How to calculate blended ROAS

Blended ROAS = total revenue ÷ total ad spend, for the same period.

A brand takes $400,000 in revenue in March. It spends $60,000 on Meta, $30,000 on Google, and $10,000 on TikTok, which is $100,000 in total. Its blended ROAS is 400,000 ÷ 100,000 = 4.0, or $4 of revenue for every $1 of ad spend.

Blended ROAS vs. platform ROAS

Each ad platform reports ROAS using its own attribution, and each tends to claim sales the others also claim. Add the platform figures together and they can exceed the revenue the business actually took. Blended ROAS avoids the problem by using real revenue and real spend. It cannot say which channel worked, but it does say whether advertising as a whole is paying for itself.

Blended ROAS vs. MER

MER, the marketing efficiency ratio, is total revenue divided by total marketing spend. The two terms are often used for the same number. Where a distinction is made, blended ROAS counts media spend only, and MER can also include other marketing costs such as agency fees and creative.

What is a good blended ROAS?

It depends on margin. The break-even point is 1 ÷ gross margin. A business with a 60% gross margin breaks even at a blended ROAS of about 1.67, and one with a 25% margin needs 4.0. Any target should be set above that figure, with room for costs that margin does not cover.

Getting the spend figure right

The number is only as good as its denominator. Total ad spend should come from what the platforms actually charged, not from dashboard estimates, and it should cover every channel. Ad spend tracking and ad spend reconciliation are what make the figure trustworthy.

How Opal helps

Opal is a charge card built for ad spend. Each ad platform or client can run on its own virtual card, and transactions sync to QuickBooks organized by client and platform, so total spend by channel comes from actual charges. See how Opal works for agencies.

Frequently asked questions

What is the difference between ROAS and blended ROAS?

ROAS usually means the return one platform or campaign reports for itself, based on the sales it attributes to its ads. Blended ROAS divides all revenue by all ad spend, with no attribution.

Is blended ROAS the same as MER?

Often, yes. Many teams use both names for total revenue divided by total ad spend. Some define MER more widely, dividing revenue by all marketing costs and not only media.

Does blended ROAS include organic revenue?

Yes. It uses total revenue, including sales from organic search, email, and repeat customers. That is why it is higher than paid-only measures, and why it works best as a trend over time.

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