How to Increase Your ROAS (Return on Ad Spend)

Return on Ad Spend (ROAS) is one of the most critical metrics for any business investing in advertising.

Unlike vanity metrics such as impressions or clicks, ROAS tells you exactly how much revenue you earn for every dollar (or pound) spent on advertising.

For many companies, scaling their business hinges on understanding, monitoring, and increasing ROAS. Whether you’re running social media ads, Google campaigns, or PPC, this guide walks you through practical strategies to maximise your advertising return.

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What is ROAS and Why Does It Matter?

ROAS stands for Return on Ad Spend, and it’s calculated using a simple formula:

ROAS = Revenue from Ads / Cost of Ads

So, if you spend £1,000 on ads and generate £5,000 in revenue, your ROAS is 5:1.

Why It Matters:

• It helps you measure the true profitability of your campaigns
• It allows you to allocate budget more efficiently
• It gives you insight into which ads, audiences, or platforms perform best
• It supports smarter scaling decisions

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1️⃣ Understand Your Break-Even ROAS

Before trying to improve ROAS, you need to know what ROAS keeps you profitable. This is known as break-even ROAS.

How to calculate it:

1. Identify your gross profit margin (after product costs, delivery, etc.)
2. Divide 1 by your gross margin

Example:

• If your margin is 30%, your break-even ROAS is 1 / 0.3 = 3.33
• You need a 3.33 ROAS to break even

Knowing this ensures you never scale campaigns that are technically losing money.

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2️⃣ Target the Right Audience with Precision

One of the fastest ways to increase ROAS is to improve targeting. Broad targeting might increase reach but often wastes budget.

Tactics to improve targeting:

• Use lookalike audiences based on your highest-value customers
• Segment by purchase behaviour, not just demographics
• Retarget users who have engaged with your site but didn’t convert
• Exclude irrelevant audiences using negative targeting

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3️⃣ Optimise Your Ad Creative for Performance

Ad fatigue and poor creative are silent ROAS killers. The better your creative resonates, the higher your conversion rates.

Best Practices:

• Test multiple creative formats (video, carousel, static)
• Make your offer crystal clear in the first 3 seconds
• Use strong calls to action (CTA)
• Refresh creative regularly to prevent fatigue
• Align creative messaging with audience segment

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4️⃣ Improve Your Landing Page Conversion Rates

A killer ad with a poor landing page equals wasted budget. Increasing your landing page conversion by even 10% can dramatically boost ROAS.

Focus Areas:

• Clear headline that matches your ad promise
• Fast loading speed (under 3 seconds)
• Simple, focused page design with one CTA
• Social proof (reviews, testimonials)
• Mobile-first design

Consider A/B testing:

• Headlines
• Button colours
• Page layout
• Offers or discounts

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5️⃣ Use Campaign Budget Optimisation (CBO) Wisely

Platforms like Meta (Facebook/Instagram) allow for Campaign Budget Optimisation (CBO), which lets the algorithm allocate spend to the best-performing ad sets.

Best practice:

• Let the algorithm work, but only after you’ve tested and optimised ad sets
• Avoid forcing budget onto underperforming audiences
• Use CBO once you have enough data for algorithm learning

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6️⃣ Scale the Right Way

Scaling too fast is a common ROAS killer. You need to scale your campaigns incrementally to maintain performance.

Smart Scaling Tips:

• Increase budgets by 10-20% every 48-72 hours
• Duplicate winning ad sets when scaling
• Monitor ROAS daily when scaling
• Consider vertical scaling (higher budget) and horizontal scaling (new audiences)

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7️⃣ Leverage Advanced Retargeting

Retargeting warm audiences — those who know your brand — generally drives higher ROAS than cold traffic.

Retargeting Ideas:

• Cart abandoners within 7 days
• Visitors who spent significant time on your site
• Users who engaged with your social posts
• Existing customers for upsells or cross-sells

Always tailor creative to match the customer’s journey stage.

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8️⃣ Refine Your Attribution Model

Understanding your customer journey is key to accurate ROAS measurement. Using last-click attribution might undervalue your ads’ real performance.

Consider multi-touch attribution or use platform-specific insights like:

• Facebook’s Attribution Setting
• Google Analytics 4 Conversion Paths
• UTM tracking for campaign-specific results

This way, you’ll avoid cutting campaigns that appear weak on surface metrics but actually contribute to conversions.

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9️⃣ Monitor and Adjust Based on Real Data

Don’t set campaigns on autopilot. Monitor daily and optimise based on actual data.

Metrics to watch:

• ROAS (of course)
• Cost per Acquisition (CPA)
• Click-Through Rate (CTR)
• Conversion Rate (CVR)
• Frequency (to prevent fatigue)

Use insights from your analytics to make small adjustments rather than sweeping changes.

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🔟 Work with Performance-Focused Partners

If you lack the internal resources, consider working with a performance marketing agency like Dabrando.

Why?

• You get data-driven strategies
• Access to skilled media buyers and creatives
• Continuous optimisation for your campaigns
• Focused on results — not just vanity metrics

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Final Thoughts: Focus on Marginal Gains

Increasing ROAS isn’t about one magic change — it’s about making many small improvements across:

• Audience targeting
• Creative performance
• Landing page effectiveness
• Budget allocation
• Scaling strategy

When each part improves by 5-10%, your overall return on ad spend can double or triple.

With a clear ROAS strategy, consistent monitoring, and expert support, you’ll maximise every pound spent — making your ad spend not just a cost but a true investment.

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Ready to Boost Your ROAS?

At Dabrando, we help businesses of all sizes scale their advertising with confidence.
We work on a performance-only model, meaning you only pay for real results.

👉 Let’s Talk About Growing Your ROAS — Contact us today at dabrando.com/contact

📧 Need help with marketing business? We only charge based on the results we bring clients, no retainers, no hidden fees!

Contact us today at grow@dabrando.co.uk or explore our services to learn more, or Book A Free Discover Call to get started today!