iPhone Users More Valuable Than Android Users
In the utilities segment, the iPhone produced an ARPU of $9.50 compared to $7.20 for Android. In entertainment, the difference in favor of iPhone apps was $6.70 to $4.90, and $4 to $1.90 in games. In terms of the methodology, Mobclix analyzed free apps with more than 500,000 downloads and/or 75,000 daily active users.
The apps included also spent an average of two weeks in their categories "Top 10" listing. The company examined popular titles, but did not necessarily compare the same apps on both platforms. Active users were defined as those using apps three times a week for a minimum of five minutes. Subscription revenue was not included in the study.
From a developer's standpoint, the iPhone is the better platform when it comes to free, ad-supported apps. That, in turn, would suggest that ads in iPhone apps might generate a higher click-through rate than ads in Android apps. But a Nielsen study last fall found that in-app ads on Android had a higher click rate than other operating systems.
One-third of Android users have clicked on an in-app ad compared to 29% for those with Windows Mobile; Apple's iOS, 26%; Palm, 22%; BlackBerry, 15%; and other types of operating systems, 24%. Android also has a much higher percentage of free apps -- 57% -- compared to 28% in Apple's App Store, according to mid-2010 data from mobile research firm Distimo.
Given Apple's cachet, a Mobclix study suggests that brands are still willing to pay a higher premium to have their ads appear on the iPhone than Android devices.