Dan Burcaw is Co-Founder & CEO of Nami ML. He built a top mobile app development agency responsible for some of the most elite apps on the App Store and then found himself inside the mobile marketing industry after selling his last company to Oracle.
The digital industry is in hyperdrive – the explosion of apps on the Apple and Google Play Stores and digital content online is undeniable proof of this.
Subscriptions are the new gold rush, and the paywall has become a strategic tool for businesses to capitalize on premium content. But building a successful paywall is about more than just blocking access. It's about creating an irresistible offer that opens doors, not closes them.
Understanding how your paywall performs is the key to unlocking its full potential. By closely examining the right metrics, publishers can transform raw data into actionable insights. What's working? What's falling flat? The answers lie in the numbers.
With a clear view of performance, you can fine-tune your strategy to boost conversions, strengthen subscriber loyalty, and drive revenue growth.
Let's dive into the essential metrics that will supercharge your paywall.
Understanding Paywall Models and Goals
Before diving into the nitty-gritty of paywall metrics, it's crucial to have a crystal-clear understanding of your paywall model and overall goals. This solid foundation will guide your metric selection and ensure that your data is driving you in the right direction.
Types of Paywalls
There are several paywall models to choose from –
Metered Paywall: Think of it as a trial period. Readers get a taste of your content before being asked to subscribe.
Hard Paywall: This is the 'all or nothing' approach. No freebies here – access to content is locked behind a subscription.
Dynamic Paywall: This is where the smarts come in. Using data, the paywall adapts to each reader, offering personalized deals and content.
Hybrid Paywall: A mix of the above, combining the best of different worlds for maximum impact.
The paywall model you choose and how you set it up should align with your overall business objectives. Common goals include:
Revenue generation: Increasing subscription and advertising revenue.
Subscriber growth: Expanding the subscriber base.
Engagement: Encouraging deeper reader engagement and loyalty.
Content discovery: Promoting new content and sections.
The world of paywall metrics can be overwhelming. But remember, not all metrics are created equal. To truly understand your paywall’s performance, focus on the numbers that directly impact your bottom line. Let's dive into the metrics that matter most.
Nami's Subscription Analytics lets you measure over 19 key metrics
Core Paywall Performance Metrics
To effectively measure the success of your paywall, it's essential to track a combination of metrics that provide insights into different aspects of your strategy.
Let's start with the metrics that reveal how well your paywall is converting visitors into subscribers.
Conversion Metrics
Conversion metrics focus on how effectively your paywall is turning visitors into paying subscribers.
Conversion rate
This fundamental metric measures the percentage of users who subscribe to your app or content offering after encountering the paywall.
Conversion Rate = (Number of subscribers / Number of paywall encounters) * 100
Example: If 1,000 users encounter the paywall and 100 subscribe through it, the conversion rate is 10%.
Paywall visibility rate
This metric reveals the percentage of users who actually encounter the paywall.
Paywall Visibility Rate = (Number of paywall encounters / Total website traffic) * 100
Example: If a website has 10,000 visitors and 5000 encounter the paywall, the visibility rate is 50%.
Paywall bounce rate
This metric shows the percentage of users who leave the site immediately after hitting the paywall.
Paywall Bounce Rate = (Number of users Who bounce after paywall / Number of paywall encounters) * 100
Example: If 200 out of 1000 users who encounter the paywall bounce, the bounce rate is 20%.
Average revenue per paying user (ARPU)
ARPU measures the average revenue generated from each paying subscriber.
ARPU = Total revenue from paying subscribers / Number of paying subscribers
Example: If total revenue from subscribers is $10,000 and there are 500 subscribers, ARPU is $20.
Customer acquisition cost (CAC)
CAC represents the cost of acquiring a new subscriber.
CAC = Total cost of acquiring customers / Number of customers acquired
Example: If a publisher spends $50,000 on marketing to acquire 1000 subscribers, CAC is $50.
Customer lifetime value (CLTV)
CLTV estimates the total revenue a customer will generate throughout their relationship with your publication.
CLTV = Average revenue per user (ARPU) * Average customer lifespan
Example: Assume that the average subscription price is $10 per month, which equals $120 annually (ARPU). If your average customer stays subscribed for 2 years then CLTV = $120/year * 2 years = $240
By closely monitoring these conversion metrics, you can identify areas for improvement and optimize your paywall strategy accordingly.
Engagement Metrics
Engagement metrics offer insights into how users interact with your content. By understanding user behavior, you can refine your content strategy and enhance the overall reader experience.
Page views per user
This metric measures the average number of pages a user views during a session.
Page Views per User = Total page views / Total unique visitors
Example: If a website has 1000 page views and 500 unique visitors, the page views per user is 2.
Time spent on site
This metric indicates the average duration of a user's visit.
Time Spent on Site = Total time spent by all users / Total number of sessions
Example: If the total time spent on site is 10,000 minutes and there are 500 sessions, the average time spent on site is 20 minutes.
Scroll depth
This metric measures how far users scroll on a page, indicating their interest level. Scroll depth is typically measured as a percentage of the page scrolled.
Example: If a user scrolls to 75% of a page, their scroll depth is 75%.
Content consumption patterns
Analyzing which articles and topics are most popular helps identify reader preferences and trends. This metric is often presented in a tabular or graphical format showing the most viewed or shared content.
Returning visitor rate
This metric indicates the percentage of visitors who return to your site.
Returning Visitor Rate = (Number of returning visitors / Total visitors) * 100
Example: If 200 out of 1000 visitors return, the returning visitor rate is 20%.
By analyzing these engagement metrics, you can identify your most popular content, understand user behavior, and make data-driven decisions to improve content strategy and user experience.
Subscriber Behavior Metrics
These metrics provide insights into subscriber behavior, helping you understand customer satisfaction, revenue potential, and churn prevention strategies.
Churn rate
This metric measures the percentage of subscribers who cancel their subscriptions within a specific period.
Churn Rate = (Number of subscribers lost / Total number of subscribers at the beginning of the period) * 100
Example: If a publication loses 100 subscribers out of 1000 in a month, the churn rate is 10%.
Subscription plan performance
Analyzing which subscription plans are most popular and profitable helps optimize pricing and packaging. This metric is often presented in a tabular or graphical format showing the number of subscribers and revenue generated by each plan.
Upgrade/downgrade rates
Tracking subscriber movements between different plans provides insights into customer satisfaction and value perception.
Upgrade Rate = (Number of subscribers upgrading / Total number of subscribers) * 100
Downgrade Rate = (Number of subscribers downgrading / Total number of subscribers) * 100
Free trial conversion rate
This metric measures the percentage of free trial users who convert to paid subscribers.
Free Trial Conversion Rate = (Number of subscribers from free trials / Total number of free trial sign-ups) * 100
Example: If 100 out of 500 free trial users subscribe, the conversion rate is 20%.
By carefully analyzing these metrics, you can identify opportunities to improve customer retention, optimize subscription plans, and enhance the overall subscriber experience.
Analyzing the impact of different messaging and value propositions on user behavior.
Key metrics to track: click-through rates, conversion rates, subscription length.
Paywall design impact
Evaluating the influence of paywall design elements (layout, color scheme, imagery) on user experience and conversion.
Key metrics to track: time spent on paywall, conversion rate, bounce rate.
By leveraging these advanced metrics and conducting rigorous experimentation, publishers can fine-tune their paywall strategy for maximum impact on visitors and subscribers.
Analyzing and Actioning Paywall Metrics
Building a Data-Driven Paywall Strategy
Ensuring the success of your paywall strategy involves:
Establishing clear goals: Define what you want to achieve with your paywall (e.g., increase revenue, grow subscribers, improve engagement).
Selecting key metrics: Choose the metrics that align with your goals.
Data collection: Implement robust data tracking and collection processes.
Data analysis: Use analytics tools to uncover patterns, trends, and correlations within the data.
Using Metrics to Identify Optimization Opportunities
Metrics can help identify areas for improvement:
Low conversion rates: Investigate paywall design, messaging, and placement.
High bounce rates: Analyze paywall triggers, user experience, and content relevance.
Low engagement: Evaluate content quality, variety, and promotion.
High churn rates: Examine subscriber satisfaction, value perception, and competitive offerings.
Implementing Changes and Measuring Impact
Experimentation: Test different paywall variations using A/B testing techniques to determine the most effective approach.
Iterative improvement: Continuously refine your paywall strategy based on performance data.
Measuring impact: Track the performance of implemented changes to evaluate their effectiveness.
Tools and Technologies for Paywall Analytics
Leverage analytics tools to streamline data collection, analysis, and reporting:
Website analytics platforms: Use sites like Google Analytics to collect website data.
Customer data platforms: Collect and unify customer data from various sources.
Subscription management platforms: Platforms like Nami ML provide insights into subscriber behavior and churn.
By combining data analysis, experimentation, and continuous optimization, publishers can build a high-performing paywall that drives sustainable revenue growth.
KPIs and Metrics Set the Direction for Paywall Success
Effective paywall management is essential for the long-term success of digital publishers. For this, it is essential to closely monitor a comprehensive set of metrics, aligned to business goals. Such metrics give app growth marketers and product owners invaluable insights into subscriber behavior, paywall performance, and revenue generation.
Key metrics such as conversion rates, engagement levels, churn rates, and revenue metrics provide a holistic view of paywall health. It's crucial to remember that paywall optimization is not a one-time effort – it is an ongoing process. The digital landscape is constantly witnessing new trends and subscriber preferences change over time. Therefore, continuous monitoring and adaptation are essential.
Ultimately, the success of a paywall hinges on the ability to make data-driven decisions. By harnessing the power of metrics, publishers and app owners can create a paywall strategy that not only drives revenue but also delivers exceptional value to subscribers – the ultimate jackpot that lies at the end of the rainbow.
Capturing and retaining subscribers is a complex challenge for app businesses. With a large number of devices at users' fingertips, crafting a paywall strategy that resonates across different platforms has become a daunting task.
Gone are the days of a one-size-fits-all approach. Users interact with apps differently on smartphones, tablets, desktops, and smart TVs. What works seamlessly on a mobile device might fall flat on a larger screen. To truly maximize revenue and user satisfaction, you need a paywall strategy as diverse as the devices themselves.
The digital landscape is a patchwork of screens, each with its own unique audience and behavior.
Ignoring these differences can lead to missed opportunities, frustrated users, and lower revenue. Users have different expectations, consumption habits, and purchasing behaviors across devices. A paywall that doesn't cater to these nuances is likely to underperform.
To truly optimize your paywall strategy, you need a deep understanding of how users interact with your app on different platforms. This is where our ebook becomes an invaluable resource.
Your Secret Weapon: Device-Specific Paywall Strategies
In our ebook, discover how to:
Optimize for mobile: Capture the attention of on-the-go users with persuasive messaging and frictionless checkout processes.
Master the web: Design paywalls that seamlessly integrate into the desktop experience, striking the perfect balance between information and conversion.
Conquer the living room: Create immersive paywall experiences that captivate viewers on the big screen and drive subscriptions.
By understanding the unique characteristics of each platform, you can create paywalls that resonate with your audience and drive significant growth.
You can also learn about how to:
Leverage analytics: Gain valuable insights into user behavior, conversion rates, and churn.
Master A/B testing: Experiment with different paywall variations to identify what works best for your audience.
Optimize for success: Continuously refine your paywall strategy based on data-driven insights.
Ready to Dominate? Download Your Free Ebook Now!
Don't miss out on this opportunity to gain a competitive edge. Download your free copy today and start building paywalls that truly deliver results.
When it comes to designing mobile apps, one of the most important decisions developers need to make is whether to use native user interface elements or web views. While web views can be more versatile, they often fall short in terms of user experience and functionality. In particular, paywall screens are an area where native UI elements shine.
Here are some of the benefits of using native UI elements for paywall screens in mobile apps:
Consistent Look and Feel
Native UI elements ensure that the app looks and feels consistent across different devices and operating systems. This helps to establish a sense of familiarity and trust with the user, which can be crucial in convincing them to pay for content or services.
Faster Loading Times
Web views can be slower to load, which can frustrate users and discourage them from making a purchase. With native UI elements, paywall screens load quickly and seamlessly, which can help to improve conversion rates.
Native UI Elements for Paywall allow Better User Experience
Native UI elements are designed specifically for mobile devices. This means they are optimized for touch screens, smaller screens, and other mobile-specific features. These native elements can help to create a more intuitive and enjoyable user experience. A more enjoyable user experience will encourage users to engage with the app and make purchases.
Native UI elements are more secure than web views, as they are less vulnerable to attacks such as cross-site scripting and injection attacks. This can help to protect sensitive user information and improve user trust in the app.
With native UI elements, developers have more control over the design and functionality of paywall screens. This means they can create a unique and engaging user experience that reflects the brand and appeals to the target audience.
In addition to these benefits, native UI elements also allow paywalls to leverage system features like localization, accessibility, dark mode, and more. Let's take a closer look at each of these features:
Localization
By using native UI elements, developers can take advantage of the built-in localization support provided by mobile operating systems. This makes it easier to create paywall screens that are localized for different languages and regions, which can improve the user experience and increase the app's reach.
Accessibility
Native UI elements also provide better accessibility support than web views. This means paywall screens can be designed to be more accessible to users with disabilities, such as those with visual impairments. This can help to improve user satisfaction and ensure compliance with accessibility guidelines.
Dark Mode
With the increasing popularity of dark mode, native UI elements allow paywall screens to automatically adapt to the user's system-wide preference. This can create a more seamless and immersive experience, which can help to increase user engagement and satisfaction.
Native UI elements also allow paywall screens to leverage system features like haptic feedback, which can improve the user experience by providing tactile feedback for user interactions. This can make the app feel more responsive and engaging, which can encourage users to make purchases.
If you're looking to create paywall screens for your mobile app, consider using Nami's no code paywall solution. With Nami, you can have the best of both worlds by creating paywalls that are rendered using native UI elements. This means you can take advantage of all the benefits of native UI elements, such as faster loading times, better user experience, improved security, and system feature integration, without the need for coding skills. By using Nami, you can create paywalls that are customized to your brand, easy to use, and optimized for revenue generation. So why wait? Get started with Nami today and take your mobile app to the next level.
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If you have a development team, you might be considering building a paywall in-house. Why should you use a paywall solution instead? Here are our top reasons why you should use a no-code paywall solution for your subscription app business.
See a Live Preview in a No-Code Paywall Builder
When coding a paywall, you spend a lot of time staring at lines of code and not a lot of time focusing on the layout and design. With a no-code paywall builder, you get to skip right to designing and editing colors and copy live.
Industry best practices for paywalls are constantly changing. Rather than spending days of development on 1 paywall design and being hesitant to change it, use a solution that is continually evolving and adding new components and layouts.
Nami’s no-code paywall builder has dozens of paywall designs available out of the box. And we are always adding more designs that require no development time to add to your app.
Nami’s library of no-code paywall template designs
The Apple App Store requires your mobile app to go through review each time you submit an update. While review often goes smoothly, your app update can get delayed for everything from long review times to new guidelines that require big product changes. According to Apple, “...forty percent of apps or updates submitted to Apple are rejected...” - CNBC, Inside Apple’s team that greenlights iPhone apps for the App Store
40% percent of apps or updates submitted to Apple are rejected
With a no-code paywall builder you can make big and small changes that go live immediately without the hassle.
Test Faster
When you want to grow your app revenue, you need to optimize paywall conversion rate. To do this, you need to make frequent updates and enhancements to your paywall and purchase funnel. If you are always relying on development to make change, testing grinds to a halt.
With Nami’s no-code paywall builder, you can create 2 variants of the same paywall in minutes. Then use our campaign view to set up a one-click A/B test with customizable split and audience filtering. When your campaign goes live, your app audience immediately starts getting the test paywalls.
When you are coding your own paywall, analytics are often the last thing on your mind. But without data telling you if users are viewing or purchasing from a paywall, you are in the dark about paywall performance. Choose instead a no-code paywall solution that has a full package of analytics. Nami analytics are specifically designed to give you the fullest picture of how your app is performing.
Use a no-code paywall builder to build paywalls live, experiment with new paywall designs, avoid App Store review delays, test faster, and get built-in analytics.
WWDC22 wrapped up this week and we've got you covered on the key announcements relating to payments, monetization, and in-app purchases from Apple WWDC22:
Major New Apple Pay Merchant Features
Benchmarks in App Analytics
SKAdNetwork 4.0
In-App Purchase Testing Improvements
Refinements to StoreKit 2
💳 Apple Pay
Apple Pay received major new capabilities to will help merchants remove purchase friction and do more. Let’s take a look:
Tap to Pay on iPhone
Apps that accept payments via an approved payments partner such as Stripe or Square can now accept contactless payments. This way, no extra hardware is required to accept payments from customers using Apple Pay, Apple Watch, contactless credit or debit cards, or other digital wallets.
Apple Pay Later
BNPL - buy now, pay layer - is coming to Apple Pay. Customers can now split a purchase across four equal payments over six weeks. No additional interest or fees are applied, and merchants don’t have to do anything.
Order Tracking
Once an Apple Pay payment is complete, merchants can how add additional order details that will show up seamlessly in the Wallet. For example, surface order tracking details, order changes, or provide easy access to customer service options.
Merchant Tokens
Automatic or recurring payments can now happen independent of a device using merchant tokens. This means if a user upgrades to a new iPhone, their payment information will remain active even if they remove a card from their old device.
Merchants can also support new transaction types to fine-tune the payment experience with the Payment Request API.
App Store App Analytics will soon have new App Benchmarks so you can see how your app’s performance compares to your peers. Peers are determined by Apple based upon your category (e.g. Travel) and business model (e.g. subscription). This is done in a way to protect end user privacy and to protect your app’s specific performance. Benchmark results are shown via a percentile distribution.
Here are the metrics available for comparing your app to others:
App Store Conversion Rate
Conversion rate is the rate at which users download or re-download your app after seeing it on the App Store. This metric will let you compare your user acquisition to your competitors.
Retention
Benchmark your app’s retention on Day 1, Day 7, and Day 28 post-download compared to your competitors. Strong retention over time is a good measurement for how well your app is doing in keeping users engaged.
Crash Rates
See how well your app avoids crashes versus your peers. Crashes are a negative user experience that can cause users to find alternatives.
📏 SKAdNetwork 4.0
Apple’s privacy-focused click measurement solution is taking another leap forward. SKAdNetwork 4.0 will support new capabilities and is coming later this year. Advancements include:
SKAdNetwork for the web
Advertises will be able to attribute web-based ad interactions that lead to an app download from Apple’s App Store. This will give app publishers are more holistic view of their app campaigns.
Multiple Conversions
Postbacks from multiple conversion windows will help advertisers and ad networks better understand user app engagement over time.
Hierarchical Source Identifiers and Conversion Values
Advertising becomes more flexible and gets more attribution information while still maintaining end user privacy.
🧪 IAP Testing Improvements
Similar to the App Store's in-app events, LiveOps will include an Events feature. Events will be surfaced throughout the Play Store to give you more exposure.
Sync IAP Products to Xcode
Bring App Store Connect IAP products to Xcode for testing without manually re-entering data.
More Xcode Testing Scenarios
Test new scenarios such as code redemptions, refund requests, price increases, or grace periods. This makes it much easier to validate certain previously hard to test scenarios.
Sandbox
The IAP sandbox is getting better. At last, Apple is making it easier to add sandbox testers and to test certain complex scenarios in the sandbox environment. This is a welcome addition as you advance your IAP implementation from development to App Store release.
👩💻 StoreKit 2 & Server API Refinements
Introduced last year at WWDC21, StoreKit 2 was a major step forward for app monetization via in-app purchases or subscriptions. This year, Apple is further refining StoreKit 2 to make it even easier for developers to work with.
AppTransaction API
App developers now have the ability to get more transaction detail via the AppTransaction API in StoreKit 2. Developers can more easily access the transaction history in-app. Additionally, transitioning an app from a paid to freemium business model is now easier than ever.
App Store Server API Notification History
Now app developers can have a history of notifications and in-app purchase transactions sent to their backend via the App Store Server API. This is useful when your backend server has an outage or if you need to replay events for scenario testing. The new API also allows you to look up IAP purchase history.
SwiftUI APIs
Lastly, Apple is extending more StoreKit 2 APIs such as presenting an offer sheet to SwiftUI apps. This is a welcome addition as SwiftUI matures and more and more developers adopt SwiftUI as their first choice for building apps for Apple platforms.
WWDC22 made a lot significant announcements for app publishers related to payments, monetization, and in-app purchases. From Apple Pay merchant improvements, to App Store Benchmarks, to IAP improvements, developers can look forward to having access to the most robust commerce capabilities yet.
Combine Apple’s commerce advancements with Nami’s entitlement engine, native paywall manager, and paywall A/B testing , and it’s easier than ever to grow and optimize your app revenue. If you’re interested in giving Nami a spin for your own app, you can create a free account here.
An Apple Search Ad is the App Store’s native ad format that Apple makes available to app publishers. Search Ad advertising units show up as part of the App Store search experience. Search Ads are a great opportunity for users to discover your app while they are already in the mindset of seeking out a new app.
Types of Apple Search Ads Solutions
Apple Search Ads come in two flavors: Apple Search Ads Basic and Apple Search Ads Advanced.
As the names suggest, Basic is designed for app publishers who want something more set and forget. Advanced accounts offer much more granular control so they are better suited for large publishers, agencies, or developers who want maximum control.
You can use either solution using the relevant sign-in link.
Search Ads Basic
For Apple Search Ads Basic, Apple uses Search Match which automatically match your ad to search terms. This dramatically simplifies setup time.
There are four steps to get started with Basic search ads:
Pick the app you want to promote
Select which countries and regions you want to promote in
Set a monthly budget (up to $10,000 per app)
Specify the maximum price you’re willing to pay for an install (max CPI)
Basic accounts don’t have any complex campaign management. There are no keywords to define, no audience targeting to manage. It’s a simple as setting a budget and max CPI.
To get started with Search Ads Basic sign-in here.
Search Ads Advanced
For Apple Search Ads Advanced, you are responsible for campaign management. In fact, Apple recommends Advanced accounts start with four campaigns reflecting different strategies:
Brand campaign - Search terms for your app or company
Category campaign - Search terms related to your app’s category
Competitorcampaign - Exact keyword match of app’s like yours
Discovery campaign - Broad keyword match to attract a wider audience
The steps to create an Apple Search Ad Advanced campaign are more involved:
Pick the app you want to promote
Choose the ad unit type (Search results or Search tab)
Set a campaign budget (total, time period, daily cap)
Create an ad group
Whether to use Search Match (Search results ad type only)
Select keywords
Refine your audience (by device, customer type, demographics, location)
Set the campaign start and end date
Specify the times and days to run the ads
Choose an ad variation (Search results ad type only)
Within each of these steps is a whole lot of additional steps and configurability that we will cover in an article all about Apple Search Ads Advanced usage. Until then, let’s look at the possible ad units.
There are two types of Apple Search Ads: Search tab and Search results.
Ad Unit: Search Tab
The Search tab ad unit, if available, shows up as the top item under the Suggested apps list. This is an extremely prominent placement since millions of users visit the App Store’s Search tab every day.
A user may see this Apple Search Ad format before they type a search term into the search bar.
Ad pricing for the Search tab unit is based upon a CPM (cost-per-thousand impressions) model where you specify the maximum amount you’re willing to pay. The actual cost is the result of a second price auction. This means you pay based upon what the next closest bidder is willing to pay.
Since this is such a prominent placement, it is attractive to apps with wide appeal. App publishers must be willing to spend real dollars to see impressions.
Search tab units are created using assets also provided to the App Store for your product page. The ad unit looks just like the other Suggested apps in the list, except the row has a light blue background with a small ad badge.
Since Search tab ads show up before the user has typed in the search bar, no keywords are needed to setup this ad type. In addition, you cannot create an Apple Search ad variation since this ad type is automatically build by the App Store using your app icon, app name, and app subtitle.
Search tab ads are only available to Apple Search Ads Advanced accounts.
Ad Unit: Search Results
The Search results ad unit is based upon what a user actually searches for. For example, if a user searches for recipes, the first app in the list is a Search result ad. Like the Search tab unit, the item looks just like a normal search result except for the light blue background and ad badge.
After a user searches for a term, the App Store may surface related search terms. If a user taps on the refined keyword, a different Search Result ad may appear.
A Results ad is priced based upon a CPI (cost per install) model. For Apple Search Ads Basic accounts, Apple will automatically figure out which users to put your ad in front of based upon your app metadata. For Apple Search Ads Advanced accounts, you have more control over which keywords your ad can be shown for.
Creating your first Apple Search Ad is just the start. Once you start promoting your app, it’s important to tracking your ad performance so you can tune and improve your ROAS (return on ad spend). That’s where we will pick up in the next post in these series.
Until then, happy app building!
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