Target ROAS Settings for New Stores

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Target ROAS is the most powerful and most misused setting in Shopping. For a new store, the right starting point comes from your margins, not from a benchmark. It is part of how I set up Google Shopping ads.

Find your break-even ROAS

Break-even ROAS is 1 divided by your margin. With a 40% margin, break-even ROAS is 250%.

Start below your goal

New campaigns need data. Start close to break-even, then raise the target in small steps once conversions are steady.

Change slowly

Adjust by 10 to 20% at a time and wait at least a week between changes.

Related: Shopping campaign structure by margin.

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