Blended ROAS in Google Ads Reports Explained

Blended ROAS (Return on Ad Spend) shows how much revenue you generate for every dollar spent across all marketing channels - not just individual campaigns. It combines revenue and ad spend from platforms like Google Search and Performance Max, giving a complete view of overall performance. This metric helps eCommerce businesses:

• Track success across channels to understand customer journeys.
• Make smarter budget decisions by identifying the best-performing channel combinations.
• Improve campaigns by addressing underperforming areas and optimizing strategies.

Quick Formula:

Blended ROAS = Total Revenue from All Channels ÷ Total Ad Spend Across All Channels

For example:If Google Search brings $25,000 revenue with $5,000 spend, and Performance Max adds $15,000 revenue with $3,000 spend:Blended ROAS = ($25,000 + $15,000) ÷ ($5,000 + $3,000) = 5.0This means $1 spent generates $5 in revenue.

Use this metric alongside others like Customer Lifetime Value (CLV) and Average Order Value (AOV) for deeper insights into profitability and campaign effectiveness.

What is Blended ROAS and Why You Need It

How to Calculate Blended ROAS

Blended ROAS measures overall advertising performance by combining revenue and ad spend across all channels.

Basic Formula and Examples

The formula is straightforward:

Blended ROAS = Total Revenue from All Channels / Total Ad Spend Across All Channels

Here’s an example to illustrate:

Channel	Revenue	Ad Spend
Google Search	$25,000	$5,000
Performance Max	$15,000	$3,000
Total	$40,000	$8,000

Using the formula:

Blended ROAS = $40,000 / $8,000 = 5.0

This means for every $1 spent on advertising across these channels, the business generates $5 in revenue. Once you’ve calculated this, you can dig deeper with additional metrics.

Related Performance Metrics

To refine your understanding of blended ROAS, consider these related metrics:

• Customer Lifetime Value (CLV): This metric shows the long-term value of customers acquired through your campaigns. It’s especially useful for campaigns with lower initial ROAS but higher long-term returns from repeat customers.
• Average Order Value (AOV): By tracking AOV alongside blended ROAS, you can see which channel combinations lead to larger purchases. This insight can guide budget adjustments and campaign tweaks.
• Multi-Touch Attribution: Not all channels directly close sales, but they may assist in the conversion process. Multi-touch attribution helps you understand how each channel contributes, so you don’t undervalue key players in the customer journey.
• First-Party Data Integration: Including first-party data in your calculations gives a clearer picture. It helps you:
  • Map out complete customer journeys
  • Spot behavioral trends
  • Identify high-value customer segments

Using a custom dashboard to track these metrics ensures consistent measurement and helps uncover trends that impact your blended ROAS.

Reading Blended ROAS in Reports

Understanding ROAS Values

Blended ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent. For example, a 4.0 blended ROAS means $1 spent generates $4 in revenue.

Here’s how to make sense of ROAS values in your reports:

• Baseline Performance: Compare your blended ROAS to benchmarks and your past results. Targets will differ based on factors like product category, profit margins, and seasonal shifts.
• Performance Trends: Use custom date ranges in Google Ads to compare current performance with historical data. This helps uncover seasonal trends and evaluate campaign success.
• Campaign-Level Analysis: Break down ROAS by campaign type to identify what’s working and what’s not. If one campaign consistently delivers higher ROAS, consider shifting more budget to it.

After reviewing these, it’s time to bring in additional data sources to refine your reporting.

Combining Data Sources

To get a complete picture of your blended ROAS, combine data from multiple Google Ads sources.

Custom Dashboard Setup

Report Element	Purpose	Key Metrics to Include
Overview Tab	High-level performance	Total Revenue, Total Cost, Blended ROAS
Channel View	Compare performance by channel	Channel-specific ROAS, Revenue by Channel
Time Analysis	Track trends over time	Daily/Weekly ROAS, Moving Averages

Key Focus Areas:

• Data Synchronization: Ensure conversion tracking is active across all channels. Double-check that conversion values in Google Ads match your eCommerce data.
• Attribution Windows: Use the same attribution window across all campaigns. For instance, if Search campaigns use a 30-day window, apply the same to other campaign types for consistency.
• Custom Columns: Set up custom columns in Google Ads to calculate blended ROAS automatically. This saves time and ensures consistent reporting.

Exclude campaigns that don’t generate revenue, like brand awareness campaigns, from blended ROAS calculations. These campaigns should be measured using other metrics.

For deeper insights, use the Google Ads API to pull data into external analytics tools. This allows for advanced analysis and visualization of ROAS performance across different time frames and campaign types.

Using ROAS Data to Improve Campaigns

After analyzing performance, the next step is to turn that data into meaningful campaign improvements.

Cross-Channel Data Collection

Gathering data from multiple channels helps you calculate blended ROAS effectively. To do this, ensure accurate conversion tracking is in place and sync daily data from your eCommerce analytics and ad platforms.

Focus on tracking:

• Revenue data
• Ad spend
• Conversion values
• Customer touchpoints

With automated daily syncs, you can spot trends quickly and make timely adjustments to your campaigns.

Setting ROAS Goals

Establish realistic ROAS targets by factoring in critical business metrics:

Business Factor	Impact on ROAS Target	Consideration
Profit Margins	Direct correlation	Higher margins allow for more flexibility in ROAS targets
Operating Costs	Inverse relationship	Higher costs demand higher ROAS for profitability

Your ROAS goals should be:

• Specific – Clearly define targets (e.g., aim for a 4.5 ROAS in search campaigns)
• Measurable – Monitor progress regularly, like daily or weekly
• Achievable – Base targets on past performance and market trends
• Time-bound – Set deadlines for evaluating results

Once your goals are in place, you can focus on smart budget allocation.

Budget Distribution

Distribute your budget strategically by analyzing blended ROAS:

• Review performance across channels, timeframes, and campaign types.
• Reallocate funds from underperforming channels to those delivering better results.
• Continuously monitor outcomes and tweak your strategy as needed.

A real-world example: McNeela Music partnered with Senwired to refine their paid marketing on Google. By consolidating outdated campaigns, optimizing performance max setups, and tailoring campaigns to specific markets, they achieved noticeable growth in revenue and ROI across all platforms and regions. (Source: senwired.com)

Common Problems and Solutions

Blended ROAS analysis can face hurdles that distort campaign insights. Here’s a breakdown of common issues and practical ways to address them.

Data Quality Control

Accurate data is essential for reliable analysis. Here's how to maintain consistency across platforms:

Cross-Platform ConsistencyKeep conversion data uniform by:

• Regularly reconciling revenue between platform reports and actual sales
• Using consistent UTM parameters and naming conventions
• Ensuring data aligns across all channels

First-Party Data IntegrationIncorporate first-party data for better ROAS accuracy by:

• Implementing server-side tracking for dependable data collection
• Setting up automated systems to verify data
• Creating custom channel groupings to refine attribution

Once your data is solid, you can expand your analysis to include additional performance metrics.

Using Multiple Metrics

Blended ROAS is insightful, but it works best when paired with other performance indicators. After securing data quality, incorporate these metrics to get a fuller picture.

Primary Performance Indicators

Metric	Purpose	Relationship to ROAS
Customer Lifetime Value	Measures long-term profitability	Helps adjust ROAS targets based on acquisition value
New vs. Returning Customer Rate	Analyzes customer behavior	Shapes channel-specific campaign objectives
Average Order Value	Optimizes revenue	Directly affects ROAS calculations

Advanced Analytics IntegrationLeverage custom dashboards to combine cross-channel data for better decision-making. Focus on:

• Attribution modeling across channels
• Mapping the customer journey
• Optimizing bids in real time

When evaluating performance, balance immediate ROAS with long-term customer value. For instance, a campaign might initially show a lower ROAS but attract higher-value customers over time. By improving data quality and incorporating diverse metrics, you’ll gain deeper insights and make smarter optimization decisions.

Conclusion

Key Takeaways

Blended ROAS is a metric that gives a clear picture of marketing performance across all channels. It helps eCommerce businesses make smarter decisions by focusing on overall efficiency and growth.

Why Blended ROAS Matters:

• Offers a complete view of marketing performance
• Guides better budget decisions
• Tracks profitability over time
• Helps adjust campaigns for better results

By focusing on blended ROAS, businesses can pinpoint the channels that drive revenue while keeping ad spend under control.

How to Begin

To start tracking blended ROAS effectively, follow a structured plan:

Implementation Steps:

Phase	Area of Focus	Key Actions
Setup	Data Collection	Implement cross-channel and server-side tracking
Integration	Revenue Tracking	Connect ad platforms and standardize UTM tags
Analysis	Performance Review	Build custom dashboards and attribution models
Optimization	Campaign Adjustments	Refine budgets and improve bidding strategies

With these steps, you’ll be ready to track and improve your blended ROAS.

If you're aiming to improve your Google Ads results, Senwired offers expertise in campaign optimization and analytics. They specialize in Performance Max campaigns, Shopping strategies, and growth planning to help eCommerce businesses improve ROAS while reducing wasted ad spend.

Achieving success with blended ROAS requires constant tracking, maintaining accurate data, and regularly updating your strategies.

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