Why ROAs is Outdated: Focus on Intent Signals for Ad Performance

– ROAs is considered outdated as a KPI and may not exist in the same capacity in the future.
– Intent signals should be used to determine the performance of ads instead of relying solely on ROAs.
– Quality of audience and optimizing touchpoints in the customer journey are important for success in ecommerce.Focus on understanding the quality of the audience and optimizing the customer journey touchpoints to increase conversion rates and maximize returns.ROAS is outdated as a KPI. I don’t think it will exist in the same capacity as it does currently. Blended ROAS will remain as just a sanity check, but to tell if an ad is really performing, we should start looking at intent signals instead. This is a snapshot of three different campaigns, where these same stats are broken down by ad set and by ad when you dive deeper. (We also have an ad recommendation engine that does this evaluation automatically, but it’s better to first understand how it all fits together.) So we’re looking at the entire customer journey relative to intent. Click on an ad, did the user view an offer via popup or bounce (bounce rate), of those that viewed, how many subscribed, what was that percentage, what was the cost of that subscriber, how many of the orders were subscription orders, what was the conversion rate of a subscription to sale, what were the total orders. ROAS is a factor of the order size, that’s going to vary a lot by the tolerance of a new customer trying a brand. AOV on the first order really isn’t something you should try to control, instead the focus should be relentlessly on getting the product in hands even if it’s just your flagship one. When I look at these stats, I’m looking for a high subscription rate matched with a high subscription to sale rate. It doesn’t matter how many subscriptions I get if they aren’t converting. To me, the quality of the audience is all about understanding the funnel and looking at the touchpoints that exist and optimizing them one at a time. Yes, we also look at all the customer journey touchpoints on a website with breakdowns of customer questions and even look across all your ads to prioritize where to invest your time. The problem is we’re all about attribution in e-commerce instead of understanding the quality of the audience and the touchpoints that impact ALL ATTRIBUTION and success. Too many people are hyper-focused on a bunch of KPIs that can be altered at will. It’s not complicated, but it does require an actual understanding of the business to be able to create these metrics. Behind every subscription is a data pattern that is leveraged to increase the conversion of the subscriber. Conversion is a factor of proper messaging relating to the intent of the visitor. Not everyone will subscribe, but we should be doing our best to collect data when they do to maximize our returns while providing a great customer experience. Use data to build journeys that allow you to focus on one to many.#marketing #ecommerce #datahttps://www.linkedin.com/in/jivanco

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