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Target ROAS Bid Strategy : Is It Really Working?

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# 1
Visitor ✭ ✭ ✭

I am managing Google Adwords campaigns where I have created Google Shopping and Text Ads campaigns. I have implemented manual bidding since last 5 months. And, I was getting good clicks, impressions and conversions.


Then, I come to know about Target ROAS bid strategy and applied for Google shopping campaign since last 1 week. And, all of sudden - I can see big drop in impressions and clicks. Even, I can see negative impact on conversions.


I am expecting to achieve 300% ROAS with my Google Adwords campaigns. It was 250% ROAS when I was managing bidding with manual way. You can see following screenshot to get more ideas on it.


Campaign Management – Google AdWords 2016-03-12 13-50-21.png

Can anyone guide me? Which is best bid strategy? Manual or Target ROAS

1 Expert replyverified_user

Re: Target ROAS Bid Strategy : Is It Really Working?

Top Contributor
# 2
Top Contributor

Hi @anandhmistry,


When switching to a different bidding methodology, one must consider its effect on before and after average CPC. In your previous bidding strategy you had the ROAS of 300%. And now when switched to this new method you simply decreased it. It now gives 17.5% lesser freedom to the system for optimization. Assuming everything else remains constant, this decrease may have a direct affect on performance. And that's what it seems to be in your case. 


According to me, when you switch bidding strategy, make sure you are not decreasing the average CPC in the very beginning. Keep it the same or a bit higher and once you start seeing results, you can gradually decrease it to bring to a minimum possible extent. 



Talking about best method to bid, there can't be a precise answer. Every single method is known to work and it works, but definitely not for every kind of advertising goals. 


Does it help?


Ratan Jha
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