The marketing funnel: Why ROAS is not the same for all campaigns
Different campaigns pursue different goals – and must therefore be evaluated differently. The marketing funnel helps to understand the context:
Awareness
Build reach, address new people
Consideration
Generate interest, enable comparisons
Conversion
Trigger booking, achieve direct action
Campaigns at the top of the funnel (Awareness, e.g. Meta branding campaigns, Display) typically have a lower ROAS – they are designed to reach new audiences, not to convert immediately. Their value only becomes visible later in the funnel.
Campaigns at the bottom of the funnel (Conversion, e.g. Google Search, Retargeting) usually have a higher ROAS, as they address users who are already ready to buy.
Important: ROAS always also depends on external factors
- Website performance: Slow loading times or a complicated booking process lower the ROAS, regardless of ad quality.
- Economic factors: Purchasing power, seasonality, booking behaviour (last-minute vs. early booking) influence the result.
- Destination and awareness: Well-known brands or destinations convert better than new or unknown ones.
- Occupancy: If a booking cannot be made because the hotel is already fully booked on the desired dates, the ROAS falls.