5 ROAS-boosting ways to scale your performance marketing

Nara Media is a mobile-first performance marketing agency. With unique insights in to optimising your ROAS, they specialise in making your ads perform better. In this guest blog they delve a bit deeper giving you tips and insights on how to scale up.


It’s an all too common scenario:

Your performance marketing has been killing it for a while now. Return on ad spend (ROAS) is really strong. Your customer lifetime value is way above acquisition costs. Everyone is happy. 

So you get the OK to increase the budget, and off you go. But soon after you start scaling, you see ROAS dropping and you’re no longer looking like the hero you were a few weeks ago. 

This is something we hear often from performance marketers. But why does it happen? And more importantly, how can you avoid it?


‘Why’ is grounded in laws of economics

What you’re seeing is the ‘law of diminishing returns’. Essentially, it means that at some point the more you buy something (in this case, digital ads), the less incremental value you get from each additional purchase.


So how does this happen in performance marketing?

Your audience is too small for your bigger budget. Check your ad frequency – has it shot up? If your enlarged budget means you are just hitting the same people more often then your key metrics are going to worsen because of ad fatigue. Each additional ad is delivering less incremental value. 

Algorithms have exhausted the pool of most-valuable users. So the platforms have to work harder to convert people who are likely to be less valuable.


How can you scale spend and maintain strong ROAS?

To make the most of your bigger budget, you need to scale in all aspects of your performance marketing, not just double down on the things you are already doing.


Get on top of your campaign data

Before and during scaling spend, you need to closely monitor your campaign data through the funnel. Not just your revenue and conversion metrics, but CPM, impressions, clicks and click-through rate, frequency and so on. Track this for each audience, channel and creative. This way, if your revenue-based KPI worsens, you can better diagnose where the problem may lie.

Once you have established your benchmarks, scale your spend slowly. If one of the benchmarks worsens, test different fixes until it improves. Then keep upweighting budgets in-line with steady performance.


Make audiences bigger in your existing channels

Expand lookalike audiences to the top 5% of your customers, rather than the top 1-3%. Build a larger range of affinity audiences with overlapping interests.

Here’s one approach we have seen great success from. If your app is in English and you are targeting the UK, USA, Australia and Canada, you can expand your audience by looking for any English speakers worldwide – no matter where they are located.


Embrace more channels into the mix

If you can’t make the audiences in your existing channels much larger then you need to look elsewhere. Adding extra channels has been proven to be effective. Research has found multi-channel campaigns can improve advertising ROI by a multiple of 2.5. 

If you are adding more channels, then you need to consider an app attribution partner. Without one you might see different channels claiming their own version of the same conversion. Not helpful for your reporting or your decision making! An attribution partner will help to de-dupe your conversions to give you a clearer understanding of performance.


Invest more in creative

Iterate on your creative concepts to make them as effective as possible. All small changes in performance are magnified as you scale up.

Make sure your larger audience isn’t hit with the same ads time and again. Consider how different audience segments may respond to different messages. Brainstorm the motivations and barriers to your product for each segment.


Test rigorously

Every new audience, channel or creative needs to go through a structured testing program before it becomes your ‘business as usual’ activity. Lay out your test strategies well – you need to be able to pinpoint exactly what is driving the change in performance. Prioritise each new activity/expansion, and test each in stages. That way you can keep better control of your spending until you are happy that each element is performing.


You don’t need to be intimidated by a larger budget, or struggle to spend it efficiently. Have a plan for how you are going to expand all aspects of your performance marketing and approach it slowly. Remember, good things come to those who wait.

If you are struggling to scale your performance marketing efficiently, Nara Media can help. Email us at info@naramedia.com – we’d love to chat!

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