Metrics & Analytics
Updated: August 17, 20246 min read

What is A/B Testing?

Comparing two versions of an ad or app element to determine which performs better.

A/B Testing is a controlled experiment methodology where two variations (A and B) of an advertisement, app feature, or user interface element are tested simultaneously with different user groups to determine which version performs better based on specific metrics.

Why It Matters

A/B testing is fundamental for data-driven optimization in mobile advertising and app development. It eliminates guesswork by providing statistical evidence of what works best for your audience, leading to improved user engagement, higher conversion rates, and increased revenue. For mobile apps, A/B testing can optimize everything from ad placements and creative designs to onboarding flows and monetization strategies.

How to Calculate

A/B test results are evaluated using statistical significance calculations. The basic formula compares conversion rates: Conversion Rate = (Conversions / Total Visitors) × 100. Statistical significance is typically measured using a confidence interval (usually 95%) to ensure results are not due to random chance.

Industry Benchmarks

CategoryAverageGood Performance
Mobile Gaming5-15% improvement20%+ improvement
E-commerce Apps10-25% improvement30%+ improvement
Social Media8-20% improvement25%+ improvement

Best Practices

Run tests for at least one full business cycle (typically 1-2 weeks minimum). Ensure adequate sample sizes for statistical significance (minimum 1000 users per variant). Test one variable at a time to isolate impact. Set clear hypotheses and success metrics before starting. Use proper statistical analysis tools and avoid stopping tests early based on preliminary results.

Examples

Common A/B tests in mobile apps include: testing different ad formats (banner vs. interstitial), comparing onboarding flows, optimizing button colors and placement, testing different pricing strategies, experimenting with push notification copy and timing, and comparing different reward structures in gaming apps.

Notes

A/B testing requires sufficient traffic volume and time to reach statistical significance. Seasonal factors, external events, and user behavior changes can affect results. Consider the practical significance alongside statistical significance - a statistically significant 1% improvement may not justify implementation costs.

Related Topics

testingoptimizationanalyticsexperimentationconversion

Related Terms

Active User Rate (AUR)

A metric that helps app developers understand how their daily active users interact with particular areas of their app.

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Ad Impressions

The number of times an advertisement is displayed to users.

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ARPDAU

Average revenue per daily active user - defines how much revenue each app user brings in on a daily basis.

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