New Delhi, India
info@trysaz.com
info@trysaz.com
If you’re spending money on ads, you need to know what you’re getting back. That’s where ROAS comes in.
ROAS (Return on Ad Spend) is one of the most important metrics in digital marketing. It helps you understand how effectively your ads are generating revenue — in simple terms, how much money you’re making for every ₹1 spent on advertising.
What Is ROAS?
ROAS = Revenue from Ads / Cost of Ads
Let’s say you spent ₹5,000 on ads and earned ₹20,000 in sales.
Your ROAS would be:
₹20,000 / ₹5,000 = 4
This means you earned ₹4 for every ₹1 you spent — a ROAS of 4:1.
Why ROAS Matters
ROAS helps you:
• Measure ad profitability
• Optimize your budget
• Identify your best-performing campaigns
• Make data-backed decisions
It’s not just about traffic or clicks — ROAS tells you how much return you’re getting for the money you’re putting in.
What Is a Good ROAS?
It depends on your business and profit margins.
• For eCommerce, a ROAS of 4:1 or higher is often considered good.
• For services with low costs, even a 2:1 ROAS might be profitable.
• Break-even ROAS is the point where you’re not losing or making money. If your profit margin is 50%, your break-even ROAS is 2:1.
How to Improve Your ROAS
Here are the best ways to increase your return on ad spend:
1. Improve Targeting
If your ads reach the wrong people, you waste money. Use detailed targeting to show your ads only to people who are likely to convert.
Tips:
• Use lookalike audiences on Meta Ads
• Focus on purchase-intent keywords in Google Ads
• Exclude audiences who already converted
2. Optimize Your Landing Page
A high-converting landing page turns more visitors into buyers, increasing your ROAS.
Key elements:
• Clear headline and benefits
• One strong call-to-action (CTA)
• Fast loading time and mobile-friendly
• Testimonials and trust signals
Write Better Ad Copy & Creatives
Your ad is the first thing people see. If it’s not attractive or clear, people won’t click or buy.
Improve:
• Headline clarity (what’s the value?)
• Visuals or videos that show results or benefits
• Urgency (limited-time offers, countdowns)
4. Use Retargeting Ads
Most people don’t buy the first time they see your ad. Retargeting helps you bring them back and finish the purchase.
Use retargeting to:
• Show special offers to cart abandoners
• Remind website visitors about products
• Cross-sell or upsell to past buyers
5. Focus on High-Performing Products or Services
Not all products are equal. Spend more on ads for items that already convert well and have better margins.
Analyze:
• Bestsellers with high profit
• Low-return campaigns — pause or optimize them
• Customer Lifetime Value (CLV)
6. A/B Test Regularly
Constantly test your ads to find what works best.
Test:
• Headlines and ad text
• Images or video styles
• CTA buttons and placements
• Audience segments
Even small improvements in conversion can boost your ROAS.
7. Improve the Checkout Experience
Make it easy for users to buy.
Checklist:
• Short checkout forms
• Multiple payment options
• Mobile-optimized process
• Fast page speed
Final Thoughts
ROAS is the most real-world metric for measuring your ad success. It tells you what every ₹1 in ads is truly worth.
The key to improving ROAS is to:
• Target the right people
• Show them the right message
• Lead them to the right landing page
• And remove all friction from purchase
The more you track, test, and tweak, the better your return will be.