ROAS—Return on Ad Spend—is the golden metric marketers love to chase. But here’s the catch: it’s also the most misunderstood and misused. While everyone wants a “4x ROAS” headline, very few understand what that number really means—or how it should be measured across different industries.
Let’s break down why ROAS is so tricky, and what you should really be tracking to grow profitably.
Why ROAS Varies Wildly by Industry
ROAS isn’t a fixed benchmark—it depends heavily on:
- Profit margins
- Customer lifetime value (CLTV)
- Sales cycles
- Channel mix
Here’s an average ROAS range across industries (based on 2024 data):
| Industry | Average ROAS |
|---|---|
| E-commerce (General) | 2.5 – 4.0x |
| Fashion & Apparel | 3.0 – 5.0x |
| Health & Wellness | 2.0 – 3.5x |
| SaaS / Subscriptions | 1.0 – 2.0x* |
| Real Estate | 5.0 – 8.0x |
| Food & Beverage | 1.5 – 3.0x |
| *Lower due to long-term LTV and extended nurturing cycles. |
The Problem: ROAS ≠ Profit
A high ROAS doesn’t always mean your business is healthy.
Example:
You’re getting 4x ROAS, but your cost of goods, shipping, and operations eat up 70% of revenue. You’re barely breaking even.
This is why smart businesses focus on blended ROAS, MER (Marketing Efficiency Ratio), and profit-per-orderinstead.
What Should You Measure Instead?
✅ Blended ROAS (paid + organic)
✅ Net profit per campaign
✅ CAC vs. LTV
✅ Ad cost as % of total revenue
✅ ROAS segmented by funnel stage (awareness vs. retargeting)
Final Word: Context Is Everything
At Stork Advertising, we don’t just aim for high ROAS—we aim for sustainable growth. That means digging deeper into what’s really moving your margins, and aligning your ads with business goals—not vanity numbers.
Want a realistic audit of your ad performance across platforms?
Let’s measure what really matters—and scale what truly works.
