What is IAP ROAS?
IAP ROAS, or “In-App Purchase Return on Ad Spend”, is a metric commonly used in the mobile app industry, particularly in the context of gaming and non-gaming apps that offer in-app purchases (IAPs). It’s used to evaluate the effectiveness of advertising campaigns in acquiring users who generate revenue through in-app purchases.
To calculate IAP ROAS, you divide the revenue generated from in-app purchases attributable to a specific ad campaign by the total cost of that ad campaign. IAP ROAS changes over time as users make more purchases, so advertisers will measure IAP ROAS at different Day X intervals once users have installed their app. For example, an advertiser may focus on D3 (or Day 3) IAP ROAS, which is the IAP ROAS generated in the first three days after users have installed the app. Other common time periods for measuring IAP ROAS include D0, D7, and D30.
Why is IAP ROAS important?
IAP ROAS is a critical metric for several reasons, especially in the mobile app and gaming industry, where in-app purchases are a major revenue source. Namely, it determines the overall effectiveness of an ad campaign, offers important audience insights, and helps app developers understand how and where campaigns can be improved.
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