Great pictures from Producthero.com that shows that to set the ideal ROAS (Return on Ad Spend) target for your Google Ads, it’s essential to balance between profitability and revenue(or even better use POAS)
Start by determining your breakeven point based on product margins—this sets the minimum ROAS to avoid losses.
Then, use Google’s Bid Simulator to explore target ROAS values for maximizing profit.
To further improve ROAS, focus your budget on high-performing products and optimize your website’s conversion rate.
