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In a previous article we reviewed the importance of the Target ROAS (tROAS) bid strategy and in which cases it is more relevant for Shopping campaigns’ optimization. In this article we will explore some recommended practices that merchants can follow when applying Target ROAS in their Shopping campaigns.
Budget: Do not set a maximum limit on budget, as Target ROAS would not perform to its full potential when budgets are limited.
Number of conversions on each campaign: Choose or pick a campaign for tROAS Bid Strategies that has generated at least 15 conversions in the last 30 days. If a campaign does not meet this requirement and you have the same ROAS target for multiple campaigns, you can set up a portfolio bid strategy for these campaigns under ‘Tools > Shared library > Bid strategies’.
Conversion Data: Target ROAS can optimise towards Google Analytics or Google Ads Conversion Data or SA 360 Floodlight Tag Data.
Determine targets: Using the system’s generated ROAS target under 'campaign settings', is a recommended practice. If you would like to set your own target, try to align it closely to your last 28 days average ROAS for the campaign.
Structure of the campaigns: For optimal performance, you can group and consolidate products around ROAS goals.
Modifiers are disregarded: As tROAS optimises for all signals including location, mobile and audiences—and all audience types: in-market, affinity, similar audiences, remarketing, Customer Match— bid modifiers are not needed, hence will be not taken into account when set.
TROAS has access to historical data, so there is no need to switch to manual bidding as tROAS and seasonality adjustments are able to optimise bids in line with how demand evolves during seasonal events. Ensure budgets are not limited during this key period to capture the expected surge in demand. TROAS is also able to handle frequent and large ROAS changes, so you don’t have to make gradual ROAS changes prior to peak; that means you have the flexibility to make large changes to your targets and budgets to meet your business goals, while these adjustments result in immediate changes to bidding. Keep in mind that you need to factor in conversion delay when assessing performance.
• If you expect major changes to conversion rates (>30%), you can leverage seasonal adjustments for seasonal peaks that last 1 to 7 days.
• At the end of the sale, Smart Bidding can instantly go back to pre-sales behavior without the need for a ramp down. You just need to activate 'Seasonality Adjustments under Bid Strategies > Advanced Controls'.
+35% median increase in conversion value with Shopping campaigns under Target ROAS1
+19% median increase of Target ROAS with Shopping campaigns using Target ROAS1
Avoid using limited budgets for campaigns running on Target ROAS to help this bid strategy work at its full potential.
Smart Bidding is now able to handle frequent and large ROAS changes. There is no longer need to make gradual ROAS changes prior to peak.
Choose or pick a campaign for tROAS Bid Strategies that has generated at least 15 conversions in the last 30 days.
You can learn more about automated bidding for Shopping campaigns in the Google Ads Help Center.