Understand Target ROAS. Express as percentage (400% = 4x return). Best for varied product values.
By The Ad Spend
Google Smart Bidding strategy that sets bids to maximize conversion value while achieving your target return on ad spend.
Formula
Algorithm targets your ROAS goal
Benchmark range
Requires significant conversion value data. Set slightly below historical ROAS. Expressed as percentage: 400% = $4 revenue per $1 spent.
Why it matters
Target ROAS optimizes for revenue, not volume. 500% target = $5 back per $1 spent. Works best for ecommerce with varied product values. Not suitable for lead gen without assigning values to different lead types.
