Target ROAS, or tROAS, is a bidding strategy used in advertising where an advertiser sets a desired return on ad spend (ROAS), and the platform's algorithm automatically adjusts bids to hit that target. That means that rather than manually setting bids for each placement, advertisers state the return they want and campaigns optimize against that target.
For example, if an advertiser wants $4 back for every $1 spent, the tROAS campaign system will use predictive modeling to bid higher on users more likely to deliver that value, and de-prioritize bidding on those who won’t.
tROAS lets advertisers scale campaigns around a specific efficiency goal instead of manually managing bids across every placement. Because it optimizes for the value of each conversion rather than just the volume, it helps advertisers prioritize higher-value users, which supports stronger long-term profitability.
It's most effective when conversion values genuinely vary from user to user, giving the algorithm meaningful signal to bid up or down. For campaigns where every conversion is worth roughly the same, a volume-based strategy like target CPA (cost per action) is usually a better fit.