Question: Beatriz is setting up a Google Search campaign using a conversion-based Smart bidding strategy. To meet her value-based objectives, she's decided to go with Target ROAS. What best practice can she follow to set her initial ROAS target?
- She should provide a Target ROAS that's exactly 10x the highest keyword cost in the campaign.
- She should use an average of what she estimates all of her competitors are paying for conversions.
- She should check the campaign's historical conversion value per cost metric in Google Ads and use that as a guide.
- She should provide the system with the conversion cost that she's hoping to pay in her campaign.
Explanation
The best starting point is the campaign’s historical conversion value / cost, because Target ROAS should be based on the return the campaign has already been producing. Google Ads recommends using historical conversion value per cost data from the relevant campaign or ad groups as the guide for the initial target. As a general rule, Google Ads points to the last four weeks of data when setting that starting benchmark. A target set far above historical performance can reduce traffic volume, so the initial Target ROAS should stay grounded in actual account data. Google Help+1
Why the other options are incorrect
10x keyword cost Keyword cost is not the recommended basis for setting an initial Target ROAS. Google Help+1
Competitor average Google Ads does not recommend using estimated competitor conversion costs to set an initial Target ROAS. Google Help+1
Conversion cost A desired conversion cost aligns with Target CPA, not Target ROAS. Google Help+1
Source for verification
https://support.google.com/google-ads/answer/6309035?hl=en
https://support.google.com/google-ads/answer/6268637?hl=en
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.