The productivity of mobile app marketing depends directly on data collection and analysis. The analysis is the primary means of evaluating the effectiveness of an advertising campaign and optimizing it. But it is essential to analyze the number of users who visited the app and those who deleted it.
Main parameters of mobile app marketing. To start with, you should compare results across several metrics rather than analyze each one individually. Determining the number of installations is a great start to the analysis, but it should be considered in conjunction with the percentage of uninstalls.
In the second case, you should pay attention to the parameters that directly impact revenue and other business metrics.
Here are some basic parameters for analyzing app marketing:
1. CTR (click-through rate) is the number of users who have seen an ad and clicked on it. The number of clicks and the number of ad views are considered. A high CTR value indicates that the ad is quite attractive to users. Conversely, a low CTR means that your ads are not satisfying the target audience. If the CTR decreases while testing a new ad, it indicates that something needs to be changed.
2. CTI (click-to-interest) is the number of installs and follow-ups divided by the number of clicks on your ads. This metric reflects the effectiveness of creative solutions, the level of ASO, targeted ads, and its technical implementation, which affects the load time. A low CTI value can indicate an irrelevant audience, ineffective creatives, or slow loading times.
3. CPI (cost per install) is the cost of advertising placement divided by the number of application installations. It is also a pricing model in mobile marketing in which the cost of the order (or its effectiveness) depends on the price per installation of the mobile app. This figure indicates the success of digital products. When the rates are low, the marketing strategy must be changed to raise the ratings and increase the number of customers or installations.
4. CPA (cost per action) instead of CPI, CPA shows the cost per action. It does not necessarily mean conversion of new users. Transformation can mean buying a subscription, upgrading an account, or buying into a program. CPA is a performance metric that provides payment only when you attract quality users.
Average Order Value (AOV) and lifetime value (LTV) can be used to determine the CPA standard in your own business.
5. LTV (lifetime value) - a one-of-a-kind marketing metric that measures lifetime customer revenue. When this metric is calculated correctly, it becomes clear how much you need to allocate to attracting customers, which will help you not work to your detriment. This metric also reflects customer attitudes over time and provides valuable insights into how to retain customers.
Combined with average user revenue (ARPU), LTV is considered an ideal metric for evaluating the potential value of users. In a free app economy, this is the most critical measurement for analyzing the health of a business. It costs far more to attract a new customer than to retain one. For this reason, marketing professionals are constantly developing plans to maintain and motivate new purchases. LTV calculations provide an opportunity to predict a company's revenue growth based on customer purchases, their characteristic behavior, and the advertising campaign's specifics.
These five metrics, which we've broken down into groups, aren't all the metrics mobile marketers study and analyze. But don't make it harder on yourself by trying to track everything at once. Not all metrics and KPIs are directly relevant to your business. It would help if you experimented boldly to determine which ones work best for your app.