Search

Optimising Your ROAS Target Feature For Your Ads

Last updated: 9 January 2024

​​This feature is still in beta mode, and is only available to selected sellers. 


ROAS, or Return on Ad Spend, allows you to measure the sales your ads generate for every dollar spent on ads. The ROAS Target Feature is available for Auto Bidding under Product and Shop Ads. 


Note*: This feature is currently in Beta mode and not available to all users yet.


There are two main options: 


  1. System Optimised
  2. Custom ROAS Target


Shopee will recommend 3 ROAS Target values for different use cases:


  1. Lower Recommended ROAS Target: Selecting this will allow our system to gain the most competitive results, targeting towards delivering as many impressions as possible for your ads


  1. Optimal Recommended ROAS Target: Selecting this will optimise performance towards a balanced Ads spend usage rate, and advertises your ad campaigns to Shoppers who are more likely to purchase your products


  1. Higher Recommended ROAS Target: For more conservative Advertisers, we recommend setting this value to better control ads spend. However, this may mean your ad will not deliver and generate as many impressions and your Daily Budget might not get maximised and you may stand to lose quality Shopper impressions


  1. Set your own ROAS Target value: For sellers that prefer to set your own ROAS target  


Note*: Custom ROAS is not available for when you select multiple products when setting up Product Ads


Why should I use ROAS Target?


  1. With ROAS Target, you can gain more control over how your budget is optimised when Auto Bidding is enabled.
  2. With Auto Bidding, Shopee’s algorithm will continuously optimise your ad as the system gains more historical performance, and is likely to perform closer to your set target over a longer period of time


How do I set ROAS Target?


You may set ROAS Targets for your ads by creating a new Product or Shop Ad with Auto Bidding or navigating to the Product or Shop Auto Ad Details page for a specific product.


Note: Setting of ROAS Target is only available when the ad's bidding method is Auto Bidding


Setting ROAS Target for a new Product or Shop Ad


  1. From Shopee Ads Homepage, navigate to create a new Ad and select Product or Shop Ads
  2. Under Bidding Strategy, select Auto Bidding options to set your ROAS Target. 



Setting ROAS Target for an Ongoing Product Ad


  1. From Shopee Ads Homepage, navigate to the Product Ad and click on it to enter the Product Ad Details page.
  2. Ensure that the Auto Bidding mode is selected.
  3. Under the Performance section, click on ROAS Target and it will lead you to a prompt to edit your ROAS Target.
  4. For products with previous historical Ads performance, you should check your historical ROAS performance as a benchmark to set your ROAS Target goals.


Setting ROAS Target for an Ongoing Shop Ad


  1. From Shopee Ads Homepage, navigate to the Shop Ad and click on it to enter the Shop Ad Details page
  2. Ensure that the Auto Bidding mode is selected.
  3. Under the Performance section, click on ROAS Target and it will lead you to a prompt to edit your ROAS Target.




What does it mean when the ad is in the learning phase?



  1. The yellow box that appears on the ads dashboard indicates that your ad is going through the learning phase when ROAS Target is enabled. 
  2. During this learning phase, you may expect to see some performance fluctuations as the system is exploring the best ways to deliver your ad to shoppers during this period. 
  3. To ensure that your ad reaches its optimal performance, refrain from making any adjustments to your ad settings during this learning period.


Why does changing my ROAS Target feature impact my ad performance?


  1. This learning phase is expected to take around 14 days starting from the time you create your Product or Shop Ad. Any changes made (e.g. when placement or ROAS setting is modified), the learning phase will restart from Day 0. Nevertheless, this duration can vary for each ad, depending on Shopee’s algorithm based on user behaviour accumulated for the ad.
  2. To ensure that the system is able to optimise well towards your ROAS Target, refrain from making any adjustments to your Product or Shop Ad settings during the learning phase.
  3. Once the performance has stabilised, it is recommended to monitor performance and update the ROAS Target every month for best optimisation practice 
  4. ROAS Target is not guaranteed, and will be different depending on the type of Product or Shop Ads being set up. 

Was this page helpful?

yes Yes
no No
Content

Why should I use ROAS Target?

How do I set ROAS Target?

Setting ROAS Target for a new Product or Shop Ad

Setting ROAS Target for an Ongoing Product Ad

Setting ROAS Target for an Ongoing Shop Ad

What does it mean when the ad is in the learning phase?

Why does changing my ROAS Target feature impact my ad performance?