How Target ROAS Works
Google predicts the conversion value of each auction and adjusts bids accordingly. A 400% target means the system aims for $4 in reported conversion value per $1 of ad spend over time.
A Simple Example
An ecommerce campaign with a 500% Target ROAS asks Google to pursue about $5 of reported revenue for each $1 spent, while allowing individual orders to vary.
Why Target ROAS Matters
Target ROAS lets campaigns distinguish between conversions with different values instead of treating every sale or lead equally.
Common Misreading
A higher target usually asks the system to be more selective and can reduce volume. Reported conversion value also needs to reflect real economics, not inflated or duplicated revenue.
Continue with the practical guide
The glossary gives you the definition. The guide covers implementation and decision-making in more depth.
Understand Target ROAS and other bid strategies →