kohdeROAS

KohdeROAS, known in English as Target ROAS, is an automated bidding strategy used in digital advertising that aims to maximize conversion value while achieving a specified return on ad spend. The approach focuses on the revenue generated by conversions rather than the sheer number of conversions.

The strategy relies on machine learning to predict the likelihood that a click will lead to a conversion with a given value and to adjust bids in real time for each auction. It considers signals such as device, location, time of day, audience, and other contextual factors to optimize bids so that the expected value meets the target ROAS. It is commonly applied in platforms that support value-based bidding, including Google Ads, particularly for e-commerce and other value-driven campaigns.

KohdeROAS requires historical conversion value data to learn effectively. Advertisers should have enough conversion value data for the system to model performance; with limited data, learning can be slow and results may be volatile. The approach is best suited for campaigns where the value of each conversion varies, and the goal is to maximize revenue relative to spend, rather than simply increasing the number of conversions.

Compared with other automated strategies, kohdeROAS explicitly targets profitability measured as ROAS, rather than only optimizing for conversions or clicks. Setup involves choosing a target ROAS percentage (for example, a target of 400% implies a aim of $4 in value per $1 spent). Users should monitor performance during the learning period and adjust the target as needed based on business goals and seasonality.