Last Updated on 1 month by School4Seo Team

Target ROAS bidding analyzes and predicts the value of a potential conversion for every relevant search, then 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.

 The Correct Answer is: 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 offered by Google Ads, which predicts future conversions and optimizes bids to maximize return on ad spend (ROAS). This strategy uses your reported conversion values to set bids and ensures your conversion value per cost is equivalent to your target ROAS. Adjustments to bids are made in real-time, considering factors like device, location, and time of day, to maximize your conversion value during each ad auction.

Read more here: https://support.google.com/google-ads/answer/6268637