{"id":3954,"date":"2022-08-08T01:50:05","date_gmt":"2022-08-08T01:50:05","guid":{"rendered":"https:\/\/www.connectedculture.com.au\/?p=3954"},"modified":"2023-05-25T03:02:16","modified_gmt":"2023-05-25T03:02:16","slug":"what-considered-good-when-it-comes-to-e-commerce-ad-performance","status":"publish","type":"post","link":"https:\/\/www.connectedculture.com.au\/what-considered-good-when-it-comes-to-e-commerce-ad-performance\/","title":{"rendered":"What’s considered ‘good’ when it comes to E-Commerce ad performance?"},"content":{"rendered":"\n

Firstly, you might simply be asking this because you want to know how your results compare to other E-Commerce brands. <\/p>\n\n\n\n

To answer this I\u2019d give you some hard data. <\/p>\n\n\n\n

If your brand is tracking at greater than 1.78 ROAS on Facebook then you are doing better than most E-Commerce brands, based on a set of data produced by Statlas. <\/p>\n\n\n\n

This stat is taken from their compiled data from a data set of 230 ecommerce brands totalling $2.39b+ in online revenue over the last two years. <\/p>\n\n\n\n

I think we can safely assume this is a pretty good representation of the eCommerce market!<\/p>\n\n\n\n

The trouble with this comparison is that it doesn\u2019t capture the nuance of each brand\u2019s individual strategy and where they are at in their evolution. <\/p>\n\n\n\n

The second way (and in my opinion the best way) to figure out if your ads are \u2018successful\u2019 is to tie your targets back to your goal as a business. <\/p>\n\n\n\n

Start with what you are aiming to achieve in the long term. <\/p>\n\n\n\n

Some brands choose profit over growth – they might be relatively mature, have strong organic channels, and choose only to invest in paid advertising to top up their organic revenue. <\/p>\n\n\n\n

For them \u2018good\u2019 might be a 5X ROAS that allows them to profit on every single transaction. <\/p>\n\n\n\n

Other brands might be aiming to scale to 100M users and be VC backed, with high potential for repeat purchases and low Average Order Value (AOV). A brand like this might be extremely happy with 1X ROAS. <\/p>\n\n\n\n

Do you need profit now, are you happy to break even, or can you stomach a loss if it leads to long-term profit? <\/p>\n\n\n\n

This will help you figure out what is your highest possible Cost per Acquisition (CPA).  <\/p>\n\n\n\n

Your target ROAS is your AOV divided by your CPA. <\/p>\n\n\n\n

So if you can afford to pay $10 per sale and your average order value is $25 then your target ROAS is 2.5. <\/p>\n\n\n\n

Now you have your own benchmark to define success by, and this becomes your criteria for whether to spend more or less on a given channel.<\/p>\n\n\n\n

Source: https:\/\/www.webtopia.co\/blog\/ad-performance<\/a><\/p>\n\n\n\n

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Firstly, you might simply be asking this because you want to know how your results compare to other E-Commerce brands.  To answer this I\u2019d give you some hard data.  If your brand is tracking at greater than 1.78 ROAS on Facebook then you are doing better than most E-Commerce brands, based on a set of […]<\/p>\n","protected":false},"author":6,"featured_media":4301,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[46],"tags":[23,15,16,27],"acf":[],"yoast_head":"\nWhat's considered 'good' when it comes to E-Commerce ad performance? 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