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Facebook Ads – Past Experience and ROAS
We are looking at working with a Video Production & Social Media Marketing Agency to product a high quality video ad, strategy, full top to bottoms funnel and all create assets to go along with it. This is be on facebook, but we would also look to replicate this on the display network.
They are not particularly cheap, but from seeing there past examples of work, its worth it. Now they are saying from previous clients and experience they expect to see a 500x to 1600x ROAS. Does this sound like a reasonable expectation.
Having never delved too deep into facebook ads im not sure how realistic this could be.
A little background, we are an only ecom store, with a avg basket value of £30-40, and a relatively short time conversion lag 0-2 days.
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4 Replies
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That sounds highly unlikely. So if you spend $1,000 on ads, they say you’ll get a minimum $500K in sales. Let’s say CPC is $1.00 to make the math simple. That’s 1,000 clicks and let’s say that 10% of the clicks convert to a sale — which would be really good. That means each of those 100 sales generates $5,000 in revenue. That’s a long, long, long way from your avg. basket value of L30-40.
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Do their other clients have a similar AOV? Unless they only do remarketing, then maybe they can do 16x. Otherwise, I think they are selling you the dream. Facebook is a great channel but few brands get double digit results month in and month out.
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Yeah 5-16x is retargeting heavy or an extreme example.
You can’t be compared to other clients because different companies have different traffic, channels, etc even if you’re the same industry.
What’s your average monthly users and revenue today? Practically no advertisers get that and if you could, you’d already see similar performance on organic and other channels.
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Do you know what sort of attribution you’re working with?
If you’re using some view-based attribution & retargeting, then it might include a lot of repeat buyers and sharply increase perceived RoAS.
Looking at last non-direct click as well may give a different picture, and will give a lower RoAS value. It’s worth looking at both models to understand how ads perform.
But, if you’re seeing a RoAS of 5x in Google Ads, no reason to believe you can’t see that on FB. 16x sounds pretty ridiculous to me, unless you’re spending seriously low.
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