What Should Be the Goal of Running Ads?

Short Answer: The primary goal of running ads is to achieve a strong return on ad spend (ROAS), ideally three to five times your investment. However, even if your ads only break even, continuing to run them can be valuable because the exposure builds brand awareness and influences potential customers over time.

Full Explanation

The key goal when running ads is to generate a profit that significantly exceeds your ad spend, such as three to five times your investment. This level of return ensures that your advertising efforts contribute positively to your business’s bottom line. However, business and consumer readiness vary over time, meaning not everyone who sees your ads will take immediate action.

Sometimes, even breaking even on your ad spend is worthwhile. This is because advertising helps plant seeds in the minds of your audience. Over a longer period, potential customers who initially didn’t convert may remember your brand and come back later, resulting in sales down the road.

Step-by-Step Breakdown

1. Set a target ROAS: Aim for a return on ad spend where the revenue generated is at least three to five times your advertising costs.
2. Monitor ad performance: Track how your ads perform regularly to see if they meet or exceed your ROAS goals.
3. Evaluate break-even results: If ads are breaking even, consider continuing them instead of stopping right away.
4. Recognize long-term value: Understand that many ads create an impression on potential customers who might not buy immediately but could convert in the future.
5. Maintain consistent exposure: Keep running ads to stay present in your customers’ minds, which can lead to eventual sales over time.

Real Examples

There are numerous cases where potential customers have been exposed to ads multiple times without immediate purchase. Months or even a year later, those individuals return and complete a purchase because the repeated exposure built trust and recognition. This shows the importance of patience and long-term view in advertising.

Common Mistakes

• Stopping ads too soon: Giving up if ads don’t immediately generate a high return can mean missing out on future sales opportunities.
• Ignoring brand awareness: Focusing solely on immediate sales without considering the value of sustained visibility can limit long-term growth.
• Expecting instant results: Forgetting that customers move through different readiness stages and might not be ready to purchase right away.

FAQs

Q: Is it okay if my ads only break even?
Yes, running ads that break even can still be valuable for building brand awareness and nurturing future customers.

Q: How many times should I expect to see a return on my ads?
A good benchmark is to aim for three to five times your ad spend, but being patient and consistent matters almost as much.

Q: What if no one buys immediately after seeing my ads?
Many people need time to decide. Ads can plant awareness so that people come back later, sometimes even a year after initial exposure.

Key Takeaways

• Set realistic ROAS goals, such as three to five times your ad spend.
• Don’t stop running ads if they only break even because they contribute to long-term brand exposure.
• Understand that customer purchasing journeys take time; repeated ad exposure builds trust.
• Consistent advertising ensures your brand stays top of mind, encouraging returns and sales over time.