This week, we announced a new methodology for determining the value of a mobile app user based on our 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 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. Our 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.
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, and 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 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.