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Short answer

Divide conversion value by ad spend, then multiply by 100 for a percentage. Google's own example: $5 in sales from $1 of ad spend is a 500% ROAS. The figure is only as good as the conversion values you track.

What ROAS depends on

  • Each conversion action needs a value, either fixed or passed dynamically, or there is no return to measure.
  • Target ROAS bidding uses Google’s AI to predict the value of each conversion and set bids. It aims for your average ROAS goal, so single conversions can land above or below it.
  • A higher target can limit traffic. A lower target usually brings more conversion volume.
  • Search and Shopping campaigns need at least 15 conversions in 30 days for Target ROAS.

ROAS in App campaigns

  • Target ROAS for apps needs the Google Analytics for Firebase SDK and in-app events that pass a dynamic revenue value. Google Play codeless conversions also work on Android.
  • Apps that earn most of their revenue from in-app ads can use tROAS for ad revenue, which imports the ad_impression event from Google Analytics.

In practice

For apps and games, ROAS on day 0 rarely tells the full story. Compare ROAS by install cohort at fixed points, such as day 7 and day 30, and check Google’s numbers against your mobile measurement partner. Set the target from your payback goal, then lower it if volume stalls.

See how we run App campaigns on our Google Ads agency page.

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