One way to improve the profitability of your ads is by using maximize conversion value bidding strategy, and setting a target ROAS (tROAS).
Sounds simple enough, right?
Problem is, a lot of marketers are making a big mistake when it comes to tROAS…
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The Mistake
Being too ambitious with your tROAS can cause your ads to stop delivering.
If you reach for a target that’s far away from your current one, you’ll fall short.
For example, if you’re currently at a 200% ROAS, and you set your target to 750%, Google won’t be able to deliver your results.
So it will stop spending your ad dollars.
No ad dollars means no eyeballs and no conversions.
Do this instead
If you’re currently sitting at a 200% ROAS, set your tROAS to 240% to try to squeeze more profit out of your ads.
After a week, if you begin hitting your goals, continue increasing your target by 20%.
The takeaway?
Instead of shooting for the moon with your tROAS, try setting a slightly higher target than your current ROAS and gradually increase it over time.
That way you’ll give your tROAS some time to learn and adjust.
You can still aim high… just give yourself a ladder of sorts. You’ll go farther—and further, too.