What is a Good ROAS? Benchmarks for Ecommerce Advertising ROI

Getting a good Return On Ad Spend (ROAS) makes the difference between a thriving ecommerce brand and a dying one. It’s important to understand how to use ROAS as a metric to make marketing decisions about your paid advertising, and also when ROAS might not be that helpful.

ROAS is especially important for ecommerce businesses who are running multiple ads on different channels. It gives a metric that can be tracked at the channel, campaign, or ad level to determine what is working and what is not with regards to advertising performance.

Using ROAS, you can often tell at a glance whether an ad is a candidate for scaling or needs to be turned off. It’s very helpful for evaluating the effectiveness of specific advertising campaigns, rather than a 10,000 ft view of your marketing department.

Unless you have been advertising online blindly or spending too much time on TikTok, you have probably seen the acronym CPL. Cost Per Lead (CPL) is a metric that most media buyers track for the brands they advertise for.

If you aren’t optimizing your Google Ads campaigns, you might as well throw your advertising budget into a flaming dumpster.

How to Improve Your ROI Without Increasing Ad Spend

Optimizing ad campaigns is a critical part of improving ROI and maintaining the health of your ecommerce business.

What is data-driven attribution?

Prior to September 27, 2021 Google ads provided only last-click attribution when reporting conversions. This meant ad campaigns were only credited with a conversion if it was the last ad a user interacted with. 

Last Updated: December 10, 2025 – Essential Guide for 2026

Find out what the best marketing attribution software is for your ecommerce business by comparing features and technology.

Increase Your ROI By Optimizing Your Ads for High Value Customers

Have you ever asked yourself: