Target ROAS (Target Return On Ad Spend)
01 Definition
Target ROAS (Target Return On Ad Spend) meaning: An automated strategy that sets bids to reach a target return on ad spend from conversion value.
Target ROAS is a Google Ads smart bidding strategy that adjusts bids to hit a chosen ratio of conversion value to ad cost. You set a target percentage, and the system bids more on conversions expected to return more value. It requires conversion value tracking to work.
Also called
Why it matters
How Target ROAS (Target Return On Ad Spend) fits the work
Target ROAS focuses bidding on revenue or value rather than raw conversions, which suits businesses where different sales are worth very different amounts.
In context
The store set a Target ROAS of 400 percent, aiming to earn 4 dollars in revenue for every 1 dollar spent on ads.
Practical note
The target is an average across the campaign, so returns vary by auction. A very high target can limit reach, while a low target can overspend for value.