Target ROAS
Target ROAS is the conversion value you want back for each dollar spent. Smart Bidding uses it to aim for revenue efficiency, not conversion count.
In the platformBidding
Target ROAS
Target ROAS is the conversion value you want back for each dollar spent. Smart Bidding uses it to aim for revenue efficiency, not conversion count.
In Google Ads it is an optional target inside Maximize conversion value, entered as a percentage: 400% means $4 of conversion value for every $1 spent. Google bids more for searches likely to bring high-value orders and less for low-value ones. Like target CPA it is an average, and it only works if the conversion values you send are accurate, ideally revenue or margin rather than a fixed placeholder.
Where you'll see it
In Google Ads, open a campaign's Settings > Bidding, choose Maximize conversion value and tick "Set a target return on ad spend (optional)". The "Target ROAS" column in the Campaigns table shows the current target. On Meta it is the "ROAS goal" bid strategy, used with value optimization; TikTok offers value-based optimization with a minimum ROAS option.
Worked exampleA store with a 30% gross margin
- Break-even ROAS: 1 ÷ 0.30 ≈ 3.33, or 333%
- Current results: $40,000 conversion value on $10,000 spend = 400%
- tROAS 300% would allow bids below break-even
- tROAS 600% would likely cut volume sharply, far above the 400% achieved
A sensible starting target sits near actual results and above break-even, for example 400%.
Do
- Keep the target above break-even ROAS
- Change the target in small steps
Don't
- Send revenue including VAT or shipping as conversion value
- Raise the target in one big jump and blame the platform for the drop in volume