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Advertising platform says acquisition and monetisation should be evaluated together to understand long-term user value
Mobile app developers should look beyond individual metrics such as cost per install (CPI), eCPM and short-term return on ad spend (ROAS) when evaluating growth, according to BIGO Ads, the advertising platform operated by JOYY Inc. (NASDAQ: JOYY).
The company argues that user acquisition and monetisation should be viewed as connected parts of the same growth strategy, with developers evaluating the entire journey from acquisition and onboarding through retention and monetisation.
“A cheaper install is not necessarily a better user, and a higher eCPM is not necessarily a healthier business,” said David Ruggiero, Business Development Director, Europe at BIGO Ads.
Looking Beyond Install Costs
CPI remains a key measure of acquisition efficiency, but it does not indicate how valuable a user will become after installing an app or game.
A lower-cost user may have weak retention or generate limited revenue, while a more expensive acquisition can deliver stronger returns if the user remains engaged and generates revenue through advertising, in-app purchases or subscriptions.
BIGO Ads recommends that user acquisition teams consider metrics including retention, engagement, revenue, lifetime value (LTV), ROAS and payback period alongside installation costs.
Higher eCPM Does Not Always Mean Higher Revenue
The company also highlights the limitations of relying solely on advertising yield metrics such as eCPM.
While a higher eCPM can indicate stronger advertising rates, it does not necessarily translate into greater overall revenue. Reducing lower-value impressions, for example, can increase eCPM while reducing total advertising revenue. Similarly, increasing ad frequency may boost short-term revenue but negatively affect engagement, retention or purchasing behaviour.
Developers should therefore evaluate eCPM alongside metrics such as fill rate, ARPDAU, impressions per user, retention and overall LTV.
For apps that combine advertising with in-app purchases or subscriptions, BIGO Ads also views monetisation decisions as part of the overall product experience, with ad placement, frequency and audience potentially influencing user behaviour.
Aligning Acquisition and Monetisation
According to BIGO Ads, separate objectives for user acquisition and monetisation can create conflicting incentives. Acquisition teams may optimise for early ROAS targets, while monetisation teams focus on increasing advertising yield, even when those improvements negatively affect long-term engagement.
A broader measure of player value can bring acquisition cost, advertising revenue, purchases, subscriptions, retention, payback and long-term margins into a single framework.
The approach is particularly relevant in Europe, where privacy regulations and changes to digital measurement have made user-level data more limited.
Scaling Strong App Fundamentals
BIGO Ads argues that paid acquisition is most effective when it is used to scale an app with strong onboarding, retention and monetisation fundamentals. Advertising spend alone cannot sustainably compensate for weak user experiences or poor retention.
The company provides user acquisition solutions aimed at identifying and reaching valuable users, while also supporting publishers through global advertiser demand and real-time in-app bidding.
The broader strategy is to move mobile growth measurement away from isolated performance metrics and toward a more comprehensive assessment of the long-term value generated by each user.
