What’s a Good ROAS in Australia’s eCommerce Market?

10 October 2023

Maximising Returns on Ad Spend in the Australian E-commerce Landscape

In the world of e-commerce, achieving a good ROAS (Return on Ad Spend) is the ultimate goal for businesses. But what exactly is considered a good ROAS in the Australian market? Let’s delve into the intricacies of ROAS optimisation and find out how to maximise your returns on ad spend in the dynamic e-commerce landscape Down Under.

Understanding ROAS in the Australian E-commerce Arena

ROAS is a pivotal metric that determines the effectiveness of your advertising campaigns. It’s the key to ensuring that your marketing budget isn’t going to waste. In Australia, the e-commerce scene is flourishing, and understanding what constitutes a good ROAS is essential for staying competitive.

In the quest for ROAS optimisation, here are some key points to consider:

  1. Industry Benchmarks: To gauge your performance, it’s crucial to know the industry standards. In Australia, a good ROAS typically ranges from 300% to 800%, depending on the niche.
  2. Account for Costs: Don’t forget to factor in all costs associated with your advertising efforts. This includes not just ad spend but also overheads and fulfilment costs.
  3. Seasonal Variations: Be mindful of seasonal fluctuations in the e-commerce market. Different times of the year may require adjustments in your ROAS targets.
  4. Adjustment Period: Give your campaigns time to mature. It’s not unusual for new campaigns to start with lower ROAS figures, which can improve over time.

Now, let’s break down the strategies to maximise your ROAS in the Australian e-commerce scene:

Strategies for Optimising ROAS in Australia

  1. Keyword Optimisation: Utilise high-converting keywords specific to the Australian market. Tailoring your keywords can significantly boost your ROAS.
  2. Geo-Targeting: Take advantage of Australia’s vast geography. Target specific regions where your products or services are most in demand to optimise ad spend.
  3. Responsive Ad Campaigns: Ensure that your ads are mobile-friendly. Australians are increasingly using mobile devices for online shopping, so responsive design is critical.
  4. Landing Page Quality: Improve the quality of your landing pages. A seamless user experience can lead to higher conversions and, subsequently, a better ROAS.
  5. Ad Scheduling: Analyse when your target audience is most active and schedule your ads accordingly. This minimises wasted impressions.
  6. Ad Copy Creativity: Craft engaging, creative ad copies that resonate with your Australian audience. Inject some local flair to connect on a deeper level.
  7. Retargeting: Implement effective retargeting campaigns to re-engage potential customers who didn’t convert initially. This can yield a higher ROAS.

ROAS Benchmarks in Australia by Industry

Here’s a snapshot of what a good ROAS might look like across various e-commerce industries in Australia:

Industry Average ROAS Range
Electronics 400% – 800%
Fashion 300% – 600%
Home & Garden 350% – 700%
Health & Beauty 350% – 650%
Food & Beverage 300% – 550%

 

In the Australian e-commerce landscape, understanding and optimising your ROAS is a continuous journey. Industry benchmarks and creative strategies play a vital role in achieving a good ROAS. Remember, what’s considered ‘good’ can vary by industry and market conditions.

Unlock the full potential of your ad spend by tailoring your approach to the Australian market. With the right strategies and continuous monitoring, you can maximise your returns on ad spend and thrive in the ever-evolving world of e-commerce.

If you need any help or advice for your own digital strategy, simply get in touch! You can also follow Viva Digital on Facebook to receive regular news, tips and how-tos in your feed. Thanks for reading.

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Paul Smith

With more than 20 years of industry experience in the UK, USA and Australia under his belt, Paul Smith is a seasoned professional who will infuse your digital marketing with his wealth of knowledge and expertise. Paul specialises in digital strategy, SEO and data analytics.

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