What’s a Good ROAS in 2025? Benchmarks by Platform, Industry & Funnel Stage

If you’re running e-commerce ads in 2025, you probably ask yourself: “What’s a good ROAS?”

Return on Ad Spend (ROAS) is one of the most important metrics to track — but it can vary widely depending on your industry, channel, and where the customer is in the funnel.

Knowing what to expect can help you set realistic goals, allocate budget effectively, and optimize campaigns for profitability.

Let’s break down the typical ROAS benchmarks for e-commerce brands in 2025 — by platform, industry, and funnel stage — so you know how to measure your success.

1. Understanding ROAS: What It Really Means

ROAS = Revenue Generated ÷ Ad Spend.

For example, a ROAS of 4 means you earn $4 in revenue for every $1 spent on ads.

But ROAS alone isn’t the whole story. You need to consider:

• Your product margins

• Customer lifetime value (LTV)

• Funnel attribution windows

• Marketing efficiency ratio (MER) across channels

Still, ROAS remains a key benchmark for understanding paid media effectiveness.

2. ROAS Benchmarks by Platform

Here’s how typical ROAS ranges look in 2025 across major paid media channels for e-commerce:

3. ROAS Benchmarks by Industry

Different product categories have different margins and customer behaviors — so ROAS expectations shift.

4. ROAS Benchmarks by Funnel Stage

Your funnel stage dramatically affects ROAS expectations.

Lower-funnel campaigns naturally have higher ROAS because audiences are closer to purchase — but they also have smaller audiences, limiting scale.

5. How to Use These Benchmarks

• Set realistic targets: If your industry’s average ROAS is 4x on Meta Ads, don’t panic if your campaign runs at 3x initially — optimize and iterate.

• Optimize by funnel: Don’t expect your prospecting campaigns to hit bottom-funnel ROAS goals. Use them for reach and brand awareness.

• Combine metrics: Track MER (Marketing Efficiency Ratio) alongside ROAS to understand profitability across all marketing channels.

• Consider LTV: If your average customer buys multiple times, you can afford a lower immediate ROAS and focus on long-term value.

6. Tips for Improving ROAS in 2025

• Invest in creative testing: New, relevant creative keeps CTRs high and CPAs low.

• Leverage automation strategically: Use tools like Meta’s Advantage+ and Google’s Performance Max but always monitor and control budgets.

• Use first-party data: Feed customer lists and website data into platforms for better targeting and attribution.

• Optimize your funnel: Fast-loading pages, clear CTAs, and seamless checkout reduce friction.

• Retarget smartly: Segment warm audiences by engagement level and time since last visit.

Final Thoughts: ROAS Is Contextual, But Crucial

ROAS benchmarks help you set expectations, but your unique business model, product margins, and marketing goals ultimately define what’s “good.”

In 2025, the smartest e-commerce brands:

• Look beyond surface-level ROAS

• Focus on blended profitability and customer lifetime value

• Build funnels and campaigns tailored to each funnel stage

• Combine data-driven strategy with creative innovation

If you want to get specific benchmarks for your niche, channel, or funnel, or need help optimizing for max ROAS, reach out!

📈 Ready to benchmark your performance marketing and unlock higher ROAS?
Book a free audit with our team and get tailored insights to boost your e-commerce growth. We recommend Nick Doyle.