According to economists, the era of cheap money is over. High inflation throughout 2022 means quantitative easing and ultra-low interest rates are a relic of the past. We’ve all got to tighten our belts now.
There are a few ways that marketing teams can go here. They can:
a) Do what they always do, but at a smaller scale with a reduced budget
b) Find ways to work around their budget by doing more with less.
Amanda AI has been on a mission to help teams drive greater value from their advertising budgets over the last few years. While some businesses are still floundering around, lost in vanity metrics like follows and web traffic, we prefer to focus on metrics like ROI and ROAS.
If you’re using Meta Ads but are unhappy with your performance, it might be time to get back to the drawing board.
Here are some tips to improve your Meta Ads ROI so you can wring the most from your budget throughout 2023.
1. Understand the importance of ad quality
At the end of 2021, Meta replaced the Ad Relevancy Score metric with Ad Quality. It measures how your ads perform compared to ads targeting the same audience.
The important thing for marketing teams to consider here is that Ad Quality affects ad bidding and delivery. Or, to put it another way, if Meta perceives your ads as high quality, they get shown to more users at a lower cost.
Meta’s Ad Quality diagnostics tool can provide you with an analysis of your ad, broken down into three characteristics that it compares against similar ads:
- Quality
- Engagement
- Conversion
There are lots of different factors that determine how your ads shape up against your competitors. Things to think about are ad copy and creatives, ad fatigue, poor targeting, misleading ads, or landing pages poorly aligned with your ads.
When Meta auctions ad space, it considers a few different factors. They are the following:
- Amount of money you willing to pay
- The likelihood that a particular audience member will convert
- Quality of your ad
So whether you use a manual or automated bidding strategy, one way to ensure your ads cost less — and therefore produce a more substantial ROI or ROAS — is to boost your ad quality.
2. More creativity = more ROI
In 2022, Meta partnered with the market research firm Nepa to explore the impact of creatives on ads. Their research suggests that better creatives lower the cost of:
- Clicks by 19%
- Conversions by 21%
- App installs by 27%
Now, in many ways, this shouldn’t be surprising news to anyone. After all, if creatives aren’t affecting ROI, then what exactly are they doing? But the specifics of what they recommended might be attractive to Meta Ad customers struggling to make their investment pay off.
Some simple tips that they suggested, based on their findings, were:
- Use a mix of images and videos (3-5) and a few different headlines
- Ensure you feature your brand in your videos and images
- Choose authentic over polished creatives
- Keep your ad copy tight, punchy, and under 280 characters.
So, again, if you want a better return on your Meta ad budget, cutting approximately 20% of your spending by applying these tips could be an excellent place to start.
3. Reduce ad fatigue
Ad fatigue is a real thing. Known as creative fatigue by Meta, it describes the phenomena that occur when your target audience sees the same ad repeatedly and becomes less likely to engage.
The problem occurs because you are spending more money to target these people, and they’re less likely to convert. There are even scenarios where the ads become more expensive to show the 2nd, 3rd, 4th, 5th, etc., time. That’s the absolute opposite of what you want to achieve.
If you are running manual ads in Meta, you may have gotten a notification about the perils of creative fatigue. Now, you can carefully monitor the “frequency” of your ads in Ads Manager. This option ensures that the same user hasn’t shown the ad more than three times.
But the real remedy is to mix up your ad. Not showing a range of creatives is a missed opportunity. Fresh copy is a chance to persuade your audience in more varied ways, while new creatives should demonstrate distinct facets of your product or service.
4. Automate ad creation, delivery, and bidding
Sometimes, we can only move forward by giving up a little control. This fact is true in life and business. While it’s not always easy, it can be the optimal move.
At Amanda AI, we love optimal moves. We built our advertising robot to take the headache and heartache out of sales and marketing by taking on the burden of ad optimization.
Meta has Optimization for Ad Delivery. It’s good at helping your drive awareness, reach, traffic, and even conversions. However, the problem is that many of your rivals are already using it. That means you’re at a disadvantage if you’re not using it. But it also means that if you do use it, you don’t gain an edge.
Amanda AI for Meta is that edge. It works with the existing Meta algorithms and helps you deliver a better ROI on your marketing spend.
Our robot can help you:
- Save time by automating ad creation
- Pick the best times and platforms to deliver your ads
- Help your win ad auctions at a low price
Conclusion
Marketing budgets are about to come under a whole lot of scrutiny. You need to justify your spending to protect your budget from being slashed. Improving your ROI on sales and marketing on Meta is your chance. Thankfully, we built our trusty robot to do just that. Book a meeting with us today to see what our robot can do for your ROI. There’s no time better than now.
