Mobile Marketing

As you know, today the popularity of the application depends on a number of aspects, and the times when success is determined just by the number of downloads have remained in the distant past.

Below are several  most significant metrics that every publisher of mobile applications needs to know.

 

DAU MAU (Daily Active Users, Monthly Active Users)

 

This is the very basic metrics. They show you how many users are active ( and this means they actually using the app interacting with it) per certain amount of time - day, month, or year. This metric even though is important one might not be as powerful as are metrics below when it comes to marketing.

 

ARPU (Average Revenue per User)

 

The average revenue per user is the amount of financial gain per each active customer. Active user is described in most details in the explanation of the term involvement.

 

ARPUs can vary significantly depending on which category the application belongs to and the revenue model (paid downloads, advertising, in-app purchases, subscriptions, freemium), so any comparisons of different applications are irrelevant and only make sense when you compare to your competitors. In basics you take overall amount of users and divide your total revenue by that number.

 

Having determined the average revenue per user, you can use this indicator in calculations with two other metrics, which will allow you to make more accurate conclusions about the success of the application.

 

ARPU and CPLU (the cost of attracting a loyal user) make it possible to get to optimal budget for mobile marketing and calculate advertising costs. There is a proven rule: investments in marketing are considered justified if ARPU is larger than CPLU (ie, the amount of financial revenue that mobile customers bring is greater than the cost of attracting them).

 

The combination of ARPU and Retention is a reliable way to calculate LTV (revenue from one customer for the entire time during which he uses the application or otherwise Lifetime Value). For example if user brings you 1$ a month and stays your user ( Retention) for a year then you will have a LTV of 12$

 

CPI (COST PRICE per INSTALL)

 

CPI allows you to calculate the cost of getting a customer who installed your application after seeing the ads -  please note only paid users are in this category.

 

The CPI is best used in combination with ARPU to calculate the return on investment in the marketing area. Efforts regarding mobile marketing can be considered good if ARPU is larger than CPI. Investments in advertising mobile applications often do not justify themselves - for this reason, marketers need to carefully monitor these two metrics.

 

INVOLVEMENT

Unlike other metrics, for a parameter such as involvement, there is no standard definition or formula. Involvement can only be measured in the context of a specific application and marketing strategy. Therefore, involvement is most often understood as the frequent use of the application for a long time.

 

Actually, involvement is not a metric as such, but there are other, more tangible indicators that relate to this concept:

 

  1. The length of the session - shows how long the client normally spends within the application.

  2. The session interval - shows how often consumers launch the application during day/month/year.

  3. Application screen per session - how many screens of your application the user views in one session.

  4. The conversion rate for events - what percentage of users are performing a certain number of actions in the application.

  5. Interactions - what percentage of users receive notifications and push notifications and what percentage of users respond to them