tRoas

tROAS (Target Return on Ad Spend) is a bid strategy used in digital advertising, particularly in platforms like Google Ads, where you can set a desired return on ad spend as a percentage. The algorithm then automatically adjusts bids to maximize conversion value while trying to achieve the specified return.

How tROAS Works on platforms like google:

• You set a target ROAS (e.g., 400% means you want 4€ in revenue for every 1€ spent).
• The algorithm adjusts bids in real-time to maximize conversion value while aiming for the target.
• Higher tROAS means the algorithm prioritizes efficiency over volume, leading to fewer but more profitable conversions.
• Lower tROAS means the algorithm prioritizes more conversions, even if they’re less profitable.

Marketing Option: tRoas⁻¹

Our tool uses inverted tROAS displayed as tROAS⁻¹ as Marketing Option to make marketing steering more intuitive. Instead of comparing tRoas directly (which can feel counterintuitive), the Marketing Option tRoas⁻¹ value gives you a clear sense of how aggressively you’re pushing your marketing:

• Lower Marketing Option tRoas⁻¹ → Less aggressive marketing
• Higher Marketing Option tRoas⁻¹ → More aggressive marketing

How to Calculate it

1. tRoas to Marketing Option tRoas⁻¹

If you want to check the Marketing Option, just divide 100 by the tRoas (expressed as a whole number):

Example:

A tRoas of 1,298.70% – moderate steering

100 ÷ 12.987 = 7.7

Marketing Option tRoas⁻¹: 7.7%

A tRoas of 952.38% – more aggressive steering

100 ÷ 9.5238 = 10.5

Marketing Option tRoas⁻¹: 10.5%

This way, instead of dealing with percentage comparisons, you get a clear and simple scale to guide your decisions.

2. Marketing Option tRoas⁻¹ to tRoas

If you have a Marketing Option tRoas⁻¹ and want to find the corresponding tRoas (in percentage), simply divide the Marketing Option Float by 100.

Example:

A Marketing Option of 7.7 tRoas⁻¹ – moderate steering

100 ÷ 7.7 = 12.987 → 1,298.70%

A Marketing Option of 10.5 tRoas⁻¹ – more aggressive steering

100 ÷ 10.5 = 9.5238 → 952.38%

tRoas and Marketing Option

This table shows common tRoas values and their corresponding Marketing Option Float and Marketing Option tRoas⁻¹ for easier reference.