What is ROAS?ROAS is an acronym for "Return on Ad Spend". It is a marketing metric that measures how useful and efficient a digital advertising campaign is. Basically, it lets you know if the amount of money you put into the ad is benefitting you enough to make it worth it.
How do You Calculate ROAS?
Formula to calculate your ROAS goes like this:
Revenue You Made Online / Cost of Ads = ROAS.
You want to be looking at this number regularly. On platforms like Facebook, there is a handy ROAS column that you can in your Ads Manager!
What are PPC campaigns?PPC Campaigns is an acronym for "pay-per-click". This is a model or type of online internet marketing where an advertiser (you) pays a fee each time their ad gets clicked on. It's like buying visits to your site, rather than trying to earn them on your own through search engine optimization, growth hacking, or social media growth. Advertising in search engines like Google and Bing are actually one of the most popular forms of PPC.
Google AdsYou can use Google Ads for your e-commerce business to get your information out there and connect with the people who are looking for your product right away! Most people who will be interacting with your business via search will be asking questions related to the problem your product solves or looking for comparisons for similar products.
For example, if you sell a hairbrush, people may be searching for things like
- Best hairbrush for black hair
- Best hairbrush for oil hair
- Difference between a natural bristle brush and a plastic brush
- Top hair brushes for long hair
Using Social Proof to Increase ROASOnce people click-through to your website from a well placed Google Ad, you have to make sure they convert. One of the best ways to convert people is with social proof! We tend to like what other people like due to our social nature. So use this to your advantage as an online business owner to add social proof to your home page, landing page, or product page and increase ROAS. In this post, we'll talk about the particular types of social proof you can use in tandem with Google Ads that can also apply to many other platforms that pair well with social proof.
Google lets you include things in your ads like your seller rating. The seller rating is a 5-star scale that shows your recent reviews as long as you have 30 reviews within the last 12 months and an average 3.5 overall rating. Reviews and ratings are amazing for social proof and having a high seller rating will help your click-through rate (CTR) because you appear trustworthy.
Having a great CTR will lower your overall cost of advertising because Google will deliver your ads to more people to make more money off clicks! Even if you don't run ads, having a higher seller rating will help your ranking on the search engine which will put your business in front of more and more potential customers.
Landing PageMake sure your ad's landing page looks good and is fully functional and has a ton of social proof. You can use things like
- As Seen On Logo Banners to establish legitimacy
- Testimonials and Reviews to establish brand trust
- 'Number of People Watching' alerts on your product page to create urgency
Remember, your ads landing page is the first impression visitors will get of your site and your brand and you need to convert them before they click away! The best way to increase conversions when you get ad clicks is by creating the perfect landing page with strong social proof and a great call to action. That is the winning formula to convert visitors into customers and get a better ROAS.