Ads are expensive, and if they don’t give you the return on the investment you’re looking for they can quickly become a whirlpool that drags down your business.

However, if your campaign is floundering, there’s a lot you can do about it. Here’s 6 strategies that will show you how to increase ROAS and make your ads rise to the top again. 

How to Increase ROAS? 6 Strategies

For businesses building sleek advertising engines, achieving an optimal Return on Ad Spend (ROAS) is as important as the content of the ads.

It’s a concrete metric that gives you a clear picture of your ads’ financial health. It tells you how much revenue you’re generating for every dollar spent on advertising—and the higher the ROAS, the more effective your campaign is at turning ad spend into profit.

Fortunately, unraveling how to increase ROAS on Facebook and Instagram ads doesn’t require a math degree. Once you learn these six simple strategies, you’ll be on your way to a more profitable campaign. But first, let's define ROAS.

Understanding ROAS Fundamentals

ROAS, or Return on Ad Spend, is a surprisingly simple calculation: divide the revenue generated from ads by the cost of those ads.

ROAS = Total Revenue of Ad Campaign / Total Cost of Ad Campaign

If you spent $10 on ads and can attribute $20 of revenue to those ads, your ROAS is 2. That would mean you earn two dollars for every dollar you spend on advertising. You want to keep a ROAS greater than 1, which means you’re making more than you spend on ads. 

But why should ROAS be your go-to metric? It ties the ad spend directly to the outcome. The benefits can be summed up in these three points:

• Prevent Losses: Campaigns that don’t meet goals must pivot or end fast. ROAS quickly gives you bottom-line performance in a nutshell.
• Hit Goals Faster: Prioritizing ROAS leads to better marketing decisions because it tells you more about what customers respond to.
• Sell Campaigns Internally: Superb ROAS will make internal buy-in easier for future campaigns and may warrant larger budgets.

ROAS is all about improving profit margins, and knowing how to boost it means you’re directly increasing the money your business makes. But optimizing your ROAS is an ongoing process, not a one-time fix. It requires regular assessments, timely pivots, and the ability to adapt to the ever-changing digital marketing landscape. 

We’ve gathered the six most proven and efficient strategies to maximize ad dollars. If you're ready to learn how to increase ROAS, let's talk tactics.

Audience Segmentation

Break your audience into smaller segments based on differing needs, behaviors, and demographics. Learn which audience segment responds best to specific ads. You might run different ads for a Facebook user based on their age, interests, or location. Tailor your messaging appropriately, and your ads will deliver better results. 

Optimized Ad Design

Tailor your ad to the platform’s user experience. Know what your ad will look and feel like when users see it on Instagram and Facebook. Don’t overengineer your designs; focus on conveying a message that resonates with your audience segment, then drive to the product. Designing an ad that pops is great, but visual noise pushes prospects away.

A/B Testing

You can’t know which variations work until you get real-world data. A/B testing provides crucial insights into audience impressions. Before you leap into something new, try out competing designs. Vary your ad copy, visuals, calls-to-action, and audience segmentation. Be bold and try different options without taking a risk.

Smart Bidding

Controlling costs with bid strategies can help maximize the value of your ad spend. For example, Facebook offers an automated ROAS goal for bidding to deliver optimal ad returns. These strategies dynamically bid based on your campaign’s goals, and machine learning algorithms predict how much ROAS a user can generate.

Practical Analytics

Analysis tools track performance and gather data about your ads. Set KPIs, track conversions, monitor costs, and keep your team informed. More robust tools help you precisely break down audiences and spend. Most critically, they help you communicate your campaign’s goals and results clearly—even to outsiders.

Retargeting Campaigns

Reach potential customers who show interest in your products but haven’t converted. Cookie-based retargeting allows you to focus your spending on audiences already familiar with your brand, making it ideal for optimizing ROAS. Just remember not to overexpose users to avoid ad fatigue.

Increasing ROAS in the Real World

While the tactics are simple to learn, mastering how to increase ROAS takes time. An improved ROAS doesn’t just mean higher revenue; it signals better brand recognition, deeper customer engagement, and a highly effective marketing campaign.

Improving ROAS doesn’t have to be a solo journey. If you’re finding it challenging to navigate the shifting sands of digital ad optimization on your own, the experts at Social Ktchn are here to help.

Our combined 15+ years of experience and proven track record in driving millions in revenue through Facebook and Instagram ads make us uniquely qualified to help you boost your ROAS. Let us help you make your mark.