Target ROAS is one of the four Conversion Bid Strategy (CBS) modes, alongside with semi-automatic, fully-automatic and Target CPA. Target ROAS is a great tool for marketers that have a business goal of maximising the purchase value from each conversion or mobile app install.
Important Note – If you have a PVAC goal (Page Views After Click), please reach out to your Account Manager. Although this is not available from the Amplify dashboard currently, we will be happy to set it up for you.
What is ROAS?
For starters, ROAS stands for return-on-ad-spend and is a marketing metric that measures how much revenue you make, or expect to make, compared to your advertising spend. In other words, it answers the question, “If I spend x amount of money on advertising, how much will I make back in sales?
What is Target ROAS?
This CBS mode is designed to serve content where your desired Return on Ad Spend can be reached, based on the total conversion or order value you’d like to get for each dollar you spend on Outbrain. To do this, we not only bring traffic to top converting publisher sections that meet your desired ROAS; we also dynamically change your campaign CPC to deliver a return value that fits your target ROAS over the duration of the campaign.
Your Target ROAS will be shown as a percentage. For instance, if your Target ROAS is 150%, you expect to make $150 back for every $100 you spend on advertising with Outbrain.
Who should use Target ROAS?
Target ROAS gives you more command over the value that a campaign accrues to your business. Marketers that are focused on driving online sales and ideally have the ability to pass back conversion data to Outbrain are a great fit for Target ROAS. App Clients with in-app purchases as their goal would benefit from Target ROAS as well.
Who shouldn’t use Target ROAS?
You shouldn’t consider Target ROAS as an option if you are:
- A marketer that has a low conversion volume for your sales/purchase (less than 8 conversions a week).
- A marketer that want high level of control over your CPC
- A marketer that have a target CPA (in that case, Target CPA is the mode for you).
How do I enable Target ROAS?
During campaign setup, after selecting your Campaign Objective, and your Creative Format, there will be a section labeled “Budgets.” From there, you will see 4 options from a drop-down menu within the Conversion Bid Strategy: Fully Automatic, Semi Automatic, Target CPA or Target ROAS. Select Target ROAS.
Please note that 1 conversion event must be selected for Target ROAS to be enabled. For more information about the conversion setup process, please visit this Help Center article. If you do not plan on passing back conversion sales data, you must enter a conversion value on the Conversion page.
However, if you do plan on passing back conversion sales data dynamically, please refer to the “How do I implement dynamic values?” Help Center article. We suggest using dynamic values if you have multiple conversion values that you want your pixel to receive, as this will ensure accuracy of your ROAS.
Then, enter the ROAS goal that you wish to obtain. Remember, ROAS is a percentage – if your ROAS goal is 150%, that means you would expect to spend $100 and get a return of $150.
How do I control my campaign on Target ROAS?
In general there is no optimization needed for Target ROAS. The Outbrain algorithm will do it all for you. However, if you are hitting your ROAS goal, you can either increase the target ROAS, or increase the budget. Alternatively, if you’re not reaching your ROAS goal, you can decrease the target ROAS or lower the budget.
Why is my campaign not reaching my Target ROAS?
Have you noticed that your campaign’s actual ROAS is not getting to your target ROAS? This might be due to a lack of data for Outbrain’s algorithm to work from. If so, you’ll see a notification under the Objective & Optimization section of the campaign screen of either “learning” or “low conversion data.” Another reason for not reaching your Target ROAS might be that the minimum ROAS bid is too high, preventing us to meet this threshold to spend the campaign’s full budget.
What does “Learning” mean?
If the system tells you that your campaign is “learning” this is OK – it just means that your campaign was launched recently and the system is still gathering data for optimization. Please note that the “learning” phase for Target ROAS may last for about a week after launch.
What does “Low Conversion Data” mean?
If the system tells you that your campaign has “low conversion data” this means that your campaign has recently slowed to a low number of conversions
Please check the following campaign details to ensure that we can collect enough data to optimize towards your target ROAS:
- Is the pixel implemented correctly? For pixel implementation guidance, please check out this Help Center article.
- Are the values being passed back correctly? For help with Dynamic Values please reference this article.
- Is the pixel triggering on all platforms?
- Is the Target ROAS reasonable to achieve?
Important to Note:
- You cannot enable a campaign without selecting a conversion that passes Outbrain its value. To reiterate, this can be passed back dynamically or entered in the Outbrain Dashboard.
- To bring you to your target ROAS, while maintaining the highest number of conversions for that ROAS, the system will adjust the CPC for each serving based on multiple data points, in addition to adjusting the campaign’s (base) CPC.
- There are cases where the system can get more conversions within your ROAS, in this case the system will raise the CPC (you’ll see it as “optimized CPC”). When the Optimized CPC reaches the Maximum CPC threshold, the system will no longer be able to raise the CPC. If you want to get more conversions with your target ROAS, you will need to raise the Entered CPC (we recommend raising it to be the same as the Optimized CPC) so that the algorithm can continue optimizing.