Understanding The Math Of The App Business

App Marketing - The Math of the App Business 

Let's continue from our previous post last point remember? 

Let me remind it was 'The Math of the App Business', 

Why I selected last point first? You will understand if we go further into the discussion. . . 

Actually this topic covers all previous four listed in my last post in short you have to understand first the actual math of an App Business . . .


In 2016, app businesses predicted to generate $60 billion plus as far as revenues are concerned. Now . . . 

How to claim your stake with the help of understanding 'the math of the app business' ?

Let me guide you in a very simple manner, as we have already discussed in posts prior to this one that developing and launching an app is only the first step in a long journey of a fruitful app business. No matter how app business's success may be defined, the key metrics are vital to measure the app's performance.

Key App Metrics and Maths of An App Business can be understood with the help of following '7' Seven PIN POINTS as discussed below . . .

1. App Downloads Installs (AI)

2. Monthly active users (MAU)

3. App User Retention (AUR)

4. Average Revenue Per User (ARPU)

5. App's Lifetime Value (LTV)

6. Customer Insights & Personalization (CIP)

7.App Revenue (AR), actually  for which we all Apprepreneurs are eagerly waiting to be generated.

1. App Downloads and Installs (ADI)

As we might have a certain number of app users who have already downloaded our apps. But how many of them have actually taken step forward and installed it on their device, keep it and use it? Statistically, the average number of total downloads conversion to installations is mere 30%. And this metric is extremely crucial. X installs means X revenue. 

*The basic thing to track are daily app's installs and their sources. 
[Crucial Metric]

Analyzing the sources of installs are as important as the quantity of installs in actual. As we can easily evaluate our marketing strategy and advertising campaigns as well. Solely recommended by industry leaders to work with an independent analyzer of installs, thus eliminating a conflict of interest that comes with a tracking solution from an advertising network. 

Checkout services like MAT, Adjust or Google Mobile App Analytics.

We will discuss rest of the points in our next post in details, so stay in touch for updates.

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