The 2015 App Marketing Guide

THE 2015 APP
MARKETING GUIDE
The Data Trends & Takeaways
You Need to Consider in 2015

TABLE OF CONTENTS
Introduction: The Increasing Importance of Apps 3
The 2014 App Engagement Landscape 5
Find #1: Overall Time in App is Increasing
Find #2: Time in App is Higher in Large Screen Devices
Find #3: Higher Mobile App Opens;
Longest Time Spent in Tablet Apps
Section One: Acquisition – Gaining Users 16
Find #4: Paid & Organic Users Perform the Same In-App
Section Two: Retention – Keeping Users 19
Find #5: App Retention is Increasing
Find #6: App Abandonment Risk is Still High
Section Three: Engagement & Marketing – Interacting with Users 27
Find #7: User-Enabled Push Leads to Higher Engagement
Find #8: Targeted Push Messages Have Higher Conversions
Your Five Key Takeaways for 2015 37
Conclusion
TIME IN APP HAS
INCREASED 21%
20% OF APPS WERE
ONLY USED ONCE
IPAD USERS SPEND
23% MORE TIME
IN-APP

THE
INCREASING
IMPORTANCE
OF APPS

T
here’s no denying it: mobile apps have become the
primary way we consume information.
Time spent in mobile apps now far outweighs time spent on
the mobile web, which means consumers have found a new
way to interact with your business; while on the go, and even
when they have access to other mediums like the web and
television. It’s clear that if you want to engage users long-term,
mobile has to be an leading part of your strategy.
Yet many mobile apps still falter, as competition grows (the
number of apps in the Apple App Store passed 1.2 million this
year) and app users’ attention span shrinks. Encouraging app
engagement beyond the first few days can be difficult, and
traditional web tactics don’t apply.
So what does the state of the mobile app industry show us?
What does success look like, and how can brands win over
mobile consumers? What do you need to do to prepare your
app for an optimal and profitable 2015?
This report dives into 2014 mobile data in an effort to:
* Flesh out key themes and major changes in app usage
and trends
* Help frame your 2015 mobile strategy
* Provide five actionable takeaways for planning a
successful year

THE
2014 APP
ENGAGEMENT
LANDSCAPE

H
istorically, the metric most marketers have used
to judge the popularity of an app is the number of
downloads from the App Store or Google Play Store.
We’re here to tell you: tracking downloads is an outdated and
inaccurate way to measure success.
The real insight lies in user retention and interactions, and
answering this question: does your app engage users on their
terms after the download?
2014 was a banner year for app engagement. Time in app
improvedacrosstheboard,andwediscoveredthatlargerscreen
sizes offer additional opportunities for increased engagement.
The data shows that app usage is growing and the potential
for more greater interactions is there. 2014 has proven that the
the defition of success for apps lies in their ability to create an
engaging, dynamic experience that prioritizes ongoing value.

FIN
D
#1
Overall Time in
App is Increasing

MORE FREQUENT APP LAUNCHES DRIVE A
GREATER TIME IN APP
T
he amount of time people spend
in apps has increased 21% over
the last year (time in app being a
function of the average session length
and the average number of sessions for
an app to give an accurate measurement
of engagement).
While the length of individual app sessions
has been relatively constant over the past
year at 5.7 minutes, app launches have
increased from 9.4 times a month to 11.5.
This boost in app launches has driven a
strong 21% increase in time in app.
08
THE AMOUNT OF TIME PEOPLE
SPEND IN APPS HAS INCREASED
21%OVER THE LAST YEAR
Music Health &
Fitness
TravelSocial
Networking
Entertainment Games NewsSports
0
20%
40%
60%
80%
100%
Time in App Increase
Over Past Year
Localytics, August 2013-2014, not all categories represented

P
eople are spending more time
than ever with their apps, but
certain app categories show a
greater increase than others.
Music apps were the big winner with a 79%
increase in time spent with these apps,
resulting in an increase of 64 minutes per
month compared to last year. As more
people shift from iTunes to music apps
such as SoundCloud and iHeartRadio, the
time spent in music apps has drastically
increased.
These apps offer greater flexibility around
music genres, playlists, and radio features.
Most Music apps also incorporate a social
component, allowing people to share
their favorite playlists. These reasons
could explain why Music has seen such a
strong time in app increase over the past
year.
Health and Fitness has shown the second
highest increase in time in app at 51%, for
an average 22 more minutes per month
spent with these apps than last year.
As the hardware specs for smartphones
increase, so too does their potential
to act as a health device. The recently
announcediPhone6andiPhone6+comes
with a new Health app that continuously
measures motion data (which Apple
claims is especially useful for people who
climb stairs).
Similar features came with the Samsung
Galaxy S5 released in May, including
an integrated heart rate monitor and a
fitness tracker. Health features are now
coming standard on many smartphones,
as hardware becomes more advanced
and consumers demonstrate an interest
in fitness tracking.
MUSIC APPS SHOW GREATEST
IMPROVEMENT
09
MUSIC APPS SAW A
79%INCREASE IN TIME IN APP
OVER THE LAST YEAR

Health &
Fitness
Music EntertainmentTravelSocial
Networking
Sports NewsGames
0
5
10
15
20
25
Localytics, August 2014, not all categories represented
App Category Engagement
Session Length (min) App Launches/Month
S
ocial Networking apps exhibit
“snacking” like behavior with the
highest number of app launches
andlowestsessionlength–meaningusers
are opening the app more frequently than
others, but aren’t in there for long. Sports,
Music, and News apps also exhibit a high
number of app launches, likely due to the
timeliness aspect of such apps.
Session length is highest in the Music
category. Music apps are commonly used
during commutes and downtime, so it is
no surprise that Music has the highest
app session length, which helped drive
increased time in app from last year.
SOCIAL NETWORKING DOMINATES APP
LAUNCHES
10

Time in App is
Higher in Large
Screen Devices
FIN
D
#2

Music NewsBooksPhotography EntertainmentGames Health &
Fitness
Sports Social
Networking
0
25%
50%
75%
100%
125%
Time in App Increase
Phones with at Least 5” Screen
Localytics, October 2014, not all categories represented
O
f the verticals we examined, in
2014 there was an average 68%
increase in time in app on phones
with at least a 5-inch screen. In some
cases, the increase is as high as 142%.
Gaming apps demonstrate one of the
largest increases in time in app based on
device screen size. Most Gaming apps
require quick finger movements, which
are easier to do on a large screen.
For most of the other categories
examined, such as Photography, Sports,
News, and Books, an inclination towards
large screen devices for video streaming
or reading is understandable. Music
however, is much more surprising. This
may be because more music apps are
involving a social networking component
for sharing playlists, commenting and
liking.
12
IN 2014 THERE WAS AN AVERAGE
68%INCREASE IN TIME IN APP ON PHONES
WITH AT LEAST A 5-INCH SCREEN. IN
SOME CASES, AS HIGH AS
142%

FIN
D
#3Higher Mobile
App Opens;
Longer Time Spent
in Tablet Apps

iPad iPhone
0
3
6
9
12
15
App Engagement
Session Length (min) App Launches/Month
Localytics, October 2014
M
obile consumers use their
tablets and smartphones in
fundamentally different ways.
For most, their smartphone is always on
them, whereas their tablet usually stays at
home.
By having access to smartphones
throughout the day, this naturally lends
itself to more app launches. In 2014,
iPhone apps were launched an average
36% more times than iPads.
However, iPhone sessions are typically
shorter since people are generally on the
go when using their smartphone or use
mobile apps in small “bites.”
The average session length for an iPhone
is 5.2 minutes, which is over a minute
shorter than their iPad counterparts at 6.4
minutes (a difference of 23%).
While a smartphone may be used for quick
news or sports updates, people typically
usetheiriPadsforlongeractivities,suchas
reading or watching content. Essentially,
the larger the screen size, the more likely
users are to spend more time in apps.
IPAD APPS HAVE A
23%HIGHER AVERAGE SESSION LENGTH
THAN IPHONE APPS
14

S
o, when we look back on 2014, this will ring true: app
engagement is on the rise, and users are looking for
more mobile interactions.
But how does that effect retention rates? And how do you
acquire the users you know will be most engaged? Plus, just
what kind of marketing should you run to improve engagement
and keep users coming back again and again?
Inthenextfewsections,wedigintothedatadetailsbyexamining
2014 trends in user acquisition, retention and marketing tactics,
to determine exactly how you can prep for a phenomenal 2015.

SECTION ONE:
ACQUISITION –
GAINING USERS

FIN
D
#4Paid & Organic
Users Perform the
Same Once In-App

11+1 3 4 62 5 7 98 10
0
20%
40%
60%
80%
100%
Localytics, 2014
Mobile App Engagement
By Acquisition Source for Total Number of Times an App Was Used the First 60 Days
*Users not attributed to any specﬁc acquisition source
Ad Acquired Organic*
U
sers will discover your app in
a variety of different ways – the
most well known being through
organic search in the App Store, a tactic
that has been addressed with the advent
of App Store Optimization.
But in 2014, savvy marketers turned to
targeted ads to drum up awareness and
drive new users to their apps.
And it worked: once in-app, ad acquired
users equaled organic users in terms of
engagement. Specifically, by returning to
the app multiple times within the first 60
days of their first app open.
Users who discover an app via an ad
network are more likely to come back for
a 2nd, 3rd and 4th session than organic
users.
This more frequent early life cycle usage
is likely due to the quality of the ad – if
the creative can convince the user of the
benefit of the app, they are more likely to
give it a couple chances.
It’s natural to assume that organic users
are going to become your power users,
but what this year has shown us is that
paid-to-acquire users have just as much
potential.
18
USERS WHO DISCOVER AN APP
VIA AN AD NETWORK ARE MORE
LIKELY TO COME BACK FOR A
2ND
, 3RD
AND 4TH
SESSION THAN ORGANIC USERS

SECTION TWO:
RETENTION –
KEEPING USERS

FIN
D
#5
App Retention
is Increasing

11+1 3 4 62 5 7 98 10
0
10%
20%
30%
40%
50%
Localytics, June 2014
App Retention Rate
By Total Number of Times an App Was Used
2011 2012 20142013
T
his year, 20% of apps were only
used once, proving that not all
downloads turn into active users,
and that mobile marketing efforts need
to shift focus away from pure acquisition
to instead improving engagement and
retention.
Luckily for app marketers, that 20% is
actually better than past years, improving
from 22% in 2013. In fact, during the last
four years, the percentage of apps used
only once has steadily decreased by 6%.
During the same period, the percentage
of apps used 11 or more times increased
13%, climbing to 39% in 2014, a huge
improvement in long-term retention.
21
THIS YEAR
20%OF APPS WERE ONLY USED ONCE
DURING THE SAME PERIOD,
THE % OF APPS USED 11 OR
MORE TIMES INCREASED
13%CLIMBING TO 39% IN 2014

FIN
D
#6App Abandonment
Risk is Still High

<1 min 1 min - 1 hr 12 hr - 1 day1 hour - 12 hr 1 - 2 days 2-7 days
0
100
200
300
400
500
Average Session Length of 1st
Session
In Seconds, Based on 2nd
Session Interval
Localytics, iOS data
USERS WITH LONGER FIRST APP SESSIONS
ARE FASTEST TO RETURN
A
cross almost every category
and platform, users who had the
longest first app session length
also returned to an app within 1 to 12
hours, followed closely by users who
returned within the first full day.
This latter group of users, who make up
almost half of all returning users, likely
reflects a common behavior: a long first
session length to test the app and another
session sometime within the next day.
Users who had shorter first session
lengths unspurspingly also took days to
return to a newly downloaded app.
23
USERS WHO HAD THE LONGEST FIRST
APP SESSION LENGTH ALSO RETURNED
TO AN APP WITHIN
1-12 HRS

<1 min 1 min - 1 hr 12 hr - 1 day1 hour - 12 hr 1 - 2 days 2-7 days
iPad iPhone
100%
0
20%
40%
60%
80%
% Chance of Never Returning
Localytics, August 2014
MARKETERS FACE THE CHALLENGE OF THE
“APP CHURN RISK WINDOW”
I
n 2014, there was a 60% chance
users who didn’t come back to your
app within seven days never returned.
In examining global iOS (iPad and iPhone)
app usage, we found that the median
user returns within just under 6 hours of
his first app usage.
However, if a user doesn’t launch an app
for a second time within one day from first
use, there is a 40% chance that their first
session will also be their last.
This “Churn Risk Window” increases over
time – when the interval between the first
and second session approaches seven
days, there is a 60% chance that a user
will never return. Essentially, the longer a
user waits to open an app a second time,
the greater the chance they won’t return
again.
24
IN 2014, THERE WAS A
60%CHANCE USERS WHO DIDN’T COME
BACK TO YOUR APP WITHIN SEVEN DAYS
NEVER RETURNED

SOCIAL AND ENTERTAINMENT USERS ARE
QUICKEST TO NEVER RETURN
F
or certain categories, marketers must react even more quickly to re-engage users
before they’re lost. In Social and Entertainment apps, the data shows that if a user
doesn’t try the app again within 12 hours of their first launch, there is greater than a
50% chance he will never open it again.
News apps, on the other hand, have some of the longest intervals between their first and
second app launches: the median churn risk window for this category is almost 24 hours.
Even if a user doesn’t launch a News app again for up to seven days after his first use, there
is still a 59% chance he will return later. This may reflect news cycles that are sometimes
multiple days between big events.
25
IN SOCIAL & ENTERTAINMENT APPS, IF A USER DOESN’T RETURN TO THE
APP WITHIN 12 HOURS THERE IS A
50%+CHANCE HE WILL NEVER RETURN

GamesSports NewsFood & DrinkPhotography Health &
Fitness
Entertainment WeatherSocial
Networking
Music
0
5%
10%
15%
20%
25%
% of Apps Only Used Once
By App Category
Localytics, June 2014
SPORTS AND GAMES APPS HAVE THE
HIGHEST ABANDONMENT RATE
S
ports and Games apps have an
abandonment rate of 23% and
22%, respectively, which is slightly
higher than the 20% average across
all apps. This is likely due to the variety
available and inherent competition among
these apps. Both of these categories rely
heavily on first impressions to engage
users or risk losing them to a competitor.
Alternatively, Social Networking and
Weather apps have the smallest
percentage of apps only used once.
These apps rely more on outside content
that is consistently updated (either friends’
activities or the temperature outside),
and this dynamic nature serves to bring
users back quickly and often. For Social
Networking, the tremendous influence
and addictiveness of social networks
brings in repeat users. As for utility apps,
an app doesn’t need to be especially
engaging; it just needs to perform one
important function such as telling the
weather.
26
SOCIAL NETWORKING & WEATHER
APPS HAVE THE SMALLEST % OF
APPS ONLY USED
ONCE

SECTION THREE:
ENGAGEMENT
& MARKETING –
INTERACTING
WITH USERS

FIN
D
#7User-Enabled
Push Leads to Higher
App Engagement

MusicEcommerce PhotographyFood & DrinkTravel EducationGames Health &
Fitness
SportsSocial
Networking
0
50%
100%
150%
200%
250%
% Higher Engagement with Push Enabled
As Measured by App Launches
APP ENGAGEMENT IS HIGHER AMONGST
PUSH ENABLED USERS
O
neofthebiggestmisconceptions
about app marketing is that
push notifications are intrusive
or annoying to users, and don’t actually
improve retention or boost time in app.
Data we analyzed this year proves that
push messaging is actually a highly
effective tool for app engagement.
We found that 52% of people enable
push notifications on their mobile phones.
Those 52% of people who enable push
average 88% more app launches than
those who disable push notifications. This
number is slightly higher for Android, with
the platform breakdown at 59% Android
and 46% iOS.
This discrepancy is likely due to the fact
that Android push notifications are on
by default, whereas IOS asks the users
during their first session if they would like
to enable push notifications.
Ecommerce sees an enormous 278% lift
in engagement when comparing users
who enable push, versus Health and
Fitness apps, for example, which see only
a 34% bump. This could be because
the majority of eCommerce users are
looking for mobile-specific offers and
discounts, and are more likely see push
messages as deal indicators.
29
PUSH ENABLED USERS AVERAGE
88%MORE APP LAUNCHES THAN THOSE
WHO DISABLE PUSH

100%
Month +1 Month +2 Month +3 Month +4
0
20%
40%
60%
80%
App User Retention
% of Users Using the App in Subseqent Months
Push Enabled Push Disabled
USER RETENTION IS 2-3X HIGHER FOR
PUSH ENABLED USERS
M
inimizing churn is a major pain
point for most app marketers.
The power of push messaging is
evident here, too.
Retention for push-enabled users is
significantly higher than for those who
disable push notifications. Even just one
month after first downloading the app,
the difference in retention is staggering.
On average, 62% of users will return to
the app the following month if they are
being engaged with push messaging,
whereas only 32% of users will return if
not prompted with push.
This gap widens further down the road.
Four months after their first session,
over 1/3 of push enabled users are still
engaging with the app, compared to only
14% of non-push users.
30

11+1 3 4 62 5 7 98 10
0
10%
20%
30%
40%
50%
App Retention Rate
By Push Enablement for Total Number of Times an App Was Used
Push Enabled Push Disabled
PUSH ENABLED USERS HAVE A LOWER APP
ABANDONMENT RATE
R
emember, 20% of apps are used
once and then never used again.
When push messaging is enabled
in an app, this abandonment number
actually decreases to almost 11%.
In other words, 11% of apps with push-
enabled users are only used once,
compared tothe 20% average. Users with
push-enabled also spend more time in an
app, with over 50% of users coming back
to the app at least 11 times.
Even Apple has recognized the power of
push and will be offering interactive
push in iOS 8 in the next month. These
interactive notifications will enable users
to continue to interact with apps – through
push messages – even when not actually
inside an app.
31
11%OF APPS WITH PUSH-ENABLED USERS
ARE ONLY USED ONCE, COMPARED TO
THE 20% AVERAGE

Travel/Lifestyle Games eCommerce/Retail TechnologyMedia/Entertainment
0
2%
4%
6%
8%
10%
Push Messaging Click Rate
By Vertical
Localytics, November 2014
PUSH MESSAGING POPULARITY VARIES BY
INDUSTRY
J
ust as not all pushes are created equal, neither are all categories.
Certain industries have higher click rates than others, depending
on the content and timeliness of the message. Travel and Lifestyle
apps, which often offer quick information, are more likely to be interacted
with than messages with a more complex call to action.
32

FIN
D
#8Targeted Push
Messages Have
Higher Conversions

SEGMENTED PUSH MESSAGES ARE MORE
SUCCESSFUL AT CONVERTING A CLICK
M
arketers who segment their
push messages, compared
to those who blast them to
all users, see significant improvement
in engagement. Our data shows that
broadcast push messages are only
opened by 3% of users.
However, this rate increases to 7% if the
push message is segmented by user
behavior and preferences. In other words,
segmented push messages have over
double the open rate as push messages
blasted to everyone.
A push message – generic or targeted –
can certainly bring a user back into the
app, but it doesn’t guarantee that the user
will actually complete the action you set
out for them to do.
This year, research showed that of
people who open a push notification,
54% of users convert from segmented
push compared to only 15% for broadcast
messages – that’s a 3x improvement in
push messages that are informed by your
app user analytics.
34
SEGMENTED PUSH MESSAGES
HAVE OVER
2XTHE OPEN RATE AS PUSH
MESSAGES BLASTED TO EVERYONE
54%OF USERS CONVERT FROM
SEGMENTED PUSH COMPARED
TO ONLY
15%FOR BROADCAST MESSAGES

MON TUE WED THUR FRI SAT SUN
0
1%
2%
3%
4%
5%
6%
Day of Week
PUSH MESSAGES SENT DURING THE WEEK
AND IN THE AFTERNOON PERFORM BEST
P
ush message click rates are fairly
consistent throughout the week,
but drop on the weekend. During
the week, the click rate average is 5.8%,
but for the weekend the click rate drops
down to 3.5%. Fridays especially see the
highest click rate of over 6%.
According to our data, most apps currently
send their push messages in the evening,
likely thinking that this is when people are
home from work and willing to engage
spend more time in-app.
This, however, is a misconception. Push
messages actually have the greatest click
rate at 6.7% in the afternoon (from 12PM-
5PM). In the morning, the click rate is only
5.3% and at night, shockingly, only 4.6%.
35
PUSH MESSAGES HAVE THE
HIGHEST CLICK RATE AT
6.7%IN THE AFTEROON

10 or Fewer Words 11 – 20 Words 21 or Greater Words
8.8% 4.9% 3.2%
Words
WordsWordsWords
WordsWords
Words
Words Words
Words
Words
Words
Words
Words
WordsWords
Words
Words
Words
Words
WordsWordsWordsWordsWords
Words
WordsWords
Words
WordsWords
WordsWords
Words
Words
Words
Words
Words
Words
Words
Words
Words
Words
Words
Words
WordsWords
Words
Words
Words
Words
Words
Words
WordsWords
Words
Words
Words
Words
Number of Words in Message
SHORT PUSH MESSAGES ALMOST TRIPLE
CLICK RATE
S
horter messages have a higher click rate, by a large margin. Notifications that
have fewer than 10 words have almost double the average click rate than those
with 11+ words. Depending on the actual smartphone your push is received on the
amount of words that appear on the lock screen varies.
Certain smartphones have smaller screens, which results in fewer words appearing on
the lock screen. Because of this, shorter messages are generally more effective since the
entire message will appear on the screen. This concise nature also proves more effective
when it comes to punctuation.
Push messages that deliver a statement perform twice as well as those that ask a question
(a 6% click rate vs. a 3.1% click rate). Asking a question and then answering it may seem
smart in practice, but with limited real estate on the lock screen most users are looking for
clear, definitive content.
36

YOUR
FIVE KEY
TAKEAWAYS
FOR 2015

1. BUSINESSES NEED A PLAN TO ACQUIRE
THE RIGHT USERS FROM MULTIPLE
CHANNELS
Launching an app and hoping it goes viral isn’t a plan, and techniques like App Store
Optimization only go so far in exposing your app to potential new users. There’s a common
theory that organic users are a better investment: they cost nothing to acquire and are
more likely to interact with your app regularly. This year, we found this isn’t true – and that
in fact organic and paid users are equally valuable.
Paid-to-acquire users are typically just as engaged as organic users, which means your
acquisition efforts need to include paid channels like Facebook or ad networks like
MobFox and Millennial Media. Paid campaigns allow you to target an audience of highly
qualified potential users, which is critical to boosting downloads and building your user
base.
More importantly, finding and targeting these ideal users will improve retention and grow
your app far more substantially than through just downloads. When you acquire users who
are actually engaged with your app and use it on a regular basis, you have the foundation
to build a real profitable channel (instead of simply concentrating on attracting more users
and caring little about churn).
38

39
WHAT TO DO IN 2015
Create and optimize an acquisition strategy that includes organic promotion and paid
channels to attract the right mix of users.
Take into account important user metrics, like retention and lifetime value, to determine
which channels result in the most valuable users. What does this mean, exactly? Use app
analytics to track users by campaign, and answer these questions:
* How frequently do these users return?
* How much time do they spend in-app?
* What is their combined lifetime value?
* What is the ROI of this channel (when looking at ad spend and total user lifetime
value)?
Your plans should also include promotion across the different channels and mediums you
regularly use for brand marketing: social media, blogging, even the creation of a microsite
providing detailed information about the app all contribute to organic acquisition. When
it comes to ads, diversify your partnerships and experiment with different campaigns to
discover what works (even if it’s not what you initially expected). Develop a plan in which
the paid/organic split delivers the right results for you.

2. LARGER SCREEN SIZES OFFER MORE
WAYS TO KEEP USERS IN-APP LONGER
Great apps don’t offer a one-size-fits-all experience.
In 2014, there were more mobile app launches than tablet or web apps because users
are increasingly on the go and rely on their smartphones (and therefor apps) to access
information, content and features quickly. This concept is even further demonstrated by
the data showing social networking and music apps with a higher number of launches.
But we also saw that larger screen devices have higher engagement rates, primarily
when it comes to time in app and session length. Enhanced screen size means enhanced
capabilities, including important visuals and features that keep users engaged and in-app
longer. It is, essentially, a bigger playing field.
Thus, users “snack” on mobile apps and, well, enjoy a long meal with tablet or phablet
apps.
Don’t worry: this shouldn’t (and doesn’t) lead to a crossroads. Users are simply using apps
differently, and not necessarily favoring one over the other.
40

WHAT TO DO IN 2015
Diversify and customize. Namely, play to the strengths found in the data.
When you launch a new version of your mobile app in 2015, design it to give users the
fastest, easiest and most efficient path to completing an event or accessing a key feature:
* Track which screen flows are most popular and eliminate bottlenecks;
* Use your analytics to create conversion funnels and see where users are dropping
off; and
* Consider ways to provide easier access or present users with a feature earlier
in the experience
With your tablet app, expand: add new and innovative features that capitalize on the larger
screen size and offer the user additional ways to continue interacting with the app. Think
outside the box and test new app elements on a bigger screen. Take the opportunity to
run NPS surveys and ask loyal users to rate your app (since they’re spending so much
time in it, to begin with). Go big.
41

3. THE KEY TO RETENTION IS IN THE FIRST
APP SESSION
As we discovered this year, across almost every category and platform, users who had the
longest first session length also returned to the app the fastest, typically within 12 hours.
These users see the value in your app right away, and are likely to turn into power users
and have the greatest worth to your brand long-term.
The longer a user waits to return to the app for his second session, the more likely he is
to never return.
When it comes to user retention, you need to win early to win often. The first app session
sets the stage for any and all future interactions; so providing value at the onset is critical
to keeping momentum. Focusing your efforts on creating the optimal first session is the
crucial to creating an initial relationship and providing interest from the onset.
42

WHAT TO DO IN 2015
Bring ease and interest to the forefront.
Define the key value of your app and make it immediately known – don’t make app users
go looking for it. The key is to create a “sticky” initial experience.
Upon first app open, make important features instantly visible and accessible. This could
be in the form of a short series of intro screens that the user can navigate, or helpful call
outs. Or, it could simply be making a home screen that highlights each feature.
Ask yourself:
* Are there any deterrents to immediate feature access?
* Is the intro too short, too long, too spam-like, or too cluttered?
* Does the home screen UI optimize for the right elements?
* What about this experience would make me want to stay?
Also, create a plan to get the push opt-in at the get-go. 2014 proved that push messaging
is clearly a highly successful tactic for increasing engagement. Make the user’s first app
experience great and parlay that into getting push enabled. You can customize an in-app
message outlining the benefits of enabling push, what kind of information the user will
receive, and any and all pros.
43

4. APP USERS ARE ACTIVELY SEEKING OUT
WAYS TO FURTHER INTERACT WITH GREAT
APPS (BUT APPS TODAY AREN’T LIVING UP
TO USER EXPECTATIONS)
There’s a clear gap between the increase we’ve seen in time in app and initial retention
rates, and the App Churn Risk Window and abandonment rates.
Since 2011, app retention (in looking at the first 11 sessions) has improved substantially,
and the number of apps only used once continues to decrease. Time in app alone has
increased 21%. The clear conclusion is that app usage is growing, and users want to
discover and interact with great apps.
Supply and demand in the app space is higher than ever before; but the actual quality
delivered doesn’t yet meet expectations. While time in app is up, there’s still a 60%
chance that users who don’t return after seven days never will, and in certain verticals the
abandonment rate is higher (~23%) than the increase we’ve seen in time in app.
Many of the improvements in retention and usage can be attributed to an increased
understanding of and focus on user engagement, which has enabled developers to create
more useful apps. But there’s still much to do to shrink this gap that has little to do with
the app UI. Increasing app engagement isn’t just a development initiative; it’s a marketing
initiative.
Now, users are looking for a bidirectional experience when interacting with apps – quite
simply, they want an app that listens to them and optimizes accordingly. This means
running customized app marketing and innovating on brilliant new features.
44

WHAT TO DO IN 2015
Plan to retain and engage users by enabling app marketing campaigns that speak to their
individual wants and needs. This means going beyond developing new app versions with
a better UI, and trends into the territory of push and in-app messaging and A/B testing
marketing.
Start by defining your app user personas and creating user segments to reflect those
personas (including loyal users, purchasers, unengaged users, social sharers, etc.) With
these evolving segments, you can run highly targeted app marketing campaigns to engage
users via in-app and push messaging. You can answer critical questions, including:
* What kind of information, offers, and content do they enjoy?
* What kind of messages can improve their app experience?
* Do these messages help to re-engage them in-app?
* Do these messages improve retention over time?
* Are these user segments now more likely to engage with new or different app
features?
When you can create marketing that’s targeted to your users based on real data, you
create a relationship grounded in their needs and better understand the value in your app
from their eyes.
Next step? Evolve.
Seeking out and creating new app features isn’t the onus of developers – app marketers
are now in the trenches of analytics, campaigns and user behavior, which all work to drive
app evolution. In order to create a great app (one that exceeds user expectations), you
have to know what they want be the one to execute on it first. In some cases, you need
to be the one to define what users are looking for before they even really understand.
Using data to inform feature creation, and working in the mindset of your users, you can
grow your app.
45

5. PERSONALIZED USER EXPERIENCES ARE
THE NEXT BIG STEP
When it comes to app marketing, what we found in 2014 is that, typically, push message
copyneedstobeshort,clearandenticing–butbeyondthat,thecontentorofferassociated
needs to speak to your users. This year, we discovered that segmented push messages
have almost double the average click rate as broadcast notifications.
Given the popularity of push messages as a marketing tool, they’re a good indicator of
what does and doesn’t work in app marketing. This year, push notifications are signaling
that targeting and personalization are the clear winners in app marketing. In order to
execute on this, you need to know app users in and out and what their expectations are
to effectively personalize.
Your app users are people, and they consist of more than just their in-app behavior.
Increasingly, your audience is interacting with your brand in a number of different ways –
some of which aren’t even traceable. The most effective way to gain a complete view of
your users is with cross-channel analytics.
46

WHAT TO DO IN 2015
Make your marketing relevant and make it valuable to the individual. Creating customized
campaigns uses the best of your analytics and user data to discover (and provide) the
best information, offers, and content possible.
Using in-app behavior to inform personalization is one way to ensure a great app user
experience; but it’s only half of the equation. To enable truly personalized experiences,
this data has to include channels outside of just your app.
Compile profile and behavioral information within your cross-channel analytics to truly
understand how your audience operates. This includes:
* Attributes like gender, age, location, or favorites; and
* Actions like last in-store purchase, emails opened, or events attended
By gathering customer information from all channels, you gain a complete view of
users: who they are, what they want, what they need, and what they expect. Use this to
inform your app roadmap, your marketing campaigns, and how you better their mobile
experience. Maintain these elements when thinking of the user experience: dynamic and
personalized.
47

48
CONCLUSION
When it comes to your app, you need to be constantly evolving.
We’ve seen the app industry rise and change rapidly, with user expectations leading the
charge and their experience at the forefront of what consistutes success.
The next year in mobile is going to focus on improving user engagement and retention
even further by creating dynamic, personalized experiences, and creating user profiles
that represent a complete view of your customer across all channels. The clear conclusion:
apps cannot be successful if they remain static.
Inadditiontocross-channelcapabilties,appmarketingisgoingtobecomeaboutretargeting
to re-engage users who have abandoned your app. Essentially, regardless of where your
user is inside or outside of the app, you need a plan to engage them. Integrated analytics
and marketing platforms allow you to track user behavior and automate smarketer
campaigns to engage them. The right platform should also house behavioral and profile
data about your users from their online and in-store interactions.
App usage is only going to continue growing; along with it, user expectations. Rising to
meet these expectations, treating your users as people along a journey, and identifying
the value in your app are all key to keeping your app useful and relevant. How are you
going to accomplish this in 2015?

READY TO START CREATING
PERSONALIZED APP EXPERIENCES?
Learn how to incorporate personalization into your app in three easy steps,
and give users highly-targeted & relevant content, offers and information.
Download “How to Use Personalization to Create a Great App Experience,”
your free guide to app personalization 101.
DOWNLOAD YOUR COPY

The 2015 App Marketing Guide

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The 2015 App Marketing Guide