What is a Troas campaign?
A Troas campaign, also known as a Target ROAS campaign, is a type of Smart Bidding strategy in Google Ads that helps you achieve your desired return on ad spend (ROAS). These campaigns use Google’s machine learning to automatically set your bids in real time, so you can get more conversions without spending more than you want.
Here’s how a Troas campaign works:
- You set a target ROAS, which is the amount of revenue you want to generate for every dollar you spend on ads.
- Google’s machine learning analyzes your historical data to determine how likely a conversion is for each search query.
- Based on this analysis, Google sets your bids in real time so that you’re more likely to show your ads to people who are likely to convert.
This means that you can get more conversions without spending more than you want. And because Google’s machine learning is constantly learning, your bids will continue to improve over time.
Importance of Troas in Google Ads campaigns
There are a few reasons why Troas campaigns are important in Google Ads campaigns:
- They can help you achieve your desired ROAS: Troas campaigns are designed to help you achieve your desired ROAS. By setting a target ROAS, you can tell Google how much revenue you want to generate for every dollar you spend on ads. Google’s machine learning will then adjust your bids in real time so that you’re more likely to show your ads to people who are likely to convert.
- They can help you improve your efficiency: Troas campaigns can help you improve your ad campaign efficiency by helping you spend your budget wisely. This is because the bidding strategy automatically adjusts your bids based on the likelihood of a conversion, so you’re less likely to waste money on clicks that don’t lead to conversions.
- They can help you save time: Troas campaigns can save you time by automatically setting your bids. This means that you don’t have to spend time manually adjusting your bids, which can free up your time to focus on other aspects of your business.
How Troas is Calculated
arget ROAS (Troas) is a bidding strategy in Google Ads that helps you achieve your desired return on ad spend (ROAS). Troas uses Google’s machine learning to automatically set your bids in real time, so you can get more conversions without spending more than you want.
Troas is calculated based on your target ROAS, the conversion values of your conversions, and your budget. Google’s machine learning will then adjust your bids in real time so that you’re more likely to show your ads to people who are likely to convert.
For example, if your target ROAS is 5x, and the value of a conversion is $100, then Google’s machine learning will try to set your bids so that you get 1 conversion for every $20 spent on ads.
It’s important to note that Troas is a target ROAS, not a guaranteed ROAS. This means that your actual ROAS may vary from your target ROAS depending on a number of factors, such as the competition for your keywords and the quality of your ads.
However, Troas can help you get closer to your target ROAS than you would be able to if you were manually bidding.
Here are some additional factors that can affect the calculation of Troas:
- The conversion values of your conversions: The higher the value of your conversions, the more likely Google’s machine learning is to set your bids higher.
- Your budget: If you have a small budget, Google’s machine learning may not be able to set your bids high enough to achieve your target ROAS.
- The competition for your keywords: If there is a lot of competition for your keywords, Google’s machine learning may have to set your bids higher in order to get your ads seen.
- The quality of your ads: The better the quality of your ads, the more likely Google’s machine learning is to set your bids higher.
Explanation of Troas formula
The Troas (Return on Ad Spend) formula is a metric used to measure the effectiveness and profitability of advertising campaigns in Google Ads. It helps advertisers determine the return they are generating on their ad spend. The formula for Troas is:
Troas = (Revenue / Ad Spend) * 100
Here’s a breakdown of the components in the Troas formula:
- Revenue: This refers to the total value or revenue generated as a result of the advertising campaign. It can represent sales, conversions, or any other desired actions that contribute to the campaign’s goals. Revenue is typically measured in the same currency as the ad spend.
- Ad Spend: This represents the total cost incurred by the advertiser for running the advertising campaign. It includes the costs associated with clicks, impressions, or other metrics depending on the bidding strategy used. Ad spend includes the budget allocated to the campaign during a specific period.
The Troas formula calculates the ratio of revenue to ad spend and multiplies it by 100 to express the result as a percentage. A Troas value greater than 100% indicates that the campaign is generating more revenue than the amount spent on ads, representing a positive return on investment. Conversely, a Troas value below 100% indicates a negative return on ad spend, where the revenue generated is less than the ad spend.
By using the Troas formula, advertisers can assess the profitability of their Google Ads campaigns, identify areas for optimization, and make data-driven decisions to improve their return on ad spend.
Components of tROAS Calculations
The Troas (Return on Ad Spend) calculation involves two main components: revenue and ad spend. Let’s take a closer look at each component:
The calculation of Troas is based on the following components:
Target ROAS: This is the amount of revenue you want to generate for every dollar you spend on ads.
Conversion values: This is the value of each conversion that you track.
Budget: This is the maximum amount of money you want to spend on your campaign each day.
Competition for your keywords: This is how many other advertisers are bidding on the same keywords as you.
Quality of your ads: This is how relevant and engaging your ads are to your target audience.
Revenue refers to the total value or income generated from the advertising campaign. It represents the financial return attributed to the campaign’s efforts. The specific revenue measurement can vary based on the goals of the campaign and the nature of the business. Some examples of revenue sources in the context of Google Ads campaigns include:
The value assigned to specific actions completed by users, such as form submissions, sign-ups, or downloads.
Return on Investment (ROI)
The overall financial return derived from the campaign, taking into account the revenue and associated costs.
The revenue component represents the monetary outcome directly tied to the campaign’s success in achieving its objectives.
Ad spend refers to the total cost incurred by the advertiser for running the advertising campaign. It includes all the expenses associated with the campaign, such as:
Cost per Click (CPC)
The amount paid for each click on the ad.
Cost per Impression (CPM): The cost for every 1,000 ad impressions.
Fixed Budget: The predetermined amount allocated to the campaign for a specific period.
Bidding Strategy Costs: Additional costs related to bidding strategies, such as automated bidding or bid adjustments.
Ad spend encompasses the financial investment made to promote the business or its products/services through Google Ads.
In the Troas calculation, the revenue is divided by the ad spend, and the result is usually multiplied by 100 to express the Troas as a percentage. This ratio helps determine the profitability and efficiency of the advertising campaign, providing insights into the return on investment for the ad spend.
Revenue or value generated
Revenue or value generated” refers to the total financial return or worth attributed to the advertising campaign. It represents the monetary outcome resulting from the campaign’s efforts and can take various forms depending on the specific goals and nature of the business.
Here are some of the benefits of using Troas Campaigns:
Troas can help you get more conversions by automatically setting your bids to target your desired ROAS. This means that you’re more likely to show your ads to people who are likely to convert, which can lead to more sales or leads.
Troas can help you improve your ad campaign efficiency by helping you spend your budget wisely. This is because the bidding strategy automatically adjusts your bids based on the likelihood of a conversion, so you’re less likely to waste money on clicks that don’t lead to conversions.
Less time spent on manual bidding
Troas can free up your time so you can focus on other aspects of your business. This is because the bidding strategy automatically sets your bids, so you don’t have to spend time manually adjusting them.
Better insights into your campaign performance
Troas can help you get better insights into your campaign performance by providing detailed reports on your conversions, ROAS, and other metrics. This information can help you see how your campaigns are performing and make necessary adjustments.
Setting Up Troas Campaigns for Google play apps in Google Ads
Setting up Troas campaigns for Google Play apps in Google Ads is a relatively straightforward process. Here are the steps involved:
- Go to your Google Ads account and click on the “Campaigns” tab.
- Click on the “New campaign” button and select “App promotion” as the campaign goal.
- Select “Target ROAS” as the bidding strategy.
- Enter your target ROAS and your budget.
- Select your app from the list of apps in your Google Play account.
- Select the conversion actions that you want to track.
- Click on the “Create” button to create your campaign.
- Once your campaign is created, Google’s machine learning will start to learn about your app and your target audience. This information will be used to set your bids in real time so that you can get more installs and in-app actions without spending more than you want.
Here are some additional things to keep in mind when setting up Troas campaigns for Google Play apps:
You need to have enough conversion data: Google’s machine learning needs enough conversion data to accurately calculate your Troas bids. If you don’t have enough conversion data, you may want to consider using a different bidding strategy.
You need to set a target ROAS: Your target ROAS is the amount of revenue you want to generate for every dollar you spend on ads. This is the goal that Google’s machine learning will try to achieve when setting your bids.
You need to select the right conversion actions: The conversion actions that you select will determine how Google’s machine learning measures the success of your campaign. For example, if you want to track installs, you would select the “Install” conversion action.
You need to set a budget: Your budget is the maximum amount of money you want to spend on your campaign each day. This information is used by Google’s machine learning to ensure that your bids don’t exceed your budget.
If you follow these steps, you’ll be well on your way to setting up Troas campaigns for Google Play apps in Google Ads.
Here are some additional tips for setting up Troas campaigns for Google Play apps:
Use conversion tracking: Conversion tracking is essential for setting up Troas campaigns. Conversion tracking allows you to track the conversions that your ads generate, so you can see how well your campaigns are performing.
Set a realistic target ROAS: Your target ROAS should be realistic and achievable. If you set your target ROAS too high, your ads may not be able to get enough impressions or clicks.
Start with a small budget: When you’re first setting up Troas campaigns, it’s a good idea to start with a small budget. This will allow you to test the bidding strategy and see how it works before you commit to a larger budget.
Monitor your results: It’s important to monitor your results so that you can see how Troas campaigns are performing. You can use the Google Ads reporting tools to track your installs, in-app actions, and other metrics.
Linking Admob with Google ads for traos campaign
Steps on how to link AdMob with Google Ads for Troas campaign:
Go to your AdMob account.
Click on Settings in the sidebar.
Click on the Linked services tab.
In the Manage account links section, click Google Ads.
Click the toggle to link to a Google Ads account.
Select the Google Ads account from the dropdown.
Click Link account.
Once you’ve linked your AdMob account with Google Ads, you can create Troas campaigns. Troas campaigns are a type of Google Ads campaign that uses machine learning to set your bids in real time so that you can get more conversions without spending more than you want.
Linking of Firebase and Google ads for troas campaigns
Go to your Firebase project.
Click on Settings in the sidebar.
Click on the Integrations tab.
In the Google Ads section, click Link account.
Sign in to your Google Ads account.
Select the Google Ads account that you want to link to your Firebase project.
Click Link account.
Once you’ve linked your Firebase project with Google Ads, you can use Firebase conversion tracking to track the conversions that your ads generate. Firebase conversion tracking is a powerful tool that can help you measure the success of your Troas campaigns.
Creat first open as conversion action in Google ads for traos campaign
Here are the steps on how to create first open as conversion action in Google Ads for Troas campaign:
Go to your Google Ads account.
Click on the Tools icon in the top right corner.
Click on the New conversion action button.
Select First open as the conversion type.
Enter a name for your conversion action.
Select the website or app that you want to track conversions for.
Click on the Create button.
Once you’ve created the conversion action, you need to add it to your Troas campaign. To do this, follow these steps:
Go to your Troas campaign.
Click on the Settings tab.
Scroll down to the Conversion actions section.
Click on the Add conversion action button.
Select the conversion action that you created in the previous step.
Click on the Add button.
Finally make ad impression as conversion action under first open and select in Google ads campaign to start tROAS based campaigns.
Troubleshooting common tracking issues in troas campaign
When tracking Troas (Return on Ad Spend) in Google Ads campaigns, you may encounter some common tracking issues. Here are a few troubleshooting steps to address these issues:
Ensure Proper Conversion Tracking Setup:
Check if the conversion tracking code is correctly implemented on your website. Verify that the tracking code is placed on the relevant pages where conversions occur.
Double-check that the conversion tracking code fires correctly upon completion of the desired conversion action (e.g., purchase confirmation page, form submission confirmation).
Verify Conversion Tag Configuration:
Confirm that the conversion tag is properly configured in Google Ads. Ensure that the tag is associated with the correct conversion action and that the assigned value accurately represents the revenue or value generated.
Review the attribution settings to ensure they align with your campaign goals and tracking requirements.
Validate Tracking Test Conversions:
Conduct test conversions on your website and verify if they are being tracked accurately in Google Ads. This can help identify any issues with the tracking implementation or settings.
Use Google Tag Assistant or other tracking validation tools to check for any errors or conflicts with the conversion tracking code.
Check Compatibility with Third-Party Platforms:
If you are using third-party tools or platforms for additional tracking or attribution, ensure that they are integrated correctly with Google Ads. Verify that the data from these platforms aligns with the Troas metrics in Google Ads.
Confirm that there are no conflicts or discrepancies between the tracking data from different platforms.
Review Cross-Domain Tracking:
If you have multiple domains or subdomains involved in your conversion process, ensure that cross-domain tracking is set up correctly. This allows for accurate tracking of conversions across different domains.
Check if referral exclusions are correctly configured to prevent traffic source discrepancies.
tROAS Optimization Strategies
roas (Return on Ad Spend) optimization strategies aim to improve the profitability and effectiveness of Google Ads campaigns by maximizing the revenue generated in relation to the ad spend. Here’s a brief explanation of Troas optimization strategies:
Keyword Optimization: Identify high-value keywords that drive conversions and adjust bids accordingly. Focus on keywords that generate a positive Troas and consider negative keywords to reduce wasted ad spend.
Ad Copy and Creative Optimization: Test and iterate different ad variations to find the most compelling messaging and creative elements. Align the ad copy with Troas goals, highlighting value propositions and calls to action that drive conversions.
Landing Page Optimization: Enhance landing page design, layout, and user experience to improve conversion rates. Conduct A/B testing to optimize landing page elements such as headlines, forms, visuals, and CTAs for better Troas performance.
Audience Targeting and Segmentation: Utilize audience insights to refine targeting and segmentation strategies. Tailor ad messaging and offers to specific audience segments based on their behavior, interests, demographics, or past interactions with the business.
Bid Management Strategies: Implement effective bid management techniques to optimize Troas. Consider automated bidding strategies that leverage machine learning algorithms to adjust bids in real-time based on historical performance and conversion data.
Conversion Tracking and Attribution: Ensure accurate conversion tracking implementation and attribution models. Understand the customer journey and assign appropriate values to different conversion actions, allowing for a more accurate assessment of Troas.
Ad Scheduling Optimization: Analyze the performance of campaigns during different times of the day or days of the week. Adjust ad scheduling to maximize exposure and conversions during peak periods while minimizing ad spend during less productive times.
Data Analysis and Insights: Regularly analyze Troas metrics, reports, and trends in Google Ads. Identify patterns, areas of improvement, and opportunities for optimization based on data-driven insights. Leverage data analysis to make informed decisions and optimize campaigns accordingly.
Remarketing Strategies: Implement remarketing campaigns to target and re-engage users who have previously shown interest in your business or products. Customize ad messaging and offers to align with their preferences, boosting Troas by leveraging existing brand familiarity.
Continuous Testing and Iteration: Implement a culture of continuous testing and iteration across all aspects of the campaign. Test different variables, such as ad copy, landing page elements, audience targeting, and bidding strategies. Use data-driven insights to refine and optimize for improved Troas over time.
Troas Benchmarking and Industry Standards for Android apps
Troas benchmarking is the process of comparing your app’s performance to other apps in the same industry. This can help you identify areas where your app can be improved, and it can also give you a benchmark to track your progress over time.
There are a number of industry standards for Android apps that can be used for Troas benchmarking. These standards include:
Apptentive: Apptentive provides a variety of metrics that can be used to benchmark your app, including engagement, retention, and monetization.
Firebase: Firebase also provides a variety of metrics that can be used to benchmark your app, including installs, active users, and in-app purchases.
In addition to these industry standards, you can also use your own data to benchmark your app. This data could include things like the number of sessions per user, the average time spent in the app, and the number of in-app purchases.
Once you have collected data from your app, you can use it to benchmark your app against other apps in the same industry. This will help you identify areas where your app can be improved, and it can also give you a benchmark to track your progress over time.
Here are some additional tips for Troas benchmarking:
Choose the right metrics: When you’re benchmarking your app, it’s important to choose the right metrics. The metrics you choose should be relevant to your app’s goals.
Compare your app to similar apps: When you’re benchmarking your app, it’s helpful to compare your app to similar apps in your industry. This will give you a better understanding of how your app is performing compared to other apps.
Troas optimization strategies focus on maximizing the return on ad spend by leveraging various tactics such as keyword optimization, ad copy testing, landing page optimization, audience targeting, and data analysis. By continually refining and optimizing campaigns, advertisers can improve Troas performance and achieve better profitability from their Google Ads campaigns.