Target ROAS is a Smart Bidding strategy or target that aims to generate conversion value at a specified return on ad spend.
It matters because paid search can spend budget quickly. Knowing this term helps teams control intent, targeting, bidding, creative, conversion tracking, and lead quality instead of optimizing for surface-level clicks.
Example
A retailer sets a 400% target ROAS, expressing a goal of $4 in tracked conversion value for each $1 of ad spend. That is a bidding target, not a guaranteed return, and it does not account automatically for product margin or operating costs.