The App Store Marketing Report

The App Store Marketing Report

Despite the increasing growth of the number of mobile apps distributed through the app stores, their usage hasn’t changed much over the past few years. Users are spending the majority of “in-app time” with 2-3 of their favorite apps. This creates additional pressure for developers to stand out with their apps to gain and keep a loyal audience.

BI Intelligence recently produced a report covering the rising acute need for developers to implement competitive mobile app marketing strategy focusing all of their efforts on increasing user in-app time spend and user retention, presented by means of different tactics and tips (both paid and free) that marketers might use.

Here are a few key data points on user behavior and recommended marketing strategies from the report:
Downloads per user are fading: US app users downloaded an average of 8.8 apps per month during 2014. That’s nearly identical to the average monthly download volume three years ago. User in-app time spend and user retention remain challenging. In June 2014, the average user spent about 70% of app time in their three most frequently used apps. About 52% of all apps lose at least half of their peak users after three months.

The cost of user acquisition and retention skyrocketed over the past year. The iOS and Google Play app stores are overcrowded and competition is fiercer than ever. The cost-per-install on iOS increased by 59% this year, while the retention cost for a user who opens the app at least three times in a two-week period is even higher than acquiring a new one and was up to 33% this year.

User retention tips: Developers should focus on marketing their apps just ahead of major new phone or operating-system launches. App marketing costs go up after a new device launches because many apps are competing for the attention of consumers downloading apps to new phones. Apps that are top of mind among users when they first get their phone are likely to retain an advantage, without paying a premium for post-launch promotion.

The rise of app-install ads: App-install ads have become a popular way to drive new downloads while other App Store Optimization (ASO) tactics can help increase visibility through unpaid means. To retain users who already have an app, in-app messages and offers are often effective. For example, a gaming app might push a message offering the user a one-time deal on extra lives so they will continue to play. All of these tactics are covered in more detail in the BI Intelligence report, which you can access by signing up with their services.

Oles Dzyub,
Branded Content Manager at ComboApp