Weekly ROAS Review Template

ROAS Threshold Framework

Threshold setting depends on unit economics, not industry benchmarks. A 3:1 ROAS for one brand is failure; for another, it's breakeven or profit.

Start with this formula: Minimum ROAS = (COGS + Fulfillment + Payment Processing) / (Revenue per Order). If COGS is 35%, fulfillment $4, processing 3%, and AOV is $80, minimum ROAS is roughly 1.5:1. Anything below that is losing money on ad spend alone.

Healthy ROAS for profitable DTC brands typically sits 2.5:1 to 4:1 across all paid channels combined. Mature, efficient channels (Facebook, Google Search) often run 3:1 to 5:1. New channels or testing phases run 1.5:1 to 2.5:1.

Set three tiers: Red (below breakeven), Yellow (breakeven to target minus 20%), Green (target or above). Review weekly to catch drift before it compounds.

Weekly Review Checklist

Conduct review on a fixed day (Tuesday or Wednesday preferred - enough data from weekend, before mid-week decisions). Pull data from ad platform, GA4 or equivalent, and order management system.

Total spend by channel (Facebook, Google, TikTok, email, other)
Total attributed revenue by channel (use consistent attribution window - 7-day click or 1-day view standard)
ROAS calculation per channel (revenue ÷ spend)
Week-over-week ROAS change (this week vs. last week, same channel)
Cost per acquisition (CPA) by channel - spend ÷ conversions
Conversion rate by channel (conversions ÷ clicks or impressions)
Average order value (AOV) by channel - revenue ÷ orders
Cumulative ROAS (all channels combined)
Spend pacing vs. weekly budget (on track, over, under)
Red flag campaigns or ad sets (ROAS below 1.2:1, CPA above historical average by 30%+)

Failure Mode Diagnosis

ROAS decline has three root causes: lower revenue per order, higher cost per click, or lower conversion rate. Isolate which one shifted.

If ROAS dropped but CPA stayed flat, AOV fell. Check: product mix (lower-priced items), discount depth, or customer quality shift. Action: review best-selling SKU list week-over-week.

If AOV held but ROAS dropped, CPA rose. Check: bid increases (platform auto-scaling), audience fatigue (frequency too high), or creative decay. Action: audit ad frequency, pause underperforming creatives, lower bids on high-spend, low-conversion campaigns.

If CPA held but ROAS dropped, conversion rate fell. Check: landing page changes, site speed regression, checkout friction, or traffic quality shift. Action: compare conversion funnel to baseline; test page speed; review traffic source composition.

If all three metrics declined simultaneously, the issue is usually traffic quality or macro (iOS privacy, platform algorithm shift). Action: diversify channels; test new audiences; audit pixel data accuracy.

Channel-Specific Decision Rules

Facebook / Instagram: Target 3:1 to 4:1 ROAS. If below 2.5:1 for two consecutive weeks, pause bottom 20% of ad sets by spend. Frequency above 3 signals audience fatigue - refresh creative or narrow audience. CPA trending up 15%+ week-over-week suggests bid competition; reduce daily budget 10 - 15% and test lower bid strategies.

Google Search: Target 4:1 to 5:1 ROAS (higher intent). If below 3:1, audit keyword quality score and landing page relevance. Pause keywords with CPA 40%+ above account average. Review search term report for brand hijacking or irrelevant queries.

TikTok: Target 2:1 to 3:1 ROAS (newer channel, higher CAC expected). If below 1.5:1 after 2 weeks, pause campaign and audit creative. TikTok requires 50+ conversions per week per campaign to optimize reliably; consolidate spend if fragmented.

Email: Track ROAS separately from paid. Benchmark against 8:1 to 15:1 (much lower cost per send). If below 5:1, segment list; pause inactive subscribers; test send time and subject line variants.

Attribution and Data Integrity

ROAS is only as good as attribution. Confirm that the ad platform, analytics tool, and order system agree on revenue within 5 - 10%. Larger gaps indicate tracking loss or duplicate counting.

Use consistent attribution windows. Most platforms default to 7-day click or 1-day view. Stick to one standard across all channels for weekly comparison. Document the window in your review template.

Cross-check platform-reported conversions (Facebook Conversions API, Google Analytics 4 events) against order count in Shopify. If platform reports 100 conversions but Shopify shows 85 orders, investigate: duplicate orders, test transactions, or pixel misfire.

For multi-touch attribution (customer touches multiple channels before purchase), assign credit using first-click, last-click, or linear model consistently. Document which model is used in weekly reports to avoid confusion.

Action and Escalation Protocol

Green status (ROAS at or above target): Maintain spend. Review creative performance; pause bottom 10% by ROAS. Test 5 - 10% of budget on new audiences or creatives.

Yellow status (ROAS 80 - 100% of target): Investigate root cause (AOV, CPA, or conversion rate). Reduce spend 10 - 20% on underperforming ad sets. Increase spend on top performers by 5 - 10%. Set 1-week follow-up review.

Red status (ROAS below breakeven): Pause all campaigns in that channel or ad set immediately unless root cause is identified and fix is in progress. Reallocate spend to Green channels. Schedule daily check-in until ROAS recovers above Yellow threshold.

If cumulative ROAS (all channels) falls below target for two weeks, escalate to leadership. Recommend: reduce overall ad spend 20 - 30%, pause testing, focus on retention and LTV recovery, or audit product-market fit.

Template Structure and Cadence

Create a repeatable weekly template in a spreadsheet or dashboard. Rows: channels. Columns: spend, revenue, ROAS, CPA, conversion rate, AOV, week-over-week change, status (Red / Yellow / Green), notes.

Add a summary row: total spend, total revenue, cumulative ROAS, and a narrative section for root cause analysis and actions taken.

Schedule 30 minutes every Tuesday morning to pull data and populate the template. Schedule a 15-minute sync with the team lead to review findings and approve actions.

Archive weekly reviews in a shared folder. Compare month-over-month and quarter-over-quarter to spot seasonal trends and long-term drift.

Questions

FAQ

What attribution window should we use for weekly ROAS review?

Use 7-day click or 1-day view as the standard. This captures most conversions while remaining consistent week-to-week. Document your choice and stick to it. If you switch windows, note the change in your review to avoid false positive / negative signals.

How do we handle ROAS for campaigns still in learning phase?

Campaigns with fewer than 50 conversions per week should not trigger Red status actions. Instead, track CPA and conversion rate trends. Once a campaign hits 50+ conversions, apply standard ROAS thresholds. Learning phase typically lasts 1 - 3 weeks depending on spend.

Should we review ROAS by device (mobile vs. desktop)?

Yes, if spend is split meaningfully between devices (e.g., 60% mobile, 40% desktop). Mobile often has lower ROAS due to higher friction and lower AOV. Set separate thresholds per device if performance diverges by 20%+ and take device-specific actions (mobile: test one-click checkout; desktop: test upsell).

How do we account for organic traffic and non-attributed sales in ROAS?

ROAS measures only attributed paid ad revenue. Organic and direct sales are tracked separately. If organic traffic is significant (20%+ of total), monitor it independently but do not include it in ROAS calculation. ROAS is a paid channel efficiency metric, not a total revenue metric.

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Weekly ROAS Review: Thresholds, Diagnostics, and Decision Rules