Copyright RadiumOne

State of Mobile Acquisition

Q1 2016

Find more high-value users

Copyright RadiumOne

Mobile App Report Methodology

Data derived from in app events and ad engagement across 3rd party apps for >100M devices.

*Data analyzed is for customer in-app activity and install data from January 2016 across smartphone and tablets including iPhone, iPad, and Android devices.

High-value users are those who have generated revenue through in app purchases or have used the app every day over the last 30 days.

Copyright RadiumOne

Executive Summary

Marketers have a huge opportunity to acquire more high-value mobile users:

High-value users drive almost all app revenue They make up 85% of revenue across Retail, Sports, Communication and Music/Books apps.

They have unique signals outside of your app For Retail, high-value users show unique behavior within shopping, lifestyle and gaming categories.

Know these signals and more than double your high-value users For Retail, there is an opportunity to increase high-value users from 18% to 46%.

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

High-value users drive almost all app revenue

Copyright RadiumOne

Copyright RadiumOne

High-value users are only 17% of your user base

Share of High-Value Users by Category

Retail apps Sports Apps Music/Books Apps Communication Apps

28% 18%

18% 16%

•  A high-value user is one who has made a purchase within the last 30 days or who has had at least 30 sessions within the last 30 days.

•  Sports apps have the highest percentage of high-value users at 28%, while Retail apps, Music/Books apps and Communications apps are all below 20%.

Copyright RadiumOne

High-value users drive almost all app revenue

Share of App Revenue from High-Value Users by Category

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Communication

Retail

Music/Books

Sports

% Revenue contribution % High-value users

•  High-value users drive 85% of app revenue.

•  High-value users generate four times more revenue than the average user.

•  Music/Books apps derive 99% of their revenue from high-value users.

90%

28%

99%

18%

78%

18%

85%

16%

Copyright RadiumOne

Monthly Sessions by Average and High-Value Users

High-value users use your app 4x more

0

20

40

60

80

100

120

Retail Sports Communication Music/Books

Average user High-value user

3.5x

4.2x

5.5x

2.7x

•  High-value users engage with an app 4x more than the average app user.

•  The difference between a high-value user and the average user is biggest with Communication apps, where high-value users have 5x times as many sessions as the average.

•  App marketers should cater to these high-value users while doing all they can to increase usage among average users through push notifications, retargeting campaigns, rewards and other types of engagement programs.

35

10 16

67

20

109

12

32

High-value users have unique signals outside of your app

Copyright RadiumOne

Copyright RadiumOne

Industry deep dive: Retail observation #1 Retail users are loyal to a small number of Shopping apps

Retail Users’ Share of Shopping Apps vs. Sports Users’ Share of Sports Apps

•  The average Retail app user has a total of just 3 Shopping apps on their device, or 1.4% of all apps they’ve installed.

•  The high-value Retail user has one-third of that, with just 1 other Shopping app on their device.

•  This isn’t the case with other categories, like sports. Sports app users have many Sports apps on their devices. High-value Sports users have an even greater percentage of Sports apps than average users.

24.1%

1.4%

36.6%

0.4%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Sports

Shopping

High-value user Average user

Copyright RadiumOne

Industry deep dive: Retail observation #2 Retail high-value users have more Lifestyle apps

Retail Users’ Share of Lifestyle Apps

•  High-value Retail users have 45% more Lifestyle apps on their devices than average Retail users.

•  Lifestyle apps include dating, weather, emojis, fitness tracking, public transit tickets, maps and astrology - things users access on a day-to-day basis.

30%

Average user High-value user

20% 10% 0%

27.1%

5% 15% 25%

30% 20% 10% 0%

18.7%

5% 15% 25%

45% More

Copyright RadiumOne

20% 10% 0% 5% 15%

7.6%

Industry deep dive: Retail observation #3 Retail high-value users do not play Social Games

Retail Users’ Share of Social Gaming Apps

•  High-value Retail users have 62% fewer Social Gaming apps on their devices than the average user.

•  This suggests that high-value Retail users view their device as a ‘shopping’ tool instead of a ‘gaming’ tool.

20% 10% 0% 5% 15%

19.9%

62% Less

Average user High-value user

Know these signals and more than double your high-value users

Copyright RadiumOne

Copyright RadiumOne

Industry deep dive: Retail conclusion An additional 28% of Retail users exhibit high-value signals

Share of High-Value Potential for Retail

18%

•  18% of Retail users are high-value, those who have made an in app purchase within the last 30 days.

•  Applying the signals of high-value retail users the rest of the user base, we find that another 28% have the potential to be high-value.

•  These signals include: apps that have been installed, websites that have been visited, and ads that have been clicked on.

54%

28%

Average user High-value user High value potential

Copyright RadiumOne

Key Takeaways

We see three key strategies for marketers to acquire more high-value mobile users:

•  Focus on the segment driving the majority of your revenue. Start with in-app analytics to get to know your cohorts, zooming in on the behaviors and characteristics of your highest-value users.

•  Marketers should look outside their own app for signals. To truly get to know your high-value users, take in data from the entire ecosystem, including 3rd party apps and web sites, to see how they act “out in the wild.”

•  Target high-potential users with both in app and mobile web advertising campaigns. These signals will help you to focus your ad spend on users that are most likely to be high-value.

Copyright RadiumOne

We know your next customer.

RadiumOne uses 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.

To learn more about RadiumOne, please visit

http://www.radiumone.com.