Target ROAS
Also known as: tROAS, Target Return on Ad Spend, ROAS Target
Target ROAS (target return on ad spend) is a Google Ads Smart Bidding strategy that sets bids to get as much conversion value as possible at the return you choose. You enter the target as a percentage: $5 in conversion value for every $1 spent is a 500% target ROAS. It needs conversion values, not just conversion counts.
Key Takeaways
- ROAS = conversion value / ad spend x 100%, so a 500% target aims for $5 of value per $1 spent.
- Google's AI predicts the value of each auction and adjusts bids using signals like device, location, and time of day.
- You must track conversion values, and most campaign types need recent conversion history first.
- Setting the target too high can limit traffic; lowering it lets the strategy enter more auctions.
- Since June 2026, Google labels Maximize conversion value with a Target ROAS simply as Target ROAS.
How It Works
Google's own example: if your goal is $5 in sales for each $1 spent on ads, you set a target ROAS of 500%, because $5 / $1 x 100% = 500% (Google Ads Help). The strategy then predicts the conversion value of each auction and adjusts bids in real time with signals such as device, browser, location, and time of day. Some conversions come in above the target and some below, while Google tries to keep the overall return at your target.
There are prerequisites. You have to assign values to the conversions you track. Google lists minimums by campaign type: for Search and Shopping, at least 15 conversions in the past 30 days; for Display, at least 15 conversions with valid values in the past 30 days across campaigns, though new Display campaigns no longer need conversion history. It works as a standard strategy on one campaign or as a portfolio across several, except that portfolios are not available for Performance Max, Hotel, or Travel campaigns. Starting in June 2026 Google also simplified the label, so Maximize conversion value with a Target ROAS now appears as Target ROAS, with the same bidding behavior.
The main setting risk is ambition. Google warns that a target that is too high may limit traffic, and that lowering it lets the strategy enter more auctions. I start near what the account has actually achieved and move gradually, a process I cover in Google Ads bidding strategies. The CPA and ROAS calculator works out a break-even ROAS from your margin.
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.
Example
A store that sells kitchen knives has a 25 percent gross margin, so it breaks even at a 400 percent ROAS (1 / 0.25). Its Shopping campaign has averaged about 450 percent over the last month. The team sets Target ROAS at 450 percent rather than an aspirational 800 percent, keeps volume steady, and raises the target in small steps as results hold.
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.
Frequently Asked Questions
What does target ROAS mean?
Target ROAS means the return on ad spend you want Google Ads to aim for, entered as a percentage. It is also the name of the Smart Bidding strategy that bids to maximize conversion value while trying to hit that return. A 300% target means $3 of value per $1 spent.
How do you calculate target ROAS?
ROAS is conversion value divided by ad spend, times 100%. To set a target, decide what value you need per dollar spent. Google's example: $5 in sales per $1 of spend gives a 500% target ROAS. A break-even target is 1 divided by your profit margin.
What is a good target ROAS?
One that is profitable for your margins and close to what the account already achieves. Start from your break-even ROAS, compare it with recent actual ROAS, and set the target near the actual result. Targets far above history usually choke volume.
What are the requirements for Target ROAS in Google Ads?
You need conversion values on your tracked conversions. Google also lists conversion minimums by campaign type, such as at least 15 conversions in the past 30 days for Search and Shopping. Check the Google Ads Help page for your campaign type.
What is the difference between Target ROAS and Target CPA?
Target CPA aims for a set cost per conversion and treats every conversion as equal. Target ROAS aims for a return on spend and bids more for conversions likely to be worth more. Use Target ROAS when conversion values vary, such as ecommerce orders of different sizes.
Why is my Target ROAS campaign not spending?
Usually the target is set higher than the campaign can reach, so the strategy skips auctions it predicts will miss the target. Google notes a too-high target may limit traffic. Lower the target gradually toward recent actual ROAS and check that conversion values are reporting.