<div class="sub-cat-page-holder"><div class="sub-cat-page-img"><img src="https://persona.ly/glossary/wp-content/uploads/2020/02/graph-bar.svg"/></div><div class="sub-cat-page-h-holder"><h2 class="sub-cat-page-title">Performance metrics</h2><h4 class="sub-cat-page-subtitle"><span class="sub-cat-page-subtitle">App Growth Metrics &#8211; The Key User Acquisition Metrics To Follow</span><span class="csr-page-counter"> -> Page <span class="max-for-title">1 of <span class="sub-cat-max-page"></span></span></span></h4></div></div><div class="search-sidebar-holder"><a href="/glossary/"><h3 class="search-sidebar-holder-title">UA Glossary</h3></a>[vc_widget_sidebar sidebar_id="single-page-sidebar" el_class="front-page-sidebar-holder"]<div class="search-sidebar-footer-holder"></div></div>{"id":1186,"date":"2021-02-10T13:13:45","date_gmt":"2021-02-10T13:13:45","guid":{"rendered":"https:\/\/persona.ly\/glossary\/?page_id=1186"},"modified":"2021-02-11T08:55:47","modified_gmt":"2021-02-11T08:55:47","slug":"app-growth-metrics-the-key-user-acquisition-metrics-to-follow","status":"publish","type":"page","link":"https:\/\/persona.ly\/glossary\/performance-metrics\/app-growth-metrics-the-key-user-acquisition-metrics-to-follow\/","title":{"rendered":"App Growth Metrics &#8211; The Key User Acquisition Metrics To Follow"},"content":{"rendered":"<p>[vc_row el_class=&#8221;front-hero-section&#8221;][vc_column width=&#8221;1\/2&#8243; css=&#8221;.vc_custom_1582730807176{background-image: url(https:\/\/persona.ly\/glossary\/\/wp-content\/uploads\/2020\/02\/group-19.svg?id=58) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: contain !important;}&#8221; el_class=&#8221;hero-first-section&#8221;][vc_column_text el_class=&#8221;page-heading&#8221; css=&#8221;.vc_custom_1593096796228{margin-top: 30px !important;}&#8221;]<\/p>\n<h1><a href=\"\/glossary\/\">UA <span class=\"color-ancient\">Glossary<\/span><\/a><\/h1>\n<p>[\/vc_column_text][vc_column_text]<p>Your source for everything mobile UA, from the basics to contentious standards, the glossary can help and inform both aspiring growth managers and experienced mobile app developers<\/p>\n[\/vc_column_text]<div class=\"ult-spacer spacer-69eb9b05f30e5\" data-id=\"69eb9b05f30e5\" data-height=\"105\" data-height-mobile=\"0\" data-height-tab=\"\" data-height-tab-portrait=\"\" data-height-mobile-landscape=\"0\" style=\"clear:both;display:block;\"><\/div>[\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;60&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; el_class=&#8221;hero-section-image&#8221;][\/vc_column][\/vc_row][vc_section css=&#8221;.vc_custom_1583429011820{background-image: url(https:\/\/persona.ly\/glossary\/\/wp-content\/uploads\/2020\/03\/bg_repeater_with_bg_svg.svg?id=320) !important;}&#8221; el_class=&#8221;post-content-section archive-page-custom single-subcat&#8221;][vc_row el_class=&#8221;covered-grace-font&#8221;][vc_column width=&#8221;2\/3&#8243; el_class=&#8221;gap-in-end-single&#8221;][vc_column_text][\/vc_column_text][vc_column_text]<style>.wp-show-posts-columns#wpsp-1188 {margin-left: -2em; }.wp-show-posts-columns#wpsp-1188 .wp-show-posts-inner {margin: 0 0 2em 2em; }<\/style><section id=\"wpsp-1188\" class=\" wp-show-posts\" style=\"\"><article class=\" wp-show-posts-single wpsp-clearfix post-1191 post type-post status-publish format-standard hentry category-app-growth-metrics-the-key-user-acquisition-metrics-to-follow tag-action-rate tag-ad-spend tag-app-growth tag-cac tag-click-to-install tag-click-through-rate tag-cost-per-install-cost-per-action tag-cpa tag-cpe-offers tag-cpi tag-cti tag-ctr tag-customer-acquisition-cost tag-growth-metrics tag-install-per-mile tag-ipm tag-k-factor tag-kpi tag-mobile-ua-kpi tag-mobile-user-acquisition tag-post-install-metrics tag-pre-install-metrics\" itemtype=\"http:\/\/schema.org\/CreativeWork\" itemscope><div class=\"wp-show-posts-inner\" style=\"\">\t\t\t\t\t\t<header class=\"wp-show-posts-entry-header\">\n\t\t\t\t\t\t\t<h1 class=\"wp-show-posts-entry-title\" itemprop=\"headline\"><a href=\"https:\/\/persona.ly\/glossary\/app-growth-metrics-the-key-user-acquisition-metrics-to-follow\/\" rel=\"bookmark\">App Growth Metrics &#8211; The Key User Acquisition Metrics To Follow<\/a><\/h1><div class=\"wp-show-posts-entry-meta wp-show-posts-entry-meta-below-title post-meta-inline\"><span class=\"wp-show-posts-posted-on wp-show-posts-meta\">\n\t\t\t\t\t<a href=\"https:\/\/persona.ly\/glossary\/app-growth-metrics-the-key-user-acquisition-metrics-to-follow\/\" title=\"1:48 pm\" rel=\"bookmark\"><time class=\"wp-show-posts-entry-date published\" datetime=\"2022-02-10T13:48:24+00:00\" itemprop=\"datePublished\">February 10, 2022<\/time><time class=\"wp-show-posts-updated\" datetime=\"2024-01-24T13:39:03+00:00\" itemprop=\"dateModified\">January 24, 2024<\/time><\/a>\n\t\t\t\t<\/span><\/div>\t\t\t\t\t\t<\/header><!-- .entry-header -->\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"wp-show-posts-entry-content\" itemprop=\"text\">\n\t\t\t\t\t\t\t<p>[vc_row][vc_column el_class=&#8221;normal-text&#8221;][vc_single_image image=&#8221;1209&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; el_class=&#8221;single-post-image-back&#8221;][vc_column_text]<span style=\"font-weight: 400;\">When tracking the performance of in-app mobile marketing campaigns, there are endless dimensions and a lot of metrics to consider. Before you start looking at the data, it\u2019s better to gain an understanding of which data you want to be looking at, and what should be considered when analyzing the data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Metrics can be divided into different categories, the ones we\u2019ll be referring to in this article are <\/span><span style=\"font-weight: 400;\">initial and cost-related KPIs<\/span><span style=\"font-weight: 400;\">, with a distinction between <\/span><span style=\"font-weight: 400;\">pre-install and post-install KPIs<\/span><span style=\"font-weight: 400;\">. The second part of metrics KPIs refers to<\/span><span style=\"font-weight: 400;\"> value-based metrics<\/span><span style=\"font-weight: 400;\">, which we\u2019ve covered in <\/span><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/performance-metrics\/the-cornerstone-kpis-for-mobile-ua\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><i><span style=\"font-weight: 400;\">The Cornerstone KPIs for Mobile UA<\/span><\/i><\/a><span style=\"font-weight: 400;\"> and include retention rate, ARPU, ROAS, and LTV.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;Why Pre-install Metrics Matter &#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading blue-back&#8221; link=&#8221;url:%23|||&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Pre-install metrics help gain early knowledge of the performance of the campaign. While an install may not be the goal for most marketers (KPIs will usually focus on ROAS, whether it\u2019s dependent on retention or deposits), it\u2019s still a significant performance indicator.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While most marketers focus heavily on conversion rate (impression to click), we argue that there are other, more reliable, early indicators that can be used to predict the performance of the campaign, such as IPM (install per mille).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before full transparency became the standard for marketers, granular data wasn\u2019t as accessible as it is today. App marketers had to rely on conversion rates and other pre-install metrics in order to estimate the quality of their partners. Based on the data, marketers chose their partners and allocated the highest spend to those who showed to bring the most engaged users in the promise of growth potential and quality.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These days, when granular data is available, and when there\u2019s more transparency, CR (conversion rate) is not as meaningful as it once was but both pre and post-install data are considered at every stage of a user acquisition campaign. CPI (cost per install) and the metrics around it aren\u2019t the one size fits all solution that they used to be, but they should still be optimized towards, within reason, without compromising the performance down the funnel. <\/span>[\/vc_column_text][vc_column_text]<!-- Widget Shortcode --><div id=\"custom_html-7\" class=\"widget_text widget widget_custom_html widget-shortcode area-sidebar-form-mobile \"><div class=\"textwidget custom-html-widget\"><div class=\"subscribe-footer-from-holder sidebar-form-intouch\">\r\n<h3>Looking for app growth opportunities?<\/h3>\r\n<p>Leave your email and we'll get \r\nback to you!<\/p>\r\n<form class=\"subscribe-footer-from\">\r\n\t<div class=\"subscribe-footer-from-email-holder\"><input type=\"email\" class=\"subscribe-footer-email\" placeholder=\"Enter your email\"><\/div>\r\n<button class=\"subscribe-footer-submit\">\r\n\tGet in Touch\r\n<\/button>\r\n<\/form>\r\n<\/div>\r\n<div class='subscribe-footer-from-thankyou gsifthy'>\r\n\t<img alt=\"\" src=\"\/glossary\/wp-content\/uploads\/2020\/08\/02.svg\">\r\n<h3>Thank you for your interest!<\/h3>\r\n<p>Our team will contact you with more details.<\/p>\r\n<\/div>\r\n<div class=\"search-sidebar-footer-holder gisf\"><\/div><\/div><\/div><!-- \/Widget Shortcode -->[\/vc_column_text][vc_column_text][\/vc_column_text][vc_custom_heading text=&#8221;Considering Ad Spend &#8211; Scalability and Relative Success&#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading purple-back&#8221; link=&#8221;url:%23|||&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Ad spend is not a measure of performance in and of itself but it still plays a role when you weigh performance. A campaign with more spend but lesser results might still be better than a campaign with less volume and better relative results.<\/span>[\/vc_column_text][vc_column_text]<span style=\"font-weight: 400;\">To exemplify it, we\u2019ll use two fictional campaigns:<\/span><\/p>\n<ul class=\"default-list\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Campaign A had a budget of $100 and delivered 30% D7 ROAS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Campaign B had a budget of $1000 and delivered 20% D7 ROAS. <\/span><\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_column_text]<span style=\"font-weight: 400;\">When you look at ROAS alone, campaign A delivered better results than campaign B but if you look at the revenue, campaign A\u2019s revenue was $30, whereas campaign B\u2019s revenue was $200.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Campaign B delivered higher revenue by utilizing a bigger spending budget. Since it\u2019s not a given that campaign A is scalable, campaign B is the better-performing one, in this instance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If campaign A can deliver the same quality of results with x10 the budget, it\u2019d be the better-performing campaign.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The takeaway here is that the quality of the campaign is related to its scale and should be measured against it.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;CPM (Cost Per Mille), dCPM (Dynamic Cost Per Mille) and eCPM (Efficient Cost Per Mille)&#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading blue-back&#8221; link=&#8221;url:%23|||&#8221;][vc_column_text]<span style=\"font-weight: 400;\">In programmatic media buying, where advertisers pay for impressions, the price is normally set in CPM (Cost Per Mille, where &#8220;Mille&#8221; is the Latin word for thousand). CPM is a common metric used in advertising to denote the cost of 1,000 impressions or views of an advertisement. It measures how much an advertiser pays for a thousand impressions of their ad.<br \/>\n\u00a0<\/span><br \/>\n[\/vc_column_text][vc_single_image image=&#8221;1546&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; el_class=&#8221;single-post-image-back&#8221;][vc_column_text]<span style=\"font-weight: 400;\">For example, if an advertiser pays $500 for 100,000 impressions, the CPM would be calculated as follows:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CPM =($500\/100,000)*1000 = $5<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, in this case, the cost per thousand impres<\/span><span style=\"font-weight: 400;\">sions (CPM) is $5.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CPM is commonly used in digital advertising, where advertisers pay for the number of times their ad is displayed to users, regardless of whether they click on it. It provides advertisers with a standardized way to compare the cost of reaching their target audience across different websites or advertising platforms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the world of programmatic, it\u2019s also not uncommon to hear <strong>dCPM<\/strong> and <strong>eCPM<\/strong>. dCPM (Dynamic Cost Per Mille) and eCPM (Effective Cost Per Mille) are both metrics used to measure the cost of 1,000 impressions. However, they represent different aspects of the advertising performance.<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;dCPM (Dynamic Cost Per Mille)&#8221; font_container=&#8221;tag:h3|text_align:left|color:%23191536&#8243; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-subheading&#8221;][vc_column_text]<span style=\"font-weight: 400;\">dCPM is a bidding strategy used in programmatic advertising. It refers to<\/span><b> the maximum amount an advertiser is willing to pay for 1,000 impressions<\/b><span style=\"font-weight: 400;\">, and this amount can change dynamically based on the likelihood of conversion or other specified goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bidding is adjusted in real time based on the predicted value of each impression, aiming to maximize the ROAS.<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;eCPM (Effective Cost Per Mille)&#8221; font_container=&#8221;tag:h3|text_align:left|color:%23191536&#8243; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-subheading&#8221;][vc_column_text]<span style=\"font-weight: 400;\">eCPM is a metric that represents the <\/span><b>estimated revenue for a publisher (app developer) per 1,000 impressions<\/b><span style=\"font-weight: 400;\">. It is calculated by dividing total earnings by the number of impressions and then multiplying by 1,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">eCPM provides an effective way to compare the revenue generated from different advertising channels or platforms, regardless of the pricing model (e.g., CPC, CPM, or CPA).<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/p>\n<p><span style=\"font-weight: 400;\">In summary, dCPM is related to the bidding strategy in programmatic advertising, where the cost per mille can vary dynamically based on certain factors. On the other hand, eCPM is a metric used to measure the effective <\/span><b>revenue <\/b><span style=\"font-weight: 400;\">for the publisher generated for 1,000 impressions, providing a standard comparison across different advertising channels or platforms.<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;CTR and CTI (Click-Through Rate and Click to Install) &#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading blue-back&#8221; link=&#8221;url:%23|||&#8221;][vc_single_image image=&#8221;1210&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; el_class=&#8221;single-post-image-back&#8221;][vc_column_text]<span style=\"font-weight: 400;\">The click-through rate is a favorable marketing KPI. It signifies a stage in the funnel and proves to advertisers that the creative and targeting work, at least to some extent &#8211; the ad\u2019s been clicked.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With that being said, in some cases, CTR is given greater gravity than it should. In-app ads work great when they reach their target audience, when they\u2019re well done, and when they\u2019re served at the most opportune time but they\u2019re<\/span><span style=\"text-decoration: underline;\"><span style=\"font-weight: 400;\"> not as reliable as other metrics. <\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/span><\/p>\n<p><span style=\"font-weight: 400;\">In-app ads, especially interstitial ads, may be mistakenly clicked more often than others. Simply put, since interstitial ads take up the whole screen, and the <\/span><i><span style=\"font-weight: 400;\">close ad<\/span><\/i><span style=\"font-weight: 400;\"> sign appears a few seconds into the ad, some clicks are just wrongly clicked, without signifying users\u2019 actual intent.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If this is an issue, it\u2019d result in inflated CTR, which can be confirmed by a decrease in CTI alongside it (it means people are clicking, but have no intention to install, which means the targeting is off).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With more granular data available, KPI goals gear towards performance. While CTR can demonstrate issues relating to creatives and targeting, a metric such as IPM may be more indicative of performance.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;IPM (Install Per Mille)&#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading purple-back&#8221; link=&#8221;url:%23|||&#8221;][vc_single_image image=&#8221;1211&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; el_class=&#8221;single-post-image-back&#8221;][vc_column_text]<span style=\"font-weight: 400;\">IPM may not have CTR\u2019s reputation, but when it comes to performance-based in-app campaigns, it\u2019s one of <\/span><span style=\"font-weight: 400;\">t<span style=\"text-decoration: underline;\">he best early indicators of the campaign\u2019s targeting effectiveness.\u00a0<\/span><\/span><\/p>\n<p><span style=\"font-weight: 400;\">IPM measures how many users, out of 1000 impressions, installed the app. The higher the IPM, the better. High IPM indicates that your campaign is reaching the right audience and that the creatives are working.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike CTR, IPM is a better metric to estimate users\u2019 intent since an app install is extremely less likely to be accidental than an ad click. With that being said, it does not stand alone. It\u2019s a great <\/span><span style=\"font-weight: 400;\">early indicator<\/span><span style=\"font-weight: 400;\">, but a high IPM should be looked at alongside retention rates and other post-install metrics, to ensure quality is not being negatively affected.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;Post-install Metrics&#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading blue-back&#8221; link=&#8221;url:%23|||&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Post-install metrics, as we\u2019ve previously mentioned, can be divided into cost-related metrics and <\/span><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/performance-metrics\/the-cornerstone-kpis-for-mobile-ua\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><span style=\"font-weight: 400;\">value-based metrics<\/span><\/a><span style=\"font-weight: 400;\">. Cost-related metrics, though they\u2019re more down the funnel than pre-install metrics, still serve as early indicators and help estimate the quality of the campaign and the users\u2019 potential.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Post-install metrics are usually measured and tracked through an <\/span><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/attribution\/mmps\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><span style=\"font-weight: 400;\">MMP<\/span><\/a><span style=\"font-weight: 400;\">. They may also be measured and tracked internally, but most developers prefer to rely on 3rd parties than build the substantial infrastructure themselves.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;Install to Target \\ Action Rate &#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading purple-back&#8221; link=&#8221;url:%23|||&#8221;][vc_single_image image=&#8221;1212&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; el_class=&#8221;single-post-image-back&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Install to target event is the ratio between users who installed and those of them who completed a predefined valuable event. This event can range from completing a level in a game to making a purchase, depending on the relevant app\u2019s main KPIs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your aim is to acquire engaged users for a gaming app, your event can be set as completing level 10. On the other hand, if your aim is to have users subscribe to your app, then that may be the predefined event, and so on.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This metric is a strong indicator for gauging value in performance and can provide further insight on other metrics, such as IPM. Through this rate, marketers can verify that the users installing the app are users that, in the future, have the potential to return their investment (an early indication of what their ROAS might be), assuming the predefined event is set in a way that signifies users\u2019 future interactions with the app.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without diving too deeply into the numbers, setting a target event should be done in an effective way that underlines the bottom-line goals for the app. For example, a 1D deposit for free-to-play gaming apps is usually a good indicator of subsequent deposits and high ROAS, and as such, can be set as an install to action goal and serve as an early indication of the effectiveness of the campaign.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;Calculating New User Costs &#8211; CPI, CPA, CAC &#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading blue-back&#8221; link=&#8221;url:%23|||&#8221;][vc_column_text]<span style=\"font-weight: 400;\">The cost of a new user can be measured in different ways, depending on the definition of a new user. If you measure a new user by <\/span><i><span style=\"font-weight: 400;\">users who installed <\/span><\/i><span style=\"font-weight: 400;\">then CPI will be your metric, but as the industry is shifting more towards down-funnel performance-based campaigns, setting CPA KPIs, and lowering the risk involved in running UA campaigns at scale, is becoming the standard.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s stand on the differences between these 3 metrics:\u00a0<\/span>[\/vc_column_text][vc_column_text]<\/p>\n<ul class=\"default-list\">\n<li aria-level=\"1\"><b>CPI (Cost Per Install) <\/b><span style=\"font-weight: 400;\">is simply calculated by taking the spend and dividing it by the number of installs.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><b>CPA (Cost Per Action \\ Acquisition)<\/b><span style=\"font-weight: 400;\"> is calculated by dividing the spend by the number of <\/span><i><span style=\"font-weight: 400;\">actions<\/span><\/i><b><i>.\u00a0<\/i><\/b><\/li>\n<li aria-level=\"1\"><b>CAC (Customer Acquisition Cost)<\/b><span style=\"font-weight: 400;\"> is calculated by dividing, once again, the spend in the number of <\/span><i><span style=\"font-weight: 400;\">actions<\/span><\/i><span style=\"font-weight: 400;\">. Those actions may be identical to the defined actions in the CPA metric, or they may differ.\u00a0<\/span><\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_column_text]<span style=\"font-weight: 400;\">These metrics can be aggregated by creatives, campaigns, sources, vendors, and more depending on your purpose of comparison. If you want, for example, to compare the performance of a certain creative, you should measure it against other creatives, preferably from the same vendor and identical spend.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;The Difference Between CPA and CAC &#8221; font_container=&#8221;tag:h3|text_align:left|color:%23191536&#8243; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-subheading&#8221;][vc_column_text]<span style=\"font-weight: 400;\">CPA can be defined as any action in the app, from completing level 1 to registering, subscribing, making a purchase, and so on. The estimated cost for this action will vary accordingly. For example, an action defined as completing level 1 on a monetization-based game will probably cost significantly less than an action defined as a paid monthly subscription for a service, since it\u2019s relatively less competitive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CPA can serve marketers as the final goal or as a step along the way. If we continue along with the examples above, the gaming app can set its CPA by a level 1 completion but, in order to calculate its CAC, they\u2019ll look at users who reached level 4 on D1, because it signifies the point from which users start using the app regularly.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the subscription-based app, they may set both CPA and CAC as the same goal &#8211; subscribing to the app, or they may separate between CPA, set as registration, and CAC, set as a subscription, knowing that registration for the free version means they\u2019re likely to convert to a paid subscription.\u00a0<\/span>[\/vc_column_text]<div class=\"aio-icon-component   info-noty blue-noty style_1\"><div id=\"Info-box-wrap-4129\" class=\"aio-icon-box left-icon\" style=\"\"  ><div class=\"aio-icon-left\"><div class=\"ult-just-icon-wrapper  \"><div class=\"align-icon\" style=\"text-align:center;\">\n<div class=\"aio-icon-img \" style=\"font-size:71px;background:rgba(255,255,255,0.01);display:inline-block;\" >\n\t<img class=\"img-icon\" alt=\"Info Container\" src=\"https:\/\/persona.ly\/glossary\/wp-content\/uploads\/2020\/03\/combined-shape-2.svg\"\/>\n<\/div><\/div><\/div><\/div><div class=\"aio-ibd-block\"><div class=\"aio-icon-header\" ><h3 class=\"aio-icon-title ult-responsive\"  data-ultimate-target='#Info-box-wrap-4129 .aio-icon-title'  data-responsive-json-new='{\"font-size\":\"\",\"line-height\":\"\"}'  style=\"color:#191536;\">Multi-Reward CPE Offers<\/h3><\/div> <!-- header --><div class=\"aio-icon-description ult-responsive\"  data-ultimate-target='#Info-box-wrap-4129 .aio-icon-description'  data-responsive-json-new='{\"font-size\":\"\",\"line-height\":\"\"}'  style=\"color:#191536;\"><span style=\"font-weight: 400;\">Multi-reward CPE offers users an incentivized offer, but unlike other offers, it has different levels of rewards. If users follow along and engage with the app over time they are continuously rewarded. This helps bring users into new apps with an incentive but by the time they\u2019re done with the rewards they already know the app well enough and are likely to continue engaging with it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An incentivized offer usually delivers initial results but retention drops over time. The multi-reward model, if done correctly, can get users to shift from incentive-based engagements to engagements at will.\u00a0<\/span><\/div> <!-- description --><\/div> <!-- aio-ibd-block --><\/div> <!-- aio-icon-box --><\/div> <!-- aio-icon-component -->[vc_custom_heading text=&#8221;K-Factor &#8211; Estimating Viral Growth &#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading blue-back&#8221; link=&#8221;url:%23|||&#8221;][vc_column_text]<span style=\"font-weight: 400;\">The term K Factor originated in the medicine world, where it was used to describe the spread of a virus (i.e, how infectious it is.) In the mobile marketing world, the context is much more positive, since virality is a positive quality for an app.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">K factor, in our context, is used to calculate the ratio between paid users and organic users, that installed the app as a result of running paid campaigns. These organic users may have installed from a known referral, such as a user\u2019s invitation code, or from an unknown source, by simply opening the app store and downloading the app &#8211; there are various common ways of calculating it, and depending on how conservative you are in your approach to analysis, you\u2019ll decide if to only measure organic users that can be directly associated with UA or ones that are probabilistically associated with it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To make things simple, think about starting a UA campaign in a new country (where you have no existing users or a negligible number of users). Your goal is 1,000 paid installs and you start running your paid UA campaign, while also measuring organic installs. By the end of the campaign, you\u2019re left with 1000 paid installs and 100 organic installs (1,100 overall). This means that your paid UA efforts yielded 100 organic installs and that your K factor in that country is 1.1.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;The Importance of K Factor&#8221; font_container=&#8221;tag:h3|text_align:left|color:%23191536&#8243; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-subheading&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Measuring K Factor helps you<\/span><\/p>\n<ol class=\"default-list\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gain a better understanding of the effect of your inorganic installs on organic installs (if it\u2019s lower than 1 then there\u2019s room for improvement.)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gain insights into how effective or ineffective your in-app sharing capabilities are. Are users utilizing them? How can it be improved?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compare your virality between different countries &#8211; where it\u2019s working, where it\u2019s not, and what can be improved.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get an overall accurate picture of your paid UA efforts. Organic users are usually the best-performing users, and if your paid UA increases the number of these users, it should be taken into account when estimating campaign and acquisition costs.\u00a0<\/span><\/li>\n<\/ol>\n<p>[\/vc_column_text][vc_column_text]<span style=\"font-weight: 400;\">Much like any data, there\u2019s an abundance of metrics that can be used for measuring and tracking UA campaigns. Marketers should research and realize which metrics are the most valuable for their campaigns and set different key metrics for their different &#8216;lifetime&#8217; stages (early indicators for the start of the campaign, and value-based for a more advanced campaign, for example).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The goal of a marketing manager should be to effectively choose the most informative KPIs for their use case and use them to deduce where their marketing dollars should go in a very short amount of time.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;What\u2019s Next? &#8221; use_theme_fonts=&#8221;yes&#8221; el_class=&#8221;styled-heading purple-back&#8221; link=&#8221;url:%23|||&#8221;][vc_column_text]For further reading, we recommend these related topics:[\/vc_column_text][vc_column_text]<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/performance-metrics\/the-cornerstone-kpis-for-mobile-ua\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><span style=\"font-weight: 400;\">Cornerstone KPIs for mobile UA<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/fraud-prevention\/attribution-manipulation-click-spamming-and-click-hijacking\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><span style=\"font-weight: 400;\">Attribution manipulation &#8211; click spamming and click hijacking<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/real-time-bidding\/data-activation-in-mobile-ua\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><span style=\"font-weight: 400;\">Data activation in mobile UA<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/real-time-bidding\/the-basics-of-rtb\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><span style=\"font-weight: 400;\">The basics of RTB<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a class=\"custom-link-content\" href=\"https:\/\/persona.ly\/glossary\/attribution\/user-acquisition-and-retargeting-in-ios-14\/?utm_source=glossary&amp;utm_medium=post&amp;utm_campaign=metrics\"><span style=\"font-weight: 400;\">User acquisition and retargeting in iOS14<\/span><\/a><\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n\t\t\t\t\t\t<\/div><!-- .entry-content -->\n\t\t\t\t\t<\/div><!-- wp-show-posts-inner --><div class=\"wpsp-clear\"><\/div><\/article><\/section><!-- .wp-show-posts -->[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/3&#8243; el_class=&#8221;gap-in-end-single single-subcat-widget&#8221;][vc_column_text][\/vc_column_text][vc_single_image image=&#8221;979&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; onclick=&#8221;custom_link&#8221; img_link_target=&#8221;_blank&#8221; el_class=&#8221;hide-mobile&#8221; link=&#8221;https:\/\/persona.ly\/glossary\/real-time-bidding\/data-activation-in-mobile-ua\/?utm_source=glossary&amp;utm_medium=entry&amp;utm_campaign=metrics&#8221;][vc_single_image image=&#8221;962&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; onclick=&#8221;custom_link&#8221; img_link_target=&#8221;_blank&#8221; el_class=&#8221;stick-img-holder-single hide-mobile&#8221; link=&#8221;https:\/\/persona.ly\/context-distance-calculator?utm_source=glossary&amp;utm_medium=entry&amp;utm_campaign=metrics&#8221;][vc_column_text]<!-- Widget Shortcode --><div id=\"custom_html-6\" class=\"widget_text widget widget_custom_html widget-shortcode area-sidebar-form \"><div class=\"textwidget custom-html-widget\"><div class=\"subscribe-footer-from-holder sidebar-form-intouch\">\r\n<h3>Looking for app growth opportunities?<\/h3>\r\n<p>Leave your email and we'll get \r\nback to you!<\/p>\r\n<form id=\"subscribe-footer-from\" class=\"subscribe-footer-from\">\r\n\t<div class=\"subscribe-footer-from-email-holder\"><input type=\"email\" class=\"subscribe-footer-email\" placeholder=\"Enter your email\"><\/div>\r\n<button data-sitekey=\"6Lcl6eIkAAAAAIJsyVC0Qmc2ZTAgfz3pqyAeJjYI\" data-callback=\"onSubscribeFooterSubmit\" data-action=\"submit\" class=\"g-recaptcha subscribe-footer-submit\">\r\n\tGet in Touch\r\n<\/button>\r\n<\/form>\r\n<\/div>\r\n<div class='subscribe-footer-from-thankyou gsifthy'>\r\n\t<img alt=\"\" src=\"\/glossary\/wp-content\/uploads\/2020\/08\/02.svg\">\r\n<h3>Thank you for your interest!<\/h3>\r\n<p>Our team will contact you with more details.<\/p>\r\n<\/div>\r\n<div class=\"search-sidebar-footer-holder gisf\"><\/div><\/div><\/div><!-- \/Widget Shortcode -->[\/vc_column_text][\/vc_column][\/vc_row][\/vc_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row el_class=&#8221;front-hero-section&#8221;][vc_column width=&#8221;1\/2&#8243; css=&#8221;.vc_custom_1582730807176{background-image: url(https:\/\/persona.ly\/glossary\/\/wp-content\/uploads\/2020\/02\/group-19.svg?id=58) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: contain !important;}&#8221; el_class=&#8221;hero-first-section&#8221;][vc_column_text el_class=&#8221;page-heading&#8221; css=&#8221;.vc_custom_1593096796228{margin-top: 30px !important;}&#8221;] UA Glossary [\/vc_column_text][vc_column_text][\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;60&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; el_class=&#8221;hero-section-image&#8221;][\/vc_column][\/vc_row][vc_section css=&#8221;.vc_custom_1583429011820{background-image: url(https:\/\/persona.ly\/glossary\/\/wp-content\/uploads\/2020\/03\/bg_repeater_with_bg_svg.svg?id=320) !important;}&#8221; el_class=&#8221;post-content-section archive-page-custom single-subcat&#8221;][vc_row el_class=&#8221;covered-grace-font&#8221;][vc_column width=&#8221;2\/3&#8243; el_class=&#8221;gap-in-end-single&#8221;][vc_column_text][\/vc_column_text][vc_column_text][\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/3&#8243; el_class=&#8221;gap-in-end-single single-subcat-widget&#8221;][vc_column_text][\/vc_column_text][vc_single_image image=&#8221;979&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; onclick=&#8221;custom_link&#8221; img_link_target=&#8221;_blank&#8221; el_class=&#8221;hide-mobile&#8221; link=&#8221;https:\/\/persona.ly\/glossary\/real-time-bidding\/data-activation-in-mobile-ua\/?utm_source=glossary&amp;utm_medium=entry&amp;utm_campaign=metrics&#8221;][vc_single_image image=&#8221;962&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; onclick=&#8221;custom_link&#8221; img_link_target=&#8221;_blank&#8221; el_class=&#8221;stick-img-holder-single hide-mobile&#8221; link=&#8221;https:\/\/persona.ly\/context-distance-calculator?utm_source=glossary&amp;utm_medium=entry&amp;utm_campaign=metrics&#8221;][vc_column_text][\/vc_column_text][\/vc_column][\/vc_row][\/vc_section]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":660,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.10 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>App Growth Metrics - The Key User Acquisition Metrics To Follow - The UA Glossary - Persona.ly<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/persona.ly\/glossary\/performance-metrics\/app-growth-metrics-the-key-user-acquisition-metrics-to-follow\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"App Growth Metrics - The Key User Acquisition Metrics To Follow - The UA Glossary - Persona.ly\" \/>\n<meta property=\"og:description\" content=\"[vc_row el_class=&#8221;front-hero-section&#8221;][vc_column width=&#8221;1\/2&#8243; 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