Getting the highest value for your budget is the bid strategy available for Facebook ad sets optimising for purchase value. It tells our system to try to spend your entire budget by the end of the ad set's schedule while maximising the amount of value that you get from purchases. More specifically, we try to maximise the amount of value generated by someone who clicked on your ad and then made a purchase within one or seven days (depending on your conversion window).

To further refine your bid strategy, you can set a minimum return on ad spend (also known as: "ROAS"). The ROAS for your ad set can be calculated by dividing the amount of money spent by purchasers within your conversion window (also known as: "conversion value") by the amount that you spent on the ad set. You can view ROAS and conversion value metrics in Ads Manager by customising your columns.

Should I set a minimum ROAS?

It depends on your goals. Setting a minimum ROAS is a constraint on our delivery system. This means that it could lead to less delivery (compared to how much you would have got without one) if your minimum is too high. However, if you have a specific goal for how much return you want get from your ads, setting a minimum ROAS can help you to achieve it.

How do I set a minimum ROAS?

To set a minimum ROAS, tick the box under your bid strategy and enter the amount. You express your desired minimum ROAS with a number between 0.01 and 1000.00. We'll stop delivering your ad if we can't get that much ROAS. Here are examples that give context on what these numbers mean:

• If you want to at least break even using a minimum ROAS, you can set it at 1.00. That is the equivalent of getting a 100% return on ad spend, which means that if you spend £100 on your ad set, you'd want to get at least £100 of value from purchases that happen within your conversion window.
• If you're trying to attract new customers and can accept losing a little money in the short term because you'll make it up from the new customers over time, you could set a minimum ROAS of 0.75. That is the equivalent of getting a 75% return on ad spend, which means that if you spend £100 on your ad set, you'd want to get at least £75 of value from purchases that happen within your conversion window.
• If you want to ensure that you're making a profit on your ad set, you could set a minimum ROAS of 1.15. That is the equivalent of getting a 115% return on ad spend, which means that if you spend £100 on your ad set, you'd want to get at least £115 in value from purchases that happen within your conversion window.

• These examples are in pounds, but the same principles apply to all currencies.
• If you're trying to profit on each conversion, bear in mind that the amount by which you can exceed a 100% return depends on what's realistically achievable for your business and its purchase values. Some products may have higher potential profit margins than others. Setting a minimum ROAS of 1000.00 doesn't mean that we'll be able to get you that much return if you typically see a ROAS of 1.10. While we want you to get the best results possible, we recommend starting with a realistic ROAS and then gradually increasing it as you refine your campaigns.

What should I set as my minimum ROAS?

Again, this depends on your goals. However, if you're unsure where to start, try using the historical data that you have on ROAS as a guide. You could try starting with your average ROAS for similar Conversions campaigns and raise or lower the amount based on performance. You can find historical ROAS data by adding a ROAS column to Ads Manager reports on previous campaigns.

Additional information

Do edits to my minimum ROAS affect ad performance?

Note: We recommend not making significant edits to your minimum ROAS during the learning phase.

The effect that an edit to your minimum ROAS might have on ad performance depends on whether or not your ad set is on track to spend its full budget. Here's a basic explanation of what raising or lowering your minimum ROAS might do, divided into ad sets that are spending their full budgets and those that aren't.

If your ad set is on track to spend its full budget:

• Raising its minimum ROAS. This could increase your average ROAS if higher-value and/or lower-cost purchases are available. If they aren't, this could reduce delivery.
• Loweringor removing its minimum ROAS. This isn't likely to do anything.

• Raising its minimum ROAS. This could lead to even less delivery, but higher ROAS.
• Lowering or removing its minimum ROAS. This could increase delivery, and we recommend trying it if you can.

* Nguồn: Facebook