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Should you make the switch to tROAS?

An automated bidding strategy is an efficient way to get the right clicks at the perfect cost.

After all, Google knows who your ideal customer is, and knows what it takes to make them click.

Fair enough. But before you jump into automated bidding, let’s look a bit closer at Google’s target ROAS (tROAS).

What is tROAS? A bidding strategy where you set a specific goal for the return you want to get from your ad spend.

If you want to spend $1,000 and generate $5,000 in revenue, then you would set your tROAS to 500%.

You can set a tROAS when you choose “maximize conversion value.”

When to use a tROAS:

  • You’re an e-commerce store that generates revenue when you make a conversion.
  • You have products at varied price points.
  • You have a lot of conversion data, and Google knows who your target consumer is.
  • You know what your average ROAS is.

When not to use tROAS:

  • You’re running ads to generate leads or to rack up downloads of free products (digital downloads, guides etc.).
  • You have less than 50 conversions, and therefore don’t know what ROAS you usually stand at.

The takeaway? If your campaigns have a lot of data, and you want to hit certain revenue goals from your array of products, then it’s worth giving tROAS.

Alex Lim is a certified book reviewer and editor with over 10 years of experience in the publishing industry. He has reviewed hundreds of books for reputable magazines and websites, such as The New York Times, The Guardian, and Goodreads. Alex has a master’s degree in comparative literature from Harvard University and a PhD in literary criticism from Oxford University. He is also the author of several acclaimed books on literary theory and analysis, such as The Art of Reading and How to Write a Book Review. Alex lives in London, England with his wife and two children. You can contact him at [email protected] or follow him on Website | Twitter | Facebook

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