MENLO PARK, Calif. – Verto Analytics, the world’s first consumer-centric measurement company, announced a new methodology for determining the value of a mobile app user based on its newly launched Verto Retention Reports™. The framework gives mobile app developers and digital publishers a more accurate way to understand how their app retention compares against their competitors and identify the strongest potential new users. For the first time, companies can calculate the ROI of their ad spending on mobile.
Verto’s App Watch data* shows that fewer than two percent of all mobile downloads lead to long-term users who can then be monetized through in-app purchasing or mobile advertising. While downloads can be an initial measure of app success, the high rate of initial user churn makes it more important to measure long-term retention and value. Verto’s framework introduces a more relevant way for app publishers and advertisers to connect audience acquisition costs to long-term user value. This can help them optimize future campaign spend for the right types of users and measure profitability on an app title or consumer segment.
Consumers install hundreds of apps during a typical year, but only 18 apps are used on a weekly basis and only seven apps are used on a daily basis. Verto’s App Watch data indicate that most apps retain only 5-10% of users after 30 days. Furthermore, the market for buying downloads is supply-constrained, and the competition on the demand side is increasing. Average CPI (cost-per-install) levels have gone up year after year. Instead, the key to acquiring loyal and profitable users should be based on the rigorous measurement of the potential size, structure, quality, and profile of the app audience. It is also crucial to benchmark a given app publisher’s performance against competitors.
The Verto Retention Reports framework allows companies to measure the following:
-Number of downloads and timing (hour, day of the week)
-Number of active users during and after the first 30 days
-Time spent in the app and the number of sessions users allocate to a single app versus other on-device activities
-Complementary or substitution impact of a new app adopted into use
-Device type (e.g. iPhone, Android)
-App discovery source (e.g. App Store, Google Play, Microsoft App Store, referrals, advertising, search)
-User demographics (device ownership, gender, geographical location, age)
“Mobile app installation advertising is the largest segment of mobile advertising today, but many companies are still struggling with the economics” said Dr. Hannu Verkasalo, CEO of Verto Analytics. “The Verto framework gives mobile app companies and digital publishers the ability to discover and acquire app users with the most potential by benchmarking their behaviors and demographic profile against the industry as a whole and against their competitors.”
Also, using this framework, Verto has uncovered the following mobile audience monetization and retention metrics:
-Games have highest share of downloads (21 percent)* among all types of apps, while social apps have the highest share of time spent (40 percent of all online time)*.
-Communications / social apps are the only app category to retain at least 20 percent of users after 30 days*, while lifestyle and travel apps retain the lowest at five percent.
-More than 37 percent of app installs happen via non-app store referrals including advertising, social, search and reviews.†
-More than 50 percent of shopping and travel app downloads take place via non-app store referrals.*
-Games, photo / video, utility and lifestyle apps have the highest cost of successfully acquiring a long-term loyal user.*
Verto Retention Reports are now available as part of Verto media measurement services. To learn more about Verto Analytics, contact us or download our presentation on the topic. (http://research.vertoanalytics.com/the-true-
*(Verto App WatchTM data, September 2016, U.S. adults, 18+)
†(Verto App WatchTM data, September 2016, 18+ U.S. Internet users)
About Verto Analytics:
Verto Analytics provides a single-source audience measurement solution for monitoring the complex behavior of today’s consumer on every device, app and platform they use throughout the day. We provide data and insights that inform marketing, competitive intelligence, media buying, and product strategy and development.
Backed by EQT Ventures, Conor Venture Partners, and Open Ocean Capital, Verto is a privately held global company with offices in New York City, San Francisco, London, Singapore, Tokyo, Beijing, and Helsinki. Read our blog, follow us on Twitter, or learn more at http://www.vertoanalytics.com.