A luxury brand requires a $5 return for every $1 spent to remain profitable. Which bid strategy provides the specific efficiency guardrail needed for this financial goal?

Target ROAS is the strategy that provides that guardrail. A requirement of $5 back for every $1 spent is a 500% return on ad spend, and Target ROAS lets the advertiser state it directly: Google Ads then bids to win auctions predicted to hit that average return and declines those expected to fall short. It requires conversion values to be passed with each conversion, since return cannot be calculated from conversion counts alone, and enough conversion history for the model to forecast value reliably. Target ROAS is an average, not a floor on every sale — some conversions come in above target and some below, and the strategy aims at the average across the campaign. Set the target too high and the campaign restricts itself to a small pool of near-certain auctions, spending little; that is why the target should come from real margin data rather than ambition.