Target ROAS (tROAS)

Where Target CPA counts conversions, target ROAS weighs them by value. The platform predicts how much each potential click will be worth and bids in proportion, aiming for the return you set. Google expresses the target as a percentage (conversion value divided by spend, times 100) and requires a minimum history of valued conversions before the strategy is eligible. Meta offers a similar "ROAS goal".

This is the natural strategy for search arbitrage, because the whole business is a ratio of feed revenue to traffic cost. If the tracker sends each visit's revenue back as the conversion value, the platform learns to prefer the audiences, placements and hours that earn the most, not merely the cheapest clicks.

Two cautions. The values sent are usually estimated revenue, which may later shrink, so the target needs headroom for clawbacks and the provider's reporting gaps. And if revenue arrives late (see revenue reporting delay), the platform bids on stale data.

An example

For example, set tROAS to 130%. On $1,000 of spend the platform aims for $1,300 of reported revenue. If 8% is later deducted, final revenue is $1,196 and true ROI is 19.6%, not 30%.