An analysis of app usage on over 100 million smartphones and tablets by RadiumOne reveals that high-value users account for just 17% of the audience but 85% of app revenue and, consequently, what the 3 key things marketers can do to find these high-value users to increase app revenue.
Anyone interested in the full report ca
n contact radiumonepr@shiftcomm.com.
How well do you know your app’s high-value app users? Read @RadiumOne‘s State of Mobile Acquisition Report: https://t.co/add8MKbwZz
— RadiumOne (@RadiumOne) 24 March 2016
RadiumOne Mobile Data Report Finds High-Value Users Drive 85% of App Revenue
Data finds activities within and outside of apps can help companies increase revenue, retain loyal users and attract new ones
RadiumOne, today released the “State of Mobile Acquisition” report, highlighting how companies can use mobile data to ultimately increase app revenue. The report uncovered the activities of “high-value” users within apps, which are users who have generated revenue in the last 30 days.
Overall, the data showed that marketers have a huge opportunity to acquire more high-value mobile users via their own apps and even outside of them. High-value users engage 4x more than the average user and account for, on average, 85% of app revenue across retail, sports, communication and music/books categories. The report also found that the difference between a high-value user and the average user is biggest within communication apps, where high-value users have 5x as many in-app sessions as the average user.
High-value users were only 17% of the overall user base among retail, sports, communications and music/book apps. To break it down further:
- 18% of retail apps’ users are considered high-value
- 28% of sports apps’ users are considered high-value
- 18% of music or book apps’ users are considered high-value
- 16% of communication apps’ users are considered high-value
Retail Insights
The report drove deeper into behaviours in retail apps and high-value users in particular. The average retail app user has a total of three shopping apps on their mobile device, or 1.4% of all apps they’ve installed. In contrast, the high-value retail user has just one other shopping app on their device. This demonstrates a high level of loyalty to specific retailers by high-value users.
Yet, high-value retail users have 45% more lifestyle apps on their devices than average retail users. This demonstrates an opportunity for retail apps to reach and acquire potential high-value users via other apps. High-value retail users have 62% fewer social gaming apps on their devices than the average user, suggesting that high-value retail users view their device as a shopping and lifestyle tool instead of a gaming tool. For retail companies, there is an opportunity to increase high-value users from 18 to 46% by targeting users outside of a company’s app.
Finding High-Value Users
Findings from this report influence these key strategies for marketers to acquire more high-value mobile users include:
- Focusing on the segment driving the majority of revenue: start with in-app analytics to get to know cohorts, zooming in on the behaviours and characteristics of high-value users
- Looking outside of a company’s own app for signals: taking in data from the entire ecosystem, including third party apps and web sites, to see how users act outside of an app
- The importance of targeting potential high-value users with both in app and mobile web advertising campaigns: these signals will help focus ad spend on users that are most likely to bring companies the most revenue
“This report further underscores the need for marketers to look outside their own app for signals to truly get to know their high-value users,” said Bill Lonergan, CEO at RadiumOne. “Taking in data from the entire ecosystem, including third party apps and web sites, determines how customers act outside of apps and will only help marketers reach them in a more effective way, ultimately leading to increased revenue.”
Anyone interested in the full report can contact radiumonepr@shiftcomm.com.
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