How to Increase ROAS on Paid Ads: Proven Strategies for 2025
What Is ROAS and Why Is It Critical for Paid Ads?
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. Calculated as:
ROAS = Revenue from Ads ÷ Total Ad Spend
For example, if you spend $1,000 on a Meta Ads campaign and generate $5,000 in revenue, your ROAS is 5:1, meaning $5 earned per $1 spent. A good ROAS varies by industry, but for prop trading firms, a 4:1 ratio is often a benchmark for profitability.
Why does ROAS matter? It’s a direct indicator of campaign efficiency, helping you:
- Allocate budgets to high-performing channels.
- Identify underperforming ads for optimization.
- Maximize profitability in a privacy-first digital landscape.
At Money Social, we’ve helped clients achieve ROAS as high as 7:1 by combining advanced targeting with compelling creative. We provide insights enabling you to scale your prop firm.
5 Proven Strategies to Increase ROAS on Paid Ads
1. Leverage First-Party Data for Hyper-Targeted Campaigns
With third-party cookies phasing out, first-party data is the cornerstone of effective ad targeting in 2025. Money Social’s proprietary data collection tools allow prop trading firms to build detailed customer profiles based on website behavior, CRM data, and email interactions.
How to Implement:
- Use CRM Integration: Sync your CRM with ad platforms like Google Ads or Meta to create custom audiences from existing clients.
- Build Lookalike Audiences: Use high-value customer data to target similar prospects on social platforms. For example, Meta’s lookalike audiences can reduce acquisition costs by up to 50%.
- Exclude Converted Users: Avoid wasting ad spend by excluding existing clients from campaigns, ensuring ads reach new prospects.
Case Study: A Money Social client, a prop trading firm, used first-party data to target traders interested in forex challenges, achieving a 6:1 ROAS by focusing on high-intent audiences.
2. Optimize Ad Creative with Dynamic Testing
Compelling creativity is the heartbeat of high-ROAS campaigns. In 2025, short-form video ads dominate platforms like TikTok and Instagram Reels, with 78% of marketers prioritizing video content for its engagement potential.
How to Implement:
- Test Multiple Formats: Experiment with video ads, carousel ads, and static images to identify what resonates. For example, user-generated content (UGC) videos can boost engagement by 30%.
- Use Dynamic Creative Optimization (DCO): Tools like Criteo’s DCO+ allow real-time testing of headlines, visuals, and CTAs to find winning combinations.
- Align with Platform Mindset: Tailor creatives to platform-specific user behaviour—e.g., humorous, authentic content for TikTok vs. professional messaging for LinkedIn.
3. Refine Keyword Strategies for Search and Social
Keywords remain a powerful driver of ROAS, especially for Google Ads and social media campaigns. In 2025, long-tail and location-specific keywords are key to reaching high-intent audiences.
How to Implement:
- TTarget Long-Tail Keywords: Focus on specific phrases like “best prop trading platform for beginners” to capture user intent.
- Use Negative Keywords: Exclude irrelevant terms (e.g., “free trading”) to reduce wasted spend.
- Monitor Trends: Tools like Sprout Social or SEMrush help track trending keywords in prop trading, ensuring your ads stay relevant.
Example: A Money Social campaign targeting “funded trading account reviews” increased ROAS by 40% by focusing on high-intent, low-competition keywords.
4. Integrate SEO and Paid Ads for Synergy
Combining SEO and paid ads creates a powerful synergy that boosts ROAS. SEO builds long-term organic traffic, while paid ads deliver immediate results, amplifying your brand’s visibility.
How to Implement:
- Use Paid Ads to Test Keywords: Test new keywords in Google Ads to identify high-performers for your SEO strategy.
- Retarget Organic Visitors: Use paid ads to retarget users who visit your SEO-optimized pages, like Money Social’s prop trading blog.
- Consistent Messaging: Align ad copy with organic content to reinforce brand trust.
Statistic: Businesses using combined SEO and paid ads see 25% higher conversion rates than those relying on a single channel.
5. Monitor and Optimize with Multi-Touch Attribution
Last-click attribution often misleads marketers by unde
- Use Analytics Tools: Platforms like Google Analytics 4 (GA4) track user interactions across channels, revealing which ads drive conversions.
- Focus on High-Value Metrics: Prioritize metrics like cost per acquisition (CPA) and conversion rate over vanity metrics like impressions.
- Adjust Bidding Strategies: Set target ROAS in automated bidding tools to optimize spend based on performance data.
Money Social Insight: Our team uses GA4 to track blended ROAS across search, social, and retargeting, helping clients achieve consistent returns.
Why Prop Trading Firms Need Tailored ROAS Strategies
Prop trading firms face unique challenges, such as targeting niche audiences (e.g., experienced traders) and navigating regulatory constraints. Generic ad strategies often fall short, leading to low ROAS. Money Social’s expertise in prop firm marketing ensures campaigns are:
- Tailored to High-Intent Audiences: We target traders seeking funded accounts or trading challenges.
- Compliant with Regulations: Our ads adhere to financial advertising guidelines, building trust.
- Data-Driven: We use first-party data to optimize campaigns for maximum profitability..
Common Mistakes to Avoid When Optimizing ROAS
- Focusing Solely on ROAS: High ROAS doesn’t always mean high profits. Consider customer lifetime value (CLV) to justify lower initial returns.
- Neglecting Landing Pages: Poorly optimized landing pages can tank conversions. Ensure message matches between ads and landing pages.
- Over-Reliance on Broad Match Keywords: Broad match can drain budgets. Use exact or phrase match for better control.
- Ignoring Creative Fatigue: Refresh ad creatives regularly to maintain engagement.
Frequently Asked Questions (FAQs)
A 4:1 ROAS is a common benchmark, but prop trading firms may aim for 5:1 or higher, depending on profit margins.
First-party data enables precise audience targeting, reducing wasted spend and increasing conversions by reaching high-intent users.
YouTube and Instagram often yield high ROAS for B2C audiences, while LinkedIn excels for B2B prop trading campaigns.
Weekly checks help spot trends, but base major decisions on monthly performance data to ensure statistical significance.
Yes, combining SEO for organic traffic and paid ads for immediate results creates a synergistic effect, boosting overall conversions.