ROI/ROAS are essential compasses for campaign success. These powerful metrics provide the insights needed to measure the true impact of your promotional campaigns
Now, with Sponsored Max, you can set Target ROI/ROAS to maximize traffic, control, and sales!
Why ROI/ROAS Matters:
- Measures Return on Investment: Helps determine if your marketing investments are generating positive returns
- Optimizes Budget Allocation: Guides smarter decisions on where to invest marketing dollars for maximum impact
- Improves Marketing Efficiency: Identifies high-performing marketing strategies and eliminates wasteful spending
How Target ROI/ROAS Shapes Your Campaign Results:
1. High Target ROI/ROAS (Profit-Optimized Strategy)
- Focus: Prioritizes high-value conversions
- Impact:
✅ Increases GMV by driving higher revenue per sale.
⚠️ May reduce traffic volume, as the algorithm becomes highly selective as this will be shown to a smaller, more refined audience, resulting in lower traffic.
2. Low Target ROI/ROAS (Growth-Optimized Strategy)
- Focus: Maximizes reach and visibility
- Impact:
✅ Boost traffic volume, helping you reach a broader audience
⚠️ Risk of lower-quality leads, potentially decreasing GMV. This occurs because a low target ROI/ROAS signals that you are willing to accept lower returns on your marketing spend. As a result, while you may see increased traffic, the quality of that traffic is likely to be lower
Tips: To maximize optimization, choose the Recommended Target ROI/ROAS. This recommendation, based on historical data, is provided by Lazada’s algorithm as an optimal starting point. Allow Sponsored Max to optimize for you, with its AI-powered system efficiently achieving your target returns!
Sponsored Max is your one-stop booster for driving maximum traffic!
✓ Maximized reach across Lazada platform placements, enhancing to maximize sales potential
✓ Data-driven recommendations for optimal ROI/ROAS targeting, tailored to your products/stores
✓ Streamlined optimization with Target ROI/ROAS bidding, identifying optimal targets
And for shops with limited order history (new sellers):
✅We recommend using auto-bidding strategies instead of target ROI/ROAS at first.
Here’s why:
1. Setting “Target ROI/ROAS” Requires Historical Data
ROI/ROAS optimization works best when the system has:
✓ Past conversion data
✓ Customer behavior patterns
✓ Reliable sales volume
2. “Auto-Bidding” is the Smart Choice for Beginners
✓ Automatically adjust bids for traffic and conversions
✓ Test different audiences without manual input
✓ Build your store’s data foundation
Auto-bidding is the best friend for new sellers! It works without historical data. After hitting sufficient orders, you’ll be ready to set Target ROI/ROAS!
ROI/ROAS is a crucial metric that directly influences investment. By setting an appropriate Target ROI/ROAS, consistently monitoring performance, and continuously optimizing campaigns, you can maximize returns and drive business growth.
🚀 Ready to boost your ROI/ROAS? Explore Sponsored Max to discover your Recommended Target ROI/ROAS today
