THE APPSTORE OPPORTUNITY
Hendrik Koekkoek
WE KNOW APP STORES
1. DISTIMO COLLECTS FACTUAL AND TIMELY MARKET DATA, WORLDWIDE
2. DEDICATED TO MARKETS WHERE APP STORES ARE LEADING DISTRIBUTION CHANNEL
3. INDEPENDENT AND CROSS-STORE ANALYSIS, APPLYING SAME METRICS TO EVERY STORE
DISTIMO MONITOR
1. FREE CROSS-PLATFORM APP STORE MONITORING TOOL FOR DEVELOPERS
2. SUPPORT FOR ALL MAJOR APP STORES
3. TRANSACTIONAL DATA ALLOWS US TO BENCHMARK APPLICATIONS WITH THE MARKET
FREE – TRUSTED BY 8,000 DEVELOPERS – TRACKING 1.5B DOWNLOADS / QUARTER
DISTIMO REPORT
BENCHMARKAPP STORES
HOW DO THE DIFFERENTAPP STORES COMPARE
OVER TIME?
TOP APPS & PUBLISHERS
WHAT IS THE MOSTSUCCESSFUL AND LOCAL
CONTENT?
REVENUE &BUSINESS MODELS
WHAT ARE VOLUMES IN THE MARKET?
HOW DO APPS MONETIZE?
COVERING EVERY APP - IN EVERY MAJOR APP STORE - IN EVERY COUNTRY
THE APPSTORE OPPORTUNITY
APPS ARE A $10 BILLION MARKETGROWING AT 100% PER YEAR
Majority Games, roughly 50% of all free downloads are Games.
For paid applications this figure is even higher, 60% of all paid downloads are Games.
But in terms of revenue, more than 75% of revenue derives from Games.
Angry Birds is downloaded (600M+) over 3 times as much as number of Nintendo DS’s sold
* Mary Meeker / Distimo, based on 200 most grossing / popular applications in United States – March 2012
RANKING & NETWORK EFFECTS SPEED UP POPULARITY
Number 1 generates about 1.5 times as much downloads as number 2.
Ranked around 10 means 3 times as much downloads as being ranked around 50.
* Distimo, based on 200 most popular applications in United States – March 2012
To get To 1 Million Users It Took:
9 Years 9 Months 9 Days
BUT POPULARITY IS TEMPORARY AND CONSUMERS ARE NOT LOYAL
* Flurry / Based on 100 most popular free games in United States – March 2012
296
46
157
Number Of Games In Top Games 100
Number Of Games In Top Games 50
Number Of Games In Top Games 10
“average worldwide 6-month retention rate for all apps was 36%
MONETIZATION IN APPSTORES
IN-APPS DRIVE APP REVENUE
* Based on 200 most grossing apps in United States – March 2012
Free applications with in-apps Paid applications with in-apps Paid applications without in-apps
59% - 72% 64% - 86% 74% - 83%
In all stores more than 59% of the revenue derives from in-apps!
Recently introduced in Amazon App Store, will come to Windows Phone 7 Marketplace as well
Draw something – OMGPOP
Temple Run – Imangi
Word With Friends - Zynga
50% USE VIRTUAL CURRENCIES
* Based on 200 most popular free games in United States – March 2012
Including many of the most popular games in March 2012
51% 49%
Draw something – OMGPOP
Plumber Crack – Fluick
Hidden Objects - Disney
IMPACT OF COUNTRIES CHANGING RAPIDLY
APAC COUNTRIES LARGEST MARKET FOR IPHONE DEVELOPERS
* Based on 200 most popular free iphone applications in each country – March 2012
4M 3.2M 1.3M 0.9M 0.6M
IN FEBRUARY CHINA SURPASSED THE U.S. AS THE LARGEST MARKET IN THE APPLE APP STORE FOR IPAD
BUT WHEN DEVELOPING ABROAD, ACT LOCALLY
* Based on 300 most popular free applications in United States – March 2012
68%
58%54%
36%42%
75%
56%
45%
56%
38%
20%
30%
40%
50%
60%
70%
80%
90%
100%
75%
68%
58%
na
In many countries the majority of the downloads originate from applications that have translated their content in the country’s language.
In China, of the 300 most popular free applications, 60% were only popular in China compared to 21% in the United Kingdom and 22% in the United States.
IMPACT OF STORES CHANGING
GOOGLE PLAY MONETIZATION IS GETTING BETTER
* Based on 200 most grossing applications in United States – March 2012
May 2011 March 2012
<10063.85%
100-99925.71%
1,000-49,9999.29%
>50,0001.15%
<10071.9%
100-99920.7%
1,000-49,9997.3%
>50,0000.1%
The number of available applications more than doubled in the same time-frame.
Daily revenues increased by 65% over the first quarter 2012.
BUT WATCH AMAZON
Already 400k daily downloads of which 10% is paid
Got to 32k applications in one year, the majority also being available in Google Play
Of the 110 applications available in both stores that generate more than 200 USD a day in at least one of both stores, 42 of those earned more money in the Amazon Appstore.
After launch of Kindle Fire daily downloads increased fourteen-fold
* Based on 100 most popular / grossing applications in United States – March 2012
0
1
2
3
4
Millions
400k
WHAT ABOUT THE OTHERS APP STORES?
* Based on 200 most popular applications in United States – March 2012
Strong momentum, relative number of applications growth highest of all app stores.
Download figures increased by 114% to over 100k per day in the last quarter Taptitude making over $1000 a day (ads)
Port to Android applications to BlackBerry platform seems to be successful, increase in number of applications submitted to App World (15k – 20k PlayBook applications already available).
DISTIMO APPLINK; THE CROSS STORE APP SOLUTION
DISTIMO APPLINK; THE CROSS STORE APP SOLUTION
ANALYZE YOUR (COMPETITORS) PERFORMANCE GOTO MONITOR.DISTIMO.COMOR ASK ME FOR A DEMO
The free cross-platform app store monitoring tool for developers
Custom in-depth app store market reports for carriers & manufacturers
For more info, visit report.distimo.com For more info, visit monitor.distimo.com
THANK YOUFOR ANY ENQUIRIES, PLEASE CONTACT:
HENDRIK [email protected]@HENDRIKKOEKKOEK / @DISTIMO