When you run ads on Facebook, Instagram, TikTok or Google, it's easy to get lost in numbers: reach, impressions, likes, clicks. The number that tells you most clearly whether ads are working is ROAS — return on ad spend.
How ROAS works
ROAS is the sales your ads generated divided by what you spent on them.
ROAS = sales from ads ÷ ad spend
If you spend PKR 100,000 and your ads bring in PKR 800,000 in sales, your ROAS is 8×. One of our social media campaigns achieved 8× ROAS with PKR 15M in sales; another reached 11× with PKR 7.5M.
What is a good ROAS?
It depends on your margins. A business with high profit margins can be profitable at a lower ROAS than one with thin margins. Work out the ROAS you need to break even, then aim above it.
Why likes aren't enough
A post can get thousands of likes and sell nothing. Engagement is useful for understanding what people respond to, but sales and enquiries are what grow a business.
What you need to measure ROAS
- Tracking set up properly — for example the Meta Pixel and Google conversion tracking on your website.
- A website or store that records sales, so purchases can be linked back to ads.
- Consistent reporting that shows spend and sales side by side.
How to improve ROAS
- Target audiences more precisely.
- Test different creative and offers.
- Move budget away from ads that don't sell towards those that do.
- Improve your product pages and checkout so more visitors buy.
If you're not sure what your ads are returning, we can review your accounts and tracking and tell you what we find.