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10x ROAS Ads Strategy: Turning Ad Spend into Massive Profit

ROAS

If you are running online ads on platforms like Facebook, TikTok, or Google, the ultimate indicator of your business’s survival is "Value for Money." Many spend a fortune on ads only to see tiny sales returns. This problem usually stems from overlooking a critical metric called ROAS.



1. The Foundation: What is ROAS?

Before we reveal the secret formula, let’s understand the basics. ROAS stands for Return on Ad Spend. Put simply, it’s the revenue generated for every dollar spent on advertising.

The Calculation:


Total Revenue from Ads / Total Ad Spend) = ROAS


Example: If you spend 1,000 THB on ads and generate 10,000 THB in sales, your ROAS is 10 (or 1,000%). This means for every 1 THB spent, you earn 10 THB back. This is the clearest indicator of your Ad Profitability.


2. The 3 Pillars of 10x ROAS

Achieving these numbers isn't about luck; it’s about a 3-part strategy working in harmony:


  • 2.1 The Right Product & High Margins: Ad profitability doesn't just happen at the dashboard; it starts with the product. If your product is in high demand and has a healthy profit margin, you have more room to outbid competitors.


  • 2.2 "Thumb-Stopping" & "Sales-Closing" Content: Effective ads must do two things:

    • Hook: Stop the scroll within the first 3 seconds with a compelling visual or video.

    • Persuade: Provide complete info and a strong Call to Action (CTA) explaining why they must buy now.

  • 2.3 Precision Targeting: Sending ads to the "uninterested" is throwing money away. The 10x formula relies on Lookalike Audiences (people similar to your buyers) or Retargeting those who showed interest but haven't purchased yet.


3. Rapid Techniques to Scale Your ROAS

If your ROAS is currently stuck at 1–2x, try these tactics:


  • Kill Underperforming Campaigns: Don’t be emotional about "sunk costs." If a campaign spends a lot without sales, kill it immediately and move the budget to winners.

  • Increase Average Order Value (AOV): Use Upselling or Cross-selling (e.g., "Buy 2 Get 1 Free"). When the order value increases, your ROAS rises even if ad costs stay the same.

  • Constant A/B Testing: Always test new headlines or cover images to find the one that drives the most profit.


4. A Word of Caution: ROAS vs. Net Profit

Be careful—a high ROAS doesn't always mean high Net Profit. ROAS is based on revenue, not profit. If your production costs are extremely high, a ROAS of 5 might still result in a loss. Always calculate your Break-even ROAS before scaling.


💡 Frequently Asked Questions (FAQ)


  • Q: What is a "Good" ROAS?

    • A: It depends on your margins, but generally, a ROAS of 3x–4x is a solid starting point for most online businesses.


  • Q: Why are my sales high but my ROAS low?

    • A: Usually due to "High Ad Costs." This happens if your content isn't engaging (low click-rate) or your targeting is too broad.


  • Q: Which platform gives the highest ROAS?

    • A: It depends on the product! Fashion and trends thrive on TikTok, while high-ticket items or problem-solving products often perform better on Google Search.


  • Q: How do I keep my ROAS stable?

    • A: Refresh your content regularly to prevent Ad Fatigue. Also, consistently use your customer data for Retargeting.


  • Q: What if my ROAS is below 1x?

    • A: Stop the ads immediately! Audit your landing page: Are the photos attractive? Is the copy persuasive? And most importantly, is your pricing competitive?


Summary: ROAS is the Heart of Business Scaling

In 2026, business success isn't just about having a great product; it’s about managing your ad budget with maximum efficiency. Understanding and optimizing for ROAS is how you scale from thousands to millions.


Ready to explode your sales?

Mahasajan (มหัศจรรย์) is here to help. Our professional team provides comprehensive brand building and digital sales strategies tailored to the Thai market to ensure your business thrives.

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