Meta vs. Google Ads in India: Where Should You Invest for Maximum ROAS in 2025?

If you’re a business owner or marketer in India, you’ve probably faced this dilemma: Should you invest in Meta Ads or Google Ads for better returns? With digital advertising costs rising and competition getting fiercer, choosing the right platform is crucial to maximising your ROAS (Return on Ad Spend).

In 2025, both Meta Ads (Facebook & Instagram) and Google Ads (Search & Display) have evolved with AI-driven automation, new ad formats, and stricter privacy regulations. But which platform will give you the highest ROAS this year?

That’s exactly what we’ll explore in this blog. By the end, you’ll know:
✔️ How Meta Ads & Google Ads work in 2025
✔️ CPC trends in India across industries like Edtech, Real Estate, and D2C
✔️ Which platform suits your business goals
✔️ How to optimise ad spend for the best ROAS

Let’s break it down! 

What is ROAS & why does it matter?

If you’re running ads, there’s one number you need to keep an eye on: ROAS (Return on Ad Spend). Think of it as the scoreboard for your ad campaigns. It tells you, in the simplest terms, whether your ads are making you money—or just draining your budget.

For example: If you spend $1,000 on ads and generate $5,000 in revenue, your ROAS is 5:1 (or 500%)—meaning you made $5 for every $1 spent.

But does a 5:1 ROAS mean success? Not always. Which brings us to…

ROAS vs. ROI: What’s the difference?

It’s easy to confuse ROAS (Return on Ad Spend) with ROI (Return on Investment), but they measure different things:

Why does this matter? Because a high ROAS doesn’t always mean you’re making a profit. If your product margins are low or you have other hidden costs (like fulfilment, salaries, or overheads), you might still be losing money—even with a good ROAS.

Why should you track ROAS?

If you’re serious about scaling your business, tracking ROAS isn’t optional—it’s essential. Here’s why:

• Tells you what’s working – Instead of guessing, you’ll know which campaigns, keywords, and ad creatives are driving revenue.
• Helps optimise your ad budget – If some ads have a low ROAS, you can tweak or cut them. If others are performing well, you can scale them.
• Prevents wasted spending – Without ROAS, it’s easy to overspend on underperforming ads and miss out on profitable opportunities.
• Different businesses, different goals – A SaaS company might aim for a 3:1 ROAS, while an e-commerce brand might need 4:1 or higher to be profitable. Understanding your own ROAS benchmark helps you set realistic expectations.

Meta ads (Facebook & Instagram ads)

Meta ads (Facebook & Instagram ads), remain one of the most powerful tools for digital marketing in 2025. But Meta’s advertising ecosystem now relies heavily on artificial intelligence and automation to optimise ad delivery.

Meta ad formats in 2025

• Image ads – Great for brand awareness.
• Video ads – Best for engagement and storytelling.
• Carousel ads – Ideal for showcasing multiple products.
• Reels ads – Perfect for short, engaging content.

Key updates

• AI-powered ad creatives – Meta now generates ad variations using AI to improve engagement.
• Privacy-first targeting – With third-party cookie restrictions, targeting has shifted to first-party data, behavioural signals, and contextual advertising.
• Advanced machine learning bidding – Automated bidding strategies predict user intent more accurately, reducing wasted ad spend.

Who benefits most from Meta Ads?

• D2C brands – Clothing, beauty, home décor, and other consumer goods.
• E-commerce – Online stores looking to boost sales and customer acquisition.
• Lead generation businesses – Coaching, fitness programs, and subscription-based services.
• Brands with strong visuals – Those that rely on storytelling and engaging content.

Google ads

In 2025, Google Ads remains the go-to platform for businesses looking to capture high-intent users. With AI-powered automation, better audience targeting, and Performance Max campaigns, Google has made advertising more data-driven than ever.

Google ads in 2025: What’s new?

• AI-driven search ads – Google’s AI now suggests headline variations, descriptions, and keyword bids to improve conversions.
• Automated audience targeting – Machine learning refines audience segments based on real-time user behaviour.
• Performance Max enhancements – Google’s all-in-one campaign type now offers hyper-personalised ad delivery across Search, YouTube, Display, Gmail, and Shopping.
• Privacy updates & first-party data – Google Ads relies more on Google Analytics 4 (GA4) and first-party data instead of third-party cookies.

Search ads vs. display ads

Google ads can be broadly divided into two categories:

• Search ads (Text-based ads appearing on Google search results)
  • Example: A real estate agency bids on keywords like “buy luxury apartments in Mumbai.” When users search for this, the agency’s ad appears at the top of Google.
  • Best for: High-intent searches (e.g., real estate, legal services, B2B, education, finance).
• Display ads (Image/banner ads appearing on websites and YouTube)
  • Example: A fitness brand runs banner ads across health blogs and YouTube videos.
  • Best for: Brand awareness, retargeting, and engaging passive audiences.

Google shopping, Performance Max & YouTube ads

• Google shopping ads – Essential for e-commerce brands looking to showcase products at the top of search results.
• Performance Max – A one-campaign solution that automatically distributes ads across Google’s entire network (Search, YouTube, Display, Discover, Gmail, and Maps).
• YouTube ads – Powerful for storytelling, brand building, and retargeting (especially with AI-generated video scripts).

Who benefits most from Google ads?

• Real estate – Property listings, developers, and agencies targeting high-intent buyers.
• High-ticket services – B2B SaaS, legal services, financial products, and healthcare.
• Education (Edtech & Universities) – Capturing leads for online courses, coaching, and admissions.
• D2C & retail – Brands running Google Shopping & Performance Max campaigns.

What is a good ROAS for Google ads and Meta ads in 2025?

What does a good ROAS actually look like? Is 2:1 good? Should you aim for 5:1? Well, the answer isn’t one-size-fits-all. It depends on your industry, platform, and goals. Let’s break it down.

Industry benchmarks for different platforms

Here’s a quick look at the average ROAS across Google Ads and Meta Ads (formerly Facebook & Instagram ads):

• Google ads (Search): 3:1 to 5:1 (For every $1 spent, businesses typically earn $3–$5)
• Google ads (Display & YouTube): 2:1 to 4:1 (Lower than search because display ads are more about brand awareness)
• Meta ads (Facebook & Instagram): 1.5:1 to 3:1 (Varies widely based on audience targeting and creative quality)
• E-commerce brands (Overall ROAS): 2:1 to 4:1 (Highly dependent on product price and margins)

Please note:
If your profit margins are high, a lower ROAS (like 2:1) might still be profitable. If margins are thin, you’ll need a higher ROAS (closer to 4:1 or more) to break even.

How ad type, industry, and audience impact ROAS?

Your ROAS isn’t just about the platform—it’s about the kind of ads you’re running, your industry, and your audience.

Ad type matters:

• Search ads (Google) tend to have higher ROAS because they target people actively searching for products.
• Display ads (Google & Meta) are more about awareness, so they usually have lower ROAS but help in long-term brand building.
• Video ads (YouTube, Instagram reels, Facebook stories) can vary—some go viral and generate massive ROAS, while others struggle.
• Retargeting ads often have the highest ROAS because they bring back people who have already shown interest.

Industry differences:

• E-commerce: ROAS can be as high as 10:1 for well-optimized campaigns, but 2:1 to 4:1 is common.
• SaaS (Software as a Service): ROAS might be 1:1 to 3:1, but since customers subscribe long-term, profitability comes from customer lifetime value (LTV) rather than immediate ROAS.
• Real estate: ROAS is often lower (1:1 to 2:1) because conversions take longer, but high-ticket sales make up for it.
• Local businesses: ROAS can range from 2:1 to 5:1, but success often depends on strong geo-targeting.

Your audience matters:

• If you’re targeting cold audiences (people who don’t know your brand), expect a lower ROAS.
• If you’re running ads to warm audiences (people who’ve engaged with your brand before), your ROAS will be higher.
• If you focus on repeat customers, you might even see ROAS of 8:1 or more.

Expected ROAS trends in 2025

• AI-driven ad optimisation

Google & Meta are using AI-powered bidding strategies more than ever. This means better targeting and potentially higher ROAS—if you use automation correctly.

• First-party data will be key

With privacy changes and cookie deprecation, businesses that rely on first-party data (like email lists, customer interactions, and CRM data) will see higher ROAS compared to those relying purely on third-party tracking.

• Video ads will dominate

Short-form videos on YouTube Shorts, Instagram Reels, and TikTok will keep growing, and brands that master engaging video content will see higher ROAS than those sticking to static ads.

• Personalisation will be essential

Generic ads won’t cut it. Dynamic ads (which change based on user behavior) will help businesses improve ROAS by showing the right message to the right person at the right time.

• Higher ad costs, lower ROAS?

Ad costs are rising every year, meaning brands may need to accept slightly lower ROAS unless they focus on improving conversion rates and customer lifetime value (LTV).

So, what’s a good ROAS for you?

There’s no universal “perfect” ROAS, but here’s a quick way to check if your ads are on the right track:

• If your ROAS is under 1:1 → You’re losing money. Time to fix targeting, ad creatives, or landing pages.
• If your ROAS is 2:1 to 4:1 → You’re in a decent range, but it depends on your profit margins.
• If your ROAS is 5:1 or higher → Your ads are working well! Scale up if possible.

Factors that impact ROAS

If your ROAS isn’t where you want it to be, don’t panic. There are four key factors that directly affect how well your ads perform. Let’s break them down:

Ad targeting & audience segmentation

Ever felt like an ad was speaking directly to you? That’s good targeting at work.

• Cold vs. warm audiences:
  • Targeting cold audiences (people who’ve never heard of you) usually results in lower ROAS—they’re not ready to buy yet.
  • Warm audiences (website visitors, past buyers, email subscribers) typically have higher ROAS because they already trust your brand.
• Lookalike & retargeting audiences:
  • Lookalike audiences (people similar to your best customers) can help scale your campaigns profitably.
  • Retargeting campaigns (ads shown to people who visited your site but didn’t buy) often bring the highest ROAS.

Ad creatives & copy effectiveness

Your targeting can be perfect, but if your ad creative doesn’t catch attention, your ROAS will suffer.

• Scroll-stopping visuals: Your ad has less than 3 seconds to grab attention—use bold visuals, motion graphics, or short-form videos.
• Clear & persuasive copy: The best-performing ads use:
  • A strong hook (e.g., “Struggling to boost sales? Try this…”)
  • Social proof (“5000+ happy customers”)
  • A crystal-clear CTA (“Shop now” / “Book a demo”)

Landing page experience & conversion rates

You got the click—now what? If your landing page doesn’t convert visitors into customers, your ROAS will tank.

• Speed matters: A 1-second delay in load time can drop conversions by 7%.
• Mobile optimisation: If your page isn’t seamless on mobile, you’re losing half your audience.
• Clear CTA: Make it obvious what action you want users to take—buy, sign up, book a call, etc.

Bidding strategy & budget allocation

Are you spending smartly or just burning money? Your bidding strategy can make or break your ROAS.

• Manual vs. automated bidding:
  • Manual bidding gives control but requires constant monitoring.
  • Automated bidding (Smart Bidding) uses AI to optimize bids in real-time.
• Budget allocation:
  • High-performing campaigns should get more budget.
  • Test different ad formats (video, carousel, search) to see which one delivers the best ROAS.

How to improve your ROAS in 2025?

Now that we know what affects ROAS, let’s talk about how to boost it.

• Use high-quality videos & GIFs—short-form videos (like Reels or Shorts) outperform static images.
• Make your messaging clear: “What’s in it for the user?”
• Experiment with different CTAs (e.g., “Try for free” vs. “Get started today”).

• Use AI-powered audience insights to find hidden high-value segments.
• Build custom retargeting audiences to bring back website visitors who didn’t convert.
• Experiment with predictive audiences (AI can now identify users most likely to convert).

• Shift more budget to high-performing campaigns instead of spreading it thin.
• Use Smart Bidding (Google’s AI-driven bidding) to maximise conversions.
• Test different bidding strategies like Maximise Conversions vs. Target ROAS.

• Run A/B tests on different ad creatives, headlines, and CTA buttons.
• Monitor ad fatigue—if an ad stops performing, refresh it.
• Use real-time analytics (Google Ads, Meta Insights) to tweak underperforming campaigns.

How Talk N Lock can help you maximise ROAS?

At TalkNLock, we specialise in data-driven digital marketing strategies to help businesses get the most out of their advertising budget. Here’s how we ensure high-performing, cost-effective ad campaigns:

• We create highly targeted ad campaigns using AI-driven audience insights, ensuring your brand reaches the right people at the right time.
• Our retargeting and lookalike audience strategies help brands re-engage potential customers and discover new ones efficiently.

• We optimise landing pages to enhance user experience and improve conversion rates.
• We continuously test and refine ad formats, placements, and messaging to maximise engagement and lower costs.

• We implement conversion tracking and analytics to monitor performance and continuously refine your campaigns.
• We provide detailed performance reports and strategic insights to help businesses scale their advertising effectively.

Scale your e-commerce brand, generate leads, and build a strong online presence, TalkNLock ensures data-backed, result-oriented ad campaigns that drive real growth.

Let’s make every ad count.