It’s virtually impossible to spend more than ten minutes on Facebook or Instagram and not see at least one ad. With almost every Google search, an ad pops up on the side or at the top.
Getting your ad featured in one of these spaces isn’t free, though. How can you know if the money you’ve spent on your ads has been worthwhile?
Let’s take a look at how you can evaluate and maximize your return on ad spend.
What is ROAS?
ROAS stands for Return on Ad Spend. It is a marketing metric that measures the amount of revenue you earn for every dollar you spend on advertising. ROAS provides you with a big-picture understanding of whether or not your money spent on a campaign is paying off.
Simply put, ROAS measures the effectiveness of your advertising efforts. The more effective you are, the more revenue you’ll earn from each dollar of ad spend. The higher your ROAS, the happier you and your bosses will be.
What Types of Campaigns Should I Consider?
Social media marketing is one of the fastest-growing sectors for advertising. Small businesses benefit by engaging in social media platforms through paid advertisements.
Facebook is the leader in the online advertisement market, occupying 77 percent market share. Paid social advertising provides you access to advertising space on users’ feeds. Facebook’s advertising works on a “cost-per-click” basis, which charges you each time a user engages with the advertisement.
Facebook isn’t the only option, however. Google Ads can put you in front of customers when they’re searching for businesses similar to yours. If a customer is using Google or Google Maps to look for a business, Google Ads can recommend yours above others. This can help direct potential customers who are still undecided.
Both Facebook and Google offer remarketing facilities. Remarketing redisplays messages to customers when they visit other websites. This engages customers on multiple occasions and consistently reminds them of what you can offer.
What Does Success Look Like?
You might try to get by without purchasing advertising. However, social media marketing without ads has limited effectiveness. Building up an organic following can take many months, if not years. Some businesses find it difficult to generate attention at all.
Making the right strategic choices can help assure a successful advertising campaign. By targeting keywords wisely, you can gain more exposure to potential customers. Creating a personalized journey and optimizing your post-click experience will provide a great space to convert new customers.
Quite simply put, success looks like a high ROAS value. You will know you have been successful if you see an increase in revenue compared to your ad spend.
How Can I Get Started?
Reach out to Pivotal New Media for a consultation today. We are excited to meet you and learn all about your business. Let us help you maximize your ROAS and get your business growing with the power of social media and digital marketing.