Find out if your Google Ads are generating real profits

Google Ads captures active demand (the user is already searching for your product), so conversion rates are typically higher than on social platforms. A ROI of 50–150% is achievable in well-optimised Shopping campaigns with margins of 35–50%. In highly competitive niches, elevated CPCs can significantly compress ROI.

Google Shopping shows the product with image, price and store directly in the results. It has higher conversion rates for specific product searches. Google Search Ads are more flexible for capturing informational queries. In ecommerce, Shopping usually delivers better ROI for products with established demand.

Target ROAS is an automated bidding strategy where Google optimises bids to hit the ROAS you specify. To configure it correctly, first calculate your minimum profitable ROAS (100 ÷ gross margin) and set a target 20–30% above that for a safety buffer. You need at least 30–50 conversions per month for the algorithm to optimise well.

Google also has attribution models that can over-attribute conversions (especially with data-driven attribution or last-click). However, the active search intent means the gap between reported ROAS and actual sales is generally smaller than with Meta.

The same as for any platform: total investment, average CPC, your store's conversion rate, average order value and real gross margin. In Google you can find the average CPC in the campaigns report. The conversion rate should come from Google Analytics or your ecommerce platform.