In this video, I share an example of a Meta ads campaign with a 27x Return On Ad Spend (ROAS).
This is real, but it requires a ton of context.
Let’s discuss…
The Campaign
I’m running an awareness campaign optimized for reach…
The reason I’m optimizing for reach is because my goal is to reach as many people as possible within a small and relevant audience. I’m targeting a few thousand people on my email list.
There are five different ad sets in this campaign, one for different segments of people on my list.
Each ad is worded slightly differently to be consistent with an email that they would have received from me.
Advantage Campaign Budget is on to distribute a modest $25 daily budget optimally between the five ad sets.
Results
At the time of recording this, I had spent a total of about $220 to generate seven purchases.
The ad promotes a $976 product, so each sale drives up that ROAS. All but one of the reported purchases in Ads Manager are for that product.
Here’s how the conversions break down by attribution setting:
- 1 day view (4)
- 7 day click (3)
Making Sense of the Results
The huge ROAS is due partially to the high price tag on the product. Since I’m only spending $25 per day, every purchase significantly drives up those results.
But most importantly, this is remarketing. I’m targeting the same people who are receiving emails about this product.
The value of view-through conversions is hotly debated among advertisers. In many cases, you can make the case that they contributed to the purchase. If you’re reaching a new audience, they may have later Googled you to find and purchase your product.
Remarketing is different. It certainly is possible that the four view-through conversions were the result of someone who saw the ads and then later converted. But it’s just as likely that these people didn’t even notice the ads that were shown to them. I merely reached these people on the day they received my email and they converted. Those view-through conversions may have happened anyway without my ad.
The click conversions certainly have more value, but even in this case they can be scrutinized. While they clicked and purchased, they also may have eventually converted from my emails. The ad was simply one of the ways that I was reaching them.
What’s the Point?
I still find this campaign valuable because it makes my emails more effective, especially for a high priced product. I wouldn’t do this for a low-ticket product. Even if my ads were the reason that one person converts who wouldn’t have otherwise, it’s valuable. It’s just not 27x ROAS valuable.
Context is important.
Just remember these factors when advertisers brag about ridiculous results from remarketing like this. It’s real and not at the same time.
If you can, ask for the context.
