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Lower tROAS for more conversions? Does that make any sense?
Posted by on June 27, 2023 at 5:04 amI’m currently running a Performance Max campaign for an eCom store. As of yesterday, it’s been running for 2 weeks. I’ve done the noob thing and kept changing things every couple of days instead of letting it run and waiting for the results.
I started the campaign with a Purchases goal, but wasn’t getting any results in 4 days so I switch to an ATC goal. Finally started seeing results so I switch from Max Clicks to tROAS, then switched back to a Purchase goal.
I’m getting conversions but it’s a little slow going. I’m using TripleWhale to track Purchases and ROAS is at 0.87x
I was a little worried about having done too many changes too quickly, so it made sense in my head to lower the target ROAS to get more conversions and over time slowly increase the tROAS as Google’s algo gets more data.
Does that make any sense to lower the tROAS or should I just go for a 200% target? Currently, it’s at 180%.
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1 Reply
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Your target essentially changes the number of people you can show to. There are only so many people who will give you 200% return on your ad spend, but there are a ton more who can give you 87%+ return on it.
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As you’re looking to gather more conversion data, it does make sense to lower your target ROAS goal.
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ROAS for my websites has always been 250%-400%.
I noticed that this year Google Ads has started to suggest some ridiculous ROAS numbers for tROAS Search Ads Campaigns like 90%-120%, even though the conversion rates and actual return on ad spend has not changed at all during this time.
I would try to find the sweet spot. Too high ROAS number and your campaign are not getting any impressions, and too low ROAS target will give you money wasting low quality clicks. Shame that these platforms are always changing something that has worked perfectly before.
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Stop making changes!
tROAS bidding is fine, and it’ll dictate how much you can spend if you’re running an open budget. But it’ll take at least 3-4 weeks before things stabalize.
A lower tROAS will tend to allow you to spend more, assuming you have the budget for it.
Alternatively, you might consider restricting spend with your budget and just run Max Conversion Value.
Importantly, until you can drive a least a couple of conversions per day P-Max will never really become stable.
Also, if you need to get conversions by using ATC you are already in big trouble.
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Let it run for 4-8 weeks without messing with it too much. Spend your time improving the landing page experience, user journey, product feed, product imagery and details instead while it stabilises.
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I spend about 100k in a mixture of shopping and pmax every week. We had been targeting a 2.75 tROAS. Last week, in 10% of the country I lowered tROAS to 2.50. I’ll do this for a couple of weeks and then drop it to 2.25, and keep going till I don’t like the math.
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too many changes.. google’s algo is too slow man.. follow policy of 1 change in 7 days
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