Your premium beverage customer set a target return on ad spend (tROAS) bid strategy in Search Ads 360. They noticed that when they evaluate how the strategy is doing, there's limited consistency and minimal automation. What might be happening?
They didn't make optimizations or adjustments post-bid strategy launch.
They reviewed performance data after conversion delay cycles passed.
They began the evaluation between one to two weeks.
They began the evaluation after week four.
Explanation
Analysis of Correct Answer(s)
Search Ads 360 automated bid strategies, like target ROAS (tROAS), require an initial learning period to gather sufficient performance data before they can effectively optimize bids. This period is crucial for the algorithm to understand conversion patterns and value.
- Evaluating a new bid strategy between one to two weeks is too early. During this initial phase, performance is expected to be volatile and inconsistent as the system is still learning. The "minimal automation" observation is a direct symptom of the strategy being in this early data-gathering stage, where it has not yet built the confidence to make significant, consistent optimizations.
Analysis of Incorrect Options
- Not making optimizations post-launch: This is actually a best practice. You should avoid making frequent manual adjustments during the learning period, as this can interfere with the algorithm and prolong the time it takes to stabilize.
- Beginning the evaluation after week four: This is the recommended approach. By the fourth week, the bid strategy has typically exited the initial learning phase, and its performance should be more stable and representative of its potential.
- Reviewing after conversion delay cycles passed: This is another best practice. Accounting for conversion delay ensures you are analyzing the most complete and accurate conversion data, which is essential for properly assessing a tROAS strategy's performance.