Source: https://oguzerol.com/en/roas-optimization/ Google Ads # ROAS Optimisation | Raising Return on Ad Spend [Oğuz Erol](https://oguzerol.com/en/about-me/) | 3 min read ROAS is return on ad spend — the revenue returned for every unit spent. It looks like a simple metric, but most decisions built on it turn out wrong because how it is calculated is misunderstood. ## Revenue ROAS misleads Standard ROAS is calculated on revenue and ignores margin entirely. A ROAS that looks high on a low-margin product may actually be losing money; a ROAS that looks low on a high-margin product may be profitable. So when setting the target I first calculate the break-even point: at what ROAS level does your margin cover costs. The target sits above that. Industry averages floating around are meaningless without knowing your own cost structure. ## The reality of returns and shipping Return rate and shipping cost are the frequently skipped items. A category with a high return rate can look like the best-performing area of the account when viewed on revenue, while actually losing money. Similarly, in shops offering free shipping, low-basket orders drag profit down even when ROAS looks fine. When these items are not reflected in conversion value, the algorithm promotes the wrong products. ## The levers that raise return The first lever is product selection: concentrating budget on high-margin products that convert. This requires separating product groups on the [Google Shopping](https://oguzerol.com/en/google-shopping-ads/) and [Performance Max](https://oguzerol.com/en/performance-max-ads/) side; if everything sits in one campaign, that separation is impossible. The second is basket size: getting higher-value orders from the same ad spend raises ROAS directly. The third is [conversion rate](https://oguzerol.com/en/conversion-optimization/): every visitor lost on the page is a click you already paid for. The fourth is cutting wasted spend. Moving non-converting searches to the [negative list](https://oguzerol.com/en/negative-keyword-management/) raises ROAS quickly, because the denominator shrinks. ## Balancing target ROAS against volume Raising the target increases return but reduces volume — the algorithm enters fewer auctions. Setting the target too aggressively can nearly stop the campaign. The right approach is gradual: move the target up from current performance in small steps and watch volume at each one. If your goal is growth, more sales at a lower ROAS may be right; if your goal is profit, the opposite. That is a strategic choice. **How do we start?** First I look at your real margin structure and your current conversion value setup. We work out your break-even point and a realistic target together. You can reach me from the [contact page](https://oguzerol.com/en/contact/). ## Frequently Asked Questions ### Should I track ROAS or ROI? ROAS only accounts for ad spend, ROI for all costs. ROAS is practical for day-to-day campaign decisions; ROI is what you need when deciding whether the business is profitable. ### How do I send margin data to Google Ads? By bringing conversion value closer to gross profit instead of revenue. The method varies by stack, but the outcome is the same: the closer the value the algorithm sees is to real profit, the better its decisions. ### Should I start a new campaign with a target ROAS? Usually not. A target set before data accumulates can stop the campaign from serving at all. Accumulating conversions first and moving to target return afterwards is healthier. [Back to top ↑](https://oguzerol.com/en/roas-optimization/#icerik) ## You may also find these useful [E-Commerce Google Ads Management | ROAS-FocusedGoogle Ads management for e-commerce: feed quality, value-based bidding, cart abandonment campaigns and measurement that shows real profitability.](https://oguzerol.com/en/e-commerce-google-ads-management/)[Google Shopping Ads | Performance Max ManagementShopping and Performance Max campaigns for your e-commerce store. Product feed, conversion tracking, and ROAS optimization, all in one place.](https://oguzerol.com/en/google-shopping-ads/)[CPA Optimization | Lowering Cost Per ConversionGoogle Ads CPA optimization: target cost-per-conversion strategy, funnel analysis, and conversion-rate improvement to sustainably lower CPA.](https://oguzerol.com/en/cpa-optimization/) [Browse all articles →](https://oguzerol.com/en/articles/) WHAT YOU CAN ASK FOR ## How do I work? Work-hour packages Tell me about your business and what you need on WhatsApp or by phone; we agree on **a work block of somewhere between 5 and 40 hours** and I start doing what is needed. What you get is not a calendar window — it is net working hours spent directly on your business. I can use 40 hours working three days straight, or deliberately spread it out and finish it over a year — whatever the work calls for. I do not spend my time estimating how long something will take, I spend it doing the work; every hour I spend leaves a lasting result in your business. We keep going for as long as you find it useful. WORK BLOCKS ## Why not monthly? Is 40 hours a week? On a fixed monthly fee both sides are watching the wrong thing: you watch a fixed cost, the other side watches how many more contracts like this they can line up. Working by the hour puts us both in front of the same thing — the real value of the work that got done. I know not having an upfront answer to "how much will this cost in total?" is the natural cost of this model. But instead of paying a fixed fee for months to a setup that is not producing results, you only pay for the qualified time spent on your work — and you see exactly where that time went, start to finish. That is why my clients keep coming back. 5hours300€ + VAT60€ per hour[Choose this block](https://wa.me/905496546489?text=Hi%2C%20I%27d%20like%20info%20about%20the%205-hour%20work%20block.) 10hours500€ + VAT50€ per hour[Choose this block](https://wa.me/905496546489?text=Hi%2C%20I%27d%20like%20info%20about%20the%2010-hour%20work%20block.) 20hours800€ + VAT40€ per hour[Choose this block](https://wa.me/905496546489?text=Hi%2C%20I%27d%20like%20info%20about%20the%2020-hour%20work%20block.) 40hours1,400€ + VAT35€ per hour[Choose this block](https://wa.me/905496546489?text=Hi%2C%20I%27d%20like%20info%20about%20the%2040-hour%20work%20block.)