The concept of Marginal ROAS focuses on the additional value or revenue you get from additional spend.
The theory of Google is that Maximize conversion value bid strategies or ROAS, perform best when they can optimize for the highest-value conversions with as much flexibility as possible.
When you constrain or narrow where Smart Bidding can look for conversion opportunities, you can leave opportunities on the table.
Example of constraining:
– chose narrow match types
– leave channels out
The narrow targeting comes from looking at the average.
But Google says this is misleading.
This is because average values don’t reflect the cumulative value of maximizing marginal conversions or conversion value.
I would always say test what you can but this is an interesting topic. For more information read: https://lnkd.in/ezbD5P_k
