Lifetime Value
THE CORNERSTONE OF
APP MARKETING
2018 LTV Benchmarks
IN COOPERATION WITH
key findings
01 02 03
Revenue from app marketing is up 80% There are significant differences in The US and the UK are in a league of their
since 2016 despite growing challenges. marketing performance between own in revenue generation but there is
gaming, shopping, and travel verticals potential for growth in emerging markets
Q1 2018 LTV Benchmarks
2
IN COOPERATION WITH
04 05
Timing re-engagement to the LTV curve Connecting cost to revenue is essential to
will propel revenue growth. determining bottom line.
Q1 2018 LTV Benchmarks
When there's a decline in revenue, marketers Although not in the scope of this report, it is
should run re-engagement campaigns across important to emphasize that app marketers
paid and owned channels. Encouraging should connect cost to LTV to determine
ongoing usage with effective revenue-related return on ad spend (ROAS). In our recent
messaging (e.g., 10% off your next purchase) AppsFlyer Performance Index, we found that
can help apps generate more business from in both gaming and non-gaming categories,
the average user. high revenue has a stronger correlation with
ROAS than a low CPI. That means marketers
should pay attention to both metrics, but
revenue optimization comes first.
3
IN COOPERATION WITH
LTVLifetime
~Value
Q1 2018 LTV Benchmarks
4
IN
IN COOPERATION
COOPERATION WITH
WITH
INTRODUCTION
Q1 2018 LTV Benchmarks
5
IN COOPERATION WITH
Challenges of the App Mobile has created tremendous opportunities for marketers to
6
IN COOPERATION WITH
The subscription model is most beneficial their apps’ success by improving user loyalty
for a minority of apps that consistently and increasing LTV. The only way to achieve
provide ongoing value to loyal users and offer this is to rely on data, granular measurement
regularly updated features or content. and actionable analytics.
Ultimately, the vast majority of revenue for Maximizing the value of non-organic installs
apps comes from IAP and IAA. The former is key as they become increasingly important.
commands the lion’s share of revenue — be With the right data in hand, marketers can
it from buying coins in a game, purchasing a make the right decisions to ensure this goal is
t-shirt in a shopping app, or booking a flight met. * To find out how to measure Facebook Audience Network ad revenue
with AppsFlyer, please refer to the appendix
in a travel app. However, the latter is eating
an increasingly larger piece of the pie as
more and more developers seek to
7
IN COOPERATION WITH
8
IN
IN COOPERATION
COOPERATION WITH
WITH
9
IN COOPERATION WITH
250 million
Non-organic installs sampled during
3,800 Apps $2.4 Billion
Total revenue measured worldwide
during Q1 2018
the first half of January 2018 from
the top 300 of AppsFlyer’s integrated
media partners.
All data used in the report is measured by AppsFlyer, a mobile attribution and marketing analytics company and an official All data is anonymous and aggregated.
Facebook Mobile Measurement Partner (MMP) that measures the effectiveness of its clients’ app marketing campaigns. This is
Data presented did not come from Facebook, nor was procured from Facebook.
done via integrations with leading media partners as well as its propriety SDK implemented in its clients’ apps.
10
IN COOPERATION WITH
How We Measured LTV To determine the most accurate LTV benchmark based on historical
data, we singled out 10 different install days across the first half of
January 2018. We then looked at each day as its own cohort, measuring
its generated in-app purchase (IAP) revenue throughout 90 days. It is
therefore referred to as the Day 90 LTV and can also be called the Day
90 ARPU (Average Revenue Per User).
11
IN COOPERATION WITH
Marketing-Driven App Global Non-Organic Day 90 Average User LTV Trend (USD)*
Revenue Rising
+8% 5.3
As marketers become increasingly adept with the use of data, they
are able to better leverage it to increase revenue. In fact, between +69% 4.9
2016 and 2017, the share of apps that measured revenue has tripled.
When revenue is measured, it can be properly optimized, which is
Q1 2018 LTV Benchmarks
why we see a 69% YoY climb between these years, and an 83% jump 2.9
between 2016 and 2018.
* Includes IAP data
from 40 top countries
The decline in growth between 2017 and 2018 is likely the result of
across all verticals and
heightened competition in the app space, and a relative slowdown platforms combined
in revenue optimization after the initial surge driven by the mass
adoption of revenue measurement.
12
IN
IN COOPERATION
COOPERATION WITH
WITH
Gaming
Q1 2018 LTV Benchmarks
13
GAMING IN COOPERATION WITH
Global Benchmarks
Q1 2018 LTV Benchmarks
14
GAMING IN COOPERATION WITH
The average gamer spends $1.7 during a 90-day period. When isolating paying users,
the number jumps over 40 times. Though less than 4% of users actually make in-app
purchases, these users are extremely valuable.
15
GAMING IN COOPERATION WITH
iOS Players
Revenue Per User* & Share of Buyers By Install Type
(Global, Gaming)
Share of Buying
Users (90 Days)
16
GAMING IN COOPERATION WITH
Gaming App Revenue Per User* & Share of Buyers By Install Type
(Global, Gaming)
Marketers 1.76
Excel At Finding
1.31 The organic/non-organic gap in
gaming is the least pronounced of
all verticals. This is because
Paying Users
a) data-savvy gaming marketers
Q1 2018 LTV Benchmarks
Organic
Share of Buying
17
GAMING IN COOPERATION WITH
Country Breakdown
Q1 2018 LTV Benchmarks
18
GAMING IN COOPERATION WITH
Most
Non-Organic LTV (All User Average) Curve* (USD, Gaming)
Mature US and UK markets generate significantly higher revenue and their growth rate doesn’t drop after 30 days. In
Revenue is
contrast, in developing markets like Brazil, India and Indonesia, revenue is much lower and growth is relatively minimal.
China lies somewhat in between mature and developing markets, and this is also evident in their LTV.
Generated
1.6
1.42
1.4
1.32
Early On
Q1 2018 LTV Benchmarks
1.2
1.0
0.85
0.8
The US and UK markets
stand above the crowd 0.6
0.45
0.42
with increased revenue
0.26
growth over time 0.4
0.20
0.2
Day 0 Day 7 Day 14 Day 22 Day 30 Day 60 Day 90
19
GAMING IN COOPERATION WITH
Paying
Non-Organic LTV (Average Paying User) Curve* (USD, Gaming)
More Alike
50.0
49.33
43.96
42.54
40.0
Across
Q1 2018 LTV Benchmarks
36.25
31.27
30.0
30.86
Different
25.68
20.0
Countries
10.0
20
GAMING IN COOPERATION WITH
Users, Only
3.4%
likelihood to land users who will make their 2.9%
2.8%
first purchase within 24 hours of an install
2.7%
About 2% Make
1.8%
1.5%
1.3% 2.1% 2.1%
1st purchase
1.0%
0.9% 1.1%
0.7% 1.1%
0.3%
Within a Week
0.2%
Q1 2018 LTV Benchmarks
Russia UK US
21
GAMING IN COOPERATION WITH
10% 9% 11%
10% 9% 9%
16%
18% 17% 19% 16% 15% 16%
19%
48% 46% 44%
44% 46% 45%
32%
22
GAMING IN COOPERATION WITH
01 02
Key
Focusing on quality is top priority Relying on data drives results for gaming
Q1 2018 LTV Benchmarks
marketers
Though less than 4% of gamers actually make
Takeaways
in-app purchases, they drive the ship. For The organic/non-organic gap in gaming is the
gaming app marketers, these users represent smallest of all the verticals. This is because
the reason why today especially, user data-savvy gaming marketers excel at
acquisition is all about quality. This is true for all optimizing for revenue, and brand affinity in
key markets. Not only is the average revenue organic discovery in gaming is relatively low.
from paying gamers 40 times higher than the
average among all gamers, their growth rate
only climbs over time (after the week 1 surge).
23
GAMING IN COOPERATION WITH
03 04 05
Re-engaging users at the right time can Discovering new markets can open up Paying users who become loyal are more
Q1 2018 LTV Benchmarks
Because revenue generated in the first week Mature US and UK markets generate Over 30% of paying gamers make more than
is significant, and then mostly drops off, it is significantly higher revenue but are also three purchases within a 90-day period — not
important to time re-engagement campaigns known to be fiercely competitive. In contrast, a small sum. Re-engaging the 2- or 3-time
accordingly when the LTV curve begins to in developing markets like Brazil, India and purchasers can increase this number even
flatten. Effective messaging at the right time Indonesia, revenue is much lower, but the further.
is key. potential to optimize and grow is greater.
China represents an exciting opportunity with
increased revenue, a high rate of paying users
and a massive audience.
24
IN
IN COOPERATION
COOPERATION WITH
WITH
shopping
Q1 2018 LTV Benchmarks
25
SHOPPING IN COOPERATION WITH
Global Benchmarks
Q1 2018 LTV Benchmarks
26
SHOPPING IN COOPERATION WITH
$13.88 9.7%
Q1 2018 LTV Benchmarks
Shopping app consumers often know the brand before installing its app.
As a result, their brand affinity is strong and consequently so too is the
high share of paying users in this vertical.
27
SHOPPING IN COOPERATION WITH
iOS Shoppers
IAP Revenue Per User & Share of Buyers By
Platform (USD, Global, Shopping)
Share of Buying
Users (90 Days)
28
SHOPPING IN COOPERATION WITH
Shoppers 20.63
No Match
7.1 Brand affinity is strong in the
shopping vertical leading organic
users to look for brands they are
for Organic
familiar with (in contrast to the
Q1 2018 LTV Benchmarks
Shoppers 10.9%
Organic users spend almost 8.9%
triple the money LTV (90 Days)
Organic
Share of Buying
nic
29
SHOPPING IN COOPERATION WITH
Country Breakdown
Q1 2018 LTV Benchmarks
30
SHOPPING IN COOPERATION WITH
Loyal
Cumulative Non-Organic (All User Average) LTV Curve (USD, Shopping)
Shoppers
Weekly Intervals Monthly Intervals
10.0
9.50
9.23
Propel
8.0
Revenue
6.37
Q1 2018 LTV Benchmarks
6.0
Growth Over
4.0
4.04
3.33
2.77
90-Day Period
2.0
31
SHOPPING IN COOPERATION WITH
Users, Only
9.0%
8.0%
4.0% 4.4%
A Week
Q1 2018 LTV Benchmarks
5.9%
5.8% Day 1
Day 3
4.0% 5.0%
3.5%
Day 7
1.8% 2.4% Day 30
1.1%
1.8%
Russia UK US
32
SHOPPING IN COOPERATION WITH
11%
24% 26% 25%
25% 30%
9%
9% 9%
10% 20% 13%
10%
17%
18%
21% 18% 20%
33
SHOPPING IN COOPERATION WITH
01 02
Key
Focusing on iOS will increase revenue but Exploring the potential of running
Q1 2018 LTV Benchmarks
Takeaways
Consumers who shop with iOS devices are far
more active with 70% higher average revenue The UK’s performance is well above the
than Android. However, Android scale is far too average of other key markets when it comes
large to ignore, and Android users are active to in-app shopping. The UK has the highest
shoppers as their share of paying consumers LTV, the highest share of paying users and the
indicates — almost the same as iOS at 9.6%. By largest number of consumers making more
targeting high-end Android devices, marketers than three purchases in 90 days.
can increase the LTV from this platform.
34
IN COOPERATION WITH
03 04
Securing first purchase will help Timing re-engagement campaigns is vital
Q1 2018 LTV Benchmarks
35
IN
IN COOPERATION
COOPERATION WITH
WITH
travel
Q1 2018 LTV Benchmarks
36
TRAVEL IN COOPERATION WITH
Global Benchmarks
Q1 2018 LTV Benchmarks
37
TRAVEL IN COOPERATION WITH
$29.42 9.6%
Q1 2018 LTV Benchmarks
38
TRAVEL IN COOPERATION WITH
Share of iOS
IAP Revenue Per User & Share of Buyers By
Install Type (USD, Global, Travel)
13.0%
Share of Buying
Users (90 Days)
39
TRAVEL IN COOPERATION WITH
Organic
Share of Buying
nic
40
IN COOPERATION WITH
Country Breakdown
Q1 2018 LTV Benchmarks
41
TRAVEL IN COOPERATION WITH
Two Distinct
Cumulative Non-Organic Average User LTV Curve (USD, Travel)
Long-Term 70.0
Revenue
60.0 58.83
Q1 2018 LTV Benchmarks
49.82
50.0
Differs By GEO
40.0
30.0
25.98
24.38
The LTV curve in the US, UK and 20.0
42
TRAVEL IN COOPERATION WITH
The US
First-Purchase Distribution Among Non-Organic Users
(Cumulative, Travel)
Conversion
5.4% first day is 3x higher than
4.6%
3.7% other key markets (2.6x in the
2.8% 2.9% first week and 2.3x in the first
1.6%
2.1% 1.8% month)
Rate in a
1.4% 0.7%
Q1 2018 LTV Benchmarks
League of
12.7%
9.2% 9.8%
4.0%
Day 1
Day 3
Day 7
Day 30
2.8%
2.3%
1.4%
Russia UK US
43
TRAVEL IN COOPERATION WITH
3% 9% 9% 8%
15% 19%
4%
7% 6% 7%
Q1 2018 LTV Benchmarks
10%
18% 7%
17% 17% 16%
20% 15%
44
TRAVEL IN COOPERATION WITH
01 02
Key
Running more campaigns will increase the Relying more heavily on data will improve
Q1 2018 LTV Benchmarks
Takeaways
A travel app generates significant value from The significant gap between organic and non-
an organic user. There is always a lift in organic organic performance can narrow when travel
installs when running campaigns (although app marketers become more adept in the use
at a much lower rate than 2-3 years ago). of data – just like gaming app marketers.
This increase in organic installs as a result of
marketing activity will also boost LTV.
45
TRAVEL IN COOPERATION WITH
03 04
Re-engaging users after Day 7 can improve Focusing on mature markets will have an
Q1 2018 LTV Benchmarks
46
IN COOPERATION WITH
A Final Word
granularly and connected to attribution data. This helps
Q1 2018 LTV Benchmarks
47
IN COOPERATION WITH
Appendix
Q1 2018 LTV Benchmarks
48
IN COOPERATION WITH
MEASURING AD REVENUE
Why How
Q1 2018 LTV Benchmarks
Smart mobile marketers optimize their activity based on their LTV and
Mobile marketers use the AppsFlyer platform to measure their
ROI performance.
performance across the entire user journey, and across over 4k partner
integrations.
In-app advertising revenue is often a major source of mobile app
revenue.
AppsFlyer measures marketing campaign cost, attributes app installs
and all of their mobile revenues, reporting the real-time ROI of every
By measuring and attributing in-app ad revenue alongside app
dollar spent.
download, subscription and in-app purchase revenues, marketers can
better measure and optimize their media to drive LTV and ROI.
49
IN COOPERATION WITH
01 02
Trigger an AppsFlyer SDK event In the AppsFlyer dashboard, setup your Facebook
when an ad is viewed Audience Network integration.
Q1 2018 LTV Benchmarks
50
IN COOPERATION WITH
51
IN COOPERATION WITH
About
one trillion mobile actions every month, empowering app
marketers and developers to maximize their marketing ROI.
Q1 2018 LTV Benchmarks
AppsFlyer
and 4,000+ other integrated partners, and clients including
HBO, Playtika, Waze, Alibaba, Skyscanner, Activision and 12,000+
leading brands worldwide, AppsFlyer supports marketers from
14 offices across the globe as the go-to resource for the most
successful mobile apps in the world.
52