Google Ads Update: Improve Revenue Earned from In-app ads by TROAS Bidding
Google Ads Update: Improve Revenue Earned from In-app ads by TROAS Bidding? Google Ads is constantly innovating and their latest update is no exception! They’ve just announced a new way to hit your revenue goals by targeting customers who click on in-app ads.
This is massive news for anyone who relies on ads within apps to generate income, so make sure you read on to find out what’s changed and how it can benefit you!
The new update is focused on Target Return on Ad Spend (TROAS). TROAS is a metric that allows you to see how much you’re spending on ads relative to how much revenue those ads are generating. For advertisers, this is especially useful if you’re running an App campaign and you’re looking to get a specific return on your investment.
What does Google Ads talk about in this update?
“This is an update to the Target Return on Ad Spend, or TROAS bid strategy, which is recommended if you are seeking a specific Return on Ad Spend from your App campaigns. If you have an Android app using Google Analytics for Firebase SDK conversion reporting, you can calculate TROAS by passing a dynamic revenue value from in-app events in Google Analytics to Google ads, in order to improve the average dollar value you want back for every dollar spent on user acquisition.”
To put it simply:
If you’re looking to get a specific return on your investment from your app campaigns, the Target Return on Ad Spend (TROAS) bid strategy is a good option. With TROAS, ad spending is based on how likely users are to click on in-app ads.
To make TROAS work for ad revenue, you need to pass a dynamic revenue value from in-app events in Google Analytics to Google Ads.
In other words, for campaigns focused on achieving a return on ad spending, you’ll want to set a target percentage as the value per spend. This will help you understand how much you need to spend to get a certain number of conversions. Accordingly, you can improve the average dollar value you want back for every dollar spent on user acquisition.
What should advertisers consider to set your TROAS?
When you set your target ROAS, you’re telling Google Ads how much average value you want back for every dollar spent. Remember that your budget will be used to get as much value as possible at your set amount. Depending on your campaign’s daily budget, there is usually a trade-off between your Target ROAS and campaign scale.
In other words, if you want a high ROAS, then your potential pool of customers/clients will be smaller.
“A higher ROAS target will narrow the pool of potential installs” – Google Ads disclosed
And if you’re willing to accept a lower ROAS, then your campaign will have more potential to reach a larger audience.
“A lower ROAS target will typically enable the campaign to have more potential to scale” – Google Ads
What are the requirements?
Firstly, if you want to use Target Return on Ad Spend for ad revenue, you will need to work with developers. Then, those developers will need to send all AdMob or third-party ad revenue data to Google Analytics.
This way, Google Analytics can bid on the revenue from those sources. Enabling third-party ad revenue in Google Analytics lets you import revenue from any monetization platform into Google Analytics so that TROAS bidding can take place.
In order to use this new targeting feature, you’ll need to take care of a few things first:
- Add your publisher data (i.e. ad revenue data) into your Google Analytics property.
- Link your Google Analytics property to your Google Ads account.
- Send your Google Analytics ad_impression event to Google Ads.
Once you’ve done that, you can set up a TROAS for the ad revenue App campaign and select the ‘ad_impression’ event to optimize toward ad revenue.
Google Ads provides several tools to help you manage your ad campaigns to get the desired result.
If you’re using Google Ads to drive installs of your app, you might want to consider using Target ROAS bidding options for your campaigns. This is an exciting new update from Google that allows businesses to target users based on their likelihood of engaging with an in-app ad.
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