How To Implement Target ROAS Bidding Strategy
Manage episode 342491186 series 3285828
The No.1 Google Ads Coaching and Training Program. Watch Masterclass here: https://sfdigital.co/youtube
Have you ever wondered how you can use your advertising budget efficiently to drive more ROAS? Watch this video to learn how to implement the Target ROAS bidding strategy and make your marketing campaigns more efficient.
How to implement ROAS bidding strategies or on which businesses we should use ROAS? ROAS is the return on ad spend. You can use ROAS for lead generation as well as eCommerce. Ecommerce is a must because you want to know which are the most profitable campaigns. So if you are spending £1 or $1 dollar on Google and you get four or five back, then you know your return on ad spend, right? How many times you are getting back for eCommerce stores and accounts? Then you need to take out your direct cost of goods and then you can work it out that way. We have a formula.
I think I'll cover this in one of the next sessions as to how to calculate your return on spend. And then you can work out your minimum or break-even ROAS. Because once you hit that break-even point, then the budget should not and does not come into play. As long as the customer can cope up with the number of orders. If they were doing 20 orders a month and all of a sudden they're getting 200 orders a day, then that can be a big problem because they will not be able to cope up.
They don't have the manpower or the staff. And also the cash flow issues might come in because they have to buy more products and goods and lots of problems, right? So you need to work with your clients and go and ask them how fast they want to grow or how high they want to jump. And this is how you would go ahead and set up your ROAS. For a lead generation. In our case, we are a marketing agency we don’t sell physical products, we sell services. We too can work out which campaigns are performing the best and getting us the best bang for our buck when we can import our conversion value back into Google Ads via our CRM. So if we get a lead, the lead book an appointment with us, the salesperson will hop on a call like this perhaps, and then they convert offline. They are not converting online.
Google Ads doesn't know that lead has converted or not. And once they have converted, we mark that obviously in our CRM that is a conversion and the amount of whatever you put in that conversion value and that lead is sent back into Google Ads. So it's a little bit more advanced. Google has made it pretty straightforward to do that, to import offline conversions. And then you can work out your return on spend on lead generation campaigns as well, which is a very powerful way because I don't care if I get thousands of leads, I just need a handful of leads, which gives me a great profit or a good profit, and I'm happy with that. So why would I need to go after the cost per conversion? I'd rather go after the return on ad spend.--- Send in a voice message: https://podcasters.spotify.com/pod/show/uzair-kharawala/message