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Average ROAS on Facebook Ads

ROAS (Return on Ad Spend) is a crucial metric for any business that uses paid advertising, especially on platforms like Facebook.

If you are looking for benchmarks to know what to expect in terms of return, or want to understand how to improve your campaigns, this article is for you!

What is the Average ROAS for Facebook Ads?

The average ROAS for Facebook ads can vary greatly depending on the industry and strategies used. However, some general benchmarks can help you understand the situation.

  • Overall average ROAS: According to one source, the average ROAS for Facebook ads across all industries is 2,98.

Industry-Specific ROAS

Each industry has its own particularities, and this directly reflects on the performance of ads. Here are some reference numbers by industry:

  • Digital Products: Average ROAS of 3,28
  • Clothes: Average ROAS of 2,56
  • Health & Beauty: Average ROAS of 1,71
  • Pet Products: Average ROAS of 1,39

These numbers clearly show that profit margin and the nature of the products directly impact the return on investment.

Lookalike Audiences and Customer Lists: A Potential for High Returns

One of the strategies that has gained prominence is the use of similar audiences (lookalike audiences) and customer lists. In one specific case, an advertiser reported an impressive ROAS of 14.68x in March, using a lookalike audience based on a list of 5,000 customers. However, it’s important to remember that this is an isolated example, and performance may vary significantly.

Despite this success, the same person reported a drop in 6x ROAS in the last week of March, which shows that performance can fluctuate over time.

What is a “Good” ROAS?

In general, it is considered that a good ROAS be in the range of 2:1 to 4:1 (or 200-400%).

However, what constitutes a good ROAS depends on several factors, such as:

  • Sector of activity / Market niche
  • Profit margins
  • Cost per click (CPC)

How to Improve Your ROAS: Constantly Test and Optimize

When you use customer lists e similar audiences, the chances of good performance increase, especially when launching new products or when limited data is available. However, the effectiveness of these strategies may vary.

Many advertisers are moving to using Advantage+ Targeting, which can automatically incorporate lookalike audience targeting.

To ensure you're always getting the best performance from your Facebook ads, it's crucial to continually test different strategies and optimize your campaigns.

Takeway

While there are useful benchmarks, it’s essential to remember that your campaign’s actual ROAS will depend on factors specific to your business, such as your target audience, industry, and ad strategy.

The key to improving the performance of your Meta Ads campaigns is test continuously e adjust your campaigns based on the data obtained.

After all, success in campaigns on Meta (Facebook, Instagram and WhatsApp) goes far beyond simply following benchmarks.

Constant optimization is what guarantees superior results.

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