Roadmap to Increase ROAS in Meta

This 3-Step framework helped me increase the ROAS by 71% for a 7-figure DTC jewelry brand

Machete is a seven-figure jewelry and accessories brand adorned by celebrities and featured in top fashion publications, including Vogue and Harper’s Bazaar.

Machete sought to grow its revenue and amplify results to scale its account but struggled to achieve a profitable return on ad spend. They lacked a system to test ad creatives and a process to iterate and optimize winning ads.

In 3 months, I helped Machete increase their return on ad spend (ROAS) by 71% while at the same time reduce their customer acquisition cost by 14% while scaling their ad spend.

Here’s how I did in 3 steps: 

1. Consolidated Campaign Structure

Before taking over the ad account, all campaigns were previously set to Ad Budget Optimization (ABO), with the retargeting campaign set to the traffic objective. There was no clear structure or objective for the many campaigns.

We consolidated their campaigns into the following structure, focusing on adjusting the budget based on performance in key KPIs:

1) Prospecting using broad and lookalike ad sets.

2) Retargeting using 30-day website visitors and 180-day add-to-cart ad sets.

3) Dynamic Ads using broad and retargeting ad sets.

2. Developed & Tested Ad Creative

After restructuring the campaigns, our focus shifted to crafting high-converting ad creatives, recognizing that this element plays the most significant role in driving performance results.

I worked with the team to develop and launch over 25 pieces of ad creative, focusing on various styles and copy, including:

1) PR features

2) Video B-roll

3) Lifestyle images

4) Split-screen

5) Customer reviews

6) Stylized product images

Additionally, each asset developed included two aspect ratios (1x1 and 9x16), ensuring that these assets were best suited for the different placements and formats on Meta.

3. Iterated and Optimized

Next, we utilized reporting to analyze the performance of ad creatives by examining the following metrics:

1) Hook Rate: 3-Second Views/Impressions

2) Interest: Average Watch Time

3) Desire: Click-Through Rate

4) Action: Return on Ad Spend (ROAS)

This approach enabled us to assess the ad creative performance, ultimately helping us determine which ads were:

- Winners (we kept them running)

- Performing mediocrely (we planned for further iterations)

- Losers (we completely turned them off)

Within just 90 days, we consolidated and restructured the campaigns, developed the first round of ad creative assets for testing, and established an ad creative iteration and optimization process.

As a result, Machete increased their return on ad spend (ROAS) by 71% and reduced customer acquisition costs by 14%.

Additionally, we observed an increase in email and SMS list growth, indirectly amplifying Machete’s owned channels.

Overall, this 3-step framework helped Machete grow their revenue and increase profitability.

TL;DR:

1) Ensure you have a consolidated campaign structure.

2) Develop your first round of ad creatives, testing different ad styles and copy.

3) Analyze performance and iterate on ad creatives to help increase performance.

4) The 3-step framework resulted in a 71% increase in return on ad spend (ROAS).

Are you also a $1M-$10M DTC brand struggling to lower your CAC on Meta? 

Book a call using the link below for a free analysis of your account and ad creative to see where you can improve 👇

Janky Patel