Return On Ad Spend (ROAS)
Return On Ad Spend is revenue divided by ad spend, usually shown as a ratio. A 4x ROAS means $4 of revenue for every $1 of ad spend. For service businesses, ROAS is only useful when you upload closed deals back to the ad platforms so the algorithm sees real outcomes.
How to track ROAS correctly
Tag every lead in your CRM by source. When a lead closes, push the revenue and source back to Google Ads and Meta as an offline conversion. Without that step, ROAS reflects estimated lead value, not actual revenue, and the algorithm optimizes for cheap leads instead of profitable customers.
We do offline uploads weekly for every client. The lift in efficiency usually appears within 30 days as the algorithm rebalances toward the campaigns producing real customers.
Healthy ROAS targets
Home services target 5x to 10x blended ROAS once tracking is clean. Higher-ticket trades like remodeling and custom homes target 8x to 20x because job sizes are larger. Ecommerce is a different beast and benchmarks do not transfer.
ROAS under 2x usually means broken tracking, bad targeting, or a weak offer. Above 15x sustained usually means you are leaving volume on the table and could scale spend without losing efficiency.
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Send us read-only access to your ad accounts and CRM and we will calculate true ROAS with offline closed deals included. Free, one-page summary, no pitch.
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