Mobile gaming applications have become more and more popular in recent years as a result of increasing mobile device usage. In today’s world, the mobile game industry is strong enough to compete with computer games.
Accordingly, mobile game applications owners in the market began to explore ways to acquire more users for their applications, and this has increased the importance of User Acquisition (UA) in the app marketing sector.
In today’s blog post, we will focus on the most commonly used terms related to mobile game user acquisition and share with you what they mean. Before we begin, let’s take a closer look at the importance of user acquisition for app marketing.
Why Mobile Game Acquisition is Crucial For Game Owners
As mentioned above, as a result of the rapid increase in the use of smartphones and tablets, the mobile gaming industry has grown rapidly in recent years and has made it an attractive market for game developers. This market is now a major source of revenue for mobile game owners.
So much so that, the mobile gaming industry has become a market of $137.98 billion, today. You can see above that the statistics keep rising every year. The mobile gaming industry is expected to hold $181.1 billion by the year 2021.
These figures are enough to explain how profitable the mobile gaming market is. As a result, hundreds of new game applications are added to the app stores every year. Cause the owners of these applications want to get their share of the cake.
However, very few of these applications are preferred by the users, and only a small number of them become popular worldwide. For this reason, application owners give importance to user acquisition in order to show their applications to bigger audiences.
Now that we talked about the importance of User Acquisition for app marketing, let’s take a look at the most commonly used terms and their meanings in this field.
Most Popular Mobile Game Acquisition Terms
Install rate (IR)
Install Rate is the ratio of the users that downloaded your application after clicking an advertisement.
You can calculate your Install Rate by dividing your app installs by the number of ad clicks.
Conversion rate (CVR)
You can calculate your Conversion Rate by dividing your app installs by impressions.
Cost Per Install (CPI)
Cost Per Install is the cost that advertisers pay when users install your mobile application after seeing an ad.
You can calculate your CPI rate by dividing your ad costs by the total number of your app installs you received during the campaign period.
Cost Per Acquisition (CPA)
Cost Per Acquisition is the cost to acquire a customer that pays for you or performs desired actions within your advertising campaign.
You can calculate your CPA by dividing your cost by your conversions.
Cost Per Mille (CPM)
Cost Per Mille (CPM) is the cost that advertisers pay for 1000 views or clicks of their advertisements.
You can calculate your CPM by dividing your ad cost by the total number of impressions, and then multiplying the result by one thousand.
Cost Per Click (CPC)
Cost Per Click (CPC) is the cost that advertisers pay for each click users perform on an ad.
You can calculate your CPC bu dividing your total campaign cost by the total number of clicks.
Click-Through Rate (CTR)
CTR is the ratio that shows you the number of users that clicked on an advertisement after viewing it.
You can calculate your Click-Through-Rate by dividing the total ad click number by the number of times the advertisement was shown.
Return of Investment (ROI)
ROI is one of the most popular terms of mobile marketing world. It shows the total efficiency of your investments.
You can calculate your ROI rate by dividing the total result of your investment by the total cost of your investment, then multiply the result by 100.
Lifetime Value (LTV)
Lifetime Value shows you the profit you will gain from a customer over time.
You can visit the Mobile Marketing Glossary to learn more about mobile marketing terms.