# Average ROAS by Industry: The Most Difficult Metric to Measure

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.

No matter how you 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:

In some cases, you’ll see the ROAS formula formatted as follows:

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.

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:

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.

Calculating the average ROAS by the industry for Google Ads is 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%.

Meeting the average ROAS for Google Ads is great, but going beyond the average is even better.

Anything above 400% — or a 4:1 return. In some cases, businesses may aim even higher than 400%. Remember, Google found that companies could earn an average return of \$8 for every \$1 spent on the Google Search Network.

While ROAS calculators make finding your ROAS easy, you should keep in mind a few factors, including:

When you calculate your ROAS, you enter your total ad spend. A lot of times, companies will look at this number and enter their monthly ad spend, which they pay directly to an ad network, like Google Ads. The problem, however, is that this number doesn’t include additional advertising costs.

For example, these costs can include:

Whether your business includes these numbers is up to you. For example, you may exclude employee salaries and include some bid management software that you use, which makes sense. In your company role, you probably do more than PPC management, while your bid management software gets used solely for your ad campaigns.

#### 2. ROAS only considers the revenue generated from advertising

With conversion actions in Google Ads, you can set custom conversions, like a quote request, and assign them a monetary value, like \$250. This tool can help you monitor and measure the performance of your ad campaigns, as well as make your ROAS calculation more accurate, so take advantage of it.

#### 3. ROAS is not ROI

While similar, ROAS and ROI are different: