Google Ads predicts future conversions and then sets maximum CPC bids while trying to achieve an average ROAS equal to your target. If, for example, we set a target ROAS of 200% and our investment is $1, then the goal will be to achieve $2.
To use Target ROAS as a bidding strategy, your previous campaigns must female database have achieved at least 20 conversions in the last month.
This methodology works the same for all Search, Display, and Shopping campaigns. For app campaigns, however, Google Ads will attempt to achieve the target ROAS based on the in-app events selected during the conversion window.
To determine whether revenue is higher than the amount invested in the campaign, the ROAS must be greater than 1.
Some conversions may vary, but this strategy will always aim to achieve the goal. The adjustments Google Ads makes to improve performance in the ad auction take into account device, location, browser, and other data such as date and time. It even evaluates whether a user is on a remarketing list.
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