5 Proven Ways to Make Maximize Money from Your App

Increase you Return on Investment

Explore what is required when it comes to developing an application and how best to monetize it. From the various channels available to the common pitfalls to avoid, app monetization is essential for a business’s growth.

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Monetization Strategies for your business

In this section, we delve into why you need a monetization strategy for your application. We also take a look at the difference between free and paid applications on both iOS and Android devices, as well as what the hybrid monetization model is.

The Importance of a Monetization Strategy
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The country has been embracing the potential of AI technology to solve local problems and develop solutions for different sectors. The riBuilding a mobile app is a significant investment of time and money. While many businesses focus on developing an innovative product and gaining users, having a solid monetization strategy is key to generating ROI from your app.

Without a plan to make money from your product, your business will not be sustainable or scalable in the long run. There are multiple compelling reasons why a monetization strategy for your app is crucial. Firstly, it creates revenue to offset development costs. The cost of building and maintaining an app can be significant. Monetization allows the business to recover some of these costs and potentially generate a profit. 

Secondly, it keeps the app funded for continued improvements. Ongoing revenue streams enable you to dedicate resources to continuously enhancing the user experience, fixing bugs, improving performance, and releasing new features.

Thirdly, it makes the app a viable business asset. An app that generates significant revenue and income has greater value as a business. This can attract investors, allow you to expand into new products, and support your company's growth. Fourthly, it leads to financial independence and stability. By relying less on outside funding and becoming self-sustaining, your app business gains more control over its destiny and freedom from outside influence.

Lastly, it boosts your credibility with users and partners. An app with a smart monetization model is viewed as more professional, reliable, and stable. This can increase user trust and willingness to pay, as well as partner confidence.

Free vs Paid Adds
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Mobile apps have become integral to our daily routine, offering convenience and entertainment. In the fourth quarter of 2022, the total value of global consumer spending on mobile apps was almost 70 billion U.S. dollars, highlighting the significant role that mobile apps play in the digital economy.

As of the third quarter of 2022, consumers spent an average of 4.86 U.S. dollars on mobile apps per smartphone, which underlines the high demand for these digital solutions.In 2023, the importance of apps to consumers will remain indisputable. According to research from data.ai, the global app market is demonstrating remarkable resilience despite economic challenges.

Mobile consumers are expected to spend an astounding $34.1 billion in app stores in Q1 2023, marking the highest quarterly spending on record. In Q1 2023, consumers downloaded 38.4 billion apps, second only to Q3 2022’s 38.7 billion. iOS saw the biggest spike, with estimated installs growing 12% YoY to approximately 9.2 billion. Google Play installs grew 1% YoY to 29.2 billion. India and Brazil were the largest markets by downloads, while Turkey, Russia, and Iraq saw significant upward movement on Google Play.

On iOS, China and the US were the top markets, with the US, Brazil, and Japan experiencing the most quarterly growth. The most downloaded categories on iOS in Q1 2023 were games, utilities, and photo and video. Meanwhile, games, health and fitness, and travel had the most growth in absolute downloads quarter over quarter.

The categories with the highest percentage growth quarter over quarter were Health & Fitness, Navigation, and Catalogs, with rises of 17%, 15%, and 12%, respectively. Google Play users downloaded a lot of games, tools, and entertainment apps in Q1 2023. However, the categories with the most absolute growth were productivity, books and reference, and education, which saw quarterly growth of 12%, 10%, and 9%, respectively. 

Looking forward, mobile app spending is forecast to reach 161 billion U.S. dollars and 72 billion U.S. dollars on the Apple App Store and the Google Play Store by 2026, respectively. While both platforms have started applying some changes to their app store policies in 2021, like lowering commission fees for small publishers generating less than 1 million U.S. dollars in yearly revenues, companies like Microsoft are looking to capitalize on the pain points consumers currently experience.

It is reported that the tech company is looking to create its own mobile gaming store to rival the duopoly that Apple and Google have in the mobile gaming market and leverage the regulations to their advantage in doing so.

Hybrid Monetization Model
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A hybrid monetization strategy combines multiple app monetization models to generate diverse revenue streams from your app users. The most successful apps use a hybrid monetization strategy because it tempts high-value users with in-app purchases while providing an opportunity for others to improve their app experience by watching and engaging with creative ad content.

In other words, it's an approach that incorporates both advertising and non-advertising revenue streams to support an app’s growth. All with the overall aim of maximizing lifetime value (LTV) from your consumers by combining the right number of monetization models. 

A hybrid monetization strategy is important for the following reasons: Apps that rely on in-app purchases or paid downloads alone are falling behind and missing out on major revenue. According to an AppsFlyer study, only 7.1% of iOS users make at least one in-app purchase per month, and only 4.6% of Android users do. And because paid apps tend to get fewer downloads, the revenue they generate can be limited.

To counteract these limitations, in-app ads can maximize the revenue-generating potential of non-paying and paying users alike. More specifically, Pangle’s data shows that ads typically increase mobile app revenue by 10–30%. To this point, both developers and advertisers are recognizing the value of in-app ads, as 89% of mobile developers already use in-app ads as of December 2019.

As such, advertisers are expected to pour more than $240 billion into ad spending in 2020, a 26% uptick from 2019.There are various ways to incorporate ads into your monetization strategy, regardless of which one you employ. For example, freemium apps can be combined with ads as many users will never purchase the premium features, but they can still generate revenue.

Rewarded video ads are an especially effective way to monetize non-paying users of freemium apps. With this format, users can choose to watch ads to unlock premium features or just a trial of a premium feature if maintaining in-app purchase volume is important. Alternatively, freemium apps can also simply include ads of any type within the free features.

As for the subscription model, it is usually adopted by video and music streaming apps, news apps, and some utility apps. Some developers believe that ads have no place in subscription-based apps, but subscriptions and advertising can indeed coexist, so long as the ads are shown to the right user groups (hence the importance of target group research).

For subscription-based apps that provide some free content, user behavior data and A/B testing can help you identify user groups that usually consume the free content only. Afterward, you can incorporate ads into the free content and show them to said user groups. Another option where hybrid monetization can take place is with paid downloads.

Simply put, if you rely solely on a pay-to-download model, your users stop generating revenue soon after they purchase your app. Over time, a relatively inexpensive app without in-app ads will likely earn less revenue than a free app containing in-app ads.

To maintain revenue gains in the long term, combine your paid app into a free app and carefully implement ads, or keep it as a paid app and incorporate ads as a way to increase your revenue streams.

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The Most Common Pitfalls

Before an app can be developed and monetization strategies implemented, one must consider the common pitfalls that can derail any progress made. By avoiding these mistakes, one can increase their chances of successfully monetizing their application.

No Clear Monetization Strategy
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One of the biggest mistakes app developers make during app development is not outlining a well-defined monetization strategy from the outset. It is pivotal to identify the target audience, market demand, and suitable monetization models early on to better understand who you’re developing your offering for.

Whether it's through in-app purchases, subscription plans, or advertisements, a clear strategy will help guide your monetization efforts.

Not Consumer-centric
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Finding the right balance between monetizing your user base and providing a seamless user experience for your app or platform can be challenging. User experience is paramount in mobile app monetization.

Bombarding users with intrusive ads or implementing overly aggressive monetization techniques can lead to a negative user experience and drive users away. Excessive ads shouldn’t disrupt the natural flow of the application experience.

In order to avoid users turning elsewhere, your ads don’t have to be intrusive or pushy; they just have to be highly targeted and present the right offers to the right users. It's crucial to strike a balance between generating revenue and providing a seamless, enjoyable app experience for your users.

Lack of Targeted Advertising
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Advertisements are a popular monetization stream, but failing to target ads properly can result in low engagement and revenue.

Understanding your app's audience demographics and leveraging data analytics can help deliver targeted ads that resonate with users, resulting in higher click-through rates (CTR) and ad revenue.

Implementing Ads Incorrectly
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Ads are often implemented to generate as many impressions as possible. However, impressions are not equal to revenue. If you don’t take the users’ journey into consideration and insert ads every few minutes or in between actions, your users might just give up on you.

In order to avoid implementing ads inappropriately, choose the most suitable format for your app: place interstitial ads displaying highly engaging videos at natural pause points; run natural-looking ads mimicking the design of your app to blend in with the app’s flow; show reward video ads, giving users the choice to watch a video in exchange for an in-app incentive like an extra game life or virtual currency.

Lack of App Store Optimization
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App store optimization (ASO) is the ongoing process of improving the ranking and visibility of an app in an app store. Which makes it easier for users to discover and find it. The aim of ASO is to increase the number of downloads for an app. Additionally, it can also increase brand awareness, stimulate user engagement, and garner reviews and feedback.

Hence, an app store’s optimization is crucial for increasing app visibility and organic downloads. On the other hand, neglecting ASO practices such as keyword optimization, compelling app descriptions, and engaging app screenshots can lead to poor discoverability for the app, thus limiting your monetization potential. (Its important to note that as many as 82% of users discover apps by either browsing app stores or taking app recommendations provided by the app stores themselves.)

The Apple App Store and Google Play are the two most known app stores. But you can also perform ASO in other app stores, such as the Amazon Appstore, the Samsung Galaxy Store, and the Huawei AppGallery. The elements that influence your ASO rating are the following; the app name or title, the keywords, the app’s description, the number of downloads, ratings, reviews, and updates. Your app’s ranking and visibility are made even more important when you consider that there are over 5 million applications across both Google and the App Store combined.

Therefore, ongoing ASO is critical to the success of your app's efforts to gain visibility and credibility.

No Use of Data Analytics
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Data analytics provide valuable insights into user behavior, engagement, and revenue generation. By leveraging analytics tools, you can gain a deeper understanding of your users' preferences, optimize monetization techniques, and identify areas for improvement.

Testing your app before launch and making all the necessary changes to adapt it to the local market can be a major driver of revenue. The importance of data analytics within an application can be found in its benefits. Specifically, collecting accurate user data. You can get information about your app’s favorite functionalities or features and the disliked elements that don’t work so well.

This accurate data collection can help you address the right issues, plan upgrades, and make relevant additions or changes. Being able to track your business goals allows you to determine the acquisition channels that generate the highest customer lifetime value (LTV). This can help you track business goals and develop essential marketing and engagement strategies in line with your budget.

Data analytics also increases user engagement and retention by analyzing the complete user journey inside your application. The reports let you see what content users interact with and when they decide to leave. This information makes it easier to identify where you can make improvements for better engagement and retention. With app analytics, you can create an individualized customer experience. 

It provides valuable insights about user profiles and behavior that you can use to create effective marketing and re-engagement strategies. A McKinsey study revealed that 71% of customers expect businesses to deliver personalized interactions, and 76% get frustrated when this doesn’t happen. App analytics help determine where in the journey the user dropped off and adapt your marketing strategy accordingly.

All this information can make it easier to identify the elements of your application that might hinder user retention and engagement, from complicated conversion funnels to unintuitive features.

Lack of App Upgrades or Improvements
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Mobile app users expect regular updates and improvements to keep them engaged. Failing to provide updates, bug fixes, and new features can lead to user attrition and subsequent decreased monetization opportunities.

According to the data provided by the digital marketing community, over 20% of users forget that they have a particular app. However, regular updates can solve the problem. When an app is updated, it is a great opportunity to inform users about new features through a notification and also remind them about your app.

According to Business Insider frequent updates help apps earn higher ratings. In previous years, there were no applications that released fewer than nine updates per year and got above-average ratings. As such, continuous improvement on security features, better app development performance, and responding to user feedback are vital for retaining users and maximizing revenue potential.

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App Monetization Strategies

There are multiple app revenue-generating streams to choose from, and we take a look at five of them. Discover the pros and cons of each and how best to pair them to achieve optimal results.

Paid or in-app adds
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With in-app advertising, mobile app owners provide an option for their app users to use the app for free in return for displaying ads inside the app. The premise of this monetization model is that a certain percentage of the app's user base views the ad, clicks on it, and purchases a product or service from a third party. App owners who place other apps’ ads inside their apps, so-called app publishers, are rewarded for either delivering mobile traffic (aka CPM business model), generating clicks (aka CPC business model), app installs (aka CPI business model), and ultimately generating purchases or other actions (aka CPA business model) taken by mobile app users inside their apps. 

Positives to this revenue stream include mobile users getting to use the app for free with no limitations, and, in some cases, as a bonus. They may be introduced to a new app, a product, or a service that they need. Because of the overall volume and in many cases, the low relevancy of mobile ads, mobile app users have developed ad blindness or downright ad hatred that degrades their mobile experience. This is a possible negative with regard to in-app ads. Implementing targeted ads within your app can generate revenue. Consider using platforms like Google AdMob or Facebook Audience Network to display relevant ads to your users. Optimize the ad placements and formats to ensure a balance between user experience and ad revenue. 

Today, in-app ads have become more sophisticated; many offer users a dynamic and relevant experience. There are a lot of different kinds of in-app ad formats you can experiment with to see what integrates best with your app. The first type being banner ads which are image-based ads that take up space either at the top or bottom of a screen. They are like small digital billboards. Also known as display ads, they are a traditional form of online advertising that remains common in the mobile ecosystem. The second type are interstitial ads. These are full-screen ads that pop up during transitions such as between levels in a game and cover the entire interface of the app. They can be very effective and engaging, but also annoying if used improperly. The third type are video based ads which play before, during, or after streaming video content, and can be generally entertaining and less obtrusive to the app user. Developers can earn significant revenue by incorporating in-app video ads into their monetization strategy. The fourth type are offerwall ads which offer users multiple rewards or incentives in exchange for a specific action, such as watching a video, downloading an app, or making a purchase. Since they are initiated by the user, they aren’t as disruptive to the experience as traditional ads. Other types of ads include playable ads, native ads and rewarded video ads which are similar to video ads but with an incentive. 

Using the right combination of in-app ad formats and getting them in the hands of the right users will maximize their impact. By taking the time to refine and optimize your monetization strategy, you will be able to develop more ways to earn money, high-value, long-term engagement, and better user experience.

In-app Purchases
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Offer users the option to make in-app purchases for additional features, premium content, virtual goods, or subscription-based services. Provide compelling value to encourage users to spend on these extras, and regularly update and expand your offerings to maintain user engagement.

Freemium Model
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Today, the freemium model dominates the landscape of app monetization strategies of popular mobile apps. Offer a free version of your app with limited features and functionality, and provide a premium version with additional benefits at a cost. This approach allows users to experience the app's value before deciding to upgrade, increasing the chances of conversions.

The freemium model is based on the principle of providing the app’s copy for free with a limited basic set of functions. All additional, more advanced features can be purchased inside the app for a small fee, depending on the company’s value-added propositions (when it comes to purchasing apps’ annual subscriptions).

The appeal of this strategy lies in its ability to introduce the app to a broad audience, let people explore the app, apply it to solving their problems or meeting their needs, and then decide whether they invest money in purchasing its advanced capabilities or not.This strategy facilitates the increase of the app’s brand awareness and helps it be connected with mobile app users who otherwise wouldn’t consider trying it.

On the flip side lies the danger of a company behind the app actually failing to convert enough people using the app for free into paying customers and therefore ensuring the app’s sustainability. 
The advantage of this monetization strategy is that app brands can quickly distribute the app to a wide audience.

Allow them to experience the app, decide whether it works for them or not, and also purchase additional features inside the app with a single tap. The disadvantage lies in its difficulty to predict the behavior of the app’s users and know their needs in advance, there is always a danger of the app becoming unsustainable due to failing to acquire enough users who have purchased additional features.

Subscription Model
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If your app provides ongoing value or content, consider offering subscription-based access. Users pay a recurring fee to access premium content, exclusive features, or enhanced experiences. Continually deliver high-quality content to retain subscribers and provide incentives for long-term subscriptions. Subscriptions offer recurring billing for premium features, content, or services. An app could charge monthly or annual fees for an ad-free experience or access to premium data. 

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Explore opportunities for brand partnerships or sponsorships within your app. Collaborate with relevant companies or advertisers to integrate their products or services in a meaningful way.

This approach can provide a new revenue stream while also enhancing the app experience for users. In some cases, when the app’s user base is large, from a business point of view, it makes much more sense not to charge the app users for using the app but to partner with a company that will compensate the app’s owner for the inclusion of their content into the app. 

With this app monetization strategy, a company the app partners with gets its product exposed in front of a large audience, and the app’s owner gets an attractive bargain – using a high-quality app for free.

According to this strategy, the sponsorship between a brand and the app can manifest as a sponsored icon, sponsor banner, or sponsor interstitial placed inside the app, push notifications sent from the sponsor, and, finally, content provided by the sponsor. 

Potential cons with this strategy include certain limitations; for example, the app owner is bound by a contract with a brand and can’t change the app’s price. Essentially, the app’s potential to generate revenue is directly connected with how well things are going for the brand behind the sponsorship.

Conversely, pros relate to mobile users getting to use the app completely free of charge. This, in essence, should attract a wider audience, including people for whom paying for the app would be a game-stopper. The other benefit of this strategy is that if a mobile application signs a sponsorship contract with a big brand, that brand name gives the app a credibility boost.


Monetization Metrics to Consider

Below, we’ll discuss the various categories of monetization metrics and the subtypes within those categories. From operational to financial to consumer-based metrics, we’ll get a better understanding of what affects the monetization strategy you decide to use.

Operational App Metrics
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Operational data is important as it forms part of the financial aspect, specifically relating to the performance of your app in terms of user engagement. The first app metric that businesses look at to measure and analyze performance is customer retention rate (CRR).

The percentage of users who install and keep interacting with your app within a given period of time is known as the user retention rate, app retention rate, or customer retention rate. Retention rates are most commonly measured after days 1, 7, and 30. Most marketers will probably name the CRR as the most important operational metric for this reason. Gaining new users is fundamental for the healthy growth of an application, and app development includes an array of tools that can be used to expand its audience.

CRR is dependent on the category of the application, as that has a significant bearing on user retention and how quickly they lose interest, as seen in this Statista report.  The formula below is how you work out the metric.

Customer Retention Rate (%) = ((Num. of users at end of period — Num. of new users within the period) / Num. of users at start of period) × 100

Alongside CRR, the churn rate metric is an industry standard for assessing the performance of a mobile app. It is used to identify the percentage of users who stop being impactful to the business within a particular time span. There are 2 ways of calculating the churn rate.

  1. Churn rate (%) = 1 — retention rate
  2. Churn rate (%) = No. of lost customers / total No. of customers at the start × 100

Since churn rate and CRR go hand in hand, it's important to understand how each affects the other and analyze how best to maximize both in tandem. For example, a 3–5% monthly churn rate and a 5–7% annual churn rate are acceptable. However, the acceptable churn figure depends on the size of a SaaS business. Larger companies spend more money to acquire customers and lock them into annual contracts, which means lower churn rates.

Lifetime (LT) is a simple metric based on how long, on average, your app dwells on users’ smartphones until they delete it (churn) or stop interacting with it; you decide which of the two options to look at in your case. To work out this metric, you follow a simple formula.

LT (months) = Total months / Total users

The FUUU Factor is a relevant metric if your app is a mobile game or has gamification principles at its core. Marketers use it to assess the difficulty of achieving the next level in a game that can nudge a user to churn. The formula is as follows;

FUUU Factor (%) = No. of Attempts to Complete a Level / No. of Almost-Successful Attempt.

Other metrics include the return rate, which specifies the percentage of people who install your app and come back to use it on a particular day, week, or month. To figure out the return rate;

User Return Rate (%) = No. of users who installed the app on Day A and used it on Day Z / No. of installs on Day A × 100

Another way to measure the engagement rate of your user base over a period of time is by looking at daily active users (DAU), weekly active users (WAU), and monthly active users (MAU).

To calculate DAU, WAU, or MAU, simply look at how many unique users opened your app within a day, week, or month, respectively. For the average figure, the formula would look like this:

DAU (users) = Total unique active users per period / Number of days

Lastly, we have the stickiness metric, which is similar to the return rate in that it shows you how often users come back to your app. However, it uses a different approach to calculate this rate. Stickiness is the ratio of DAU to MAU multiplied by 100 to be expressed in percentage. The formula is:

Stickiness (%) = DAU / MAU × 100

A good figure is 20%, while 50% and more are considered exceptional.

Financial App Metrics
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Financial metrics will help you make sense of and keep track of the monetary processes that are part of your app business, such as revenue, costs, and user value. Since these metrics lie at the intersection of operational and financial data, they play a pivotal role in forecasting ROI and generally planning the business.

ARPU is the average revenue per user who has downloaded your app, regardless of what monetization model you choose. When evaluating your ARPU, take a look at your target audience, product, and marketing budget. This figure is calculated as follows:ARPU ($) = Total revenue / Total usersThe lifetime value (LTV) of an app looks at the revenue that a user generates within their lifetime (LT).

There are multiple ways of calculating LTV, from formulas that include integrals to figures based on advanced statistics, but if you know your ARPU, monthly expenses per user, and LT, you can use the simplest calculation possible:LTV ($) = (ARPU — Monthly expenses per user) × LTThe LTV goal that is commonly accepted by marketers is an LTV that exceeds three times the customer acquisition cost (CAC).

Another important financial metric is the average revenue per paying user (ARPPU), which is relevant for apps that make money with in-app purchases specifically. ARPPU helps you see how much monetary value one paying customer brings to you on an average month, quarter, or year. Just like with ARPU, there is no golden standard for ARPPU, as it depends on your business's specifics.

Here is how it is calculated:ARPPU ($) = Revenue from in-app purchases / Paying usersAdditionally, if you want to know how user activity benefits your business, take a look at the average revenue per average DAU. This one is also a custom metric that hinges on multiple factors.

It can be worked out as follows;ARPDAU ($) = Revenue from in-app purchases, ads / Average DAUDigital marketers use metrics like cost per install (CPI) to define how much it costs to acquire a new user. However, this concept provides only a limited picture.We suggest looking at the effective cost per install (eCPI), as it takes into account more than just what you pay for each new install.

Besides your promotional spend, eCPI factors in the organic installs that come from word of mouth and all the other sources that you can’t keep track of. You can calculate it by using the so-called K-factor, the term that marketers use to describe the coefficient of virality.

See the formula below: eCPI ($) = Total marketing spend / Total installsAs we mentioned earlier, the business situation can be considered healthy when eCPI is at least three times lower than LTV. Your goal should be a figure of around $1 for the Play Store and $2 for the App Store.

Cost per install (CPI) stands for how much it costs to acquire a new user. A metric that is similar to customer acquisition cost (CAC). This is one of the most important metrics for in-app monetization, as it allows you to forecast how much you will need to invest in marketing your app.

The average CPI varies from platform to platform. Here’s how you calculate CPI;CPI ($) = Ad spend / New installs from ad

Advertising App Metrics
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To ensure you make the most out of your advertising, you need to know how the value of in-app ads is calculated for you as a publisher and your advertisers. Conversely, you also need to drive traffic and build a user base.

This means that you will need to forecast and measure the ROI of the ads you buy.Effective cost per mile (eCPM) allows you to calculate the value of an ad per 1000 impressions, regardless of how many users interact with it. This metric depends on your user’s location, your niche, your app’s speed, and other factors.

Marketers suggest basing forecasts on an eCPM value of between $4 and $10. Take the revenue from a specific advertiser for the given period of time, divide it by the number of times it was displayed within this period (impressions), and multiply the result by 1000.

As seen below;eCPM = Ad revenue / Impressions × 1000The fill rate is what ad networks use as intermediaries between app publishers and advertisers. When an app company offers a number of ad slots (ads requested) to a network, this network matches them with relevant advertisers. The app company gets paid for every ad successfully delivered to users of this app.

If a publisher requests ten ads, the network matches them with five advertisers based on their target audience, and the app fails to deliver one ad due to a technical error, there will be four delivered ads. Based on that, the fill rate formula is as follows;Fill rate = Ads delivered / Ads requested × 100Although this metric is based on advertising analytics, it can also be considered an operational metric as it provides valuable insights into the business performance of your app.

The click-through rate (CTR), which is synonymous with SEO, can also be used to measure app performance. It stands for the percentage of users who have followed a link in whatever format it was presented to them, be it a banner ad or a text hyperlink. CTR is calculated through this simple formula:CTR = Total Clicks / Total Impressions × 100Additionally, the cost per click (CPC) metric is used to specify how much an advertiser pays to the ad platform every time someone clicks on their ad.

On Google Ads, the average CPC for display ads varies from $0.41 to $0.81. This range increases to $1.01–$4.85 for mobile search ads. The following formula is below;CPC = Total Ad Spend / Total Measured ClicksThis next metric concerns ad fraud and, in particular, the cost it bears on advertisers. To combat this, advertisers use the click-to-install time metric (CTIT).

Otherwise known as the time to install (TTI) metric, which shows you the time interval from an ad click to the first opening of the newly installed app. This metric only takes into account the installs that have been validated by users opening the app.App metrics are fundamental to growth, improvement, credibility, and success.

They provide the quantitative insights you need to optimize the customer journey, gain a competitive advantage, and build a sustainable business around your product. By tracking and responding to key metrics, you gain the power to thrive in an environment where only the most engaging and innovative apps survive and scale.

The app economy moves fast, and metrics are what give you the means to keep up.

In Conclusion
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App monetization strategies and metrics are essential for success in app development. There are many options for generating revenue from an app, such as in-app purchases, subscriptions, advertising, and paid apps.

The best monetization strategy depends on the app type and target users. Key metrics must be measured to determine how well the monetization strategies are performing. Metrics like cost per install (CPI), lifetime value (LTV), churn rate, and conversion rate should be tracked. 

Monitoring metrics closely in early app development is critical. Developers can then adjust their monetization strategies to improve performance. For example, tweaking in-app purchases, subscription options, ad placements, and marketing campaigns can increase revenue and user growth. Metrics inform developers about which strategies work best for sustainability and profitability. 

In summary, smart monetization strategies and continuous metric tracking are necessary for successful app development. The app market is highly competitive, but optimizing monetization and utilizing metrics help developers build financially sustainable apps. Considering monetization options carefully and evaluating metrics frequently makes a difference in today's app economy.

Strong monetization and metric-driven development lead to apps that generate revenue and retain users.

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