Understanding a Good Facebook ROAS: What's the Benchmark?

Return on ad spend (ROAS) is a crucial metric for measuring the success of your Facebook advertising campaigns. It represents the amount of revenue generated for every dollar spent on advertising. In this blog post, we will discuss several strategies for increasing your ROAS on Facebook ads.

1. Target the right audience

One of the most important factors for increasing ROAS is targeting the right audience. Facebook offers a variety of targeting options, such as demographics, interests, behaviors, and more. By using these options, you can reach the people who are most likely to be interested in your product or service. Additionally, you can use Facebook’s Lookalike Audiences feature to reach new people who are similar to your current customers.

2. Use the right ad format

Another important factor for increasing ROAS is using the right ad format. Facebook offers several ad formats, including image, video, carousel, and more. Each format has its own advantages and disadvantages, so it’s important to choose the format that best fits your goals and audience. For example, video ads are great for telling a story or showcasing a product, while carousel ads are great for showcasing multiple products or features.

3. Test and optimize

Testing and optimizing your ads is crucial for increasing ROAS. Facebook allows you to split test different ad sets and see which one performs the best. This can help you determine the best targeting options, ad formats, and ad copy for your audience. Additionally, you can use Facebook’s conversion tracking to see which ads are driving the most conversions, and optimize your campaigns accordingly.

4. Use retargeting

Retargeting is a powerful way to increase ROAS. Retargeting allows you to show ads to people who have previously interacted with your business, such as visiting your website or engaging with your content. This can help you increase conversions and sales from people who are already familiar with your brand. Facebook’s retargeting options include website custom audiences, video engagement audiences, and more.

5. Monitor and adjust your budget

Monitoring and adjusting your budget is another important step for increasing ROAS. Facebook allows you to set daily and lifetime budgets for your campaigns. By monitoring your campaigns and adjusting your budget accordingly, you can ensure that you’re getting the most out of your advertising spend. Additionally, you can use Facebook’s automatic bidding options to optimize your bids and get the most out of your budget.

To calculate your ROAS on Facebook ads, you will need to know your total revenue and total ad spend. To calculate your total revenue, you can add up all of the sales that were generated from your Facebook ads. To calculate your total ad spend, you can add up all of the money that you spent on your Facebook ads. Then,

ROAS = Total Revenue / Total Ad Spend


If your total revenue is $5000 and your total ad spend is $1000, then:

ROAS = $5000 / $1000 = 5

In this example, your ROAS is 5:1, meaning for every dollar spent on advertising, you generated $5 in revenue.

what's considered a good ROAS for Facebook ads?

The answer to this question is not straightforward as it depends on numerous factors including your marketing goal, industry, and more. However, it’s valuable to know the average ROAS in order to set a benchmark for yourself. According to our recent Facebook ads research, 60% of agencies set goals around ROAS.

Over 30 respondents who we surveyed share that 6-10x is their average return on ad spend. This means that for every dollar spent on Facebook ads, they generated $6-$10 in revenue. A close majority also say that 4-5x is their average ad spend. This means that for every dollar spent on Facebook ads, they generated $4-$5 in revenue. Only about 5% say that their average ROAS is greater than 80x.

It’s important to note that these benchmarks are not set in stone, and what’s considered a good ROAS for one business may not be the same for another. For example, a business in a highly competitive industry may have a lower ROAS than a business in a less competitive industry. Additionally, businesses with different marketing goals may have different acceptable levels of ROAS.

That being said, it’s important to remember that these are general averages and should be used as a benchmark to compare against your own ROAS, rather than a strict target to aim for. It’s also important to consider the lifetime value of a customer when assessing ROAS. A customer that makes a single purchase may not be as valuable as a customer who continues to make purchases over time.

In conclusion, increasing ROAS on Facebook ads requires a combination of targeting the right audience, using the right ad format, testing and optimizing, using retargeting, and monitoring and adjusting your budget. By implementing these strategies, you can ensure that your Facebook advertising campaigns are driving the most revenue for your business. Remember to be patient and consistent, optimizing and testing can take time to yield results.

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