What is tROAS?
Malthe Weibeck Thomsen · Growth Hacker · Senior Pull Specialist · 8 July 2026 · 3 min.
Definition
tROAS (target ROAS) is a smart bidding strategy in Google Ads that automatically adjusts bids to hit a set target for return on ad spend.
Also called: tROAS, Target ROAS
Sådan virker det
Der findes ikke ét “godt” ROAS-tal. Det, der betyder noget, er, om du slår dit break-even — 1 delt med din dækningsgrad. En kampagne over linjen tjener penge; en under taber, uanset hvad branchegennemsnittet siger.
01tROAS is only as smart as the value you feed it
tROAS optimises toward whatever it sees as value. Send revenue and it chases revenue — shovelling budget toward products that sell a lot, regardless of margin. Send contribution margin as conversion value and it bids for actual profit. Same strategy, opposite outcome.
Set the target relative to break-even: your break-even ROAS is 1 divided by your margin rate. The tROAS target should sit meaningfully above that, so there's profit after ad cost — and ideally differentiated per margin bucket via custom labels.
Frequently asked questions
How do I set a sensible tROAS target?+
Start from your break-even ROAS (1 / margin rate) and add a profit requirement on top. If you feed contribution margin as conversion value, the target can be set uniformly across the board, because the value already reflects margin.
Why isn't my tROAS target enough on its own?+
Because it optimises toward the value you send. Send revenue and it favours low-margin volume. The fix is to send contribution margin as conversion value, so tROAS chases profit.
Related terms
Glossary
What is Maximize Conversion Value?
Maximize Conversion Value is a smart bidding strategy that spends the entire budget to achieve the highest possible total conversion value — optionally with a tROAS target.
Read the entry →Glossary
What is break-even ROAS?
Break-even ROAS is the ROAS at which contribution margin exactly covers the ad cost — neither loss nor gain. It's calculated as 1 divided by your margin.
Read the entry →Glossary
What is POAS?
POAS (Profit on Ad Spend) is your gross profit divided by ad spend. Where ROAS measures revenue per ad euro, POAS measures what you actually keep — after cost of goods, shipping and fees.
Read the entry →Guide
POAS-driven bidding in Google Ads
Read the entry →
Malthe Weibeck Thomsen
Growth Hacker · Senior Pull Specialist at Oaksmond
Pull specialist with 8+ years' experience. Comes from the agency world and has since worked as an independent consultant for several of the country's largest brands.
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