Why Does My Spend Dip When I Use Target ROAS?

Рет қаралды 6,892

Күн бұрын

Watch this video to learn why target ROAS lowers your spend and controls your campaign activity and how you can optimize it.
Have you been using target ROAS and seen a dramatic drop in spend?
When you start to use target ROAS and increase your goal, Google will give you exactly what you need. But there's a catch: your cost and volume may drop!
In this video, John explains how the algorithm behind target ROAS works, how to optimize it to grow your business, and gives you some practical takeaways so you can start to use it right away.
Track and calculate your ROAS for FREE!
sol8.com/how-to-calculate-roas/
0:00 Intro
0:48 Diving right in: Target ROAS
5:58 What happens when you add ad spend
9:23 Useful tips to manage your ad spend
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Пікірлер: 41

@yassinelam8269 2 жыл бұрын

Watched this video multiple times, I've been looking for this information for years, no body ever explained it like this, this makes a lot of sense. Thank you so much.

@solutionseight 2 жыл бұрын

You are so welcome! Glad you found it useful

@felipecaceres9402 2 жыл бұрын

Love your team and working with you guys has been great so far. Really love all of this content too.

@solutionseight 2 жыл бұрын

HI Felipe, thanks for the kind words! Andrew says you are great to work with and we are looking forward to seeing your account grow!

@resultsdigitaltx 2 жыл бұрын

Great stuff, John!

@Decoy- 2 жыл бұрын

This was actually very needed, Thank you so much for always sharing valuable information!

@solutionseight 2 жыл бұрын

That's great to hear. Yes, the tug-of-war between budget & ROAS is something every eComm ad campaign deals with.

@studio623 2 жыл бұрын

I like how Kasim pops up and does the outro at the end. Keep rocking Solutions8!

@solutionseight 2 жыл бұрын

Ha! Maybe we'll have John record one too in the future ;)

@puneetholidaylinks4434 Жыл бұрын

Hi John , You explained very well .... My question is when we set biding TROAS,, meaning starting of the campaign or should wait one or two week then go for this bid

@this_is_fabri 2 жыл бұрын

Hi John, thanks for the video. One question: when you mention the scaling up phase, you mean turning off the target Roas so Google can build up new data and then we can check the Roas if the products and set the target Roas again? And can you explain to me again the point on Minute 8:15? Sorry I'm Italian and i have a bit of difficulty following that part of sum up the values. Thanks

@WilliamFrank-wm5fx 5 ай бұрын

your content is always the best.

@solutionseight 5 ай бұрын

Thanks for watching! 🫶

@DaveFogel 2 жыл бұрын

Good Stuff John.

@solutionseight 2 жыл бұрын

Thanks 👍

@homany1400 2 жыл бұрын

Thanks John, your content is always the best. So I have few questions and hope you can help. Thanks a lot! 1. Since I continuously add new products to my store every week, do you suggest to add those products to the existing smart shopping (using target ROAS) or create another smart shopping to test new product with no target ROAS? 2. You guys previously suggest not to touch the new smart shopping for 45days, so if I continuously add or remove the product every week, will it hurt both campaigns? 3. If later we move the products from the testing campaign (no tROAS) to original campaign (tROAS) see the result, can it bring all the sales data back to the original campaign provided that we have GTIN for each products?

@solutionseight 2 жыл бұрын

Hi Homan, let me see: 1. What I would suggest is adding the products to the existing smart shopping campaign and removing the target ROAS for a while at some point so that the algorithm has the freedom to do it's "continuing education" and learn about the new products, new market, etc. 2. If you add new products during that time period, it's completely fine. The only reason for the 45 days is to give enough time for conversion data to gather so that you can see patterns (for example, 3 conversions on the same product will allow you to start to see an average ROAS for that product). 3. The GTIN will help Google get a "head start" but you & your team won't be able to see the conversion data in the original campaign since those conversions took place in the testing campaign. It's also likely that the algorithm won't have everything it needs to optimize that product after being moved from one campaign to another...for example, the GTIN data might tell the algorithm that men age 30-40 tend to convert well, but it might not know that there were 3 recent conversions at 270% ROAS.

@homany1400 2 жыл бұрын

@@solutionseight Thanks John, I got to know your new smart shopping campaign structure because of the updated ID parameter across campaigns from your ad live video. So would you keep the same advice as putting all new products into one campaign or now you suggest we can split into top performer & testing campaign (80/20 budget) while still maintain the performance & scalability? And for the new smart shopping testing campaign, do we still set as maximize conversion value without tROAS goal or we can add the tROAS from the start of this campaign? thanks so much🙏

@ramanjitkaur6242 Жыл бұрын

is it possible to calculate ROAS after 3 months based on the current ROAS?

@TrollGator 2 жыл бұрын

Hey John! Thanks for the great content and detailed explanation. I have a question, i have been running a testing smart campaign for about 2 weeks at $100 budget without making any changes. My roas is about 276% without any tros set. Google now suggests to set a troas of 284% with increased budget of $150 budget or keep same budget. My question is if i am already getting a 280% roas then what is the point of setting a similar troas? Or is it because Google is suggesting me that because i ll have a higher spend of $150 with a similar roas? My goal is to incrementally increase my roas from 276% to whatever i can achieve without increasing the budget a whole lot. Do you have any tips on that? Thank you!

@solutionseight 2 жыл бұрын

Hi Neymat! I recommend running a new Smart Shopping campaign for 45 days at a minimum before even considering adding a tROAS. Google's suggestions aren't often in your best interest. ;)

@TrollGator 2 жыл бұрын

ok thank you!

@just-be-777 2 жыл бұрын

Can you tell me when i should start with smart shopping ads? I have a general shopping campaign with 450+ products and it took 1 week to see impressions and clicks. In the last days i got the first clicks and its starts getting better.

@solutionseight 2 жыл бұрын

Let the standard shopping run until you get a few conversions then switch over to Smart Shopping without a ROAS goal

@TabiZzFR Жыл бұрын

How are you guys doing to keep a decent ROAS (250%+) while spending more money and increasing my volume then?

@lukakooo 2 жыл бұрын

Can you do same for target CPA?

@solutionseight 2 жыл бұрын

tCPA and tROAS are both "restrictive" strategies and work in a similar ways so depending on your campaign, should work the same!

@33bigmoney 2 жыл бұрын

Hey, I use contact email clicks, call clicks, whatsapp clicks as conversions in my Adwords. These are conversions along with the ecommerce conversions. For an ecommerce brand. Do you think I should just put ecommerce as conversions? No doubt call and other lead to purchases. I think its a shame most people focus on analytics ecommerce direct conversions because so much happens in between the sales funnel. RIght?

@solutionseight 2 жыл бұрын

Hey! For e-commerce brands, we only count the actual purchase. The end goal of ecommerce is to know the $$$ that we've made. All other clicks will only inflate the actual numbers. They're good metrics to know so we'll track them, but they won't be included in our actual conversion report. Hope this helps!

@33bigmoney 2 жыл бұрын

@@solutionseight Interesting. I thought that the conversions like "add to card, phone calls on site, chat clicks" spark conversions and G will focus on all those people too now. Possibly the roas numbers arent so great because of that? But in reality it must bring assisted conversions

@softandy140 2 жыл бұрын

So for a novice where would you begin your ROAS climb. 200% or higher? My business has products from $20 to $5000?

@solutionseight 2 жыл бұрын

Hi Andy! If you have a fairly open or expansive budget, you could run all your products and leave it open/no starting target and see how it goes first. But 200% is a solid baseline target for almost all industries otherwise.

@softandy140 2 жыл бұрын

@@solutionseight when you say open or expansive, what kind of number are you talking about?

@scotthughes7440 11 ай бұрын

Will the spend slowly increase over time if you target an aggressively high roas too soon? Will it eventually target a wider audeince over time? Let's say I had a Perf Max Shopping camapign on MAx Conv for about a month, it gets about 200% ROAS during that time. I then switch to target roas but bump it to 500% ROAS. It starts to spend less but will it stay like that forever? Or will it gain more audience over time?

@solutionseight 11 ай бұрын

Thanks for your question! We will add it to our list and run it by our strategists. In the meantime, keep an eye on our KZfaq channel, and the answer may be featured in a future video.

@Matthew-zy3yb Жыл бұрын

Hi, I'm trying to set up my search campaign using Target ROAS. While doing it, I realized that the suggested tROAS is 17000%. I thought it was a bug, but when checking the conversions and their values I noticed that my website was sending the values to google without putting the commas in the right places. For example, a conversion worth €29.00 was marked in Google Ads as €2,900.00, so multiplied by 100. So, taking into account that my daily budget is €30, with those conv. Values the tROAS is obviously skyrocketing. My question is, could I leverage this error and use it to my advantage?

@Frankdtankspanks Жыл бұрын

well those conv values are fake if the real ones got artificially multiplied by 100x. The tROAS might tell you you're making a lot of conv value, but that doesn't reflect reality.

@danielapardo3588 2 жыл бұрын

Hi John, if I set a target ROAS, would my campaign get back to the learning phase?

@solutionseight 2 жыл бұрын

Hi Daniela, you are correct. Similar to making any adjustments to your bidding strategy, setting a target ROAS will send the campaign back to the learning phase.

@perfumepalaceindia Жыл бұрын

Shall I increase my target roas when my actual roas is way more that current target roas in past 28 days??

@manuelregidor6025 Жыл бұрын

Awesome video John. Does the same principle apply for tCPA? I work with a big marketplace in a Pmax feed only (thousands of products). We limit bids via tCPA, because we are continually adding new products and assets groups and we don't want to overspend. Should we remove tCPA when we add new products and then limit again after some days?