How does 46x return on your ad spend sound? Pretty good, right?
This is what we, at Snowball Creations, have been consistently achieving for one of our clients for many months now. And today, I’m going to share with you my magic formula to help you achieve super-high ROAS from your ad campaigns.
My name is Max Sinclair and I’m the founder of Snowball Creations. We do paid ads for businesses and are on a mission to make the world a better place.
You can take a look at a video of me speaking about this target ROAS ad campaign topic here on our YouTube channel. And if you do like content that aims to help with running PPC campaigns, consider subscribing to our YouTube channel. We regularly upload content packed full of Google Ads tips to help our audience get the most out of their Google Ads budget and bidding strategy.
A Small Disclaimer
Before we delve into my Google Ads guide for super high ROAS, I want to make it clear that 46x ROAS is difficult to both achieve and maintain. It is very far above the average ROAS. Even for this particular client, it’s not likely that their ROAS will stay at 46x forever, fluctuation is normal.
Another consideration is that a high target ROAS is not always the most important factor when it comes to your ads and your bidding strategy. Sometimes it’s better to shoot for a lower target ROAS in favour of a high quantity of sales.
This 46x ROAS client is making millions in revenue per year from their ads. So it’s no small venture. We’re not talking about spending £1 and getting £46 back. Ultimately though, if we wanted to push their campaigns and revenue further, we would probably need to reduce the target ROAS.
That said, even if you manage to achieve half of this or even a quarter, you are on to a definite winner.
My Google Ads Guide For High ROAS: Eight Rules
OK, let’s get into it. Here is my checklist of eight rules to follow to maximise your chances of generating a high return on ad spend:
#1 – Invest Your Ad Spend Seriously
I’ve worked with a lot of small businesses’ PPC campaigns. Unfortunately, I’ve noticed that investing seriously is something that many small businesses struggle with.
At the end of the day, paid ads is a money game. You need to spend money to make money. This is especially true with Google Ads. The reason I mention Google Ads, in particular, is that they generally have a higher cost-per-click.
However, Google Ads does bring higher buying intent and conversion value too. This means you get more of a return on your investment. But the bottom line is you need to pay more towards your target ROAS bidding strategy to reap those benefits.
Another reason why it’s better to invest seriously in your bidding strategy is that lower ad spend means less data. If you’re only spending £500-£1000 per month on your ads, you will struggle to gather enough data to discover what’s working for you and what you need to change. That data is crucial for finding those hidden gems that offer the best ROAS.
Back to our 46x ROAS client. They are spending many thousands every month on Google Ads to achieve their fantastic return on ad spend. In return, they get high conversion values and sales.
#2 – Invest Consistently in Your Bidding Strategy
This is another factor that contributes to my 46x ROAS client’s amazing success. Consistent investment does not mean investing an amount for just two or three months, or even a year. My 46x ROAS client has spent many thousands of pounds per month consistently for more than five years now. That is what I mean by investing consistently in your bidding strategy.
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Real results from any form of marketing campaign or ad campaign realistically take a long time to achieve. This is especially true with platforms like Google Ads. In my Google Ads experience, I’ve noticed that Google actually rewards this consistent investment strategy.
It’s kind of like a loyalty scheme which Google implements when a Google Ads account remains active for a certain amount of time. I’ve seen that results improve the longer a Google Ads account is used on a consistent basis. Quality scores increase, along with other factors that can improve the results of your Google Ads campaigns. In turn, you will see higher conversion values, along with higher ROAS.
#3 – Up Your Search Term Game
The search terms you select for your Google Ad and ad copy can make or break your PPC campaign. As such, number three on my checklist for getting high returns on ad spend is to up your Google search term game. It should be the best it could possibly be.
It is one of the most important parts of running a Google Ads campaign. It is essentially looking at the keywords in your campaign and adjusting them to reflect relevant searches. This will help Google to display your ads in front of your target audience.
Let’s say you have a waste management company – like our 46x ROAS client. You go into your campaign details from your Google Ads dashboard and the keywords you have set are “waste management service in London”. But, when you look at the search terms (the terms that people search for), you can see that people are looking up “how to set up a waste management service in London”.
As you can probably guess, these people are not going to be a customer of this company. In fact, they are trying to learn how to become your competitor. Therefore, they are not your target audience. As such, you would set that search term as a negative keyword or keyword term.
As well as discovering negative keywords, you may discover that there are keywords that would work well for your campaign and bidding strategy. In that case, you can add them to your paid advertising campaigns. Doing this regularly can give you valuable insights into top-performing target keywords. It can also save you a lot of money. You will avoid pointless clicks by weeding out bad keyword choices.
This process gives you greater control over the keywords that work well. It will enable you to sort your keywords into ad groups and create more specific ads for those keywords. This means that your ads will be far more targeted and people will be more likely to travel through your now keyword-specific and well-targeted funnel.
To get the most out of your PPC ads, you should be doing this every week. Or, if your budget allows it, every day.
#4 – Constantly Iterate Based on Google Ads Account Data
This is a broad point. We’ve done a lot of this with our 46x ROAS client. It can happen in many different formats. Basically, you need to always be analysing your conversion data. This will help you perfect your conversion value and overall search engine campaigns.
You will likely have multiple campaigns or ads running at the same time. You will have different locations for your ads, and they will be shown at different times of the day. Constantly iterating means constantly testing and playing with all the different elements and factors that make up your Google Ads campaigns.
The idea is to search for opportunities within campaigns to increase the marketing campaigns’ success. For example, if your budget decreases you could stop your ads from displaying at the times of day that your campaign generates lower conversions. Therefore, you are only running your ads at times when the conversion volume is higher.
There are loads of ways you can go with this and mix up your bidding strategies. If you’d like to know more, we do a lot of videos that cover things like this. Or, you can get in touch for additional help.
#5 – Have a Website That Converts
This is a big one. Ultimately, your ad campaigns will only get you so far on their own. For obvious reasons, it’s super important that your landing page and website are actually converting well. Our 46x ROAS in the waste management industry has got an excellent landing page conversion rate, which is partly why they are so successful.
We’ve also worked on many projects together to further improve their landing page conversion rate. We have different versions of landing pages and have A/B tested those pages as experiments in Google Ads. We’ve put a lot of work into developing the website and its content to maximise conversions.
So how does this work in practice?
Well, let’s say your cost-per-click is £1 and you spend £100 to get 100 website clicks. If you can convert 10% of those clicks then the cost for each lead is dramatically less than, for example, 1 in 100. Therefore, your Google Ads budget will stretch considerably further. And, your ROAS will be higher.
#6 – Turn Leads Into Sales
What percentage of your leads, such as making a phone call or filling in a form, turn into actual sales? For our 46x ROAS company, this is around 50%. This is an excellent percentage and a good target for many businesses. Obviously, this percentage can vary quite a lot across industries though.
But, if you can achieve this target, then your ROAS is going to be much higher. Although I’m talking about a B2B here, the principle is pretty much the same across B2C as well, including eCommerce.
You might have created the best ads with enticing ad copy and compelling landing pages. If you don’t close the deal when you’ve had that phone call or someone has filled in that form, you won’t make a profit.
You need to come up with ways to not only hook your audience to gain that click but also to make a purchase.
#7 – Product Market Fit
Part of your target ROAS bidding strategy is ensuring you’ve got a good product & market fit. Talking some more about our 46x ROAS client. First of all, it’s clear that waste management is not what most would consider a glamorous industry. However, they have successfully identified how horrendous the service in this industry can be. So, they’ve worked on improving the service experience for clients.
Our 46x ROAS use hooks within their ads that they know reflect what their customers want. They nail it. The result is excellent ad click-through rates, conversion value, leads, and sales. All of these factors are due to a strong product market fit. And, in turn, a high target ROAS.
#8 – Have Strong Business Metrics
If you’re aiming for a super-high target ROAS on your Google Ads, it is essential that you have really strong business metrics. This includes a high average order value. If your average order value is a couple of pounds, it is going to be difficult to get Google Ads to work in your favour. You would have to have a really low cost per click to hit a high target ROAS, which is not very likely.
The second strong business metric that you need to have is a good lifetime value. This is often very underappreciated. As an agency, we can testify to the importance of lifetime value because clients tend to work with us for a very long time. We do good work for them, their happy with their Google Ads – and their ads on other platforms – so they stay with us for many years. This is the case for our 46x ROAS company.
This is the same principle for many other businesses. If you have an eCommerce store, for example, you may get 1 repeat customer per 10. This means that if you make a sale for £50, that conversion value is actually £55 when you factor in this repeat purchase.
Summary
That is my eight-point checklist for generating high target ROAS from your Google Ads. Combine these points to get the most out of Google Ads and your other PPC campaigns. Even though our client’s 46x ROAS probably won’t last forever, it is still an amazing result.
In short, don’t be afraid to aim big and establish a high target ROAS.
You might be struggling at the moment. Perhaps the 1x ROAS campaign, have low-performing ads & those keywords needed a fresh, maybe is your landing page. My hope is that adopting even just some of the points in this article will push your business, and every single campaign, to a higher level.
Which do you think is your weakest point on my list? Comment below and let me know.
If you found this article helpful for achieving your target ROAS, you might want to read some of our other blog posts about Google Ads, CPC bids, and bidding strategies. We post regularly, so be sure to check in again.
If you’re struggling to get your Google Ads off the ground, we can help. Schedule a call with us or send us an email to talk through strategies for running ad campaigns? As masters of paid advertising, we can discuss how we can help Snowball your ads and generate higher target ROAS.