Advertising

“Guaranteed ROAS” and other billboard lies

You've heard it on a sales call: “we guarantee you a ROAS of 5”. It sounds good. The problem is that nobody serious can promise that without having seen a single figure from your business.

It's one of the sentences we hear most from clients arriving burnt by another agency: “they promised me a 5-to-1 return and we haven't seen anything like it”. And the explanation is almost always the same: that figure was made up before anyone looked at the account.

ROAS (Return On Ad Spend) is a real and useful metric. The problem isn't the metric, it's promising it without any prior data, as though it were a magic number that's the same for any business, sector or margin.

The impossible promise: a number before seeing anything

No serious agency can tell you how much you'll sell for each euro invested before knowing your history, your margin, your average order value and the real competition in your auctions. Promising it up front isn't optimism: it's a sales tactic.

What ROAS actually depends on

  • Your margin and average order value: a ROAS of 3 can be excellent or ruinous depending on how much you make per sale.
  • The competition in your auction: bidding in a saturated sector doesn't cost the same as in a niche one.
  • Your website and your sales process: the best ad in the world doesn't sell if the landing page doesn't convert.
  • The account's history: a new account with no data takes time to learn, however well optimised it is.

A “guaranteed” ROAS without seeing your account is like a doctor prescribing without a diagnosis.

Other warning signs in a proposal

  1. Firm figures before the auditAny serious number comes after looking at your current account, not before.
  2. A commission on advertising spendIt rewards spending more, not spending better: their interests and yours stop being aligned.
  3. A long lock-in with no clear reportingIf you're tied in for months with no transparent view of what's working, something doesn't add up.

No hype: we don't guarantee you a ROAS before looking at your account either. What we do guarantee is a realistic target, zero commission on your advertising spend, and data you can check yourself whenever you like.

What to expect from a serious agency

An honest proposal starts with questions, not promises: what's your margin, what have you tried before, how does your website convert today. From there you can talk about realistic targets — and about how to measure them together, without depending on a single report only the agency understands.

Frequently asked questions

What is ROAS?

Return on ad spend: how many euros you take in for every euro you spend on ads. A ROAS of 4 means that for every euro invested you've taken in four. Taken in, not earned: margin is another matter, and it's the one that really decides whether the campaign is any use to you.

Can a specific ROAS be guaranteed?

No, and anyone doing so without having seen your account is selling you hot air. The return depends on your margin, your website, your competition and seasonality. What can be guaranteed is the method: what will be measured, how often it's reviewed and when what isn't working gets stopped.

What ROAS is good for my business?

It depends on the margin. On a 20% margin, a ROAS of 5 is the point at which you stop losing money. On a 60% margin, a ROAS of 2 is already profitable. Which is why a figure on its own, without your margin in front of you, means nothing.

How do I know whether my agency is measuring it properly?

Ask where the conversion figure comes from and check it against your real sales. If the platform says 40 sales and you've invoiced 12, something is being counted wrong: duplicated tags, conversions that aren't sales, or attribution claiming credit for what would have happened anyway.

How long should a campaign run before you judge it?

As long as it needs to gather enough data, which depends on volume, not on the calendar. Judging a campaign on fifteen clicks is a coin toss; waiting six months for it to “mature” without touching anything is the opposite excuse.

Want a proposal without inflated figures?

We look at your current account and your business before talking numbers. No commission on your advertising spend.

GV
Written by The Gran Vía Solutions team

An SEO, web and applied-AI agency in Albacete, Spain. We explain what we do in plain language, with no hype and no buzzwords.