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FAQs
There is no universal benchmark. A good ROI depends on your margins, customer lifetime value and the cost of the channel, so compare against your own historical performance and incrementality tests rather than industry averages.
Channel benchmarks circulate widely, but most originate with platforms and vendors and rarely survive independent measurement. Reported returns vary by industry and business model, and the same channel can look strong in a dashboard and modest under deduplicated, incrementality-adjusted analysis. The more useful question is which channel delivers the highest incremental return for your business.
Subtract total marketing cost from the revenue it generated, then divide by the marketing cost. Use incremental revenue where you can measure it, not last-click attributed revenue.
Paid channels can show returns within weeks; brand and content investments typically take months. Set the measurement window to match the buying cycle of your product.
ROAS only compares revenue to ad spend. ROI also accounts for cost of goods, production, fees and overhead, so thin margins or high fixed costs can leave ROI low even when ROAS looks strong.