Numerous E-commerce brands are facing difficulties in boosting their sales through Digital Advertising. This is mainly due to the fact that when they try to increase their budget for Facebook or Google Campaigns, the Ad spend increases but the sales don't increase proportionately for most companies. As a result, E-commerce companies often retreat from scaling-up sales due to the declining trend in ROAS with increased spending.

Due to the declining trend in ROAS despite increased spending, a lot of E-commerce brands tend to give up on scaling-up sales and revert to their previous budget levels.

A genera rule of thumb is - merely increasing budget limits isn't enough to boost sales from digital ads. To ensure a stable ROAS from Ads and a proportional increase in overall sales, a set of parallel actions must be taken. This is a general rule of thumb that E-commerce brands should follow when scaling-up sales through digital advertising.

Here are a few tactics that can prevent a decrease in ROAS while scaling up and ensure that sales from Ads increase proportionally to the amount spent:

1. Ensure Right Structure during Campaign Setup:

Properly structuring your campaigns not only organizes your target audience, ad creative, and targeting, but it also allows you to effectively work towards achieving your set objectives.

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

To maximize the benefits of increasing your budget, it's important to broaden your target audience to explore new groups and drive higher returns. Consider using lookalikes of 5% instead of 1%, specific product/category lookalikes, combined and rolling lookalikes. Also, target an entire country instead of specific cities and keep your targeting as open as possible. These practices will help you reach out to new users and achieve better results.

3. Focus on increasing your AOV to boost ROAS

To achieve higher returns on your Facebook or Google ads, direct your focus and budget towards bundled and high-value products. Increase your average order value by 50% and watch your ROAS soar by 50% through targeted promotion.

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

As an E-commerce company increases its budget on Facebook ads, the cost per sale often increases, hindering the desired scaling effect. However, implementing Cost Caps can control this issue by setting a maximum cap for each acquisition, preventing Facebook from overbidding for certain impressions. By doing so, the company can scale up its sales volume while keeping the cost per acquisition in check.

5. Update your Ads regularly with rich creatives

Engaging your audience with visually stunning and impactful creatives is a surefire way to increase your ROAS with higher CTR while efficiently scaling your business on Facebook and Instagram. It's one of the best practices to follow to resonate with your target audience and achieve your marketing goals.

6. Leveraging an optimum platform mix :

Leveraging multiple advertising platforms is a smart move when it comes to scaling up your ad spend. By running campaigns across various platforms, you gain a competitive edge and enhance your return on ad spend. It's a best practice that can help you achieve your marketing goals and grow your business.

7. Setting up remarketing campaigns:

Setting up separate re-marketing campaigns with the right strategy can be a game-changer for your Facebook and Instagram ads. Re-marketing campaigns allow you to target users who have already shown interest in your product or service, increasing the likelihood of converting them into customers. By retargeting these users with relevant and personalized ads, you can drive higher website conversions and ultimately increase your overall ROAS. Don't miss out on this powerful marketing tool and make sure to incorporate re-marketing campaigns into your advertising strategy.

8. Run dynamic ads for broad audience:

Dynamic ads targeted towards a broad audience can help you reach prospective users who have already demonstrated an interest in your product, resulting in increased traffic and profitability.