ROAS. Google ads Facebook ads What’s a good number right now.

[JohnD Realestate]

Could use some advice.

Was sitting in on a marketing (wife’s company not mine but I have some sway)call with some folks today and I was asking some Qs like what’s the ROAS. They were quoting percentages like were up 30%/22% this week/month and it’s great.
When I asked for real numbers campaign by campaign stuff like this was said.... we brought in 1000. Spent 3000. Sounds horrible? Thoughts?
One google ads campaign spent 1500 brought in 15k that’s great....


diving into the numbers they have about 5-7 campaigns going btw FB/google. Spending 15k a month and they don’t know what that’s bringing in. (Said they haven’t been tracking ads well since ios14)

Website is doing 60k a month but it’s a hot product. They’re doing 5m in wholesale.
Women’s apparel and it’s sold in 400 stores.

product is a little over 12 months old.

So my take was that some of that 60k is from brand awareness. Marketing co said they can’t track sales on FB.....I’m like then why use them.

More diving to learn that we spent 3500. Last month on a FB sales campaign that brought in 200 sales. Depends on which product t but we retail at $60-120 so $17 per sale is a lot to me.
and on one click campaign they paid 6$ a click....that’s not a sales campaign


after the call agency emailed my wife’s partner that I’m coming in hot....maybe they think I’m outta line? But I’m just trying to understand what’s going wrong. February- April they were hovering at 100k of DTC business now steady at 60/70k but spending 17k to get there between ads and agency fee.

meanwhile my site today had close to its best day ever 1.34k in sales....love klaviyo. We don’t run ads on my site....yet

 

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[eliquid]

You have several things going on...

Google privacy issues hurting tracking.

Facebook/iOS 14 issues hurting tracking.

Unless they are tracking heavily with UTMs or some speciality software, its going to be hard to get real ROAS numbers from the ad platform for multiple reasons. So you need to get it from somewhere else.

Personally, you need to be adding in LTV into the mix and looking at cost to gain a new customer to help around this hump.

 

[eliquid]

I realized I didn't answer your ROAS question though.

Right now, for ecom, it's pretty normal to see ( depending on the campaign ) somewhere 150-350% on products.

North of 1000% on brand.

Both of those are for Google.

On Facebook, because of the loss of iOS 14 users, if 1-day click attribution... around 200% would be normal for ecom. BUT that's not the real ROAS, just what FB can report on. Something to keep in mind. That's for a well dialed in campaign too.

These are "in ad platform" stats. In Analytics with UTMs you would see very different results for the same campaigns more than likely since there are going to be issues with tracking at both ad platforms in-house.

However, you have to understand both systems are very different ( search vs social ) and that also Google back attributes the conversion to the original date of the click, Facebook does it the day of the conversion.

Looking backwards in reports and having a rolling window delay would help for Google reports.

 

[eliquid]

Another thing to add, they can track FB. Don't let them tell you that.

It just wont be 100% accurate.

They also need to be tracking everything in Analytics via UTMs if they are not. Right now that is going to be your best bet unless you want to get into speciality software like Hyros and more.

 

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[eliquid]

Also.. lol

Your about to run into the most expensive time of the year for Google and Facebook ads as we run up into Q4 holiday prep/spending. Cost are going to go up for sure when it comes to clicks.

 

[BizyDad]

Here's the UTM builder

Campaign URL Builder

This tool allows you to easily add campaign parameters to URLs so you can measure Custom Campaigns in Google Analytics.

ga-dev-tools.web.app

Another thing to add, they can track FB. Don't let them tell you that

In my experience most Facebook agencies are terrible at knowing how to track this. Maybe they are being honest with you. Also, most Facebook agencies suck.

And someone who specializes in Facebook for e-commerce definitely should know...

 

[Kung Fu Steve]

Could use some advice.

Was sitting in on a marketing (wife’s company not mine but I have some sway)call with some folks today and I was asking some Qs like what’s the ROAS. They were quoting percentages like were up 30%/22% this week/month and it’s great.
When I asked for real numbers campaign by campaign stuff like this was said.... we brought in 1000. Spent 3000. Sounds horrible? Thoughts?
One google ads campaign spent 1500 brought in 15k that’s great....


diving into the numbers they have about 5-7 campaigns going btw FB/google. Spending 15k a month and they don’t know what that’s bringing in. (Said they haven’t been tracking ads well since ios14)

Website is doing 60k a month but it’s a hot product. They’re doing 5m in wholesale.
Women’s apparel and it’s sold in 400 stores.

product is a little over 12 months old.

So my take was that some of that 60k is from brand awareness. Marketing co said they can’t track sales on FB.....I’m like then why use them.

More diving to learn that we spent 3500. Last month on a FB sales campaign that brought in 200 sales. Depends on which product t but we retail at $60-120 so $17 per sale is a lot to me.
and on one click campaign they paid 6$ a click....that’s not a sales campaign


after the call agency emailed my wife’s partner that I’m coming in hot....maybe they think I’m outta line? But I’m just trying to understand what’s going wrong. February- April they were hovering at 100k of DTC business now steady at 60/70k but spending 17k to get there between ads and agency fee.

meanwhile my site today had close to its best day ever 1.34k in sales....love klaviyo. We don’t run ads on my site....yet

Jason's right with some of the changes, however, I think they have been a massive improvement. In my masterminds across several industries, we're all sharing a massive INCREASE in ROAS since the ios14 (and soon ios15) updates.

Facebook now must create better tracking tools to stay in the game... and they did.

Google will now share its traffic data directly with Facebook simply to spite Apple. It's F*cking awesome.

I've been playing with a lot of it myself and I'll say this pretty definitively: I think these changes are the best thing to happen to paid advertising in years.

Now for your question...

If I were talking to a client, and they were telling me their ads didn't work or their agency didn't perform (which are both possible), I'd take a step back and look at the sales process.

The page they are hitting, what are the upsells and order bumps, is there an abandon cart sequence, are you capturing emails, etc.

Anytime ads aren't working, I'd argue it's because of the sales process.

That being said, I think it's completely reasonable for you to be getting 200-300% ROAS as a minimum.

Every agency I know at this point is pointing at the ios14 updates and scrambling because their old ads no longer work. One of my buddies is selling a 5k program and it's costing him 4800 to get the sale. They're in a lot of trouble so I'm sneaking in there and helping them out.

I don' think I answered any of your questions... but more a stream of thought haha

 

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[BizyDad]

I don' think I answered any of your questions... but more a stream of thought haha

Yeah, and you created a few more. Like:

Google will now share its traffic data directly with Facebook simply to spite Apple

Huh? How? When? Where's the proof?

 

[Kung Fu Steve]

Yeah, and you created a few more. Like:



Huh? How? When? Where's the proof?

I'm hanging with the lady, I'll send you a screenshot in the mornin'

 

[BizyDad]

I'm hanging with the lady, I'll send you a screenshot in the mornin'

Cool cool. Send the instructions on how to connect the two also, will ya? Hahaha.

 

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[Simon Angel]

Cool cool. Send the instructions on how to connect the two also, will ya? Hahaha.

Also very interested lol

 

[MitchC]

Jason's right with some of the changes, however, I think they have been a massive improvement. In my masterminds across several industries, we're all sharing a massive INCREASE in ROAS since the ios14 (and soon ios15) updates.

Facebook now must create better tracking tools to stay in the game... and they did.

Google will now share its traffic data directly with Facebook simply to spite Apple. It's f*cking awesome.

I've been playing with a lot of it myself and I'll say this pretty definitively: I think these changes are the best thing to happen to paid advertising in years.

Now for your question...

If I were talking to a client, and they were telling me their ads didn't work or their agency didn't perform (which are both possible), I'd take a step back and look at the sales process.

The page they are hitting, what are the upsells and order bumps, is there an abandon cart sequence, are you capturing emails, etc.

Anytime ads aren't working, I'd argue it's because of the sales process.

That being said, I think it's completely reasonable for you to be getting 200-300% ROAS as a minimum.

Every agency I know at this point is pointing at the ios14 updates and scrambling because their old ads no longer work. One of my buddies is selling a 5k program and it's costing him 4800 to get the sale. They're in a lot of trouble so I'm sneaking in there and helping them out.

I don' think I answered any of your questions... but more a stream of thought haha

Your masterminds as in the path or ones you are in?

is there many ecom people in the path?

 

[JohnD Realestate]

@eliquid thanks.

ltv is customer lifetime value? We came up with 430.

yes I figured they could track if only by creating new landing pages.

The brand is very hot...

so my concern is that they aren’t doing a great job with ads and we don’t know it bc we’re still getting a lot of traffic....wasting money and opportunity to make more sales.

 

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[JohnD Realestate]

Could use some advice.

Was sitting in on a marketing (wife’s company not mine but I have some sway)call with some folks today and I was asking some Qs like what’s the ROAS. They were quoting percentages like were up 30%/22% this week/month and it’s great.
When I asked for real numbers campaign by campaign stuff like this was said.... we brought in 1000. Spent 3000. Sounds horrible? Thoughts?
One google ads campaign spent 1500 brought in 15k that’s great....


diving into the numbers they have about 5-7 campaigns going btw FB/google. Spending 15k a month and they don’t know what that’s bringing in. (Said they haven’t been tracking ads well since ios14)

Website is doing 60k a month but it’s a hot product. They’re doing 5m in wholesale.
Women’s apparel and it’s sold in 400 stores.

product is a little over 12 months old.

So my take was that some of that 60k is from brand awareness. Marketing co said they can’t track sales on FB.....I’m like then why use them.

More diving to learn that we spent 3500. Last month on a FB sales campaign that brought in 200 sales. Depends on which product t but we retail at $60-120 so $17 per sale is a lot to me.
and on one click campaign they paid 6$ a click....that’s not a sales campaign


after the call agency emailed my wife’s partner that I’m coming in hot....maybe they think I’m outta line? But I’m just trying to understand what’s going wrong. February- April they were hovering at 100k of DTC business now steady at 60/70k but spending 17k to get there between ads and agency fee.

meanwhile my site today had close to its best day ever 1.34k in sales....love klaviyo. We don’t run ads on my site....yet

I realized I didn't answer your ROAS question though.

Right now, for ecom, it's pretty normal to see ( depending on the campaign ) somewhere 150-350% on products.

North of 1000% on brand.

Both of those are for Google.

On Facebook, because of the loss of iOS 14 users, if 1-day click attribution... around 200% would be normal for ecom. BUT that's not the real ROAS, just what FB can report on. Something to keep in mind. That's for a well dialed in campaign too.

These are "in ad platform" stats. In Analytics with UTMs you would see very different results for the same campaigns more than likely since there are going to be issues with tracking at both ad platforms in-house.

However, you have to understand both systems are very different ( search vs social ) and that also Google back attributes the conversion to the original date of the click, Facebook does it the day of the conversion.

Looking backwards in reports and having a rolling window delay would help for Google reports.

1000%!!!!
It’s a new brand. Influencers have latched onto it with no payments. Only a little and I mean little gifting campaign we did with an entry level person doing random DMs off her Instagram acct.

 

[JohnD Realestate]

Another thing to add, they can track FB. Don't let them tell you that.

It just wont be 100% accurate.

They also need to be tracking everything in Analytics via UTMs if they are not. Right now that is going to be your best bet unless you want to get into speciality software like Hyros and more.

I’m really just fumbling around when I do any work with ads but I know to have them land on specific pages so I can see in analytics how much traffic I’m driving to the site.

when I asked they said yeah we could do that but we haven’t yet.

 

[JohnD Realestate]

Jason's right with some of the changes, however, I think they have been a massive improvement. In my masterminds across several industries, we're all sharing a massive INCREASE in ROAS since the ios14 (and soon ios15) updates.

Facebook now must create better tracking tools to stay in the game... and they did.

Google will now share its traffic data directly with Facebook simply to spite Apple. It's f*cking awesome.

I've been playing with a lot of it myself and I'll say this pretty definitively: I think these changes are the best thing to happen to paid advertising in years.

Now for your question...

If I were talking to a client, and they were telling me their ads didn't work or their agency didn't perform (which are both possible), I'd take a step back and look at the sales process.

The page they are hitting, what are the upsells and order bumps, is there an abandon cart sequence, are you capturing emails, etc.

Anytime ads aren't working, I'd argue it's because of the sales process.

That being said, I think it's completely reasonable for you to be getting 200-300% ROAS as a minimum.

Every agency I know at this point is pointing at the ios14 updates and scrambling because their old ads no longer work. One of my buddies is selling a 5k program and it's costing him 4800 to get the sale. They're in a lot of trouble so I'm sneaking in there and helping them out.

I don' think I answered any of your questions... but more a stream of thought haha

On taking a step back that’s what I want to do.
I think they should freeze most of the campaigns and look at what’s going on do some figuring then re launch.
But I also want to look at other avenues.

when you say email capture your talking about a tracking pixel? Or just a sign up

 

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[Andy Black]

We pass this in the URL for Google Ads:

• utm_source=google&utm_medium=cpc&utm_campaign=d*{ifmobile:mb}{ifnotmobile:dt}_k*{keyword}_m*{matchtype}_c*{creative}_p*{adposition}_n*{network}

See if you can capture that into your CRM. Google will expand out the parameters and you'll see the keyword and device etc.

 

[JohnD Realestate]

Jason's right with some of the changes, however, I think they have been a massive improvement. In my masterminds across several industries, we're all sharing a massive INCREASE in ROAS since the ios14 (and soon ios15) updates.

Facebook now must create better tracking tools to stay in the game... and they did.

Google will now share its traffic data directly with Facebook simply to spite Apple. It's f*cking awesome.

I've been playing with a lot of it myself and I'll say this pretty definitively: I think these changes are the best thing to happen to paid advertising in years.

Now for your question...

If I were talking to a client, and they were telling me their ads didn't work or their agency didn't perform (which are both possible), I'd take a step back and look at the sales process.

The page they are hitting, what are the upsells and order bumps, is there an abandon cart sequence, are you capturing emails, etc.

Anytime ads aren't working, I'd argue it's because of the sales process.

That being said, I think it's completely reasonable for you to be getting 200-300% ROAS as a minimum.

Every agency I know at this point is pointing at the ios14 updates and scrambling because their old ads no longer work. One of my buddies is selling a 5k program and it's costing him 4800 to get the sale. They're in a lot of trouble so I'm sneaking in there and helping them out.

I don' think I answered any of your questions... but more a stream of thought haha

Thanks for all the responses. Helping me formulate a plan.
Sounds like we are looking for a new agency tbh but it's not my decision I just report back.

On the website being the problem it's def possible. That's what we have the most control over. I think the site converts well but it's google speed is very slow 43 or so is the average. I was planning to address that this week I have the issues and will start fixing with help from a coding freelancer.

Could I ask what do you think of the conversion rate?

 

[eliquid]

Thanks for all the responses. Helping me formulate a plan.
Sounds like we are looking for a new agency tbh but it's not my decision I just report back.

On the website being the problem it's def possible. That's what we have the most control over. I think the site converts well but it's google speed is very slow 43 or so is the average. I was planning to address that this week I have the issues and will start fixing with help from a coding freelancer.

Could I ask what do you think of the conversion rate?

Honestly, that conv rate looks normal to me. It might be a bit below the average, but again there are some layers here to think about.

The other thing is, no matter your conv rate ( at or below the average ), it can always be improved upon your specific number.

Here are some benchmarks: Google Ads Benchmarks for YOUR Industry [Updated!]

For ecom, its like 2.8%.. but again that's an average and we don't know if you have display mixed into your average or what's going on and what level of optimization you have going on.

If you want to ditch the agency, I can prob work something out with you if you want someone to look over it. I have a background in soft goods ecom ( urban and custom apparel ) as well.

 

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[Kung Fu Steve]

Yeah, and you created a few more. Like:



Huh? How? When? Where's the proof?

Go into your Pixel settings, scroll down to "Choose a Partner" ... look at the bottom left... BAM.

This just came out so it'll take a little while to get things dialed in for them, but it makes sense to start setting it up now and playing with it.

But they purposefully created this in partnership to handle Apple's goofy new rules. I wouldn't be surprised if Google and YouTube start working directly with Facebook and Instagram soon (this seems to be their test).

 

[Kung Fu Steve]

The short answer to solving iOS14 issues with tracking is to use tools like FB lead and conversion ads.

The clicker enters their info directly into FB and then they now can track it (instead of cookies, which have been blocked for years).

This dramatically improves fbs tracking.

To solve the ad costs rising, switch from long tail keywords and specific targeting to extremely general targeting and specific message-to-market match sales copy.

Let facebooks Ultron-level war games algorithms figure out who to show your ad to. They are smarter than us. Let them do their job..

And don't bother buying these 2k courses telling you iOS14 is end of the world and only they have the answer. Haha

 

[Kung Fu Steve]

Your masterminds as in the path or ones you are in?

is there many ecom people in the path?

Masterminds I participate in.

I've been spending an uncomfortable amount of money to get around some top folks. There's only one group I'm a part of that has figured this stuff out. I'll probably make some money bringing it to the other groups hehehe.

The Path is small these days. There's 2 versions. The old grandfathered-in group (who most have been there for going on 3 years). That has 18 folks. That one is now closed to outsiders. The new version only has 5 people. 2 coaches selling high ticket programs, 1 selling high end real estate, 1 ecomm person, and another who never shows up (you know who you are!!)

Our last ecomm person left the main group a couple months ago.

 

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[BizyDad]

Go into your Pixel settings, scroll down to "Choose a Partner" ... look at the bottom left... BAM.

This just came out so it'll take a little while to get things dialed in for them, but it makes sense to start setting it up now and playing with it.

But they purposefully created this in partnership to handle Apple's goofy new rules. I wouldn't be surprised if Google and YouTube start working directly with Facebook and Instagram soon (this seems to be their test).

View attachment 40190

The short answer to solving iOS14 issues with tracking is to use tools like FB lead and conversion ads.

The clicker enters their info directly into FB and then they now can track it (instead of cookies, which have been blocked for years).

This dramatically improves fbs tracking.

To solve the ad costs rising, switch from long tail keywords and specific targeting to extremely general targeting and specific message-to-market match sales copy.

Let facebooks Ultron-level war games algorithms figure out who to show your ad to. They are smarter than us. Let them do their job..

And don't bother buying these 2k courses telling you iOS14 is end of the world and only they have the answer. Haha

Thank you, can't wait to put that through it's paces...

 

[Kung Fu Steve]

Thank you, can't wait to put that through it's paces...

hit me up if you get stuck. I charge 1 margarita per call.

 

[Kung Fu Steve]

Thanks for all the responses. Helping me formulate a plan.
Sounds like we are looking for a new agency tbh but it's not my decision I just report back.

On the website being the problem it's def possible. That's what we have the most control over. I think the site converts well but it's google speed is very slow 43 or so is the average. I was planning to address that this week I have the issues and will start fixing with help from a coding freelancer.

Could I ask what do you think of the conversion rate?

As @eliquid said, you're not far off the mark.

I don't think I can take you on as a client right now but I'll DM you my process and you guys can do it on your own.

But what I've noticed is that everyone blames the agency, goes to the next agency, they do better... for a while, then they blame that agency and move to the next.

I'll stand strong saying it's the sales process (you'll see the diagram in a sec). Fix that, and you won't really give a shit what your CAC is (as long as it's not obnoxious)

 

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[JohnD Realestate]

Honestly, that conv rate looks normal to me. It might be a bit below the average, but again there are some layers here to think about.

The other thing is, no matter your conv rate ( at or below the average ), it can always be improved upon your specific number.

Here are some benchmarks: Google Ads Benchmarks for YOUR Industry [Updated!]

For ecom, its like 2.8%.. but again that's an average and we don't know if you have display mixed into your average or what's going on and what level of optimization you have going on.

If you want to ditch the agency, I can prob work something out with you if you want someone to look over it. I have a background in soft goods ecom ( urban and custom apparel ) as well.

Right now is a good time to pitch that.
I don't want the agency to fail so any info I get indeed it back to them.
But if there is someone out there that can do better they would def want to talk to them now. We've had 4 months of big bills and low sales.


I can't know anything for sure but I do know the product is hot.
I sell it on my site and my customers are loyal. Im in the backend of both sites and I've lost so many customers to the brand site and when I look them up I see organic search on google front page landing.

Contemplating freezing ads and see what happens....

def let's talk and see what you think.

 

[eliquid]

Right now is a good time to pitch that.
I don't want the agency to fail so any info I get indeed it back to them.
But if there is someone out there that can do better they would def want to talk to them now. We've had 4 months of big bills and low sales.


I can't know anything for sure but I do know the product is hot.
I sell it on my site and my customers are loyal. Im in the backend of both sites and I've lost so many customers to the brand site and when I look them up I see organic search on google front page landing.

Contemplating freezing ads and see what happens....

def let's talk and see what you think.

Yeah, I'll DM you and see where it goes

 

[JohnD Realestate]

we're going to try something

Masterminds I participate in.

I've been spending an uncomfortable amount of money to get around some top folks. There's only one group I'm a part of that has figured this stuff out. I'll probably make some money bringing it to the other groups hehehe.

The Path is small these days. There's 2 versions. The old grandfathered-in group (who most have been there for going on 3 years). That has 18 folks. That one is now closed to outsiders. The new version only has 5 people. 2 coaches selling high ticket programs, 1 selling high end real estate, 1 ecomm person, and another who never shows up (you know who you are!!)

Our last ecomm person left the main group a couple months ago.

if you need another Ecom guy....I'm handy to have around I like to be useful.

 

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[BizyDad]

tagging @The-J I believe this might be up his alley.

 

[JohnD Realestate]

Wonder if you guys know this/hate it.....

I got a proposal from a direct mail company that says they put a tracking pixel on your site that can identify with e-mail/snail mail address and name of 40% of the visitors to a site.
Then they send a postcard and tie that into digital and e-mail.
Costs about .15 a contact for the date 600 a month minimum. Postcards are 1. Digital spends on traffic.

right now we're getting about 1-3% opt in for emails.

so that's a big jump for us. We're going to go for it if anyone need the info LMk