The concept in practice.
Why a benchmark is never an answer key
Any ROAS benchmark should be read with caution. Numbers vary wildly with margin, price point, industry, the share of new vs. existing customers, and how mature the account is.
Read this sectionWhy a benchmark is never an answer key
Any ROAS benchmark should be read with caution. Numbers vary wildly with margin, price point, industry, the share of new vs. existing customers, and how mature the account is. An "industry average" can therefore be directly misleading for your specific business.
What matters isn't whether you beat the average, but whether you beat your break-even ROAS, the ROAS at which contribution margin covers the ad cost. It's found as 1 divided by your margin, and it's personal to your economics.
The realistic ranges we see
As a directional reference — not a promise — attributed ROAS on well-run Meta accounts typically sits in the low to mid single digits, depending on the balance between prospecting and retargeting. Pure retargeting campaigns show higher numbers, but they're also the least incremental.
Google Shopping and brand searches often show higher attributed ROAS than Meta, because they catch demand further down the funnel. That doesn't necessarily make them more valuable — a high brand ROAS is partly demand your other channels created.
Read the benchmark blended
Because every platform credits itself for the same sales, it makes more sense to judge performance on MER — total revenue against total spend — than to chase a high ROAS on each individual channel. A healthy blended number with lower platform ROAS beats a flattering platform number you can't find in the bank.
In short: use benchmarks to calibrate expectations, not to set targets. The target is set by your margin and your growth ambition, not by an average from an industry you only partly resemble.
Frequently asked questions
What's a good ROAS in e-commerce?
The one that sits above your break-even ROAS and contributes to your growth goal. Break-even is found as 1 divided by your margin — with a 40% margin, you need to be above a ROAS of 2.5 to make money on the order. An industry average says less than your own break-even.
Why can't I just aim for the industry's average ROAS?
Because the average hides enormous differences in margin, price point and customer mix. Two brands in the same industry can have wildly different break-even ROAS. Steer by your own economics rather than a number describing an average business you aren't.
From insight to action
See how it applies in practice.
Website, channels and profit measurement
The Løgbutikken engagement covered the website, email, Meta, Google Ads and ProfitMetrics. The business grew and was subsequently acquired.
Read the caseMeasurement and customer economics
Discuss measurement and bidding
We review the values you measure and how they can inform budget decisions.
Choose a time30 minutes · No obligation
About the author
Nicklas Segatz Mortensen
Growth hacker and fractional CMO with 10+ years' experience and hundreds of millions in managed ad spend behind him. Background from larger Danish and international scale-ups, and from the agency world.
Meet the team