Retention is the backbone of monetization and plays an important role in predicting future revenues and the total value of users.
AppsFlyer has released its annual report on app and game user retention. Retention is arguably one of the most powerful metrics in mobile marketing and is the backbone of monetization. It plays an important role in predicting future revenues and overall user value.
Retention is both a key metric and possibly the number one challenge for marketers, demonstrating how difficult it is to get users to return to your app and keep them there over time. This is the result of fierce mobile competition and highly demanding users expecting nothing more than a superior experience.
AppsFlyer’s Report is based on 60 billion installs made between July 2019 to September 2020, 21 billion non-organic installs, 30 thousand apps with at least 5 thousand installs, and 4 thousand apps added to re-marketing campaigns.
Key Takeaways from the Benchmark Report:
- Long-term retention (Week 12 rate) among iOS users is 42% higher compared to Android users, as the gap between the platforms widens over time; however, quality comes at a cost with iOS media more expensive than Android.
- There’s a 12% drop in the retention rate of the average app in 2020, while total engagement metrics spiked during lockdown and beyond due to massive demand among new and existing users: app sessions went up 30% year-over-year. As overall quantity jumped and competition further intensified, user quality for the average app suffered.
- Retention rates in developed markets are 80% higher than in the developing markets. Finland, Singapore, Japan, Ireland, and Denmark top the list, while Brazil, Vietnam, Egypt, Turkey, and India are at its bottom.
- Day 30 retention rates among organic users are 23% higher than those of; the trend was demonstrated across every vertical with the exception of Gaming and Video industries.
Global app retention rates by platform (average per app)
Monthly global distribution of key engagement metrics
Global Day 30 retention by category and install type
Day 30 retention rate heat map (Q3 2020)
User retention optimisation best pracices
- Run remarketing campaigns to bring users back to your app and increase retention over time. The impact of remarketing on user retention is clear.
- Start re-engagement and remarketing campaigns as early as possible. Aim to interact with users after about a week, at least until day 30.
- Deliver a premium onboarding experience with deep links that ensure a smooth user transition from ads to installs and conversions.
- Do not overdo it in promotion, otherwise, you risk causing serious contradictions between expectations and reality. This will not only lead to user dissatisfaction, but it can also harm your brand.
- Leave less room for surprises when promoting videos or running game ads.
View full report:
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