In revenue for every $1 they spend on Google Ads. If they focus on the Google Search Network, that amount increases to $8 for every $1 spent. This information provides the “Total Ad Spend” for the ROAS formula — $9000 to $10,000. It also offers data to calculate “Total Ad Revenue” for the ROAS formula — $2 for every $1 spent. If the average business earns $2 for every $1 spent, and they invest $9000 to $10,000 per month, that means they’re earning around $18,000 to $20,000 in revenue from Google Ads each month. You can calculate this value by multiplying $9000 and $10,000 by $2. Now, you can take this data and input it into the ROAS formula.
ROAS = Total Ad Revenue / Total Ad Spend 100 ROAS = $18,000 / $9000 *100 ROAS = 2 * 100 ROAS = 200% The result is 200%, meaning you’re earning $2 back for every $1 you invested into Google Ads. What is the average Google Ads ROAS for my industry? Calculating the average ROAS by the industry for Google Ads Hospitals Email List a challenge for a few reasons. Most companies, for example, aren’t comfortable sharing their ad spend or ad revenue. For accurate ROAS industry benchmarks, you need a decent and diverse sample size, which means you need a significant number of businesses, both small and large, to share their ad spend and ad revenue. If you don’t have a large and diverse enough sample size, you publish inaccurate benchmarks.
Sharing inaccurate data like that can cause businesses to incorrectly measure their Google Ads performance and make decisions that harm not only their overall marketing and advertising efforts, but also their leads and sales numbers. That’s why it’s best to reference the overall ROAS average for Google Ads: 200%. What is a good ROAS for Google Ads? Meeting the average ROAS for Google Ads is great, but going beyond the average is even better. When you increase your ROAS, you help your business earn even more from paid advertising, which will probably lead to a few high-fives. Generating a higher ROAS can also lead to a bigger Google Ads budget, which gives you even more room to drive results for your company.