Get hold of app Users using Target ROAS bidding in Google Ads

By Shermy
App Users using Target ROAS bidding

Growing a business takes investment and returns on investment. These two are the key factors that decide whether the business is growing or not. In the same way, mobile applications also play a key role in bringing those returns on investment.

Google has made available of Target Return on Ad Spend bidding option, for those who make use of the Android app using firebase SDK conversion reports. But this option can be used only by those who opt for app campaigns in Google Ads.

Target Return on Ad Spend in Google Ads

This is a bid strategy for those who expect a specific Return on Ad-Spend from what they spend app campaigns.

The campaigns that expect target ROAS can fix a particular value in return for the amount they have already spent. This will allow you to choose the value of the amount to be returned for every dollar spend.

"When you set your target ROAS, you're telling Google Ads the average value you want back for every dollar spent. Keep in mind that your budget will be used to get as much value as possible at your set amount. So, if you set your average daily budget for $300, and your target ROAS is 20%, you're aiming for about $60 of value from your ads over the time window associated with your in-app event." - Google

Bidding in App Campaigns Target ROAS bidding

The daily budget of your campaign decides the trade between ROAS and your campaign scale. If you aim for higher ROAS then the potential installs will be narrowed but if you lower the ROAS, it will allow your campaign to have the potential up to the scale.

Now, you know how target ROAS works, "Simply enter your budget, the desired target ROAS, and Google will use your inputs to find new users that fit your app's performance goals." - Google

Acquire High Value App Users at Scale with Target ROAS bidding

Like said earlier the target ROAS amount is the value expected return on the money you spent. But also remember Google uses your budget to achieve in-app value within your target ROAS.

How to create a target ROAS for app campaigns in Google Ads?

  • Set Up an app campaign for installs
  • Go to the Bidding section and Select
  • Click on to the drop-down list saying "what do you want to focus on?"
  • Select in-app action value
  • Type in your expected target return on the column saying Ad spend percentage
  • "It is highly recommended to use a target cost per action (tCPA) campaign before using a target Return on Ad Spend (tROAS) campaign to uncover what a feasible initial target ROAS can be for your app." - Google
  • Simply click on launch and there it is, your target ROAS for your app campaign.

By creating the target ROAS for your app campaign in Google Ads, you can set the desired amount to return for the amount you spent.

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