Aarki Redefines the App Hive Economy with Supervised AI and Deep Neural Networks for Mobile App Retention

The Retention Radar 2025 Report: Decoding App Clusters, User Engagement Pathways, and Retention Drivers Beyond Traditional App Categories

SAN FRANCISCO, Jan. 30, 2025 /PRNewswire/ -- Aarki, a global AI company driving revenue growth for mobile app developers, unveils The Retention Radar 2025 Report, highlighting groundbreaking insights and strategies for app retention and engagement in the evolving "App Hive Economy." As app downloads plateau and consumer behaviors shift, marketers need advanced tools to predict user pathways, optimize Return on Ad Spend (ROAS), and foster sustainable growth. The key lies in retention-focused strategies that address the interconnected nature of app usage and consumer behaviors.

"Success in the mobile app ecosystem depends on more than just acquisition. It's about fostering loyalty and driving meaningful, long-term engagement within the App Hive," said Aman Sareen, CEO of Aarki. "In 2025, our mission is to help marketers navigate this intricate network by understanding users' natural app-hopping behaviors and leveraging data-driven insights for cohesive and effective retention strategies that maximize ROI."

The Evolving App Economy: Retention as the Key to Growth

In 2024, global consumer app spending surged to $127 billion, even as app installations across iOS and Google Play fell by 2.3%. This maturing ecosystem signals a shift where retention and engagement now eclipse acquisition as primary growth drivers. Retention-focused strategies are essential for unlocking sustainable growth and maximizing ROI in this interconnected App Hive.

Subscription-based apps, which represent just 5% of the market, generate nearly half (48%) of all app revenue—which highlights the importance of cultivating loyal user bases. Emerging markets such as India, Mexico and Brazil are fueling growth, while established regions like the U.S. face declining downloads. This fragmented landscape demands tailored strategies based on user behavior and regional preferences.

App Stickiness Index: Measuring Engagement Across Categories

To help measure how frequently users engage with apps across categories, Aarki introduces the App Stickiness Index. Tracking quarterly engagement trends, the index provides developers with actionable insights to refine retention strategies, understanding user behaviors across app categories can inform strategies for promotions, ads, recommendations, and premium experiences. For example, FinTech apps typically score 6–7 on the index, while Gaming apps lead with scores of 7–8.

Aarki's analysis reveals additional notable trends in user engagement including:

• Puzzle Game Users: 77.9% engage with other puzzle games, showing strong category loyalty.
• Shopping App Users: 46.9% engage with casual games, demonstrating diverse preferences.
• Social App Users: Represent the largest segment (76%) engaging in non-gaming activities, with notable crossover into news and magazine apps (22.4%).
• Gaming Apps: Dominate 41% of all downloads but require re-engagement strategies for long-term retention.

Understanding these behaviors enables marketers to design campaigns tailored to user preferences, fostering app stickiness and driving growth across categories.

Retention-Focused Strategies for Marketers

To help marketers decode user pathways and maximize ROI, Aarki's DSP platform uses an AI-powered Deep Neural Network (DNN) to analyze behavioral patterns from Day 1 through Day 30, uncovering insights to foster loyalty and drive growth. Research shows that increasing user retention by just 5% can boost profits by up to 95%, underscoring its critical importance. Key findings from Aarki include:

• Puzzle games deliver steady return on ad spend (ROAS) and foster a loyal player base, while role-playing games (RPGs) stand out for exceptional engagement and retention, making them ideal for subscription models and exclusive content.
• Simulation games excel with strong early engagement and benefit from regular updates and limited time offers.
• Word games, though underperforming in retention, present opportunities through social features and competitive modes to enhance monetization.

"By leveraging deep neural networks, Aarki delivers fast and precise ROAS insights—often as early as Day 7—allowing marketers to adapt campaigns in real-time," Sareen added. "Aarki is taking the lead in the industry with its Supervised AI and Synthesized Cohort analysis, helping marketers decode user journeys, identify high-LTV segments, and optimize engagement. This turns fleeting interactions into lasting retention and maximizes ROI for sustainable growth."

To access the industry report, click here.

About Aarki:
Aarki is an AI company that delivers mobile advertising solutions that drive revenue growth for mobile app developers. Aarki allows brands to effectively engage audiences in a privacy-first world by using billions of contextual bidding signals coupled with proprietary machine learning and behavioral models. Working with hundreds of advertisers globally and managing over 5M mobile ad requests per second from over 10B devices, Aarki is independently operated and headquartered in San Francisco, CA with offices across the US, EMEA and APAC

SOURCE Aarki, Inc.