This automated bid strategy helps advertisers achieve a specific return on ad spend (ROAS). The system sets bids automatically to maximize conversion value while aiming for the advertiser’s defined ROAS target. For example, if an advertiser sets a target ROAS of 300%, the system will strive to generate $3 in revenue for every $1 spent on advertising. It utilizes historical conversion data and contextual signals to predict future conversion values and adjust bids accordingly.
A key advantage of this approach is its focus on profitability. By optimizing for return rather than just clicks or conversions, it helps businesses ensure their advertising investments generate a positive return. This strategy is particularly beneficial for businesses with established conversion tracking and sufficient conversion data. Over time, as the system gathers more data, its performance typically improves, leading to more efficient allocation of advertising budgets and increased profitability.
