Which Smart Shopping campaign setting will help you determine the value of acquiring new customers?
- Click-through rate
- Target return on ad spend (tROAS)
- Optimize for store visits
- Enhanced cost-per-click (eCPC)
Explanation:
The correct answer is **Target return on ad spend (tROAS)**. When aiming to determine the value of acquiring new customers, setting a target return on ad spend (tROAS) allows advertisers to specify the desired return they expect from their advertising investment. With tROAS, advertisers can optimize their Smart Shopping campaigns towards achieving a specific return on the amount spent on ads. This metric is particularly valuable for businesses seeking to measure the effectiveness of their advertising efforts in generating revenue and acquiring new customers. By setting a target ROAS, advertisers can ensure that their ad spend is aligned with their business objectives, whether it’s driving sales, maximizing revenue, or acquiring new customers. The tROAS setting enables Smart Shopping campaigns to automatically adjust bids based on historical performance data and real-time signals, optimizing towards achieving the specified return on ad spend goal. This way, advertisers can effectively allocate their budget to reach potential customers who are likely to generate the desired return, ultimately driving the acquisition of new customers while maintaining profitability.
This bid strategy automatically sets bids to help get as much conversion value as possible at the target return on ad spend (tROAS) you set.
tROAS also offers support for your omnichannel objectives by enabling you to include a value for offline performance (store visits).
By default, Smart Shopping campaigns set bids that maximize the value of your conversions within your provided average daily budget. If you have a specific performance goal, add a target return on ad spend (tROAS).