Are you a CMO, start-up with a new app or private investor, looking to increase app downloads, user engagement and/or ROI but don’t quite get all the mobile jargon?
Here are some of the most common terms used in mobile and app marketing today helping you understand just what the experts are saying.
Each of the following four are advertising methods, which can result in new downloads; the difference is in how you are billed for them.
Cost Per Install (CPI)
Cost per install means you only pay once a user has downloaded and installed an app.
Cost Per Acquisition (CPA)
This means you pay for a user impression, click, app install or app page view to acquire them to install.
Cost Per Mile (CPM)
This means cost per thousand impressions. It is the total amount you pay for 1,000 impressions on your web or app page.
Cost Per Click (CPC)/Cost Per Tap (CPT)
These two terms mean you only pay if a user clicks or taps on the app.
App Store Optimization or app SEO is the process of improving an apps visibility inside an App Store, such as Apple App Store for iOS or Google Play Store for Android. A series of techniques are used to enable an app to rank higher in an App Store, leading to increased traffic, downloads and revenue.
(Click here to read more about ASO)
Search Engine Optimization is a set of strategies and techniques used to increase visitors to a website. Implementing SEO ensures a webpage can be found in search engines using words, links and phrases relevant to the site.
A/B testing is the process of comparing 2 variants of an app or webpage visuals, content or metadata to determine which works best. In the end, you measure which version was more successful and select that for real-world use.
NET PROMOTERS SCORE (NPS)
NPS is a metric, used widely to measure customer satisfaction, and acts as a leading indicator of growth. (Click here to find out how it can lead to a successful app)
Churn rate measure the number of customers you retain and at what value. To calculate churn rate you take the number of user you lost in a certain time frame and divide this by the total number if user you had at the beginning of that time frame.
Return on Investment is a performance measure, used to calculate the financial benefit from an investment. The formula of ROI is gain from investment minus cost of investment.
Retention refers to an app having the ability to attract repeat customers. The industry benchmark is the percentage of users who return to an app within 3 months, as 65% of people stop using them after this time. Retention reports help you figure out if users find your app valuable.
SOFTWARE DEVELOPMENT KIT (SDK)
A software development kit is a toolkit used by developers to create mobile apps. It contains all the tools necessary to produce a fully functioning app. Different SDK’s support different applications. For example: an iOS app requires an SDK with Swift, while an android app requires and SDK with Java.
LIVE TIME VALUE (LTV)
Live time value is what should be driving your marketing budget. It tells you how much each new customer is worth and what it costs to acquire new ones. For an app to be successful developers and marketeers need to understand the value of a customer. If your app user is more loyal, spends more, and/or converts more than your regular consumer, your marketing strategy is working.
Cohorts are a group of users who share a common criteria. Cohorts analysis is the study of the behaviours of these groups overtime. In the mobile app world these behaviours include the number of installs, opens, clicks and user retention.
APPLICATION PROGRAMMING INTERFACE (API)
API’s are a set of requirements, which govern how applications interact with each other. A good API will provide building blocks making it easier to develop a programme. APIs are important for app developers because they allow new apps to use services such as Facebook, Google Maps or Dropbox, rather than creating something similar from scratch.
KEY PERFORMANCE INDICTOR (KPI)
KPIs are used to measure a brands performance against key business objectives, creating manageable goals and strategies for future success. Some mobile KPIs include; downloads, session length, avg revenue per user and lifetime value. However, knowing which KPIs to target is ultimately a decision unique to each app and each project.
With the ever-growing app market, it is important to understand mobile terminology, in order to market your app successfully. This glossary of key terms is a great start for those who are non-technical minded.