Master ROAS Benchmark Table
This table shows ROAS benchmarks across major industries. Use it to compare your performance:
| Industry | Average | Good | Excellent | Notes |
|---|---|---|---|---|
| E-commerce (General) | 2.5× | 4×+ | 6×+ | Varies by product type |
| Fashion & Apparel | 2.5× | 4×+ | 6×+ | Seasonal variation |
| Beauty & Cosmetics | 3× | 5×+ | 7×+ | High repeat purchase |
| Electronics | 2× | 3×+ | 5×+ | Lower margins |
| Home & Garden | 2.5× | 4×+ | 6×+ | Larger AOV |
| SaaS B2B | 5× | 7×+ | 10×+ | High LTV |
| SaaS B2C | 4× | 6×+ | 8×+ | Lower LTV than B2B |
| Lead Generation | 3× | 5×+ | 7×+ | Depends on lead value |
| Financial Services | 4× | 6×+ | 8×+ | High customer value |
| Travel & Hospitality | 2× | 4×+ | 6×+ | Highly seasonal |
| Education | 3× | 5×+ | 7×+ | Long decision cycle |
| Health & Wellness | 3× | 5×+ | 7×+ | Growing market |
Last updated: December 2024. Benchmarks are based on US market data.
ROAS Benchmarks by Platform
Different advertising platforms have different typical ROAS ranges:
Google Ads Benchmarks
| Industry | Search | Display | Shopping |
|---|---|---|---|
| E-commerce | 4× | 2× | 5× |
| SaaS | 6× | 3× | N/A |
| Lead Gen | 5× | 2.5× | N/A |
| Retail | 3.5× | 1.5× | 4× |
Search typically has highest ROAS due to high intent
Meta/Facebook Ads Benchmarks
| Industry | Average | Top 25% |
|---|---|---|
| E-commerce | 2.5× | 4×+ |
| SaaS | 4× | 6×+ |
| Lead Gen | 3× | 5×+ |
| Retail | 2× | 3.5×+ |
Performance varies significantly by creative quality
Amazon Ads Benchmarks
Amazon uses ACOS (Advertising Cost of Sale) which is the inverse of ROAS:
| Category | Avg ACOS | Avg ROAS |
|---|---|---|
| Electronics | 25% | 4× |
| Home & Kitchen | 20% | 5× |
| Fashion | 30% | 3.3× |
| Beauty | 22% | 4.5× |
ROAS = 1 ÷ ACOS
Understanding Benchmark Variations
Why Benchmarks Vary
Profit Margins
High-margin businesses can be profitable at lower ROAS
Customer LTV
SaaS has high LTV, justifying higher acquisition costs
Competition
Highly competitive industries have lower ROAS
Seasonality
Travel and retail vary significantly by season
Geography
US typically has higher CPCs than other markets
Factors Affecting Your ROAS
- Your product profit margins
- Customer repeat purchase rate
- Business stage (growth vs. profit)
- Brand awareness level
- Target audience specificity
How to Use These Benchmarks
Follow these steps to effectively use industry benchmarks:
Find Your Industry
Locate the industry category that best matches your business. If you're between categories, use the more conservative estimate.
Adjust for Your Margins
If your margins are higher than industry average, you might be profitable at lower ROAS. Calculate your break-even ROAS for a precise target.
Consider Your Goals
Growth-stage companies can accept lower ROAS for market share. Profitability-focused companies should target 'Good' or higher.
Set Realistic Targets
Start by targeting 'Average', then optimize toward 'Good'. Don't expect to hit 'Excellent' immediately.
Need to calculate your break-even ROAS? Use our calculator to find your minimum profitable ROAS based on your margins.
Break-even ROAS CalculatorData Sources & Methodology
Our benchmarks are compiled from multiple authoritative sources:
| Source | Reliability | Coverage |
|---|---|---|
| Google Ads Industry Reports | High | Google Ads platform |
| Meta Business Suite Data | High | Facebook/Instagram |
| WordStream Industry Reports | Medium-High | Multi-platform |
| Industry White Papers | Medium | Sector-specific |
⚠️ Disclaimer: Benchmarks are for reference only. Actual performance varies based on many factors. We recommend combining industry benchmarks with your own historical data for the most accurate targets. Data may be subject to regional and temporal variations.