What is a good ROAS for my industry?

A 'good' ROAS varies by industry. Generally, hitting the 'Good' column in our benchmark table (typically 4-6× for most industries) indicates strong performance. However, you should also calculate your break-even ROAS based on your profit margins to set a meaningful baseline.

Why is my ROAS lower than the benchmark?

Several factors can cause below-benchmark ROAS: poor audience targeting, weak ad creatives, low landing page conversion rates, high competition in your niche, or tracking issues. Start by verifying your tracking, then analyze each step of your funnel.

How often do benchmarks change?

Industry benchmarks typically shift 10-20% year over year due to changing competition, platform algorithm updates, and market conditions. We update our data annually and note significant mid-year changes.

Should I compare to average or good benchmarks?

If you're just starting, target the 'Average' benchmark first. Once you consistently hit average, work toward 'Good'. Comparing to 'Excellent' can set unrealistic expectations and lead to poor decisions.

Are these benchmarks global or US-specific?

These benchmarks are primarily based on US market data. International markets may vary significantly—CPCs are often lower in non-US markets, which can result in higher ROAS. Apply a 20-30% adjustment for other English-speaking markets.

ROAS Benchmarks by Industry (2025)

Master ROAS Benchmark Table

This table shows ROAS benchmarks across major industries. Use it to compare your performance:

ROAS Benchmarks by Platform

Different advertising platforms have different typical ROAS ranges:

Google Ads Benchmarks

Meta/Facebook Ads Benchmarks

Amazon Ads Benchmarks

Amazon uses ACOS (Advertising Cost of Sale) which is the inverse of ROAS:

Understanding Benchmark Variations

Why Benchmarks Vary

Profit Margins

High-margin businesses can be profitable at lower ROAS

Customer LTV

SaaS has high LTV, justifying higher acquisition costs

Competition

Highly competitive industries have lower ROAS

Seasonality

Travel and retail vary significantly by season

Geography

US typically has higher CPCs than other markets

Factors Affecting Your ROAS

Your product profit margins
Customer repeat purchase rate
Business stage (growth vs. profit)
Brand awareness level
Target audience specificity

How to Use These Benchmarks

Follow these steps to effectively use industry benchmarks:

Find Your Industry

Locate the industry category that best matches your business. If you're between categories, use the more conservative estimate.

Adjust for Your Margins

If your margins are higher than industry average, you might be profitable at lower ROAS. Calculate your break-even ROAS for a precise target.

Consider Your Goals

Growth-stage companies can accept lower ROAS for market share. Profitability-focused companies should target 'Good' or higher.

Set Realistic Targets

Start by targeting 'Average', then optimize toward 'Good'. Don't expect to hit 'Excellent' immediately.

Need to calculate your break-even ROAS? Use our calculator to find your minimum profitable ROAS based on your margins.

Break-even ROAS Calculator

Data Sources & Methodology

Our benchmarks are compiled from multiple authoritative sources:

Source	Reliability	Coverage
Google Ads Industry Reports	High	Google Ads platform
Meta Business Suite Data	High	Facebook/Instagram
WordStream Industry Reports	Medium-High	Multi-platform
Industry White Papers	Medium	Sector-specific

⚠️ Disclaimer: Benchmarks are for reference only. Actual performance varies based on many factors. We recommend combining industry benchmarks with your own historical data for the most accurate targets. Data may be subject to regional and temporal variations.

ROAS Benchmarks by Industry