What’s a good ROAS for retargeting campaigns?
The ROAS of retargeting campaigns will depend on how deep your retargeting audience is.
When you retarget the “hottest” prospects who’ve already interacted with your content and considered buying, your ROAS can be well over 100 percent.
If you’re dipping into only lukewarm audiences – e.g., they’ve only visited your website but haven’t necessarily shown buying intent yet or they’re part of a “similar” or “lookalike” audience – the ROAS will likely be reasonably lower.
Tips to boost retargeting campaign ROAS
Did you know retargeting campaigns can increase sales by as much as 50%?
The challenge, of course, is running campaigns that can adapt to the constant changes of PPC while meeting your target customer where they’re at in their journey.
Not easy, but possible… if you know what to do.
Let’s look at five of them:
Use first-party data
If you have customer lists, upload them to Facebook and Google and use these to do retargeting campaigns.
You can also build Lookalike Audiences in Facebook Ads or Similar Audiences in Google Ads.
Use lists across different channels
One way to use retargeting audiences is to upload customer lists coming from one channel to another.
For example, you can upload a list of customers generated in Google to Facebook, and create a Custom Audience for retargeting and Lookalike Audiences (LAA) to unlock new audiences too.
Save budget by excluding retargeting audiences
When you run marketing campaigns to cold traffic, algorithms may show your ads to users who already engaged with your brand in the past.
While that may lower your CPA, it doesn’t help you reach new audiences.
So exclude remarketing audiences from your cold traffic campaigns.
Make the ad copy specific to the audience you’re using
This will make the message resonate more with your users and assure a higher response.
Allocate 15–20% of your paid campaign budgets to remarketing
Just because you’re targeting a smaller audience doesn’t mean you should give these campaigns a tiny budget.
Give them enough spending by planning for them ahead of time.