How should ROAS targets for different channels be determined according to best practice described in the material?

• A. By setting the same target for all channels.
• B. By assigning targets based on historical data or estimates.
• C. By guessing targets without data.
• D. By focusing only on revenue targets.

Answer: (B)

ROAS targets should be data-driven and channel-specific. Each channel has its own cost structure, conversion behavior, and potential for scale, so basing targets on historical performance and reasonable estimates makes them realistic and actionable. This approach guides bids, budget allocation, and optimization in a way that reflects what each channel can actually achieve, and you can adjust targets as new data arrives. Setting the same ROAS target for every channel ignores these differences and can lead to misallocation. Guessing without data is unreliable, and focusing only on revenue targets neglects profitability since ROAS links revenue directly to spend, ensuring efficiency rather than chasing raw revenue.