Target ROAS
Target ROAS (return on ad spend) is a Smart Bidding strategy where you set a desired revenue-to-spend ratio and Google bids to hit it. If you target 400 percent, you are aiming for four dollars in conversion value per dollar spent. It requires conversion values, not just conversion counts, to function.
Why It Matters
Target ROAS ties bidding directly to revenue rather than raw conversions, making it ideal for ecommerce and any business with varying order values. It automatically bids more for high-value conversions and less for low-value ones.
Common Mistake
Setting an unrealistically high target that starves the campaign of volume. If the goal exceeds what the account can historically achieve, the system limits impressions and delivery collapses.