> Quick answer: ROAS = total conversion value divided by total ad spend. Google Ads labels it "Conv. value/cost." Add that column to your reports, confirm conversion values are set, and use Target ROAS bidding to automate toward a goal.
What Is ROAS in Google Ads?
ROAS stands for return on ad spend. It measures how much revenue you earn for every dollar spent on ads. Per Google Ads Help Center documentation, the metric is officially labeled "Conversion value per cost." The math is simple. But you need conversion tracking in place before the number means anything.
Note: Google Ads also tracks ROI separately. ROI accounts for cost of goods sold. ROAS does not. They are different metrics.
The ROAS Formula
ROAS = Conversion Value / Total Cost
Higher is better. A ROAS of 3 means $3 earned for every $1 spent.
Understanding Conversion Value
Conversion value is the revenue Google Ads records when someone converts after clicking your ad. You set this value inside each conversion action. For ecommerce, it's usually the transaction amount pulled dynamically from your site. For lead gen, you assign a fixed estimated value per lead.
Without conversion values assigned, Google Ads cannot compute your ROAS. The column shows nothing.
Understanding Total Cost
Total cost is the amount you spent on a campaign or ad group over a selected time period. Google Ads calculates this automatically. No manual input needed.
Working Through an Example
You spend $200 on a campaign. That campaign drives $700 in conversion value. ROAS = $700 / $200 = 3.5, or 350%. Per the Google Ads Help Center, a 500% ROAS target means you want $5 back for every $1 spent.
How to View ROAS in Google Ads
The ROAS column is not visible by default. You add it manually.
- Open Google Ads and navigate to your Campaigns view.
- Click the Columns icon near the top right of the table.
- Select Modify columns.
- Expand the Conversions section.
- Find Conv. value / cost and click Add.
- Click Apply.
Per Google Ads Help Center guidance on measuring Smart Bidding performance, your ROAS target should sit at or below your historical Conv. value/cost figure. Look at the last four weeks of data as a baseline.
Setting Up Conversion Tracking for ROAS
No conversion values, no ROAS data. This is a hard requirement.
Here's what to do:
- Go to Tools and Settings > Measurement > Conversions in Google Ads.
- Create a conversion action and assign a value. Use a fixed amount or pull a dynamic value from your site.
- Install the Google Tag on your website. Or connect your ecommerce platform directly.
- Confirm conversions are recording. Check the Conversions column in your reports.
Google also offers Enhanced Conversions to improve tracking accuracy. More accurate tracking means more reliable ROAS data. Per Google Ads Help, wait at least four weeks before drawing firm conclusions from conversion value data.
Using Target ROAS Bidding
Once your conversion values are tracking reliably, you can automate bidding toward a ROAS goal.
To enable Target ROAS:
- Open a campaign and go to Settings.
- Click Bidding.
- Choose Conversion value as your optimization focus.
- Turn on Set a target return on ad spend (ROAS).
- Enter your target as a percentage. A 400% target means $4 back per $1 spent.
Per Google Ads Help Center documentation on Target ROAS bidding, you must assign values to all tracked conversion actions before applying this strategy. Start close to your historical ROAS. Moving the target too aggressively too fast limits your impressions. Google also recommends waiting for three full conversion cycles before locking in an automated bid strategy.
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Frequently Asked Questions
What is the difference between ROAS and ROI in Google Ads?
ROAS (Conv. value/cost) measures revenue earned per dollar spent on ads. ROI factors in cost of goods sold on top of ad spend. Google Ads tracks them separately. You need COGS data to calculate true ROI. Most advertisers start with ROAS.
Why is my Conv. value/cost column empty in Google Ads?
The column shows no data when conversion values are not assigned to your conversion actions. Go to Tools and Settings, open Conversions, and add a monetary value to each action you are tracking. Without values, Google has nothing to divide by.
What ROAS should I target on Google Ads?
Base your target on your historical performance. Per Google Ads Help Center guidance, your Target ROAS should be at or below your historical Conv. value/cost figure. Review the last four weeks of data as a starting point before setting an automated target.
How long do I need to wait before using Target ROAS bidding?
Google recommends waiting at least four weeks of data or three full conversion cycles after you start tracking conversion values with assigned amounts. Applying Target ROAS too early, with too little data, reduces the algorithm's ability to optimize accurately.