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Target ROAS works by analyzing and predicting the value of a conversion based on the users who search for your products.
If a user search is likely to generate a conversion, target ROAS will increase your keyword bids for that search.
But if your keyword doesn’t perform well, it can decrease your bids to ensure that it still gets you the return on ad spend you initially asked for.
Does that mean you can just set a target ROAS for your products even though you’ve only started advertising them?
You can. It’s just not going to work––at least based on our experience.
See, if you run products that don’t have enough conversion data, Google can’t guarantee that it’ll be able to sell enough of those products.
It’s even harder for Google to reach your target ROAS.
Asking Google to sell ten products when it hasn’t even sold one is, to be fair, quite impossible.
So how do you get from zero to ten sales? By adjusting your ROAS..
Author
Bryan is the marketing manager at Solutions 8, and has been on digital marketing since 2018. When he’s not working, you’ll find him working out at a local gym, reading personal development books, or playing music at home. He feels weird writing about himself in third person.