Social media advertising is crucial for driving revenue, but if your ROAS (Return on Ad Spend) isn’t where you want it to be, it’s time to optimize. ROAS is the ratio of revenue you earn from ads compared to what you spend.
The higher the ROAS, the better your return on investment. Here are five strategies to help maximize your Instagram Ads ROAS.
Instagram ad formats: What works for your audience?
Instagram gives you many ways to connect with your audience, thanks to its diverse ad formats. Here are some of the top options you can use to make your campaigns succeed:
Carousel Ads: Show off multiple images or videos in one ad that users can swipe through. Great for telling a story or showcasing a group of products.
Video Ads: Grab attention fast with short, engaging video content.
Collection Ads: Blend videos, images, and product catalogs so people can browse and shop directly from your ad.
Stories Ads: These full-screen and vertical ads, slide in between user stories and are perfect for creating an immersive experience.
Reels Ads: Short, fun videos designed specifically for the Reels feed. Great for showing personality and creativity.
Explore Ads: Target people browsing the Explore section, where they’re already looking for new and interesting content.
Now that you’re familiar with Instagram ad formats, let’s talk about how to make the most of them and boost your ROAS.
Create campaigns that connect with your audience
To really grab attention on Instagram, your ads need to do more than just look good, they need to feel real. Start by getting to know your audience inside and out. What do they care about? What challenges do they face? Once you’ve got a handle on that, create content that speaks to them like a friend, not a brand.
Instead of just showing off your product, tell a story that makes it relatable. Imagine a home decor brand creating a fun Reels Ad that shows how a quick room makeover can totally change the vibe of a space. That’s the kind of content that connects.
Provide a smooth ad-to-landing-page experience
Your landing page is where the magic happens, it’s what turns clicks into action. But here’s the thing: if your landing page doesn’t deliver on the promise of your ad, people will bounce. For example, if your ad shouts about a 20% discount, make sure that discount is the first thing they see when they hit your page.
Keep it simple and on-brand. Use the same colors, fonts, and tone as your ad so it feels like a smooth experience. And don’t underestimate the basics: fast load times, easy navigation, and a clear call-to-action are non-negotiable. Also, add some social proof (like testimonials or reviews) and, if it fits, a countdown timer for those time-sensitive deals.
Rely on data to make informed decisions
Instagram Ads give you tons of data, use it to your advantage. Look at performance metrics to see what’s working and what’s not. A/B testing is key here. Try different headlines, visuals, and CTAs to figure out what clicks with your audience.
Don’t stop at the basics, dig into user behavior. Tools like Instagram Insights help you track these patterns. If a certain group prefers video ads over carousel ads, adjust your strategy in real-time. Quick changes can turn a struggling campaign into a winner.
Use emotional triggers in your ads
Great ads connect on an emotional level. Use storytelling and design to trigger emotions like excitement, curiosity, or a sense of urgency. Limited-time offers, for example, play on the fear of missing out (FOMO), while testimonials and user-generated content build trust.
Think about the psychological triggers that motivate your audience. A wellness brand could showcase the tranquility someone feels after using their product, while a travel agency might highlight the joy of exploring a dream destination.
Optimize campaigns for each stage of the funnel
Maximizing ROAS means aligning your Instagram ads with each stage of the customer journey.
Awareness (Top of funnel): Use eye-catching formats like Reels or Stories to introduce your brand. Focus on visuals and storytelling, and track reach and impressions to see how well you're capturing attention.
Consideration (Middle of funnel): Build trust with Carousel or Video Ads that highlight benefits, testimonials, or features. Drive users to learn more or sign up, then track clicks and engagement.
Conversion (Bottom of funnel): Retarget users with clear CTAs like "Shop Now" or "Sign Up." Add urgency with promotions and track conversions and ROAS.
Maximizing your ROAS on Instagram is all about understanding your audience, using the right ad formats, and making data-driven decisions. At LOUD, we’re experts in creating Instagram ads that drive results and boost your return on ad spend. Contact us and optimize your campaign.
