ROAS Benchmarks for AI Video Ads: What to Actually Expect

I’ve seen this movie too many times.

Someone launches AI video ads, checks the dashboard after 72 hours, sees a “bad” ROAS… and kills everything.

Then three weeks later they say:

“AI video doesn’t work.”

Not because AI video can’t work.

Because they were benchmarking the wrong thing, at the wrong time, in the wrong place.

Before we talk numbers: ROAS is a measurement, not a truth

ROAS looks clean:

ROAS = revenue ÷ ad spend

But the “revenue” part depends on:

• attribution window (1-day click vs 7-day click)
• platform reporting vs GA vs your backend
• view-through conversions (counted or not)
• returning customers (included or excluded)
• discounting + shipping + taxes
• subscription revenue (included or not)

So when someone says “we get 3.2x ROAS,” your first question shouldn’t be:

“Nice. How do we get that?”

It should be:

“3.2x on what measurement setup?”

The real benchmark question: “Is this creative helping my business?”

Here’s a better framing:

• Does this ad acquire customers at a cost that fits our margins?
• Does it scale without collapsing?
• Does it keep working after week 1 (fatigue)?

If you’re a DTC brand, you care about payback.

If you’re an app, you care about CAC vs LTV.

If you’re a subscription, you care about retention + cohorts.

ROAS is just a shortcut that sometimes correlates with those truths.

Sometimes it lies.

Why “AI video ROAS benchmarks” are mostly fake

You’ll find articles promising universal benchmarks.

They’re usually wrong for one of three reasons:

1. They mix industries. (Skincare ≠ B2B SaaS ≠ mobile games.)
2. They mix funnel stages. (Prospecting and retargeting ROAS are not comparable.)
3. They ignore the creative system. (One ad vs a variant pack changes everything.)

So here’s what we’ll do instead:

We’ll build benchmarks you can actually use.

Step 1: Benchmark by funnel stage (this is non-negotiable)

A retargeting ad will almost always show higher ROAS than prospecting.

That doesn’t mean it’s “better.”

It means it’s closer to conversion.

Practical ROAS ranges (use as a starting point, not a promise)

These are directional ranges that tend to be realistic across many ecommerce accounts when measured consistently:

Funnel stage	What it’s doing	“Healthy” ROAS range (directional)
Prospecting (cold)	Finding new buyers	0.8x – 2.5x
Retargeting (warm)	Converting interested people	2.0x – 8.0x
Brand search / high intent	Catching people already looking	3.0x – 10.0x+

If your cold ROAS is 1.2x and your warm is 5.0x, that can be totally fine.

If your cold is 4.0x, be skeptical: you might be accidentally counting returning customers or misattributing.

Step 2: Choose the payback window you actually operate on

This is where teams self-sabotage.

They judge ads on day 2, but their product pays back on day 30.

Or they judge ads on day 30, but their cash cycle requires payback in 7 days.

Pick one:

• 7-day payback (aggressive, cash-sensitive)
• 14-day payback (common for DTC)
• 30-day payback (works for many subscription / repeat purchase brands)
• 60–90 day payback (only if you truly have long LTV and can finance it)

Then benchmark ROAS against that payback.

Not against someone’s screenshot on Twitter.

Step 3: Separate “creative learning” from “scaling creative”

AI video changes one big thing:

You can test more variations faster.

That means your first goal isn’t “high ROAS.”

Your first goal is:

Find signal.

Signal looks like:

• higher thumbstop / view rate
• higher CTR
• higher CVR on clicks
• cheaper CPM for the same audience

ROAS often improves after you find and refine signal.

This is why one-off ads fail (and why you need a system): Why One-Off AI Videos Fail.

Step 4: Benchmark AI video ads the right way (creative maturity levels)

Here’s a model that’s way more useful than “good ROAS = X.”

Level 0: Random AI outputs

You generate an ad. You launch it. You pray.

• Expect volatile ROAS.
• You’re not “testing.” You’re gambling.

Level 1: One concept, multiple hooks

Same body. 5 hooks.

• You’re learning what stops the scroll.
• ROAS may still be messy, but CTR improves.

Level 2: Variant tree (hooks × proof × CTA)

One concept becomes 20 assets.

• You learn what actually drives purchase intent.
• ROAS stabilizes.

This is the workflow: How to Scale Creative Testing (Without Blowing Your Budget).

Level 3: You have a creative pipeline

Weekly production. QA. Templates.

• You don’t panic when an ad fatigues.
• You replace it.

(We covered the production system here: The Creative Production Bottleneck (and How AI Breaks It).)

At Level 3, “benchmarks” start to matter, because you’re not reacting to noise.

You’re managing a system.

The “AI video” part: what changes ROAS (for real)

AI video doesn’t magically create demand.

It changes speed and variety.

The ROAS improvements usually come from:

• Better hooks (you can test more angles fast)
• More “native” variations (UGC vibe, founder vibe, demo vibe)
• More iteration loops (ship → learn → ship)
• Better localization (same offer, different language/culture)

The ROAS declines usually come from:

• uncanny visuals (people bounce)
• generic scripts (“AI slop” tone)
• unclear offer / weak proof
• no QA (typos, mismatched captions, weird frames)

A story you’ll recognize (and what to do instead)

Let’s say you run a $60 AOV product with a 60% gross margin.

You launch one AI ad.

Day 3 ROAS is 0.7x.

Panic.

You kill it.

But what if the real issue wasn’t “AI”?

What if:

• the hook was weak
• the proof was missing
• the CTA was vague
• the audience needed 7 days to convert

Here’s the alternative:

You launch one concept with:

• 5 hooks
• 2 proof styles (testimonial vs demo)
• 2 CTAs (soft vs direct)

That’s 20 variants.

Now you’re not judging “the ad.”

You’re learning which variables drive ROAS for your offer.

That’s what AI is for.

A practical benchmark dashboard (what to track weekly)

If you want to benchmark properly, track this weekly:

Creative diagnostics (leading indicators)

• Hook view rate / thumbstop (platform-specific)
• CTR (link or landing page)
• CPC
• Landing page CVR

Business diagnostics (lagging indicators)

• ROAS by funnel stage
• CAC by funnel stage
• Payback day (7/14/30)
• New customer % (if you can)

Then you’ll know:

Is creative failing?

Or is measurement lying?

Or is the offer the bottleneck?

The closest thing to a real “benchmark” (the one-liner)

If you want one line you can actually use:

A “good” ROAS is the one that hits your payback window while staying scalable — and you can only judge it by funnel stage.

That’s it.

Quick checklist (so you don’t fool yourself)

• Compare ROAS only within the same funnel stage
• Use a consistent attribution window
• Decide your payback window before you launch
• Test variants, not one-offs
• QA the output (AI speed can ship mistakes fast)

If you do that, you’ll stop chasing fake benchmarks.

And you’ll start building a creative machine that prints learnings.