Table of Contents

1. What is a Good ROAS?
2. ROAS Benchmarks By Industry
3. What Makes a Good ROAS Benchmark?
4. ROAS Benchmarks for Different Industries
   • Market Conditions
   • Business Model Impact
5. Different Levels of ROAS and What They Indicate
6. Setting Strategic ROAS Targets
7. Optimizing Your ROAS Strategy

What is a Good ROAS?

Determining what constitutes a good ROAS depends on several factors including industry benchmarks and specific business contexts.

ROAS Benchmarks By Industry:

Industry-specific ROAS benchmarks vary significantly:

• E-commerce: 4:1 to 6:1
• B2B Technology: 3:1 to 5:1
• SaaS: 3:1 to 4:1
• Enterprise Software: 2:1 to 3:1

In tech, SaaS, and B2B sectors, a ROAS of 3:1 or higher typically indicates strong performance. This benchmark reflects the complex sales cycles and high-value transactions common in these industries. We have pulled data and put together an entire Saas Marketing Benchmark report here.

This means that for every dollar spent on advertising, generating at least three dollars in revenue is a solid performance indicator. Benchmarks can vary widely depending on the market dynamics and competition.

What Makes a Good ROAS Benchmark?

When setting ROAS targets, consider:

• Customer acquisition costs (CAC)
• Lifetime value (LTV)
• Profit margins
• Market position
• Growth stage

ROAS Benchmarks for Different Industries

Your optimal ROAS benchmark depends on several key factors:

Market Conditions

• Competitive markets often require higher ROAS
• Market saturation impacts achievable returns
• Industry maturity affects benchmark expectations

Business Model Impact

• Subscription-based: Focus on long-term customer value
• One-time purchase: Immediate revenue requirements
• Enterprise deals: Lower ROAS acceptance due to higher deal values

Different Levels of ROAS and What They Indicate

Understanding different ROAS levels helps in interpreting performance:

Setting Strategic ROAS Targets

When establishing ROAS targets, consider:

• Historical performance data
• Competitive landscape
• Growth objectives
• Available marketing budget
• Sales cycle length

For smaller companies, achieving higher ROAS is often crucial due to budget constraints. Larger enterprises might accept lower ROAS figures while focusing on market share growth.

Optimizing Your ROAS Strategy

Success in achieving ROAS benchmarks requires:

• Regular performance monitoring
• Campaign optimization
• Target adjustment based on market conditions
• Alignment with broader business objectives

For deeper insights into optimizing your ROAS strategy and achieving marketing efficiency, explore our comprehensive resources and case studies to see how leading B2B firms are navigating the evolving landscape of digital advertising.