Target ROAS is value-based bidding: instead of treating every conversion as equal, Google predicts how much each conversion is likely to be worth and bids accordingly. It's set as an optional target within the Maximize Conversion Value strategy. A 500% Target ROAS tells Google to aim for $5 in conversion value for every $1 spent.
Target ROAS requires accurate conversion values — order revenue for e-commerce, or assigned values for lead types and offline sales for service businesses. When values reflect real profit, tROAS steers budget toward the most valuable customers; when they're arbitrary, it optimizes toward the wrong goal. Like Target CPA, it should be adjusted gradually.
Example
An online retailer sets a 400% Target ROAS on its Shopping campaign, so Google bids more aggressively on high-value products and shoppers likely to place large orders.
How Sloss Digital uses it
We implement real conversion values — including offline sale values for lead-gen clients — so Target ROAS optimizes toward revenue and profit rather than raw conversion counts.