3 Costly Mistakes Killing Your Catalog Ad ROAS (and How to Fix Them!)

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Hi, and welcome back to The ADvantage Newsletter – your go-to resource for unlocking higher returns from your e-commerce ads.

Running catalog ads on Meta can be a game-changer, helping you reach the right customers with the right products.

But small missteps in setup or strategy can quietly drain your ad spend and hold back your performance.

If your ads aren’t generating the expected results, chances are, one of these mistakes is the culprit.

This week, we’re breaking down three common yet costly catalog ad mistakes that might be limiting your ROAS—and more importantly, how to fix them for stronger results.

Let’s dive in and make sure your ads are working harder and smarter!

1. Using Simple Product Images for Catalog Ads

Most brands make the mistake of using catalog images directly from their website, often with plain white backgrounds.

These basic visuals, while consistent, lack the appeal to grab attention in a user’s feed.

Meta’s automated catalog setup is convenient, but to stand out in a crowded ad space, a touch of customization can make all the difference.

Use dynamic backgrounds, overlays, and tailored design elements to ensure your ads engage your audience and reflect your brand's unique identity. With tools like RetainIQ, you can enhance catalog images, adding design elements that turn generic product displays into captivating visuals, getting you a higher ROAS​.

Brands using customized backgrounds and overlays have seen a 36% boost in engagement, leading to higher ROAS. See some examples of effective enhancements below:

Example 1:

Example 2:

Example 3:

If you’re curious, explore some more enhanced catalog examples through this link or book a meeting using the button below to get personalized assistance.

2. Using Multiple Catalogs

Running multiple catalogs may seem advantageous, especially if you have varied product lines.

However, multiple catalogs can confuse Meta’s algorithm, which relies on consolidated learning from a single source.

By using one full-shop catalog, you allow Meta to gather extensive data over time, improving targeting and ad relevance. Switching catalogs resets this learning, which could lead to missed opportunities for effective targeting.

Stick to a single catalog for your main advertising, and let Meta optimize based on a unified data set for consistently better results.

Despite these benefits, using a single catalog can present some challenges. Here’s how you can address them with the right tools:

a. Limited Messaging Flexibility

Running multiple promotions across different product lines (e.g., offering 20% off shoes and free shipping on accessories) can be tricky with a single catalog. Meta’s default options don’t allow much customization.

With RetainIQ, you can personalize messaging for different collections within the same catalog, using our rule-based automation to highlight each promotion with the right messaging and design.

👉️ Image below shows how you can have different templates for different product rules in a single catalog!

b. Challenges with A/B Testing

One major drawback of using a single catalog is the difficulty in testing different creatives or messaging. It’s hard to know whether an alternative design would perform better if you’re limited to just one version.

RetainIQ enables A/B testing for catalog creatives, allowing you to compare different designs and messaging without resetting the learning process. Test variations while keeping your catalog’s historical data intact, ensuring continuous optimization of your ad performance.

👉️ Image below shows how you can have multiple variants for each product in a single catalog!

Our clients using a single catalog report a smoother ad learning process, better targeting and 27% better ROAS.

3. Poor Match Rate

Match Rate—how well Meta’s pixel matches your website events to products in your catalog—is vital for efficient ad targeting.

A low match rate, often below 90%, results in fewer relevant ad placements and lower ROAS.

The primary causes? Mismatched product IDs, unlinked pixels, or incomplete product data.

How to View Your Catalog Match Rate?

Here’s how you can check your catalog Match Rate to assess whether your ads are set up for success:

1. Go to Commerce Manager and select your catalog.

2. Navigate to the Catalog Tab and select Events.

3. Choose your pixel or app SDK to view detailed insights about its Match Rate.

4. Go to Catalog match rate to see the overall match rate percentage for this catalog across all relevant events measured by this pixel or SDK. Below, you can also view the match rate for specific events, such as views, adds to cart or purchases.

5. If this pixel or SDK is connected to multiple catalogs, you may also see an additional match rate percentage on the right-hand side. This is the match rate calculated across all catalogs connected to the pixel or SDK. Having multiple catalogs connected to the same pixel or SDK may split the match rate, resulting in a lower match rate per individual catalog that may negatively impact your ad performance.

Recommendations for Improving Match Rate

Here are some key recommendations to ensure your Match Rate stays above 90%:

1. Use One Catalog: Meta recommends using a single catalog (preferably a full-shop catalog) to prevent Match Rate from being split across multiple catalogs​.

2. Check Content IDs: Make sure that the Content IDs in your Meta pixel match the IDs in your product catalog exactly. Mismatched or incorrectly formatted IDs will lower your Match Rate​.

3. Verify Pixel Setup: Ensure that your pixel is correctly installed and connected to the same catalog in your Commerce Manager. Check that all standard events like ViewContent, AddToCart, and Purchase are being properly tracked​.

4. Fix Missing Products: Ensure that every item you want to advertise is present in your catalog. If items are missing, they won’t be included in targeting​.

Brands with a match rate above 90% see up to 25% more ad relevance and reach.

Final words

By addressing these three common pitfalls, you can enhance your catalog ads and maximize your ad spend. RetainIQ offers tools that not only beautify your catalog visuals but also improve match rates and consolidate learnings to keep Meta’s algorithm optimized.

Curious about how we can elevate your catalog ad game? Book a free demo today and start maximizing your ROAS with smarter catalog ads!

Let’s make your catalog ads work harder for you!