Facebook ROAS stands for Return on Ad Spend from Facebook advertising. It measures the effectiveness of your Facebook ad campaigns by comparing the revenue generated to the amount spent on ads.
Divide the total revenue generated from your Facebook ads by the total amount spent on those ads. This gives you a ratio indicating how much you earn per dollar spent.
If you spend $500 on Facebook ads and generate $2,000 in revenue, your Facebook ROAS is 2000 / 500 = 4. This means you earn $4 for every $1 spent.
A Facebook ROAS of 4:1 or higher is generally considered strong, though benchmarks vary by industry. The higher the ratio, the better your ad performance.
A Facebook ROAS below 1 means you're losing money – spending more than you're earning from your ads, which signals poor targeting or creative performance.
Narrow down your audience based on behavior and intent to increase the chances of converting at a lower cost.
Continuously test headlines, visuals, and CTAs to identify what resonates best with your audience.
Ensure your landing page delivers what the ad promises to avoid drop-offs and boost conversion rates.