You run an online store and are using Google Ads to drive traffic to your website.
Your goal is to achieve a target ROAS (Return on Ad Spend) of 5x, meaning for every $1 you spend on ads, you aim to generate $5 in revenue.
Over the course of several weeks, you make some changes to your campaign’s target ROAS based on performance insights.
Example:
Week 1: You set your target ROAS to 5x.
Week 2: You increase the target ROAS to 6x after noticing strong performance.
Week 3: Traffic decreases, so you lower the target ROAS to 4.5x.
Week 4: You adjust the target ROAS back to 5x after seeing stable performance.
At the end of the month, the average target ROAS metric in the Google Ads dashboard would show the traffic-weighted average of these adjustments.
For example, if your campaign had the most traffic in Week 2 when the target ROAS was 6x, and lower traffic in the other weeks, the average target ROAS might be higher than 5x, say around 5.3x.
This value reflects the optimizations made by your bid strategy across different periods and the variations in traffic.
