How to calculate your target ROAS
How to calculate your target ROAS
Jan 2024
3 min read
Mustafa Ahmadi
ROAS is one of the most important metrics for DTC brands, but determining the right target can be confusing. This isn’t helped by misaligned advice from ad agencies who want you to spend more.
When it comes to ROAS targets, we like to keep it simple and conservative. Since most business success comes from staying in the game long enough, I’d rather our clients grow a little slower than go out of business.
The template below is the exact template we’ve used over the past few years for our clients. The template was originally inspired by the ROAS target calculation from Reece Wabara’s “The Facebook Ad Blueprint.”
The template is very self-explanatory. If any of it doesn’t make sense, then feel free to reach out to me at mustafa@brightonmarketinggroup.com.
