How to Improve My ROI on Paid Ad Spend: Why Conversion Rate Optimization Will Help

See how conversion rate optimization can improve the ROI on your ad spend. Deliver the results yours customers expect.

 min. read
February 25, 2023
How to Improve My ROI on Paid Ad Spend: Why Conversion Rate Optimization Will Help

If you find yourself constantly up against it trying to prove your Facebook marketing and Instagram ads are working, you are not alone. According to LinkedIn, 58 percent of digital marketers can’t get social media budget approvals without first proving ROI. The problem is it goes beyond driving website traffic. You have to prove those conversions are a direct result of your social ads and landing pages.

This is the place conversions happen and also where Conversion Rate Optimization (CRO) comes in. CRO allows you to use your proven tactics to improve conversion rates on your clients’ websites. If you can seamlessly test your results, you can prove your worth to your clients and provide true numbers that reflect improved CRO is directly related to your ads. While you might be thinking you really don’t want to get involved in CRO, today’s clients demand results. That’s why CRO is the best way to show you have improved ROI on ad spend.

What Your Clients Want to See

Your clients might not even know what to measure when it comes to analyzing their paid ad spends. Since marketing costs can cover so many expenses from your content production costs to the PPC fees and other investments such as display ads you need numbers to show your worth. You can be the voice of reason helping them see your efforts are in fact helping them get more bang for their paid ad spend buck.

Why Focus on Conversion Rates?

While it’s all well and good to show your ads are increasing traffic, without CRO you can’t show how this improves ROI. However, if your ads improve conversion rates, you are getting results. Conversions change traffic from a simple visit, to someone taking action to help your clients meet their marketing or business goals. As long as the conversion rate reflects your goal whether it is capturing emails, encouraging downloads or an out and out sale, your clients see your value.

As well, if your ads are getting a CRO below 2 percent, it’s time to start testing to see where you are missing the mark. Testing for effectiveness allows you to compare like elements against each other such as:

  • Headlines
  • Colors and fonts
  • CTAs
  • Layout and design
  • Images
  • Copy
  • CTA links

 The more conversions you get, the more effective the element.

Why You Need to Take Responsibility for CRO

If you can accurately run CRO tests on client websites, you improve your chances of generating more revenue/conversions for your client by as much as 30 percent. AutoOptimize is an easy tool that works far more effectively than tools such as Facebook Pixel, yet is just as easy to install and track. It’s the best way for you to show their ad spend is put to good use, and you remain in the driver’s seat by showing you are driving CRO.

Why CRO is Better than Optimized Ads

Your clients don’t want to keep feeding you money so they can do standard A-B testing. This really adds up. Instead, if you switch over to using AutoOptimize, they won’t be spending what other companies average on platforms such as Google and Facebook. In fact, these platforms can eat up as much as 20 percent of monthly ad budgets. However, when you can test on the website level measuring traffic you’ve optimized for ad platforms, you reduce costs, stop eating into ad spend dollars and can report on all your active campaigns, not just one.

 If you’re worried your ads could turn out to be less effective than you hope, don’t be. Compound improvements of just 1 percent conversions for 50 experiments show conversion rates of 64 percent. Since AutoOptimize comes with a guarantee of 30 percent improved conversions, you really have nothing to lose.  

Proving Your Worth

CRO allows you to prove the ads you produce, and the marketing channels you have chosen work. You can use CRO to show your ads are:

  • Meeting the number of targeted conversions required
  • Improving interaction with audiences to get the action required
  • Increasing website traffic
  • Contributing to profits
  • Contributing viable leads

Even if ads aren’t working, you can show your clients where their efforts aren’t working. This is even more valuable, as you show clients where they should focus their efforts to improve their paid ad spend ROI.

AutoOptimize offers a "no-code" interface so you can be up and running quickly. You can cover the minimal cost of the platform by offering CRO tracking as an additional service. To give it a try before committing to a trial, use a sandbox environment free of cost and try it in real-time.  

 

Start your 14-day trial today!