This is an interesting change…
The ROAS (Return On Ad Spend) Goal bid strategy is now available for the performance goal that “maximizes the number of conversions.”
Let’s take a closer look…
ROAS Goal History
When running ads for purchases, most advertisers use the performance goal to “maximize the number of conversions.”
When selected, Meta is only focused on getting you as many conversions as possible within your budget. You could get a lot of cheap purchases that way, resulting in a low or negative return.
If that happened, the typical response was to optimize for value: You’d use the “maximize value of conversions” performance goal and possibly use a ROAS Goal.
Advertisers have used this with mixed results.
The Change
In the past, ROAS Goal was only available when maximizing the value of conversions. And this made sense because value and ROAS are closely tied together.
But now if you maximize the number of conversions, you’ll have the option to select a ROAS Goal bid strategy when using ABO.
And when using CBO where the campaign bid strategy has been defined as ROAS Goal, you can define a ROAS Goal while choosing to maximize the number of conversions.
My Thoughts
So this change is surprising, but it might help solve a problem. This option provides a bit of a middle ground.
In theory, this could be a good thing, but I’m struggling to wrap my brain around it. How would this be different than using this bid strategy while maximizing value?
Maybe it will solve some of the volume and distribution problems advertisers have faced when maximizing value. Meta made this update for a reason. It’s certainly worth testing.
