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What is Blended ROAS?

Blended ROAS uses total revenue over total ad spend across channels. Learn how to calculate and use it without hiding problems.
Brief Definition

Blended ROAS is total revenue divided by total ad spend across channels. It’s a simple way to understand overall efficiency. Be careful—blends can hide underperformers.

Understanding Blended ROAS

Blended ROAS complements channel ROAS by showing aggregate outcomes across all spend. It helps executives see whether the overall program is accretive without parsing every line item. However, blends can hide underperformers when strong channels mask weak ones. Differences in attribution and returns policies can also distort the picture. Read blended metrics alongside channel detail to avoid false comfort.

Because blended ROAS rolls many effects together, context is essential. If one channel over‑reports revenue or cannibalizes organic, the blend can look healthy while profit lags. Pair blended ROAS with POAS, contribution margin, and payback to keep decisions grounded. Segment by product category or region to surface pockets of inefficiency. Track trends over months and quarters to understand structural shifts versus short‑term noise.

Why Blended ROAS matters

Blended ROAS matters because leadership needs a single, directional view of efficiency. It simplifies communication while flagging when channel‑level wins fail to translate into business results. Used carefully, it keeps teams aligned on outcomes rather than isolated metrics.

  • Portfolio view: Shows if spend is accretive overall.
  • Simplicity: Useful for exec-level reporting.
  • Sanity check: Catches gaps between channel and total performance.

How to Calculate Blended ROAS

  • Formula: Blended ROAS = Total Revenue ÷ Total Ad Spend (same period)
  • Pair with POAS and payback to stay honest.

Key Takeaways

  • Blended ROAS measures total revenue divided by total ad spend across all channels and campaigns.
  • It's useful for high-level planning but can hide channel-specific performance issues.
  • Segment ROAS by channel, product category, and audience to uncover actionable insights.
  • Improve blended ROAS by optimizing feed quality, creative relevance, and product mix.
Related Terms
Related Blogs
FAQs
Is blended ROAS a good KPI?
Blended ROAS is good for high-level reporting and board metrics; for optimization, pair blended ROAS with channel-specific ROAS and POAS.
Can blended ROAS improve while profit falls?
Yes—blended ROAS can improve while profit falls if low-margin revenue grows; always monitor POAS alongside blended ROAS.
What's a good blended ROAS?
A good blended ROAS depends on margins and business model; ecommerce often targets 3-5+, but compare against your unit economics.
Is blended ROAS the same as MER?
Effectively yes—blended ROAS and MER (Marketing Efficiency Ratio) both measure total revenue divided by total marketing spend.
Should I optimize campaigns to blended ROAS?
No—use blended ROAS for strategic planning; optimize campaigns using channel-specific metrics (ROAS, POAS, CPA) that tie to actionable levers.

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