Why You Need Time-Adjusted ROAS in Google Ads and How to Set It Up

Google Ads is a powerful platform for tracking the performance of your campaigns, but it comes with one major limitation: it attributes conversions to the first click, regardless of when the actual conversion occurs. This approach, while useful for understanding the customer journey, can skew your understanding of recent campaign performance. That’s where Time-Adjusted ROAS (Return on Ad Spend) comes in.

Time-Adjusted ROAS provides a more immediate view of your campaign’s performance by showing you the sales or conversions based on when they happened, not when the initial click occurred. With this adjustment, you can make more accurate decisions about your campaigns, budgets, and optimization strategies.

The Problem with Google’s Default ROAS

Google Ads calculates ROAS as the total conversion value (based on first click) divided by the cost of the campaign. For instance, if someone clicks your ad today but doesn’t make a purchase until 30 days later, that conversion will be attributed to today’s ROAS. While this helps you understand the impact of your initial outreach, it can be misleading for evaluating recent performance.

Here’s why:

• Delayed attribution skews data: If you’re running a sale or seasonal campaign, you want to see the results of your efforts now, not the impact of clicks that happened weeks ago.
• Inaccurate budget adjustments: You might increase or decrease your budget based on data that doesn’t reflect the current reality.
• Inconsistent performance reviews: Campaigns that appear to underperform today might actually drive revenue tomorrow, but Google’s ROAS won’t make that clear.

By focusing only on Google’s standard ROAS metric, you risk making decisions based on outdated or incomplete data.

What Time-Adjusted ROAS Tells You

Time-Adjusted ROAS flips the script. Instead of attributing revenue to the click date, it attributes revenue to the date of the actual conversion. This gives you real-time insights into:

• Which campaigns are driving revenue today
• The immediate effectiveness of new strategies
• How recent changes to ad spend correlate to actual revenue impact

This perspective enables you to make smarter, more informed decisions about campaign performance and spend allocation.

How to Set Up Time-Adjusted ROAS in Google Ads

Thankfully, creating a Time-Adjusted ROAS column in Google Ads is straightforward. By using the “Custom Columns” feature, you can configure a metric that uses Conversion Value (by conversion time) divided by the cost of your campaigns. Follow these steps:

1. Log in to Your Google Ads Account

Head to your Google Ads account and go to the Campaigns or Ad Groups view—whichever level you want to analyze.

2. Navigate to Columns

Click the Columns dropdown menu at the top of the table. Then, click Modify Columns.

3. Add a Custom Column

Scroll down to find Custom Columns and select Create a Custom Column.

4. Configure the Formula

Set up your custom column with the following formula:

• Metric: Conversion value (by conversion time) ÷ Cost
• Name the column something clear and descriptive, like “Time-Adjusted ROAS.”

You can find Conversion Value (by conversion time) under the “Conversions” section when selecting metrics for the formula.

5. Save and Apply

Once you’ve built the column, save it and apply it to your view. The new column will now show up alongside other performance metrics.

Using Time-Adjusted ROAS to Make Better Decisions

With your new Time-Adjusted ROAS metric in place, here’s how you can use it to enhance your decision-making:

1. Monitor Real-Time Performance
   Use this metric to see how your campaigns are performing right now. This is especially valuable during sales, promotions, or new product launches, where immediate revenue impact is critical.
2. Compare Standard and Time-Adjusted ROAS
   By placing these columns side by side, you can identify discrepancies and better understand the lag between clicks and conversions. If your standard ROAS is high but Time-Adjusted ROAS is low, it may signal delayed revenue.
3. Optimize Campaign Budgets
   Allocate more budget to campaigns with a strong Time-Adjusted ROAS. These campaigns are driving immediate results and can boost overall revenue in the short term.
4. Evaluate Campaign Lifecycles
   Time-Adjusted ROAS helps you identify which campaigns are past their peak and which are gaining momentum, allowing you to better plan your future strategy.
5. Improve Reporting Accuracy
   For internal or client reporting, Time-Adjusted ROAS gives a clearer picture of how ad spend translates to revenue in the present. This makes it easier to justify budget decisions and demonstrate success.

Final Thoughts

While Google Ads’ default ROAS metric is valuable, it’s not always the best indicator of immediate campaign performance. Setting up a Time-Adjusted ROAS column allows you to track revenue based on when it actually occurs, providing a more accurate and actionable view of your campaigns.

By leveraging this metric, you can make smarter decisions about budget allocation, campaign optimization, and overall strategy—ensuring you’re not just relying on outdated data.