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Unlock Growth with Paid Ads and Precision Targeting
Today you'll learn why paid ads are important, how to find the channel to start advertising on, along with tips that will get you closer to true success.
Hey there! 😊
I hope you’re enjoying your Monday - I know these are meant to come out on Sundays but I was dealing with flight interruptions and delays coming back from Toronto.
I’m currently cuddling with my dog who I haven’t seen for a month now… (I will send a photo of him in the future)
But enough about me, let’s dive into something I’m really excited to talk about today: Paid Ads for SaaS. If you’re looking to drive growth, increase your LTV, and get better results from your ad spend, you’re in the right place.
Let’s break it down:
Why Paid Ads Are Crucial for
SaaS Growth
In the SaaS world, paid ads aren’t just about driving clicks - they’re about long-term relationships. A solid paid ads strategy can help reduce customer acquisition costs (CAC), boost lifetime value (LTV), and improve your overall return on ad spend (ROAS).
Unlike traditional eCommerce, SaaS is all about the subscription model, so we’re playing the long game here. You want your customers to stick around, reduce churn, and move them from trial to paid as seamlessly as possible. And this is where hyper-targeted, well-optimized paid campaigns come into play.
Facebook, Google, TikTok, LinkedIn….. What should I use?
The space can get quite tricky when it comes to building a paid media strategy. Many people fail, because they don’t know what platform to invest their time and resources into.
Here’s a quick breakdown - some of you may have seen this already in my playbooks.
Your platform strategy also depends on the ad spend you are committing too. I see too many companies with lean ad spend but multiple channels… You will FAIL trying to do everything with not much.
Ad Spend vs Platform Strategy
$3,000-$5,000/Month - I’d suggest sticking to a single channel
$5,000 - $10,000/Month - You can begin to open up to a omni-channel marketing strategy
$10,000 - $30,000/Month - You need to have a strong cross functional omni-channel strategy at this point.
There’s never the golden answer when it comes to this platform and ad spend breakdown. In any case, a specific strategy must be designed to meet you business goals.
Metrics That Matter for Ads
So you’re running ads.. great! There need to be a few metrics you NEED to pay attention to.
1. CAC (Customer Acquisition Cost)
You need to know how much you’re spending to acquire each customer. CAC is essential for understanding if your campaigns are profitable. If you’re not keeping this under control, your scaling efforts will stall.
2. LTV (Lifetime Value)
This metric tells you how much revenue you can expect from a customer over their lifetime. Ideally, your LTV should be at least 3x your CAC. Focus on nurturing customers, upselling, and building long-term relationships to keep this number high.
3. ROAS (Return on Ad Spend)
A key measure of how effective your ad spend is. In SaaS, ROAS isn’t always immediate—it might take months to see the full return due to the subscription nature of the business. Make sure you’re tracking this over a longer period to get the full picture (aka through a blended LTV)
4. Churn Rate
Churn is the enemy of SaaS growth. Your paid ads strategy should focus on reducing churn by re-engaging users, keeping them active, and moving them toward higher tiers or add-ons. Retargeting is key here.
5. Conversion Rate
From free trials to demos to paid users, each stage of the funnel matters. Optimizing your conversion rate at each step is crucial for scaling. Focus on A/B testing landing pages, personalization, and trial-to-paid conversion flows.
I literally just had a consultation with a company where we audited their paid media accounts, and within a few months we had helped them grow by an additional $1M/YR. If you need help - here’s how you can book with me.
Hyper-Precise Targeting for SaaS
It’s not just about reaching as many people as possible—precision targeting is where the magic happens. Here’s what you should focus on:
Behavioral Targeting: Use tools like Facebook and Google’s data to target users based on their past behavior. If they’ve visited your site, used your free trial, or downloaded an eBook, they’re ripe for retargeting.
Account-Based Marketing (ABM): Especially for B2B SaaS, ABM is a game-changer. You can target specific companies, roles, or even individuals. LinkedIn is perfect for this, allowing you to focus on decision-makers and stakeholders like founders, directors, VPs etc.
Lookalike Audiences: Use your current customers to create lookalike audiences—people who resemble your top-performing users. This helps you find high-value customers faster, without wasting budget on low-interest groups.
Automation: Set It and Scale It
Automation can be a game-changer for your SaaS growth:
Dynamic Ads: Platforms like Facebook allow for dynamic ads that automatically show personalized content based on the user’s past interactions with your brand. This ensures relevance and helps move them through the funnel.
Email Retargeting: Don’t stop at ads—use automation in your email marketing. Tools like Klaviyo or HubSpot can trigger personalized emails when a user interacts with your ads, providing that extra nudge.
Chatbots & AI: If you’re dealing with lots of inbound inquiries, an automated chatbot can help qualify leads, saving your sales team valuable time and ensuring that no one slips through the cracks.
Summary
I wanted to keep this short and sweet - some of you told me I’m OVERLOADING you with information. I hope this was concise and to the point. If my newsletters are helping you - please let me know by tweeting at me or emailing me back.
Consultations
Many of you asked, so it’s time I open up consultations. Usually my fee is higher but my readers get a discount (🤫 shhh… don’t tell anyone)
Vendor of the Week Opportunity
If you’re a company looking to get in front of my readers (founders, investors and marketers) - email me and let’s chat about an opportunity to get you on my newsletter.
Enjoy the rest of your week! I’ll see you back in two Sundays from now.
Best,
Harsh Kang ðŸ¤
Founder at Roveir
DM me so I can follow you back 🙂