If your ROAS (return on ad spend = revenue ÷ ad spend) is low, ask yourself these questions:
Which data source am I using?
Facebook, Shopify, and Google Analytics are flawed. Their data often lags up to three days and fails to attribute a lot of purchases. To discover your true ROAS, check the Preflect app or Preflect reporting emails (sent from [email protected]).
How long have I been running Preflect ads?
Campaigns have to run completely uninterrupted for 3-4 weeks. It's a Facebook rule that you have to hit 50 Facebook-tracked conversions without any changes to optimize and perform well. If you pause ads, create or edit them, or change your budget, you completely reset the optimization process and lose your progress.
ROAS is often low during this learning and optimization phase, so it's very important to be patient and let your ads run without any interference at all.
The only time that you should interrupt this learning phase is if all three of these apply to you: (1) you've been running ads for at least 7 days, (2) your ROAS is below 1x, and (3) your ad click-through-rates are below 1.5%. If your Preflect data shows that all three of these apply to you, then, in this case, it would be worth resetting optimization to upload and deploy a new batch of ad creatives.
Am I running non-Preflect ads?
Read our targeting guide to learn why running non-Preflect ads reduces your entire ad account's ROAS. Due to iOS updates and Facebook changes, it is no longer possible to run non-Preflect ads alongside Preflect ads. Please also note that results are not comparable due to the way Facebook optimizes multiple campaigns and ad sets.
Note: running non-Preflect ads in a separate ad account is even worse for optimization because you're bidding against yourself in every auction, increasing your costs and reducing your ROAS, without any benefits.
Are my ads getting good CTR rates?
Each individual ad that has been running for 7+ days, has a Click Through Rate (CTR) percentage. This is the percentage of people who click on your ad after seeing the ad. You can improve this metric by creating engaging ad images and videos.
The most successful Preflect users average a 3% link-click-through rate. If your ads are earning a lower percentage, then you should delete ads recommended to be replaced and test new ad images and videos instead.
Is my website conversion rate good?
Your conversion rate is the percentage of people who buy your products after clicking on your ads. So if you have high CTR scores, but low ROAS, this means your conversion rates are low. You can improve this metric by optimizing your store. To learn how, read Shopify's guide or contact Preflect support.
A quick, easy way to improve your conversion percentage is to offer a great discount code. Beyond that, it is important that you invest time and resources into further improving your store. Onsite conversion rate is one of the most important factors in e-commerce success.
Is my average order value high enough?
Your average order value is the typical amount that customers spend when they shop at your store. You can improve your average order value by bundling your products into higher-priced bundles, and offering discounts on the bundles. For example, if you sell candles for $20 each, then you should try bundling 3 candles for $50 (save $10).
The most successful Preflect users average a $75 average order value. You can still be successful with an average order value as low as $30 if your customers come back and buy from you frequently, and your conversion rate is high. And, of course, many successful users have average order values well into the $100s! Typically, the higher, the better.