Facebook ads offer a vast variety of campaign objectives and bidding strategies. As a Digital marketer, you need to select the bidding strategy based on your objective such as increasing total purchases, getting more leads, or increasing brand awareness. But in reality, the most common bidding strategy is automated bidding which is the default bidding option Facebook has.
In fact, despite all the challenges Facebook marketers face due to tracking issues and high competition, SneakerTub managed to double its top line while understanding the right bidding strategy and applying data-driven recommendations. Read the SneakerTub success story here.
What is the minimum RoAS campaign?
Performance marketers are always looking to maximize returns from Facebook ads. The Minimum RoAS bidding strategy is a great way to maximize your return for every dollar you spend. This bidding strategy is suitable for achieving breakeven from your Facebook ads.
Your Facebook pixel should track purchase value to be eligible for the minimum RoAS bidding strategy, thus it gives more control over the purchase value that you generate from ads rather than the number of transactions.
The main difference with the minimum RoAS bidding strategy compared to other bidding strategies are that you have the option to set the minimum RoAS target for your campaigns. By setting the minimum RoAS you comminute the RoAS you need from Facebook ads.
What are the limitations of minimum RoAS?
1. Setting up unrealistic minimum RoAS
The first mistake performance marketers are making is that they set an unrealistic target for RoAS. In this case, if Facebook ads cannot reach your RoAS target, then ad delivery may stop; does not aim to deliver your budget in full. When this happens, you need to reduce the target RoAS and allow the algorithm to get enough conversions to learn and optimize its targeting algorithm. Once the campaign has enough conversions, you can increase the minimum RoAS bit by bit.
2. Hitting budget limitations with a profitable RoAS
After some time, you should be able to balance the RoAS and the conversions. But the second challenge performance marketers face is budget limitations. Even though they allocate a significant budget to the campaign, it won’t utilise the full budget. The main reason is that Facebook is unable to find prospects to achieve the given RoAS target.
How to expand the minimum RoAS campaign?
Spending limits totally depend on the audience targeting of your campaigns. The targeted audience should have a high propensity to buy, and it should be large enough to generate enough conversions to achieve the given RoAS target.
1. Target highly probable customers
The targeted campaign should have no more than 6 ad sets as per the Facebook guide. This gives the Facebook algorithm to learn and deliver the best results. If you set the campaign with CBO enabled, you will have to worry less about the overlap between ad sets. What Facebook says is that they can manage the overlap and shift the budget accordingly for CBO enabled campaigns. The primary focus should be to target highly probable customers with the 6 ad sets.
Use Alavi Insight to find interests belonging to your customers and thus increase the success rate of your campaigns. After getting successful RoAs with this campaign, you will still have the spending issue as Facebook can’t spend beyond a certain limit to achieve the given RoAS. In this case, you need to launch the second campaign with limited overlapped audiences.
2. Scale with new campaigns
Since 6 ad sets are recommended for a campaign, you can go for a second and third campaign, but the most important factor is that you shouldn’t have a high overlap with the first campaign. While you are launching ad sets for the second campaign make sure that audiences have less overlap with the first campaign. This allows Facebook to target new people and bring the expected RoAS. Finding audiences with less overlap is nearly impossible with features available on Facebook.
Alavi insight has a feature where you can find audiences relevant to your customers and find the overlap with your existing ad sets. It will save your research time and increase the effectiveness of your targeting.
- Create a CBO campaign with minimum RoAS and with 6 ad sets.
- Find a highly probable audience to target via the 6 ad sets.
- Set a realistic minimum RoAS. Initially set a lower number to allow the Campaign to generate enough conversions to learn. Later increase the minimum RoAS bit by bit.
- Create the second campaign and add 6 ad sets with limited overlapped audiences compared to the first campaign.
- Use Alavi's insight to find new audiences with limited overall to existing ad sets.