What are ROAS-based Campaigns?

The ROAS-based campaign strategy is when you group different products with similar ROAS in the same campaigns. Another way of going about this strategy is to put products with different ROAS in different campaigns.

How is this Beneficial?

This strategy allows you to set a ROAS target that is closer to the performance of the products, as well as setting different budgets. For example, you can set a higher target ROAS for your high-performing products. You can use your ROAS data to create separate standard and showcase ads, and manage bids, targets, and budgets on each.

You can also create smart shopping campaigns by grouping products of similar ROAS together, and assigning them a relevant target and budget. This is a great step to optimize smart shopping campaigns.

Our Do's and Don'ts

Do's

We recommend that the bucket ranges, when modified, be consecutive. For example, buckets could be 100 to 300, 300 to 452, 452 to 500, but, not 100 to 300, 302 to 452.

We also recommend you automate the process of refreshing campaign groups, as with this you'll make sure all your products move around successfully.

Dont's

We don't recommend tweaking the campaign structure manually, as it may disrupt the campaign group settings. This means not:

  1. Adding/removing products manually.

  2. Changing the campaign settings manually (such as adding campaign inventory filters in Google Ads).

  3. Changing the split hierarchy.

  4. Moving the campaigns out of the campaign group.

  5. Adding new campaigns in the campaign group.

Similarly, we ask you don't subdivide or bid on the Everything Else product group, as this may cause an inconsistency in the campaign group.

Longer date ranges than 14 or 30 days are not supported, as it is recommended to look at the most recent conversions when moving products based on the ROAS points. For setting bids or a target on the campaigns, it is recommended to look at the recent performance data.

Note: Restructuring is not allowed on these campaigns using the Restructure tool. Exclusion/Inclusion is not supported.

How does it Work?

Select ROAS/Price as the first attribute while specifying the split hierarchy.

Customize the buckets for ROAS range or Price range. The buckets are shown based on the performance analysis of the products in the last X days. By default, we are looking at the Last 14 days.

The threshold for conversions a product has had before it moved from the Learning bucket to another bucket can be customized. By default, it is 5 Conv in the Last 14 days.

We will create a GRIP (last level of split at Item Id) structure, even if you don't include Item Id level in your split, as it is required to move the products successfully from one campaign to another.

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