks will differ based on your industry, but on a very basic level, you never want your ROAS to dip below 1. That would mean that you’re earning less than £1 for every £1 spent, which isn’t the sign of a successful campaign. 

This is particularly true when you factor in the costs of goods sold, platform fees, and everything else you’d want to include in your breakeven ROAS target. 

Although the calculation is super simple, improving your ROAS takes a little more effort.

OK, got it – so how do I improve my ROAS? 

ROAS is a macro calculation, which means it showcases the bigger picture when it comes to marketing performance.

It’s helpful because it focuses on the basic purpose of your campaigns – driving revenue from your ads and achieving a healthy profit margin.

However, a positive ROAS is just an accumulation of several smaller wins. 

Many variables contribute to a superior ROAS, and you just need to understand how these building blocks ladder up to the larger revenue goal. 

Let’s take a look at these individual factors, and outline how they can help you to achieve a smashing ROAS.

Improving your CPM

Achieving an efficient CPM is hugely important to a healthy ROAS. Put simply, a strong CPM helps you to reach and acquire quality prospects cheaply – every marketer’s dream.

To improve your CPMs, you need to concentrate on your audience targeting and the relevance of your ads.

If targeted audiences actively engage with your ads, regularly convert or purchase and provide positive feedback, the Facebook platform will award your ads a higher quality score. 

A higher-quality score equals lower CPMs.

By checking campaign performance regularly, you can focus on the best performing audience segments and refine your targeting. 

It can be helpful to start with a broader targeting approach because this allows you to cast a wide net and quickly identify which groups are receptive to your ads. If your targeting is too narrow, you may quickly be grappling with increasing CPMs and struggling to optimise. 

You should also try and utilise Facebook Lookalike audiences. Since these segments are based on hot prospects and existing customers, they’re more likely to deliver clicks and conversions, which is a recipe for an improved CPM. 

Enhancing your CTR

Improving your CTR is crucial to achieving your ROAS dreams.

The first step is to refine your targeting. If your ads are being served to uninterested or irrelevant audiences, they’re unlikely to click, which spells trouble for your CTR.

However, the quality of your ads is also extremely important. 

Even the most laser-focused targeting in the world can’t save a dull advert! 

Make sure that you’re using high-quality images and videos, and that your assets stand out in the Facebook feed. Motion and colour are great for grabbing attention, so focus on creating thumb-stopping assets that will generate interest.

You’ll also need to accompany your visuals with copy that encourages a quick decision

Keep the copy simple, with punchy language and a crystal clear CTA that makes clicking irresistible for prospects. Focus on the key selling points and features that will generate instant interest. 

Here are some shortcuts to help your ads achieve a glowing CTR:

  • Include UGC and customer testimonials to build instant credibility 
  • Tailor your messaging to different audience segments 
  • Don’t hesitate to work with professional designers and/or copywriters 

Refining your conversion rates

Since conversions are the lifeblood of your revenue, you’ll need your conversion rates in good order to improve ROAS.

Think carefully about every touchpoint and action in the consumer journey. 

How do users navigate through your website? Which steps move them from the landing page to the checkout? 

Everything needs to work harmoniously to maximise conversions – from sharp headlines to intuitive page layouts and rapid loading speeds. All of these moving parts are crucial to driving those golden conversions. 

If you need more information on the best conversion assets to include on your product pages, we’ve already got you covered with this handy guide. No need to thank us. 

It’s also important to identify common customer objections and obstacles so that you can address them directly. 

Dig into your site analytics to figure out where prospects might be dropping off, or utilise customer surveys to gather some human insights. Knowledge is power.

You can also implement upselling tactics and special promotions to increase the average basket value of your customers. This makes every conversion that much more valuable and helps your revenue to grow. 

Testing and learning

Constantly improving your media buying can seem a little overwhelming sometimes. But the whole process can be broken down into three key elements.

1) Optimising your business-as-usual activity

2) Evolving what’s already working 

3) Innovating with fresh ideas 

You need to constantly test and experiment to improve performance on Facebook. It’s a process, so it should occur at every stage of the media buying process.

Ideally, you should regularly:

  • A/B test different assets and ad copy
  • Experiment with website elements (i.e. headlines, buttons) 
  • Trial different landing page funnels 
  • Target new audience segments

If you can plan out a clear testing roadmap and stay close to performance data, you’ll be rolling in valuable insights that can fuel your media buying. 

These insights will ultimately help to reveal opportunities for higher engagements and increased conversions – powerful stuff when you’re trying to improve ROAS.

Utilising retargeting tactics 

Harnessing the power of retargeting is a brilliant way to push conversions over the line by engaging warmer prospects. 

Retargeting can help you to overcome common customer objections.

For example, if prospects drop off at the checkout, you can follow up with ‘abandoned basket’ email messaging to help them easily recover their items and complete a purchase.

Alternatively you might retarget users on Facebook with specific products they’ve viewed, encouraging them to return with a special discount or promotion. 

These tactics allow you to reach warm prospects with a higher propensity to convert, which is ideal when you’re trying to generate conversions cost-efficiently. 

You can lean on Facebook pixel audiences and customer lists to build highly effective retargeting segments. Check out this guide for some more information on the process. 

And there you have it – a recipe for a jaw-dropping Facebook ROAS.

If you can avoid neglecting any of these individual elements, you’ll soon see how they combine to improve your campaign performance and enhance ROAS.

Plus, make sure you keep a close eye on your ROAS figure. Run your calculations regularly, and you’ll know if your adjustments are making a difference. Best of luck!



graphic design

Download our E-commerce ROI calculator

Use our simple but effective tool to give you a deeper understanding of your current marketing and where to improve.

Book Your Free Consultation Now

Speak to an E-Commerce Marketing Expert: