How can you set individual ROAS targets for different channels?

• A. By assigning targets based on historical data or estimates, e.g., 3:1 for search ads, 4:1 for display ads, and 2:1 for social media ads
• B. By applying a single company-wide ROAS target across all channels
• C. By setting arbitrary targets without data
• D. By using only qualitative judgments rather than data

Answer: (A)

Channel-level ROAS targets should be set with data on how each channel performs and contributes to revenue. Use historical ROAS and forecasted value to establish channel-specific targets, rather than a single company-wide target or guesswork. This recognizes that search typically delivers high-intent conversions, display can require broader reach and has different cost dynamics, and social performance can vary by audience and creative. By basing targets on data, you can set realistic, actionable goals like aiming for a 3:1 ROAS on search, 4:1 on display, and 2:1 on social, reflecting each channel’s costs, conversion rates, and average order value. Data-driven targets also support better budget allocation and optimization as performance evolves. Relying on a uniform target, arbitrary numbers, or qualitative judgments ignores channel-specific economics and is less likely to maximize overall profitability.