How We Generate 25x ROAS For An Ecommerce Store

June 3, 2019

Show Notes

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!


Christian [00:00:00] What I put up we're talking about how we generate 25 eggs Roe as for an e-commerce store. You don't know where Roe as is. We'll let you know.

Aaron [00:00:24] All right. So for those of you who saw the title and were like What the heck is wrong Soros It's Rosie. Rosie. Yeah. It is not a wine. It's return on ad spend. So thanks for clicking in and listen in to the episode. But I think it's going to be very beneficial for you for your e-commerce business. Store owners whether you have one or you are about to start one. We have a couple of tips here and kind of an explanation of how we got this.

Aaron [00:00:53] Twenty five X are less so Rose score I think you say it rose or do you say our o s i say row as well as yeah as say real as that's what I think most people say is as.

Christian [00:01:08] So I mean this whole thing is a three part sort of campaign but I mean the first thing that you need to focus on is driving traffic to your e commerce store without that traffic. It's gonna be harder to scale and make different changes on on your ad campaigns and be able to actually generate that twenty five x row ads. So the very first thing they should definitely do is drive traffic to your site and you can do this several ways by doing images or videos that drive just cheap targeted traffic to your site.

Aaron [00:01:47] Yeah. And the reason the traffic so important is that like for the rest of the parties that we're going to talk about number two in number three if you don't have the traffic it's really hard for you to get answers for two and three and those two steps basically are kind of obsolete. So a lot of people say like my site's not good or I need to change a bunch of stuff. But they have three hundred people going to the website every month.

Christian [00:02:10] Right. It's not enough data to really make that decision right.

Aaron [00:02:13] So if you're less than you know a thousand people per month you get to at least get to that thousand really strive to that 5000 like that critical mass of like success is 10000 and above if you get to ten thousand or when you get to ten thousand that's where you really start to see numbers and figure out OK if I spent x on ads or if I spend y out here this is where I'm gonna be able to get my return. So that's number one. Make sure that you create things that are gonna give you traffic to your site doesn't have to just be an ads.

Christian [00:02:44] Yeah. And I think with something that you always do to keep in mind is that you're at your images or videos are you know you're using the same branding the same products that are gonna be on that site. Otherwise there's just a disconnect between you know maybe you're creating big flashy ads with yellow colors and it catches people's attention. But when they go to your website it's just like maybe you're black and it has just dull things. Yeah. So you always want to make sure that you're branding matches all of your ads. Yes.

Aaron [00:03:17] All right. So our second thing here is the engagement. So number one with traffic it's more of the top of the funnel engagements more of the middle of the funnel. So this is a week where you spend time engaging your audience. OK. So don't be alarmed when we say that most people who go to your Web site are not going to purchase and by most I mean most everybody a good Web site conversion rate is like 5 percent. Like if you're really just rocking it 5 percent which means that ninety five percent don't purchase and that's not bad. I mean the point is that the most people really need to think about it for yourself. You really needs an education or a little bit of prompting to make a purchase. It's not like Oh yeah I'm making this purchase I'm going to do it right now. Some people are that way but most people like I'll add this to my car or I'll look at it later or air next it was telling me the story this morning about what was it called athletic Greens for example.

Christian [00:04:12] You've been looking at that for five months now nine months nine months and just recently he actually made the purchase. So it's definitely a journey is not something that happens very quickly. I mean sometimes it does and that's awesome. But a lot of times it takes a lot of nurturing to to warm up the audience into purchasing your product.

Aaron [00:04:31] Yes like actually a good example is last weekend I was going to buy a shirt for Brianna and I did buy a shirt for Brianna for Mother's Day but it was more of like an impulse buy because I was like Oh this is cool it's a local Dallas influencer it's kosher and I think she'll like it. I'm just gonna go here. Checked out on Instagram and purchased it it was like I was part of that 5 percent but then I'm also part of that other ninety five percent like I said I literally spent nine months and they targeted me with ads on Instagram. They target me with ads on Facebook had they stopped running ads to me I probably wouldn't have been as engaged. Right. Forgotten about. I would have forgot. Yeah I mean nine months if stage just like oh he didn't purchase in the last seven days let's stop running and and so you need to make sure that those ads are engaging the add value to your customer. They walk them through Father of like why they should make that purchase with you and that's a little it's a very important step that I think a lot of people miss. They go from oh I want to send traffic to the website. And then right after that they didn't buy so many to go back and just completely try to get them to convert and that they're not ready to convert yet.

Christian [00:05:35] Right. Exactly. Yeah.

Christian [00:05:37] So any time you see that the statistic of the 95 percent you always should look at it as a opportunity for you to go back to them and nurture them to eventually get that conversion.

Christian [00:05:51] We're having technical difficulties with it. There you go.

Christian [00:05:57] That's crazy cause sometimes we get the premature air horn.

Aaron [00:06:01] I figured it out now that I just need to click the button off or on it was off. I was like oh we don't need any calls while Cal's while we're down.

Christian [00:06:10] So now it's my turn. Yes and no I didn't say anything here. We have our notes pulled up anyway so if you're busy listening to the marketing it is for a while. You know that we take a little moment to talk about branding which is our company and today. Yeah. I'm so lost because I have no idea. I wasn't ready for this. So we don't have it in our notes. But I guess I want to say thank you for listening and this episode is awesome. So just keep on this.

Aaron [00:06:44] OK so obviously we're just going to keep that in there. That's. What you guys like about us. We're definitely very raw and otherwise. I would also probably take me an extra 20 minutes to edit all that stuff so.

Christian [00:06:57] Or more lazy knives and warrior were more real.

Aaron [00:07:01] So most of the stuff you hear on the podcast is our real stuff. We're not taking out the arms or the O's or anything like that. Yeah definitely cut Christian off guard because we didn't put it in the notes. He's supposed to have a good plug always on top of his head but he's got about his name I think because I got the one for next time. Anyway let's get back to this our last part. This is where we did get to the twelve twelve X twenty five x Rojas score. So we spent a dollar made twenty five dollars. And whenever with that title I don't want that title to seem like it's misleading because it's not. It really is one ad that did that. However there was a process to make sure to get that return on ad spend.

Christian [00:07:46] Yeah. And just to give you a little while we're talking about here is the conversion part so we talked about traffic. We talked about engagement and this last ad was the actual conversion. And then this particular campaign we had one image and we tested over three month period. We definitely did some testing changing our images trying out different text playing around with different discount models and things like that until we found I was actually working then we launched an interesting thing seeing the single image campaign yes. SIEGEL And things I was going to campaign when I started to work. We just didn't touch it and just left it like that. And over the last 10 months we spent a little over 400 dollars and from that foreign dollars if we made well over twelve thousand dollars for this e-commerce store.

Aaron [00:08:39] So doing well in the campaign just for people who are just starting out on Facebook Instagram or already have been doing it it's actually just a reach campaign which is even more impressive like the goal isn't necessarily conversions. It's just more of like a a little reminder. And the image is such that like you know the person who's on there has really good color popping the verbiage is really good. The offers good and the best part about this is that the. Of the 12000 made. I would have to go back and look but I think maybe 1 percent have actually used that coupon code. So even though they see it as a coupon offer and they're like Oh yeah that's a great deal they just go in there and check it out and I'm like oh I can't remember what it is or you know for whatever reason they don't use it but they still make a purchase. So really good. We don't reach a ton of people with this every month but it does generate a you know a good significant amount of income to kind of offset any other campaigns that we're running that you know maybe a top of the funnel middle of the funnel which we talked about like the traffic or an engagement an important part for this for the conversion is that just to give you numbers like the traffic campaigns at the very top of the funnel if you can spend a dollar make a dollar. That's great. In the middle of the funnel if you can spend a dollar maybe two or three dollars that's what you would like. And the bottom part if you can spend a dollar makes three or four dollars up to ten to twelve dollars plus that's like a good ratio of what you're spending to get people because obviously the people who are called you who don't know who you are coming to the website are not going to convert nearly as much as somebody who seen maybe three to seven of your ads.

Christian [00:10:19] Exactly. I don't have anything else.

Aaron [00:10:22] No definitely. What I was going to say about that. You can do to try to take him I was going to say like reach out to us on Instagram if you have questions about this. It's at branding that's by t bar and design. So go to a bit branding on Instagram shoot us a message if you have any questions about this or we'd like to see the image or anything like that. I'm happy to share that just shoot us a message over on Instagram.

Christian [00:10:46] Awesome. All right. So there you have it. How we generate 25 x ROI ads for an e-commerce store. We talked a little bit about traffic engagement and conversions. Thank you so much for listening. If you enjoy this episode like Aaron said Shoot us a message on Instagram if you like to know a little bit more about this particular campaign. And if you're still enjoying the review please and thank you. We love you by piece.

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