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Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
Distimo publication-may-2012
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Distimo publication-may-2012

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  • 1. The Need for Cross App Store Publishing and the Best Strategies toPursueBy Gert Jan Spriensma, Analyst at Distimo Amazon Appstore Apple App Store for iPad Apple App Store for iPhone BlackBerry App World Google Play Windows Phone 7 MarketplaceDistimo was founded to solve the challenges created by a widely fragmented app store marketplace filledwith equally fragmented information and statistics.Distimo was launched shortly after the introduction of the first app store. App stores have clearly shownsince that time that they are the way forward for content distribution. The app store model offers anenormous opportunity for developers to get their content out and dramatically improves content discoveryby consumers. However, the mobile market has long been characterized by fragmentation, which isalso displayed in the wide range of mobile application stores that were launched from 2009 on.Distimo is a privately held company based in Utrecht, The Netherlands. Learn more: www.distimo.com Distimo ©2012, some rights reserved
  • 2. Distimo Publication - May 2012 NEW AND NOTEWORTHY Many companies have tried to enter the mobile app distribution market over the past few years, but only a handful of app stores have succeeded. After the initial success of the Apple App Store for iPhone, it seems like we published news on the Distimo blog nearly every week about another app store that went live. Now, after three years in business, many app stores have failed and disappeared, while some late entrants like the Amazon Appstore launched and quickly found success. This month’s publication provides an overview of the current app store landscape and reveals strategies to help developers successfully publish cross app store. The major findings are: •  The average daily download volume among the top 100 most popular free applications in the United States is 4M, while the average daily volumes in the Apple App Store for iPhone and iPad are 82% and 20% respectively of Google Play (formerly Google Android Market). The app volumes in the Windows Phone 7 Marketplace and Amazon Appstore are fairly small compared to the millions of downloads in the other stores, and they are just 2% and 10%, respectively, of the volume of Google Play. •  The way download volume is distributed differs largely per app store: in most categories the free volume is higher in Google Play, while in others, the Apple App Store for iPhone wins, including among the largest categories like Games. •  The revenue among the top 200 highest grossing applications in the United States is distributed completely differently: the Apple App Store for iPhone is the largest with a daily turnover among the top 200 highest grossing applications of 1.9M USD, followed by the Apple App Store for iPad (64%) and Google Play (29%). •  The total number of applications across the six major app stores is 1.3M. There are 980K applications however, when looking at unique applications only. This means that every application is published 1.3 times on average across the different app stores. When looking at the top 300 applications, this cross-store ratio is much higher. For example, 89% of the top 300 free and top 300 paid applications in the Apple App Store for iPad are also available in the Apple App Store for iPhone. •  The top 10 most successful cross-store publishers in April 2012 include Rovio Mobile Ltd., OMGPOP, Gameloft, Electronic Arts, Google, Microsoft Corporation, Apple, ZeptoLab UK Limited, Disney and Adobe Systems Incorporated. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 3. Distimo Publication - May 2012 THE APP STORE LANDSCAPE Apple started the app store revolution in mid-2008 when it launched the Apple App Store for iPhone with 500 available applications. Many developers recognized the opportunity and started developing iPhone applications. And, as the number of applications grew, the perceived value of the iPhone increased as there was basically an app for every need available. Others followed Apple including many operators, device manufacturers, OS developers and some independent parties. Nowadays however, the remaining main players are almost all developing the OS, as well, since the companies that control the platforms also control the successful app stores. The timeline below shows the growth of the various appstores in the United States as well as some of the most important milestone events. Distimo currently tracks all of the most important app stores and these app stores account for a total of 1.3M applications in the United States as of April 2012. The Apple App Store for iPhone is still the largest store available with over 500K available applications, followed by Google Play with over 400K available applications. Although the gap between these two stores is still a significant 100K applications, Google Play is growing at a faster pace. The applications in the Google Play store are not only aimed at phones but also at tablets, while Apple decided to maintain two separate app stores – one for iPhone and one for iPad. If we combine the number of available applications for the Apple App Store for iPhone and iPad, the total is 590K. This is lower than the sum of both as one-quarter of all applications are universal (one package for both iPhone and iPad). The other app stores follow on a respectable distance. The fourth largest app store is Windows Phone 7 Marketplace, which is growing rapidly but has only 70K available applications currently. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 4. Distimo Publication - May 2012 The most recent entrant, the Amazon Appstore, showed 10% growth in the past month and now has 35K applications in store. BlackBerry App World appeared to come to a halt, but recently increased their appeal with their port Android to PlayBook program. WHO ARE ALREADY PUBLISHING CROSS STORE There are currently 1.3M applications available in all app stores combined, however, a large part of those applications are not unique, e.g. Facebook for iPhone, Facebook for Android and Facebook for WP7 are essentially the same app. Multi-platform publishing is increasingly becoming a need for publishers, because one platform is not sufficient if you want to reach the majority of your audience. Many successful publishers start to develop multi-platform immediately, e.g. Rovio launched Angry Birds Space for Android and iOS at the same time. Moreover, despite the fact that multi-platform development is expensive, small independent developers that become successful on one platform also decide to go to other platforms like the recent addition of the Instagram and Flipboard applications on Android show. When looking at the six major app stores the sum of their application is 1.3M, however, when looking at unique applications there are 980K applications. This means that every application is published 1.3 times on average. This figure is naturally higher when looking at the top 300 most popular applications. The graph below depicts the relations per store. For example, the proportion of applications from the top 300 most popular free and paid applications in Google Play that are also available in the Apple App Store for iPhone is 37% or 222 applications. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 5. Distimo Publication - May 2012 This graph reveals that some stores are more interconnected than others. For example, the Apple App Store for iPad and iPhone are highly interconnected, as are Google Play and the Amazon Appstore. We also see that the relationship between BlackBerry App World and Google Play seems to be stronger, which might be an effect of the “Port to PlayBook” program. The top 10 most successful cross-store publishers include Rovio Mobile Ltd., OMGPOP, Gameloft, Electronic Arts, Google, Microsoft Corporation, Apple, ZeptoLab UK Limited, Disney and Adobe Systems Incorporated. WHERE TO PUBLISH CROSS STORE There are many other things that should be considered when publishing cross platform aside from the sheer number of potential customers that are available on each platform. For example, a known issue of Google Play is that Android users are relatively reluctant to pay for applications. One of the reasons for this could be the lack of appealing payment options, especially since the paid volume compared to the free volume is much better in the Amazon Appstore. We offer three strategies for discussion that include: 1) focus on a high number of users, 2) focus on revenue, and, 3) focus on a niche market. Focus on a high number of users If the goal is to get a high number of users; a developer or publisher would have to go for free applications, because in all stores and in all countries the free volume is a minimum of 10 times higher than the paid volume. You could try to monetize your users by advertisement or a premium offering with in-app payments, however it is important to remember that, if the user needs to be use an in-app purchase to unlock essential parts of your application, the usage will be lower and there is a risk that users might rate or review your app badly. Using this strategy, you would need to start with Google Play because the volumes are much higher than in the other app stores. The average daily volume among the top 100 most popular free applications in the United States is 4M, while the average daily volumes in the Apple App Store for iPhone and iPad are 82% and 20% respectively of that in Google Play. The average daily volumes among the top 100 most popular free apps in the Windows Phone 7 Marketplace and Amazon Appstore are fairly small - just 2% and 10%, the volume of Google Play, respectively. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 6. Distimo Publication - May 2012 You would need to opt for a two store strategy including Google Play and the Apple App Store for iPhone in order to secure more than 50% of the free downloads. Focus on revenue The volumes of paid applications are much lower than free ones. The free vs. paid ratios not only differ substantially from store to store, but also per country. This ratio is 11x in the Apple App Store for iPhone in the US, while it is around 50x in the Apple App Store for iPhone in China, for example. You would need to go for applications in the Apple App Store for iPad, followed by the Apple App Store for iPhone, Google Play, Windows Phone 7 Marketplace and Amazon Appstore if you opt to pursue a one-off strategy. The reason the Apple App Store for iPad ranks first is because of the higher selling price, which makes each user more profitable. This rings true even though the revenues do not top the Apple App Store for iPhone. You would have to opt for a two-store strategy including the Apple App Store for iPhone and iPad to secure more than 50% of the potential one-off revenue. A publisher that aims for maximized revenue should consider an in-app strategy since the majority of revenue in the most important stores is derived from applications that feature in-app purchase. Although the one-off revenues in the Apple App Store for iPad are high, the in-app revenue is considerably lower than it is in the Apple App Store for iPhone. Therefore, the order changes in favor of the Apple App Store for iPhone for a true revenue maximizing strategy. In-app purchases have only been recently introduced in the Amazon Appstore and the effects have yet to be seen, but the paid volume history up to this point suggests that the majority of Amazon’s consumer base is – in contrast to the average user in Google Play – willing to pay. It is important to note that publishers will forego a lot of potential customers as the Amazon Appstore user base is much smaller, and the Amazon Appstore is currently only available in the United States. The graph on the next page displays the revenue distribution among the different monetization options per store. Regardless of the app store, more than 60% of the revenue is derived from in-app purchase (all revenue derived from in-app purchases when an app is free). Opposed to the other strategies, publishers can secure more than 50% of the revenue by only focusing on the Apple App Store for iPhone. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 7. Distimo Publication - May 2012 Focus on a niche market The majority of the revenue is generated by games in all of the app stores, however, there are large differences in what kind of applications are popular in the different stores. Educational applications are relatively much more popular than in the other stores in the Apple App Store for iPad, for example. Moreover, some types of applications are only available on one particular platform. For example, personalization applications are not available for the iPhone and iPad. The next page shows per category what store is the best store to go based on the free download volume. We see that in the majority of the categories Google Play is the winner, but in a few of the most popular (Games and Entertainment) categories, the Apple App Store for iPhone takes the lead. Please note that the widget category is not available in the Apple App Stores. The Apple App Store for iPad wins in two categories because the revenues in the in Education and News categories were a factor of three and 10 times higher, while the download volume was only slightly lower than in the other app stores. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 8. Distimo Publication - May 2012 RECAP This publication sheds more detailed light on cross-store publishing strategies. Distimo believes that in today’s fragmented app store space developers need to publish cross-store. Publishers who deploy the cross-store marketing strategy often discover, however, that cross-store marketing brings with it another challenge, e.g. what if your link to Apple App Store is opened by an Android user? To address this challenge, we have developed and launched a new product – AppLink , a single, platform independent download URL for apps across all channels. AppLink supports cross-store publishing and will identify the device and send the user directly to the right app store. Moreover, Distimo tracks the user and can finally give publishers detailed statistics about their marketing campaigns and the effectiveness of different channels. TOP 10 CROSS STORE PUBLISHERS The top 10 most successful cross-store publishers across the six app stores we covered in this report are Rovio Mobile Ltd., OMGPOP, Gameloft, Electronic Arts, Google, Microsoft Corporation, Apple, ZeptoLab UK Limited, Disney and Adobe Systems Incorporated. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 9. Distimo Publication - May 2012 DISTIMO’S PAID FEATURED REPORTS: GAIN DEEP INSIGHTS INTO ALL MAJOR APPLICATION STORES. STARTING AT €399 The reports are available for April 2012 and an annual 2011 report is available for North America, Europe and Asia. In addition to the the major trends in the app stores, each report covers an extra topic: •  The April 2012 report covers month over month pricing trends and provides more insights into the daily download volumes in the major app stores including Google Play. Moreover, it depicts per niche in which store you will gain most downloads and shows the actual downloads to expect in the region. •  The annual 2011 report covers all major trends, in growth and in pricing among others, in the app stores covering the period January 2011 - November 2011. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.
  • 10. Distimo Publication - May 2012 DISTIMO CUSTOM REPORTS Aside from this free monthly publication, Distimo produces custom reports capable of providing specific mobile application store analytics that are relevant to your company. Custom reports are currently available for any country worldwide for the Amazon Appstore, Apple App Store for iPhone, Apple App Store for iPad, Apple Mac App Store, BlackBerry App World, GetJar, Google Android Market, Nokia Ovi Store, Palm App Catalog, Windows Phone 7 Marketplace. Additional application stores will be available in the coming months. To get a better idea of the type of data and metrics that Distimo can provide, please visit our Report product page. CONTACT US For sales enquiries, please contact Remco van den Elzen, VP Business Development at remco@distimo.com or call +31 30 82 00 567. For press enquiries please contact Mindy M. Hull at mindy@mercuryglobalpartners.com or call +31 62 504 7680 (EU) or +1 415 889 9977 (USA). ABOUT DISTIMO Distimo is the innovative app store analytics company built to solve the challenges created by a widely fragmented app store marketplace filled with equally fragmented information and statistics. Distimo Report provides in-depth customized reports for carriers and operators and offers valuable insight into important trends happening within different application stores around the world. Custom reports are currently available for the Apple App Store for iPhone, Apple App Store for iPad, Apple Mac App Store, Amazon Appstore, BlackBerry App World, GetJar, Google Android Market, Nokia Ovi Store, Palm App Catalog, and Windows Phone 7 Marketplace. Distimo Monitor is a free, cross-platform, app monitoring tool for developers that enables them to monitor their own and competitive applications across all app stores, without any adjustments needed to their application’s code. AppLink is a first-of-its- kind, easy-to-use, cross-platform app distribution service within Distimo Monitor that provides developers with detailed insight into their app distribution analytics and their app sales funnel. Founded in 2009, Distimo is a privately held company based in Utrecht, The Netherlands. Follow us on Twitter, read our blog or learn more at http://www.distimo.com. Disclaimer This work is licensed under Creative Commons License “Attribution Noncommercial-Share Alike 3.0 Netherlands”. This license is available for download at http://creativecommons.org/licenses/by-nc-sa/3.0/nl/. This license ables you to use, copy, spread, and build upon this work non-commercially, as long as you credit Distimo and license your new creations under the identical terms. Distimo ©2012, some rights reserved. All trademarks are the property of their respective owners.

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