Stop ads that fall below your minimum ROAS

[samiaseo222]

In the rule creation window, select “all active ads” from the “apply rule to” drop-down menu . Then, in the “Action” drop-down menu, select “deactivate ads.”

For Facebook ads with negative ROAS

When you create a rule based on ROAS, with the action of stopping campaigns with low performance, do it only in campaigns to acquire new customers that aim to generate sales, do not do it in those that are using content to activate cold audiences, since these awareness campaigns will always have a negative ROAS and, therefore, their objective will be quite different from ROAS.

Tip: This is where having a consistent and appropriate germany email list campaign naming structure really comes in handy . If you name your campaigns after the part of the sales funnel you’re targeting—TOFU for top of the funnel (awareness), MOFU for middle of the funnel (customer acquisition), and BOFU for bottom of the funnel (retargeting website visitors who’ve abandoned a cart)—you’ll be able to easily exclude all of the TOFU campaigns.

In the conditions section, the first condition you need to set is that it will act exclusively on your customer acquisition campaigns . To do this, in the first drop-down menu select “Settings” > “campaign name” and then choose the “does not contain” condition and, in the cell, type TOFU .

TOFU Facebook Campaigns

To use this rule properly, you must have previously calculated your minimum viable return , which will be equivalent to your minimum admissible ROAS for your sales to remain profitable.

To calculate it, you will need to know the average value of your sales through Facebook, the cost of the product and your gross margin.

To put it simply, imagine that in the last 3 months you have generated 3,000 sales through your Facebook campaigns, which has given you a conversion value of €150,000. In this case, the average purchase value would be €50 (€150,000/3,000 units). If, for example, your manufacturing and distribution cost is €10, you would have a gross margin of €40, which means that you have to acquire customers for less than €40 for each sale to be profitable.

The break-even point in this case would be a ROAS of 1.25 (€50/€40). This would make it clear that anything above a ROAS of x1.25 would be profitable, so in this case our minimum acceptable ROAS would be 1.26.