Ask the Experts #7 – Refunds & ROAS

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YOU ASKED

What is the general best practice with refunds of purchases for Android platforms as it relates to ROAS calculations? Since they tend to be minor (less than 3% on average), we don’t take refunds into consideration. Mikka

Answer from our Expert:

Hello Mikka.

The first step is to discover the average percentage of purchases that result in a refund and then have a flexible data infrastructure to accommodate this. After that, it depends on your own expectations, campaign preferences and the scale of your UA investment. 

For example, at the lower end of UA budgets, refunds are actively not taken into account in both ROAS calculations and campaigns targeted at ad watchers. However, it is still important to keep track of the number of refunds to monitor its trend.

Given that ROAS is such an important metric when making business decisions, larger games or games which are fully released often take refunds into consideration up to 7 days prior to when the data is being examined. 

Viktor Baniar, Data & BI Engineer

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