Return on Ad Spend (ROAS) is one of the most used—and most misinterpreted—metrics in digital marketing. Everyone wants to know: “What’s a good ROAS?” But the real answer depends on far more than just the number itself.
In this article, we unpack why ROAS is so difficult to benchmark across industries, and what smarter marketers should track instead.
What is ROAS?
ROAS = Revenue / Ad Spend
If you spend $100 and generate $300 in sales, your ROAS is 3x.
But that doesn’t mean you’re profitable—because it doesn’t account for costs, margins, or customer lifetime value.
2025 Industry Benchmarks (Updated Averages)
| Industry | Average ROAS (2025) |
|---|---|
| E-commerce (General) | 2.8 – 4.5x |
| Fashion | 3.0 – 5.5x |
| Beauty & Skincare | 2.0 – 4.0x |
| Furniture & Home | 2.5 – 3.5x |
| B2B SaaS | 1.2 – 2.0x |
| Real Estate | 5.0 – 10x |
| Healthcare Services | 3.0 – 6.0x |
Note: A low ROAS in one industry might be normal due to higher margins or longer LTV.
⚠️ Why ROAS Alone Isn’t Enough
ROAS tells you how much revenue you’re getting from your ad spend, but it doesn’t tell you:
- Are you profitable?
- What’s your net return after product, shipping, and operations?
- Are you acquiring valuable customers or one-time buyers?
✅ Better Metrics to Track with ROAS
- Blended ROAS (across all channels)
- MER (Marketing Efficiency Ratio)
- Profit per Order / per Acquisition
- LTV:CAC Ratio
- Contribution Margin
Final Thought: Context > Numbers
At Stork Advertising, we help you see beyond the numbers. We focus on building healthy ad accounts that scale profitably—not just chase high ROAS vanity.
Whether you’re in fashion, food, real estate, or B2B—we tailor your tracking systems and optimize for growth that makes financial sense.
Want to know what ROAS is realistic for your industry in 2025?
Ask for a free audit. We’ll show you what’s working—and what’s costing you money.
