Open Mon - Fri 9am - 5pm
Email [email protected] Call Now! (800) 481-1720

8 Ways to Increase Your Paid Search ROAS (Return on Advertising Spend)

To figure out if your ad campaign is earning or losing money, you have to measure its Return on Ad Spend or ROAS. Getting clicks is great but that will not contribute to your business’s overall revenue if that’s the only thing your customers do.

This is pretty much the same as converting data if you are just only measuring how many people are clicking instead of spending their money on your service or product which does not exactly tell you how your ads campaign is doing. 

Understanding and analyzing your ad campaign’s click and conversion data are important, but it is also equally important to know  how your ads can earn you more money than how much it costs you.

What is ROAS & why is it important?

ROAS is a formula or calculation that lets you divide the total amount of revenue you generated from your ads campaign by the amount you spent on it. The ultimate goal of measuring your ROAS is to figure out if your ads campaign cost yielded considerable revenue for your business. It’s pretty much the same as Return on Investment (ROI), but ROI focuses on the entirety of the success of your online marketing strategy.

Contrastingly, ROAS mainly focuses on your specific ads campaign to help you measure the gross revenue from the money you spent on ads. Basically, ROAS helps you understand how effective your digital ads campaign is.

ROAS is an important metric because it  helps you assess the different areas of your digital ads campaign. It lets you see and analyze which section of your digital ads campaign is earning and losing so that you can determine which one is worth continuing. This also lets you choose the Pay per Click (PPC) ads targeting options that perform optimally.

Without ROAS, you are facing a blank wall with your digital ads campaign. You won’t know if it’s generating more revenue than its total cost. .

If you’re on the driver’s seat of your digital ads campaign, you’re probably searching for ways to improve your ROAS. To help you out, here are the best tips we’ve compiled to increase your paid search ROAS.

1. Be Consistent on Fine-Tuning Your Keywords

Narrowing your keywords is essential in targeting the customers that specifically look for your products or avail of a service you offer. Use long-tail keywords instead of short keywords to help optimize your product pages. Further fine-tune these keywords by using analytics tools to produce high-search, low competition keywords that other businesses might not be using. Always remember to indicate the exact keywords the customer is looking for. After that, proceed to analyze the data from the keyword to determine which works best for you and fine-tune it appropriately.

2. Utilize negative keywords

This style is a quick and easy way to cut the costs of your ads campaign and increase your ROAS. It may sound confusing, but you’re also aiming to cut the costs of your ads campaign while you want to increase your revenue. So, when you purchase PPC ads, try to focus also on the keywords that get a lot of clicks with low conversion rates. You can list down these keywords as your negative keywords. This allows consumers to search for these keywords without seeing your ad.  There is no need for you to purchase PPCs that don’t have a high conversion rate since you’ve already listed down and utilized your negative keywords.

3. Come up with a branded search campaign

One effective way to increase your ROAS is to run a branded search campaign. Your competitors are surely running their own, so why aren’t you? If you’re not considering this, every time your customer tries to type in your brand’s name on the search engine, your competitor’s name will pop up. Adding this to your ads campaign gives you more control over what customers see on their search engine results.

4. Try optimizing your landing pages

You’re just scratching the surface if you feel comfortable getting customers to click on your ads. You need to convert them into paying customers by optimizing your landing pages so that you can determine their ROAS. You have to change your conversion strategy especially if your ad traffic is directed to the same home page or landing page on your website. Your PPC ad’s landing page must be relevant to the messages you placed in your ads so that you can draw your targeted audience. The content on the landing page must give a smooth passage from your ad copy.

5. Minimize using broad matches

Although broad matches in ad campaigns are effective in providing you with the best keywords, this will put a hole in your pocket without any assurance of giving you the return you want. Try developing a strategy that lets you match exact keywords while reducing your dependence on broad matches gradually. Instead of using a general keyword term that has a broad match, use specific keyword phrases that convert more than the former. Always remember that consumers are more specific in their research, thus they use specific keywords to filter results. Once you figure out what keywords convert more, you should stop relying on broad matches for your ad campaigns.

6. Improve your ads’ quality scores

Why is this important to increase your paid search ROAS? It is because the higher your ads’ quality scores, the higher your ad ranking will be while it also lowers your PPC cost. Google determines your ad ranking based on your ads’ quality score. This will likely increase your visibility on search engines and the probability of consumers clicking on your ads. Having a good quality score is relevant to lowering your cost per conversion and helping increase your ROAS. Improve your ad’s relevance by modifying your ad campaigns into more compact and more specific ad groups. Try developing ad groups that are precisely relevant to the keywords it contains.

7. Adjust your real-time bids using AI technology

You can lose revenue while you wait until you have free time to spend in analyzing and adjusting your ads. You can take advantage of artificial intelligence (AI) technology that lets you maximize your campaign’s value by submitting your real-time bids for each impression. You can choose a different digital ad platform that helps you adjust your advertising bids automatically on a recurring and consistent basis by focusing more on high-value targets to reduce the costs. The AI technology calculates the shopping behaviors, time of the day, and location to help you adjust efficiently with your real-time bids.

8. Run seasonal offers

Holidays and special occasions are the best time to run seasonal offers since consumers are most likely interested and would highly patronize your products and services during this season. 

Whatever the occasion is, Halloween or Christmas, seasonal offers can increase your ROAS and your display advertising ROI.

Conclusion

Your ROAS has a consequential impact on your business’s overall revenue, so don’t take it for granted and start using the tips we’ve provided above. Make sure you utilize all these tips and see how it goes.

Have low ROAS? If you need any help, we have marketing analytics experts that can lend you a helping hand. Connect with Tulumi now. 

Deb Wallace | CEO | Digital Marketing Services | Tulumi Digital Marketing

Deb Wallace

FOUNDER & CEO, TULUMI

Deb Wallace brings a dynamic career in mobile and internet marketing. She remains on the industry’s cutting edge for technology and innovation driving new business through establishing strategic partnerships and relationships. She carries with her a vast knowledge in the e-commerce marketplace as well as extensive experience in the online payment processing industry.

Deb is exceptionally well organized with a track record that demonstrates creativity, tenacity, and initiative in achieving both personal and business goals. She is currently focused on providing multiple locations for the company.

DIGITAL MARKETING NEWS

Get the latest marketing strategies, advice and tips delivered straight to your inbox.

Subscribe
To Our Newsletter