Want to know what really impacts your Facebook Ads Return on Ad Spend (ROAS)? In this short video interview, Kelly breaks down some of the basics, including:
‣ Why awareness and engagement campaigns might not give you direct returns
‣ How specific ad types, like lead generation, can incorporate upsells for a potential ROAS boost
‣ The role of product pricing and customer lifetime value in determining success
‣ How an optimized funnel (order bumps, upsells) can take your ROAS to the next level
From choosing the right campaign goals to understanding average returns, this guide helps you make the most of your ad spend!
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Video Transcription
0:04
in terms of the return on ad spend for
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Facebook ads there are many factors at
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play here that can impact the return on
0:13
your ad spend so I’ll just cover some of
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the top level like just some of the
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basics so um ultimately the return on ad
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spend is going to depend on the campaign
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goal that you choose so with your um
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awareness Ness campaign type for example
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you shouldn’t expect any kind of return
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on ad spend for an awareness campaign um
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the whole goal of an awareness campaign
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is to reach as many people as possible
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get in front of as many eyes as possible
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and introduce your your uh brand or your
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product or service uh to the world um
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you know a very top level audience
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segment that would be um a target market
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for you uh so you should not expect any
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sales coming from a cold audience so
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we’ll just say that um now there’s also
1:03
the engagement campaigns so I wouldn’t
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really expect to see a return on ads
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spend for engagement campaigns either uh
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but of course that can change too
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depending on what engagement you’re
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looking for like if you’re looking just
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for shares of your of your post um so
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that more people are are getting
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familiar with your service and product
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um you could potentially ask for people
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to comment on your post if you’re
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promoting an offer uh like for instance
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if you have like a lead mag a lead
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Magnet or something that you want to
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promote you could do an engagement
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campaign rather than a lead generation
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campaign uh and you can ask for people
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to comment interested below and I’ll
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follow up uh with a DM and if you have a
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lead magnet that’s embedded within a
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funnel of sorts then you can have
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upsells uh you know and cross cells
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included in that um path that that
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people will take once you give them the
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link to your lead magnet and they are
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interested in it and they opt in to
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receive it then let’s say for example
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you might have an order bump on that
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page where oh well you know if this
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seems like a a great resource for you we
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also have this only for $9 and you know
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this has a ton of
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that would that would even further help
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you out or or help you out even further
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excuse me can’t talk today but uh so if
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you have an order bump on your free lead
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Magnet or if you have like an upsell on
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your thank you page that you drive
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people to after they have opted in um
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then that is a you know an example of
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when you might see some sort of return
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on ad spend for like an engagement or
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lead generation
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campaign uh now in terms of the average
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return on ad spend if you have um you
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know if you have a cost per acquisition
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that you’re aiming for um then you can
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get pretty granular with your settings
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on Facebook ads once your once your
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tracking pixel has enough data and it
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sees what uh what your primary drivers
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for for Revenue are on your website so
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like if you have um if you do have that
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leag magnet let’s say for example and
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you have the order bump and then you
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have a followup uh thank you page with
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an
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upsell uh you know sometimes people can
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see upwards of 20 times return on their
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Facebook ad if it’s uh if it’s a
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well-written ad and your strategy is
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down and you have upsells throughout
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that funnel for people to um invest even
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more and whatever your product or
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service is uh than what you initially
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were promoting in the in the first ad
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that they saw um Now with uh some of our
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clients in the past who have like an
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e-commerce store for example if you have
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a a physical product that you’re selling
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on your website um that people can just
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check out and purchase right there we’ve
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seen clients achieve upwards of 12 to 13
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times return on their ad spend depending
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on the the average price of their
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product on their website so you kind of
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have to look at all of these factors at
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Play figure out how much you’re willing
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to pay for a lead right um depending on
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what you expect to earn from each of
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those leads so if you have a low ticket
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offer or a low uh a low priced product
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like if your products on your website
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are you know anywhere from 10 to to
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$30 then you’re going to want to aim for
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a lower cost per acquisition on that um
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especially if people don’t order in bulk
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and you’re only getting you know ly 20
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bucks average order value per order you
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have to keep that in mind as well um now
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if your products are more like in the2
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200 to $400
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range then you can expect to see more of
5:15
a return for each purchase um for each
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lead that that does end up purchasing
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the product so there’s a lot of things
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that can fluctuate depending on your
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product or service and your offer as
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well as depending on how optimized your
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ads are to to increase these conversions
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and and and what the whole funnel looks
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like so there’s just a lot of factors at
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play on your return on ad spend here um
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we’ll have to dive deeper into that
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topic in a different video
