A ROAS goal tells Meta: "spend my budget to maximise purchase value, but keep the average return at or above this number". It is a value-based bid strategy, the value version of a cost per result goal, and it replaced what Ads Manager used to call minimum ROAS. You'll often hear it called target ROAS.
How a ROAS goal works
You choose maximise value of conversions as the performance goal, then pick ROAS goal as the bid strategy and enter a number, such as 2.5 (shown in Ads Manager as a ROAS figure or percentage, depending on the interface). Meta then predicts not only who is likely to buy but how much they're likely to spend, and bids more for people it expects to place bigger orders.
Like other goal-based strategies, it:
- Targets an average over many purchases, so some days and some orders will be below the goal.
- May spend less than the budget if it can't find enough value at your goal.
- Depends completely on accurate purchase values from your pixel and Conversions API.
Requirements
- The Sales objective with a website or app conversion location.
- Purchase events that include value and currency, with test orders and duplicates removed.
- Enough purchase history for Meta to predict value. Meta doesn't publish a single threshold for every account, so expect an option to be missing or to perform poorly on a new pixel.
How to set a ROAS goal
- Work out your break-even ROAS from contribution margin. The break-even ROAS calculator does this.
- Check the ROAS the campaign has achieved on the same attribution setting over recent weeks.
- Start at or slightly below that achieved ROAS, as long as it is above break-even.
- Raise the goal gradually if spend is stable. Lower it if delivery stalls.
Worked example
Example: a store with an average order value of ₹1,600 and a 40% contribution margin.
- Break-even ROAS = 1 ÷ 0.40 = 2.5
- Recent achieved ROAS on highest value: 3.1
- Starting ROAS goal: about 2.8 to 3.0
- A goal of 5.0 would likely throttle delivery to a trickle
When to use it
| Use a ROAS goal when | Avoid it when |
|---|---|
| Order values vary a lot | Every order is roughly the same value |
| Purchase values are accurate | Values include test orders, taxes inconsistently or the wrong currency |
| You have stable purchase history | The pixel is new or purchases are rare |
| You must protect profitability while scaling | You need to spend a set amount by a deadline |
If order values are roughly the same, a cost per result goal is simpler and does the same job. See bid strategy to compare all options.
Frequently asked questions
What is a ROAS goal on Meta?
A ROAS goal is a bid strategy that asks Meta to maximise purchase value while keeping your average return on ad spend at or above the figure you set. It replaced the setting Meta used to call minimum ROAS.
What ROAS goal should I set?
Set it above your break-even ROAS and near the ROAS the campaign has actually achieved recently on the same attribution setting. Starting with an ambitious number usually stops delivery. Adjust in small steps after a week of data.
Why is my ROAS goal campaign not spending?
Meta can't find enough purchase value at or above your goal. Lower the goal in small steps, add stronger creative, broaden the audience or check that purchase values are being sent correctly. Underspending is how the strategy protects the goal.
Should I use a ROAS goal or a cost per result goal?
Use a ROAS goal when order values vary widely and your value data is clean, because Meta can then chase bigger baskets. When most orders are a similar value, a cost per result goal is simpler and works just as well.
