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ROAS Bid Strategy: Everything You Need To Know

ROAS Bid Strategy: Everything You Need To Know

You can easily make your PPC campaigns successful by searching for the right keywords and implementing effective bidding strategies. But this certainly does not ensure the success of the PPC campaign as you need to examine if your bids are performing well. It’s only when you streamline business goals with the right bidding strategy, you can experience better conversions.

However, managing bids is the most challenging part of any bidding process. But the smart bidding strategies ROAS, recently introduced by Google, are very helpful for PPC managers.

ROAS: What exactly it is

ROAS aka “Return on Ad Spend”, is the value you get from conversions for every amount you spend on PPC ads. One should not confuse ROAS with ROI, which is – “Return on investment”. Where the ROI calculates the profit earned by a business, after considering the purchase cost, operational cost and ad cost, ROAS focuses on maximizing the conversion value rather than conversion figures.

Thus, ROAS is more about quality than quantity. To calculate ROAS, one must divide the total revenue by the amount spent on advertising and multiply the result by 100 to determine ROAS.


ROAS= (Revenue / Ad spend) x 100

Factors like marketing attribution and Customer Lifetime Value(CLV) influence ROAS value.

Marketing attribution:

As customers interact with a brand and product across various platforms, marketing attribution helps businesses in tracking their customer’s journey across those points, evaluating each step customers take towards making the final purchase.

It does not always happen that a customer makes an immediate purchase soon after they come across the PPC ad. They might come to your website after going through the ad and then leaves the website without purchasing the products. Again, after a few days when they come across the same ad on another social media platform, they come back to the website and finally purchase the product.

In this case, both PPC ads and social media platforms played a pivotal role in the buyer’s purchase decision. For an accurate ROAS calculation, businesses must have a single attribution model and then do the calculations.

Customer Lifetime Value( CLV)

Another element that might have an impact on ROAS is Customer Lifetime Value. Examining the average lifetime value of your previous and current customers is the best technique to determine a customer’s lifetime value.

When a customer converts initially, it is nearly impossible to predict if they shall remain your returning customers to how much they will spend to purchase products from your company in the long run. So, CLV is indeed one of the best ways to examine the average lifetime value of your existing and past customers.

Tips for how to make effective use of ROAS strategy

Now let’s look at how a leading provider of PPC services in India would advise using ROAS tactics.

Analyzing your margin:

To achieve your target ROAS object, first, you need to find industry-specific benchmark data. But that is certainly not easily achievable and as a result, you may not calculate the correct ROAS percentage.

You should evaluate your margins to get the ideal outcome. This number will be useful to you when you run your advertising campaigns. Simply look over the goods or services you intend to promote in those advertisements and decide on the margin for those goods. As a result, you can comprehend the ROAS you should aim for.

Organize the campaigns into smaller ad groupings:

You should always organize your ad campaigns into smaller groups to get better results. After all, smaller ad groups give you the best chance to precisely target your audiences. Additionally, it offers you a fantastic opportunity to concentrate on creating powerful advertisements. The number of conversions and their returns must be considered too. Moreover, to arrange the groups, you need to use the data from previous campaigns.

Proper estimation of budget:

Understanding where and how to spend your advertising budget may be done well by measuring ROAS. This helps you determine where to exert more effort to achieve your goals. You must first comprehend how much money you should spend and then decide on how you will reap the rewards.

Mobile-friendly approach:

Your ROAS may be suffering as a result of poor mobile optimization. Simply put, your website might not function properly on mobile devices and load slowly. Because they can’t access your website from their mobile devices, visitors won’t stay on it for very long. As a result, you must concentrate on making your website faster. Additionally, choosing a responsive design and mobile-friendly components will undoubtedly assist your website function properly on all smart devices.

Observe your rivals:

When strategizing, we take inspiration from what others are doing. As a result, you need to be aware of the strategies your rivals are doing to run their PPC ad campaigns. Using this strategy while creating your first PPC ad campaign is a good idea.

Therefore, use techniques to identify the appropriate keywords and borrow concepts from their ad copy. Therefore, you can either search for alternative ad options or take inspiration from their effort.


The success of a PPC ad campaign is impossible if we don’t discuss the importance of keywords. In fact, for target ROAS campaigns keyword plays a crucial role as it leads to conversions.

Additionally, conversions have an immediate impact on the sum we spend and, more significantly, the benefits we will receive. Therefore, the keyword that you choose should always be high-value targets. Moreover, try to find keywords that are relevant to your ads. If you select irrelevant keywords for your ads, you will undoubtedly encourage bad clicks.

Landing page experience:

The purpose of your ad campaigns is not just to attract clicks but also to convert successfully. There is no point in spending your money on those clicks which fail to bring you a return. Therefore, there must be something wrong with your landing page that must be fixed. One of the common mistakes that can damage your campaign is using similar landing pages across all of the campaigns. At any cost, you must avoid making such mistakes. After all, through each campaign, you are targeting different sets of audiences and also promoting various products.

Never try to use the landing pages of your past campaigns even if it was successful. Moreover, make a powerful and clear landing page, and don’t forget to include the offers. Those offers may help get more clicks on the ad. That’s why you must always examine your landing page and check if all the necessary information is there.


The ROAS bid strategy is undoubtedly a fantastic technique to increase revenue for your company. To fully benefit from this method, you must understand what it entails and how to apply it. Additionally, you may also think about getting assistance from top PPC service providers in India to help you determine the most effective ways to use the ROAS bid strategy and maximize ROAS. Another benefit of hiring a PPC Agency is that you can expect better outcomes immediately without spending extra time modifying the bids.