Google today announced that will launch tROAS bidding on Google Ads. The new bidding will be available next month, for Google App campaigns on iOS and Android, globally.
Target return on ad spend (tROAS) bidding enables advertisers to automatically pay more for users likely to spend more, and pay less for users likely to spend less.
How does ROAS bidding work?
Advertisers need to set a target return on ad spend value as a percentage of value per spend. tROAS enables advertisers to choose how much dollar value they want back for every dollar they spend.
Google says the budget will be used to get as much value as possible at the set amount. So, if a daily budget is $300, and the target ROAS is 20%, the advertiser is aiming for about $60 of value from the ads.