ROAS is an essential metric to gauge the success of a marketing campaign. ROAS makes it easier for them to gauge their campaigns' success by assessing their mobile applications' performance. It measures how much revenue a campaign is generating.
To know how well your mobile application strategy works, you should measure the ROAS. A good ROAS indicates the ad is booming, and a low ROAS indicates poor performance. A KPI (Key Performance Indicator) gives businesses a thorough insight into their online marketing.
This article will discuss how to improve your ROAS for subscription apps. But first, let us discuss what a ROA is and how it benefits your marketing campaigns.
What is ROAS?
ROAS stands for Return on ad spend. It is a metric gauge of how much revenue you generate on each dollar spent. In simpler terms, it is the cost of advertising against the profit from a specific promotion. Hence, it represents the success of your mobile app advertising.
The purpose of advertising is to boost revenue. If it brings in the desired numbers, only then is there a point in spending money on advertisement. So every business wants to know if they are bringing in the targeted numbers- if spending money on mobile app promotions is worthwhile. With ROAS, they can see how a campaign is performing and whether they need to continue it.
ROAS works on the principle of ROI (Return on Investment). It is measurable both ways- comprehensive or targeted. A business can view the performance of its entire marketing strategy or a single promotion. It can get a bird's eye view of the whole picture or track individual campaigns for granular tracking.
How to Improve ROAS for Subscription Apps?
Now you know how essential a good ROAS score is for your subscription apps. By improving your ROAS, you can increase the success rate of your campaigns.
Improving your ROAS entails many practices. You do not necessarily have to start from scratch; a few tweaks here and there, and you can get the perfect strategy that works for you. You should work on your plan if you have been tracking your advertisements for some time and have not seen your intended results.
Are you also looking to optimize ROAS for your marketing campaigns? Here are a few tips to improve ROAS for subscription apps. You can use these tips and see what works best for you.
Audience Targeting
The goal of advertising is not to get more audience but to get maximum conversion. Learn your demographic and target the audience that is relevant to services. When you narrow down your target audience depending on specific parameters like location, age, interest, etc., you can reach the people interested in your services. When you create a segment of users you want to target using app user segmentation model, it helps you optimize your advertisements.
This way, you only spend on potential customers and increase your chances of conversions. You can get more customers with hyper-local marketing techniques. It is the best way to optimize your ROAS.
Negative Keywords
Keywords are the best way to improve ROAS for subscription apps; if you use the right ones. Choosing the right keywords that are relevant to your business and have a good search volume is imperative.
Refrain from using general keywords with a large search volume. You can get lost on an extensive search result page. It is better to geo-target your keywords and use specific keywords. It makes your brand synonymous with that search results.
Similarly, you should know which keywords you do not want to associate with your name. Those phrases are negative keywords for you. Negative keywords limit the number of futile searches and show your advertisement only to interested users.
Target ROAS
Google lets you set a target ROAS. You can set target ROAS for a single promotion or the whole marketing strategy. Once you select a target, Google predicts a conversion rate for you and optimizes your bids based on your budget. This estimate takes into account your current concession values.
Add CTAs
Sometimes, very minute things affect your campaign strategy. For instance, the lack of a call to action (CTA) button on your page may affect your business more than you know. CTAs like signing up, making an in-app product or service purchase, or downloading something make it easy for your customers to perform a desired action. Ensure that your CTAs are well-defined and you put them in a conspicuous spot in your subscription apps.
Create Engaging Ads
You can acquire high-quality users and optimize ROAS by creating engaging and targeted ads. Work closely with your creative team and developers to create ads that appeal to your audience. Run tests to see which format gets the most engagement and brings in the most conversions.
Track Lifetime Revenue of Paid Acquisitions
What makes ROAS measurement different from other apps? The revenue generated from each user can be easily tracked & measured with subscription platforms, like Appflow.ai or revenuecat. So that you can track your return on advertisements closely to keep an eye on the performance of your campaigns.
Tracking helps you to determine if you should continue investing in a marketing campaign or pull it and cut your losses. It enables you to determine how a campaign adds to your revenue and if it is a success per the desired numbers. When you closely analyze data from your current drives, you can tweak them to optimize ROAS and create a better strategy for the future.
Here are the best practices of how appflow.ai's funnel analysis help improve Apple Search Ads and ROAS.
Track ROAS with Applow.ai—the Best Free Subscription Platform
It is better to use software to track and analyze the ROAS of your campaigns. Appflow.ai’s ROAs can show your subscription apps revenue from each channel >> campaign>> Ad group >> keyword/creative. Marketers can measure the effectiveness of their ads and check if the ROAS is improving easily. This information helps them make vital decisions on budget allocation.
👉 check Appflow.ai ROA doc
Pro tip: Appflow.ai's ROAS is available on Free plan (up to $10K MTR). Create a free account and start tracking ROAS today!
Improve ROAS for your subscription apps
ROAS is an essential KPI for your campaigns. It indicates the success of your marketing strategy. You can simultaneously analyze revenue from different channels or even keywords to measure your subscription revenue against the investment cost.
App Marketers can decide whether they should continue their venture or change their performance marketing strategy. ROAS helps determine what works and which elements are not desirable in your campaign. It will help you decide what changes to make.
How to Improve ROAS for Subscription Apps?
