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 KOEKKOEKHENDRIK@DISTIMO.COM@HENDRIKKOEKKOEK / @DISTIMO