Key iGaming Metrics Every Affiliate Marketer Must Know
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Have you ever wondered what drives the success of an iGaming campaign? Sure, it’s easy to think it’s all about flashy games and massive prizes. And, to be fair, we cannot deny their allure in the gaming experience. But the real game-changer is mastering the key iGaming metrics.
These are not mere numbers—they’re the heartbeat of iGaming companies, guiding their decisions and strategies. It’s vital to note that the iGaming world is fiercely competitive. As such, understanding and leveraging the right metrics can make your optimization more thoughtful and help you turn your campaigns into a stable income source.
In this guide, we’ll explore essential them.
What are iGaming Metrics?
iGaming metrics or KPIs are specific measurements that track and evaluate the performance of an iGaming campaign.
With the global iGaming market valued at around $100 billion, staying on top of these analytics helps you stand tall above the competition. Metrics like player retention, churn, and conversion rates tell you more about player behavior.
The idea isn’t just to keep users around; it’s also about understanding what drives their loyalty. For example, are they sticking around because of the right ad message, plus – clear bonus structure? Or is it because of the unique product described in the catchy way, so they cannot resist trying? Understanding these nuances helps you properly tailor the experiences that keep them returning for more.
Categories of iGaming Metrics and Their Roles
Every deposit and click tells a story about performance, and so do iGaming metrics. These KPIs operate as a guide, helping you see what’s working and what’s not. Let’s discover the existing categories and see how they can give you the winning edge.
- Revenue Metrics
First, let’s discuss money! After all, that’s what makes the wheels go round. Revenue metrics tell you how much money is flowing in and how much stays after sorting out bills. It includes Gross Gaming Revenue (GGR) and Average Revenue Per User (ARPU). If you aim for success, you should see a 10-15% annual increase in GGR and keep promotional costs below 20% of GGR. Hit those numbers, and you’re on the right track.
- Player Metrics
Beyond cash, players (customers) are the lifeblood of any business, including iGaming. Player metrics help you know if gamers are sticking around or ghosting after a few games. Therefore, you’ll want to closely watch retention rates, churn rates, and Player Lifetime Value (PLTV).
A retention rate of 70-80% over 30 days and a churn rate below 5% are the sweetest spots. Also, your PLTV should be at least 3-4 times higher than your user acquisition cost. Otherwise, you should consider adjusting your strategy. Users are the most valuable asset — who treats them like gold, gets their loyalty.
- Marketing Metrics
Now, let’s talk about bringing in the crowds. Marketing indicators help attract and convert new players. This goes beyond splashing cash on traffic; you want to make every dollar count. So, it’s vital to keep customer acquisition costs low and conversion rates between 10-20%. If you run these numbers, you’ll surely have a steady stream of users knocking on your virtual doors.
- Operational Metrics
Finally, let’s note the behind-the-scenes heroes that ensure smooth user experience, which is especially important for iGaming brands. Players want a seamless experience, so having a 99.9% uptime is not negotiable. Also, deposits should be instant, and withdrawals should hit players’ accounts within 24 hours (regardless of the method used).
When it comes to customer support, speed is king. Responding to and resolving issues and inquiries within the shortest possible time leads to happy players who feel valued and respected.
10 Crucial iGaming Metrics for Brands and Affiliate Marketers
Understanding and tracking key KPIs is essential for success in the iGaming industry. They offer insights into player behavior and guide marketing strategies, ensuring that brands and affiliate marketers stay ahead of the competition. Let’s quickly dive into the ten most important iGaming metrics you must take note of.
- Player Acquisition Rate (PAR)
This metric tracks the rate at which new players sign up on your platform. It showcases just how effective your marketing campaign is. A high PAR means that your strategies resonate with potential players; if it’s low, you may need to change your tactic.
For affiliate marketers, PAR is vital as it reflects the success of their referral efforts, namely – when they are paid for sign up.
- Player Retention Rate (PRR)
While acquiring new players is great, retaining them is even more important. The Player Retention Rate measures the percentage of users who continue to engage with your offer or come to the platform you promote over time. A high PRR indicates strong player loyalty and satisfaction, which are essential for long-term success. And this metric is especially crucial for those who choose RevShare as a payment model.
Focusing on retention strategies such as personalized offers and loyalty programs can significantly boost PRR. Affiliates should also consider promoting the best iGaming platforms with proven retention strategies. Thus, they can rest assured that their referred players will continue generating revenue over time.
- Average Revenue Per User (ARPU)
ARPU measures the average revenue each user generates, offering insights into the overall profitability of your user base. This metric also notes their spending patterns and behavior. Affiliate marketers can leverage platforms with high ARPU by targeting campaigns towards these high-value players. Thus, they can maximize their earnings while driving quality traffic to brands.
- Average Revenue Per Paying User (ARPPU)
ARPPU considers how much each paying user contributes via subscriptions, in-app purchases, or downloads. It calculates the average revenue a user generates over a specific period. This KPI helps you pinpoint your top-paying customers and understand what motivates them to spend more. Unlike ARPU, which includes all users, ARPPU focuses on active spenders.
Comment from Serge Abramov, professional media buyer:
As far as I know, ARPU and ARPPU are especially widespread metrics for mobile apps. So you definitely should consider those if you work with an iGaming app.
- Gross Gaming Revenue (GGR)
Before deducting expenses, this is the total revenue generated from all player wagers. It provides a clear view of the iGaming platform’s performance and is often used to assess your overall financial health.
A steady or growing GGR indicates that players continue to engage with your games, which leads to higher revenue. It also means users are highly engaged and enjoy their gaming sessions.
- Net Gaming Revenue (NGR)
Net Gaming Review is the true measure of a brand’s profitability (before you factor in the operational cost). It’s basically what’s left after the dust settles. This KPI is calculated by taking the total deposits (or other target actions) made by players and subtracting the payouts they win.
While GGR gives a snapshot of total revenue, NGR accounts for what the iGaming website actually keeps after payouts, bonuses, and taxes. It’s a crucial figure that reveals a site’s sustainability.
- Player Lifetime Value (LTV)
This is another metric that every iGaming brand and affiliate marketer should monitor closely. It represents the total revenue a player is expected to generate in their entire relationship with your platform.
Let’s consider a scenario where a user spends $200 gaming on your platform per month. Suppose they stay active for the next 12 months, their LTV becomes ($200 x 12) = $2,400. If they are loyal to your platform for another five years, that becomes $12,000. Sounds impressive, right? Indeed, knowing your players’ LTV can help you determine how much to invest in acquiring new ones.
Comment from Serge Abramov:
I used to think that the LTV is usually not about expected value, but rather about current value. Meaning the metric shows how much an average user brings. But in fact, it’s more about expectations. I think it could depend on the industry, and for iGaming forecasts and recurring deposits are especially important.
- Churn Rate
This is the percentage of players who stop engaging with your site over time. A high churn rate can be a red flag, indicating that players are unsatisfied with your offerings or operations. So, monitoring this metric allows you to quickly identify and address problems before they escalate.
On the other hand, platforms with low churn indicate a strong player base, which makes them more attractive to potential players. Affiliates can promote these sites to earn long-term revenue.
- Conversion Rate
This measures the percentage of visitors who take a desired action, such as signing up or making a deposit. In iGaming, a high conversion rate strongly reveals effective marketing and amazing user experience. So, brands should prioritize optimizing landing pages, offering attractive bonuses, and introducing engaging content to improve conversion rates.
Overall, these KPIs provide valuable insights into player behavior and ensure long-term success in the competitive gaming industry. By effectively monitoring them, you can optimize your efforts, drive growth, and stay ahead in the dynamic world of iGaming.
- Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) reveals how much it costs to bring a new player on board. This covers everything from marketing to sales expenses. A lower CAC means more earnings to your company over time.
For example, if you invest $100,000 to gain 500 new users, your CAC becomes $200 ($100,000 / 500) per user.
This ratio gauges the effectiveness of your sales and marketing tactics and notes areas for improvement. Companies often compare CAC with Player Lifetime Value (LTV) to measure a customer’s long-term profitability.
How to Calculate iGaming KPIs
Let’s go a step further by showing you how to calculate each of the aforementioned metrics in the table below.
| Metrics | What it measures | How to calculate it |
| Player Acquisition Rate (PAR) | It tracks new player sign-ups | (Total Number of New Players / Total Number of Visitors) x 100 |
| Player Retention Rate (PRR) | Percentage of players who return | (Number of Returning Players / Total Number of Players) x 100 |
| Average Revenue Per User (ARPU) | It measures revenue generated per player | Total Revenue / Total Number of Active Users |
| Average Revenue Per Paying User (ARPPU) | The average revenue generated by each paying user over a period | Total Revenue / Total Number of Paid Users |
| Gross Gaming Revenue (GGR) | Total gaming revenue before expenses | Total Amount Wagered – Total Amount Amount Paid Out |
| Net Gaming Revenue (NGR) | It measures the company’s profitability | Sum Wagered Amount – Payouts – Bonuses – Taxes |
| Player Lifetime Value (PLTV) | The total value a player brings over time | (Average Revenue per Player per Day x Number of Days a Player Stays Active) |
| Churn Rate | The rate at which players stop playing | {(Number of Players at the Start of the Period – Number of Players at the End of the Period) / Number of Players at the Start of the Period} x 100 |
| Conversion Rate | Percentage of players converting from free to paying | (Number of Paying Users / Total Number of Users) x 100 |
| Customer Acquisition Cost (CAC) | The cost to acquire a new customer. | Cost of Sales and Marketing / Number of Customers Acquired |
Drive Success with Key Metrics and PropellerAds in Your iGaming Business
Ultimately, iGaming metrics are more than just numbers—they’re the roadmap to success. They tell you what’s working, what’s not, and where you need to focus your efforts. These KPIs can unlock your brand’s potential by boosting revenue, keeping players engaged, or fine-tuning your operations.
In terms of unlocking potential and promoting your brand, PropellerAds is here to take your push advertising strategy to the next level. As your perfect ally, we equip you with the tools to craft ad marketing campaigns that resonate with your audience, such as Push Notifications and Popunders.
PropellerAds isn’t just about deploying ads; it’s about mastering the art of advertising. With a strategic mix of formats, you can enhance your click-through rates, improve conversions, and ultimately, skyrocket your ROI. Ready to transform your marketing strategy? Partner with us today, and let’s enhance your success in iGaming.
Frequently Asked Questions (FAQs)
- What is the difference between Average Revenue Per User (ARPU) and Average Revenue Per Paying User (ARPPU)?
ARPU measures the average revenue generated by all users (paying and non-paying). On the other hand, ARPPU focuses on the income received from paying users. This metric understands how much money active spenders generate in a given period.
- How is Net Gaming Revenue (NGR) calculated?
Net Gaming Revenue is calculated by subtracting player payouts, bonuses, and taxes from the total amount wagered. This KPI showcases a brand’s profitability before accounting for operational expenses.
- Why is Customer Acquisition Cost (CAC) important?
CAC measures the cost of acquiring a new customer. If this metric is lower, it indicates better use of marketing resources and profitability. This can help a company understand potential investment returns and see how to allocate marketing efforts where necessary.
- What should a good Player Retention Rate (PRR) look like?
A Player Retention Rate (PRR) of 70-80% over 30 days is considered excellent. It indicates strong player loyalty and satisfaction, which are essential for long-term success in the iGaming industry.
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