An e-commerce advertiser has a Target ROAS of 400%. If the campaign spends $10,000, what is the revenue Google’s algorithm is targeting?

Google Ads Fundamentals Hard

Google Ads Fundamentals — Hard

An e-commerce advertiser has a Target ROAS of 400%. If the campaign spends $10,000, what is the revenue Google’s algorithm is targeting?

Key points

  • Target ROAS is used to determine the revenue goal for a campaign
  • The formula to calculate revenue target is campaign spend divided by Target ROAS
  • Target ROAS of 400% means the goal is to generate 4 times the campaign spend
  • In this scenario, the revenue Google's algorithm is targeting is $40,000

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