Target ROAS is an automated bidding strategy that tells the ad platform how much revenue you expect from every lira spent. The system enters the auctions where it predicts it can hit the target. When the target is unrealistic, the result is not better performance but spend grinding to a halt; that is why the target is set against current performance.
The right starting point is the actual ROAS of the last thirty days; set the target far above that and the system throttles itself and volume collapses. The target is raised in steps, with time allowed for learning after each change. The second critical point is thinking in profit rather than revenue: running products with different margins in the same campaign under the same target lets the low-margin ones eat the budget. Splitting products into margin bands and giving each band its own target produces better results than a single average target.
Break-even target ROAS = 1 ÷ Gross margin
With actual ROAS at 3.0x, setting the target to 6.0x drops spend to almost nothing; a 3.3x target holds volume while improving gradually.
The right starting point is the actual ROAS of the last thirty days; set the target far above that and the system throttles itself and volume collapses. The target is raised in steps, with time allowed for learning after each change. The second critical point is thinking in profit rather than revenue: running products …
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