Target ROAS Bid Strategy [Full Tutorial]

Watch the step-by-step walkthrough below, then follow along with the guide to set up Target ROAS as a portfolio bid strategy in Google Ads and balance efficiency with sales volume.

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Step by Step

Target ROAS Bid Strategy [Full Tutorial]

Follow these steps alongside the video to set up Target ROAS in your Google Ads account.

1

Login to your Google Ads account

2

Navigate to Tools (left-hand-side menu)

3

Open the Budgets and bidding drop-down menu and select Bid strategies

4

Click the "+" symbol and select Target ROAS

5

Give your Bid Strategy a name

6

Select the campaigns you would like to assign this bid strategy to (optional)

7

Input the Target ROAS

8

Click on Advanced options and input a Maximum bid limit (optional)

  • When to use Target ROAS bid strategy:
    • You are looking to improve EFFICIENCY
    • You would like to balance between sales volume and efficiency
  • When you should NOT use Target ROAS bid strategy:
    • You are NOT tracking conversions or revenue
    • You are looking to increase the VOLUME of sales

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FAQ

Frequently Asked Questions

Common questions about the Target ROAS bid strategy in Google Ads.

What is Target ROAS in Google Ads?

Target ROAS (Return on Ad Spend) is a Smart Bidding strategy that automatically sets bids to help you achieve a specific return on ad spend across your campaigns. Google's AI adjusts bids at auction time to maximise conversion value while hitting your ROAS target — for example, a target of 400% means you want $4 in revenue for every $1 spent.

How much conversion data do I need before using Target ROAS?

Google recommends having at least 15–50 conversions in the past 30 days before switching to Target ROAS, and the conversions must have associated revenue values. Without sufficient data, the algorithm has too little signal to optimise effectively and performance can become erratic.

What is the difference between Target ROAS and Maximise Conversion Value?

Maximise Conversion Value spends your full budget to get the highest total revenue with no ROAS floor — it prioritises volume. Target ROAS adds a constraint by telling Google to hit a specific return target, which means it may spend less of your budget if the opportunities available don't meet your ROAS threshold. Use Target ROAS when efficiency matters more than pure volume.

What happens if I set my Target ROAS too high?

If your target is set higher than your account can realistically achieve, Google will reduce bidding to only enter the most profitable auctions — leading to a significant drop in impressions, clicks, and spend. Your actual ROAS may improve but volume will fall. Start conservatively close to your recent average ROAS and gradually increase over time.

Should I set a maximum CPC bid limit with Target ROAS?

Setting a maximum CPC limit under Advanced options is optional and generally not recommended for most accounts. Capping bids can prevent Google's algorithm from winning auctions for high-value conversions, which undermines the strategy. Only use a max CPC limit if you have a strict business reason and understand it may constrain performance.

Can I use Target ROAS across multiple campaigns as a portfolio strategy?

Yes. Setting Target ROAS via Tools > Bid strategies creates a portfolio bid strategy that can be shared across multiple campaigns. This lets Google pool conversion data from all assigned campaigns to hit your ROAS target more efficiently, which is particularly useful when individual campaigns have lower conversion volumes.

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