DHgames improves LTV by 100% with tROAS for ad revenue

Tags Google Ads Google AdMob

DHgames is a top publisher based in Chengdu, China with hit titles including role playing game (RPG), “Idle Hero”.

The challenge

DHgames relied exclusively on in-app purchases (IAP) to generate revenue in their games but decided to make a change in their new title, "Animal Restaurant". In 2019, the game launched with a hybrid monetization model of IAP and in-app ads (IAA) and the team adopted Google AdMob as their mediation platform. By late 2020, DHgames was looking to unlock additional ad revenue while growing their game user base for "Animal Restaurant".

The approach

In order to acquire more players who are more likely to engage with in-app ads, DHgames partnered with the Google team to test the impact of Target Return on Ad Spend (tROAS) for ad revenue bid strategy in App campaigns. To do so, the game developer set up an A/B test to compare the performance of Target Return on Ad Spend (tROAS) versus Target Cost Per Acquisition (tCPA) bid strategy towards ad revenue optimization.

The results

At the conclusion of the A/B test,  tROAS for ad revenue delivered a 12% higher ROAS, a 5% higher Day 1 retention rate and a 100% increase in Day 7 user Lifetime Value (LTV) for acquired users.

“DHgames started testing on "Animal Restaurant" in 2020 Q4 as a pilot advertiser, and we were convinced by the result that this product can help us to optimize ads revenue. We had our second test in Q1 2021, and the positive performance was consistent and uplifted the title’s LTV. We will scale spending on tROAS for ad revenue to keep on optimizing the title’s performance.”

Tao Fu, CMO, DHgames



Chengdu, China

The Goals
  • Unlock more ad revenue
  • Acquire high value users with better retention and lifetime value
  • Improve return on ad spend (ROAS)
The Results
  • 100% increase in Day 7 LTV for acquired users
  • 12% higher ROAS
  • 5% higher Day 1 retention rate