Whether you’re new to the world of app growth or looking to brush up on the latest performance metrics, this app marketing glossary breaks down the essential terms you need to know. From user acquisition and analytics to monetisation and retention strategies, these bite-sized definitions are designed to help you navigate the terminology and optimise your mobile marketing efforts with confidence.
A/B Testing
A/B testing compares two versions of an app store listing’s visuals (icons, screenshots, videos) to see which drives more downloads by analysing engagement metrics like CTR and conversion rates.
Activation Rate
Activation rate measures the percentage of users who complete a key action that signifies they have successfully started engaging with an app. This could include signing up, completing onboarding, or making a first purchase. A high activation rate indicates that users quickly find value in the app.
ANR – Application Not Responding
ANR is an Android-specific error that occurs when an app becomes unresponsive for too long. This usually happens due to excessive main thread processing, causing the system to prompt users to close or wait for the app. High ANR rates can negatively impact user experience and app store rankings.
AOV – Average Order Value
AOV is the average amount spent per transaction within an app. It is calculated by dividing total revenue by the number of orders. A higher AOV indicates that users are making larger purchases, which can improve overall revenue and profitability.
ARPDAU – Average Revenue Per Daily Active User
ARPDAU measures the average revenue generated per active user each day. It is calculated by dividing total daily revenue by the number of daily active users (DAU). This metric helps assess an app’s monetisation efficiency and overall revenue performance.
ARPPU – Average Revenue Per Paying User
ARPPU measures the average revenue generated per user who makes a purchase within an app. It is calculated by dividing total revenue by the number of paying users. This metric helps evaluate the spending behaviour of monetised users and the effectiveness of in-app purchases or subscriptions.
ARPU – Average Revenue Per User
ARPU measures the average revenue generated per user over a specific period. It is calculated by dividing total revenue by the total number of users. This metric provides insight into overall monetisation effectiveness, including both paying and non-paying users.
ASO – App Store Optimisation
App Store Optimisation is what SEO (Search Engine Optimisation) is for websites. The difference, of course, is that ASO exists within the context of App Stores. ASO aims to optimise various elements of your app store listing to improve ranking, maximise appeal, and increase your app’s overall discoverability.
ATT – App Tracking Transparency
ATT is Apple’s privacy framework that requires apps to request user permission before tracking their data across other apps and websites. Introduced in iOS 14.5, ATT impacts ad targeting and measurement, as many users opt out of tracking, limiting access to IDFA (Identifier for Advertisers).
CAC – Customer Acquisition Cost
CAC measures the average cost of acquiring a new user. It is calculated by dividing total marketing and sales expenses by the number of new users acquired. A lower CAC indicates more efficient user acquisition, while balancing it with LTV is key to sustainable growth.
Churn Rate
Churn rate measures the percentage of users who stop using an app within a given period. It is calculated by dividing the number of users lost by the total number of users at the start of the period. A high churn rate indicates retention challenges, while a low churn rate suggests strong user engagement.
CLV – Customer Lifetime Value
CLV estimates the total revenue a user is expected to generate throughout their engagement with an app. It is calculated by considering factors like average purchase value, purchase frequency, and customer lifespan. A high CLV indicates strong user retention and monetisation.
CPA – Cost per Acquisition
CPA is a marketing metric that measures the total cost of a customer completing a specific action. In other words, CPA indicates how much it costs to get a single customer down your sales funnel, from the first touch point to conversion.
CPA – Cost Per Action
CPA measures the average cost of a specific user action, such as an app install, sign-up, or purchase. It is calculated by dividing total ad spend by the number of completed actions. A lower CPA indicates more cost-effective user acquisition.
CPE – Cost Per Engagement
CPE measures the average cost of a user interaction with an ad or app, such as clicks, video views, or in-app actions. It is calculated by dividing total ad spend by the number of engagements. A lower CPE indicates more cost-effective user engagement.
CPC – Cost Per Click
CPC is the amount an advertiser pays each time a user clicks on their ad. Common in search ads like Google Ads, CPC helps measure ad performance and optimise budgets effectively. Also known as PPC (Pay Per Click).
CPI – Cost Per Install
CPI measures the average cost of acquiring a new app install through paid advertising. It is calculated by dividing total ad spend by the number of installs. A lower CPI indicates more efficient user acquisition.
CPM – Cost Per Mille
CPM is the cost an advertiser pays for every 1,000 ad impressions. Common in programmatic advertising, it’s used to measure reach and brand awareness efficiently.
CPP – Custom product pages
CPP are tailored versions of an app’s App Store listing that highlight specific features, content, or promotions. They allow app marketers to create unique pages for different audiences or campaigns, improving relevance and potentially increasing conversion rates by aligning messaging with user intent.
CPV – Cost Per View
CPV measures the average cost of a single video ad view. It is calculated by dividing total ad spend by the number of views. This metric is commonly used in video advertising to assess cost efficiency and engagement.
Crash Rate
Crash rate measures the percentage of app sessions that result in the app crashing. It is calculated by dividing the number of crashes by the total number of app sessions, then multiplying by 100. A high crash rate can negatively impact user experience and retention, indicating potential stability issues that need to be addressed.
CRM – Customer Relationship Management
CRM refers to strategies, tools, and technologies used to manage interactions with users and improve retention. In app marketing, CRM involves personalised messaging, push notifications, and in-app engagement to enhance user experience and drive long-term loyalty.
CRO – Conversion Rate Optimisation
CRO is the process of improving an app or marketing campaign to increase the percentage of users who complete a desired action, such as installs, sign-ups, or purchases. This involves A/B testing, optimising user experience, and refining messaging to boost overall conversion rates.
CSL – Custom Store listing
CSL is a feature on Google Play that allows developers to create alternative versions of their app’s store listing, targeted to specific user segments such as countries, languages, or install status. CSLs help improve relevance and conversion rates by delivering more personalised messaging and visuals.
CTA – Click-Through Attribution
CTA refers to tracking and attributing a user’s action (click) on an ad, link, or call-to-action button to a specific marketing campaign or source. It helps measure the effectiveness of ads or content in driving user engagement and conversions.
CTR – Click-Through Rate
CTR is the percentage of users who click on an ad or link after seeing it. A key performance metric in mobile marketing, CTR measures user engagement and campaign effectiveness. Read more
CTV – Connected Television
CTV refers to a TV set that is connected to the internet, either through built-in smart features or external devices like streaming boxes or gaming consoles. CTV is increasingly used for streaming video content and allows advertisers to target audiences with digital ads on television screens.
CVR – Conversion Rate
CVR measures the percentage of users who complete a desired action, such as installing an app, making a purchase, or signing up. It is calculated by dividing the number of conversions by the total number of users who engaged with the app or campaign. A high CVR indicates effective marketing and user engagement strategies.
DAU – Daily Active Users
DAU measures the number of unique users who engage with an app in a single day. This metric helps track user engagement and app stickiness. A consistently high DAU indicates strong daily retention and user interest.
IAP – In-App Purchases
IAP refers to the purchasing of goods or services within a mobile app. These can include digital items, subscriptions, or additional content that enhances the user experience. IAP is a common revenue model for free-to-play apps, providing ongoing monetisation opportunities.
IMPDAU – Impressions Per Daily Active User
IMPDAU measures the average number of ad impressions served to each daily active user of an app. It helps assess the level of ad exposure per user and is useful for understanding user engagement with ads within the app. A higher IMPDAU can indicate stronger ad engagement.
IAE – In-app event
IAE refers to any user action that takes place within an app after installation, such as completing a level, making a purchase, or adding an item to a cart. Tracking IAEs helps app marketers understand user behaviour, measure engagement, and optimise campaigns based on meaningful user interactions.
IR – Install Rate
IR measures the percentage of users who install an app after clicking on an ad or viewing a store listing. It is calculated by dividing the number of installs by the total number of impressions or clicks. A high install rate indicates effective ad creatives and app store optimisation (ASO).
KPI – Key Performance Indicator
KPI is a measurable metric used to evaluate the success of an app or marketing campaign. Common KPIs in-app marketing include retention rate, conversion rate, ARPU, and LTV. Tracking KPIs helps assess performance and optimise growth strategies.
LTV – Lifetime Value
LTV estimates the total revenue a user is expected to generate throughout their engagement with an app. It is calculated based on factors like average purchase value, purchase frequency, and retention rate. A high LTV indicates strong user loyalty and monetisation potential.
MAU – Monthly Active Users
MAU measures the number of unique users who engage with an app over a 30-day period. It is a key metric for assessing long-term user engagement and app growth. A high MAU indicates strong user retention and sustained interest.
ROI – Return on Investment
ROI measures the profitability of an investment by comparing the revenue generated to the costs incurred. In-app marketing, ROI helps determine the effectiveness of user acquisition campaigns and overall profitability.
ROAS – Return on Ad Spend
ROAS measures the revenue generated for every unit of currency spent on advertising. A higher ROAS indicates a more effective ad campaign, helping app marketers optimise budget allocation and ad performance.
Time to First Key Action
Time to first key action measures the amount of time it takes for a user to complete a significant action in an app, such as signing up, making a purchase, or completing onboarding. A shorter time indicates a smoother user experience, while a longer time may suggest friction in the app that could impact user retention and engagement.
Retention Rate
Retention rate measures the percentage of users who continue using an app after their first visit or install, typically tracked over specific time periods (e.g., day 1, day 7, day 30). It is calculated by dividing the number of users who return by the total number of users in the cohort. A high retention rate indicates strong user engagement and satisfaction.
Viral Coefficient
Viral coefficient measures how effectively an app acquires new users through referrals. It is calculated by multiplying the average number of invites sent per user by the conversion rate of those invites. A viral coefficient above 1 indicates exponential growth, as each user brings in more than one new user.
MMP – Mobile Measurement Partner
MMP is a third-party service that helps track and attribute mobile app performance across various marketing channels. MMPs provide data on installs, in-app events, user engagement, and ROI, enabling app marketers to optimise campaigns and make data-driven decisions.
NPS – Net Promoter Score
NPS is a metric used to measure user satisfaction and loyalty. It is based on a survey asking users how likely they are to recommend an app to others, with scores ranging from 0 to 10. Users are categorized as promoters (9-10), passives (7-8), or detractors (0-6). NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. A high NPS indicates strong user satisfaction and advocacy.
PPC – Pay-Per-Click
PPC is a digital advertising model where advertisers pay a fee each time a user clicks on their ad. In app marketing, PPC is commonly used for user acquisition campaigns on platforms like Google Ads and social media. Effective PPC strategies focus on optimising bids, targeting, and ad creatives to maximise ROI.
PPO – Product Page Optimisation
PPO refers to the process of improving an app’s store listing, such as its icons, screenshots, videos, and description, to increase visibility and conversion rates. Effective PPO helps attract more installs by making the app more appealing and relevant to potential users browsing the app stores.
Proceeds
Proceeds refer to the actual revenue an app developer receives after platform fees (like Apple’s or Google’s commission) are deducted from user payments. It represents the net earnings from in-app purchases, subscriptions, or app sales. Understanding proceeds is key to evaluating true app profitability.
PSE – Play Store Experiments
PSE is a feature in the Google Play Console that allows developers to A/B test different elements of their app’s store listing, such as icons, screenshots, and descriptions. By comparing performance across variants, app marketers can optimise for higher conversion rates and better user acquisition.
RTB – Real Time Bidding
RTB is a programmatic advertising process where ad impressions are bought and sold in real time through an auction. Advertisers bid for impressions based on user data, targeting, and campaign objectives, with the highest bid winning the ad placement. RTB helps optimise ad spend and increase campaign efficiency.
SKAN – SKAdNetwork
SKAN is Apple’s framework for privacy-preserving mobile app attribution. It allows advertisers to measure the effectiveness of their campaigns without accessing user-level data, ensuring user privacy. SKAN provides aggregated, anonymised data on app installs and post-install events, helping marketers optimise user acquisition while complying with privacy regulations.
Trial to Conversion Rate
Trial to conversion rate measures the percentage of users who convert from a free trial to a paid subscription. It is calculated by dividing the number of users who subscribe after a trial by the total number of trial users. A high rate indicates strong product value and effective onboarding during the trial period.
UA – user acquisition
UA refers to the process of attracting new users to an app through various marketing strategies and campaigns. It includes tactics like paid ads, app store optimisation (ASO), and referral programs, aiming to increase the number of installs and drive growth for the app.
UX – User Experience
UX refers to the overall experience a user has while interacting with an app, including its design, usability, performance, and how intuitive it feels. A positive UX makes an app easy and enjoyable to use, leading to higher engagement, retention, and user satisfaction.
