Target ROAS
Target ROAS is a Smart Bidding strategy on Google (and Meta's equivalent on Advantage+) that sets bids to hit a specified return on ad spend.
What does Target ROAS actually mean?
Target ROAS (tROAS) is a Smart Bidding strategy that aims to maximize conversion value while keeping average ROAS at your specified target. Available on Google Search, Performance Max, Demand Gen, Display, and on Meta Advantage+ campaigns under different naming.
The target you set should reflect your unit economics. A 60%-margin DTC brand with one-shot products needs ~3× ROAS to break even on first purchase; subscription apps with high LTV can target 1.5×. Setting tROAS too aggressively (8×+) starves the campaign because the algorithm can't find enough impressions that meet the threshold.
In practice, tROAS works best when you have at least 50 conversions per month per campaign and stable historical conversion data. Below that volume, Maximize Conversion Value with no target performs better while the algorithm gathers signal.
Example
A Shopify brand sets Target ROAS = 3.5× on a Performance Max campaign. Google's ML auto-adjusts bids so the campaign averages 3.5× across the month, sometimes higher and sometimes lower per individual conversion.
When it matters
Target ROAS is the dominant bid strategy for ecom on Google PMax. Set it from your unit economics.
Related terms
Smart Bidding
Smart Bidding is Google's family of automated, ML-driven bid strategies: Target CPA, Target ROAS, Maximize Conversions, Maximize Conversion Value.
Target CPA
Target CPA is a Smart Bidding strategy that aims to maximize conversions while keeping average cost per acquisition at your specified target.
ROAS
ROAS measures revenue generated for every dollar of ad spend. A 4× ROAS means $4 in revenue for each $1 spent.
Performance Max
Performance Max is Google Ads' AI-driven campaign type that serves across Search, Display, YouTube, Discover and Gmail from a single asset group.
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