YoY and MoM growth
Discover your and competitors' YoY and MoM metrics to track and enhance growth in the iGaming industry. These tools offer insights into trends, enabling strategic decisions for sustained success.
Year-over-year (YoY) and Month-over-month (MoM) are two commonly used metrics that marketers and analysts rely on to monitor business growth over time. These measures enable a straightforward interpretation of trends by comparing data between equivalent periods. They highlight whether progress accelerates, declines, or remains consistent.
YoY and MoM are among the most ubiquitous metrics that allow for a clear and concise analysis of trends in business growth over time. By comparing data between equivalent periods, they provide a simple interpretation of whether progress is increasing, decreasing, or remaining steady.
What are the formulas for YoY and MoM?
Year-over-year (YoY) and month-over-month (MoM) metrics are valuable tools to measure growth and simplify complex data sets into percentage values.
YoY metric measures the performance between the current and the previous year presented as a percentage difference. For instance, if a company's revenue were $1 million in 2022 and $1.2 million in 2023, the YoY growth would be 20%.
Meanwhile, MoM provides a similar snapshot between the current and preceding months. For example, if a firm generates $100,000 in sales in January and $125,000 in February, its MoM growth is 25%.
Both metrics show expansion, contraction, or stagnation by monitoring changes between equivalent periods. It facilitates straightforward tracking of growth patterns over yearly and monthly periods.
Why should you measure YoY and MoM?
Measuring Year-over-year (YoY) and Month-over-month (MoM) metrics has various purposes and applications, particularly within the iGaming industry:
- Assessing trends and growth: YoY analysis helps iGaming companies understand long-term changes in player behavior and industry performance.
- Identifying seasonal fluctuations: MoM analysis is crucial in the iGaming industry to optimize marketing strategies and maximize engagement and revenue during peak seasons.
- Monitoring the effectiveness of marketing campaigns: MoM metrics help iGaming operators evaluate marketing campaigns and optimize spending to attract and retain players effectively.
- Forecasting and planning: YoY and MoM analysis is vital for forecasting performance and planning strategies in iGaming. It helps companies decide on game development, platform enhancements, and market expansion.
- Monitoring industry trends: YoY and MoM metrics provide insights into iGaming industry trends. Companies can adopt strategies to stay competitive in a rapidly evolving player preferences, regulations, and technology landscape.
Tracking YoY and MoM metrics is vital for iGaming companies to understand player behavior, evaluate business performance, and make data-driven decisions to drive growth and success.
Which metrics impact YoY and MoM Growth?
In the iGaming industry, various essential metrics heavily influence YoY and MoM growth.
- Player acquisition: New player acquisition rates impact YoY and MoM growth, indicating market penetration and revenue potential.
- Player retention: Keeping players is key for growth. Churn and retention rates impact YoY and MoM growth.
- Average revenue per user (ARPU): ARPU measures the average revenue generated per player. Personalized offers and VIP programs can increase ARPU, positively impacting growth.
- Lifetime value (LTV) of players: LTV is the total revenue a player generates while engaging with the platform. Improving engagement and retention strategies increases LTV, contributing to YoY and MoM growth.
- Conversion rates: Higher conversion rates = More revenue potential.
- Engagement metrics: Metrics like time spent on the platform, frequency of visits, and game session duration impact user engagement.
- Gross gaming revenue (GGR): GGR = total wagers - winnings paid. More betting and player participation raises GGR to boost YoY and MoM growth.
- Market share: Monitoring market share is crucial in iGaming. YoY and MoM growth indicate the effectiveness of strategies in attracting players from competitors.
- Customer satisfaction metrics: NPS and customer satisfaction surveys reveal player satisfaction and loyalty insights. Positive trends in these metrics improve acquisition and retention, leading to growth.
- Regulatory compliance and legal factors: Complying with evolving regulations can impact growth YoY and MoM, especially in developing gaming regions.
Analyzing and optimizing these metrics can help iGaming operators achieve long-term growth and success.