What Is a Good ROAS For Google Ads? Benchmarks & How Agencies Improve It 

If you’ve run Google Ads for even a week, you already know the one question everyone asks: “Is my ROAS good or bad?”

It sounds simple, but it never is. Different industries pay different costs, some products have thin margins, and some businesses grow fine with a lower ROAS because they care more about volume.

So instead of guessing, let’s break down what a good ROAS for Google Ads really looks like, what most brands hit, and how agencies improve it without increasing your stress or your ad spend.

Before we go deeper, 

So… What Counts as a Good ROAS for Google Ads?

A lot of people throw random numbers around, but the truth is simple: a “good” ROAS depends on margins and business goals.

Here’s the general rule most agencies use:

• 4:1 is considered good for most industries.
• 2:1 to 3:1 is average, sometimes okay if margins are high.
• 6:1+ is strong and usually seen in lower-cost product niches.

Some service businesses need 8:1 or more because their cost per lead is higher.

These aren’t guesses. They match real Google Ads ROAS benchmarks across ecommerce, SaaS, services, local businesses, and DTC brands.

But still, ROAS is only part of the story. Some brands care more about volume. Others care about acquisition cost. And some care about breaking even in the first sale because the long-term value is huge.

That’s where ROAS vs ROI Google ads becomes so important.

ROAS vs ROI: Why Most Businesses Mix These Up

A big mistake people make is treating ROAS and ROI like twins. They’re not.

• ROAS looks at revenue vs ad spend.
• ROI looks at profit vs ad spend.

Example:

You spend $100 and make $400.

Your ROAS is 4:1, but your ROI depends on margins.

If your product cost is $200, your profit is only $100.

So your ROI is 1:1.

This is why some people think they’re doing great until they look at the numbers properly.

A good agency checks both instead of chasing a pretty ROAS screenshot.

What Impacts Google Ads ROAS?

ROAS changes based on:

• your industry
• your margins
• your landing page
• your keyword targeting
• your bidding strategy
• how much automation you use
• seasonality
• competition spikes

A good ROAS for Google Ads doesn’t happen because you “set and forget.”

It happens because someone watches things like a hawk.

How Agencies Improve ROAS (Without Raising Spend)

A solid agency never starts by increasing its budget.

They start by fixing the things that are draining it.

Here’s what actually moves the needle:

1. Better Keyword Strategy

Instead of chasing broad traffic, agencies focus on:

• high-intent keywords
• long-tail buying phrases
• competitor search terms
• negative keywords to stop waste

Most accounts waste 20 to 40 percent of spend on bad queries. Cleaning this alone boosts ROAS fast.

2. Stronger Ad Copy

Good ad copy does three things:

• matches the search
• promises a clear outcome
• blocks the wrong audience

When your ad attracts the right people, ROAS goes up.

3. Tight Landing Pages

A great ad is worthless if the landing page is confusing.

Agencies fix:

• page load speed
• headline clarity
• call-to-action placement
• mobile experience
• form length

If your page converts better, ROAS rises even if your click costs stay the same.

4. Smarter Bidding

Many people trust automated bidding too early.

Agencies adjust:

• manual CPC
• tROAS
• tCPA
• broad match with guardrails
• bidding by device, schedule, or audience

This keeps Google from blowing your budget on low-value traffic.

5. Audience Layering

Agencies use:

• remarketing lists
• lookalike audiences
• custom intent segments
• past buyer data

This reduces wasted clicks and boosts your ROAS over time.

What Is Considered “Bad” ROAS?

Not everything should be a 4:1 or 6:1.

But if your ROAS stays under 2:1 for more than 60 days, there’s a problem.

Either your margins are too small, or your campaign structure is off.

FAQs

What is the average ROAS for Google Ads?

Most industries hit between 2:1 and 4:1. Ecommerce usually stays around 4:1. Some service industries require higher returns.

What is a good ROAS for small businesses?

Anything between 3:1 and 5:1 is strong for small businesses, depending on margins and average customer value.

How long does it take to improve ROAS?

You can see small improvements in 2 to 4 weeks. Bigger gains usually take 60 to 90 days while campaigns stabilize.

Why is my ROAS dropping even if clicks look good?

Weak landing pages, wrong keywords, seasonal changes, and competition spikes often cause drops. Sometimes the intent of the traffic changes.

Is ROAS or ROI more important?

Both matter. ROAS tells you how ads perform. ROI shows if you are actually making profit, which is what most businesses care about.