Apple has just launched their latest flagship phones to market and later this year they'll release their uber-flagship: the iPhone X. The iPhone X is the most expensive iPhone yet, at a cool $999. With so many other smartphones on the market offering similar functionality, it begs the question: Do iPhone users simply spend more money than everyone else?
At Wolfgang Digital, we love a bit of data, so we’ve trawled through a massive dataset of 31 million iPhone and Android sessions to finally answer this question. Of course, we’ve got some actionable nuggets of digital marketing strategy at the end, too!
Why am I asking this question?
Way back when, before joining the online marketing world, I sold mobile phones. I couldn’t get my head around why people bought iPhones. They're more expensive than their Android counterparts, which usually offer the same, if not increased, functionality (though you could argue the latter is subjective).
When I moved into the e-commerce department of the same phone retailer, my team would regularly grab a coffee and share little nuggets of interesting e-commerce trends we’d found. My personal favorite was a tale about Apple users spending more than desktop users. The story I read talked about how a hotel raised prices for people booking while using an Apple device. Even with the increased prices, conversion rates didn’t budge as the hotel raked in extra cash.
I’ve always said this story was anecdotal because I simply never saw the data to back it up. Still, it fascinated me.
Finding an answer
Fast forward a few years and I’m sitting in Wolfgang Digital behind the huge dataset that powered our 2017 E-Commerce Benchmark KPI Study. It occurred to me that this data could answer some of the great online questions I’d heard over the years. What better place to start than that tale of Apple users spending more money online than others?
The online world has changed a little since I first asked myself this question, so let’s take a fresh 2017 approach.
Do iPhone users spend more than Android users?
When this hypothesis first appeared, people were comparing Mac desktop users and PC desktop users, but the game has changed since then. To give the hypothesis a fresh 2017 look, we’re going to ask whether iPhone users spend more than Android users. Looking through the 31 million sessions on both iOS and Android operating systems, then filtering the data by mobile, it didn’t take long to find the the answer to this question that had followed me around for years. The results were astonishing:
On average, Android users spend $11.54 per transaction. iPhone users, on the other hand, spend a whopping $32.94 per transaction. That means iPhone users will spend almost three times as much as Android users when visiting an e-commerce site.
Slightly smug that I’ve finally answered my question, how do we turn this from being an interesting nugget of information to an actionable insight?
What does this mean for digital marketers?
As soon as you read about iPhone users spending three times more than Android users, I’m sure you started thinking about targeting users specifically based on their operating system. If iOS users are spending more money than their Android counterparts, doesn’t it make sense to shift your spend and targeting towards iOS users?
You’re right. In both Facebook and AdWords, you can use this information to your advantage.
Targeting operating systems within Facebook
Of the "big two" ad platforms, Facebook offers the most direct form of operating system targeting. When creating your ads, Facebook’s Ad Manager will give you the option to target "All Mobile Devices," "iOS Devices Only," or "Android Devices Only." These options mean you can target those high average order value-generating iPhone users.
Targeting operating systems within AdWords
AdWords will allow you to target operating systems for both Display Campaigns and Video Campaigns. When it comes to Search, you can’t target a specific operating system. You can, however, create an OS-based audience using Google Analytics. Once this audience is built, you can remarket to an iOS audience with "iPhone"-oriented ad texts. Speaking at Wolfgang Essentials this year, Wil Reynolds showed clips of people talking through their decision to click in SERPs. It’s incredible to see people skipping over year-old content before clicking an article that mentions "iPhone." Why? Because that user has an iPhone. That’s the power of relevancy.
You’ll also be able to optimize and personalize your bids in Search, safe in the knowledge that iPhone users are more likely to spend big than Android users.
There you have it. Don’t let those mad stories you hear pass you by. You might just learn something!
Hi Marty
I guess you also have to keep in mind that the buyer of an iphone is not the same as the buyer of a mobile with low end android.
In Spain not everyone has access to an iphone and those who can not buy it can not spend so much on online shopping
Congratulations on the post
Absolutely Luis. "Entry Level" isn't in Apple's vocabulary! I guess the idea here was to prove that for digital marketers. We love a bit of evidence! Thanks so much for reading and commenting.
Totally agree. Would be interesting to see how iPhones compare to flagship android devices (S8, Pixel and etc).
I think you've just given me the next step in this research! Thanks guys!
That´s the point, in Spain the cost of iphone is more expensive so it could be they can spend more in apps or other stuff
Thanks for the comment. This is possible, but to clarify, the dataset I looked at on-site behaviour, not on-phone behaviour. Thanks for reading and getting in touch!
What an epic post! The title had me hooked - it's like click bait ... but with a real valid ending. :P
Thanks Brendan. I'm sure it's no secret, but that's the goal :) Click-bait title that actually delivers! Really appreciate you taking time to read and comment - I'm glad it was worth your while.
We don't find this to be true in the Apartment Listing space. We track lead submissions and find that Android users convert slightly better than iOS. Time on site and pages per session are about the same between the two operating systems. I guess the audience for your site has an impact on value by device.
Thanks T. That's a fascinating insight when moving away from cash to lead gen. Very interesting indeed! thanks for sharing!
Thanks for a thought provoking article Marty!
My pleasure!
Hey Marty,
Very unique topic you share with us. Important factor while making campaign in google adwords Thanks for sharing
Regard
Makemytrip Coupon
Thanks for the feed back! Really appreciate you taking the time to read and comment.
Hi Marty,
I may have just missed it but what vertical is this data set taken from? We do see iOS having an edge but not nearly 3 times as much. Just curious. Thanks for insight. Has got me thinking about the difference between the iOS and Android user base again.
Cheers!
Hey Joshua. I didn't mention a vertical because the research is cross-vertical. Is there a vertical in particular you'd like to see? I might run the data again down the line and could take different verticals into consideration. Again, delighted to hear the article has got you thinking. Regardless of how this translates to your business, I think testing out ideas like this can fuel plenty of innovation and optimisation in your business. Thanks for reading and commenting!
Hi Marty,
Absolutely awesome article! I would have never thought of this perspective, even though we all know that iPhone users tend to spend more in general. It's just something I would have never applied to a specific marketing campaign unless I was promoting iPhone accessories or something similar. You have inspired me to think outside the box and I want to thank you for that! I hope you have a great day :)
Thanks for that Monica! Sometimes you get lost in behind the words when you're creating content and forget that it can have a really positive impact when people read it. Really appreciate you taking the time to read and comment!
Funny, I came here expecting click bait but you really did nail down some facts. From friends who launch apps I could say iPhone users spend more. Thanks for the case study!
Cheers Joe! I felt a bit bad with how clickbaity this felt, but a few have said it's worth it because there are some helpful takeaways!
Very interesting stuff. This is the type of insight that can take an advertising campaign to the next level. I am somehow still battling with making the case for mobile responsive design somehow... but I hope to get to this point soon.
Thanks John! Glad you enjoyed it.
Great Article Marty Meany
As you I always heard the tale about the "IOS users are a better niche over Android users"
But this is the first time I saw someone talk about numbers, I mean always read a post from here or there claiming the same idea without data.
For me the best value of this post is that you actually convert that knowledege in something useful for Facebook Ads and Adwords Campaigns
Thanks for the feedback Roman. Great to hear you value data driven content - I really believe in it! I love hearing about this stuff being used "out in the wild" so if you try it out, be sure to let me know how you get on!
Interesting findings. Thanks for sharing.
I found something similar for a site i manage, however after digging deeper and doing some testing i realised that this difference was caused by all of the varying screensizes for android users. A lot of android devices cut off the bottom of our webpage meaning users didn't realise they could scroll down.
With iPhones its very easy to design and do CRO etc for the journey for their devices. With android users there's so much variation that it's hard to make a journey that works for them all. In addition to this, a lot of older android devices are more clunky to use and less responsive to touch. So i believe it's not a case of them not spending more - it's more that there are more barriers to spending.
Awesome! So you could actually use OS data as a UX indicator. That's really clever! Thanks for the comment, that'll go into my holster for future use!
I'm agree with you, but is not just about old devices. if some does not have the money to buy a new phone, and use some old chinese phone probably does not have the money to make a purchase or even have a digital wallet.
I follow the industry long time ago, and Apple just compete with the Android High Level users. Most of those outdated devices are soled on India, China, Africa or Latin America. So Apple comepte with the Top 20% of the Android users
I think it's important to not over generalise and gather some of your own data before considering excluding Android devices. iPhone users may spend more on average but the figures could look very different in your niche depending on the demographic of your visitors.
I'd also be interested to see the average age and gender of iPhone users compared to Android users, looking deeper into what exactly makes iPhone users spend more on average could provide valuable insights.
Nail meet head! Great comment and totally agree. I not only like the challenge but also that you're eager to dig deeper! I hope people use this article to test out some OS targeting and definitely use if for personalised ad texts. If I go back into the numbers, I'll be sure to split out gender and age profiles - this has come up a few times in the comments. Thanks for reading and commenting guys!
I'd be interested in the data around conversion rates for non-e-commerce sites, as well, say for B2B purchasers. Do iOS users convert or purchase at a higher rate when the buying process is longer? If an iOS user initially fills out a form, are they more likely to make a purchase long-term than an Android lead? If anyone has a resource for this information, I'd love to see it!
I'd also wonder if people are switching from purchasing via laptops/computers to purchasing from mobile as companies' apps and sites on mobile become more user-friendly. Personal anecdote: 2 years ago, most of my purchases were from my laptop after browsing and researching on a phone. Today, since mobile apps are so quick to use, I often find myself browsing and purchasing entirely from my phone.
Thanks for the comment Awesphal. The lead gen research would be really interesting, so that makes the list of things I'll investigate down the line! I'd imagine your personal anecdote rings true for many people online. I'm thinking that would need to be a piece of qualitative research rather than looking at numbers alone. Sorry, just trying to work out the methodology in my head already! Thanks for reading and commenting!
Hi Marty,
Great analysis, this is a very interesting study, and of course, an opportunity for marketers and companies.
The cost of an iPhone is not comparable with the mayority of the android phones on the market but neither is the target or the marketing techniques applied, anyway it would be very interesting to see the behaviour between an android user and an iphone user if the cost was the same.
Thanks Empleo! Yes, I think you've nailed it. Advertising to Android is still really important, what I'm trying to get across is that an iPhone impression is likely to be worth a little extra. The talk from Wil Reynolds also adds to the value...if you didn't check that out yet, there's a link to the video in the article! Thanks for reading and commenting!
Marty, thanks for sharing!
I always enjoy comparisons between iOS and Android users.
Do you have any numbers to share for the same Geos? For example, what's the average transaction between Android and iOS users specifically in the US?
Beyond region-led and AOV based OS comparisons, are there other comparisons you'd be interested in seeing?
I wouldn't have that split by nation in the dataset I pulled, but that gets the brain juices going for a whole other range of data-driven content pieces on a local basis! Thanks Igal, and thanks for both reading and commenting!
I'm quite sure that also in western countries iOS users are spending more, but I'll be surprised if the gap is as big as this global one.
As Android is so popular in many third world countries, I believe it affects the data.
In terms of comparisons I'd want to see data of paid apps on iTunes vs Google Play, the common belief is that iOS users are more likely to pay for apps. And we see that in our in-app purchases too, where we offer an ad-free version on both Android and iOS and it's more popular on iOS.
Other than that if there's any behavior data to compare that would be great to see. I can compare the data we have in our financial app, but do Android users actually spend more time on their apps in general? Perhaps a breakdown by top App types? Not everything that you can track on Android is possible on iOS, but still please do share if you have anything like that :)
Completely agree with the logic there and definitely something that would be worth more of a look. Thanks for all your insights!
Good insight. Thank you for sharing. It is worth a try to make an A|B test on an adwords (or even on facebook), to test both devices. But not every markets have the sames customer, and android users are not the same as iPhone users. It doesn't mean that you should forget android users, because they could be your target market, and you would lose lots of opportunities. I will test on several clients to see if they can increase their ROI.
Thank you
While our data was global, or perhaps even because our data is global, this is a really good point. Actually, I think from your point you could go even further and add the caveat "A|B test everything" to every digital marketing article you read before taking action to ensure you're getting region/business/vertical specific data. Jean-Christophe, would you mind letting me know how you get on with your tests? Like i mentioned in an earlier comment, it's great to see desk research applied "out in the wild" online. Thanks for reading and commenting
Yes, but testing everything costs money :) Sometimes it dilutes the budget too much for actual results. That is why articles published by Moz are so awesome. I will let you know when I get results.
Awesome Jean-Christophe! Look forward to it!
Interesting post I have had an iPhone but currently have an Android for the additional features. It would be interesting to see whether men or women, and also what age groups were the bigger spenders. Gets the brain thinking what else could I compare! Thanks
Hey Cynthia. I've been loving reading and responding to all of the comments, but I think this is one of my personal favorites. "Gets the brain thinking" - exactly what I would have hoped this article would do. Of course, there's some stats and strategy in there, but really it's the concept and methodology should empower you to go play around with your own data. Thanks so much for reading and commenting!
This has fantastic information on how to apply w/ FB and Adwords. Thank you so much. I'd also add that it highlights the importance of doing design QA testing on iOS. If anything's not working properly on your biggest money spending mobile segment, you're hindering conversion rates. Even things like field placeholders.
Thanks Daniel! Delighted you enjoyed it. Yes I think some others had similar comments around OS specifc testing.
Hey Marty,
Did you include assisted conversions in this calculations or is this result only generated by last click attribution?
Hey Burag, this is based on last click.
Marty, spending the cost per transaction doesn't mean that iPhone users spending more times compare to Android users.
We know that both have their pros and cons. The important thing is that you enjoy the device in your hands. As a user friendly prospective, yes' iPhone is easy and convenient too.The design of the iPhone is consistent from device to device, It looks great and the other hand, hardware and software of android is designed by separate companies, It's like unrealistic.
BTW, I like your tips for digital marketers. Thanks :)
Thanks for your feedback Kuldeep - glad you enjoyed the tips! Have you ever carried out some OS based targeting? Really interested to hear how people are getting on with this 'out in the wild'
Wow! I'll start now a Facebook ad to test this. Thank you very much. It's really interesting.
Awesome Mario! Be sure to let us know how it went! Love this stuff out in the wild.
Hi everybody!!! I have a question: if I want to develop an app for my business, wich will be more convenient for develop? android or apple? ... my perception is the people starting to use more and more apple but im not sure for this.
Actually my website don't have an app and I will like to work it, and before to start I would like your opinion. My website is this: https://imprentaonline.cevagraf.coop/es and I really need highly your opinions.
Thank you very much for your time !!
Thanks for the comment Fernando! Bit beyond my expertise but thanks for reading and commenting! Best of luck with your dev work.
Hi Marty,
Really interesting!
Do you have numbers on iPhone VS a comparable phone like a Galaxy? Some lower-end Android phones may not be as conversion friendly and as easy to shop on. Wondering if that impacts your numbers.
Hey Ari,
Not to hand, but I think the consensus is that needs to be the follow up to this article! Keep an eye out for that! Thanks for reading and for fueling the next post!
Awesome! Looking forward!!
This is why Android users are more practical people and like to spend their time wisely.
Thanks for the comment Mindaugas and of course for reading! Not sure where I stand on your statement there. I think some more research into flagship handsets might be warrented. Some really valid points about the sheer volume of entry-level Android phones.
GOOD POINT
But I think that the population of android user is way more then iPhone User
Absolutely Shashi. I think I mentioned earlier in another comment that "entry level" isn't in Apple's vocabulary and this means there are more people on Android it's more affordable and this of course changes the demographic of the user. All in all, I think this makes the research a valid reason to at least A|B test some targeting for your own brand and see how you get on. Thanks for reading and taking the time to comment. Really appreciate it!
Thank you Sir for sharing this valuable information with us. I am a beginner in Digital Marketing, great to learn from you. Thank You.
Hey Angel. Thanks for reading and commenting. I've said elsewhere that it's funny I started out in digital marketing by reading Moz so you're definitely on the right track!
HI Marty,
I like that you verified that assumption that a lot of people would approve instinctively by looking at the data. Never thought of putting that knowledge into action, but maybe I am going to give it a try sooner or later.
Hey Cesare - thanks a mill for the feedback. Be sure to let me know how you get along.
Great article Marty, really nice to see some numbers and actionables. I'm not a game developer but I'm a bit into that "world", and I've seen so many times how mobile game developers tend to preffer to publish their games in the App Store instead of the Play Store just because sales are higher... and that's interesting, taking into account that the App Store publisher fee is 99 $ per year and Play Store is 15 € lifetime!
Glad you enjoyed it Angel!
Great article, tnnx!
Hi Marty,
Thanks for a great post! This confirms what we have already seen as well in different targeting campaigns we have done (not such an excessive difference as yours though but still very substancial). I would expect that this also depends a lot on what your product is as you are targeting people that can afford and want to have high end phones, like somebody said in the earlier comments it would be interesting to see comparison data for flagship android devices and iphones. But even there i can imagine that there is a difference for certain types of products.
Thanks for the feedback Ramon. I think that'll be my next dive into the data. I'll be sure to share how that turns out. Thanks for reading and commenting!