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.
| tRoas (%) | Marketing Option Float | Marketing Option tRoas⁻¹ |
|---|---|---|
| 10,000.00% | 1.0 | tROAS⁻¹: 1.0% |
| 7,500.00% | 1.3 | tROAS⁻¹: 1.3% |
| 5,000.00% | 2.0 | tROAS⁻¹: 2.0% |
| 3,500.00% | 2.9 | tROAS⁻¹: 2.9% |
| 2,500.00% | 4.0 | tROAS⁻¹: 4.0% |
| 2,000.00% | 5.0 | tROAS⁻¹: 5.0% |
| 1,500.00% | 6.7 | tROAS⁻¹: 6.7% |
| 1,200.00% | 8.3 | tROAS⁻¹: 8.3% |
| 1,000.00% | 10.0 | tROAS⁻¹: 10.0% |
| 800.00% | 12.5 | tROAS⁻¹: 12.5% |
| 600.00% | 16.7 | tROAS⁻¹: 16.7% |
| 400.00% | 25.0 | tROAS⁻¹: 25.0% |