Maximize Ad Revenue with tROAS for App Campaigns: A Step-by-Step Guide
Target Return on Ad Spend (tROAS) is a powerful tool for app developers and marketers looking to optimize their ad spend based on revenue and return on investment (ROI). This bidding option is available for those who use the Android app using Firebase SDK conversion reports, and can be used for app campaigns in Google Ads.
tROAS allows businesses to set a specific target return on ad spend (ROAS) for their campaigns, and Google Ads uses machine learning to optimize bids and budget allocation in order to achieve that target. This allows businesses to measure and control the performance of their ad spend, taking into account both conversions and revenue generated by the campaign.
To create a tROAS campaign in Google Ads, businesses first set a target ROAS in the campaign settings. This target represents the desired ratio of revenue to ad spend that they want to achieve. Once the target is set, the system will adjust bids in real-time to improve performance and increase the chances of reaching the ROAS target.
It is important to note that the daily budget of the campaign can affect the trade-off between ROAS and campaign scale. A higher ROAS target will narrow the pool of potential installs, whereas a lower ROAS target will enable the campaign to have more potential to scale.
Additionally, it is recommended to use a target cost per action (tCPA) campaign before using a tROAS campaign to understand what a feasible initial target ROAS can be for your app.
Overall, tROAS is a powerful tool for app developers and marketers looking to optimize their ad spend based on revenue and return on investment. It allows them to set a specific target return on ad spend and use machine learning to optimize bids and budget allocation in order to achieve that target, allowing them to better measure and control the performance of their ad spend.
Step-by-Step Guide to tROAS For Apps in Google Ads
To implement tROAS for ad revenue in your App campaigns, the following steps can be taken:
- Add your publisher data (i.e. ad revenue data) into your Google Analytics property. For AdMob data, link AdMob to Firebase. For other ad monetization platforms, measure ad revenue through Firebase.
- Link your Google Analytics property to Google Ads and import Analytics conversions into Google Ads.
- Send your Google Analytics ad_impression event to Google Ads and mark it as a conversion event in the Google Analytics events panel.
- Set up your tROAS for ad revenue App campaign in Google Ads and select the ‘ad_impression’ event to optimize towards ad revenue.
By sending all AdMob or third-party ad revenue data to Google Analytics for bidding, it allows you to calculate tROAS by passing a dynamic revenue value from in-app events in Google Analytics to Google Ads, thus allowing you to improve the average dollar value you want back for every dollar spent on user acquisition. By focusing on acquiring players who engage with ads at scale and dynamically pay depending on how likely a player is to engage with in-app ads will allow you to directly improve the revenue earned from ads shown in your app.
It’s important to check out the best practices for App campaigns and bidding types within App campaigns, to help manage and guide the performance of your App campaigns.
