What’s Your Return on Ad Spend?
(And Why Limo Companies Can’t Afford to Ignore It)
When you’re running ads for your limousine or black car company, it’s easy to get caught up in clicks, impressions, or even form submissions. But the number that really matters?
Return on Ad Spend (ROAS).
ROAS is the clearest way to know whether your marketing is working—and whether it’s time to scale up or shut it down.
What Is ROAS?
ROAS stands for Return on Ad Spend. It tells you how much revenue you generate for every dollar you spend on advertising.
For example:
- Spend $1,000 on Google Ads
- Get $4,000 in bookings
- Your ROAS = 4:1 or 400%
This means for every $1 you spent, you earned $4 back.
Why ROAS Is a Game-Changer for Limo Companies
Let’s break this down using real-world numbers from the industry:
- Average ride value: $600 (4 hours @ $150/hr)
- Average cost per lead: $20
- Average close rate: 20%
So, 5 leads cost $100 and convert to 1 booking worth $600.
That’s a
6:1 return on ad spend.
And that doesn’t count lifetime value, referrals, or repeat service.
How RJS Media Performs Compared to the Industry
Here’s how our campaigns consistently outperform industry benchmarks:
The ROAS Formula
Here’s the simple formula we use to calculate ROAS:
Total Revenue from Ads ÷ Ad Spend = ROAS
Example:
- Spend: $1,500
- Leads: 75 @ $20 each
- Bookings: 15 (20% close rate)
- Revenue: 15 × $600 = $9,000
- ROAS: $9,000 / $1,500 = 6.0 (600%)
Why Good Campaigns Still Get Shut Off
Even with great results, some businesses get nervous. Common reasons:
- “We’re busy now, we don’t want more bookings.”
- “I’m not sure where these leads are coming from.”
- “I don’t see the calls, so I don’t think it’s working.”
- “We’re getting too many unqualified inquiries.”
But here’s the truth:
A campaign can only be judged by what it costs to get a real, paying customer.
If you’re getting profitable bookings at a consistent cost — the campaign is working.
How to Know If Your Ads Are Paying Off
Here’s a quick checklist:
- Are you getting qualified leads consistently?
- Are you booking at least 1 in 5?
- Is each job worth $300 or more?
- Are you spending less than $30 per lead?
If yes, your ROAS is likely well above 3:1 — and shutting ads off would lose you money, not save it.
Final Word: You Can’t Afford to Ignore This Number
The best limo companies treat advertising as a
growth engine, not an expense.
They know exactly what they’re earning for every dollar spent — and they use that insight to scale with confidence.
Want to Know What Your Ads Are Really Doing?
At RJS Media Consulting, we specialize in high-performance Google Ads campaigns built exclusively for limo and black car services. We don’t just get you clicks — we help you book more rides.
→ Book a free strategy session and we’ll calculate your ROAS in plain English. or click here to learn more about our ads services.
