When managing your campaigns, you might have already noticed a new feature on the ad set level – value optimization (or so called ROAS – Return on Ad Spend). As the title suggests, this feature promises to target people who are likely to purchase products of value that brings the highest Return on Ad Spend. Sounds promising, right? In Business Factory we decided to try out this new option. What results did achieved comparing to other types of optimization?
We tested value optimization for a client with a mobile app, whose goal is to have the highest value of repeated in-app purchases possible. At first, we chose ad sets with enough data about purchases and changed the optimization from oCPM (optimization on in-app purchases, payment for impressions, automatic bid) to value optimization. If you choose this option in Ads Manager, everything else is set up automatically, as you can see on the screen below – payment for impressions, autobid. The only thing you can affect is conversion window (either 1 or 7 days).
What were the results?
In most cases, the ROI was improved. On average, this indicator was 2.5 times higher. Only two ad sets had a drop in ROI, however it was not a dramatic change. In order to get rid of any other factor that could potentially affect the results, we decided to perform a split test. We created a brand new identical adset with wide targeting that differed only in the way of optimization. In the first case, we used standard optimization for App Installs / Impressions, which we typically set up for new adsets. The second adset used value optimization.The results were in both cases (iOS and Android) in favor of value optimization.
For iOS, new optimization brought 2.5 times higher ROI. The victory was tighter in case of Android, but we could still see 20 % higher ROI with value optimization. Overall, we were positively surprised by the results and will definitely try this optimization for ecommerce clients. And what about you? Have you tried this new feature? What results did you achieve? Do not hesitate to share your opinion in comments!