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How much to increase target ROAS

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# 1
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Good Morning,

I would like to ask you about the percentage that is considered ok for me to increase the target ROAS of a campaign. I assume I cannot increase it, to say something, 100% because that would make the machine go nuts. Or 50%. So how much would you suggest I should increase it, and how long would you say the algorithm takes to adapt to the new target?

 

Thank you!

Arturo.

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Accepted by topic author Arturo P
April 2017

How much to increase target ROAS

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# 5
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I believe you should look at the average cost per conversion value and adjust to no more than 5-7% to get optimized results. Obviously you want to increase the return on adspend but increase it too much and your ads wont show up in lucrative research results or in a high ranking. Best practice is have all the products at the ID level so you can track which result queries are generating a lot of clicks but no conversions add it as a negative keyword and add search queries that generate a lot of conversions to product title or description. If you have a large product catalog in merchant center you'll need software to do that but if you have a small catalog it shouldn't be too difficult. Typically it takes about 1-2 weeks to see results in my opinion.  

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How much to increase target ROAS

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# 2
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Your target ROAS should be the target that meets your business target. It is not up to us to tell you what this is.

 

The algorithm can take up to a week to adapt depending on how many sales you have. Do note that using target ROAS is very hard and requires allot of fine tuning. For example it will only work on products that have at least 15  sales in the last 30 days.

 

This setup is not good for products that do not meet this requirement.

 

However from personal experience your ROAS target does not seem to be profitable, in my experience (depending on the clients requirements) it should be at least 500% anything less has ether a net loss or is not very profitable.

 

In the majority of cases I always do manual bidding as it target ROAS does not always work as expected.

 

My recommendation, do not use it. You get much better results with manual bidding. That's just my opinion and does not reflect anyone else.

 

Hope it helps.

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How much to increase target ROAS

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# 3
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Thank you for the reply, Emmanuel. 

I agree it is not something simple, although we have been using it on some campaigns with good results. My question was not so much about what should be my target ROAS, which as you say depends on the nature of my business. The question is rather about how much to increase it without being too big a change for the machine. It is my understanding that target CPA bids should be modified by no more than 5% to 7% of the current CPA. So I wanted to ask if something like this applies also to increasing the target ROAS for a shopping campaign.

 

I hope I could explain myself well.

 

Thanks!

How much to increase target ROAS

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# 4
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That's a very interesting questions, have not looked into this. Hopefully somebody has the experience and enough testing to have figured this out.

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Did you find any helpful responses or answers to your query? If yes, please click on ‘Accept As Solution’
Marked as Best Answer.
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Accepted by topic author Arturo P
April 2017

How much to increase target ROAS

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# 5
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I believe you should look at the average cost per conversion value and adjust to no more than 5-7% to get optimized results. Obviously you want to increase the return on adspend but increase it too much and your ads wont show up in lucrative research results or in a high ranking. Best practice is have all the products at the ID level so you can track which result queries are generating a lot of clicks but no conversions add it as a negative keyword and add search queries that generate a lot of conversions to product title or description. If you have a large product catalog in merchant center you'll need software to do that but if you have a small catalog it shouldn't be too difficult. Typically it takes about 1-2 weeks to see results in my opinion.