AppMetrica Blog

Calculating revenue in AppMetrica

To increase app revenue, it's important to clearly understand what affects it. This is why AppMetriсa now provides the Revenue report: keep track of money indicators, as well as analyze what factors are linked to profitability and how it can be increased. 

Marketing specialists and analysts can easily track what causes changes in financial metrics. Does the new ordering funnel work? Have new levels in games generated any profit? Has a promotional campaign helped increase revenue from inactive users? The new report helps answer these questions. 

Apps that benefit from the Revenue report 

The Revenue report is a free universal tool for any project with in-app monetization: games, subscription-based services, services with in-app purchases, and e-commerce apps. Let's look at the report by using mobile games and e-commerce apps as an example.  

Mobile games

If games are your business, you should first of all track the ARPU and ARPPU metrics. ARPU (average revenue per user) shows how much money an average player brings in. AppMetrica lets you evaluate business performance and compare new versions of the app to older versions or similar projects from your portfolio. Pay close attention when you introduce new features: if the change is a success, the indicator will grow, meaning your offer sparked the interest of previously inactive users. Maybe paying users became even more profitable. This is more accurately reflected in the second metric, ARPPU. 

ARPPU (average revenue per paying user) shows the average revenue per user who made at least one purchase during a specific period. Using ARPPU, you can track how paying users reacted to price changes and new in-game items, as well as experiment with price sensitivity to see how willing they are to spend in general.

E-commerce

For e-commerce apps, AOV (average order value) is quite handy. With this indicator, you can compare sales through the app and other channels – the website and offline stores. However, if the audience is segmented, a higher AOV indicates users who can pay more.

You should also track the average revenue per user (ARPU). If ARPU in the app is low, it might make more sense to develop a plan to increase it rather than attract new customers — improve checkout flow, add product recommendations, and come up with a discount plan. ARPU is a clear guideline for evaluating improvement effectiveness.

To analyze sales via the app, user loyalty status and promo code dimensions can be sent along with data for every order and used to generate reports.

Setting up a Revenue report

To add revenue data to AppMetrica, configure revenue event collection via SDK. Soon, payment validation from app stores will also be available. 

What's next

Revenue metrics are now available in a single report. We are already preparing a second, more advanced part of this feature.

We'll be introducing monetary metrics for traffic sources, which will let you evaluate the effectiveness of advertising investments in money and calculate ROI. You'll also be able to select income by segment in any report: in terms of profitability, you'll be able to analyze all the data slices available in AppMetrica. For example, you'll be able to better evaluate the impact of remarketing campaigns or supplement your understanding of the value of different user cohorts.

Financial indicators will also be shown in user profiles, so you can compare the patterns of behavior of the most profitable users with those who still haven't paid. 

New features will become available in future releases.

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Stay posted, there's more on the way!

The AppMetrica Team