After the app was updated to fix major bugs, an active advertising campaign began on social networks. The number of users of the app grew to 17 thousand people, which led to an increase in income to $ 31 thousand. It is necessary to estimate how much the average profit per person increased with the arrival of new users.
Before the arrival of new users, the income was $19 thousand, and the total number of users was 8547.
Let's determine the difference: the number of users increased by 8453, and the income increased by $12 thousand. Let's calculate Cumulative ARPU:
Cumulative ARPU = 12,000/8453 = $1.4.
Determining ROI to evaluate the return on investment of your app advertising
New software has been engineer data package created. The project is expected to be successful. In order to increase the payback of the application, it was decided to start its active promotion. The company launched advertising campaigns in social networks and used contextual advertising through Google Ads. It is necessary to conduct an analysis to determine which method brought higher profits.
To calculate ROI, investments in advertising are subtracted from total income, then the result is divided by the amount of investment and multiplied by 100%. For example, if $150 was invested in social media marketing, $120 in contextual advertising, and the income was $278 and $300 respectively, then the ROI for social media will be (278 - 150) / 150 × 100 = 85%, and for contextual advertising (300 - 120) / 120 × 100 = 150%. Based on the results, contextual advertising brought a significantly higher ROI than advertising on social networks.
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Calculating Average Check Transactions in a Visual Novel Style Game
After the game was launched, users were able to purchase lives and coins to buy character clothing. There are various offers. To determine user preferences, it is necessary to calculate the average purchase check.
In this case, a formula is used that takes into account the total income after deducting commissions and the number of transactions made. During the three weeks of the game, 1,329 transactions were made. The income without commissions was $2,167. According to the formula, the average check is 2,167/1,329 = 1.6. Considering that the basic offer in the store costs $1.5, we can conclude that it is chosen more often. However, it is possible that some users purchased one of the two alternative options, costing $2.5 and $7.
Determining LTV for a single user of a shooter game
In a shooter game, the main functions require payment. This means buying various weapons and equipment for in-game coins. However, collecting funds takes a lot of time. Because of this, many users prefer to buy them for real money in order to get the necessary equipment faster. To analyze the company's statistics, it is necessary to determine how much money each user of the game spends on average per month.
Calculations in Marketing
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To do this, ARPU is calculated and multiplied by the entire period of use of the application by the user. Let's assume that on average the user spends $23 per month in the application. For a specific person using the application for 12 months, the total amount spent will be 23 × 12 = $276. Therefore, one user spends on average about $276 in the application over the course of a year.