Monetization KPIs

Monetazion KPI's

These mobile gaming monetization KPIs provide valuable insights into the financial performance of free-to-play mobile games, user spending behavior, and the effectiveness of monetization strategies. By tracking and analyzing these metrics, developers can optimize their monetization approach, enhance player satisfaction, and drive sustainable revenue growth.

1. ARPU

ARPU measures the average revenue generated from each user over a specific period, indicating the game’s monetization effectiveness.

ARPU = Total Revenue / Total Number of Users

  • Helps evaluate the overall financial performance of the game.
  • Provides insights into user spending behavior and purchasing power.
  • Guides monetization strategy decisions, such as pricing adjustments and promotional offers.

2. ARPPU

ARPPU calculates the average revenue generated from users who make in-app purchases, highlighting the value of paying users.

ARPPU = Total Revenue from Paying Users / Total Number of Paying Users

  • Identifies high-value segments of the user base for targeted monetization efforts.
  • Helps optimize in-app purchase offerings and pricing strategies to maximize revenue from paying users.
  • Guides user segmentation and personalized marketing campaigns to increase ARPPU.
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3. PPU or Conversion Rate

Conversion rate tracks the percentage of users who make in-app purchases out of the total number of users, indicating the effectiveness of monetization mechanics.

Conversion Rate = (Number of Paying Users / Total Number of Users) x 100

  • Helps assess the impact of user acquisition channels and marketing campaigns on conversion.
  • Guides optimizations of in-app purchase flows and user experience to increase conversion rates.
  • Provides insights into the effectiveness of free-to-play mechanics and prompts for driving user spending.
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4. Revenue From In App Purchase

In-App Purchase Revenue measures the total revenue generated from in-app purchases within the game, reflecting the financial performance of the monetization model.

In-App Purchase Revenue = Sum of Revenue from In-App Purchases

  • Provides a direct measure of the game’s revenue-generating potential from in-app purchases.
  • Helps evaluate the impact of content updates, events, and promotions on in-app purchase revenue.
  • Guides resource allocation and investment decisions based on revenue-generating features and content.
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5. Revenue From Ads

Ad Revenue tracks the revenue generated from in-game advertisements, including various ad formats such as interstitial ads, rewarded videos, and banners.

Ad Revenue = Sum of Revenue from Ads

  • Provides insights into the effectiveness of ad placements, formats, and targeting strategies.
  • Guides optimizations of ad inventory management to maximize revenue without compromising user experience.
  • Helps evaluate the impact of ad frequency and pacing on user engagement and ad revenue.
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6. Time To First Purchase

Time to First Purchase tracks the average time taken by users to make their first in-app purchase after installing the game, indicating early monetization potential and user engagement.

Time to First Purchase = (Sum of Time to First Purchase for All Users) / Total Number of Users

  • Helps assess the effectiveness of onboarding and monetization prompts in driving early user spending.
  • Guides optimizations of in-app purchase incentives and tutorials to reduce time to first purchase.
  • Provides insights into user engagement and retention based on early monetization behavior.
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7. FTD Rate or First Time Deposit Rate

Percentage of user who make their first purchase on a daily basis

The number of users who purchase  / Total users for a given day  

8. LTV or Life Time Value

Lifetime Value predicts the total revenue expected from a user throughout their engagement with the game, reflecting the long-term revenue potential of user segments.

LTV = ARPU × Average Lifespan of a Playe

  • Helps optimize user acquisition strategies based on the expected long-term revenue contribution of user segments.
  • Guides personalized engagement and retention efforts to increase the lifetime value of players.
  • Provides insights into the return on investment for user acquisition and retention initiatives based on projected revenue from user segments over time.

9. ARPDAU

ARPDAU calculates the average revenue generated per daily active user, indicating the daily monetization performance of the game.

ARPDAU = Total Revenue / Daily Active Users

  • Helps assess the effectiveness of daily content updates, events, and offers in driving user spending.
  • Guides optimizations of daily engagement mechanics and monetization prompts to increase ARPDAU.
  • Provides insights into the impact of user engagement trends and seasonality on daily revenue performance.
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