Target ROAS

Target ROAS is an automated bidding strategy in which the advertiser specifies the desired return per dollar of ad spend, and the system bids to hit that average. The algorithm raises bids on auctions with high expected conversion value and lowers them on auctions with low expected value. The strategy requires that conversion values, not just conversion counts, are tracked.

An online store sets its target ROAS to 500 percent, after which the campaign aims to deliver five dollars in revenue for every dollar spent.