Question: Which first two steps are required to implement a Target ROAS strategy? Select 2 Correct Responses
- She must set up her Target CPA, since Target ROAS bids are automatically optimized at auction time.
- She must set up her conversion value, since Target ROAS needs to know what each conversion is worth to her.
- She needs to set up conversion tracking, in order to use machine learning for conversion value optimization.
- She 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 Google Ads must know both that a conversion happened and how much that conversion is worth. Conversion tracking provides the conversion data needed for automated bidding to optimize performance. Conversion value gives Google Ads the monetary amount attached to each conversion, which is required to calculate and optimize toward return on ad spend. Without those two elements, Target ROAS cannot bid toward conversion value correctly.
Why the other options are incorrect
Target CPA is a different Smart Bidding strategy focused on cost per conversion, so it is not a required setup step for Target ROAS.
Manual CPC does not use value-based automated bidding, so it is not part of the required setup for Target ROAS.
Source for verification
https://support.google.com/google-ads/answer/6268637?hl=en
https://support.google.com/google-ads/answer/6308?hl=en
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