January 4, 2024

9 key metrics to drive app monetisation (+1 bonus metric)

Fill rate

Fill rate is the efficiency of ​delivery of the actual ad ​to the eyes of a user. 

Getting a 100% ad fill rate, it is not an easy as every advertiser is particular about getting their ads across to their target audience, selecting publishers that best suit their target demographic. Also technical issues like poor connectivity or bugs could limit 100% fill rate. Monitoring this metric is crucial for app publishers to maximise monetisation.

Refresh rate

R​efresh rate ​is the duration set to deliver a new ad​ to your user. This ranges from every 30 seconds to every 180 seconds.

Google suggests to optimise this for 60 seconds or longer, giving users enough time to engage with ads, and provides optimal performance for both advertisers and publishers.

Some tips on Ad Refresh:

  • Measure the engagement and fill rates before/after refreshing the ad inventories. 
  • Monitor Revenue Per Session (RPS) as a success metric. 
  • Implement ad refresh on pages with engaging content.
  • Try A/B testing with different types of ad refresh triggers

Usage Rate

Usage rate in ad monetisation refers to the number of ads displayed to an average user that has watched at least one ad.

Engagement Rate

Engagement rate (or Ad Viewer Rate) measures the percentage of daily active users that have watched at least one ad. 

It is best to track it per ad format to measure the effectiveness of an ad unit’s placement, especially for opt-in format like rewarded video. Placement of an ad can directly affect the engagement rate when your users are not motivated to interact.

A higher engagement rate indicates that users find the ads relevant and engaging, leading to better monetisation outcomes.

Tips on Engagement Rate:

  • Experiment with user-initiated ad formats, such as offerwalls or rewarded video ads, that generally have higher engagement rates due to the rewards they offer users in return. 
  • Track engagement metrics for each format and prioritise those that yield the highest engagement rates.
  • Avoid placing ads in disruptive locations and ensure they don't impede the user experience. This can encourage users to interact with ads without feeling overwhelmed.

Ad Impressions

Ad Impressions represent the total count ads displayed to users, a fundamental metric to measure reach and visibility of an ad. Publishers need to find the right balance to maximise ad impressions without compromising the app’s user experience.

2 factors to consider when improving ad impressions: Ad Frequency and Ad Placement Visibility. Too many a high ad frequency may annoy your users while less visible ad placements may result in unfilled ads.

Start assessing the impact on user experience, with KPIs such as Retention, Churn rate, ARPDAU, Impressions per user, and Engagement rate.

PS: You can deep dive into all these metrics in Cost Center!

Impressions per Daily Active User (IMPDAU)

Impressions per Daily Active User (IMPDAU) is the average number of ads displayed to each active user on any given day. Monetisation team uses this to gauge the effectiveness of their ad monetisation strategy in terms of daily ad impressions. 

Use IMPDAU to assess the impact of new bidding partners or adjusting a waterfall setup, analyzing ARPDAU, and evaluating the effects of new game features.

Impressions per Daily engaged user

Not to be confused with IPDAU, IPDEU is the average impressions per engaged users (user who saw at least one ad).

Combining Usage rate with Engagement rate can effectively maximise both the percentage of users who interact with the app as well increase the frequency with which they engage.

To boost this metric, monetisation managers can leverage an effective strategy that has visible ad placements and an ad reward system that incentivises ad views. By implementing these tactics, they can maximise the app's overall attractiveness and the frequency of user engagement, ultimately increasing its potential for monetisation.

Ad ARPDAU

Average Ad Revenue Per Daily Active User (Ad ARPDAU) is used to quantify the daily revenue generated from ads by each active user.

By tracking ARPDAU, developers can acquire valuable insights into the daily performance of advertisements, assess the influence of alterations in ad placement, events, or promotions on revenue, and leverage the data to make informed decisions aimed at enhancing ad performance and gauging outcomes.

ECPM (Effective cost per Mille)

ECPM is the revenue generated for every 1000 Ad impressions that were shown to the user. It is one of the most valuable metrics to gain insight on your ad monetisation strategy’s effectiveness and optimisation.

ECPM’s value is a product of factors like your ad network stack, mediation strategy, waterfall/RTB setup, and ad quality. To enhance eCPM, you can pull various levers, such as tweaking ad formats, optimising ad placements, fine-tuning ad waterfall setups, improving ad quality, and adding networks to your app’s ecosystem.

Point to note: Aiming for high eCPM floors in your waterfall setup may reduce ad fills. Don’t forget to strike an optimal balance between eCPM and ad fill rates for a successful ad monetisation strategy.

FUUU Factor

This metric was first mentioned in GDC 2014 by Wooga. FUUU factor is used to find out when player is close to winning every nth time, allowing you to remove bad difficult levels.

If it has taken 100 attempts to pass the level, and only 5 of them have been close to winning. In this case the FUUU-factor will be equal to 20, which is a very high value. Wooga recommends to get rid of levels where the FUUU-factor is higher than 10.

With easier wins in the game, you will build user loyalty and higher retention rate that gives you the opportunity to monetise your app further with your user base. 

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Reference:
https://thenextweb.com/news/11-important-metrics-for-app-monetization-and-how-to-calculate-them

https://www.gamebizconsulting.com/blog/mobile-ad-monetization-metrics

https://yougalchettri.medium.com/ad-monetization-metrics-for-your-apps-623da447cfe8

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