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ROAS targets that make sense for subscription businesses — and why the headline number can lie.
Return on ad spend (ROAS) is simply revenue generated divided by the ad spend that produced it. For an ecommerce store that’s clean — one click, one purchase. For B2B SaaS it’s messier, because a single trial today can turn into thousands of dollars of recurring revenue over the next two years.
That means a campaign showing a “weak” 1.5x ROAS on first-month revenue can be wildly profitable once you count the full contract value.
Two campaigns can show the same ROAS while one is far more valuable — because it brings customers who stay longer and expand. Always pair ROAS with customer lifetime value (LTV), CAC payback, and net revenue retention.
Get those right and ROAS stops being a vanity number and starts reflecting real, compounding growth.
Book a strategy call and we’ll apply these ideas to your own funnel.
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