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What is ROAS in AdWords? When should I use this feature?

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

What is ROAS in AdWords? When should I use this feature?

2 Expert replyverified_user
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Accepted by topic author hemanth
November 2016

What is ROAS in AdWords? When should I use this feature?

[ Edited ]
Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆

Hi Hemant,

 

To put more light on the topic the ROAS :

 

It' s a type of portfolio bid strategy, But your campaign should be active at least from 15 to 30 days.

 

Some Conversion value is associated with your conversions.

 

Based on these two metrics AdWords predicts future conversions and associated values using your reported conversion values.

 

Maths:

Lets say your average conversion value is $100 & You got 100 conversion in total your revenue is $10000

& Assume that you spent $5000 in your campaign for these conversion

 

So your ROAS would be: 

(10000/5000)% = 200%

 

For more details:

https://support.google.com/adwords/answer/6268637

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What is ROAS in AdWords? When should I use this feature?

Top Contributor
# 2
Top Contributor

Hi Hemanth,

 

Detailed information regarding ROAS is available in the AdWords help files:

About “target return on ad spend (ROAS)” bidding
https://support.google.com/adwords/answer/6268637

 

What is ROAS in AdWords? When should I use this feature?

Top Contributor
# 3
Top Contributor

In general ROAS is Return On Advertising Spend. ROAS helps you to see if the advertising budget is generating sufficient revenue.

 

In AdWords, Target ROAS is one of the automated bidding strategies.

 

Get more details here:

 

About “target return on ad spend (ROAS)” bidding

 

Measure “target ROAS” performance


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Archit, AdWords Top Contributor, Community Profile
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What is ROAS in AdWords? When should I use this feature?

Badged Google Partner
# 4
Badged Google Partner

Can you just put all these interview questions in one place? 

Tom

Marked as Best Answer.
Solution
Accepted by topic author hemanth
November 2016

What is ROAS in AdWords? When should I use this feature?

[ Edited ]
Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆

Hi Hemant,

 

To put more light on the topic the ROAS :

 

It' s a type of portfolio bid strategy, But your campaign should be active at least from 15 to 30 days.

 

Some Conversion value is associated with your conversions.

 

Based on these two metrics AdWords predicts future conversions and associated values using your reported conversion values.

 

Maths:

Lets say your average conversion value is $100 & You got 100 conversion in total your revenue is $10000

& Assume that you spent $5000 in your campaign for these conversion

 

So your ROAS would be: 

(10000/5000)% = 200%

 

For more details:

https://support.google.com/adwords/answer/6268637

What is ROAS in AdWords? When should I use this feature?

Explorer ✭ ☆ ☆
# 6
Explorer ✭ ☆ ☆

You can relate it to Return on Investment (ROI).