Report: High-Value Users Generate 85% of App Revenue

By Brandy Shaul Comment

Marketing technology company RadiumOne has released its State of Mobile Acquisition report, which analyzed the activities of ‘high-value’ users in iOS and Android apps during January 2016. The report defined high-value users as those who have generated revenue from an in-app purchase or ad monetization in the last 30 days, or who have had at least 30 sessions with an app in the last 30 days.

The report showed high-value users engage with apps four times more than the average user, and, on average, account for 85 percent of app revenue across the retail, books and music, sports and communication app categories.

RadiumOne High Value User Revenue

Breaking high-value users down by app category, the report found 28 percent of sports app users are considered high-value, while 18 percent of retail app users and 18 percent of music and book app users are considered high-value. Finally, 16 percent of communication app users are considered high-value.

According to the report, the average retail app user has three shopping apps on their device, while high-value retail app users have only one. RadiumOne said this indicates high-value retail app users have a higher level of loyalty to specific retailers.

RadiumOne also found high-value retail app users display ‘unique signals’ outside of retail apps, which retail companies can use to identify users who have the potential to be high-value.

Specifically, high-value retail app users were found to have 45 percent more lifestyle apps on their device than the average retail app user (apps like dating, weather and fitness tracking apps, as examples), and 62 percent fewer social gaming apps on their device than the average user.

In a statement, Bill Lonergan, CEO at RadiumOne, commented:

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. 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.

RadiumOne’s complete report is available here.