In the context of mobile apps, the average session duration is the time or length of an app session, averaged across all app sessions during a specific time period. Google Analytics calculates the average session duration by dividing the total length of all app sessions, by the total number of app sessions during a similar period of time.
For example, user A spent 200 seconds in your app, user B spent 40 seconds and user C spent 150 seconds in a day. The average session duration would be 200+40+150 divided by 3, which is 130.
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