Hello Rakesh,
Thank you for using our Microsoft Advertising Community Forum!
With Target return on ad spend (ROAS), you set your budget and your target 30-day average ROAS, and Microsoft Advertising automatically sets your bids in real time to get you to this average.
Microsoft Advertising will always respect your overall budget limit; but if you want greater control over your bids while using Target ROAS, you can also set a maximum CPC (cost per click). This is an optional limit you can set to make sure that Microsoft Advertising never charges more than a certain amount for each individual click.
You need to have conversion tracking (either a UET tag + an active conversion goal, or offline conversions) set up and have positive revenue tracked in order to use the Target ROAS bid strategy. We recommend giving the bid strategy enough time to accumulate at least 50 conversions before evaluating its performance.
You cannot change bids for keywords that are using Target ROAS. This means that automated rules and third-party bid management tools will not affect these keywords. With Target ROAS, Microsoft Advertising will have full and final control over optimizing your bids. That said, any bid adjustments you have set (or that you set in the future) can be used to inform your Target ROAS automated bids (while still striving to achieve your Target ROAS).
For further information please see the following help link:
Let Microsoft Advertising manage your bids with bid strategies
When setting up smart shopping campaigns, please keep in mind the fourth step outlined on the help page below:
About smart shopping campaigns (microsoft.com)
"Enter your Campaign name, set your Campaign budget, and, optionally, select the Set a target return on ad spend (ROAS) checkbox if you want to enable a target ROAS goal for the campaign. Note: If you select the optional ROAS target, it will override the default maximum conversion auto-bidding."
You might also be interested in considering Dynamic remarketing lists. Dynamic remarketing lists pair customers with specific products based on what they have looked at, considered, or already purchased on your website. You can use dynamic remarketing lists in both search campaigns and audience campaigns (not everyone has audience campaigns yet).
Why use dynamic remarketing lists?
Targeted audience reach. Show tailored ads for specific products to people who have already shown purchase intent signals for those very products.
Boosted performance. Dynamic remarketing lists can increase the likelihood of clicks and conversions, and can provide a better return on ad spend than standard remarketing lists.
Easy to use. You can create five types of dynamic remarketing lists — general visitors, product searchers, product viewers, shopping cart abandoners, and past buyers — so you don't need to create a remarketing list for each individual product.
Dynamic remarketing lists: Remarketing for products (microsoft.com)
Last but not least, it might also be of benefit to you if you consider switching over to Expert mode in order to have more control over your advertising. Your Microsoft Advertising experience will slightly differ depending on the mode that you're in. Each mode represents how much time you're willing and able to devote to advertising, as well as goals you have and features you prioritize. Smart mode is a streamlined, simple experience that lets Microsoft Advertising's AI take care of most of the nuts and bolts of ad campaign management. It's a great way for small businesses and novice advertisers to start off advertising on the Microsoft Search Network. Expert mode is the full-featured Microsoft Advertising experience. It gives you more control over campaign management, lets you add more content to your ads, and provides more performance reporting and tracking. Expert mode is perfect for advanced marketers and advertisers who want to fine-tune every aspect of their campaign. You can review the details on the help page below:
Get to know your Microsoft Advertising account modes
Our support teams are happy to discuss your account in more detail via phone, chat or email to provide review assistance, please see our support page to reach out!
I hope the information provided here will at least partly answer your question. If you have any additional questions please do not hesitate to reach out to our support. I have also sent you a private message asking for further details. You are more than welcome to respond to me so that I can begin the investigation on my end.
Kind regards,
Vahid | Microsoft Advertising Support Specialist | 800-518-5689