What is target ROAS?
Target ROAS is an automated bid strategy where you set the return on ad spend you want, and the platform adjusts bids to get as much conversion value as possible at about that return. It's a goal, not a guarantee.
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How target ROAS works
The platform predicts how much value each auction might produce, then bids more on high-value opportunities and less on low-value ones. You set a target, for example 400%, and the system works to hit that on average.
It needs conversion values to do this, so each conversion must be tracked with its value.
Choosing a target
Look at your recent ROAS and your break-even point. Set a target you can reach, and raise it over time if volume holds.
A very high target can restrict spend because the system only bids where it expects strong returns. If delivery falls, try lowering the target.
When it fits
Target ROAS suits businesses where order values vary, such as online stores. It needs steady conversion data, so low-volume campaigns may struggle.
Common questions
How is target ROAS different from ROAS?
ROAS is the return you actually earned. Target ROAS is the return you ask the platform to aim for when setting bids.
What happens if my target ROAS is too high?
The platform may only bid on the safest opportunities, so spend and volume can fall. Lowering the target usually helps delivery recover.
How do I express a target ROAS?
Google Ads uses a percentage, so a 400% target means $4 in conversion value for each $1 spent. A 4x ROAS is the same thing.
Does target ROAS need conversion values?
Yes. Without values attached to conversions, the strategy has nothing to optimize toward.
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