What can I do to help increase ROAS of my campaigns?
The return on advertising spend, or ROAS, is calculated by dividing the total sales by the total spend on the advertising campaign. To make sure advertising is helping drive your sales, you want this number to be high.
First, check the search term report to identify keywords and products that are resulting in higher sales and conversion rate. Then increase the bid on those and add them as exact match type to optimize.
Also, identify the keywords and products with low sales and conversion rates and decrease your bids on them.
And again, this is another opportunity for you to consider adding negative targeting to exclude keywords and products that are not relevant for your campaign, which can mean you’ll spend less budget on placements that are not relevant to your brand. More on negative targeting in the Success tips 4: Include negative targeting section of this guide.
Make sure you also check the ASINs you’re advertising to confirm they’re aligned to your campaign’s goals and have good product detail pages. Once you understand how they’re performing, consider deleting or pausing ASINs that are not driving your goals and dialling up on the ones that are performing best.
