ASA Beginners Must Know: 5 App Performance Marketing Metrics To Drive App Growth

Performance marketing is one of the greatest and simplest ways to guarantee advertising effect, and this article will give you the metrics need to keep in mind.

Oct 24 2022
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Performance marketing, such as search, social, and retail media, only results in payment when a customer takes an action.

Before the internet, most advertising was similar to taking a chance by providing material in the hopes that it would reach the right audience at the right moment. There has never been a bigger opportunity for advertisers to interact with people on a personal basis, though, as the majority of us are connected to the internet in some way or another virtually constantly — be it via social media, applications, games, third-party sales platforms, or even streaming services.

Advertising that appears on any web-based platform and is sold on the basis of getting people to complete the required action is known as performance marketing. Performance marketing is one of the greatest and simplest ways to guarantee that your advertising are noticed, and is far from being a random bet. Here is all the information you require to begin using performance marketing.

What is App Performance Marketing?

Performance marketing is the name given to a form of advertising where advertisers only pay for the advertisements that viewers see. Since there are now more ways than ever to interact with content, views were previously counted by how many people clicked on an advertisement. As a result, performance marketing can now be evaluated in ways other than pay-per-click (PPC) or cost-per-click (CPC) models.

Performance marketing often involves three primary groups. The first group consists of advertisers and marketers who purchase advertisements across all platforms, including social media, websites, search engines, streaming services, applications, and other third-party shopping sites like Amazon. Most marketers that are interested in performance marketing want to increase product engagement in order to move potential consumers down the sales funnel and increase revenue.


The platforms that sell performance-based advertising make up the second segment. Publishers are businesses that run websites that serve performance marketing ads. Ads are typically sold using a bidding process, and the advertiser who places the highest bid on a keyword or ad space "wins" the opportunity to have their ad seen to the site's general audience or a specific subset of that audience that the advertiser has chosen.

However, a lot of marketers engage agencies to manage the ad bidding on their behalf instead of working directly with publishers. Performance-based advertising is typically sold programmatically, which means an algorithm places bids on a number of ads simultaneously, giving advertisers a better chance of coming in at the top of the list and having their ads broadcast.

Numerous agencies and SaaS platforms have dashboards that let marketers view all of the places where their advertisements are running simultaneously, as well as the bids they are winning and losing, and the performance of their ads across platforms.

Why does performance marketing outperform other forms of marketing in terms of value?

The effects of performance marketing are simple to measure, which is one of the biggest reasons to utilize it. When an advertiser purchases a billboard or a page of material in a magazine, it is difficult to determine whether or not the message reached the target demographic.

Performance marketing, however, can be assessed based on a variety of factors, from the number of individuals who viewed or clicked on an advertisement to whether or not those who clicked on it actually made a purchase. By strengthening future efforts through a feedback loop created by this data, audience behavior may be better understood.

Performance marketing is also a more cost effective form of advertising. Television and radio commercials, along with print advertising, can be costly, with no real proof of return on investment (ROI). With performance marketing, advertisers only pay for ads that they are sure a target audience has seen.

What are the common App Performance Marketing metrics?

Here are a few ways that performance marketing can be used to offer ads that are sure to be viewed.

Cost per click (CPC)


PPC and CPC are terms that can be used interchangeably. The advertiser only receives payment in this performance marketing approach when a user clicks on an ad that directs them to a company's landing page.

Cost per engagement

Advertisers only get paid when consumers do the required action, which is known as cost per engagement (CPE). These behaviors could range from joining an email list to attempting a new service, such as scheduling a first ride on a rideshare app after interacting with an advertisement on a music streaming app.

Cost per acquisition (cost per conversion)

This phrase describes the amount an advertiser spends for a particular action, such as obtaining a new client, subscribing to an email list, or clicking.

Cost per view

This phrase refers to video advertisements in which sponsors pay each time viewers watch a sponsored video for under 30 seconds or at least 30 seconds for longer advertisements.

Cost per install (CPI)

This phrase refers to a performance marketing strategy used by app marketers, in which advertisers are compensated for each new user that downloads an app after viewing or interacting with an advertisement.

How can performance marketing be used to its fullest potential?

Advertising campaigns with clearly defined objectives are more successful in performance marketing. Better outcomes for your brand arise from knowing what you want from a performance marketing campaign, whether it's impressions, conversions, views, or clicks.

Additionally, adopting a reliable platform AppAds that allows your brand to see how all its ads are performing across channels is an important way for marketers to not only see where ads are getting the most ROI but also to create cross-channel performance marketing campaigns that generate review and grow your business.