A good target ROAS for Google Ads falls between 200–800% for most businesses, with most aiming for at least 300%. But your profit margins, customer lifetime value, and industry all affect what "good" actually means for you.

Calculating ROAS

ROAS measures the return you generate per dollar spent on advertising. The formula:

ROAS = (Revenue from conversions − Ad spend) ÷ Ad spend

Example: Spend €1,000, earn €5,000 in revenue from those clicks:

(€5,000 − €1,000) ÷ €1,000 = 400% ROAS

Aim for at least 200%+ so profits sufficiently exceed ad costs. Anything under 100% means you're losing money on every euro spent.

Industry Benchmarks

Setting realistic expectations requires knowing what's average for your vertical. ROAS benchmarks vary significantly between industries.

Industry Typical ROAS Range Notes
Lead Generation 1,200%+ Leads have high perceived value; strong optimisation can push much higher
SaaS & Subscriptions 300–500% High margins + recurring LTV make aggressive spend viable
E-commerce 150–400% Most online retail brands; wide range based on margins and AOV
Informational / Content 200%+ Still achievable by promoting high-value guides and templates
Brand Awareness Track differently Focus on reach, impressions, and CTR rather than direct ROAS

ROAS Targets by Business Model

Your profit margins, customer lifetime value (LTV), and competitive landscape all dictate your ideal target. Industry averages are a starting point — your actual target should be built from your own unit economics.

Software · Services · Lead Gen

High-Margin Models

Margins around 75–90%. Monthly contracts amortise LTV over long periods, giving flexibility for aggressive spend while maintaining profitability.

300–800%

Online Retail · Consumer Goods

Mainstream E-commerce

Typical margins 30–60%. Average order values usually limit LTV to around 1× cost. Combined with rising CPCs in competitive sectors, efficiency matters.

150–450%

Electronics · FMCG · CPG

Low-Margin, High-Volume

Margins only 15–40%. One-time purchase value caps LTV. Stay lean and optimise for volume. Measure incremental benefits over broader time frames.

200–300%

Four Ways to Improve Your ROAS

  1. Audit your ad groups. Shut down low-performing keywords dragging down overall ROAS. A small number of keywords often drives most of your value.
  2. Enable automated bidding. Smart bidding leverages conversion data for better traffic allocation decisions. It works best once you have sufficient conversion volume (50+ conversions per month per campaign).
  3. A/B test ad copy. Fine-tune messaging to resonate with your specific audiences. Even small improvements in CTR compound significantly over time.
  4. Retarget engaged visitors. Remarket high-funnel users who already know your brand. These audiences convert at lower CPA and strengthen overall ROAS.

A lift of even +5–10% ROAS can generate tens of thousands in extra revenue at scale. Continuous optimisation compounds — set a target, track weekly, and adjust systematically.

Quick Reference: ROAS by Industry

  • Lead Generation: 1,200%+
  • SaaS & Subscriptions: 300–500%+
  • E-commerce: 150–400%+
  • Informational: 200%+
  • Brand Awareness: Track reach, CTR, and impression share instead

The Bottom Line

There is no universal "good" ROAS. The right target is built from your own margins, LTV, competitive landscape, and growth stage. Use the benchmarks above as a starting point — then set your actual target based on what your business needs to remain profitable at scale.

If you're running Google Ads and unsure whether your ROAS targets are calibrated correctly, we offer free account audits that include a full performance benchmark against your specific industry and margins.