To maximize the effectiveness of our user acquisition campaigns, it’s crucial to understand the bid types and ROAS (Return on Ad Spend) optimizer offered by ironSource. These powerful tools can help you achieve outstanding results and ensure the success of your app. Let’s dive into them and learn how to harness their potential.
Bid Types:
At the outset of your campaigns, ironSource equips you with two primary bid types:
- CPI (Cost Per Install): The default option allows you to set a fixed CPI for your campaigns. This bid type serves as a fundamental starting point.
- tCPI (Target Cost Per Install): With tCPI, you have the flexibility to specify the amount you’d like to spend whenever a user installs your app. This bid type can be set at the app, geo, or campaign level, offering precise control over your campaign’s budget. You can establish a default tCPI bid for a campaign or tailor it to individual apps and countries.
The key difference between these two lies in control and optimization. While CPI is the real cost you pay for installs, tCPI is a predefined threshold you aim to stay within. Campaigns using tCPI will try to secure users at or below the target cost, and if the actual CPI exceeds this target, the campaign might limit or reduce ad delivery to maintain cost efficiency.
Post these, we have ROAS optimizer. While tCPI is good when starting new campaigns in order to get a baseline of performance, ROAS is best to improve/maximize performance. However, to activate the ROAS optimizer, you need to liaise with your account manager, who will configure it according to your campaign objectives.
Once it is unlocked, you can request access from the account manager & they can enable the option to control changes on the ROAS optimizer. Once done, you can find a new section “Optimizer” in the campaign-level settings and you can apply the required changes.
- ROAS Optimizer: The ROAS (Return on Ad Spend) optimizer can be a game-changer in optimizing the performance of your user acquisition campaigns. Here’s how it works:
The ROAS optimizer supports three different ROAS goals based on the app’s revenue metrics and LTV model:
- IAP (In-App Purchases): Optimize toward a D7 ROAS goal if your app relies primarily on in-app purchases.
- Ad Revenue: If your monetization strategy is primarily ad-based, utilize a D1 or D3 ROAS goal for Unity LevelPlay.
- IAP + Ad Revenue (Combo): For apps combining in-app purchases and ad revenue, consider optimizing toward a D3 or D7 ROAS goal.
Eligibility Criteria to Unlock ROAS Optimizer:
Before diving into ROAS optimization, ensure you meet the following criteria:
- Ad Revenue Optimizer:
- Over 90% of your revenue should come from ads.
- Your campaign must be on ironSource mediation.
- The campaign should have been live for at least 9/11 days (7 matured days).
- Maintain a minimum daily cap of $300.
- Avoid delivery limitations, such as black or white lists.
- Your app should have more than 50 installs in the past month in the Bundle/Geo.
- IAP Optimizer:
- Over 90% of your revenue should stem from in-app purchases.
- You must share PIE (Post-Install Event) data through your MMP.
- The campaign should have been live for at least 15 days (7 matured days, i.e., D7).
- Maintain a minimum daily cap of $500.
- Avoid delivery limitations.
- Your app should have more than 50 installs in the past 2 months in the geo(or groups of geos).
- Have 10 apps with a purchase rate of over 1% in the geo(or groups of geos).
- Include 5 apps with a purchase rate of over 2%, encompassing those with over 1%, in the geo(or groups of geos).
- IAP + Ad Revenue (Combo) Optimizer:
- The IAP revenue ratio should fall between 10% to 90%.
- Your campaign should be on ironSource mediation and share PIE (post-install events) data.
- The campaign should have been live for at least 15 days (7 days of mature data, i.e., D3/D7).
- Maintain a minimum daily budget of $500.
- Avoid delivery limitations.
- Your app should have more than 50 installs in the past month in the Bundle/Geo Level.
- Have 10 apps with a purchase rate of over 1% in the Bundle Geo Level.
- Include 5 apps with a purchase rate of over 2%, encompassing those with over 1%, in the Bundle Geo Level.
Pro Tips:
- Update Your Goal: Aim to adjust your ROAS goal within 10% of your current performance to strike a balance between scale and quality. For instance, if your current ROAS stands at 20%, consider setting a new goal within the range of 18% to 22%.
- Optimize View: Depending on your ROAS optimization target (D1, D3, or D7), tailor your analysis accordingly. For D1 ROAS, focus on the Daily view for precise insights, while for D3 and D7 optimizations, the weekly view provides a higher-level overview of campaign performance.
ROAS Optimizer Best Practices:
To leverage the ROAS optimizer to its fullest potential, here are three key strategies:
- Ensure the Bidding Strategy Aligns with Your Objectives: By targeting slightly reduced ROAS, you gain the flexibility to bid more aggressively for CPI, securing premium ad placement within the ad network’s waterfall. This strategic move not only expands your user base but also elevates your total profitability.
- Factor in Organic Uplift: When calculating your LTV (Lifetime Value), consider the contribution of organic users resulting from ironSource campaigns too. Including organic uplift ensures that your ROAS (Return on Ad Spend) goal is grounded in a comprehensive dataset, enhancing the precision of your analysis.
This helps in establishing realistic ROAS goals tailored to your app’s distinctive revenue patterns. Consistently revisiting and fine-tuning your ROAS objectives using this will help steer your campaigns toward sustained success.
- Regular Goal Updates: Numerous factors influence LTV (Lifetime Value), including app features, new ad units, competition, and seasonality. To adapt effectively, calculate your app’s ARPU curve and LTV every two weeks, adjusting your ROAS goal accordingly.
Incorporating these bid types and ROAS optimization strategies into your campaigns will improve your user acquisition efforts, delivering results while maximizing profitability.
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