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Return on Ad Spend (ROAS) is one of the most crucial metrics to evaluate the effectiveness of your Facebook advertising campaigns. It helps you measure how much revenue you’ve earned for every dollar spent on ads. A higher ROAS means better performance and profitability.
What Is ROAS?
ROAS = Revenue Generated / Ad Spend
For example, if you spent $100 on a campaign and made $400 in revenue, your ROAS is 4.0 (or 400%). This means you earned $4 for every $1 spent.
How to Check ROAS in Facebook Ads Manager
Step 1: Go to Ads Manager
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Visit Facebook Ads Manager.
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Select the ad account you want to analyze.
Step 2: Choose the Right Campaign, Ad Set, or Ad
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Navigate to the Campaigns, Ad Sets, or Ads tab.
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Select the level at which you want to view performance.
Step 3: Customize Columns to See ROAS
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Click on the Columns dropdown at the top-right of the table.
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Choose Customize Columns.
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In the search bar, type “ROAS” or “Purchase ROAS”.
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Check the box next to Purchase ROAS (Return on Ad Spend).
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Click Apply to update your table view.
Step 4: Analyze Your ROAS
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You will now see ROAS metrics for each campaign or ad.
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ROAS is usually tied to a specific conversion event, like Purchases. Make sure you’re tracking this correctly with the Meta Pixel or Conversions API.
Tips to Get Accurate ROAS Data
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Install Meta Pixel Properly: Ensure it’s correctly set up to track purchases or desired conversions.
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Use Standard Events: Like
Purchase
,Lead
, orCompleteRegistration
to track outcomes. -
Set Attribution Windows: Choose the right attribution setting (e.g., 7-day click, 1-day view) to match your sales cycle.
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Verify Data with Shopify or Website Analytics: Always cross-check ROAS with your eCommerce platform to ensure consistency.
What’s a Good ROAS?
This varies by industry and business model. As a general guideline:
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1.0 ROAS: Breaking even
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2.0–3.0 ROAS: Moderate profitability
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4.0+ ROAS: Strong performance
Remember, ad costs and margins differ—so evaluate ROAS in the context of your profit margins.
Tracking your ROAS on Facebook Ads helps you make informed decisions about scaling, pausing, or optimizing campaigns. By customizing your Ads Manager view and ensuring proper tracking, you’ll have a clear picture of what’s working—and what’s not.
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