In today’s digital-first landscape, businesses must ensure every pound spent on advertising delivers a measurable return. This is where Return on Ad Spend (ROAS) becomes a key metric.
A high ROAS means your ads are driving strong revenue, while a low ROAS suggests inefficiencies in your ad strategy. However, simply running ads isn’t enough – without a tiered marketing funnel, businesses risk wasting ad spend on cold audiences who are unlikely to convert.
At Staunton Rook, we use a structured, funnel-based approach to Meta advertising that ensures your business generates leads and conversions as efficiently as possible.
What is ROAS & Why Does It Matter?
ROAS (Return on Ad Spend) is a metric used to measure the effectiveness of your advertising campaigns. It’s calculated as:
ROAS = Revenue from Ads ÷ Ad Spend
For example, if you spend £1,000 on Meta ads and generate £5,000 in revenue, your ROAS is 5:1 (or 500%).
A strong ROAS varies depending on industry, audience, and objectives, but generally, businesses should aim for a minimum of 3:1 ROAS to see profitability.
Why a Low ROAS is a Problem
Many businesses experience low ROAS due to:
- Targeting the wrong audience (e.g., cold traffic without warming them up)
- Poor ad creative or messaging that doesn’t resonate
- Lack of a structured retargeting funnel
This is where a tiered marketing funnel makes the difference.
The Importance of a Tiered Marketing Funnel
What is a Tiered Funnel?
A tiered marketing funnel moves potential customers through different advertising stages, gradually building trust and increasing conversion rates. Instead of expecting a cold audience to buy immediately, you nurture them through the funnel using specific ad types.
A typical Meta Ads funnel follows this structure:
Tier 1: Awareness (Top of Funnel – TOFU)
Objective → Introduce your brand to a wide audience.
Targeting → Cold audiences (people who haven’t engaged with your business before).
Ad Content → Engaging video ads, blog content, or educational carousels.
Example: Running a short, engaging video ad introducing your product/service to a brand-new audience.
Key Metrics to Track:
Video Views
Engagement Rates
Cost Per Click (CPC)1
Tier 2: Consideration (Middle of Funnel – MOFU)
Objective → Build trust and nurture potential customers.
Targeting → People who engaged with Tier 1 ads (e.g., watched 50%+ of a video or clicked a blog link).
Ad Content → Customer testimonials, case studies, retargeting ads with more specific messaging.
Example: Retargeting people who engaged with your first ad with a carousel ad showcasing testimonials or a limited-time offer.
Key Metrics to Track:
- Click-Through Rate (CTR)
- Landing Page Views
- Engagement Rates
Tier 3: Conversion (Bottom of Funnel – BOFU)
Objective → Get the sale or lead conversion.
Targeting → Warm leads (people who visited your website, engaged with past ads, or abandoned their cart).
Ad Content → Direct response ads, limited-time discounts, urgency-driven messages.
Example: A “Final Reminder: 10% Off Ends Tonight!” dynamic ad for users who visited the checkout page but didn’t complete their purchase.
Key Metrics to Track:
- Cost Per Acquisition (CPA)
- Conversion Rate
- ROAS
Why This Funnel Strategy Increases ROAS
- Cold audiences rarely convert immediately – By introducing them at the awareness stage, they become familiar with your brand.
- Warm audiences convert at a much higher rate – Retargeting engaged users drastically reduces ad costs and increases ROAS.
- More efficient ad spend – Instead of showing conversion ads to a broad audience, your budget is focused on high-intent users who are ready to buy.
Key Takeaways
✔ ROAS is a critical metric for measuring ad effectiveness
✔ A tiered marketing funnel increases conversions & reduces wasted spend
✔ Retargeting warm leads drastically improves ROAS
✔ Using the right ads at each stage of the funnel ensures long-term success
Ready to Improve Your ROAS?
At Staunton Rook, we specialise in building high-ROI Meta advertising campaigns that use structured marketing funnels to drive results.
Need better Meta Ad performance? Let’s talk. Get in touch today
