What is ROAS?
ROAS (return on ad spend) is the revenue you get back for every euro of ad budget. A ROAS of 4 means €4 in revenue per €1 spent on ads. Online stores lower their ad costs by shifting budget to products that sell, and by reaching loyal customers through their own channels instead of paid clicks.
Lower ad costs don’t mean advertising less, but advertising smarter: every euro going to products and customers that deliver. Growth Sharks helps online stores choose between budget per product, better product data and their own channel, such as a shopping app.
Last updated on 10 November 2026 by Raymond Vonk, co-founder of Growth Sharks.
Three technologies that make your ad budget pay off
Boostic steers the budget. Reskyt and Fozzels make sure you need less of it.
Around Christmas (25 December), online stores spend the most on ads. Make sure every euro goes to products that sell.
Which approach fits your online store?
From the Knowledge base: ad costs
Go to the Knowledge base →Frequently asked questions about ad costs
What is ROAS?
ROAS stands for return on ad spend: the revenue you get back for every euro of ad budget. You calculate it as ad revenue divided by ad costs. €8,000 in revenue from a €2,000 budget is a ROAS of 4. Look at your margin as well, because a high ROAS on low-margin products can still mean a loss.
What is a good ROAS for an online store?
That depends on your margin. Your break-even ROAS is 1 divided by your gross margin. With a 50% gross margin you only make money above a ROAS of 2, with a 25% margin only above 4. Anything above that is profit, anything below costs you money.
How do I lower my ad costs without losing revenue?
By shifting budget rather than cutting it. Take budget away from products that get clicks but don’t sell, and put it on your best performers. Reach loyal customers through your own channels, such as an app or email, and improve your product feed so your ads match better.
What are custom labels in Google Shopping?
Custom labels are extra fields in your product feed that let you group products in your campaigns, for example by margin, return or season. You can then set a different bid or budget for each group. Boostic fills these labels automatically based on what each product delivers.
Why does my Performance Max budget go to the wrong products?
Performance Max spreads your budget across channels and products by itself, optimising for the goals you set. Without guidance, budget often goes to products that get lots of clicks, not to those with the best margin. Labels in your product feed give the campaign that guidance back.
Does a shopping app help reduce ad costs?
Yes, for loyal customers. A push notification to your app users costs nothing per message, while you have to pay for the same customer again through an ad. The more repeat purchases go through the app, the less budget you need to win them.
Which technology fits my online store?
If you advertise every month through Google Shopping, Performance Max or Meta, start with the split per product. If many customers come back through ads, your own channel delivers more. If your feed is thin, richer product data helps. In 30 minutes we work it out together.
What does Growth Sharks’ advice cost?
Nothing. Growth Sharks charges online stores no consultancy fees. We work with commercial agreements with the technology companies themselves. You sign the contract for the technology you choose directly with the vendor.
Where does your ad budget go?
In 30 minutes we look together at your campaigns and your catalogue. You get advice on where the biggest gains are.