What is a good ROAS?

A good ROAS is not a fixed number, but whatever is profitable in your situation. ROAS stands for the revenue you earn back per euro of advertising spend. For a webshop with thin margins it has to be high to make a profit, while a B2B company with high margins or expensive contracts can already be profitable at a much lower ROAS. Customer Impact works B2B, never for webshops, and there the direct ROAS on a campaign is often misleadingly low, because the real value only comes later, when a lead becomes a customer.

Why is ROAS often misleading in B2B?

Because the measurable value of a purchase does not coincide with the moment of the click. In B2B, an ad usually delivers an enquiry, not a direct sale. That enquiry only becomes a customer weeks or months later, and that customer sometimes stays for years. If you then only look at the direct revenue in your ad account, your ROAS seems too low, while the actual return per customer is far higher. Whoever steers only on that short-term ROAS sometimes switches off exactly the campaigns that deliver the most over time.

How do you determine your own target ROAS?

By working back from your margin and your customer value. A few rules of thumb:

• Margin. The higher your profit margin, the lower the ROAS may be while still making a profit.
• Customer value. Count what a customer delivers over the whole relationship, not just the first purchase.
• Conversion. How many enquiries ultimately become customers, and at what CPC you bring them in.
• Goal. Do you want maximum profit now, or to win market share at a thinner margin.

Only once you know those figures do you know which ROAS is “good” for you.

What does Customer Impact steer on?

On profit contribution, not on a nice ROAS figure in a report. A high ROAS on a small campaign that barely delivers customers is worth less than a lower ROAS on campaigns that fill your pipeline. So we map out what a lead really becomes worth and adjust ads accordingly. Want to know which ROAS is profitable for your model? Check out our Google Ads service or request a tailored calculation via /en/pricing/.