Understanding Why Your ROAS is Low
Before optimizing, identify the root cause. Common reasons for low ROAS:
Poor Targeting
Ads shown to people unlikely to convert
Weak Creatives
Low click-through rates due to unappealing ads
Low Conversion Rate
Landing page or checkout issues
Low AOV
Revenue per order is too low
High Competition
CPCs are eating into margins
Not sure what ROAS you should aim for? See Good ROAS Benchmarks →
Quick Wins (1-2 Weeks)
Start with these strategies for immediate impact:
Pause Underperforming Ads
Identify and pause ads with ROAS below your break-even threshold. This immediately stops bleeding money.
How: Set a ROAS threshold (e.g., below 2×), run a report, pause losers
Refine Audience Targeting
Exclude demographics and interests that don't convert. Focus budget on high-performing segments.
How: Analyze conversion data by segment, create exclusion lists, use Lookalike audiences
Optimize Ad Schedule
Concentrate spend on high-converting time periods. Reduce or pause ads during low-performance hours.
How: Review hourly/daily performance, adjust bid modifiers or scheduling
Improve Ad Copy
Test headlines, descriptions, and CTAs. Small copy changes can significantly boost CTR and conversions.
How: A/B test 2-3 variations, measure CTR and conversion rate
Optimize Landing Pages
Ensure ad-to-page relevance. Reduce bounce rate and improve conversion path.
How: Match landing page headlines to ad copy, speed up page load, simplify CTA
Medium-Term Strategies (1-3 Months)
These strategies take more time but deliver substantial improvements:
Implement Conversion Rate Optimization
Systematically test and improve your conversion funnel from click to purchase.
How: Run A/B tests on key pages, simplify checkout, add trust signals
Increase Average Order Value
Boost revenue per transaction through upsells, cross-sells, and bundles.
How: Add product recommendations, create bundles, offer free shipping thresholds
Optimize Bidding Strategy
Use Target ROAS bidding to let algorithms optimize for your goals.
How: Set realistic Target ROAS (above break-even), give algorithm 2+ weeks of data
Build Retargeting Campaigns
Retarget website visitors and cart abandoners for much higher conversion rates.
How: Install pixels, create audience segments, design retargeting creatives
Improve Product Feed Quality
For Shopping campaigns, better titles and images mean better performance.
How: Optimize titles with keywords, use high-quality images, add product attributes
Long-Term Optimization (3+ Months)
These strategies build sustainable competitive advantages:
Develop Customer Lifetime Value Strategy
Increase repeat purchases and subscription rates to justify higher acquisition costs.
How: Email marketing, loyalty programs, subscription options
Build Brand Awareness
Brand recognition lowers CPC and increases conversion rates over time.
How: Consistent brand presence, content marketing, social proof
Expand to New Channels
Diversify beyond a single platform to find untapped audiences.
How: Test TikTok, Pinterest, Snapchat, or programmatic ads
Optimize Attribution Model
Use multi-touch attribution to understand the full customer journey.
How: Implement data-driven attribution, track cross-device conversions
Reduce Product Costs
Lower COGS means higher margins and lower break-even ROAS.
How: Negotiate with suppliers, bulk purchasing, optimize fulfillment
Strategy Priority Matrix
Use this matrix to prioritize which strategies to implement first:
| Strategy | Difficulty | Time | Impact |
|---|---|---|---|
| Pause bad ads | Easy | Immediate | ⭐⭐ |
| Refine targeting | Easy | 1 week | ⭐⭐⭐ |
| Optimize landing pages | Medium | 2-4 weeks | ⭐⭐⭐⭐ |
| Retargeting | Medium | 2-4 weeks | ⭐⭐⭐⭐ |
| CRO | Medium | 1-3 months | ⭐⭐⭐⭐ |
| Brand building | Hard | 3+ months | ⭐⭐⭐⭐⭐ |
💡 Start with Easy/High Impact strategies, then work your way to harder ones.
Platform-Specific Tips
Google Ads
- Use Smart Bidding with Target ROAS
- Review Search Terms Report weekly
- Add negative keywords aggressively
- Optimize ad extensions
Meta/Facebook Ads
- Test audience segmentation
- Combat creative fatigue (refresh every 2 weeks)
- Optimize for value, not just conversions
- Use Advantage+ campaigns
Amazon Ads
- Optimize product listings first
- Use negative ASIN targeting
- Leverage Sponsored Brand videos
- Focus on high-margin products
Measure Your Progress
Track your improvements systematically:
- 1Record your baseline ROAS before making changes
- 2Implement one strategy at a time when possible
- 3Wait 2-4 weeks before measuring results
- 4Compare ROAS, conversion rate, and AOV
- 5Iterate based on data