How Target ROAS works
Target ROAS uses Smart Bidding to predict the value of a conversion for each search and bids higher where it expects more value, aiming for the return you set. From June 2026 Google started labeling it simply "Target ROAS" instead of "Maximize conversion value with a Target ROAS"; the bidding works the same.
What it needs
- Conversion tracking with real purchase values. Conversions with a value of 0 don't count.
- For Search and Shopping campaigns, at least 15 conversions in the past 30 days.
- A single, consistent primary conversion goal, such as purchases.
Pick a target from your margins
Your break-even ROAS is 1 divided by your margin after product cost, shipping and fees. A 40% margin breaks even at 2.5x, so a target of 3x leaves some profit. A target far above what the campaign achieves will cut its traffic; one at or below break-even can buy sales that lose money.
Change it carefully
Google says a new target is used in the very next auction and doesn't trigger a learning status, but performance moves towards it over your conversion cycle. Change targets in small steps, one campaign at a time, and judge each change after a full conversion cycle.
A learning status only appears after a new bid strategy, campaigns, ad groups or keywords being added or removed, or a change of conversion goal. Google says it never lasts more than 7 days.
How UltraROAS.ai does this for you
UltraROAS.ai judges every product and campaign against its own break-even, using your cost of goods, and moves targets and budgets in small steps, one change per campaign at a time. It holds back on sales-based changes while conversion tracking looks unreliable.