Mobile measurement firm, Verto Analytics, has just rolled out new ways to let clients determine the value of their mobile app users based on its Verto Retention Reports.
This framework offers a new way for app developers and digital publishers to compare their app retention against those of competitiors and single out strong new users. Essentially, that means companies can calculate their own ROI of ad spend on mobile.
The Verto App Watch data highlights how less than 2% of mobile downloads can lead to long-term users who can be monetised via in-app purchasing or mobile advertising.
Downloads are an initial measure, but aren’t great at analysing long-term retention results.
Verto’s framework makes it easier to extract such insight and optimise campaign spend for the best users according to profitability.
Verto also highlights that out of the hundreds of apps consumers install within a 12-month period, only 18 are used on a weekly basis with seven of them used daily. Indeed, most apps retain just 5-10% of their users after 30 days.
The market for download purchases is constrained by supply and competition on the demand side is already huge. Average CPI have increased year-on-year. Verto finds that the key to getting loyal and profitable users is rigorous measurement of the potential size, structure, quality and profile of the app audience.
With Verto’s Retention Reports framework, clients can measure the number of downloads and timing, active users during and after the first 30 days, time spent in-app and sessions per users, the impact of a new app by usage, device types, app discovery sources, as well as standard user demographics.
Dr. Hannu Verkasalo, CEO of Verto Analytics, says:
“Mobile app installation advertising is the largest segment of mobile advertising today, but many companies are still struggling with the economics. 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.”
Verto also recently launched some interesting audience and retention metrics for mobile app developers and marketers.
According to the findings, games see the largest amount of downloads (21%) of all app types, whilst social apps see the most time spent in-app (40%).
Communications and social apps are the only category to retain 20% of users after 30 days, whilst lifestyle and travel apps retain the lowest at 5%. Over 37% of app installs occur via non-app store referrals and over 50% of shopping and travel app downloads take place via non-app store referrals. Games, photo and utility apps come with the highest cost of successfully acquiring long-term and loyal users.