Tips on measuring target ROAS performance

Our guided troubleshooter can help you identify, explain and address potential causes of unexpected fluctuations in your Performance Max campaign spending.
 

Smart Bidding includes target CPA, target ROAS, Maximise conversions and Maximise conversion value. In this article we'll evaluate the performance of Maximising conversion value with target ROAS.

Measure bidding performance

Here are a few tips to check how Maximise conversion values are performing for your campaign:

Analyse over time

  • Consider giving the bid strategy 1–2 weeks to run before you evaluate its performance. Allowing this time to pass gives the strategy time to adapt.
  • Make sure that you have enough data to evaluate the strategy’s performance. Consider reviewing your data over a long period with a good conversion volume.
  • Consider that a number of factors may affect your results over a period of time. Your results may be affected by external factors, such as increase or decrease in competition or changes in search interest.
  • Measure performance by running campaign experiments. For example, you can run an experimental campaign with target ROAS alongside your normal campaign and compare the results at the end of a specified time. Learn more about campaign drafts and experiments
  • Measure performance by running 'average target ROAS' in the bid strategy report and campaigns page, which accounts for any target changes that you made during that time period.

Wait for changes

  • Account for conversion delays. Some conversions take more time than others, in some cases up to days or even weeks. If you compare recent performance with past performance, your recent performance might not look as strong because of conversion delay. Learn how to find a report on your conversion delay
  • If you make significant changes to your campaign, give the bid strategy time to adjust. This could take a few days for smaller changes and up to two weeks for larger changes.

Measure performance of target ROAS or Maximise conversion value with target ROAS

  • Look at conversion value and then at conversion value divided by cost. This can help you verify that you’re getting enough sales and that you’re close to your target ROAS.
  • Focus on conversion value and ROAS. Target ROAS doesn't optimise around metrics like clicks, impressions or place on page, so you might notice those metrics go up or down after opting in. Focus on how much conversion value is being driven, and how well the strategy is meeting your target.

Optimise campaigns

Here are a few tips to optimise a campaign that's using Target ROAS:

Increase conversion value

  • If you want to increase conversion value, consider gradually reducing the target ROAS of your campaigns. This lets the bid strategy know that you're willing to spend more for each conversion, so the strategy will spend more to increase sales and conversion value. Learn how to make target adjustments with Search Smart Bidding
    • If you're familiar with maximum CPC bidding, you can think of reducing your target ROAS as similar to increasing your bid for Search and Shopping campaigns.

Review your strategy

  • Review your target ROAS bid strategy performance over longer time periods, such as a month or longer, that have at least 50 conversions. Performance will generally improve with larger campaigns and more bid strategies.
  • You might consider ways to make sure that you remain competitive as other advertisers increase their bids. For example, bids might increase during a sales period or a change in season. In these cases, consider reducing your target ROAS. The strategy will adjust your bids up, resulting in higher volume. You could also use seasonality adjustments to inform Smart Bidding of expected changes in conversion rates for future events like promotions or sales.

Set a target ROAS that’s right for you

  • Try setting a target ROAS based on the historical conversion value per cost data for the campaigns you'd like to apply this strategy to. This will help you maximise your conversion value, while reaching the same return on ad spend that your campaigns have been getting.
  • To find your historical conversion value per cost data, you'll need to select Modify columns from the 'Columns' drop-down and add the Conv. value/cost column from the list of 'Conversions' columns. Then multiply your conversion value per cost metric by 100 to get your target ROAS per cent. Ensure that the time frame of your ROAS evaluation excludes your most recent conversion delay period so that you get the most accurate view of campaign performance.
  • You can also use the target recommended to you through the Recommendations page, or recommendations when you’re adding a target while creating a strategy at the campaign or portfolio levels.

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