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Setting ROAS Targets

Written by Kevin Jabbour

Summary

  • Where: ROAS targets are set under General Settings >> ROAS Targets

  • What: ROAS targets let UA managers determine

    • Days-since-install ("DSI") and % return (e.g. 100%) a campaign needs to achieve.

    • Whether a campaign is targeting a blended or paid return

    • Whether a campaign is targeting a net or gross return

    • What short-term, optimisation DSI is required to send the ad network

  • How:

    • Navigate to settings

    • Either change the default ROAS target or add an override for a specific segment

  • So what:

    • Ktrl predicts a LTV curve across multiple DSIs. The ROAS Target determines the CPI that a campaign can cost, in order to achieve the ROAS target. If d365 ROAS target is 100%, and d365 pLTV is $200, then CPI can be $200

    • Given a ROAS Target and pLTV curve, Ktrl calculates the short term optimisation target a UA manager must give an ad network. For example in the above example, if pLTV at d7 was $10, given CPI can be $200, then d7 Optimisation ROAS will be $10/$200 = 5%

Setting a ROAS target


There are two types of Targets:

  1. Default ROAS

    1. Acts as the overarching target applied to all segments (country, platform, network, campaign)

    2. Serves as a fallback when no override is set

    3. A product can only have 1 default target

    4. The default target specifies whether ALL targets are on a Net or Gross basis - see the docs on Net and Gross to understand more

  2. Segment Overrides

    1. Allow you to apply more specific targets for a segment or groups of segments, that overwrite the default ROAS target

There are three types of overrides:

  1. ROAS Type: Choose between incremental blended ROAS, full blended ROAS, or paid ROAS

  2. Target ROAS: Change the Target percentage or DSI

  3. Optimisation DSI: Change the short term optimisation DSI used to calculate the recommended signal for ad network

    • Typically set to D7 or D28

Granularity of Overrides

  • Overrides target specific segments, as defined by a segments country, platform, network, or campaign

  • At least one level of granularity must be specified for the override to apply

Default ROAS

How It Works

  1. Navigate to Settings

    • Go to: General Settings → ROAS Targets → Default → Edit Target

  2. Choose ROAS Type

    • Paid: ROAS calculated using paid campaign revenue only

    • Incremental Blended: ROAS calculated using both paid and incremental organic revenue

      • Incremental organic revenue only includes the contribution of marginal organic users who install due to increased UA efforts

      • See the Organic Allocation documentation for details

    • Full Blended: ROAS calculated using both paid and all organic revenue

      • Full organic revenue includes both the contribution of marginal organic users who install due to increased UA efforts, and the baseline, or "true organic" users, who install regardless how much or little is spent on UA

      • See the Organic Allocation documentation for details

  3. Select Revenue Type

    • Gross: Includes all revenue before fees

    • Net: Includes only revenue after deductions (platform fees, taxes, refunds, etc.)

  4. Set the ROAS Targets

    • Target ROAS %: The payback ROAS % future cohort forecasts should optimise toward

    • Target DSI: The payback window (in days since install) within which cohorts must achieve the target ROAS %

  5. Set the Optimisation DSI:

    1. The time window ad networks use as input when optimising ROAS (commonly D7 or D28)

  6. Save Changes

    • Updates save immediately in the product config

    • Changes will only apply to forecasts after the next scenario rerun

Overriding ROAS Type

Why It Matters

  • It is possible for paid traffic to stimulate organics which then generate seemingly free "organic" revenue

  • UA managers want to exploit this effect, by increasing spend on networks that result in more organics

  • This can be done by targeting blended ROAS

  • See the Organic Allocation documentation for details

How It Works

  1. Navigate to Settings

    • Go to: General Settings → ROAS Targets → Overrides → Add Override → ROAS Type

  2. Choose a ROAS Type

    • Blended: Combines paid and organic revenue into ROAS

    • Paid: Uses only paid campaign revenue for ROAS

  3. Apply the Override

    • Select the platform(s) the override should apply to

Overriding Target ROAS

Why It Matters

  • Ensures targets reflect market differences (e.g. faster payback periods, higher-quality users)

  • Supports efficient scaling by tailoring targets to the performance profile of each segment

How It Works

  1. Navigate to Settings

    • Go to: General Settings → ROAS Targets → Overrides → Add Override → Target ROAS

  2. Set the Target

    • Define the ROAS % and the payback horizon (Dx)

    • Example: “120% by D180” means the segment should reach 120% ROAS within 180 days of install

  3. Choose Granularity

    • Apply the override at one or more levels:

      • Country

      • Platform

      • Network

      • Campaign

      • Or a combination (e.g. US + iOS + Facebook)

    • At least one level of granularity must be selected

Overriding Optimisation DSI

Why It Matters

  • Ad networks cannot optimise directly toward long-term ROAS

  • So they rely on short-term targets as input

  • Different campaigns may have unique optimisation DSI

    • e.g. AppLovin D7 vs D28 optimised campaigns

How It Works

  1. Set the Optimisation DSI Override

    • Go to: General Settings → ROAS Targets → Overrides → Add Override → Optimisation DSI

    • Enter the optimisation time window (e.g. D7, D28)

  2. Choose Granularity

    • Apply the override at one or more levels:

      • Network

      • Campaign

      • Network + Campaign combination

    • At least one level of granularity must be specified

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