Google Allows Shopping and PMax Campaigns to Lower ROAS Targets by Up to 30%
· 2h ago · Originally reported by PPC Land
Google has introduced a feature that lets advertisers using Shopping and Performance Max (PMax) campaigns reduce their return on ad spend (ROAS) targets by as much as 30%. However, this adjustment is not available when using portfolio bid strategies.
Why it matters
This change gives advertisers more flexibility in managing campaign performance, potentially allowing for increased volume or reach at the expense of efficiency. Understanding these options helps advertisers optimize their strategies based on business goals.
Explain it like I’m new here
It's like letting a store manager decide to accept a bit less profit on each sale if it means selling more items overall.
Terms in this story
Campaign
A campaign is an organised set of ads with a shared goal, budget, audience and time period, run across one or more channels and measured against defined KPIs.
ROAS (return on ad spend)
ROAS (return on ad spend) is the revenue generated by advertising divided by the money spent on that advertising, usually shown as a ratio like 4:1 or 400%.
Advertiser
An advertiser is the company, organisation or person that pays to place ads in order to sell products, build a brand, recruit, or spread a message.
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