“Target ROAS doesn’t work!”
Heard that before? I sure have—and if you’ve said it yourself, you’re not alone.
But here’s the deal:
Target ROAS isn’t the problem.
How you use it is.
Let me tell you a quick story…
🧠 The “Set It and Forget It” Myth
One client came to me frustrated. They set Target ROAS to 800% and… nothing. Clicks vanished. Sales dried up. Panic ensued.
They assumed Google would just magically do its thing.
But here’s the truth:
Target ROAS is not a magic button.
It’s a scalpel, not a sledgehammer.
Let’s walk through how to use it the right way—to scale profit and cut the fat. ✂️💸
🔧 Step 1: Segment Before You Automate
Think of your products like racehorses. 🐎
Would you give them all the same food, same workout, same trainer?
No way.
So don’t lump all your products into one campaign either.
✅ Do this first:
- Break campaigns by product category
- Segment by margin
- Segment by performance history
Use custom labels like “high-margin,” “best-seller,” or “seasonal” to give Google the data it needs.
This setup isn’t optional—it’s your foundation. Lay it wrong, and everything else collapses.
📊 Step 2: Let Data Be Your Compass
Ever aim for 800% ROAS because it “sounds good”?
That’s like expecting to hit a home run in the majors without batting practice.
🏁 Instead:
- Look at your actual ROAS from the past 30–90 days
- Start close to historical numbers
- Increase in small bumps (10–15%) once you’re stable
That’s how you train the algorithm—not scare it off. 😉
🚫 Step 3: Don’t Mix Campaign Types
Here’s a classic rookie move: running Standard Shopping and Performance Max with the same products.
Guess what happens?
🎲 Bidding chaos.
Because PMax and Smart Shopping always override Standard. You lose control and clarity.
So remember:
- Pick one bid strategy per campaign
- Never overlap products across campaign types
Think of your campaigns like portfolios—you wouldn’t mix growth stocks and crypto in the same bucket, right?
🔍 Step 4: Watch These Metrics Like a Hawk
When you switch to Target ROAS, expect:
- Fewer clicks initially
- A different impression share
- Better conversions
That’s good.
But if conversions vanish and ROAS doesn’t climb?
You’ve gone too far, too fast.
🧪 Track these:
- Impression share lost (rank)
- Click share
- Conversion volume
📉 If conversions dive without a ROAS boost, ease up.
🛑 Step 5: Shape Traffic with Negatives (Even in PMax)
Automation isn’t a hall pass to be lazy.
Use negative keywords to keep out:
- Bargain hunters
- Job seekers
- Junk traffic
In Standard Shopping:
- Add keywords like “cheap,” “free,” or “DIY”
In Performance Max:
- Use brand exclusions
- Build strong audience signals
🔍 Stay the boss. Guide the machine.
🧾 Step 6: ROAS Isn’t Always Profit
💯 Let me repeat:
High ROAS ≠ High Profit
Would you rather have:
- 400% ROAS on a $50 margin?
- 1000% ROAS on a $3 margin?
Exactly.
✅ Always analyze:
- ROAS and margins
- Profit per click
- Profit by product
At True Online Presence, we build dashboards to make this easy. But even a simple spreadsheet can get you 80% of the way.
💡 The Big Lesson
Target ROAS is powerful—when used correctly.
Think of it like a sharp knife. It can prep a gourmet meal or slice your finger off.
🎯 Recap time:
- Segment first, then automate
- Use real data, not wishful numbers
- Don’t mix campaign types
- Monitor traffic behavior post-switch
- Guide automation with smart exclusions
- Always measure actual profit—not just ROAS
🧠 Use Target ROAS like a scalpel, and you’ll scale smarter—not harder.
💬 Got Questions? Let’s Answer a Few…
Q1: What does Target ROAS stand for?
A1: Return on Ad Spend. You tell Google your target (like 500%) and it adjusts bids to aim for that.
Q2: Should I use the same ROAS target for all products?
A2: Nope! Different products have different margins. Segment first.
Q3: Can I use Target ROAS with Amazon ads?
A3: Target ROAS is a Google Ads feature, not Amazon. But you can use similar strategies by analyzing ACoS and profit.
Q4: Why did my traffic die when I switched to ROAS bidding?
A4: Probably set your target too high too fast. Lower it and give the algo time to learn.
Q5: What’s the best time frame to check historical ROAS?
A5: I recommend 30–90 days for a solid sample.
Q6: Can Performance Max campaigns be segmented?
A6: Yes! Use custom labels and listing groups for segmentation—just like in Standard Shopping.
Q7: Is a 1000% ROAS always better than 400%?
A7: Nope. Depends on your margins. Profit is what matters, not pretty numbers.
📌 Final Thought:
Target ROAS is a tool—not a strategy.
Structure first. Strategy second. Profits third.
🔁 As I always say:
“Segment smart, bid sharp, profit more.”
Need Help with Google Ads? If you’re ready to take your online store’s performance to the next level with Google Shopping Ads but need a helping hand, consider reaching out. I’m Andy Splichal, author of Make Each Click Count and host of the Make Each Click Count podcast. Whether it’s about creating high-performing Shopping Ads or mastering your overall Google Ads strategy, I’m here to help. Let’s make those clicks count!
ABOUT THE AUTHOR
Andy Splichal is the founder and managing partner of True Online Presence, author of the Make Each Click Count book series, host of the Make Each Click Count podcast, founder of Make Each Click Count University and certified online marketing strategist with twenty plus years of experience helping companies increase their online presence and profitable revenues.
He was named to Best of Los Angeles Awards’ Most Fascinating 100 List in both 2020 and 2021. To find more information on Andy Splichal, visit trueonlinepresence.com or read The Full Story on his website or his blog, blog.trueonlinepresence.com.