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How would you describe the target ROAS bidding strategy?

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  • It determines that if a user’s search is likely to generate a conversion with high value, target ROAS will bid low on that search.
  • It 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.
  • It determines that if a user’s search is likely to generate a conversion with low value, target ROAS will bid high on that search.
  • It 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: It 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, a Google Ads Smart Bidding strategy, intelligently predicts conversion values and then adjusts bids to maximize return on ad spend (ROAS). It uses your reported conversion values to set maximum CPC bids, aiming to achieve an average ROAS equal to your target. Bids are further fine-tuned using real-time signals, such as device, browser, and location, optimizing performance in every ad auction.

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

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