Diese Seite ist auch auf Deutsch verfügbar. Zur deutschen Seite wechseln

How to generate up to 20x ROAS from Social Advertising

How to generate up to 20x ROAS from Social Advertising

Nosto is the world´s fastest-growing personalization solution. Today the Shopware partner gives you tips how to generate up to 20x ROAS from Social Advertising. Companies investing money in the attraction of new customers is nothing new. In fact, ecommerce merchants have been shown to spend an average of 90% of their marketing budgets on customer acquisition alone. But with the advent of social media, the battleground on which they compete for these customers is changing. 

With 1.79 billion users active on social media (according to Statista) the potential to reach new customers is huge, but so too is the risk of getting lost in the noise, wasting your time and budget. This is where personalization comes in-­ tailoring your social media advertising efforts to help you target the right people with the most relevant items from you store.Compared to traditional social advertising, personalized ads are considered by consumers to be*: 

• 54% more engaging

• 52% more educational

• 49% more time-­saving

• 45% more memorable 

The result? Up to 20x ROAS on your social media advertising efforts. An impressive figure indeed and one that is sure to speak to those that hold the advertising purse strings. But personalized social media advertising is more than just a quick win -­ it also increases brand engagement, loyalty and ultimately the customer lifetime value. 

You may be thinking that social media, with it’s multi-­faceted targeting options should be enough. What could personalization then bring to the table that delivers such results? Well, while social media segmentation options have allowed you to target relevant groups with pre-­set messages that you have deemed to be relevant, personalization looks to take your efforts a step further and attend to the individuals within these groups based on real-­time behavioural data. This results in product level ads, tailored for each person. 

Ads created in this way take two forms -­ suggestions based on the behavior and preferences of the collective, generally used to attract completely new customers, and suggestions based on the behavior of the individual, used to bring lost customers back to the store. These two forms can then be applied to a number of use cases...

Best seller product ads 

These type of ads work to tempt previously unknown shoppers away from the social media conversation and to your store by highlighting real-­time trending items from your inventory. While not true one-­to-­one personalization, they are dynamically updated in real-­time, reflecting current seasonal and shopping trends and playing on a person’s tendency to be led by the crowd. They also highlight the pieces that are most likely to convert. These type of ads have been shown to have up to 13x higher click through rate.** 


You are a greeting card company who wants to attract new customers. You don’t want to use a generic ad but you haven’t got any information specific to the people you want to attract because they haven’t interacted with your site yet. You use third-­party software to automatically generate an ad which shows the most popular items in your store right now. These items are the most relevant at any one time and so therefore the most likely to convert. Valentine’s day is coming up and so the demand for Valentine’s cards and small gifts is high-­ your advert is automatically populated with these items, therefore reflecting current trends. 


Personal Re-­engagement Ads

Ads which target shoppers who have previously visited your store, recommending products picked just for them based on their previous shopping behavior. These changes are immediate and based on individual customer profiles. When profiling a customer, information may be collected across hundreds of data points from several sources, including location, onsite and offsite behavior, and interaction with emails. Information collected can include interests, context, and even where they are in the buying cycle. These type of ads have been been shown to increase ROAS by up to 11x.**


A customer comes to you store and looks at a couple of irons but then leaves the site. This data is captured either by a tracking pixel or by a third party piece of software. When they return to their social media pages or go to browse on other websites they see an advert that is automatically populated with the products that they previously looked at.  



Ads aimed at shoppers who selected items but didn’t quite make it to checkout. These ads encourage customers to complete the purchase by reminding them of items they’ve previously left in the cart. Thus you can tailor the recommendations using the product preferences that have been shown to produce high levels of engagement in that individual, increasing ROAS by up to 19x.**


A shopper comes to your store looking for a blender. They add one to their cart but get decide to to check out this product in other online stores. Normally this data is wasted but that need not be the case: once they leave your store their buyer profile is now captured so they can be recognized across the web, with any ad spaces you chose to target them on (eg their Facebook newsfeed) immediately populated with the items they abandoned, together with other related pieces.


These examples are just a brief overview of what is possible when you personalize your advertising efforts. To find out more about the approaches you can use, the benefits and more actionable examples, check out Nosto’s ebook “How to Drive Quality Traffic to Your Store with Personalized Advertising.” 


*Source: https://advertising.yahoo.com/Insights/BALANCING-­ACT.html 

** Compared to US average Facebook ad performance. Calculation based on figures from The Facebook Ads Benchmark Report by Salesforce, 2013.

About Nosto

Nosto is the fastest-growing personalization solution in the world, enabling online retailers to deliver their customers personalized shopping experiences, wherever they are. A SaaS solution, Nosto’s ease of use and speed of implementation empowers retailers to start growing their businesses within minutes of getting started, increasing conversion, average order value and customer retention. With offices in New York, London, Berlin and Helsinki, Nosto is used by over 15,000 retailers across the globe including Volcom, LUSH and The ICONIC.


Never miss out - get all the latest news sent straight to your inbox.

Shopware Logo
Your opinion matters to us!

Honest feedback is valuable and our basis for improvement. That's why we're asking you to take part in our latest survey on Shopware as a brand. It will probably take you less than 5 minutes.