Optimization solution overview

How to Optimize Ad Spend with Tomi.ai

While connecting Tomi.ai with Meta, Google Ads, and Google Analytics offers businesses a unified approach to their marketing and advertising efforts, another crucial aspect of using Tomi.ai is understanding and optimizing Return on Advertising Spend (ROAS). This metric helps businesses measure the efficiency of their advertising campaigns and serves as a foundation for Tomi.ai’s platform.

Why Metrics Are So Critical

Simply put: metrics are the best way to know what is working well and what is not.

Cost is a crucial metric because it is the basis for many calculations we use to measure the effectiveness of campaigns. Specifically, ROAS indicates how much our advertising costs are returning back to us in profits. To calculate it, we divide the profit received as a result of an advertising campaign by the cost of this campaign.

When a new client starts working with Tomi.ai, we run an A/B test after training the models. Two campaigns are launched: one is optimized with the Tomi.ai platform, and the other is a control campaign without the Tomi.ai optimization.

At the end of the A/B test, we compare the results. Actual costs don’t differ because the budgets are set the same; you will see the difference in the efficiency of how your budget is spent. The ROAS for the optimized campaign will soar, resulting in higher profits.

How to Analyze ROAS?

Data analysis is no easy task. Each advertising platform provides data, but it can be challenging to compare metrics. Alternatively, you could enter data manually into Excel or Google Sheets, but it’s not always clear where to get the respective values from each platform and how to perform the calculation.

Needless to say, managing metrics on your own can be arduous to maintain with questionable accuracy and consistency.

This is where Tomi.ai’s dashboard comes to the rescue! It consistently calculates the ROAS for various advertising platforms in one place. Tomi.ai’s dashboard makes it easy to analyze ROAS dynamics and make decisions based on accurate, real-time data.

To get the most out of your Tomi.ai Dashboard, you need to ensure all the necessary connections are made so it can present complete and accurate data.

Broadly speaking, revenue and costs are foundational for many calculated metrics. Revenue is pulled from your CRM feeds, and cost data is retrieved from the ad platforms. Further data points are gathered via the Tomi.ai Pixel and campaign data.

Let’s look at how to make all these connections and how they help you optimize your return on ad spend.

Prerequisite Steps

We assume that you’ve already read (or, even better, completed) the prerequisite steps for using the Tomi.ai platform. These include:

• connecting and configuring Tomi.ai’s events tracking script, i.e., the Tomi.ai Pixel
• training models on existing data
• linking advertising platform accounts

The next step is to retrieve data from the respective ad accounts.

What Kinds of Data Do We Collect?

Tomi.ai collects the following data points to facilitate data analysis:

• campaign IDs
• campaign costs
• campaign names (for convenience)
• campaign statuses (to separate active campaigns from completed ones, as well as to track possible errors in case the platform reports them)

How Is the Data Received Technically?

Once a day, the APIs of the respective advertising platforms are accessed and new data is downloaded. The new data is converted to a specific format and combined with existing data from previous periods. All results are stored in the Tomi.ai cloud storage.

How Are Costs Analyzed?

On the Tomi.ai dashboard, cost data is analyzed in the Project Health, Optimization, A/B Tests, and Predictive Attribution sections.

For complete and accurate analysis in the Tomi.ai dashboard, it’s crucial that all campaigns have the correct UTM tags, such as campaign ID, ad set ID, and ad ID. As the Tomi.ai Pixel collects this data, the platform can connect these data points with data from the advertising platforms.

Costs are used in the traditional metrics for evaluating the effectiveness of ad campaigns, such as:

• CPC (cost per click)
• CPA (cost per action)
• CPL (cost per lead)
• CPO (cost per order)

These metrics are mapped to the names of each ad campaign to compare the dynamics and performance of each campaign.

Sales data from your CRM feeds enables advanced analysis, such as ROAS, so you identify where exactly you are getting the best return for your ad spend.

Wrapping up

Integrating Tomi.ai with Meta, Google Ads, and Google Analytics 4 allows you to streamline your marketing efforts and optimize ad spend. By focusing on crucial metrics like ROAS, you can achieve better results and drive tangible growth for your business.

Here you can find detailed articles on how to connect each platform and leverage their full potential, ensuring that you make the most of your advertising budget. These guides will help you understand the intricacies of managing connections and maximizing the benefits of each platform.