Question: A marketer is setting up a Google Search campaign using a conversion-based Smart Bidding strategy. To meet their value-based objectives, they've chosen to use Target ROAS. What method can they follow to select their initial ROAS target?
- They can investigate the campaign's historical conversion value per cost metric in Google Ads, and then they can use that as a guide.
- They can offer the system the conversion cost that they wish to pay in their campaign.
- They can provide a Target ROAS that's set to 10x the highest keyword cost in their campaign.
- They can use an average of what they estimate their competition is paying for conversions.
Explanation
For an initial Target ROAS, Google Ads recommends using the campaign’s historical conversion value / cost as the starting reference. That metric shows the return the campaign has already been producing relative to spend, so it gives a realistic baseline for a value-based bidding target. Google Ads guidance also notes that the initial target should generally be at or below historical performance, because an overly high target can limit traffic volume. This approach aligns the bidding strategy with actual account data instead of assumptions about cost or competitors. Google Help+1
Why the other options are incorrect
B) This describes a cost-per-action goal, which aligns with Target CPA, not Target ROAS. Google Help+1
C) Google Ads does not recommend setting an initial Target ROAS from the highest keyword cost or any fixed keyword-cost multiple. Google Help+1
D) Competitor estimates are not the recommended basis for setting an initial Target ROAS in Google Ads. Google Help+1
Source for verification
About Target ROAS bidding Google Help
Set up Target ROAS bidding for Shopping campaigns Google Help
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 Search Professional Certification" page.