Measurements for App User Acquisition Campaign
As we make our way through a new decade, the App Marketers that will be the most successful are those that focus on User Acquisition (UA). App marketing is a complex and ever-changing landscape, but at its core, UA is about acquiring new app users in the most efficient way possible.
There are a number of ways to measure the success of your UA campaigns, but three key metrics we would like to highlight are:
1. Cost per Install (CPI)
2. Return on Investment (ROI)
3. Lifetime Value (LTV)
1. Cost Per Install (CPI)
CPI is one of the most basic metrics and is simply the cost of your UA campaign divided by the number of installs that it generates. Cost per install is beneficial for understanding how much it costs you to acquire a new user.
To calculate CPI, you simply take your total UA spending and divide it by the number of installs that were generated from that spend. For example, if you spent $5,000 on a UA campaign and it generated 1,000 installs, your CPI would be $5.
This number can be useful in comparing the efficiency of different UA channels, but on its own, it doesn’t give you the whole picture.
To get a better understanding of your CPI, you also need to look at: Return on Investment (ROI)
2. Return on Investment (ROI)
ROI is a measure of how much revenue your UA campaign generates relative to the amount that you spent on it. To calculate ROI, you simply take the total revenue generated by your UA campaign and divide it by the total cost of the campaign.
For example, if you spend $100 on a UA campaign and it generates $500 in revenue, your ROI would be 5x.
Return on Investment is one of the best indicators of the long-term success of your UA campaign. If your ROI is positive, it means that your campaign is not only generating installs but also driving Revenue.
3. Lifetime Value (LTV)
LTV is a measure of how much revenue a single user generates over the course of their lifetime with your app. To calculate LTV, you need to take the total revenue generated by your app and divide it by the number of users.
For example, if your app generates $10,000 in revenue and you have 1000 users, your LTV would be $10.
Lifetime Value is an important metric to focus on because it allows you to see how much revenue each user is generating and compare it to your CPI. If your LTV is higher than your CPI, it means that your UA campaign is not only generating installs, but also users who are valuable to your app in the long run.
Conclusion
App marketing is a complex landscape, but User Acquisition is at the core of it. By focusing on CPI, ROI, and LTV, you can make sure that your UA campaigns are efficient and generate long-term value for your app.
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About Appiness
Appiness is a global mobile performance solution for app marketing and monetisation, based in Amsterdam, the Netherlands. We work with several models like App download (CPI), Registration (CPR), Sales (CPS), to achieve the best results, reach objectives, and grow your business further.
