How Much Do You Need To Spend To Use Target ROAS?

By: Jyll Saskin Gales, Google Ads Coach

Target ROAS (Return on Ad Spend) is a powerful bidding strategy that helps you optimize your Google Ads campaigns for the best possible return on your investment. But how much budget do you need to make it work?

The answer is: it depends. The amount of budget you need will vary depending on your industry, competition, and target. However, there are a few guidelines to keep in mind.

Target ROAS needs sufficient conversion volume

You need a minimum number of conversions for Target ROAS to work effectively. Ideally, you should have at least two to three conversions per day, or 60 to 90 conversions per month.

Target ROAS is a Smart Bidding strategy, which means it's powered by AI. That means it needs data - lots of it - to learn and optimize your campaigns. If you don't have enough data, it will be difficult to get Target ROAS working properly.

Tips for Using Target ROAS with a Low Budget

If you have a low budget, here are a few tips to help you get started with Target ROAS:

• Use Micro-Conversions: Micro-conversions are smaller actions that users take before making a purchase, such as adding an item to their cart or signing up for a newsletter. Tracking micro-conversions can help you provide more data to Target ROAS and improve your campaign performance.
• Focus on High-Value Keywords: Instead of targeting a wide range of keywords, focus on a smaller set of high-value keywords that are more likely to convert.
• Use Negative Keywords: Use negative keywords to exclude irrelevant traffic from your ads. This will help you improve your click-through rate and conversion rate.
• Be Patient: Since you're working with a lower budget, it will take longer for your campaign to become effective. It's possible, but you need patience through the ebbs and flows if you'd like to eventually see consistent results.

Target ROAS is a powerful bidding strategy that can help you achieve your advertising goals. In fact, it's the most sophisticated bidding strategy in Google Ads. However, it's important to have a sufficient budget and enough data for it to work effectively.