Looking for ROAS stats for various sectors

[SteveM77]

Hi all,

I need your help finding the typical ROAS figures for various categories to help me complete my business plan - it can be on or offline commerce, and for any marketing channel.

Why? Because I'd developing a lead generation platform and need to know if I send clients a lead that turns into a sale, what percentage of that sale cost they would be willing to pay me.

If the average ROAS for their category is, say 400% (or 4:1) then I could assume they would be willing to pay 25% of the revenue generated by a sale in advertising cost (ie lead fee to me).

I'd be extremely grateful if anyone can point me in the right direction of some relevant data or tell me about their experience of ROAS setting or even share a rule of thumb they are aware of in a sector.

Many Thanks, Steve

 

[yottacom]

Are you trying to calculate only Adwords as an advertising channel or are you trying to include multiple channels ?

 

[SteveM77]

Many channels ideally, but if you can only help with AdWords I'd be grateful.

 

[yottacom]

I'm not that into advertising (my specialty being SEO and CRO), have you tried the roas calculator ? http://tools.seobook.com/ppc-tools/calculators/roas.html

 

[SteveM77]

Thanks yottacom but I'm really trying to understand what various businesses expect to pay when using their marketing channels so that I can sell leads to them at the right price.

 

[yottacom]

Ideally the higher the Cost per click, the higher the cost per acquisition and the customer lifetime value.

And it really depends on the competition, for example credit cards have stellar prices but they expect the client to have a large CLV.

E-cigarettes have a low cpc and probably a low CLV, because they don't really need to buy new vaporizers each month. (but they should need recharges)

What kind of vertical sectors are you targeting ?

 

[SteveM77]

Targeting all verticals, but focused on youth audience in the beginning so food & beverage, fashion, entertainment, travel etc. Trying to get a rule of thumb figure at best for any industry to understand the ballparks that sectors work to. ie 'in fashion we aim for a ROAS of 4'. Not looking for scientifcally robust data at this point, just indicative guidelines.

 

[yottacom]

I cannot help sorry, i don't have this kind of informations.

 

[SteveM77]

Thanks anyway Yottacom