App Store Ads – getting started and optimising

Today, I want to talk about Shopify App Store ads. Over the past year, I’ve been running ads, which led to app installs, generated revenue, and provided a solid return on ad spend, or ROAS. ROAS is an essential metric; If it’s over 100%, your ads are turning a profit.

The real money comes in when stores start paying subscription fees; that’s when you see earnings over time. Determining whether you’re earning more than you’re spending on ads can be a bit complex. You might need to observe your earnings over an extended period to ensure they surpass your ad spend, pushing your ROAS above 100%.

ROAS increases over time as apps pay back the initial acquisition cost

Let’s jump into creating a new ad. We’re aiming to make a search ad, targeting keywords that users commonly search for in the Shopify App Store. When setting the budget, the system recommends relevant keywords. Parentheses indicate an exact match. These recommendations are based on your app’s existing search traffic.

After selecting keywords, you can save your choices. The platform also provides bid suggestions, which we’ll discuss more shortly. The recommended a bid depends on the amount of competition the the search term.

Visibility of Ads

Visibility is another crucial aspect, reflecting the frequency your ad is shown. Ideally, you don’t want to exceed a 70-80% visibility rate to avoid overspending. By bidding lower, you can still achieve significant visibility, say 50%, and save a lot of money that would otherwise be wasted on excessive visibility.

When considering your bid, you need to balance the cost of acquiring a new paying customer with the earnings you’ll recover. Knowing the lifetime value of your customers is key here. That’s where Fusionmetrics comes in with a robust model to calculate customer lifetime value. It does this factoring in the churn dynamic and average earnings per customer.

Fusionmetrics can predict customer lifetime value with a high degree of accuracy, even from minimal data. This allows you to determine how much you can afford to spend on customer acquisition while still ensuring profitability.

Fusionmetrics’ advanced model calculating customer lifetime value

With Fusionmetrics, you can make informed decisions on your ad spend to maximise the potential for earnings.

So if you are running ads or a planning to, you make sure to get access to Fusionmetrics now.