A marketing strategist is interested in target ROAS bidding. How might their agency describe this bidding strategy?

Target ROAS bidding evaluates and predicts the potential value of each conversion for relevant searches and automatically adjusts bids to maximize return.

• This bidding strategy uses historical and uploaded data to set the value of a conversion every time a user searches for products or services that are being advertised. Then it automatically adjusts bids for these ads to maximize return.
• This bidding strategy determines that if a user’s search is likely to generate a conversion with low value, target ROAS will bid high on that search.
• This bidding strategy determines that if a user’s search is likely to generate a conversion with high value, target ROAS will bid low on that search.
• This bidding strategy analyzes and intelligently predicts the value of a potential conversion every time a user searches for products or services that are being advertised. Then it automatically adjusts bids for these searches to maximize return.

Explanation:

Target ROAS is a Smart Bidding strategy in Google Ads that uses predicted conversion values to optimize bids with the goal of maximizing return on ad spend. It relies on reported conversion values to automatically adjust bids so that the conversion value relative to cost aligns with the advertiser’s target ROAS. These bid adjustments are made in real time during each auction, taking into account signals such as device, location, and time of day to drive the highest possible conversion value.