Study: Expected ROAS Across Top E-commerce Advertising Channels

by Amir Levi 26.Dec.2019 5 min read Views
Expected ROAS Across Top Ecommerce Advertising Channe
Contents

All e-commerce advertisers have the same dilemma of effectively splitting their advertising budget between multiple advertising channels.
That’s why we have studied AdScale’s customer data to discover the average Return on Advertising Spend (ROAS) that e-commerce advertisers achieve from each channel. The study examined a sample of 412 AdScale e-commerce client accounts in 8 verticals that were advertising on Google Search, Google Shopping, Google GDN (mainly for remarketing), Facebook, and Instagram between September 2018 and March 2019.

Average ROAS Per Channel

Conclusions:

  • Shopping campaigns resulted in the highest return with an average ROAS of 1212%. Furthermore, in 86% of accounts, Google Shopping outperformed all other channels significantly.
  • Remarketing campaigns on GDN showed increased success rates when strategically targeting abandoned carts. 63% of accounts using AdScale’s automated remarketing campaigns for abandoned carts increased their performance by 42% when compared with accounts not using dynamic remarketing techniques.
  • Facebook remains a major channel for most vertical businesses. A high variance between store ROAS is present. This appears to be representational of the vertical market itself and requires further examination.
  • Search provided the lowest ROAS. BUT: When checking the lifetime value of Search customers, strong ROAS growth is clear. Evidence shows Search exhibiting a high relative accuracy when targeting new and returning customers with actual intent to purchase. Data reflects increases in ad spend efficiency and the success rate of dynamic remarketing campaigns.
  • These results suggest that returning users are being driven to Search at a significant frequency and conversion rate when compared to other channels.
    Our study is ongoing and we look forward to providing more e-commerce insights.

If you would like to ask us a question or learn more, we would be happy to assist you.

Related posts

How To Get More Exposure For Your E-commerce Business

How To Get More Exposure For Your E-commerce Business

All we focus on are sales and profits. For this, we should understand that the e-commerce business feels a paramount necessity to grow and expand its market share. So, online

10.Jan.2022 8 min read
The SMS Marketing Strategies For E-commerce

The SMS Marketing Strategies For E-commerce

Texting is an essential part of our life. We always tap something or read a new message on the move or outside, at home or the office. This communication method

04.Jan.2022 7 min read
Should I Upgrade To Shopify Plus?

Should I Upgrade To Shopify Plus?

Changes mean constant updates and innovations. The history of commercial relations knows many modifications and improvements. Today, we live in a new age of worldwide e-commerce business scaling. According to

29.Dec.2021 6 min read

Try AdScale Now

Get Started for Free