Google Ads Target CPA and Target ROAS Bundled With Maximize Conversions and Maximize Conversion Value

Google Ads announced Target CPA and Target ROAS will be bundled with the Maximize conversions and Maximize conversion value bid strategies. So Maximize conversions will have an optional target CPA and Maximize conversion value will have an optional target ROAS. But this is not always easier for advertisers, as Google suggested.

Google said this change is being made to "make it easier for you." Google is changing how bid strategies are organized for Search campaigns to help you choose the right one, the company said.

Here is a graph of what is changing:

Google said "you'll still be able to use Target CPA and Target ROAS as bid strategies, and there will be no impact to their behavior due to this update. Using the optional target CPA and target ROAS fields will optimize your performance the same way Target CPA and Target ROAS bid strategies do today. You’ll start seeing these optional fields in the next few months as you create new bid strategies."

But as Greg Finn noted on Twitter "FWIW, this doesn't seem 'easier' than just seeing it at the Bid Strategy type level..." He said so in order to see at a quick glance what the *real* bidding methods are, we'll need to view the following columns:

• Bid Strategy type
• Target CPA
• Target ROAS

Google said it will start the optional target fields for new Maximize conversions or Maximize conversion value bid strategies in the next few months. With an optional target, Smart Bidding will optimize to these goals the same way it would for Target CPA and Target ROAS. Maximize conversions with a set target CPA will behave like Target CPA strategy does today, and similarly, Maximize conversion value with a set target ROAS will behave like a Target ROAS strategy does today.

starting later this year you’ll only see the updated options for Maximize conversions with an optional target CPA and Maximize conversion value with an optional target ROAS. Starting later this year, as part of this change, Google will also switch your existing Target CPA and Target ROAS strategies to these new fields automatically. Google promises to notify you in advance before these changes start rolling out.

This is how it works, when you select Maximize conversions or Maximize conversion value bid strategies, you can choose to add an optional target CPA and target ROAS instead of creating standalone strategies for Search campaigns.

• Maximize conversions using a target CPA:
  • Google Ads automatically sets bids to help get as many conversions as possible at the target cost-per-action (CPA) you set.
  • Some conversions may cost more or less than your target.
  • This strategy will work as the Target CPA bid strategy does today.

• Maximize conversion value using a target ROAS:
  • Google Ads automatically sets bids to help get as much conversion value as possible to achieve an average return on ad spend (ROAS) at the target you set.
  • Some conversions may have a higher or lower return than your target.
  • Within the Maximize conversion value strategy, this target ROAS is the average conversion value you’d like to get for each dollar you spend on ads.
  • Enter a value as a percentage using this formula: Conversion value ÷ ad spend x 100% = target ROAS percentage. For example, if your goal is to get an average of $5 in sales for each $1 you spend on ads, your target ROAS would be 500%.
  • This strategy will work as the Target ROAS bid strategy does today.

Here is the concern:

Thanks Ginny! Question, how will these display in the web interface in the "Bid Strategy Type" column?

— Greg Finn (@gregfinn) April 20, 2021

Ok, so in order to see at a quick glance what the *real* bidding methods are, we'll need to view the following columns:

- Bid Strategy type
- Target CPA
- Target ROAS

FWIW, this doesn't seem 'easier' than just seeing it at the Bid Strategy type level...#ppcchat

— Greg Finn (@gregfinn) April 20, 2021

Think I am speaking for most advertisers when saying that this change feels like a solution in need of a problem. Oh well, thanks for the follow up Ginny!

— Greg Finn (@gregfinn) April 20, 2021

Understood. From advertiser perspective, having the ability to quickly diagnose Bidding Types at campaign level is helpful.

Would be nice to not require the extra columns from a usability standpoint FWIW.

Thanks!

— Greg Finn (@gregfinn) April 20, 2021

Here are more concerns:

I think it's a great idea.

As a professional, I see no difference in choosing "Target ROAS" or "Max. Value at X% ROAS".

Purpose is the same.

As PPC'ers we should stop blowing things out of proportion.

— Andrew Lolk (@AndrewLolk) April 20, 2021

And if that's the case, then is it fair to say this update is essentially a UI change?

— Ashwin (@TheCopyTrail) April 20, 2021

Hey Kirk, Yes, ad group level ROAS targets for Maximize conversion value will be supported when a target ROAS is set.

— Ginny Marvin (@GinnyMarvin) April 20, 2021

Forum discussion at Twitter.