Analyzing ROAS, or return on ad spend, based on ad campaign content intent can provide valuable insight into campaign effectiveness at each stage of the buyer's journey. One way to approach this analysis is to use the BOFU, MOFU, TOFU framework, which categorizes content based on its stage in the buyer's journey.
BOFU stands for “Bottom of Funnel” and refers to content aimed at users who are close to making a purchasing decision. MOFU stands for “Middle of the Funnel” and refers to content aimed at users who are still considering their options. TOFU stands for “Top of the Funnel” and refers to content aimed at users who are just becoming aware of a brand or product.
Here's how ROAS can be analyzed based on content intent for each stage of the buyer's journey:
Ad campaigns that target users who are close to making a purchasing decision or who are already familiar with your brand tend to have a higher ROAS because these users are more likely to convert. The content intent for BOFU is to provide information about the product or service, such as features, benefits, and pricing, and to encourage users to make a purchase.
Ad campaigns that target users who are still considering their options tend to have a lower ROAS because these users are not yet ready to make a purchase. The content intent for MOFU is to provide deeper information about the product or service , such as product comparisons and reviews, and to encourage users to progress toward a purchase.
Ad campaigns that target users who are just becoming aware of a brand or product tend to have the lowest ROAS because these users are not yet ready to make a purchase and may need more time to become familiar with the brand or product. The content intent for TOFU is to create brand awareness and interest through educational and informational content, such as blog posts and videos. ROAS for TOFU can be calculated by dividing the revenue generated from purchases that can be attributed to the campaign by the amount spent on advertising, but this may not always be the most effective way to measure the success of a TOFU campaign because it may not generate immediate sales.
In summary, analyzing ROAS based on content intent can help marketers understand the effectiveness of their advertising campaigns at each stage of the buyer's journey. By keeping in mind the differences between BOFU, MOFU, and TOFU content intent, marketers can tailor their advertising strategy to achieve the desired goals at each stage of the buyer's journey.
However, it is important to note that ROAS should not be the only metric used to measure the success of an advertising campaign (DEPENDING ON OBJECTIVES). Other metrics, such as customer acquisition cost (CAC) and customer lifetime value (CLV), net promoter score (NPS), or conversion rate can also provide important information about the effectiveness of a campaign.
Vanity KPIs may seem attractive to focus on because of their simplicity to track, but ultimately they don't matter if they don't lead to real business growth. As a marketer, my advice is to stay focused on the metrics that matter and always consider the context around them. By doing so, businesses can make informed decisions that drive long-term success.
Ultimately, a deep understanding of content intent and the buyer's journey, along with judicious use of performance metrics, can help marketers maximize the ROI of their advertising campaigns and to improve the overall customer experience.