A marketer is setting up a Google Search campaign using a conversion-based Smart Bidding strategy. To meet their value-based objectives, they've chosen to use Target ROAS. What method can they follow to select their initial ROAS target?

For an initial Target ROAS, Google Ads recommends using the campaign’s historical conversion value / cost as the starting reference. That metric shows the return the campaign has already been producing relative to spend, so it gives a realistic baseline for a value-based bidding target. Google Ads guidance also notes that the initial target should generally be at or below historical performance, because an overly high target can limit traffic volume. This approach aligns the bidding strategy with actual account data instead of assumptions about cost or competitors