Implement Revenue Analytics to Optimize App Monetization

08/08/12

Mobile Analytics Best Practices

Mobile app developers need to track revenue in order to see a complete picture of user engagement.  In a recent post, we discussed why developers should track revenue and showed some of the insights gained from doing so.  This time, we’re going to walk through how to implement revenue tracking in your apps.

There are two ways to set up revenue tracking with Apsalar:

  1. Event Attribute Values – This method is typically used to track revenue generated from in-app transactions by using event attributes to record the variations in price that may be associated with a unique event type.
  • Use Case: In-app purchases
  • Example: a user may make an in-app purchase (IAP) of a digital weapon or a digital currency pack that would allow him to purchase the weapon. By using attributes with the IAP event, the variable revenue values of the different weapons or currency packs can be counted toward the total revenue and the Average Revenue Per User (ARPU) for the app. We can calculate the variable pricing of different in-app purchases to calculate the revenue generated by a unique event as follows:
  • Event: IAP_complete_weapon
  • Attributes:
  • Type = Sword
  • Price = $0.99 or;
  • Type = Super Sword
  • Price = $1.99
  • Set up:
  • Review our iOS and Android integration documentation to understand how to properly instrument an event with attributes.  More specific documentation related to revenue tracking can be found here.
  • After set up, go to the “My Events” page within your Apsalar account
  • Find the “revenue” event you want to assign a value to – e.g., “IAP_complete_weapon”
  • Select “Assign Revenue”
  • Select a revenue attribute – e.g., “Price”
  • Apsalar will then begin tracking the entered value each time the event is triggered and populate your dashboard and reports with revenue and ARPU results.

In this type of revenue tracking, the attribute value (“Price”) is passed when the event (IAP_complete_weapon) is triggered.  Below is sample iOS code to illustrate how this would be implemented.

Implement Mobile Analytics Code

  1. Constant Values – This method allows a developer to attach a static or constant revenue value to an event directly within the Apsalar web interface. The value entered will then be applied to revenue metrics each time this particular event is triggered. This method is typically used where there are few if any variations in price for the same event. An important advantage with this method is that changes to pricing can be made at any time and do not require an update to the application code.
  • Use case: Advertising revenue
  • Example:  While advertising inventory yields may vary for developers, an average CPC can usually be backed out and a set amount of revenue can be counted every time an ad is clicked in your app.
  • Example:
  • Event: advertisement_clicked
  • Revenue value: $0.05
  •  Set up:
  • Go to “My Events” within the Apsalar interface
  • Find the event you want to assign a revenue value to – e.g., “advertisement_clicked”
  • Select “Assign Revenue”
  • Enter a constant numeric value and save it  – e.g., “$0.05
  • Apsalar will then begin tracking the entered value each time the event is triggered and populate your dashboard and reports with revenue and ARPU results.
  • A second use case for constant values would be to calculate the revenue generated by an in-app upgrade.  Many apps have a single upgrade option (for additional functionality, levels or features).  Using a constant value would allow accurate revenue tracking as different prices are tested.

For more information on implementing revenue tracking with Apsalar, please refer to our documentation or contact me at ted [at] Apsalar [dot] com.

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