RadiumOne Mobile Data Report Finds High-Value Users Drive 85 Percent of App Revenue

RadiumOne Mobile Data Report Finds High-Value Users Drive 85 Percent of App Revenue

SAN FRANCISCO — March 24, 2016 – RadiumOne, a leading global marketing technology company providing programmatic audience buying solutions for the world’s top brands and agencies, 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 percent 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.

Click to tweet: Show me the app money: high-value users drive 85% of #mobile app revenue says @RadiumOne data http://po.st/StateOfMobile.

High-value users were only 17 percent of the overall user base among retail, sports, communications and music/book apps. To break it down further:

  • 18 percent of retail apps’ users are considered high-value
  • 28 percent of sports apps’ users are considered high-value
  • 18 percent of music or book apps’ users are considered high-value
  • 16 percent of communication apps’ users are considered high-value

Retail Insights
The report drove deeper into behaviors 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 percent 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 percent 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 percent 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 percent 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 behaviors 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.

Methodology

  • Data analyzed is for user in-app activity and install data from January 2016 across smartphone and tablets including iPhone, iPad and Android devices
  • High-value users those who have generated revenue through in app purchases or ad monetization over the last 30 days
  • Data derived from in app events and ad engagement across third party apps for over 100 million devices

About RadiumOne
RadiumOne is a leading global marketing technology company providing programmatic audience buying solutions for the world’s top brands and agencies. RadiumOne’s platform connects brands to their next customers by incorporating valuable, proprietary data about behaviors, actions and interests demonstrated by consumers through the company’s proprietary mobile and desktop software. Using insights and data intelligence, RadiumOne helps marketers activate customer engagement in real-time across different devices, locations and screens. Based in San Francisco, RadiumOne has offices across the US, Canada, Europe and Asia Pacific. To learn more about RadiumOne, please visit http://www.radiumone.com.