In 2025, Return on Ad Spend (ROAS) is the most critical metric for Indian businesses investing in digital ads.
But many founders, CMOs, and marketers still don’t understand:
- How to calculate ROAS
- What a good ROAS looks like
- How to improve it
In this blog, we break it all down with Indian market benchmarks and actionable strategies.
🔢 What Is ROAS?
ROAS (Return on Ad Spend) is a metric that tells you how much revenue you earn for every rupee you spend on ads.
Formula: ROAS = Total Revenue from Ads / Total Ad Spend
Example:
- You spend ₹50,000 on ads
- You generate ₹2,00,000 in revenue
- Your ROAS = 4X
🎯 What’s a Good ROAS in India (2025)?
| Industry | Good ROAS Benchmark |
| D2C / eCommerce | 3X – 6X |
| Real Estate | 2X – 4X |
| Coaching & Education | 4X – 10X |
| Healthcare | 3X – 5X |
| B2B Services | 2X – 8X |
💡 Note: ROAS depends on ticket size, funnel depth, and industry competition.
🧮 How to Measure ROAS Accurately
Step 1: Track Revenue
- For eCommerce: Use Shopify/website sales data
- For lead-based: Use CRM to attribute revenue to lead source
Step 2: Track Ad Spend
- Use Google Ads, Meta Ads, and LinkedIn Ads dashboards
- Add GST, agency fees, and other charges if applicable
Step 3: Use Attribution Tools
- Google Analytics 4
- Facebook Pixel + Conversion API
- CRM integrations (Zoho, HubSpot)
🚫 Common Mistakes While Measuring ROAS
- Counting total sales, not ad-attributed sales
- Ignoring post-purchase upsells and repeat orders
- Mixing organic and paid traffic in revenue calculation
- Ignoring time lag between click and purchase
📈 How to Improve ROAS in Indian Campaigns
1. Target High-Intent Audiences
Use Google Search, retargeting, and lookalike audiences.
2. Use Offer-Based Creatives
Promotions increase CTR and drive conversions.
3. Shorten Your Funnel
Reduce steps between ad click and final action.
4. Test Creatives Weekly
A/B test different headlines, thumbnails, CTA buttons.
5. Improve Landing Page Speed & UX
Slow websites kill conversions. Keep load time < 3s.
🔍 ROAS vs ROI: What’s the Difference?
| Metric | ROAS | ROI |
| Measures | Revenue vs Ad Spend | Profit vs Investment |
| Use Case | Marketing team KPI | Finance/Investor metric |
| Formula | Revenue / Ad Spend | (Profit – Cost) / Cost |
Frequently Asked Questions
Can ROAS be negative?
Should I consider COD returns while calculating ROAS?
Is 2X ROAS good?
Can ROAS improve over time?
Should I track ROAS per campaign or total?
📞 Final Word: If It’s Not Profitable, It’s Not Performance
Ad impressions and clicks don’t pay the bills—ROAS does.
Every Indian brand running paid ads in 2025 must:
- Track ROAS weekly
- Audit campaigns for non-performing assets
- Shift budget to what works
At Brand Chanakya, we obsess over ROAS. Because if you don’t get returns, we don’t deserve your budget.
Follow us on Instagram:- @brand_chanakya