KARBON AGENCY
Revenue & ROI

What's a good Return on Ad Spend?

A good Return on Ad Spend for a local business is 4.0x or higher. Revenue generated per dollar of ad spend. An excellent Return on Ad Spend — the top tier Karbon Agency grades client campaigns against — is 8.0x or higher, while 2.0x marks the minimum acceptable tier.

The three tiers Karbon grades against

TierValueWhat it means
Minimum2.0xThe floor. Below this, something is broken.
Recommended4.0xThe tier a healthy campaign should hit.
Excellent8.0xTop-tier performance worth defending.

Higher is better for this metric.

How it's calculated

Revenue / Ad Spend

Why Return on Ad Spend matters

The definitive measure of advertising profitability. A ROAS of 4x means every $1 spent returns $4 in revenue. Below 2x, most businesses are unprofitable after COGS.

Related benchmarks

LTV:CAC Ratio

Good: 3.0x or higher

Customer Acquisition Cost

Good: $50.00 or lower

Revenue Per Customer

Good: $150 or higher

Average Order Value

Good: $50.00 or higher

Where does your Return on Ad Spend land?

Karbon Agency grades every client campaign against these exact tiers, live on a dashboard — no guessing, no quarterly PDFs.

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