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LTV for mobile games
What is LTV? And why is this important for user acquisition for mobile games?
LTV stands for Lifetime Value, and is a way of calculating the value of a new user. The LTV is how much that user is predicted to be worth to your app, over their whole relationship with your app.
LTV is the measure that is used to determine each individual mobile gamer’s value from the overall pool of mobile game users that were acquired through app promotion. It can also be looked at as the measure of the overall revenue that a customer will generate in their “lifetime” as a user of the app. Ultimately, it’s important to have as high an LTV for your mobile game users as possible.
ROAS for mobile games
Another important metric that will greatly benefit your mobile games user acquisition strategy is ROAS (return on ad spend). In a nutshell, Return on Ad Spend (ROAS) measures how much revenue is generated from a specific ad or campaign; by calculating the revenues generated from each dollar spent on mobile games user acquisition strategy and to calculate the performance of digital advertising spend.
How to improve LTV (lifetime value) for mobile games
Here are the top 5 tips and strategies to boost your users’ LTV, aligned with your mobile games user acquisition strategy.
- Track your Retention Metrics
- Segment your rewarded ads wisely
- Optimize for long term engagement
- Optimizing retention to increase LTV
- Segmentation & re-engagement
- Track your Retention Metrics
What your mobile gamer segments are doing is revealed by your retention stats. Make sure they're in sync with your mobile games user acquisition strategy. Identify the user categories with the highest long-term retention rates and the user acquisition campaigns from which they originated. You can modify or even rearrange your overall budget to maximize the reach of those UA campaigns that deliver user acquisition for mobile games once you've identified them.
- Segment your rewarded ads wisely
Rewarded App Install Ads should be handled with caution. They can raise overall engagement with certain mobile games user segments and increase the LTV of your mobile game thanks to their extremely high eCPMs. But it's difficult to incorporate rewarded ads into a mobile game. Ad rewards can imbalance your mobile game economy and change your user experience if done incorrectly.
- Optimize for long term engagement
For mobile games, retention is the holy grail of LTV, and maximizing your long-term retention is a key. After you've segmented them, look at how they behaved in your mobile game and look for patterns in your newly recruited users from mobile games user acquisition strategy. This will assist you in identifying potential VIP users, or true fans as we call them. If nurtured with care, you will optimize your user acquisition for mobile games of high LTV users.
- Optimizing retention to increase LTV
Improved retention keeps more players in the game for longer, offering you more opportunity to monetise them and, as a result, increasing the LTV of your mobile games. To boost mobile gaming retention, start by determining which levels are causing a drop-off. You can either eliminate or adjust the level after determining why this is a problem region. You can also add original content to your mobile game, such as new designs and features, to increase playtime, which is another element that influences user acquisition for mobile games.
- Segmentation & re-engagement
Segmenting your mobile game users is one of the most crucial elements in increasing your mobile game user LTV. You'll be able to better grasp the relationship between their qualities and in-game conduct once you've done so. You'll see how different groups act, and you'll be able to use that information to suit their requirements, which will serve to improve your mobile games user acquisition strategy. You can divide the users into groups based on their:
- In-game actions
- Spending habits
- Behavior over time
Interested in learning more about the state of mobile gaming 2022, and how to optimize your mobile games user acquisition strategy? Dive head first here
