Target ROAS is a Smart Bidding strategy where Google (or other platforms) sets bids to hit your target return on ad spend (e.g. 400% = 4×). Requires conversion value tracking and enough conversion volume. Setting tROAS above historical reality throttles delivery; below reality wastes margin.
Break-even ROAS = 1 ÷ profit margin — know yours before setting tROAS.
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Last verified Jun 5, 2026