What is a good ROAS for Google Ads?
An in-depth look at what is a good roas for google ads and what it means for your business. Full answer and strategy on the Google Ads page.
A good ROAS depends on your margins, your customer lifetime value, and your other acquisition channels. There is no universal target.
If you are an e-commerce brand with 40% margins and no repeat purchase behavior, you probably need a 3x to 4x ROAS to break even after accounting for product costs, fulfillment, and overhead. Anything above that is profitable.
If you sell high-margin products with strong repeat purchase rates, a 2x ROAS on first purchase might still be profitable when you factor in lifetime value. If 30% of customers come back and buy again within six months, your acceptable ROAS on cold acquisition drops.
Local service businesses should not measure ROAS the same way e-commerce does. A roofing company does not care about return on ad spend. They care about cost per qualified lead and how many of those leads turn into booked jobs.
Google Ads reporting often inflates ROAS by attributing revenue to clicks that had nothing to do with the conversion. If someone clicked your ad, ignored it, then came back three weeks later through organic search and bought, Google still counts that as a Google Ads conversion. Your real ROAS is lower than the dashboard shows.
The right ROAS is the one that makes your business profitable after accounting for all costs, not just ad spend. If you are hitting a 5x ROAS but losing money because your margins are too thin, the ROAS does not matter.