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How to Increase ROAS in Facebook Ads by 60% – Strategy (Case Study) - Consultoría Marketing Digital E-commerce

 

In my first days of keeping this account, I was able to observe that the cost per purchase was high and was not favorable for the company, they had a theory about how the advertising schedule should be invested, which I was able to confirm with Automated reports that we They allowed us to have a broad overview of what the strategy to carry out should be.

We decided to change the way advertising was spent and we obtained very favorable results which allowed us to determine how we were going to face Q4 2021.

After several meetings and data analysis, we decided to change the Facebook Guideline strategy and these were the results:

 

Old Form: Ad Spend from August 1 – August 24

 

The Investment Model in Advertising Guidelines was used with 28% directed to Traffic and 57% to Retargeting.

Expert Facebook ADS

The cost per purchase averaged a total of Q79.24 and an average ROAS of 3.69
Additional Source: Google Data Studio.

Facebook ADS Expert

Before deciding any action, the following Hypotheses were elaborated:

 

Facebook Hypothesis

Expected Result

Adding more budget to Retargeting

Decreases ROAS and Increases cost per purchase

When creating collections of catalog by category

More sales will be obtained

By increasing more budget to traffic

The cost per purchase will decrease and ROAS increases

By creating new audiences

The cost per result

Add more budget to Remarketing in 15 and 30 every month

finish closing sales



Advertising Investment of 25 August- September 3

 

In the following image, the distribution of the advertising pattern was changed with 60% directed to Traffic and 35% directed to Retargeting

Image No. 2: Advertising Investment from August 25 to September 3

Consulting Facebook ADS

Source: Madgicx

It was possible to lower the cost per purchase from Q79.24 to Q64.1 with this model

Additional Source: Google Data Studio

Consultant Facebook ADS

The results obtained with these Changes are not 100% accurate until compared to the same period of time, but they give us a parameter to determine how the month of September will be managed.

 

Distribution of Budgets in Facebook Ads 1 Sep – 30 Sep

Facebook

Investment

Proportions

Traffic

Q 24,000.00

60%

Conversions

Q 8,000.00

20%

Remarketing

Q 8,000.00

20%

Total

Q 40,000.00

100%