How to use Target ROAS (tROAS) bidding in your Google Ads: A Step by Step Guide
Target ROAS (tROAS) is a smart bidding strategy in Google Ads that optimizes your bids to achieve a target return on ad spend (ROAS) across your campaigns. This strategy helps you maximize your conversion value while maintaining a desired ROAS. Here’s a step-by-step guide on how to use Target ROAS bidding in your Google Ads:
- Sign in to your Google Ads account: Log in to your account at https://ads.google.com/ and navigate to the campaign where you want to apply the Target ROAS bidding strategy.
- Access the campaign settings: From the left-hand menu, click on “Settings” and then select the specific campaign you want to edit.
- Choose the bidding strategy: Under the “Bidding” section, click on the drop-down menu next to “Bid strategy.” Choose “Change bid strategy” and then select “Target ROAS” from the list of options.
- Set your target ROAS: Enter your desired target ROAS value as a percentage, which represents your target return on ad spend. For example, if you want to achieve $5 in revenue for every $1 spent on ads, set your target ROAS to 500%. This value should be based on your historical ROAS data and your overall business goals.
- Adjust campaign-level settings (optional): You can customize the tROAS bidding settings at the campaign level by clicking on “Advanced options.” Here, you can set a minimum and maximum bid limit or exclude specific devices from the bidding strategy.
- Apply portfolio-level Target ROAS (optional): If you want to apply the Target ROAS bidding strategy to multiple campaigns, you can create a portfolio-level bid strategy. To do this, go to “Tools & Settings” in the top-right corner, click on “Bid Strategies” under “Shared Library,” and follow the same steps to create a new Target ROAS bidding strategy. Once created, you can apply it to multiple campaigns.
- Save your changes: Click “Save” to apply the Target ROAS bidding strategy to your selected campaign.
- Monitor and adjust the target ROAS: Regularly review the performance of your campaigns using the Target ROAS bidding strategy. Adjust the target ROAS based on the data to ensure optimal results. If your ROAS is lower than your target, consider increasing your target ROAS, and if you’re not getting enough conversion value, you may need to decrease it.
Keep in mind that it may take a few days or weeks for the Target ROAS bidding strategy to fully optimize, as the system needs time to learn and adapt to your campaign’s performance. Continuously monitor and refine your target ROAS to achieve the best results for your Google Ads campaigns.