ROAS (Return on Ad Spend) measures how much revenue you generate for every dollar spent on advertising. For example, a ROAS of 4.0 means you earned $4 for every $1 spent.
It’s one of the most critical metrics for evaluating whether your ad campaigns are profitable. But the way you calculate ROAS can change your interpretation of success. That’s where Blended ROAS and Channel ROAS come in.
What Is Channel ROAS?
Channel ROAS looks at the return from a single advertising channel, such as Facebook Ads, Google Ads, or TikTok. It tells you how profitable each platform is on its own.
For example:
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If you spend $5,000 on Facebook Ads and generate $20,000 in sales, your Facebook Channel ROAS = 4.0.
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If you spend $2,000 on Google Ads and generate $6,000 in sales, your Google Channel ROAS = 3.0.
This method helps you compare platforms side by side. According to eMarketer, advertisers worldwide allocate more than 28% of their digital ad spend to Facebook and Instagram, making it crucial to understand how well these channels perform individually.
What Is Blended ROAS?
Blended ROAS combines all your marketing efforts and calculates one overall return. It includes every channel, organic traffic, referrals, and even email marketing if it contributed to sales.
Formula: Total Revenue / Total Marketing Spend
For example:
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Total marketing spend (Facebook + Google + TikTok + Email): $10,000
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Total revenue generated across all sources: $40,000
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Blended ROAS = 4.0
Blended ROAS provides a bigger-picture view. It reflects how efficiently your entire marketing ecosystem is performing rather than isolating one platform.
Why the Difference Matters
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Channel ROAS is ideal for optimization. It tells you which platforms are driving the best results so you can shift budgets accordingly.
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Blended ROAS is essential for profitability. It accounts for every dollar spent and earned, giving you a true view of whether your marketing investment works overall.
Consider this: According to Nielsen, 47% of a brand’s sales lift from advertising comes from the creative, but targeting and channel selection still play a significant role. Tracking both Blended and Channel ROAS ensures you aren’t misled by one view alone.
When to Focus on Each Metric
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Use Channel ROAS when:
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Testing a new platform or campaign
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Comparing performance across ad channels
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Deciding where to allocate incremental budget
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Use Blended ROAS when:
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Assessing your company’s total marketing profitability
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Presenting results to stakeholders or investors
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Scaling campaigns without losing sight of the bottom line
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Key Takeaway
Neither Blended ROAS nor Channel ROAS tells the full story on its own. Smart advertisers track both. Channel ROAS helps you optimize, while Blended ROAS ensures you’re profitable overall.
The best strategy is to monitor them side by side. If your Blended ROAS is healthy, you know your overall marketing is sustainable—even if some channels underperform. If your Blended ROAS drops, it’s a red flag that your overall spend may not be justified.
Suggested Reading
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