How to measure the effectiveness of APP overseas KOL marketing? Do you know these 5 indicators?

We have briefly learned about APP going overseas and how to do influencer marketing. So, in actual operation, how should we measure the ROI of activities? In this article, the author shares with you what data indicators APP products should pay attention to when doing influencer marketing activities based on the actual implementation experience of overseas influencers in the past. I hope it will be helpful to everyone!

In the previous article "A Practical Guide to Overseas Influencer Marketing: How to Promote a New APP", we briefly learned about APP going overseas and how to do influencer marketing. So, in actual operation, how should we measure the ROI of the activity? In this article, Inpander, as a professional overseas KOL marketing agency, will share with you what data indicators APP products should pay attention to when doing influencer marketing activities based on past overseas influencer actual execution experience. I hope it will be helpful to everyone!

1. DAU: Daily Active Users

What is it?

The number of users who logged into the app every day.

This is a metric often used to measure the engagement and health of an app’s user base: the more daily active users an app has, the more engaging and useful the app is perceived to be.

How to calculate?

For example, X, a mobile puzzle game, had a stagnant user base. To increase user engagement and acquire new users, the company partnered with a popular gaming influencer.

The KOL, who has a YouTube channel with 3 million subscribers, posted a promotional video on December 1 and shared a link to download the app.

DAU measurement:

November 30 (before event): DAU = 15,000 users

December 1 (campaign launch day): DAU = 35,000 users

December 2 (the day after the event): DAU = 50,000 users

December 10 (10 days after the campaign): DAU = 25,000 users

analyze:

On the day the KOL posted the video, DAU jumped significantly from 15,000 to 35,000.

The next day saw an even bigger surge, likely because fans watched the video and subsequently downloaded and played the game.

By December 10, although DAU had dropped, it was still higher than the initial data before the promotion. This shows that as time passed, there were still some new users who continued to play the game, resulting in an increase in the number of active users.

2. Retention: User Retention Rate

What is it?

The number of new users in a certain period of time is recorded as A. After a period of time, the proportion of users who are still using the app to the new users A is recorded as the retention rate.

For a healthy product, the new user retention rate generally follows the 421 standard, that is, the same-day retention rate reaches 40%, the 7-day retention rate reaches 20%, and the 30-day retention rate reaches 10%.

How to calculate?

Retention rate = (number of retained users at the end of the period / number of users at the beginning of the period) x 100%

Let's calculate the 7-day retention rate:

Day 1 (campaign launch): X App gets 5,000 new downloads due to influencer marketing.

Day 7 (one week after launch): Of those 5,000 new users, 3,500 are still actively using the product.

7-day retention rate = (3,500 / 5,000) x 100% = 70%

3. LTV: Total Lifetime Value

What is it?

LTV (Life Time Value) means total life cycle value, or customer lifetime value, which refers to the total benefits that each user (buyer, member, user) may bring to the product in the future.

In influencer marketing, LTV is used to measure how much value (usually money) a user brings to an APP from the time they download the APP to the time they stop using the APP. It is an important indicator of whether the company can achieve high profits.

How to calculate?

LTV = (average revenue per user acquired through influencer B) x (average user usage time of users from influencer B)

For example, if users acquired through influencer campaigns spend an average of $10 per month on in-app purchases and tend to use the app for an average of 6 months:

Then LTV = $10 x 6 = $60

If the cost to acquire a user (CAC) from this influencer is $15, the net value gained from each user is $45, making the campaign profitable.

Remember: LTV is not static. User behavior and its value may change as you introduce new features, monetization methods, or other updates.

4. CPI&CPS

What is it?

CPI (Cost Per Install)

CPS (Cost Per Sales)

In app influencer marketing, these two metrics are often discussed together because they provide a more comprehensive view of the effectiveness of the campaign from user acquisition to user monetization.

When we work with apps that use a subscription model, we first check the cost per install after the campaign. This helps understand if our installation forecasts are in line with the actual results. But even if the CPI is in line with expectations, if not enough installs are converted into subscriptions, it can pose a challenge to ROI.

How to calculate?

CPI = advertising cost / number of installations

CPS = advertising cost / subscription volume

Author: Inpander

WeChat public account: "Inpander Overseas (ID: gh_eeba4131474f)"