Many E-commerce brands today struggle to increase the overall sales beyond a certain extend from Digital Advertising. One of the major reason for this is that when they try to increase their budgets on Facebook or Google Campaigns, only the Ad spend goes up and sales doesn't increase proportionately for most of the companies.

Because of this reducing trend in ROAS with increase in spends, many E-commerce companies drop-off from the attempt of scaling-up the sales and bring the budgets back to previous levels. 

A general rule of thumb is that when you want to increase sales from digital ads, increasing budget limits won't be sufficient whereas a set of actions needs to be taken in parallel to ensure stable ROAS from Ads, so that your overall sales increases in proportion to increase in spends.

Following are few strategies that helps you avoid drop in ROAS while scaling-up and to increase sales from Ads in proportion to increase in spends:

1. Ensure Right Structure during Campaign Setup:

Structuring the campaigns right not only helps in organizing your audiences, targeting, ad creatives but also helps in working towards the objective you set.

 

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2. Use Broad Target Audience - Increase your target audiences with increase in budgets 

One of the best practices while increasing budgets is to focus on utilizing broad audiences as this helps in exploring various groups which results in driving higher returns by reaching out to new users. This includes keeping Lookalikes of 5% instead of 1%. Use of specific Product/ Category lookalikes, combined and rolling lookalikes. Target an entire country instead of specific cities. Keep open targeting as much as possible. 

 

3. Focus on higher AOVs

Focus & allocate more budgets to bundled products & high value products when promoting through Ads on Facebook or Google to have higher ROAS. A 50% increase in your average order value will help you increase your ROAS from Ads directly by 50%

 

4. Introduce Cost Caps to control cost per acquisition and reduce overspending on Facebook

One of the most important problems which an E-Commerce company faces while increasing budgets is that their cost per sale increases when they try to scale their Ad Spends on Facebook. One way to control this is by using Cost Caps. Cost Cap generally means that you will be able to set a maximum cap for every acquisition and it ensures that Facebook does not over bid for certain impressions. This helps in scaling volume of sales keeping cost per acquisition

 

5. Regular ad updates with rich creatives

One of the best practices to follow on Facebook & Instagram is to engage the audience with rich and effective creatives which helps in increasing the ROAS with higher CTR while scaling the business efficiently.

 

6. Leveraging multiple platforms:

One of the best practices to follow is to leverage multiple platforms while scaling up budgets on Ad spends. Running campaigns on several platforms helps in getting an added advantage of improvising return on ad spends

7. Setting up remarketing campaigns:

Setting up separate re-marketing campaigns with right strategy helps in increasing your website conversions and thereby to increase your overall ROAS from Facebook & Instagram Ads.

 

 

8. Run dynamic ads for broad audience:

Running Dynamic ads for broad audience allows you to reach prospect users who have shown interest in your product thereby providing you a lift in traffic and profitability.

 

 

 

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