Google Ads has introduced a new feature allowing advertisers to calculate their Target ROAS based on their profit margin. This update aims to provide advertisers with a more precise understanding of where their ROAS stops covering their margin.
Advertisers can enter their average profit margin excluding ad spend, and the calculator automatically determines the break even Target ROAS.
For example, a 15% profit margin results in a Target ROAS of 667%. The tool also displays estimated weekly clicks, revenue, ad spend, and profit based on the selected target.
Advertisers can adjust the Target ROAS and apply it directly to their campaign using the Use this target ROAS button.