The world’s first consumer-centric measurement company — Verto Analytics — is out with 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,” the Verto team tells us.
The upshot? Companies could finally have a way to 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,” according an emailed statement. “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.”
The new Verto offering provides 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.”
The need is obvious. While consumers install hundreds of apps during a typical year, only 18 apps are used on a weekly basis and only seven apps are used on a daily basis.
“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, the 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.”
To date, Verto has uncovered many mobile audience monetization and retention metrics, including these:
- 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.
The Verto Retention Reports are now available as part of Verto media measurement services.