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App Engagement Peaked in December

JAN 14, 2015

Users Launched Apps 10x Per Month on Average, Especially Media, Entertainment & Travel Apps

The percentage of engaged app users – those who use the same app 10+ times in a month – soared from 25 percent in Q3 to an all-time high of 30 percent in December 2014, according to the Localytics Q4 App Stickiness Index. But user retention – the percentage of users returning to an app within a three-month window – declined, ending the year at 12 percent, as some people abandoned apps when switching over to new devices or upgrading their operating system.

Meanwhile the Localytics Q4 App Launches Index found that apps are opened more than 10 times per month, consistent with Q3. By comparison, the average number of app launches per month recorded in early 2013 was 8.6 and in 2012 was 7.

Media and entertainment apps performed the best for overall app stickiness in Q4 peaking at 26 percent, a 4 percent increase over Q3. Localytics defines app stickiness as the average of an app’s engagement and retention. Business productivity and technology apps experienced the most improvement over the course of 2014, starting at just 15 percent and increasing app stickiness to 23 percent by the end of the year.

Travel and leisure apps experienced the biggest increase in the volume of launches, growing from 10 per month in Q3 up to 12 per month in Q4 – reflecting the season’s Q4 travel trends. Meanwhile, media and entertainment apps remained consistently high at 12 launches per month, on a par with Q3. By contrast, games apps had the lowest number of launches per month, just fewer than eight.

“The high volume of new device launches and increased marketing campaigns in Q4 presents both opportunity and risk for app engagement,” said Raj Aggarwal, CEO of Localytics, an app marketing and analytics platform. “The winners were apps that invested in understanding their users’ behaviors and then delivered personalized interactions and content. This type of smart marketing forges positive app ‘habits,’ ensuring the loyalty of users even as they upgrade to a new iOS or start using a new device.”

The Localytics Indexes provide marketers with a benchmark against which to measure and refine their app engagement strategies. They are compiled through the continuous analysis of 28,000 apps across more than 1.5 billion devices. To view the Localytics Q4 Indexes in detail, please visit: http://www.localytics.com/indexes.

About Localytics

Smart marketing demands powerful analytics. Only Localytics brings app marketing and analytics together in one complete platform. Used in more than 32,000 apps on more than 2.3 billion devices, Localytics helps companies such as ESPN, eBay, Fox, and the New York Times create personalized app experiences that drive higher engagement, loyalty and lifetime value. With one solution, mobile marketers and developers can gather deep, actionable user insights that power predictive intelligence, automate marketing campaigns, and personalize push and in-app messaging. Localytics is headquartered in Boston, MA with offices in San Francisco and London. Investors include Sapphire Ventures, Foundation Capital and Polaris Partners. Learn more at http://www.localytics.com.

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