What is target ROAS in Google Ads PPC Campaign

What is target ROAS in Google Ads PPC Campaign

March 15, 2022 By miriam

Google has a number of Smart Bidding methods that can help you get more conversions at a price you can afford. If you want to take your approach to the next level and focus entirely on generating a positive return on investment, Target ROAS (tROAS) bidding may be the way to go. This automatic bidding method isn’t a one-size-fits-all answer for making money on Google Ads for every advertiser, but it can help a lot of people.

What is tROAS and what does it mean?

“Target return on ad spend,” or “tROAS,” is a Google Smart Bidding strategy that stands for “target return on ad spend.” These are “auction-time bidding” automated bid tactics, which means Google will optimize for conversion or conversion value in every auction you enter. The amount of revenue your company earns for every dollar it spends on advertising is measured by return on ad spend. It’s return on investment, with the investment being your ad spend. In Google Ads, for example, you may track ROAS at the account, campaign, ad group, and ad level. Bidding strategies are specified at the portfolio, campaign, or ad group level for bidding.

When should you utilize a bidding approach that focuses on the target return on investment (ROI)?

You must set values to conversion actions in order to make tROAS work properly. These conversion values should show income generated as a result of users converting on your ads, as implied by the moniker “return on ad spend.” If your Google Ads conversions do not yield a direct return on investment, you should avoid using tROAS (i.e., ebook downloads or free tools). If your Google Ads conversions result in a direct return on investment, you should use tROAS (i.e, online sales).

Some tips for your tROAS

Choosing the correct bidding strategy for your ads is one of many key considerations marketers must make on a platform as complex as Google Ads. Smart Bidding, a feature of Google, has shown to be a useful tool for optimizing Search, Display, and Shopping campaigns. The amount of data Google receives to make the necessary improvements for you is the most critical aspect in efficient Smart Bidding, aside from clever campaign design and structure. When it comes to operating successful tROAS campaigns, getting the tracking setup correctly is half the battle. You’ll need to make the required changes at the ad group level, as well as data-driven judgments about the ROAS % you want to achieve. It’s crucial to remember that Google Ads is a marathon, not a sprint, so don’t give up if your efforts don’t seem to be paying off right away.