News Summary

• Smart Bidding is optimized to achieve its targets, not necessarily to grow the business.
• An ad account can consistently hit its Target CPA or Target ROAS while revenue, profit, and overall business growth barely change.
• Google has indicated that budget-constrained campaigns using tCPA and tROAS will now be pulled closer toward their stated targets rather than outperforming them.
• Most ROAS and CPA targets get set once and forgotten.
• They come from historical performance, an industry benchmark, or a number that felt safe at the time.