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Target ROAS Bidding

Target ROAS bidding tries to maximize conversion value while hitting a target ROAS. It requires stable value tracking and enough data volume.

Updated 2026-01-24

Definition

Target ROAS bidding tries to maximize conversion value while hitting a target ROAS. It requires stable value tracking and enough data volume.

Example

If your target ROAS is 4.0x, the platform aims to return $4 in value for each $1 spent.

How to use it

  • Use consistent conversion value rules (refunds and discounts matter).
  • Validate with marginal ROAS and incrementality as spend scales.
  • Start with a realistic target based on break-even and margin goals.

Common mistakes

  • Setting a target ROAS above what your funnel can sustain and starving delivery.
  • Changing target ROAS too often and resetting learning.

Why this matters

This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.

Practical checklist

  • Write a 1-line definition for "Target ROAS Bidding" that your team will use consistently.
  • Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
  • Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
  • Use a calculator that references this term (e.g., Target ROAS Calculator) to sanity-check assumptions.
  • Read the related guide (e.g., Marginal ROAS: how to scale ads with diminishing returns) for context and common pitfalls.

Where to use this on MetricKit

Calculators

Guides