Target Return On Ad Spend Or Google's ROAS

Target Return On Ad Spend Google, ROAS Explained With Keywords.

Find On This Page

Share It On:


Target Return On Ad Spend (ROAS) bid strategy analyzes conversion probability every time a user searches for your advertised products or services. The ROAS automated optimisation engine will then adjust bids for these searches accordingly to maximize your return on investment

Target ROAS is a standard strategy for a single campaign or as a portfolio strategy.

How ROAS Works On Google Ads

Google Ads uses your historic conversion tracking performance data with its algorithm to predict and control conversion values with your ad spend.

In a way, Google Ads will give each search term against your business a weighted value from performance and known patterns in its algorithm. It takes this data and associates it with your available campaign budget. From here, it then uses this to increase the max cost per clicks (max. cpc) on search terms that are more likely going to result in a conversion. And vice versa, it will lower the bid adjustment automatically on search terms that are less likely to convert.

Target Return On Ad Spend Strategy TIP

You will most likely notice that some conversions can show a noticeable variance in ROAS values. However, it’s important to remember that Google Ads will aim to keep your overall conversion costs to your overall monthly budget you set

So, stay calm, and aim to plan for a higher budget that doesn’t limit the campaign. Try to plan for a 3 month budget and monitor your performance and changes every 2 to 4 weeks.

Google Ads Recommends A Target ROAS Value For You

After creating a new bid strategy, or selecting a recommendation when it becomes eligible in your account. Google Ads will recommend a Target ROAS amount for you. You still have the option to set your own, but remember Google is going off your Historical Data Performance. So, if you are going to change it, make sure you understand why. Otherwise, set the recommended ROAS, and review it over 2-4 weeks.

Your Manually Set Bid Adjustments And Target ROAS

Target ROAS has built-in automated bid adjustment that updates with your real-time data at auction time. Because of this, your manually set bid adjustments won’t work at the same time. This doesn’t mean they need to be removed, it just means they won’t be active.

Budget Planner
Budget Like A Boss!
Look Inside The Budget Planner

Other Related Google Ads Posts