Increase Facebook ROAS In 2025 – A Full Guide

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Author:

Ryan Bettencourt

Published

March 5, 2025

Facebook Logo For Facebook Ads

Table of Contents

Introduction

Increasing Facebook ROAS in 2025 is more important and more difficult than ever. This handy guide will help you increase your Facebook ROAS in 2025.

We regularly get asked questions about how Hello Bar can be used to improve Return on Ad Spend for digital advertising as well as for specific ad channels. The number of companies and people asking us this lately has increased because many companies have struggled to increase their Facebook Return on Ad Spend levels (or get back to previous levels). Sadly, too many people are losing money on their Facebook ads and the return on ad spend is more difficult than ever to track. Many of those who are figuring out how to make Facebook ads work still don’t have clear ROAS goals, don’t understand their ROAS data well enough or don’t know how to scale this powerful advertising channel. So, I figured I would take a few minutes to summarize some tips of how to optimize Facebook ROAS in 2025. These tips just scratch the surface but hopefully you can find a few tips to help with optimizing your Facebook ads spend (and, potentially, your total ad spend as many of these same tips can be applied to other channels).

Understanding ROAS Facebook Ads in 2025: Key Average Return On Ad Spend Stats and Benchmarks

Before diving into specific tactics, let’s examine the current state of Facebook ROAS in 2025 so you have some ROAS benchmarks to optimize towards. Here is some average ROAS data for 2024 and 2025:

  • The average Facebook ads campaign Return on Ad Spend across all industries on Facebook currently stands at 2.87:1, meaning businesses generate $2.87 for every $1 spent on advertising (WordStream, 2024)1.

  • Top-performing industries like apparel and beauty are seeing Facebook ads campaign ROAS of 3.5-4.2, while more competitive sectors like finance and insurance average 2.1-2.5 (Shopify’s State of Commerce Report, 2024)2.

  • Mobile-optimized ad campaigns are outperforming desktop-only campaigns by 27% in terms of ROAS (Meta Business Insights, 2024)3.

  • Video content within Facebook advertising campaigns continues to drive higher engagement, with video ad campaigns showing 31% better ROAS than image-only campaigns (HubSpot Research, 2024)4.

  • Brands using advanced targeting methods combined with compelling creative are seeing up to 40% improvements in their ROAS (eMarketer Digital Ad Spending Forecast, 2024)5.

While the above benchmarks are helpful, keep in mind that what is good ROAs for Facebook ads for one company may be much different than what good ROAS for Facebook ads is for another company. This can be for a variety of reasons such as average profit margins, return rates and other key variables.

Calculating Your Average ROAS On Ad Campaigns

ROAS is not the end all marketing metric for determining success of your paid marketing efforts. But, for this article I will focus just on ROAS rather than a larger view of total revenue to total spend. This is because ROAS continues to be one of the most key metrics for any e-commerce store and is one that you can control the most. Calculating ROAS is simple:

Calculating ROAS = Revenue Generated from Ads / Ad Spend

Let’s say for example, that your advertising budget for Facebook ads for the month is $10,000. You spend all of that budget and see revenue from that spend to be $20,000. On the most basic level, this means that your ROAS is 2.0. In other words, for every 1 dollar spent, you generated 2 dollars in gross revenues. This is the most basic and common way people calculate return on ad spend.

There are other factors you can (and I would argue should) include to have a more realistic view of your Facebook advertising ROI (for example, factoring in your return rates, profit margins or the total revenue halo effect of your ad spend). But, let’s stick with this most common definition of ROAS for now.

Return on Ad Spend Formula

Variables That You Can Use To Increase ROAS & Campaign Performance For Facebook Ads

Generally speaking, to increase your ROAS and improve your campaign performance, you need to either increase the numerator (revenue) or decrease the denominator (ad spend)…or both. The strategies in this guide focus on three core approaches to doing this:

  1. Lowering your Cost Per Click (CPC): The first way you can improve your ROAS for Facebook ads is to lower the cost per click for each visitor that comes to your site. There are many ways you can try to lower this cost but that is an article for another day.

  2. Increasing your Conversion Rates: The next way you can improve the ROAS for Facebook ads isto increase the percentage of your visitors who come to your site through Facebook ads who buy something. You should be regularly tracking your conversion rate data and have clear and reasonable goals for your conversion rates. Facebook makes conversion tracking easy and if you need help, you can quickly get help from a freelancer.

  3. Boosting your Average Order Value (AOV): Finally, you can increase how much each person buys when they buy something.

Let’s explore each of these components in detail.

Be sure that for all of your Facebook advertising campaigns that you have your Facebook pixel properly installed an you are not just calculating ROAS overall but also are calculating the variables below by each ad placement and/or campaign.

Part 1: Strategies to Lower Your Cost Per Click on Facebook Ads

The first component of improving ROAS is reducing how much you pay for each click. This means lowering the average CPC of your Facebook ads. Here are proven tactics for 2025:

1. Leverage AI-Powered Creative Testing For Your Advertising Campaigns

Facebook’s AI algorithms have become increasingly sophisticated in 2025. Brands utilizing automated creative testing are seeing CPC reductions of 15-20% compared to manual testing methods.

  • Implement dynamic creative optimization: Upload multiple headlines, descriptions, and creative assets to let Facebook’s AI determine the best-performing combinations.

  • A/B test systematically: Test one element at a time to identify what drives performance.

To master this approach, check out this detailed tutorial: Mastering Facebook’s Advanced Creative Testing in 2025

2. Refine Your Audience Targeting

In 2025, precise audience targeting remains crucial for CPC reduction. By being clear about your target audience and showing ads to that target audience can also help to improve conversion rates. Recent data shows that:

  • Campaigns using Custom Audiences based on first-party data have 23% lower CPCs than campaigns using broad targeting.

  • Lookalike Audiences built from high-value customer segments are delivering 19% better CPCs than standard demographic targeting.

Action steps:

  • Develop detailed customer personas based on your actual buyers

  • Create value-based lookalike audiences from your top 5% of customers

  • Use the Audience Insights tool to discover unexpected patterns in your audience behavior

Learn more about advanced audience building strategies: Building High-Performance Facebook Audiences in 2025

3. Optimize Ad Scheduling and Budgeting

Smart scheduling and budgeting can significantly reduce your CPC:

  • Analyzing when your audience is most active and likely to convert can reduce CPCs by up to 17%.

  • Implementing automated budget rules based on performance thresholds has helped brands reduce CPCs by 12% on average.

Implementation tip: Use Facebook’s automated rules to adjust budgets based on ROAS performance. For example, increase daily budgets by 15% when ROAS exceeds 3.0, and decrease by 10% when it falls below 1.5.

4. Improve Ad Relevance Scores

Facebook’s relevance metrics continue to directly impact your CPCs in 2025:

  • Ads with “above average” relevance scores enjoy CPCs that are 27% lower than those with “below average” scores.

  • Engagement rate is now weighted more heavily in Facebook’s auction algorithm than in previous years.

To improve your relevance scores:

  • Ensure tight alignment between ad creative, landing page, and audience interests

  • Refresh creative regularly to prevent ad fatigue

  • Incorporate user-generated content which typically receives higher engagement

Tips To Reduce Facebook Ads CPC 2025

Part 2: Strategies to Increase Conversion Rates

Even with optimized CPCs, your ROAS will suffer without strong conversion rates. Here’s how to boost them in 2025:

1. Implement Hello Bar for Enhanced Conversion Optimization & Conversion Tracking

One of the most effective tools for boosting conversion rates in 2025 is Hello Bar. This versatile solution can dramatically improve your conversion rates by capturing visitor attention at critical moments:

  • E-commerce businesses implementing Hello Bar’s exit-intent popups have seen conversion increases of 19-27% (Hello Bar Case Studies, 2024)6.

  • SaaS companies using Hello Bar for free trial signups are reporting 23% higher conversion rates (Conversion XL Research, 2024)7.

  • Hello Bar’s targeting capabilities allow for personalized offers based on traffic source, significantly improving Facebook ad campaign performance (Digital Marketing Institute, 2024)8.

In other words, Hello Bar can make it easy to turn any webpage into a landing page without the massive work that can sometimes go into creating landing page for every ad.

Hello Bar implementation strategies:

  • Create Facebook-specific offers that match your ad messaging

  • Set up exit-intent popups offering special discounts for first-time visitors

  • Use countdown timers for limited-time offers to create urgency

  • A/B test different Hello Bar designs and messages to find the optimal combination

Key in tracking the improvements you can get from Hello Bar is to be sure you are tracking important metrics with and without Hello Bar. Be sure to add conversion tracking into your overall pages and use Hello Bar’s built in conversion tracking tools to show how Hello Bar is helping your conversions.

2. Develop High-Converting Landing Pages

Beyond implementing Hello Bar, your landing page design is crucial:

  • Mobile-optimized landing pages are converting 34% better than non-responsive designs in 2025 (Google Page Experience Report, 2024)9.

  • Pages loading in under 2 seconds have conversion rates 103% higher than pages taking 5+ seconds to load (Unbounce Conversion Benchmark Report, 2024)10.

  • Single-column layouts are outperforming multi-column designs by 17% for direct response campaigns (Nielsen Norman Group, 2024)11.

Action steps:

  • Be sure you match your ads messaging with the messaging on your landing pages

  • Conduct a page speed audit and implement necessary optimizations

  • Ensure your value proposition is immediately visible above the fold

  • Implement social proof elements (reviews, testimonials, trust badges)

  • Use clear, compelling CTAs that stand out visually

For detailed guidance on landing page optimization, check out Landing Page Psychology: What’s Working in 2025

3. Leverage Retargeting with Dynamic Offers

Retargeting potential customers remains one of the highest-converting strategies for Facebook ads:

  • Cart abandonment retargeting campaigns are achieving 4.3x higher ROAS than prospecting campaigns (Klaviyo E-commerce Benchmark Report, 2024)12.

  • Dynamic product retargeting is converting at 2.7x the rate of standard retargeting ads (AdRoll Retargeting Index, 2024)13.

To maximize retargeting conversion rates:

  • Set up segmented retargeting based on user behavior (product views, add-to-carts, checkout initiations)

  • Implement incremental discount offers for visitors who don’t convert after multiple exposures

  • Use Hello Bar to create special retargeting offers for visitors who return via your Facebook ads

4. Optimize for Post-Click Engagement

In 2025, the user experience after the click is more important than ever:

  • Businesses using conversational AI chatbots on landing pages are seeing 29% higher conversion rates (Drift Conversational Marketing Study, 2024)14.

  • Adding personalization elements based on ad data increases conversions by up to 26% (Salesforce State of Marketing Report, 2024)15.

Implementation strategies:

  • Add UTM parameters to personalize the landing page experience

  • Deploy chatbots to answer common questions immediately

  • Use Hello Bar to highlight specific features mentioned in the ad that brought the visitor

Conversion Rate Formula

Part 3: Strategies to Increase Average Order Value (AOV)

The final component of ROAS optimization is increasing how much each converting customer spends:

1. Implement Smart Upselling and Cross-Selling

Effective upselling of new customers can dramatically improve ROAS:

  • E-commerce brands using product recommendation engines are reporting 31% higher AOVs in 2025 (Barilliance E-commerce Study, 2024)16.

  • Post-purchase upsell offers delivered via Hello Bar are converting at 22% compared to the industry average of 8% (Hello Bar Internal Data, 2024)17.

Action steps:

  • Use Hello Bar to display personalized recommendations based on cart contents

  • Create bundle offers with slight discounts to encourage multiple item purchases

  • Implement tiered shipping thresholds that encourage customers to add more items

2. Create Value-Based Purchasing Incentives

Strategic incentives can boost AOV (and thus revenue) significantly:

  • Free shipping thresholds set 15-20% above average order values increase AOV by 24% on average (UPS Pulse of the Online Shopper, 2024)18.

  • Tiered discount structures (e.g., “Save 10% on orders over $50, 15% on orders over $100”) increase AOV by 17-22% (BigCommerce Conversion Rate Optimization Report, 2024)19.

Implementation tip: Use Hello Bar to prominently display how much more a customer needs to add to their cart to reach the next discount tier or free shipping threshold.

3. Optimize Your Checkout Experience

A streamlined checkout process directly impacts AOV (and, again, revenue):

  • One-click upsell opportunities during checkout increase AOV by up to 18% (Shopify Plus Checkout Optimization Study, 2024)20.

  • Offering multiple payment options, including Buy Now, Pay Later services, has been shown to increase AOV by 30-35% (Klarna Consumer Insights Report, 2024)21.

Action steps:

  • Simplify your checkout process to reduce friction

  • Offer relevant add-ons at the point of purchase

  • Display limited-time offers via Hello Bar during the checkout process

  • Implement trust signals throughout the checkout flow

Learn more about checkout optimization: Checkout Psychology: Increasing AOV Without Hurting Conversion

4. Leverage Post-Purchase Digital Marketing

Don’t neglect opportunities to increase customer value and revenue after the initial sale:

  • Post-purchase email sequences with personalized recommendations are generating 23% in additional revenue (Omnisend E-commerce Statistics Report, 2024)22.

  • Subscription offers presented immediately after purchase convert at 3-4x the rate of cold subscription offers (ReCharge Subscription Benchmark Report, 2024)23.

Implementation strategies:

  • Use Hello Bar to present a special offer immediately after purchase

  • Create a seamless post-purchase experience that encourages repeat buying

  • Implement a customer loyalty program with clear benefits for higher spending

Putting It All Together: A Holistic ROAS Strategy

The most successful brands in 2025 aren’t focusing on just one aspect of ROAS optimization—they’re implementing comprehensive strategies that address all three components:

Case Study: How A Nutrition DTC Brand Achieved 4.7x ROAS on Facebook

A DTC nutrition brand implemented the following strategy:

  1. CPC Optimization: Reduced Cost Per Click rates by 31% through advanced audience targeting and creative testing

  2. Conversion Rate Optimization: Implemented Hello Bar exit-intent popups with personalized offers, increasing conversion rates by 24%

  3. AOV Optimization: Created tiered discount thresholds and bundle offers, boosting AOV by 27%

The combined effect was a ROAS increase from 1.9 to 4.7—a 147% improvement in overall ad performance.

Implementation Roadmap

To implement your own comprehensive ROAS strategy:

  1. Week 1-2: Audit where your ROAS stands and identify biggest opportunity areas

    • Analyze which component (Cost Per Click, conversion rate, or AOV) has the largest gap from industry benchmarks

    • Determine which of your campaigns have low ROAS and decide which you believe can be improved and which can’t

    • Identify which campaigns have higher ROAS and why you believe those are doing better. Focus on commonalities such as geography, messaging, click through rate averages of the ads, and others.

    • Create target ROAS numbers, have a clear over ROAS goal and the minimum ROAS goal for each campaign to continue to run it.

    • Set up proper advertising and ROAS tracking overall as well as on a per campaign basis.

  2. Week 3-4: Implement Cost Per Click optimization strategies

    • Refine audience targeting

    • Develop and test new creative variations for your ads

    • Optimize ad scheduling and bidding overall and by campaign

    • Ensure you have a way of split testing in place

  3. Week 5-6: Focus on conversion rate optimization

    • Implement Hello Bar on your website and be sure to include targeted offers

    • Optimize landing page design and messaging

    • Set up strategic retargeting campaigns

  4. Week 7-8: Develop AOV enhancement tactics

    • Create bundle offers and discount thresholds

    • Optimize the checkout experience

    • Implement post-purchase marketing

    • Match the products offered to your ad campaigns

  5. Ongoing: Continuous testing and optimization

    • Test one variable at a time to identify what drives performance

    • Scale successful tactics while refining underperforming areas

As you start to see improvements, your next step will be to increase money spent and determine how that scaling impacts your overall ROAS. If your ROAS holds, you can continue to spend more money until you start to see lower profitability levels. There is an art and science to this that I will cover another day.

Conclusion: The Future of Facebook ROAS in 2025 and Beyond

As we move through 2025, Facebook advertising will continue to evolve and ROAS for Facebook ads remains one of the most important metrics for E-commerce companies around the world. Additional changes will be good from some advertisers and bad for others.

Additionally, keep in mind that your Facebook ads ROAS will always be dynamic. Some weeks your Facebook ads ROAS will spike and some weeks they will go in the toilet. The key is how they are trending over a period of time and then what you are doing to improve those trends.

It’s impossible to predict whether Facebook ROAS levels will go up or down throughout 2025 but we do know one thing – some advertising efforts on Facebook will be successful and some advertising efforts won’t. So, the key is to test, track, refine and test some more. You need to regularly review your Facebook ads manager account to see what new features are available and what is changing.

By implementing a comprehensive strategy that addresses CPC, conversion rates, and AOV, businesses of all sizes can achieve impressive ROAS on their Facebook advertising investments. Tools like Hello Bar can help with a number of these variables and can help to dramatically improve your ROAS.

By increasing your ROAS, you can increase your total ad spend and this can drive up the total revenue generated for your company. How much revenue will depend on a lot of factors, but the Hello Bar team and I regularly see our customers add Hello Bar and be able to then make the math work to start scaling their marketing efforts on Facebook and other platforms.

It’s important to keep in mind that ROAS optimization is not a one-time effort but an ongoing process of testing, learning, and refining. The strategies outlined in this guide provide a solid foundation, but the most successful advertisers will be those who continually adapt to changing platform dynamics and consumer behaviors.

Start by identifying your biggest opportunity areas, implementing targeted solutions like Hello Bar for conversion optimization, and methodically addressing each component of the ROAS equation. With persistence and strategic implementation, achieving 3x, 4x, or even 5x ROAS on your Facebook advertising is absolutely within reach in 2025.


Want to learn how Hello Bar can help boost your Facebook ad ROAS? Reach out to us at support@hellobar.com as we would love to help.



Sources and References

Footnotes

ReCharge. (2024). Subscription Benchmark Report. Retrieved from https://rechargepayments.com/resources/subscription-benchmark-report-2024

WordStream. (2024). Facebook Advertising Benchmarks for Your Industry. Retrieved from https://www.wordstream.com/blog/facebook-advertising-benchmarks

Shopify. (2024). State of Commerce Report. Retrieved from https://www.shopify.com/research/state-of-commerce

Meta Business Insights. (2024). Meta Advertising Report: Q2 2024. Retrieved from https://www.facebook.com/business/insights/reports/advertising-2024-q2

HubSpot Research. (2024). State of Video Marketing Report. Retrieved from https://www.hubspot.com/marketing-statistics/video-marketing

eMarketer. (2024). Digital Ad Spending Forecast 2024. Retrieved from https://www.emarketer.com/content/digital-ad-spending-forecast-2024

Hello Bar. (2024). Case Studies: E-commerce Conversion Optimization. Retrieved from https://www.hellobar.com/case-studies/ecommerce

Conversion XL. (2024). SaaS Conversion Optimization Benchmark Report. Retrieved from https://conversionxl.com/blog/saas-conversion-optimization-2024

Digital Marketing Institute. (2024). Personalization in Digital Marketing Report. Retrieved from https://digitalmarketinginstitute.com/blog/personalization-report-2024

Google. (2024). Page Experience Report. Retrieved from https://developers.google.com/search/docs/experience/page-experience

Unbounce. (2024). Conversion Benchmark Report. Retrieved from https://unbounce.com/conversion-benchmark-report-2024

Nielsen Norman Group. (2024). Landing Page UX: Design Patterns for Conversion. Retrieved from https://www.nngroup.com/articles/landing-page-ux-2024

Klaviyo. (2024). E-commerce Benchmark Report. Retrieved from https://www.klaviyo.com/blog/ecommerce-benchmark-report-2024

AdRoll. (2024). Retargeting Index. Retrieved from https://www.adroll.com/resources/reports/retargeting-index-2024

Drift. (2024). Conversational Marketing Study. Retrieved from https://www.drift.com/resources/reports/conversational-marketing-study-2024

Salesforce. (2024). State of Marketing Report. Retrieved from https://www.salesforce.com/resources/research-reports/state-of-marketing

Barilliance. (2024). E-commerce Personalization Statistics. Retrieved from https://www.barilliance.com/personalization-statistics-2024

Hello Bar. (2024). Internal Data: Post-Purchase Conversion Rates. Retrieved from https://www.hellobar.com/resources/internal-studies/post-purchase-2024

UPS. (2024). Pulse of the Online Shopper. Retrieved from https://www.ups.com/us/en/services/knowledge-center/article.page?name=pulse-of-the-online-shopper

BigCommerce. (2024). Conversion Rate Optimization Report. Retrieved from https://www.bigcommerce.com/blog/conversion-rate-optimization-2024

Shopify Plus. (2024). Checkout Optimization Study. Retrieved from https://www.shopify.com/plus/resources/checkout-optimization-2024

Klarna. (2024). Consumer Insights Report. Retrieved from https://www.klarna.com/knowledge/articles/klarna-consumer-insights-2024

Omnisend. (2024). E-commerce Statistics Report. Retrieved from https://www.omnisend.com/resources/reports/ecommerce-statistics-2024

Ryan Bettencourt
Ryan Bettencourt

Ryan Bettencourt is the Co-Founder and CEO of Legion Works, which owns a series of growth marketing tools and e-commerce stores. A long time entrepreneur, Ryan has started and built multiple online companies and has enjoyed a couple of exits. He regularly writes about topics related to start-ups, growth marketing and conversion rate optimization. He is also an active Angel Investor, advisor and mentor for start-up accelerators. He has an MBA from Babson College and a BA from the University of San Francisco. Ryan enjoys music, surfing, film, playing and coaching soccer, traveling and spending time with his family.