What Is ROAS in Advertising? (Home Services)

Return on Ad Spend (ROAS) is one of the most important metrics for measuring the success of your home service marketing. Whether you run plumbing, HVAC, landscaping, or cleaning ads, ROAS tells you exactly how much revenue you earn for every dollar you spend on advertising.

How ROAS is calculated

The formula for ROAS is simple:

ROAS = Revenue from Ads ÷ Cost of Ads

For example, if you spend $500 on Google Ads and book $2,500 worth of jobs, your ROAS is 5:1. That means you made five dollars for every dollar you invested in ads.

Why ROAS matters for home service companies

ROAS tells you whether your advertising is profitable. A high ROAS means your campaigns are attracting the right customers and generating strong returns. A low ROAS means your ad spend may be targeting the wrong audience, using weak messaging, or promoting low-margin services.

What is a good ROAS for home service ads?

While results vary by service type and market, here are some common benchmarks:

• Emergency services: Plumbing or HVAC calls often aim for 5:1 or higher because of high urgency and high value.
• Recurring services: Lawn care or cleaning services can be profitable at 3:1 if customer lifetime value is high.
• High-ticket installs: Roofing, solar, or large renovation jobs may see strong returns even at 2:1 due to higher profit margins.

How to improve ROAS for your home service business

1. Target high-intent keywords: Use search terms like “emergency plumber near me” or “AC repair today” for faster conversions.
2. Advertise high-value services: Focus more budget on services that deliver the highest margins.
3. Use trust-building creatives: Include before-and-after photos, customer reviews, and guarantees in your ads.
4. Streamline the booking process: Make it easy for customers to request service online or by phone with one click.

The bottom line for home service businesses

ROAS is the clearest measure of whether your advertising is working. By tracking it closely and optimizing your targeting, creatives, and offers, you can make sure every dollar you spend on ads brings in profitable jobs — and keeps your schedule full.

Want to increase your ROAS and book more high-value jobs? Contact us for a home service marketing strategy session.