Why this matters:
Most companies want to achieve at least 100% net ROAS - That's ROAS after taking away app store fees and tax
Most ad networks only target users based on gross ROAS. This is because the ad network is not aware of tax or fees that are paid post install
The ad network needs UA managers to send them gross ROAS in most cases
IAP is usually sent to MMPs gross
IAA is usually sent to MMPs net; Mediation platforms already withhold tax and their fees
How it works:
Ktrl ingests gross revenue and takes in IAP and IAA revenue separately
Then, Ktrl uses MMP published tax rates for all relevant platforms and countries
This lets Ktrl calculate gross and net pLTV for both IAP and IAA revenue and display this in the web app
Ktrl also lets UA managers enter gross or net ROAS targets, and does all the needed calculations to give the UA manager a gross short term optimisation target to directly feed to the ad network
The choice of setting a gross or net ROAS target must occur on a product level and you cannot have a mix of gross and net ROAS targets across campaigns
Example:
Goal: Achieve 110% Net ROAS at d180
Given the below data science predictions, a 110% net d180 ROAS would equate to a CPI of $64.80 / 110% = $58.91
If an ad network needs a gross d7 target, this would be $40 / $58.91= 67.9%
So in conclusion, a UA manager can input a net (or gross) ROAS target, and Ktrl will calculate the gross and net LTV, and provide a gross optimisation ROAS to send to the ad network
[1] $GROSS * 80% * 70%. Assume 20% VAT and 30% app store fee
[2] Assume fee + tax withheld by mediation platform and so gross = net
Editing tax rates:
Platform fees and tax rates are changeable from the settings
Navigate to General Settings > Gross and Net > Edit Settings
Enter a new tax rate and click save