Black Friday Cyber Monday, commonly known as BFCM, is one of the biggest shopping events of the year. It presents a prime opportunity for businesses to maximize their sales and profits through effective advertising campaigns during the holidays.
However, to truly capitalize on this event, it is crucial to understand and master the art of BFCM ads.
In this comprehensive guide, we will walk you through the step-by-step process of creating BFCM ads that yield maximum Return on Ad Spend (ROAS).
What is ROAS and why is it important for your BFCM ads?
ROAS stands for Return on Advertising Spend, and it is a key metric used in e-commerce to measure the effectiveness of advertising campaigns.
Put simply, ROAS helps you understand how much revenue you generate for every dollar spent on advertising. For example, if you have a ROAS of 5:1, it means that for every $1 you spend on advertising, you generate $5 in revenue.
A higher ROAS indicates that your advertising efforts are efficient and profitable, while a lower ROAS may signal the need to optimize your campaigns or reassess your targeting strategies. Monitoring and optimizing your ROAS is crucial for ensuring that your advertising budget is being used effectively to drive sales and maximize your return on investment in marketing activities.
Determining an average ROAS for e-commerce can be challenging as it varies significantly based on product type, target audience, and competition. However, on average, an ROAS of 2.87 or 287% return on investment is commonly seen. Different industries may slightly deviate from this average, such as baby products averaging around 3.71 and health and beauty at 2.82. These variations highlight the importance of considering industry-specific factors when evaluating ROAS.
How to calculate ROAS
Calculating ROAS is straightforward. Simply divide the revenue generated by your ad campaign by the total cost of the campaign and multiply the result by 100.
ROAS =total revenue generatedtotal money spent
For example, if your BFCM ads generated $10,000 in revenue and you spent $2,000 on the campaign, your ROAS would be 500% ($10,000 / $2,000 x 100).
Key factors for a successful BFCM ads campaign
To ensure a successful BFCM ads campaign, there are several key factors to consider:
1. Setting goals and objectives for your BFCM ads
Before diving into creating your BFCM ads, it is essential to define your goals and objectives. Are you aiming to increase sales, drive website traffic, or boost brand awareness?
Clearly outlining your objectives will help you tailor your ads accordingly and measure their success accurately.
2. Conducting keyword research for BFCM ads
Keyword research is a crucial step in optimizing your BFCM ads for maximum visibility and relevance. Identify keywords that are highly searched for during the BFCM period and incorporate them strategically into your ad copy and targeting.
It can be tempting to target trending or broad keywords with high search volumes in your advertising campaigns. However, by bidding on these keywords, you run the risk of spending a significant amount of money and getting lost among countless other search results.
To begin, focus on identifying specific search terms that are relevant to your brand. For instance, if you operate a chain of fashion stores offering sustainable clothing, it is advisable to target keywords related to those specific areas, like "slow fashion" or "organic cotton."
If you have physical locations, it is essential to target location-specific keywords. Studies have shown that 96% of people use the internet to search for local businesses.
For example, if your brand has locations across Delhi, India it is essential to target keywords that are specific to the neighborhoods your stores are in. Consider bidding on keywords such as "sustainable fashion in New York" and "homegrown sustainable fashion brands near New York Towers" to capture local search traffic.
3. Play around with ad placement(s)
Different ad placements can yield varying results. When running ad campaigns on media or e-commerce sites, it is beneficial to experiment with various ad formats such as banner ads, landing pages, skins, or pop-ups. This allows you to find the most effective format for your target audience.
Experiment with various platforms such as Google Ads, Facebook Ads, and Instagram Ads to find the most effective placement for your BFCM ads.
7 Most Used Platforms and Their Average ROAS
1. Google Ads Average ROAS: 13.76
2. Facebook Ads Average ROAS: 10.68
3. Instagram Ads Average ROAS: 8.83
4. Amazon Ads Average ROAS: 7.95
5. Twitter Ads Average ROAS: 2.7
6. Pinterest Ads Average ROAS: 2.7
7. TikTok Ads Average ROAS: 2.5
Strategic ad placement on social sites can also have a positive impact on your ROAS. Here are some key considerations:
- Newsfeed: Promoted posts and ads that appear directly in newsfeeds tend to receive more visibility and often achieve better conversion rates compared to other ad formats.
- In-Stream Ads: In-video ads can be placed as pre-roll (before the main content) or mid-roll (during the video). Pre-roll ads are usually around 25% cheaper than mid-roll ads, but their effectiveness depends on whether they are skippable and the engagement level of the video. If the video is not engaging or too long, viewers may skip or not reach the mid-roll ad.
- Mobile-Only Ads: Targeting mobile-only ads on popular platforms like Facebook and Instagram can significantly enhance visibility.
Monitor the performance of your ads on different platforms and optimize accordingly. By experimenting with various ad formats and strategically placing your ads on social sites, you can maximize your visibility and potentially improve your ROAS.
4. Targeting the right audience for BFCM ads
Targeting the right audience is paramount to the success of your BFCM ads. Utilize demographic targeting, interest targeting, and behavior targeting to ensure your ads reach the most relevant audience.
Facebook, for instance, offers businesses a variety of audience parameters to choose from, such as location, age, relationship status, and interests. By targeting specific subgroups of your audience, you can create ads that are more relevant to their interests, increasing the chances of converting them into customers.
In addition to targeting based on demographics, Facebook also offers options to target based on behaviors and interests. By identifying what interests a potential customer, you can tailor your ads to their specific needs and preferences. For example, if you sell organic skincare products, you can target people who have expressed an interest in natural and organic beauty products.
Hyper-local marketing goes one step further by targeting specific areas or neighborhoods. This approach can be effective for businesses with physical stores who want to drive foot traffic or promote a local event. Facebook also offers the option to target users within a specific radius of your location, making it easier to reach potential customers who live or work nearby.
To effectively reach potential customers in your local area, marketers can leverage Google's Local Campaigns feature as well. Local Campaigns is a type of Google advertising campaign designed specifically to promote products and services to users who are near your physical locations.
5. Brind down ad development costs
Developing high-quality ads can be costly, especially during the BFCM period. To maximize your ROAS, explore cost-effective alternatives such as user-generated content, influencer partnerships, or leveraging existing assets. Creativity and resourcefulness can help you create impactful ads without breaking the bank.
Furthemore, identify underperforming campaigns that are not generating sufficient revenue. It is recommended to allocate your time, effort, and budget towards the campaigns that are yielding more favorable results and driving higher returns.
Moreover, refining your keywords and target audience can help you maximize your budget by directing your resources towards keywords that have higher potential for ranking and attracting an audience that is more likely to convert. By narrowing down your keywords to those that are more relevant and have higher search volumes, you can save money by focusing on terms that have a higher chance of driving organic traffic and conversions.
Additionally, filtering and optimizing your target audience based on demographics, interests, and behaviors can help you reach the most receptive and engaged audience who are more likely to convert, ensuring a more efficient utilization of your advertising budget.
6. Use Target ROAS in Google
Google provides the flexibility to set a target Return on Ad Spend (ROAS) when setting up ad campaigns.
When you specify a target ROAS, Google's algorithm adjusts your bids to maximize conversions and achieve the set ROAS within the confines of your budget. This automated bidding strategy allows for more efficient allocation of your advertising budget and helps drive higher returns on your ad spend.
It's worth noting that you can set a target ROAS for an individual campaign or for a portfolio of campaigns. This flexibility enables you to tailor your ROAS targets based on specific campaign goals or across multiple campaigns to achieve your desired overall performance.
7. Look into issues considered unrelated to your ads
If your BFCM ads are not performing as expected, it is crucial to investigate potential issues unrelated to your ads. Check your website's loading speed, user experience, and overall customer journey. A seamless user experience can significantly impact your ROAS during the BFCM period.
Creative marketing ideas for BFCM beyond traditional ads
While traditional ads play a vital role in BFCM marketing, exploring creative marketing ideas can give you an edge over your competitors. Consider the following ideas to enhance your BFCM campaigns:
- Flash Sales: Offer limited-time discounts or exclusive deals during specific time windows to create a sense of urgency and boost sales.
- Social Media Contests: Engage your audience by hosting contests on social media platforms, encouraging user-generated content, and offering prizes or discounts to winners.
- Email Marketing: Leverage your email subscriber list by sending targeted BFCM promotions and personalized offers to drive conversions.
- Influencer Collaborations: Partner with influencers in your niche to promote your products or services and reach a wider audience.
- Loyalty Programs: Reward your loyal customers with exclusive perks, early access to deals, or additional discounts during the BFCM period.
Conclusion: Final tips and takeaways for mastering BFCM ads
Mastering BFCM ads requires careful planning, strategic execution, and continuous optimization. Remember to analyze the data, learn from your campaigns, and adapt your strategies for future success.
With these tips and takeaways, you are well on your way to mastering BFCM ads and achieving exceptional results for your business.
Ready to boost your BFCM ads performance and maximize your ROAS? Contact us today to discuss how our expert team can help you achieve your BFCM marketing goals.
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