Increasing D7 ROAS with a combined Value-Based Optimization strategy

Yubo raised Day 7 return on ad spend from 20% in Q4 2025 to 26% in Q1 2026 while keeping TikTok media investment steady by combining App Event Optimization and Value-Based Optimization in a more granular setup.
Yubo is a social discovery app that enables young adults to meet new people and connect through live streaming and group chats. With a business model combining premium subscriptions and in-app purchases, acquiring users who generate long-term value is central to the brand’s growth strategy. Yubo continued to scale its presence on TikTok, the brand set a new D7 ROAS target of 25–30%. The goal was to increase D7 Return on Ad Spend to meet this new target while maintaining the same level of TikTok media investment. Performance also differed across audience segments, creating an opportunity to adopt a more granular optimization strategy.
Yubo worked with TikTok to build a more granular acquisition strategy designed around the value of different audiences and markets. Campaigns were structured by country, with the US as the primary market, and ad groups were segmented by gender to reflect differences in performance and ROAS objectives. The strategy focused on audiences aged 18–34. Yubo implemented a dual strategy combining App Event Optimization (AEO) and Value-Based Optimization (VBO), alongside additional VBO target ROAS campaigns on iOS. The brand used different bidding and optimization approaches, including Lowest Cost and target ROAS, to optimize toward higher-value users while maintaining its overall level of TikTok media investment. In Q1 2026, Yubo further expanded its Value-Based Optimization strategy by launching VBO with a custom Day 0 target ROAS, alongside its existing AEO and Highest Value campaigns. This diversified setup gave the team greater flexibility to optimize performance across markets and audience segments.
The strategy helped Yubo increase its D7 ROAS from 20% in Q4 2025 to 26% in Q1 2026, representing a 6-point uplift, while maintaining the same level of TikTok media investment, according to internal TikTok performance data. Yubo also increased its use of Value-Based Optimization campaigns by 50%, reinforcing VBO as a key component of its app growth strategy on TikTok. Building on these results, the brand plans to leverage its SDK implementation to further develop its value optimization strategy, including Day 7 target ROAS campaigns.
The biggest takeaway for our team was that a one-size-fits-all approach caps your upside. Building a granular framework—tailored by market dynamics and audience behavior—gave us the agility to capture higher-value users in key regions like the US while maintaining our overall footprint on TikTok.
Yubo combined App Event Optimization and Value-Based Optimization, then added VBO target ROAS campaigns on iOS. Its setup also used Lowest Cost and target ROAS bidding to focus on higher-value audiences while keeping media investment steady.
Campaigns were structured by country, with the US as the primary market, and ad groups were split by gender to reflect different performance and return on ad spend goals. The strategy focused on audiences aged 18–34.
Yubo improved Day 7 return on ad spend from 20% in Q4 2025 to 26% in Q1 2026, a 6-point uplift, while maintaining the same level of TikTok media investment. It also expanded its use of Value-Based Optimization campaigns by 50%.