The Tower will throw bombs, just like the Bomber, to any enemy cards in its defensive radius. However, it cannot attack air units. The thrown bombs have an area damage effect, perfect against swarming units with relatively low health such as Skeleton Army and Barbarians.
It is very effective against a swarm of low hitpoint ground troops, such as the Skeleton Army.
It is also very useful against cycle decks as many of the cycle cards has low health which the Bomb Tower makes short work of.
The Bomb Tower can be effectively placed in the radius of the player's Tower, as it will attract most enemy troops and any opposing offensive troops attacking the Bomb Tower will be targeted by the defending Princess Tower.
Keep in mind that the Bomb Tower cannot attack air units. This means that most air troops can take it out without taking damage.
The Bomb Tower is a very effective counter against the Hog Rider + Barbarians push as it will attract the Hog Rider, kill the Barbarians with its splash damage, and delay the Hog Rider as it has strong hitpoints.
As with any defense, it is not wise to play the Bomb Tower in the beginning of the match or to play it proactively. This will allow the pig push technique to ignore the Bomb Tower, or, if a Golem is deployed in the back, the lifetime on the Bomb Tower will have depleted so that the Golem can kill it with one swing, barring the levels of the Tower and the Golem.
The Bomb Tower can counter Elite Barbarians due to its splash damage and high health, but this will leave the Bomb Tower either destroyed or heavily damaged.
The Bomb Tower's high health and moderate damage per second means that if timed correctly, the Bomb Tower can take out a Royal Giant.
The Bomb Tower is also effective at taking out alot of waves from spawners, the Bomb Tower can provide cover while you set up for a counter push.
Bomb Towers are also capable of distracting and/or destroying troops that have medium health, including the Mini P.E.K.K.A., Knight, and Valkyrie, due to its high damage per second and fast hit speed. It can also take out glass cannons, such as the Witch, Musketeer, and the Wizard.
The Bomb Tower was added with Clash Royale's soft launch on 4/1/16.
On 3/5/16, the May 2016 Update decreased the Bomb Tower's lifetime to 40 sec (from 60 sec). This update also fixed the "range bug" and decreased the Bomb Tower's range to 6 (from 6.5) but its effective range is unchanged.
Though it houses a Bomber, the Bomb Tower has a faster hit speed (1.6 vs 1.9) than the Bomber.
Before an update where the Bomber's damage was increased, they used to do the same damage when they were at an equal level. Due to the Bomb Tower being a Rare Card, it had less damage than the Bomber even before the update since its equivalent levels were lower than those of the Bomber.
Though the Bomber on top of the tower is seemingly perfectly capable of throwing its bombs at air units, it does not do so.