We are overwhelmed by the thousands of brands and creators who wish to join Logie but we’ve reached capacity and can’t accept any more users at this time. However, we’d love to have you on our waiting list!

Logie.ai Logo

9 tips to maximize your return on ad spend

In today’s highly competitive eCommerce landscape, advertising is a crucial tool for vendors to attract customers. Social media and digital platforms make it easier for you to reach your target audience through targeted and personalized advertising – so you can stay ahead of the competition and cultivate a growing customer base.

Return on ad spend (ROAS) is the metric most used to measure the effectiveness of advertising campaigns. It is calculated by dividing the revenue generated from an advertising campaign by the cost of the campaign. As a content creator or Amazon vendor, learning to optimize your Return On Ad Spend can go a long way to expand your bottom line.

Fascinating Stats on ROAS

The average ROAS across all industries is $2 for every $1 spent on advertising – Google Study

Businesses that have an ROAS of 5:1 or higher are generally considered successful – HubSpot Report

40% of US marketers said that increasing ROAS was their top priority for improving advertising performance – eMarketer Survey

Businesses that use remarketing campaigns can see ROAS up to 10 times higher than traditional display advertising campaigns  – Tinuiti Report

Businesses that use a combination of search and social advertising can see a 26% increase in ROAS compared to using either channel alone – Marin Software

87% of marketers reported that their ROAS increased or stayed the same in 2020, despite the challenges presented by the COVID-19 pandemic – AdRoll Survey

1.      Set Clear Advertising Goals

The first step to optimizing your ROAS is to set clear advertising goals. Start by defining your objectives and what you want to achieve before you even think about running ay ads. Do you want to increase your sales, promote a new product, or improve your brand awareness?

Setting clear goals helps tailor your ad campaigns and create targeted messaging that resonates with your audience. Clear objectives also serve as a tracking board to measure the progress and success of your advertising campaign.

2.      Use Data to Identify Your Best-Performing Ads

One of the most effective ways to optimize your ROAS is to use data to identify your best-performing ads. By analyzing your advertising data, you can gain insights into which campaigns, ad groups, or keywords are driving the most revenue.

Advertising platforms provide a wealth of data on your advertising campaigns, including clicks, impressions, conversions, and cost-per-click (CPC). Use this information to identify your top-performing ads and allocate your budget accordingly.

3.      Optimize Your Keywords

Keywords are an essential component of your Amazon advertising campaigns. By optimizing your keywords, you may increase ad visibility and attract more relevant traffic to your product listings.

To optimize your keywords, you should conduct thorough keyword research and identify the most relevant and high-performing keywords for your products. You can also use Amazon’s Keyword Research Tool to find new keywords and evaluate their search volume and competition level.

Moreover, it is essential to continuously monitor and refine your keyword strategy to ensure that your ads are targeting the right audience and generating maximum revenue.

4.      Use Ad Targeting to Reach Your Ideal Customers

Ad targeting is a powerful tool to help reach your ideal customers and maximize your ROAS. Amazon offers several targeting options, including product targeting, category targeting, and audience targeting.

Product targeting allows you to display your ads on specific product detail pages, while category targeting enables you to target ads to customers browsing specific product categories. Audience targeting lets you reach customers based on their interests, behaviors, and shopping habits.

Maximize these targeting options to create more relevant and personalized ads that resonate with your audience, ultimately leading to higher conversion rates and increased ROAS.

5.      Test and Refine Your Ad Creative

Your ad creative is one of the most critical factors for determining the success of your Amazon advertising campaigns. To optimize your ROAS, you should continuously test and refine your ad creative to identify what works best.

Start by experimenting with different ad formats, images, copy, and calls-to-action (CTAs) to figure out which elements drive the highest conversion rates. By testing and refining your ad creative, it’s possible to create more compelling and effective ads that generate maximum revenue.

6.      Monitor Your Advertising Metrics

To optimize your ROAS, it is crucial to regularly monitor your advertising metrics. Tracking your campaign performance helps identify any issues or opportunities for improvement so you may take corrective actions.

Some essential metrics to track include click-through rate (CTR), conversion rate, cost-per-click (CPC), and ROAS. Monitor these metrics to identify trends and patterns in your campaign performance and make data-driven decisions to optimize your campaigns further.

7.      Adjust Your Bids and Budgets

Bids and budgets are critical components of your advertising campaigns. Adjusting these may help maximize your ad visibility and generate more revenue.

To optimize your bids, focus on the keywords that drive the most revenue and increase your bids accordingly.

Allocate your budget to the campaigns that generate the highest ROAS. By adjusting your budgets, you make sure that your ad spend is focused on the most profitable campaigns and keywords.

8.      Use Automated Campaigns

Amazon offers several automated advertising options, including Sponsored Products and Sponsored Brands. These campaigns use machine learning algorithms to optimize your ad targeting, bidding, and creative.

By using automated campaigns, you get to save time and resources while still generating maximum revenue. Automated campaigns allow you to focus on your business and let the advertiser’s algorithms handle the complex optimization tasks.

9.      Monitor Your Competitors

It is essential to monitor your competitors’ advertising activities regularly. By tracking your competitors’ ad campaigns, it’s possible to identify new opportunities for optimization and stay ahead of the competition.

Use tools like Jungle Scout, Helium 10, or AMZScout to monitor your competitors’ sales, ad spend, and keyword strategy. Analyzing this data helps identify gaps in the market and adjust your advertising strategy to maximize your revenue.


Optimizing your ad spend requires a combination of careful planning, data analysis, and continuous monitoring. By identifying your target audience, setting clear goals, and testing different strategies, you’ll be able to improve the effectiveness of your ads and maximize your return on investment. Regularly reviewing your metrics and making adjustments as needed also helps stay on track and ensure that you are getting the most out of your ad spend.

Leave a Reply

Your email address will not be published. Required fields are marked *

Join Our Community

Logie is a thriving community that brings together eCommerce brands and influencers. Our AI, creator tools, reporting features, monetization model, and training programs are redefining brand-influencer collaboration and social commerce as you know it. Welcome to this space. 

Latest on Our Blog

Want to Share Your Story or Contribute to our Blog?

We'd love to hear from you...