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How to Boost ROAS with Ecommerce Social Media Advertising

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Social media advertising has become an essential digital marketing strategy in the ecommerce industry. Leading platforms such as LinkedIn, YouTube, Facebook, X (formerly Twitter), TikTok, and Instagram enable businesses to reach their target audience through paid ads. Top-performing brands worldwide rely on social media advertising to foster business growth and attract potential customers.

Why ecommerce social media advertising?

Even top-performing brands like Dior, Chanel, and Gucci rely on social media ads for business growth and customer acquisition. According to a recent report by Webfx

74% of people use social media to make purchase decisions. This statistic underscores the significant impact your online store's social media ads can have on your sales and revenue. To stay competitive in this ever-evolving market, understanding and leveraging the power of social media advertising is crucial.

In this article, we will delve into:

  • The benefits of social media advertising

  • The best platforms for social media advertising

  • Tactics to improve your Return on Ad Spend (ROAS)

Benefits of ecommerce social media advertising

  1. Reach more people

Social media advertising extends your reach beyond your followers, helping you connect with new customers.

  1. Target specific audiences

These platforms allow you to target people based on their interests, location, and online behavior, ensuring that your ads reach the most relevant audience.

  1. Increase engagement

Whether it's likes, comments, shares, or clicks, social media ads encourage your audience to engage and connect with your brand.

The best platforms for ecommerce social media advertising

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Choosing the right platform for your social media advertising campaign is crucial for its success and brand awareness. Let's examine some of the most popular platforms.

1. Facebook: The social media behemoth

With over 2.27 billion monthly users, Facebook is a social media titan that every e-commerce business should consider for advertising.

Why Use Facebook?

  1. Largest User Age Group: 25-34 (29.9% of users)

  2. Average Daily Engagement: 30 minutes

  3. Facebook Ads Usage: 93% of social media advertisers use Facebook Ads

With Facebook’s Ads Manager, you can create highly targeted ads that reach your ideal audience, making it a go-to platform for most brands.

2. YouTube: The video-sharing giant

YouTube, the leading video-sharing platform, is perfect for showcasing company culture, creating how-to videos, and providing product demos.

Why Use YouTube?

  1. Number of Monthly Active Users: 2.1 billion

  2. Largest Age Group: 15-35 (highest reach)

  3. Average Daily Engagement: 45.6 minutes

3. Instagram: The visual storyteller

With its visually appealing content, Instagram is an excellent platform for e-commerce brands to showcase their products and personality.

Why Use Instagram?

  1. Number of Monthly Active Users: 2 billion

  2. Largest Age Group: 18-24 (30.8%)

  3. Average Daily Engagement: 30.1 minutes

Instagram offers various ad options, including product images, short videos, hashtags, stories, and live videos.

4 TikTok: Short video platform

This platform is famous for its short, quirky videos. From viral dance tutorials to quick product unboxing, it's a great place to make your brand appealing to the Gen Z crowd by showcasing the fun side of your brand.

Why use TikTok?

  1. Number of Monthly Active Users: 689 million

  2. Largest age group: 18-24 (21%)

  3. Duration of daily engagement: 45.8 minutes

Source: Statista

How to improve ROAS: Practical tactics for ecommerce businesses

Optimizing your ad spend and getting a good return is crucial for your e-commerce business. Here are four practical tactics you can use to improve your ROAS:

Tactic #1: Refine your keywords

Keywords are crucial in ensuring your social ads reach the right audience. They must be relevant to your business and align with popular social media trends.

Actionable Steps:

  1. Develop a list of keywords relevant to your business.

  2. Monitor these keywords and corresponding popular trendy topics on social media.

  3. Use different tools to monitor social media trends relevant to your campaigns, such as Sprout Social, Mention, or RivalIQ.

Tactic #2: Create a strong social media landing page

The landing page is where your audience arrives after clicking your ad. It must deliver on the ad's promise to ensure a positive user experience. A good landing page delivers on the ad's promise and encourages the customer to take action.

Actionable Steps:

  1. Ensure your product landing page has an appropriate call-to-action (CTA).

  2. Match the content style on your ad copy with the landing page copy.

  3. Make your landing page persuasive by adding social proof and a sense of urgency to drive immediate action.

Example: Lenskart promotes Eye testing at home in its Instagram ads with the Schedule Now CTA. You get exactly that from this landing page when you click on the ad.

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Tactic #3: Expand audience reach

When you see positive results from your ads, consider broadening your audience reach to increase your ROAS.

Actionable Steps:

  1. Increase your ad spending to reach more potential customers.

  2. Analyze each ad set and monitor the performance of your campaigns. Allocate more budget to specific ad sets that are performing well.

  3. Consider other ways to broaden your reach, such as changing your bidding strategies or targeting new relevant keywords.

Tactic #4: Conduct rigorous creative testing

Conduct extensive creative testing on your ads to determine which elements resonate with your target audience. This can help optimize your ads and increase ROAS.

Actionable Steps:

  1. Start split testing to determine which content type, design, or presentation converts more.

  2. Once you have the winning ad from the split testing results, refine it by running A/B tests.

  3. Try to test only a few elements at a time. This can make it difficult to attribute changes in ROAS to a specific element.

Example: Here is an example of how MamaEarth, a personal care brand, has done split testing on ads by making different ad variations for a single product.

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How to improve the reach with ecommerce social media advertising?

Social media advertising can dramatically increase your e-commerce business's reach and sales. By leveraging platforms like Facebook, YouTube, and Instagram and implementing the tactics mentioned above, you can optimize your ad spending and maximize your ROAS.

By understanding your audience and the nature of your products and utilizing a multi-platform approach, you can maximize your return on investment (ROI). Let's explore this in more detail.

  1. Understanding your audience is the first step in creating a successful ecommerce marketing strategy. Who are they? What are their interests and preferences? By gaining insight into your audience, you can tailor your social ads to meet their needs and interests, increasing engagement and conversions.

  2. The nature of your products is another critical factor in the success of your social ads. By understanding what makes your products unique, you can highlight these features in your ads, making them more appealing to your target audience.

  3. A multi-platform approach is essential in maximizing your ROI. By utilizing various social media platforms, you can reach a wider audience and increase your chances of converting leads into customers.

Social ads are an effective tool for generating leads. Creating engaging and relevant ads can attract potential customers to your ecommerce site.

Role of email marketing

Once leads are generated through social ads, email marketing becomes important. Email marketing is an effective way to nurture these leads, turning them into loyal customers.

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One strategy to consider in your email marketing is suggesting similar products. By suggesting products similar to what your customers have shown interest in, you can increase the chances of making a sale.

The empty cart reminder

Another tactic to consider is the empty cart reminder. By reminding shoppers about their abandoned shopping carts, you can encourage them to complete their purchases.

Ecommerce email flow

Ecommerce email flow refers to emails sent to your audience from the moment they enter your list as leads or customers. Each flow is designed to nurture leads and drive sales.

Email Service Providers like Mailmodo, Klaviyo, Omnisend, etc., can be used to build and set up your ecommerce email flow. These ESPs provide features such as pre-built automation, which can be customized with your brand assets.

  1. Pre-built automation refers to pre-designed automated email sequences that can be customized to fit your brand. This saves you time and ensures that your emails are professional and effective.

  2. Interactive emails are a unique feature offered by ESPs like Mailmodo. These emails allow for higher engagement by including interactive elements like shopping carts directly in the emails.

Conclusion

So, there you have it! Ecommerce social media advertising is a powerful tool for boosting online sales and engaging with your target audience. You can create winning campaigns that drive results by understanding your customers, leveraging various platforms, and combining different ad types. Remember to nurture leads with email marketing and optimize your ROAS for even greater success. Keep growing your e-commerce empire with social media advertising magic!

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