Here is a running list of variables that increase ROAS markedly, based off my own tests and those of others who collectively spend more than a few hundred thousand in Facebook ads a month. Many of these come from suggestions from the eCommerce influence podcasts, but also from my own ads.
Work in progress. More to come…
- Retargeting outperforms prospecting in terms of ROAS. No surprises at all there.
- CBO is really quite good in the right places.
- Carousels (DPAs) outperform Collections by far (in terms of purchases, though Collection can yield a very low CPC). They’re probably the best type of creative.
- Product imagery outperforms lifestyle imagery.
- Discounts increase conversions.
- User generated content performs well e.g. reviews. UGC should typically be reserved for retargeting rather than for top of funnel.
- Contrary to popular belief, videos are very comparable to still images, with still images in carousels usually performing the best. Consider using a single small video in the first card of the carousel
- Videos can increase ROAS if utilising influencer marketing.
- Photo posts targeting millennials requires a huge amount of social proof (PPE) before they even consider purchasing. PPE performs particularly well for Instagram. Switch to VC objective after enough engagement.
- Photo posts on instagram should take up a large amount of vertical space.
- NEW: Social proof increases CTR. In terms of numbers, you will see a statistically significant difference. I’ve seen about a 28% increase in CTR (which, in turn, lowers CPC). Run a PPE campaign to take advantage of this.
- Use a directed button (e.g. ‘Shop Now’ performs better than ‘Learn More’ for CTA).
- ‘Engaged Shoppers’ is a reasonable audience to layer, so test.
- Aim 100,000 – 1,000,000 for each ad set.
Onsite conversion rate optimisation
- Benefit bars listing three distinct benefits help conversions
- Use qualitative surveys (Typeform) and quantitative data (Hotjar, Google Analytics)
- In general, consider a A/B test a winner if 20% more purchases occur. If below that, may be random fluctuation.
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Scaling Facebook Ads from $0 to $10,000+/day spend – Dimitri Nikolakakis Facebook Ads Strategy Notes
Dimitri Nikolakakis - an Australian internet marketer who consults multiple 7-figure eCommerce brands for his own...