{"id":671,"date":"2020-10-16T16:06:13","date_gmt":"2020-10-16T16:06:13","guid":{"rendered":"https:\/\/disruptivedigital.agency\/?p=671"},"modified":"2020-10-27T23:16:52","modified_gmt":"2020-10-27T23:16:52","slug":"having-one-advertising-goal-for-your-business-may-be-destroying-its-growth-potential","status":"publish","type":"post","link":"https:\/\/disruptivedigital.agency\/oldsite\/having-one-advertising-goal-for-your-business-may-be-destroying-its-growth-potential\/","title":{"rendered":"Having One Advertising Goal For Your Business May Be Destroying It’s Growth Potential"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ _builder_version=”3.22″ min_height=”1312px” custom_margin=”||-55px|||” custom_padding=”0px||0px|||”][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”1488px” custom_margin=”|auto|16px|auto||” custom_padding=”||0px|||”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.6.4″ text_font=”Roboto|300|||||||” text_text_color=”#333333″ text_font_size=”21px” text_line_height=”32px” header_2_font=”Roboto||||||||” header_2_text_color=”#333333″ header_2_font_size=”30px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”412px” custom_margin=”0px||14px||false|false” custom_padding=”||15px|||”]
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If your company only has one return on ad spend (ROAS) or cost per order (CPO) goal for Facebook ads, you’re most likely doing a tremendous disservice to the growth of your business.<\/p>\n

Consider this real scenario we encountered with a potential client after auditing their business:<\/strong><\/h2>\n

You task your agency with hitting a 5X return on ad spend.<\/p>\n

At the end of the month, the agency spent $20,000 and say they’ve generated you $100,000 in revenue according to Facebook reporting. Right on target!<\/p>\n

However, when you look at the revenue numbers in your sales system, you don’t see a $100K increase. You barely see a $20K increase.<\/p>\n

You also don’t see meaningful growth in new visitor traffic or email addresses. Instead, it’s mostly the same people you’ve always serviced coming back.<\/p>\n

What’s happening here?<\/strong><\/h2>\n

In order to hit a 5X ROAS goal, the agency focused on reaching the lowest hanging fruit instead of trying to drive new customers for your business.<\/p>\n

These low hanging fruit are the the existing customers and website visitors who might have bought anyways regardless of seeing ads.<\/p>\n

This 5X ROAS goal didn’t actually achieve it’s job in growing your business as much as hitting vanity ad metrics.<\/p>\n

So why can’t the agency just take those dollars and go after new customers instead?<\/p>\n

The challenge is it generally costs 5 times as much to acquire a new customer as it does to reacquire an existing one. That means it’s near impossible to acquire a new customer at your desired 5X ROAS and will most likely cost you a 1X ROAS to do so.<\/p>\n

The agency has no incentive to go after new customers on your behalf because it wouldn’t be considered successful.<\/p>\n

Instead of having one higher ROAS\/CPO goal for your business, consider having a higher ROAS goal for existing customers and a lower goal for new customers.<\/p>\n

Having separate goals will allow you to continue to scale your business while also profitably retaining your existing customers.<\/p>\n<\/div>\n<\/div>\n

<\/div>\n[\/et_pb_text][et_pb_text _builder_version=”4.6.4″ text_font=”Roboto|300|||||||” text_text_color=”#333333″ text_font_size=”21px” text_line_height=”32px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”146px” custom_margin=”40px|||||” custom_padding=”||||false|false” link_option_url=”https:\/\/disruptivedigital.agency\/#contact”]

<\/em><\/strong><\/p>\n

Looking for new ways to drive sales or scale your business with Facebook Ads?<\/em><\/strong>Click here<\/span> to reach out and learn more about how our services can help.<\/em><\/strong><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"

If your company only has one return on ad spend (ROAS) or cost per order (CPO) goal for Facebook ads, you’re most likely doing a tremendous disservice to the growth of your business. Consider this real scenario we encountered with a potential client after auditing their business: You task your agency with hitting a 5X […]<\/p>\n","protected":false},"author":3,"featured_media":672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!<\/p>\n","_et_gb_content_width":"","content-type":"","twitterCardType":"","cardImageID":672,"cardImage":"https:\/\/disruptivedigital.agency\/wp-content\/uploads\/2020\/10\/One-goal.png","cardTitle":"","cardDesc":"","cardImageAlt":"","cardPlayer":"","cardPlayerWidth":0,"cardPlayerHeight":0,"cardPlayerStream":"","cardPlayerCodec":"","footnotes":""},"categories":[12],"tags":[],"class_list":["post-671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy"],"_links":{"self":[{"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/posts\/671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/comments?post=671"}],"version-history":[{"count":21,"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/posts\/671\/revisions"}],"predecessor-version":[{"id":1027,"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/posts\/671\/revisions\/1027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/media\/672"}],"wp:attachment":[{"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/media?parent=671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/categories?post=671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/disruptivedigital.agency\/oldsite\/wp-json\/wp\/v2\/tags?post=671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}