How would you describe the target ROAS bidding strategy?

It determines that if a user’s search is likely to generate a conversion with high value, target ROAS will bid low on that search.
It uses historical and uploaded data to set the value of a conversion every time a user searches for products or services that are being advertised. Then it automatically adjusts bids for these ads to maximize return.
It determines that if a user’s search is likely to generate a conversion with low value, target ROAS will bid high on that search.
It analyzes and intelligently predicts the value of a potential conversion every time a user searches for products or services that are being advertised. Then it automatically adjusts bids for these searches to maximize return.

The correct answer is:

It analyzes and intelligently predicts the value of a potential conversion every time a user searches for products or services that are being advertised. Then it automatically adjusts bids for these searches to maximize return.

Sources: Google Ads Measurement Certification Assessment Course

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