Benchmarking

What is Benchmarking?

Benchmarking is the process of comparing a company's marketing performance metrics, strategies, and outcomes against industry standards or competitor data to identify gaps and opportunities for improvement. It provides a structured framework for evaluating user acquisition, engagement, retention, monetization, and overall app performance relative to defined reference points. Benchmarking enables teams to set data-driven goals, allocate resources effectively, and measure progress over time.

How it works

Benchmarking works by selecting relevant performance metrics, gathering comparable data from internal records or external industry sources, and systematically analyzing the gaps between current performance and the reference standard. The process follows a repeatable cycle: define the metric, collect baseline data, identify the benchmark, analyze the gap, and implement improvements.

Technical Benchmarking

Technical benchmarking compares the specific capabilities of a product, such as app load times, crash rates, or graphics performance, against those of leading competitors. It is most commonly used by product and engineering teams to prioritize performance improvements that directly affect user experience.

Competitive Benchmarking

Competitive benchmarking evaluates how a business performs on key metrics relative to direct competitors. For example, a subscription app might compare its Day-30 retention rate or onboarding completion rate to industry peers to identify where users are dropping off and why competitors retain more users.

Strategic Benchmarking

Strategic benchmarking examines the broader approaches competitors use to achieve success, such as their monetization models, feature sets, or go-to-market strategies. It goes beyond individual metrics to understand structural advantages that drive sustained growth.

Performance Benchmarking

Performance benchmarking tracks key performance indicators over time, comparing current results against historical baselines or external industry standards. A gaming app, for example, might benchmark its cost per install (CPI) and return on ad spend (ROAS) against vertical averages to assess campaign efficiency.

Internal Benchmarking

Internal benchmarking compares performance across different teams, regions, channels, or time periods within the same organization. It surfaces internal best practices and ensures consistent execution. For instance, comparing user support response times across regional teams can identify the most efficient workflows and replicate them company-wide.

Why it matters

Without benchmarks, marketing teams lack a reliable reference point for determining whether performance is strong, acceptable, or lagging. Benchmarking provides the context needed to interpret data meaningfully. A 20% Day-7 retention rate means something very different in a casual gaming app than in a fintech app, and industry benchmarks surface that distinction.

For growth teams, benchmarking directly informs budget decisions. When a channel's CPI or ROAS deviates meaningfully from the benchmark, it signals an opportunity to reallocate spend or investigate attribution quality. For product teams, benchmarking engagement and retention metrics against cohort data reveals whether new feature releases are improving outcomes relative to a defined standard.

Benchmarking also supports accountability. When goals are anchored to realistic, data-backed reference points rather than arbitrary targets, teams can assess performance more objectively and communicate results with greater confidence to stakeholders. Mobile measurement partners (MMPs) like Airbridge provide aggregated performance data across campaigns and channels, giving marketers a consistent data foundation for meaningful benchmarking.

How to measure and apply benchmarks effectively

1. Define the metrics to benchmark. Start with the metrics most relevant to your current business objective. Common starting points include retention rate, churn rate, cost per install, conversion rate, daily active users, and return on ad spend. Avoid benchmarking too many metrics at once, as this dilutes focus.

2. Establish a baseline. Collect your current performance data for the selected metrics. This baseline serves as the starting point against which all benchmark comparisons are made. Use a consistent time window, such as the previous 90 days, to ensure the baseline reflects current conditions.

3. Identify the appropriate benchmark source. Internal benchmarks use your own historical data and are useful for tracking improvement over time. External benchmarks draw from industry reports, vertical-specific data, or aggregated MMP data. Match the benchmark source to your app category and market, as benchmarks vary significantly by vertical, region, and platform.

4. Analyze the gap. Compare your baseline to the benchmark. For each metric where a meaningful gap exists, investigate root causes before drawing conclusions. A below-benchmark retention rate might reflect an onboarding issue, a targeting mismatch, or a product gap rather than a single fixable problem.

5. Set improvement targets. Use the benchmark as a ceiling to work toward, not just a pass/fail threshold. Set incremental targets that are achievable within a defined period and assign ownership to specific teams or campaigns.

6. Revisit benchmarks regularly. Industry standards shift as platforms evolve, privacy changes affect measurement, and competitive dynamics change. Review benchmarks quarterly to ensure the reference points remain relevant and your comparisons reflect current market conditions.

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