The Most Difficult Metric to Measure By Sarah Berry on July 15, 2020 ~ 6 minutes to read Return on ad spend (ROAS) for Google Ads is one of the most difficult metrics to measure, especially across an industry, because it requires businesses to share how much they spent on Google Ads and how much they earned from their ads. While you probably won’t find an average ROAS by industry for Google Ads, you can look at some data from Google Ads, like ad spend and return on investment (ROI), to get a general benchmark for your company. Hint: That benchmark is 200% — a 2:1 ROAS, or an average return of $2 for every $1 spent. If you’re curious to learn more about the data behind this ROAS benchmark for Google Ads, keep reading!
You’ll also learn how to calculate ROAS and what to watch for when calculating your company’s ROAS for Google Ads. CTA How much do you make in return in comparison to how much you spend on ads? Find your ROAS for FREE with our calculator! Calculate your ROAS How to calculate your ROAS from Google Ads No matter how you Yahoo Email Address calculate ROAS from Google Ads, whether with a calculator or pen and paper, it’s crucial to understand how ROAS gets calculated. It helps you know what ROAS measures, as well as whether you earned a positive or negative ROAS from Google Ads. The ROAS formula is: ROAS = Total Ad Revenue / Total Ad Spend In some cases, you’ll see the ROAS formula formatted as follows.
ROAS = Total Ad Revenue / Total Ad Spend 100 This formula formats your ROAS as a percentage by multiplying your result by 100. If you use this version, know that a positive percentage, like 50%, doesn’t equal a positive ROAS because you’ve only earned 50% back on your investment. Your ROAS must exceed 100% for your business to make a return on its ad spend. What is the average ROAS for Google Ads? The average ROAS for Google Ads is 200%, which translates to earning $2 for every $1 spent. You can also calculate this amount by looking at some publicly available Google Ads data, like: What the average company spends on Google Ads What the average company earns from Google Ads The average business.