The conversion rate has a long story compared to RoAS or return on spend. Ad platforms recently introduced RoAS to measure the profitability of your ad spend. Prior to RoAS, conversion rate and the CPA were used widely to measure the success of a campaign. Lead gen businesses can rely only on conversion rate or CPA unless you assign different revenue values to your leads. Ecommerce businesses that have products with almost the same price or similar AOV can rely on CPA or conversion rates. Other businesses should focus on RoAS to make sure they are making money profitably. Ready our step by step guide to scaling with minimum RoAs bidding strategy. Read our step by step guide to scaling with minimum RoAs bidding strategy
Why conversion rate?
Conversion rate helps you to understand the percentage of people converted on your site or your campaign. So, if you have decided to improve the conversion rate, you can bring more transactions from the same people visiting your website.
You can look at ways to improve conversion rates from awareness to existing customers. Ad platforms evolved beyond a certain limit to improve the conversion rate by themselves. So as digital marketers we can support platforms by helping them to personalize the entire customer journey to improve the conversion rate.
Improve targeting to reach different cohorts
Understanding your customers is key to delivering a personalized experience. First, understand who are the people that are more likely to convert and what they like.
Once you understand your customer’s wants and needs you can investigate further to discover the emotional motives behind their requirement. For example, people use Facebook to see information related to friends and family, but the underlying emotion is boredom.
Personalize ad copies
After realizing the customer's intent, Ad copies can be personalized to attract their persona. Optimize ad text, USPs, CTAs and images/videos to attract potential customers. People living far away from the city are concerned about the delivery time and the return policies. So, you will have to mention the value proposition based on their pain points.
Based on Alavi's insights, the Yoga mat company can describe the low weight, travel-friendliness and other travel-related USPs. Images can be personalized to show a person practicing yoga, sitting in a nice location or in a hotel.
Experiment with multiple types of ads
There are so many ad types supported by Facebook. Experiment and identify different ad types that resonate with your offering. For example, single image ads are working for a sale campaign and carousel ads are working for products, while boosted albums are working well for fashion collection launches.
Personalize landing pages
Based on the audience you are targeting, the landing pages need to be personalized. The traveller should see images and benefits related to travelling.
A fashion company found that younger audiences go into more modern dresses while older people explore more conservative dresses. Even though you have one category page for dresses you must sort/filter it depending on the audience or demography.
Facebook stopped showing age and gender breakdown for campaigns. Alavi has solved this problem, and you can now see the age and gender breakdown for any given interest/behaviour. Whenever you launch a new ad set, make sure that you use only a relevant age/gender.
- Identify potential customers by persona or cohorts
- Understand their needs and wants
- Personalize ads and landing pages.