Google Ads return on ad spend (ROAS) is calculated by dividing the revenue generated from your Google Ads campaigns by the cost of those campaigns, expressed as a ratio or percentage. As of early 2026, achieving a ‘good’ ROAS depends heavily on your industry, profit margins, and business model.
- Performance Max Campaigns: Current systems include fully automated Performance Max campaigns, leveraging Google’s AI across all channels – Search, Display, YouTube, Discover, Gmail, and Maps.
- Enhanced Conversions: Google now features Enhanced Conversions, which utilise first-party customer data (hashed) to improve conversion tracking accuracy, crucial given increasing privacy regulations.
- Privacy-Safe Measurement: In 2026, Google’s Privacy Sandbox initiatives are fully integrated, impacting attribution modelling. Understanding these changes is vital for accurate ROAS calculations.
- Local Services Ads Integration: Seamless integration with Local Services Ads allows for hyper-local targeting and lead generation, particularly effective for trades and service businesses.
Generally, a ROAS of 4:1 (meaning $4 revenue for every $1 spent) is considered good for many Australian businesses. However, highly competitive industries like finance or legal may see acceptable ROAS figures closer to 3:1, while e-commerce with higher margins might aim for 6:1 or higher. Australian Consumer Law compliance regarding ad copy and landing page claims is also paramount; misleading information can lead to penalties and damage your brand reputation.
Instead of navigating these complex technicalities and constantly optimising for the best ROAS, let our team at ROI.com.au take care of all this for you. Contact us today to discuss your business goals and how we can maximise your Google Ads performance.
