FREE Mobile Marketing Mobile Analytics and KPIs Questions and Answers

Question 1

A mobile app has an Average Revenue Per User (ARPU) of $5 per month. The average user remains a customer for 8 months. The Cost to Acquire a Customer (CAC) is $50. Based on the Lifetime Value (LTV) of a user, what does this data indicate?

Accepted Answer

The marketing spend is unsustainable as LTV is less than CAC.

Answer

Lifetime Value (LTV) is calculated by multiplying the Average Revenue Per User (ARPU) by the customer lifetime. In this case, LTV = $5/month * 8 months = $40. Since the LTV ($40) is less than the Cost to Acquire a Customer ($50), the company is losing $10 on every new user, which is an unsustainable business model.

Question 2

A mobile marketing analyst calculates the ratio of Daily Active Users (DAU) to Monthly Active Users (MAU). What does this specific KPI, often called the 'stickiness ratio', primarily measure?

Accepted Answer

The frequency with which users return to the app.

Answer

The DAU/MAU ratio, or stickiness ratio, indicates how often users engage with the app within a month. A higher ratio signifies that a larger percentage of monthly users are returning on a daily basis, which points to a more habitual or engaging product.

Question 3

Which of the following best defines the User Churn Rate for a mobile application?

Accepted Answer

The percentage of users who stop using the app within a specific time frame.

Answer

User Churn Rate measures user attrition by calculating the percentage of customers who stop using an app or service during a given period. It is the inverse of the retention rate and is a critical indicator of customer satisfaction and business health.

Question 4

A free-to-play mobile game has 100,000 monthly active users (MAU). In one month, 2,000 of these users made in-app purchases, generating a total revenue of $50,000. Which of the following calculations is correct?

Accepted Answer

The Average Revenue Per User (ARPU) is $0.50.

Answer

ARPU (Average Revenue Per User) is the total revenue divided by the total number of users ($50,000 / 100,000 users = $0.50). ARPPU (Average Revenue Per Paying User) is the total revenue divided by the number of paying users ($50,000 / 2,000 paying users = $25). Therefore, the correct statement is that the ARPU is $0.50.

Question 5

In mobile analytics, what is the primary function of an attribution model?

Accepted Answer

To assign credit for an install or conversion to specific marketing touchpoints.

Answer

Attribution modeling is the process of assigning credit to the various marketing channels and touchpoints that contribute to a conversion, such as an app install or an in-app purchase. This allows marketers to understand which campaigns are most effective and optimize their advertising spend accordingly.

Mobile Marketing Practice Test

Mobile Marketing Practice Test

FREE Mobile Marketing Mobile Analytics and KPIs Questions and Answers