SIX MILE MEDIA
FREQUENTLY ASKED QUESTIONS
Most frequent questions and answers
User acquisition is an essential part of any app’s marketing strategy. It takes the right supply channels, targeting technology, and creatives to acquire high lifetime value users who are ROI positive. In other words, it takes the right partner. Six Mile Media’s team of mobile advertising experts works alongside your user acquisition team to acquire loyal users who stick around and drive revenue – that means users who reach level twelve, watch mobile video ads, and make in-app purchases.
Mobile app monetization is a means by which app developers generate revenue. There are various forms of app monetization, including in-app ads, in-app purchases, one-time payments, and subscriptions,
Mobile app advertising is a popular monetization strategy for app developers, in which app developers get paid to serve ads on their app.
The mobile app ads are served through a mobile app advertising network, which connects advertisers and developers. The app requests an ad from the network, and the network uses algorithms to identify and deliver the highest paying ad to the user in real time.
CPA or cost per action marketing is a pricing model used in mobile user acquisition campaigns in which advertisers choose a post-install action to measure, and only pay for users who engage in that action. That means in order for advertisers to pay, the user must see their in-app ad, install their app, and complete the action. In CPA advertising, advertisers set the action to whatever they’d like, for example: signing up for a free trial, registering for a free download, buying a product, etc.
CPM, or Cost Per Mille, is a pricing model referring to the cost of 1,000 ad impressions. It’s sometimes referred to as Cost Per Thousand (with the “M” standing for ‘mille’ or Latin for 1,000). CPM is an important metric for both advertisers and app developers, since it defines how much ad space will cost, and therefore how much developers or publishers will get paid for every 1,000 unique impressions. Today, CPM is a regularly employed method for pricing mobile app advertising space.One common way to determine the efficiency of a CPM campaign is to look at click-through rates, or the ratio of clicks an ad receives compared to overall impressions.Unlike other measures such as cost per click (CPC), CPM pricing is ideal for campaigns with a goal of increasing exposure and brand awareness instead of specific user action goals, like installing an app or registering for a service.CPM is also used as part of measuring effective cost per thousand impressions, or eCPM. While both measure costs for 1,000 impressions, the former is exclusively based on how much an advertiser is willing to spend on 1,000 ad impressions, and typically exists in the context of brand awareness campaigns that don’t have specific performance goals. The advertiser is looking for a specific amount of impressions, or eyeballs, and that is what they pay for.In contrast, eCPM also includes CPM but measures the cost of 1,000 impressions in the context of a campaign with a pricing model based on performance. In practice, this means that the cost per thousand impressions is calculated based on how many impressions it takes to achieve a performance goal, like an install, or registration.Calculating CPM requires having some basic data on an app’s ad impressions – such as the total cost of the campaign, as well as the number of impressions it received. To measure CPM, you divide the total cost of the campaign by the number of impressions. The result is then multiplied by 1,000, generating the CPM figure. For example, if the total cost to run a campaign is $300, and it receives 5000 impressions. The CPM for the ad would be $60.
Cost per click advertising (CPC) is a pricing model used in mobile user acquisition campaigns in which app advertisers pay each time a user clicks on their in-app ad. CPC = advertising cost / clicks
Cost per engagement, or CPE, is a pricing model used in mobile user acquisition campaigns in which app advertisers choose a post-install event and only pay for users who engage in that specific event. In cost per engagement advertising, the event can be defined in a number of ways, such as: reaching level X, writing a review, completing registration, etc. CPE = advertising cost / engagements
CPCV stands for Cost Per Completed View (advertising cost / completed video view). This means that advertisers pay each time a video has been viewed through to completion.
An organic install is an app install that happens as the result of a user choosing to install an app on their own, either from actively browsing and searching in an app store, or through word of mouth. Organic installs cannot be attributed to a mobile ad campaign. Nevertheless, organic installs can be affected by targeted and aggressive mobile advertising campaigns, where the increased visibility and brand awareness drive a lift in organic installs too. Organic installs are important because organic users tend be the most active, and therefore have higher app retention rates.
LTV, or lifetime value, is an app metric which estimates the revenue a single user generates throughout their entire lifetime within an app. In other words, it’s a prediction of a user’s monetary value over time, and is calculated by looking at both in-app purchases and in-app advertising (determined by the number of ad impressions the user saw throughout their lifetime, among others). LTV tells app developers how well they are monetizing and retaining their current user base. High LTV users are users with high retention rates who stick around in the app, and contribute significantly to overall app revenue.
User engagement measures the degree of user interaction within an app. Key app engagement metrics include: average session count, average session duration, monthly active users, and daily active users. In other words, high app user engagement means users are in-app for relatively long periods of time. There are several strategies app developers use to increase mobile app engagement, such as smooth onboarding, maintaining a frequent stream of new content and features, and building customized funnels based on user segments.
User ad revenue represents the value of the revenue generated by users from ads viewed in-app. It gives developers a granular, user-level look at how much revenue their ad monetization strategy is generating. In addition, user ad revenue gives developers a more complete picture of the efficacy of their marketing spend. Developers can evaluate the quality of users acquired through marketing campaigns and organic traffic in terms of ad revenue generated post-install, not just in-app purchases. Additionally, developers can use the data to improve their monetization strategy by applying different user segmentations based on the ad revenue data.ironSource’s new User Ad Revenue tool bridges the monetization and user acquisition sides of the coin to give developers access to user ad revenue data on acquired users. The tool provides a clear view of the amount of ad revenue generated by users acquired through marketing campaigns – resulting in a much wider, more accurate picture of the quality of acquired users from across different marketing channels. Developers can access the tool through ironSource’s User Acquisition platform or mediation platform.
In-app purchases are virtual goods users buy within apps, such as in-game currency, recurring subscriptions, and more. There are various types of in-app purchases: content which users pay to unlock new levels and features; upgrades such as new characters or gear; and currency which are purchased in bulk to extend app use. In addition to mobile app advertising, in-app purchases are used by app developers as an app monetization strategy. The best strategies combine both. For example, game developers often integrate ad units such as rewarded videos as a way to increase in-game purchases.