Question 1

What is a good ROAS?

Accepted Answer

Good ROAS depends on profit margins. With 50% margins, need minimum 2:1 ROAS to break even. Target 4:1 or higher for healthy profitability. High-margin businesses can succeed with lower ROAS.

Question 2

How do I improve ROAS?

Accepted Answer

Improve targeting to reach high-intent customers, optimize ad creative, improve landing pages to increase conversion, increase average order value, and reduce wasted ad spend on poor performers.

Question 3

ROAS vs ROI: what's the difference?

Accepted Answer

ROAS measures revenue return from ad spend. ROI measures profit return including all costs (COGS, overhead). ROAS is simpler to track, ROI gives true profitability picture.

Question 4

Should I maximize ROAS?

Accepted Answer

Not always - maximizing ROAS often means reducing spend to only absolute best performers, which limits growth. Balance ROAS optimization with volume goals for sustainable scaling.

ROAS Calculator - Return on Ad Spend