Target ROAS and CPA aren’t optimization settings. They’re business decisions. Many accounts inherit a target from a previous agency, finance team, or account manager without questioning whether it still makes sense. Set it too aggressively, and you limit volume and lose auctions. Set it too loosely, and you sacrifice profit. This four-step framework shows you how to calculate a defensible target, test whether it’s realistic, and confirm that your last advertising dollar is still making you money. Why your target matters more than you think Two companies sell the same product. One tells their agency to hold ROAS at 800%. The other is fine…
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