Target ROAS
Target ROAS (tROAS) is a bidding strategy available on Google Ads, Meta Advantage+ Shopping Campaigns, and TikTok that lets you set a target ROAS number (e.g., 3.5x) and let the algorithm adjust bids automatically to hit it. The algorithm will reduce spend on lower-converting contexts and lean into higher-converting ones, aiming to hold the ROAS you set.
When it works: you already have substantial conversion data (50+ conversions in the last 30 days per campaign is Google's rule of thumb), your target is realistic given historical blended ROAS, and you're willing to let spend fluctuate day-to-day as the algorithm optimizes.
When it fails: new accounts with thin conversion data, aggressive targets well above current performance, or campaigns where delivery is actively being restricted by other constraints.