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PMax Lower ROAS
I’ve got a paradox of a question. Set my campaigns for 5-8 ROAS depending on the product category. Breakeven across customers is typically 5 ROAS.
I’ve got a lot of these campaigns with plenty of products but they aren’t hitting their budget, I’m sure it’s due to the bidding.
My question, if I lower my ROAS target, could it possibly raise my ROAS by seeing more conversions? Has anyone seen this effect before?
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1 Reply
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Unless people started buying higher AOV products after lowering your ROAS…. that is not likely to happen. You would likely see more conversions and revenue but not a high ROAS per say.
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Exactly right here. You only raise tROAS when you are hitting your budget and you see the potential to boost your conversion value/ return. Notice I said hitting the budget spend.
You lower when you’re not spending to budget and feel there is money being left on the table. It gives it room to enter the less expensive auctions. The tROAS goal and the budget are not aligned, lowering it realigns the two and enter more competitive auctions it can win.
Also make sure your enhanced conversions are turned on. I have an article on the tROAS as well, reach out and I will share.
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Decreasing ROAS target doesn’t guarantee improved performance, but the budget and volume of conversions are most likely to increase
If you want to improve ROAS, you can either optimize to push high AOV products (depends) or use retention marketing to breakeven on 1st order and then optimize for 2nd purchase profitable
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at point when you reach target roas and daily budget spent, you can raise roas.
but increase it gradually
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