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Understand how to use Return on Ad Spend (ROAS) bidding strategies. In this video, we’ll show you how to implement a ROAS bidding strategy.
I'm running my ads on maximum conversion value now. Google is suggesting to move to ROAS and increase my budget to double. Okay, is it a good idea to implement this suggestion? If I will do this, can I keep my ROAS higher than what Google is suggesting? Now my ROAS is 140%. Can I keep it to 200%? Okay, there are a couple of things you need to take into account. The first question you made or comment you made is Google is suggesting you move to ROAS and increase or double my budget. If you are positive on your ad spend or you are making a profit on your campaigns and you have the capacity to get more sales or leads, then yes, you absolutely increase the budget. That's how you will grow your business. If you are not, then you do not scale. You optimize it to the point where your ROAS is a profitable number, and then you start to scale. So you are saying that now my ROAS is 140% and I keep it to change it to 200%? You can try.
I would not change that in the same campaign. Copy that campaign, make another one, set the ROAS to, let's say 175% or 170%, then paste, copy, paste another campaign and run it at 200% ROAS. So you have three campaigns running at the same time. One would be at 140%, another one would be 170%, another one would be 200%. And you will see some very interesting data coming through and you will get that sweet spot of what is your perfect ROAS figure where you are getting that number, the ROAS number, as well as scaling the campaign. And Google is spending because quite often what happens is if you increase the ROAS, your impressions, clicks and everything goes down, and the ads or the campaigns don't spend the money, the daily budget. And this is why it is advisable that you need to find that sweet spot.
And if 140% is running fine and you can keep increasing the budget every day by 15% or so, and it keeps on spending, you keep on increasing it and you keep on scaling it, because 140%, if it is profitable, keep growing. Now, some of you may say, well, 140% is not very high. Well, you don't know. I don't know what the product is and what is the customer lifetime value. So you probably have worked out that every time you get a customer, they come back three or four times or five times in the next few months. So someone cannot make a judgment on this. Neither can I. So 140% is fine, then. You keep scaling.
