How We Generate 25x ROAS For An Ecommerce Store

We want to start by saying that if you're not paying attention to ROAS, you’re missing out on some moneeeyyyy! ROAS stands for Return On Ad Spend. It’s a pretty straightforward calculation you divide your revenue and your ad spend to get ROAS.

• Traffic

Your focus should be on total amount of traffic to your site at first. The more people to your site, the more likely you are to able to get sales and when you get sales, you can tweak to scale. The first step is to create images or videos that drive cheap, but targeted traffic to the site.

• Engagement

95% of people are NOT going to purchase when they visit your site. A 5% conversion rate on the website is actually amazing. So, that means the majority of your audience needs nurturing and you should create ads that tells more about the brand, adds value, and resonates with them. The goal here is to get those who have been to your website back.

• Conversion

This is where we make the money. On this particular campaign we have one image that we tested over a three month period, changing out images, text, discounts, etc. until we found what was working. Once we launched the image and it started to work, we didn’t touch it and have not touched it. The ad for the last 10 months has spent a little over $400 and has made well over $12,000. Remember, the TOF, or top of the funnel is not going to (for the most part) get you a crazy return because they don’t know who you are. But the BOF or bottom of the funnel should be converting at a much higher rate. 4-10 is a great range depending on your ad spend. To clarify, this is only one of the ads we are running.

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Hope y'all enjoyed this episode! We'll see you guys next week for another episode of The Marketing Natives!