Return on Ad Spend (ROAS) is often the go-to metric for advertisers running Facebook campaigns. But if you rely only on platform data, you risk overestimating profitability. Blended ROAS takes into account all marketing channels and costs, giving you a more accurate view of performance.
For example, Facebook Ads Manager might report a 4x ROAS, but after including costs from Google Ads, email campaigns, and organic efforts, your blended ROAS could drop to 2x. This metric helps you understand the real bottom-line impact of your campaigns.
According to a 2023 eMarketer report, over 60% of marketers admit they rely too heavily on platform-specific metrics. That reliance often leads to scaling campaigns that don’t actually generate profit.
How to Calculate Blended ROAS
The formula is simple:
Blended ROAS = Total Revenue / Total Marketing Spend
Instead of segmenting by channel, you add all your advertising and marketing costs (Facebook, Google, TikTok, email marketing, etc.) and divide them into the total revenue. This approach helps you:
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Identify if Facebook ads are profitable when combined with other efforts.
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Spot whether retargeting or prospecting campaigns deliver real long-term value.
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Prevent over-investing in campaigns that look good in isolation but aren’t sustainable.
Why Blended ROAS Beats Platform-Reported ROAS
Visualizing how different marketing channels feed into a single Blended ROAS metric—ensuring you see the full picture
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Cross-Channel Attribution – Customers often touch multiple channels before converting. Blended ROAS captures the full funnel.
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Cost Transparency – Facebook might hide some costs (like creative production or third-party tools). Blended ROAS includes them all.
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Profitability Focus – Instead of chasing vanity metrics like CTR or CPM, you focus on the only thing that matters: actual returns.
Benchmarks to Watch
Average blended ROAS by industry: Apparel (~4.5×), Garden & Outdoor (~6.7×), e-commerce average (~2.9×). Compare your campaign’s performance accordingly
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A healthy blended ROAS benchmark for most industries is between 2x and 4x.
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High-margin products may succeed with a lower blended ROAS.
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Subscription or SaaS models often accept lower blended ROAS in exchange for lifetime value (LTV).
According to Shopify data, companies with a blended ROAS below 1.5x struggle to scale profitably.
How Facebook Ad Optimization Fits In
When optimizing Facebook campaigns, it’s easy to get distracted by metrics like CPC, CTR, or CPM. While these are important for Facebook ad optimization, they shouldn’t replace blended ROAS. To improve profitability:
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Test audience targeting beyond interest groups to reduce CPM.
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Refine ad creative with strong headlines and visuals to improve CTR.
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Use conversion tracking to align ads with real purchase data.
These optimizations help improve channel performance, but blended ROAS ensures you don’t lose sight of the bigger picture.
Final Thoughts
Blended ROAS is not just a metric; it’s the reality check every marketer needs. While Facebook may show strong results in-platform, only by calculating blended ROAS will you know if your campaign is truly profitable. As competition and ad costs rise, this holistic view becomes critical for scaling.
