Top Mobile App Metrics to Level Up Your Game’s Revenue
Let’s get into the scenario: you’ve worked numerous hours to create your game, and finally, it officially launched! Now you think you can sit back in your chair and relax because everything will “go with the flow”. Well, it’s hard for us to break it to you, but generating revenue is no longer just about launching a great app.
Success hinges on understanding and using the right metrics to optimize your game’s performance. These data points can reveal how well your game engages users, converting them into payers, and leveraging ads to maximize profitability.
That said, in this post, we’ll explore the top mobile app metrics every game developer should focus on to elevate their revenue potential.
Daily Active Users (DAU) and Monthly Active Users (MAU)
DAU and MAU are foundational metrics for understanding your game’s audience size and activity. DAU measures the number of unique users engaging with your app at least once daily, while MAU shows the bigger picture over a month. Together, these metrics create the DAU/MAU ratio - a measure of your game’s stickiness. How sticky your app is refers to whether people are coming back to your app and how long they wait until coming back.
Stickiness's importance lies in a high DAU/MAU ratio. It indicates that players frequently return to your game, which often correlates with higher monetization potential.
For instance, a DAU/MAU ratio of 50% means that half of your monthly players engage daily, and it is a strong indicator of player loyalty and the effectiveness of retention strategies.
Retention Rate: Keeping Players Engaged
The retention rate measures how many players return to your game after their first session, and it is typically tracked on Day 1, Day 7, and Day 30. This metric highlights your game’s ability to capture and sustain player interest over time. If your app retention rate is high, that’s a good sign because it means that people enjoy your app and find it useful.
To measure the retention rate, divide the number of installs in a given period (week, month, quarter) by the number of active users in that given period.
The higher retention, the better results. In other words, high retention rates are meaningful because they drive lifetime value (LTV) and increase players' chances to make in-app purchases or engage with ads.
Try this tip:
To improve Day 1 retention, simplify onboarding, and introduce early rewards. Engaging mid-term goals, like unlocking new content or achievements, can bolster Day 7 retention.
Session Length and Frequency: Measuring Engagement
Session length tracks how long players spend in your app per session, while session frequency measures how often they return throughout the day. Together, these metrics reveal your game’s stickiness and replay value.
Why It Matters?
Longer and more frequent sessions mean more monetization opportunities through in-app purchases or overall engagement while interfering with tools like offerwalls.
For example, a puzzle game might average short but frequent sessions, while an RPG (role-play game) could have fewer, longer sessions. Based on those session patterns, it is important to tailor monetization strategies, like, timed ads or amusive offers.
ARPU, ARPPU, and ARPDAU: Unlocking Revenue Potential
Average Revenue Per User (ARPU) measures the average in-app revenue generated per user, like ad impressions or clicks, subscriptions, downloads, or other forms of paying and non-paying monetization models. ARPU metric informs you of the quality of your average user in terms of what matters most – generated revenue.
Unlike ARPU, which averages out revenue across all users whether they pay or not, Average Revenue Per Paying User (ARPPU) focuses only on users who spend money on in-app purchases (IAP). It’s used to evaluate the efficiency of existing IAP events, the success of new IAP events introduced to the user flow, and the effect of other events on IAP revenue (such as the offerwall option to watch an ad rather than pay).
Knowing your ARPPU can help you identify opportunities to upsell and boost revenue. You can use the formula to acknowledge where your app revenue is currently at.
Average Revenue Per Daily Active User (ARPDAU) tracks the average revenue by a daily active user to understand how much revenue each player generates on a daily basis. ARPDAU is most effective when looking at day-to-day performance that may be affected by short-term changes, like in-game promotions, or advertising campaigns, which can impact player revenue. You can also use the formula to measure game performance in the days of changes.
These metrics offer a granular view of your game’s earning potential and help you identify areas for improvement.
For example, if ARPPU is high but ARPDAU is low, it may indicate a heavy reliance on a small group of whales (big in-app spenders). A great solution is to introduce low-cost in-app purchases or exclusive offerwall deals that can encourage other player groups, like casual players, to spend, and not just engage with your game.
Lifetime Value (LTV): The Metric That Drives Strategy
LTV estimates the total revenue player generates over their lifetime in your app. It’s a critical metric for understanding long-term profitability.
The importance of the LTV metric lies in determining how much you can afford to spend on acquiring new users. Comparing LTV to your Cost Per Install (CPI) ensures that your acquisition efforts remain profitable.
Also, you can use LTV insights to target high-value players (whales) with personalized offers, such as tailored ads or special events that increase engagement.
In-App Purchase (IAP) Conversion Rate
The in-app purchase metric tracks the percentage of players who make at least one purchase in your app. Increasing this conversion rate can significantly boost your revenue.
Why It Matters?
Even small increases in IAP conversions can greatly impact overall revenue, especially in games with a large user base.
For instance, limited-time sales, exclusive bundles, and seasonal offers are proven ways to encourage spending. Adding offerwall options that reward players with in-game currency for real-world actions can also convert non-spenders into revenue generators.
Ad Impressions and Fill Rate: Maximizing Ad Revenue with Offerwalls
Ad impressions track how many ads players view, while fill rate measures the percentage of available ad slots that are successfully served. Both are crucial for optimizing ad revenue.
Speaking about offerwalls, which are particularly effective in games, they are a form of in-app advertising that can be much more effective than traditional ads. They reward players for completing tasks like surveys, app downloads or simply video-watching. Its non-intrusive offers won’t annoy your players, who have all the control regarding interaction with offerwall deals. Overall, this monetization tool enhances player engagement and generates significant revenue without disrupting the gameplay experience.
The significance of high fill rates and ad engagement lies in direct correlation with ad revenue. Offerwalls can help maintain player satisfaction by allowing users to earn valuable in-game items or currency without paying out-of-pocket.
For instance, a player might complete a survey through the offerwall to earn 100 gems in a mobile RPG, boosting your game’s ad revenue while enhancing player satisfaction.
In overall,
understanding and optimizing key metrics like DAU, MAU, retention, session habits, average revenue per user, LTV, and ad engagement, can transform your game’s revenue potential. Each metric provides a unique piece of the puzzle that helps you refine your strategy to attract, engage, and monetize players effectively.
In addition, offerwalls, when used strategically, can complement your monetization efforts, providing value for both your players and your bottom line.
So, it’s really up to you. Try to unlock new growth opportunities and keep your game thriving in the competitive mobile market by adding our offerwall to your game. We’re here to help!
