The ENDURANCE Goal for Paid Campaigns
At ENDURANCE, we strive to average a 4 to 1 ROI (aka ROAS) across all paid executions for our clients. This means that for every dollar in spend, their paid advertising returns $4 dollars (at minimum). And we understand that cannot always happen – sometimes an industry is so competitive, that having a 1:1 ROAS (return on ad spend) is good enough because the brand recognition is worth it. Or sometimes you might go months without a sale, but each sale is worth x1000 times more than your monthly spend. There are many other situations where a 4:1 ROAS just isn’t possible (market competition, platform limitations, etc.), but that’s our goal nonetheless and being up front and honest with clients before we jump into spending their campaign budget about the expected ROAS has never steered us wrong.
We’d like to share the results of a recent client (we’ll call Acme Co.) who came to us only for a limited time. They spend their paid ad budget on advertising during back to school months (a very competitive space, especially in the student back to school realm we were playing in), during the rest of the year, their products are already in big box stores, so paid advertising is really only an options during a small back to school window.
The Challenge – to beat a 3:1 Return on Ad Spend
The agency we inherited the client account from is very, very good at what they do. They are a leading paid agency in the United States, one we know very well for their management of large commercial brands. Acme Co. was large, but not the largest client we’ve ever worked with, and the transition from the old agency to us was shaky.
The previous agency was able to maintain a 3:1 ROAS in 2018 using a major influencer – still an impressive feat given the situation and industry – and we were asked to beat it (without a major influencer).
Our Paid Results:
Here are a few screenshots of our results…