Definition
Target ROAS (tROAS) is a Smart Bidding setting that aims for an average return on ad spend, based on the conversion values your tracking reports.
In practice
It is an option within the Maximize conversion value strategy. A target of 400% means the strategy aims for four dollars of conversion value per dollar spent.
Because it bids on value, it depends on accurate values in every conversion: purchase revenue, or assigned values for leads of different quality.
Missing values, wrong currencies or duplicated purchases distort tROAS more than they distort CPA-based bidding.
Learn more: Smart bidding strategy.
Related terms
- Smart BiddingSmart Bidding is a group of Google Ads bid strategies that use machine learning to set bids in each auction, aiming for conversions or conversion value.
- Target CPA (tCPA)Target CPA (tCPA) is a Smart Bidding setting that tries to get as many conversions as possible while keeping the average cost per acquisition near the target you set.
- Data-driven attributionData-driven attribution is a model that splits credit for a conversion across the ads and channels a person interacted with, based on how much each touchpoint actually contributed.
How Markitech helps
Markitech connects your AI to Google Ads, GA4, Google Tag Manager, Meta and 12 more platforms, so it can check how Target ROAS (tROAS) is set up in your own accounts and tags and propose fixes. Every change is held until you approve it.