If you are running an e-commerce store, you know that you are going to need to advertise at some point. No matter how much organic traffic or social media Klout you have, if you want to scale, you have to run ads. When you run ads, you want to make sure that you are getting the best ROAS possible, so we can funnel money back into ads and make MORE money!
So how do you get an amazing ROAS? The first thing you need to do is to make sure that when people land on your page after clicking an ad is that they convert. The best way to boost your conversions is with social proof. This post will show you how!
What is ROAS?
Table of Contents
ROAS is an acronym for “Return on Ad Spend“. It is a marketing metric that measures how useful and efficient digital advertising campaign is. Basically, it lets you know if the amount of money you put into the ad is benefitting you enough to make it worth it.
How do You Calculate ROAS?
Formula to calculate your ROAS goes like this:
ROAS = Revenue You Made Online / Cost of Ads.
You want to be looking at this number regularly. On platforms like Facebook, there is a handy ROAS column that you can in your Ads Manager!
What are the PPC campaigns?
PPC Campaigns is an acronym for “pay-per-click“. This is a model or type of online internet marketing where an advertiser (you) pays a fee each time their ad gets clicked on. It’s like buying visits to your site, rather than trying to earn them on your own through search engine optimization and social media growth. Advertising in search engines like Google and Bing is actually one of the most popular forms of PPC.
You can use Google Ads for your e-commerce business to get your information out there and connect with the people who are looking for your product right away!
Most people who will be interacting with your business via search will be asking questions related to the problem your product solves or looking for comparisons for similar products.
For example, if you sell a hairbrush, people may be searching for things like
- Best hairbrush for black hair
- Best hairbrush for oil hair
- Difference between a natural bristle brush and a plastic brush
- Top hair brushes for long hair
If you have put the effort into SEO, you may rank at the top for these search terms. However, if you are a new store, you may be on the 10th page of Google, and no one is looking for you there.
When you use Google Ads, your ads are put in front of customers when they’re searching for the results that matter to a business like yours. The best part about PPC on Google is that you only have to pay for clicks to your website or calls to your business-which are direct results for your business.
Once people click-through to your website from a well placed Google Ad, you have to make sure they convert. One of the best ways to convert people is with a social proof app!
We tend to like what other people like due to our social nature. So use this to your advantage as an online business owner to add social proof to your home page, landing page, or product page and increase ROAS. In this post, we’ll talk about the particular types of social proof you can use in tandem with Google Ads that can also apply to many other platforms that pair well with social proof.
Google lets you include things in your ads like your seller rating. The seller rating is a 5-star scale that shows your recent reviews as long as you have 30 reviews within the last 12 months and an average 3.5 overall rating. Reviews and ratings are amazing for social proof and having a high seller rating will help your click-through rate (CTR) because you appear trustworthy.
Having a great CTR will lower your overall cost of advertising because Google will deliver your ads to more people to make more money off clicks! Even if you don’t run ads, having a higher seller rating will help your ranking on the search engine which will put your business in front of more and more potential customers.
Make sure your ad’s landing page looks good and is fully functional and has a ton of social proof. You can use things like
- As Seen On Logo Banners to establish legitimacy
- Testimonials and Reviews to establish brand trust
- ‘Number of People Watching’ alerts on your product page to create urgency
Remember, your ads landing page is the first impression visitors will get of your site and your brand and you need to convert them before they click away! The best way to increase conversions when you get ad clicks is by creating the perfect landing page with strong social proof and a great call to action. That is the winning formula to convert visitors into customers and get a better ROAS.
We tend to trust others when we read through reviews, and that’s even more true with authority figures’ opinions. If an expert has recommended your product or service mention it in your ad. You can even mention any official sponsors or partners you have as that improves the credibility of your business.
The recommendations don’t have to be huge, even if a local business has recommended you, include it because this can be helpful in converting local prospects.
If you’re able to increase the number of conversions on your site page using social proof, you’ll get a better ROAS.
This means the money that you put into advertising is paying off and getting you higher returns. The costs are low enough that the benefits make it worth it! Simply use a digital advertising service like Google Ads and watch the money come in!