Question: Julio wants to implement a Target ROAS strategy on an upcoming Display campaign. What two steps must he first take? Select 2 Correct Responses
- He must set up her conversion value, since Target ROAS needs to know what each conversion is worth to her.
- He needs to set up conversion tracking, in order to use machine learning for conversion value optimization.
- He must set up her Target CPA, since Target ROAS bids are automatically optimized at auction time.
- He must select a Manual CPC bid strategy and set her bid manually at the ad level.
Explanation
Target ROAS is a value-based Smart Bidding strategy, so it needs conversion tracking to record the actions the campaign is generating. It also needs conversion value so Google Ads can understand how much each action is worth and optimize toward return instead of conversion volume alone. Google’s documentation states that Target ROAS predicts future conversions and associated values using reported conversion values from conversion tracking. Without both inputs, the system cannot optimize bids toward a return on ad spend target. Google Help+2Google Help+2
Why the other options are incorrect
Target CPA is a different Smart Bidding strategy focused on cost per conversion, so it is not a setup requirement for Target ROAS. Google Help+1
Manual CPC does not use value-based automated bidding, so it is not required to implement Target ROAS. Google Help+1
Source for verification
https://support.google.com/google-ads/answer/6268637
https://support.google.com/google-ads/answer/1722022
The answer(s) to the question is highlighted in the BOLD text above. You can also find more questions and answers related to the exams on the "Google Ads Display Professional Certification" page.