It’s easy to get overwhelmed by the number of metrics game developers are supposed to measure through the three stages of the ARM (or RAM) funnel: acquistion, retention and monetization.
It goes without saying that to be ahead of the game you need to prioritize retention metrics and understand how your players behave. If your game doesn’t excel at engaging users, it doesn’t matter how effectively it acquires new players and monetizes. It’ll never fly.
In this post, we look at the main metrics you need to keep track to get a comprehensive picture of your game ecosystem when your monetization model relies on rewarded video ads:
The revenue from advertising is directly proportional to your user base size. So keep track of the number of users that come back every day (DAU: Daily active users) and month after month MAU (monthly active users), and its trends: is your base stable, growing, shrinking?
Impressions or Views
Impressions refer to the total number of ads shown to players on your game. This metric differs from ad network to ad network. Some partners will consider impressions the number of times a video was watched to the end (completion).
Ad conversion Rate
This metric accounts for the percentage of players who viewed a video ad on your game. When users engage with the ads you show, your placements become more valuable.
Fill rate is the percentage of impressions that were filled with a paid ad. A good fill rate percentage is an indication that your game is being monetized efficiently.
In the perfect world, you would want an ad network that gives you premium prices and fills at 100%. But as a rule, with a high average CPM you get low fill rates and vice versa. So you may want to run house ads instead of having impressions unfilled across your networks and serve a blank. Try to understand in advance if your partners are open to adding house ads and the charge or percentage associated with it.
The acronym stands for Effective Cost Per Mille. It refers to the average revenue a network pays you for one thousand impressions. You’ll want to look at the eCPM by network to determine which partners provide the most value.
LTV refers to the potential revenue that a user could give you over the lifetime of using your app. It takes into account how much users have spent since they downloaded the app to predict how new users will monetize in the future. In fact, LTV is modeled.
There are different methods to calculate LTV ranging from a very simple way of considering your actual LTV to more complex ways of predicting LTV.
From a revenue perspective, it’s critical to understand your game’s ability to scale the CPI (cost per instal) < LTV (lifetime value) equation. You’ll want to find out how much your game can grow while keeping its revenues higher than the cost of bringing in new players. At the end of the day, your goal is to grow your UA spend on a ROI positive basis.
The ratio Average Revenue Per Daily User from Ads/ LTV measures the revenue generated from ads per player.
Accounts for the ratio Installs/Store Page Hits. Track how good your App Store is at getting users to download the game when they see it.
These metrics along with store reviews, virality, IAP, cross-promo, and user acquisition metrics will give you a comprehensive picture of your game ecosystem.
Getting the complete picture of your game performance is critical. Savvy mobile publishers use automated solutions to save time, reduce innacuracy and quickly get all their data ready for analysis. This is where the Libring platform comes in handy. It collects, aggregates and organizes all your metrics in one place so you can instantly gain visibility and accuracy into your data and make the right decisions to bettter optimize your efforts.
Check us out at https://libring.com . Schedule a demo and get a 10-day free trial.