For most Indian D2C brands, a ROAS of 3x-6x is healthy, depending on margin and average order value. The right target is the lowest ROAS at which you are still profitably growing, not the highest number your campaigns can hit.

Metrics

ROAS (Return on Ad Spend)

ROAS, or Return on Ad Spend, is revenue generated divided by advertising cost. If you spend ₹1,00,000 on ads and earn ₹4,00,000 in attributable revenue, your ROAS is 4x. It measures advertising efficiency but ignores product cost and margin, so it is not the same as profit.

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ROAS (Return on Ad Spend)

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Frequently Asked Questions

ROAS (Return on Ad Spend)

Related reading

Frequently Asked Questions