Target ROAS bidding in Google Ads: values, targets and data needs

This guide is built from Google Ads Help: About Target ROAS bidding, Set up Target ROAS bidding for Shopping campaigns, About conversion values, Conversion values best practices and Changing conversion goals and actions used for Smart Bidding. How Target ROAS compares with the other bid strategies is in our budgets and bidding guide; this page covers what Target ROAS needs and how it behaves once it is on.

What Target ROAS does

Target ROAS is a Smart Bidding strategy that bids for conversion value instead of conversion count. Google says it predicts "the value of a potential conversion every time a user searches", then bids high on searches likely to bring a high-value conversion and low on searches that are not. You set the return you want, and Google Ads sets bids to maximize conversion value "while trying to achieve an average return on ad spend (ROAS) equal to your target."

ROAS is written as a percentage. Google's own example is a shoe shop that wants 5 dollars in sales for every 1 dollar of ad spend: 5 ÷ 1 × 100% gives a target ROAS of 500%. As with Target CPA, the target is an average. Some conversions will come in above it and some below.

Google's comparison table puts the choice simply. Target CPA treats all conversions equally and aims for a cost per conversion. Target ROAS is for when "conversions have different values for your business" and you want conversion value at a specific return. If you have no return target at all, Maximize conversion value tries to spend the full budget for the most value; Google notes that Maximize conversion value with a target ROAS set "will behave like a Target ROAS strategy."

A naming note: since June 2026 Google has been relabelling "Maximize conversion value with a Target ROAS" as plain "Target ROAS", and says the bidding behaviour "remains exactly the same". Target ROAS can be a standard strategy for one campaign or a portfolio across several. It is also the bid strategy used by Hotel campaigns, which Google says only work with Manual CPC, CPC% and Target ROAS.

Conversion values come first

Target ROAS only works if Google Ads knows what each conversion is worth. Google says that before you can apply it "you'll need to set values for the conversions you're tracking." There are two ways to do that, both explained in the conversion values article:

• A different value for each conversion. The tag sends the real amount, such as the order total. Google calls this "more representative of actual values of a transaction", and it suits shops and businesses whose services sell at different prices. Without the dynamic value in the code, the default value is used for every conversion.
• The same value for each conversion action. Easier to set up, but less exact. Google's best practices page says that if you go this way you should measure "at least 2 unique values across at least 2 different actions", and that neither should be zero.

Three other points from the Help pages decide what the strategy actually chases:

• Only included conversions count. The bid strategy optimizes for conversion actions included in the "Conversions" and "Conversion value" columns. Google adds that Smart Bidding learns across all actions in the Conversions column, even ones set up for different goals.
• The value can be revenue or profit. Google mentions "sales revenue or profit margins" as examples. Whatever you send is what Target ROAS will maximize.
• Values can be adjusted. Conversion value rules multiply or change values for more valuable customers, devices or locations; see our conversion value rules guide. The customer acquisition goal can add value for new customers, covered in our new customer acquisition guide.

Our own view: before anyone picks a target, check that the values in Google Ads match what the business actually earns. A tag that sends the wrong currency, includes tax on some orders but not others, or counts one order twice will steer the bidding just as firmly as correct data. Our conversion tracking guide covers the setup.

How much conversion data you need

Google's Target ROAS page lists a minimum for each campaign type. Conversions must have a value greater than 0 to count.

A few more conditions sit next to the table. For Search, if you only recently started reporting values or changed how they are reported, Google recommends waiting 1 to 2 conversion cycles until values come in at a similar rate before you switch. Google also recommends being comfortable with spending up to 2 times your average daily budget on a given day; over a month you are not charged more than the daily budget allows over 30.4 days. App campaigns need the Firebase SDK for the conversion events you bid on, and Google suggests running a Target CPA campaign first to find a baseline ROAS.

Google also says performance "will generally improve if you run fewer, larger campaigns that get more conversions." A shop that splits a small budget across many campaigns can end up with none that meets these numbers.

Choosing the target

Once you have created the strategy and chosen its campaigns, Google Ads recommends a target. Google says it is "calculated based on your actual ROAS over the last few weeks", leaving out the last few days so that conversions still on their way do not drag it down. You can use it or set your own.

To work out the historical figure yourself, Google's instructions are: add the "Conv. value/cost" column from the Conversions columns and multiply it by 100. The Shopping article suggests using the last 4 weeks. Exclude the most recent conversion delay period from the date range, or the latest days will look weaker than they will end up.

The trade-off is the opposite of Target CPA. Google warns that "setting a target that's too high may limit the amount of traffic your ads may get." A higher ROAS target asks for more value per dollar, so the strategy enters fewer auctions. Google's Smart Bidding measurement article goes further and says the ROAS target "should be at or below" your historical ROAS.

Target recommendations also show up in the Recommendations tab, the bid simulator and campaign setup. If you are unsure about a change, choose "Save as experiment" instead of Save to test the new setting against the original campaign; our Google Ads experiments guide explains how that works.

Our own starting point is the recommended target or the ROAS the campaign has actually achieved, not the ROAS the business would like to see. We then compare that number with the break-even ROAS, which depends on margins, and move the target in steps, one conversion cycle at a time. Google does not set a break-even figure for you; it is a business number.

Bid adjustments, bid limits and ad group targets

• Bid adjustments are not used. Target ROAS sets bids from real-time data, so existing adjustments are ignored. The one exception is a −100% device adjustment, which still stops ads on that device. Google says you do not need to remove the others; they just will not be used.
• Bid limits. Maximum and minimum CPC limits exist only for Search and Shopping portfolio strategies and are used in Search Network auctions only. Google does not recommend them because they can stop bids from reaching the level that meets the target. Even the minimum is not absolute: smart pricing can set a bid below it.
• Ad group targets. You can give ad groups their own targets with standard or portfolio strategies, but Google says this "isn't recommended as it can restrict Smart Bidding." It suggests a portfolio may perform better if you do not need separate targets.
• Where portfolios are not available. Google lists Performance Max, Hotel and Travel campaigns, and for Target ROAS also App campaigns for installs, Shopping and Demand Gen. Our Target CPA guide explains portfolio strategies in general.

Moving from Target CPA

Google's advice is to move to value-based bidding in steps. Ideally the campaign is already bidding to the right conversion goal with Target CPA. Then report values across all relevant campaigns "for 4 weeks or 1-2 conversion cycles (whichever is longer)" before you pick a ROAS target and switch. Google's measurement article gives the same advice with "3 conversion cycles", so we plan for the longer of the two.

The conversion goals article treats a move from Target CPA to Target ROAS as a change Smart Bidding has to learn from, usually 1 to 2 conversion cycles, and it describes separate workflows for switching while keeping the same goal or while changing it at account or campaign level. Google recommends the account-level switch because it is simpler. It also gives a rule of thumb for the choice of strategy: pick a target strategy (Target CPA or Target ROAS) if you want to monitor and adjust closely, expect large budget changes within the next 4 to 6 weeks, or need to hit a specific number. The Maximize strategies suit you if you are happy to give the bidder full control at a set budget.

The August 2026 change for budget-limited campaigns applies to Target ROAS as well: a campaign that is "Limited by budget" now delivers closer to the target you set instead of beating it. Our Target CPA guide walks through the options, and they are the same for ROAS with the direction reversed.

Measuring it: average and actual ROAS

Compare results with the average target ROAS, not just the number you typed in. Google defines it as "the traffic-weighted average ROAS that your bid strategy optimized for", so it reflects every target change in the date range. Add "Avg. target ROAS" from the Performance columns on the Campaigns page, or open the bid strategy report, where it sits next to "Actual ROAS". Google lists the column for Performance Max, Search and Shopping only; Hotel campaigns can bid on Target ROAS but do not get it.

The Shopping setup article adds practical points that apply well beyond Shopping:

• Consider giving the strategy 15 days before judging it, and review weekly rather than daily when traffic is low.
• Account for conversion delay: recent days look weaker because some conversions arrive days or weeks after the click.
• Look at conversion value first, then at conversion value divided by cost.
• Expect fewer clicks. Google says Target ROAS "might reduce your clicks" because it bids down on clicks that do not meet the target, and cost per click may go up and down for the same reason.

Changing the target

Google says that "adjusting bids and budgets is the best way to control performance." For Target ROAS the levers work like this:

• More volume and total value: lower the target gradually. The Shopping article compares this with raising a maximum CPC bid.
• More efficiency: raise the target, accepting less traffic.
• Busy seasons: when competitors raise bids, for example in a sale period, Google suggests considering a lower target so that the strategy bids up and keeps volume. Our seasonality adjustments guide covers short, planned spikes in conversion rate.

The bidder reacts to a new target immediately, but Google says it needs 1 to 2 conversion cycles to reach it. Google's target adjustment article also advises against several changes inside one conversion cycle. If you would like a second opinion on the values and tracking behind your bidding, our website team can look at the setup.

Frequently asked questions

How does Target ROAS bidding work in Google Ads?

You set the average return you want as a percentage. Google Ads predicts the value of a possible conversion in each auction and bids higher where a high-value conversion is likely and lower where it is not, aiming for total conversion value per cost equal to your target.

How do I calculate a target ROAS?

Divide conversion value by ad spend and multiply by 100. Five dollars of sales for each dollar spent is 500%. In Google Ads, add the "Conv. value/cost" column, multiply it by 100 and use a period that leaves out the latest conversion delay.

How many conversions do I need for Target ROAS?

For Search and Shopping, Google lists at least 15 conversions with a value above 0 in the past 30 days. Other campaign types have different minimums, from 30 in 30 days for video action campaigns to 50 a week for Hotel campaigns.

Why did my clicks drop after switching to Target ROAS?

Google says this is expected: the strategy lowers bids on clicks unlikely to meet the target and spends more where value is likely. A target set above your historical ROAS can also limit traffic, so check it against the conversion value per cost you actually achieved.

Is "Maximize conversion value with a Target ROAS" the same as Target ROAS?

Yes. Since June 2026 Google has been renaming it to "Target ROAS", and says the bidding behaviour is exactly the same.

For more on Google Ads, see our guides to Google Ads basics, Performance Max, Shopping campaigns and offline conversion import.