Which setting in a Smart Shopping campaign helps understand the value of acquiring new customers?

In a Smart Shopping campaign, the setting that aids in understanding the value of acquiring new customers is "Target return on ad spend" (tROAS). This setting allows advertisers to specify the desired return on investment based on the revenue generated from ads compared to the amount spent on them. By setting a tROAS, marketers can effectively evaluate how much they are earning from new customer acquisitions, as this metric focuses on the profitability and revenue generation from new customers versus the costs involved in attracting them. This nuanced approach enables businesses to optimize their ad spend to focus more on customer acquisition strategies while also measuring the financial impact of those efforts.

On the other hand, enhanced cost-per-click (eCPC) mainly adjusts bids to maximize conversions but doesn’t specifically address the profitability from new customer acquisition. Click-through rate (CTR) is a measure of how effectively an ad attracts clicks but does not provide insights on financial returns or customer value. Optimize for store visits is beneficial for driving foot traffic but may not correlate directly with understanding customer acquisition profitability in the digital context.