In B2B marketing, campaign performance is judged not just by conversions, but by whether spend delivers a defensible financial return. Return on Ad Spend (ROAS) benchmarks provide the reference point: they show how much revenue your peers generate for every £1 invested in advertising, and whether your own results are competitive.
Benchmarks act as proof in budget discussions. If ROAS is below industry norms, it signals wasted spend or measurement issues. If it is higher, it validates your strategy and strengthens the case for scale. But in complex B2B environments — with long sales cycles, multiple stakeholders, and varied margins — interpreting benchmarks requires nuance.
This article explains why benchmarks matter, what a good ROAS looks like in B2B, how industries compare, and why the numbers vary so widely. For the fundamentals of calculation, see our Complete ROAS Guide for B2B marketers.
Why ROAS Benchmarks Matter
In B2B marketing, benchmarks are more than numbers on a dashboard — they are a financial language shared between marketing, finance, and the board. Without them, it’s impossible to know whether spend is creating competitive returns or simply covering costs.
Benchmarks matter because they:
- Guide budget allocation — CMOs and CFOs can redirect spend from underperforming campaigns into higher-performing ones.
- Enable cross-channel comparison — ROAS expresses performance as a single ratio across search, social, display, and even offline events.
- Provide board-level proof — Hard ratios are easier to defend than softer metrics like impressions.
- Expose weak signals — Falling well below industry norms highlights whether the issue is execution or measurement.
- Support forecasting discipline — Benchmarks help leaders gauge whether spend is on track to deliver pipeline and revenue.
“Benchmarks turn ROAS from a vanity metric into a decision-making tool.” – Robin Caller, CEO, Leadscale
See the ROAS Formula Explained Step-by-Step for detail on how scope and attribution shape the benchmark you compare against.
What Is a Good ROAS in B2B in 2025?
There is no universal “good” ROAS. The right target depends on margins, sales cycle length, and business model. Still, verified research provides a useful baseline:
- General range: A good ROAS typically falls between 2:1 and 4:1, meaning £2–£4 in revenue for every £1 spent.
- Baseline expectation: Many firms treat 3:1 as the minimum standard for sustainable performance.
- High performers: Agencies and growth-stage teams often achieve 5:1 to 7:1.
- By sector:
- Technology / SaaS: 3:1 to 5:1 is common, with SaaS models often 3:1–4:1.
- Enterprise Software: 2:1 to 3:1, reflecting long cycles and high ACVs.
- Manufacturing: 1.8 to 2.3, due to multi-stakeholder processes.
- Technology / SaaS: 3:1 to 5:1 is common, with SaaS models often 3:1–4:1.
“For most technology, SaaS, and B2B sectors, a ROAS of 3:1 or higher is a strong signal that ad spend is pulling its weight.” – Robin Caller, CEO, Leadscale
Benchmarks should always be validated against internal economics like CAC payback or LTV:CAC ratios. For example, a SaaS firm with recurring revenue may accept a lower short-term ROAS if lifetime value makes the economics work.
ROAS Benchmarks by Industry (2025)
With baselines in mind, how do specific industries compare? Sales cycle length, ACV, and buyer complexity all shape outcomes. Verified data shows both real-world averages and suggested targets.
Observed Averages (real-world performance)
- Enterprise Tech: 3.2:1 — Directive 2025
- SaaS (Mid-Market): 2.6:1 (top quartile 4.1:1) — Directive 2025
- Manufacturing: 1.8–2.3:1 — Directive 2025
- B2B SaaS: 1.70:1 (PPC), 8.75:1 (SEO) — First Page Sage 2025
- Aerospace & Defense: 0.95:1 (PPC), 10.35:1 (SEO) — First Page Sage 2025
- IT & Managed Services: 1.10:1 (PPC), 7:1 (SEO) — First Page Sage 2025
- Engineering: 1.45:1 (PPC), 7.90:1 (SEO) — First Page Sage 2025
- Oil & Gas: 1.40:1 (PPC), 10.55:1 (SEO) — First Page Sage 2025
- Cybersecurity: 1.40:1 (PPC), 11.20:1 (SEO) — First Page Sage 2025
Interpretation: PPC returns are often modest in B2B (rarely exceeding 2–3x), while SEO consistently delivers 7–11x. This highlights the compounding power of organic channels and why high-growth firms prioritise them for efficiency.
Suggested Targets (analyst/agency guidance)
- B2B Services: 3:1 or higher — InMotion
- B2B SaaS: 3:1 to 5:1 — Xander Marketing
- Enterprise Software: 2:1 to 3:1 — Ziggy Agency
- SaaS (General): 3:1 to 4:1 — Ziggy Agency
- B2B Technology: 3:1 to 5:1 — Ziggy Agency
Interpretation: Targets reflect what experts consider healthy or scalable. They serve as benchmarks for planning, but the observed averages show how difficult these goals can be to achieve in practice.
Why Benchmarks Vary
Benchmarks diverge because no two B2B models are identical. Key factors include:
- Margin structures — High-margin SaaS firms can tolerate lower ROAS than low-margin manufacturing businesses.
- Sales cycle length — Enterprise software deals take longer to convert, depressing short-term ROAS.
- Attribution models — Single-touch models understate long-cycle ROAS, while multi-touch attribution captures more value.
- Channel mix — Paid media usually delivers lower immediate ROAS than organic SEO, events, or referrals.
- Market maturity — In crowded markets, CPC inflation squeezes ROAS; in emerging markets, efficiency may be higher.
“Variation in ROAS is less about campaign skill and more about economics — margins, cycles, and attribution drive the numbers.” – Robin Caller, CEO, Leadscale
Break-even ROAS
Finance leaders often start by asking: what’s the minimum ROAS needed to cover costs?
The formula is simple:
Break-even ROAS = 1 ÷ Gross Margin
For example:
- If gross margin = 50%, break-even ROAS = 2:1.
- If gross margin = 25%, break-even ROAS = 4:1.
This calculation ensures spend is at least self-sustaining. Anything above break-even contributes to profit.
Use a ROAS Calculator to model your own margins and break-even point.
Conclusion
Benchmarks are powerful — but they are guides, not absolutes. Treat them as reference points for budget defence and campaign evaluation, while validating against your own margins, sales cycle, and CAC payback period.
To put these numbers into practice, explore our guide on Three Ways to Improve B2B ROAS Right Now.
FAQs
A good B2B ROAS typically falls between 2:1 and 4:1, with 3:1 often seen as the baseline for sustainable growth.
It varies widely. SaaS often averages 2.6:1, manufacturing 1.8–2.3:1, and SEO-driven campaigns 7–11x returns across many sectors.
They differ due to margins, sales cycles, attribution models, and channel mix. Longer cycles and lower margins reduce observed ROAS.
Break-even ROAS is the minimum return needed for ad spend to cover costs. It is calculated as 1 ÷ gross margin. For example, with a 50% margin, the break-even ROAS is 2:1. Anything above this point contributes to profit.
Benchmarks are reference points, not absolutes. Use them to defend budgets, compare channels, and guide spend allocation — but always validate against your own sales cycle, margins, and CAC payback period.
Paid channels like PPC often return modest ratios (1.5–3x), while SEO and organic strategies can deliver 7–11x returns over time. High-growth teams typically balance both to capture short- and long-term value.
Both matter. Industry averages show if your performance is competitive, but internal targets reflect your unique margins and economics. Use benchmarks as a guide, but prioritise internal break-even and payback models when making budget decisions.
