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WHAT ARE APPS?Apps are small computer programs built specifically for mobiledevices. There are apps for almost any situati...
P:2TABLE OF CONTENTSINTRODUCTION TO APPS	4 — How people are using their phone	 5 — App downloader demographics	 6 — Operat...
INTROTOAPPS	P:3SOME BASIC INFORMATION ABOUTAPPLICATIONS FOR MOBILE DEVICES.
HOW PEOPLE USE THEIR PHONESTowards the end of 2011, Nielsen performed a survey of smartphoneowners to how they actually us...
GENDERAPP DOWNLOADER DEMOGRAPHICS57%MALE43%FEMALE41%< $50,00037%$75,00015%$50,000-$74,999INCOME47%18-2939%30-4914%50+AGE25...
OPERATING SYSTEM APP PREFERENCEMobile users have somewhere between 10 and 300 apps on theirdevices. The average Android de...
KINDSOFAPPSP:7INFORMATION ABOUT THE DIFFERENTCATEGORIES OF APPS AND USERS’PREFERENCES FOR DIFFERENT KINDSOF APPS.
BOOKS EDUCATION GAMES ENTERTAINMENTSOCIALNETWORKINGPHOTOS &VIDEOSMUSIC SPORTSNEWS UTILITIESBUSINESS &FINANCELIFESTYLEREFER...
BOOKS23%of user downloadsEDUCATION18%of user downloadsGAMES68%of user downloadsENTERTAINMENT31%of user downloadsSOCIALNETW...
1 0 0%8 0%6 0%4 0%2 0%0%2008 2009 2010 2012Other44%43%44%51%14%17%14%10%8%8%7%3%11%11%13%24%8%15%14%17%7%7%5%4%BooksEducat...
USE OF APPS AFTER FIRST DOWNLOADSports seems better at retaining users over the short term; entertainmentis better at reta...
LIFESTYLEENTERTAINMENTSPORTSGAMESUTILITIES10864200 10 20 30 40 50 60ENGAGEMENT WITH APPS OVER TIMEGames have the highest e...
YEARSDOWNLOADSINBILLIONSGROWTH IN APP DOWNLOADSIt is predicted in August 2012 that Android app downloads will overtakeiOS ...
INCREASE IN AVAILABLE APPSApple had a commanding lead in the number of apps in their apps store,but due to the increase in...
APPSANDPRICEP:15DATA ABOUT HOW PRICE AFFECTS APPDOWNLOAD AND ENGAGEMENT RATES.
F R E E$ . 9 9$ 1 . 9 9$2 . 9 9 -$4 . 9 9 *$5.99+**36%29%13%13%9%THE PRICE OF APPSApps in the Apple app store have prices ...
FREE APPS V. PURCHASEDMany mobile device owners are weary of paying for apps. Thus therehas been a trend towards a drop in...
APP USAGE OVER TIME PAID V. FREEUsers stop using the average application quickly, the long termaudiences are generally 1% ...
Books Restaurants/DiningCoupons/DiscountsGames Maps/NavigationMusic SocialNetworkingNews Entertainment SportsBanking/Finan...
APP ENGAGEMENT PAID V. FREEPaid apps have higher engagement rates over time versus free apps,although free and paid engage...
OTHERSTATSP:21FURTHER INFORMATION ABOUT APPDEVELOPMENT STRATEGIES, THEWINDOWS PHONE APP ENVIRONMENTAND MARKETING COSTS.
APP DEVELOPMENT: A GAMBLEThere have been over 10 billion apps sold in app stores today with asmuch as $250 million being s...
2,345Both95,870iOSDevelopers33,430AndroidDevelopersAPP DEVELOPMENT: PLATFORMAnother question that many app developers have...
COST PER LOYAL USERThe average cost to acquire a loyal user through proactive marketing hasfluctuated from a little over a...
WINDOWS APPSThe Windows phone 7 platform and its app store are still relatively newto the marketplace and has had relative...
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Apps White Papers

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A white paper examining the state of the app marketplace. Last updated 2012

Published in: Technology, News & Politics
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Transcript of "Apps White Papers"

  1. 1. WHAT ARE APPS?Apps are small computer programs built specifically for mobiledevices. There are apps for almost any situation available and can costanywhere from free to $100 or more, however most cost a dollar ortwo. Most apps are downloaded from the Apple App store or AndroidPlay Marketplace. Apps functions generally can fall into one of 3categories: Content Creation, Content Consumption and Games, withsome overlap.APPS.Last Updated: 7/23/2012
  2. 2. P:2TABLE OF CONTENTSINTRODUCTION TO APPS 4 — How people are using their phone 5 — App downloader demographics 6 — Operating system app preferencesKINDS OF APPS 8 — App categories 9 — App categories popularity 10 — Most populous app categories 11 — Use of apps after first download by category 12 — Engagement with apps over time by category 13 — Growth in app downloads by operating system 14 — Increase in available apps by operating system storeAPPS AND PRICE 16 — The price of apps 17 — Free apps v. purchased apps 18 — App usage over time paid v. free 19 — Downloads by cost and category 20 — App engagement paid v. freeOTHER STATS 22 — App development: a gamble 23 — App development: platform 24 — Cost per loyal user 25 — Windows apps
  3. 3. INTROTOAPPS P:3SOME BASIC INFORMATION ABOUTAPPLICATIONS FOR MOBILE DEVICES.
  4. 4. HOW PEOPLE USE THEIR PHONESTowards the end of 2011, Nielsen performed a survey of smartphoneowners to how they actually used their phones. The results showed that53% of phone time is spent using Apps.1%Camera2%Music/Video4%Maps/Location5%Email/IM 5%Social Networking6%Phone10%Browser14%Texting53%AppsP:4
  5. 5. GENDERAPP DOWNLOADER DEMOGRAPHICS57%MALE43%FEMALE41%< $50,00037%$75,00015%$50,000-$74,999INCOME47%18-2939%30-4914%50+AGE25%HIGHSCHOOLGRAD38%COLLEGEGRAD29%SOMECOLLEGE8%<HIGHSCHOOLEDUCATIONhttp://blog.nielsen.com/nielsenwire/consumer/consumers-ok-with-ads-if-the-apps-are-free/http://www.slideshare.net/PewInternet/the-state-ofmobileamericanfaisP:5
  6. 6. OPERATING SYSTEM APP PREFERENCEMobile users have somewhere between 10 and 300 apps on theirdevices. The average Android device user has about 22 apps ontheir devices (in addition to the pre loaded ones) while Android usersspecifically have an average of 33 apps on theirs devices.ALL PHONESAVERAGEANDROID iOShttp://mobithinking.com/mobile-marketing-tools/latest-mobile-stats#mobile-app-storeshttp://blog.nielsen.com/nielsenwire/mediauniverse/P:6
  7. 7. KINDSOFAPPSP:7INFORMATION ABOUT THE DIFFERENTCATEGORIES OF APPS AND USERS’PREFERENCES FOR DIFFERENT KINDSOF APPS.
  8. 8. BOOKS EDUCATION GAMES ENTERTAINMENTSOCIALNETWORKINGPHOTOS &VIDEOSMUSIC SPORTSNEWS UTILITIESBUSINESS &FINANCELIFESTYLEREFERENCE TRAVELPRODUCTIVITYHEALTH &FITNESSAPP CATEGORIESApps are organized into between 16-20 apps based on the operatingsystem (Apple, Android or Windows).http://blog.flurry.com/?Tag=Usage%20StatisticsP:8
  9. 9. BOOKS23%of user downloadsEDUCATION18%of user downloadsGAMES68%of user downloadsENTERTAINMENT31%of user downloadsSOCIALNETWORKING45%of user downloadsPHOTOS &VIDEOS25%of user downloadsMUSIC45%of user downloadsSPORTS31%of user downloadsNEWS33%of user downloadsUTILITIES16%of user downloadsBUSINESS &FINANCE30%of user downloadsLIFESTYLE23%of user downloadsREFERENCE16%of user downloadsTRAVEL15%of user downloadsPRODUCTIVITY31%of user downloadsHEALTH &FITNESS25%of user downloadsAPP CATEGORIES POPULARITYSome app categories are more popular than others. Games are the mostpopular app category followed by Social Networking and Music apps.Travel, Reference, Utilities and Education have the lowest percentage ofdownloaders.http://androinica.com/2010/09/the-average-android-user-has-25-apps-and-loves-games-android-market-has-80000-apps/http://blog.flurry.com/?Tag=Usage%20StatisticsP:9
  10. 10. 1 0 0%8 0%6 0%4 0%2 0%0%2008 2009 2010 2012Other44%43%44%51%14%17%14%10%8%8%7%3%11%11%13%24%8%15%14%17%7%7%5%4%BooksEducationEntertainmentGamesLifestyleMOST POPULOUS APP CATEGORIESThe 5 most popular app categories in terms of apps in existenceare Books, Education, Entertainment, Games and Lifestyle whichcollectively make up 56% of apps available in app stores. Theother 13 or so app categories variously make up the remaining44% of apps.http://tech.fortune.cnn.com/2011/05/24/apples-itunes-store-500000-ios-apps-and-counting/P:10
  11. 11. USE OF APPS AFTER FIRST DOWNLOADSports seems better at retaining users over the short term; entertainmentis better at retaining users over the long term. Games have the highestinitial usage, but then drops off precipitously.35%30%25%20%15%10%5%0%1 11 21 31DAYS AFTER FIRST DOWNLOAD41 51 61 71 81 91 101%USERSRETURNINGAFTERFIRSTDOWNLOADhttp://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentationLIFESTYLEENTERTAINMENTSPORTSGAMESUTILITIESP:11
  12. 12. LIFESTYLEENTERTAINMENTSPORTSGAMESUTILITIES10864200 10 20 30 40 50 60ENGAGEMENT WITH APPS OVER TIMEGames have the highest engagement rate over time as counted by theamount of time spent using the app. Lifestyle apps are some of the onlyapps that exhibit growth (even if it’s a little bit) over time.http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentationDAYS SINCE FIRST USEDTIMESPENT(MINUTES)P:12
  13. 13. YEARSDOWNLOADSINBILLIONSGROWTH IN APP DOWNLOADSIt is predicted in August 2012 that Android app downloads will overtakeiOS app downloads. This is a combination in the less restrictive Androidapp store requirements resulting in more Android apps as well as theincreased dissemination of Android devices.501001502009 2010 2011 2012 2013 2014iOSANDROIDhttp://venturebeat.com/2011/10/11/whos-counting-mobile-app-data-shows-how-android-app-downloads-are-overtaking-the-iphone/http://venturebeat.com/2011/10/11/whos-counting-mobile-app-data-shows-how-android-app-downloads-are-overtaking-the-iphone/P:13
  14. 14. INCREASE IN AVAILABLE APPSApple had a commanding lead in the number of apps in their apps store,but due to the increase in ease of admission to the Android app store,Android apps are poised to overtake available Apple apps in August.http://venturebeat.com/2011/10/11/whos-counting-mobile-app-data-shows-how-android-app-downloads-are-overtaking-the-iphone/iOSANDROID2010800,000600,000400,000200,0002011 2012 2013YEARS#OFAVAILABLEAPPSINAPPSTOREP:14
  15. 15. APPSANDPRICEP:15DATA ABOUT HOW PRICE AFFECTS APPDOWNLOAD AND ENGAGEMENT RATES.
  16. 16. F R E E$ . 9 9$ 1 . 9 9$2 . 9 9 -$4 . 9 9 *$5.99+**36%29%13%13%9%THE PRICE OF APPSApps in the Apple app store have prices that range anywherefrom free up to $15 and more. 37% of all apps are free, while anadditional 42% of apps are $1.99 or less. The average price for apaid app is $3.64.http://tech.fortune.cnn.com/2011/05/24/apples-itunes-store-500000-ios-apps-and-counting/http://www.tecca.com/news/2011/04/28/android-free-apps/P:16
  17. 17. FREE APPS V. PURCHASEDMany mobile device owners are weary of paying for apps. Thus therehas been a trend towards a drop in the average app price as well asan increase in app “Freemium” business models. The average pricecut increases demand by 130% while the average price increase dropsdemand by 25%. In addition there is a higher willingness to pay for appsfor iOS users versus Android users.http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentationhttp://mashable.com/2009/08/27/cha-ching-iphone-users/http://news.cnet.com/8301-13579_3-57349631-37/iphone-users-downloading-more-than-5-million-free-apps-a-day/Android userspurchase 1of every 8downloadedappsiOS userspurchase 3of every 10downloadedappsP:17
  18. 18. APP USAGE OVER TIME PAID V. FREEUsers stop using the average application quickly, the long termaudiences are generally 1% of total downloads. Paid applicationsgenerally retain their users longer and at higher rates initially, than freeapplications, although the drop-off is still steep.35%30%25%20%15%10%5%0%1 11 21 31DAYS AFTER FIRST DOWNLOADPAID APPSFREE APPS41 51 61 71 81 91 101%USERSRETURNINGAFTERFIRSTDOWNLOADhttp://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentationhttp://www.phonedog.com/2011/02/01/how-many-times-are-downloaded-applications-actually-being-used/P:18
  19. 19. Books Restaurants/DiningCoupons/DiscountsGames Maps/NavigationMusic SocialNetworkingNews Entertainment SportsBanking/FinanceMagazinesRecommendations/ReviewsDOWNLOADS BY COST & CATEGORYA study of smartphone and tablet users over a 30 day period to discoverwhat apps users download and whether they were free or paid. Resultsshowed, most users will download a combination of free and paid appsin any given category.Free & Paid AppsFree Apps OnlyPaid Apps Onlyhttp://blog.nielsen.com/nielsenwire/consumer/consumers-ok-with-ads-if-the-apps-are-free/50%44%45%45%50%42%49%41%41%49%40%11%18%16%2%33%33%51%48%48%47%35%49%2%4%9%9%49%49%41%9%12%10%10%44%45%45%36%14%P:19
  20. 20. APP ENGAGEMENT PAID V. FREEPaid apps have higher engagement rates over time versus free apps,although free and paid engagement rates fall and equal out as the age ofthe app download increases.http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentationTIMESPENT(MINUTES)DAYS SINCE FIRST USED9876540 10 20 30 40 50 60PAID APPSFREE APPSP:20
  21. 21. OTHERSTATSP:21FURTHER INFORMATION ABOUT APPDEVELOPMENT STRATEGIES, THEWINDOWS PHONE APP ENVIRONMENTAND MARKETING COSTS.
  22. 22. APP DEVELOPMENT: A GAMBLEThere have been over 10 billion apps sold in app stores today with asmuch as $250 million being spent in app stores every month. However,these huge numbers have attracted another growing number: thenumber of app publishers and the number of apps they are creating,namely 500,00 apps available for iOS and another 300,000 available forAndroid. For these reasons most developers choose a portfolio methodfor their app development: Developing multiple apps with hopes that atleast one will payoff and offset the apps that weren’t as successful.AVERAGE NUMBEROF APPS PERDEVELOPERAVERAGEREVENUEPERAPPhttp://www.fastcompany.com/1792313/striking-it-rich-in-the-app-store-for-developers-its-more-casino-than-gold-minehttp://techcrunch.com/2011/12/18/app-ocalypse/P:22
  23. 23. 2,345Both95,870iOSDevelopers33,430AndroidDevelopersAPP DEVELOPMENT: PLATFORMAnother question that many app developers have to question is whatplatform to develop their apps for. Most developers, because they aresmaller decide to pick one or the other. A few develop for both platforms,and even then it is not all of their apps.http://blog.appstorehq.com/post/760323632/ios-vs-android-over-1-000-developers-including-somehttp://mashable.com/2010/07/02/ios-android-developer-stats/iOSANDROID1213622427CAPCOM MOBILELargeDeveloperMobilePlatformDevelopmentGAMELOFT AMAZONP:23
  24. 24. COST PER LOYAL USERThe average cost to acquire a loyal user through proactive marketing hasfluctuated from a little over a dollar to just under two dollars. A user isconsidered loyal if they open an app three times or more.http://www.fiksu.com/resources/fiksu-indexes#competitive-index$1.30$1.31$1.14$1.81$1.43$1.47$1.64$1.54$0.00$0.50$1.00$1.50$2.00MAY 2012FEB 2012JAN 2012DEC 2011NOV 2011OCT 2011SEP 2011AUG 2011P:24
  25. 25. WINDOWS APPSThe Windows phone 7 platform and its app store are still relatively newto the marketplace and has had relatively good growth (it launched with9,000 apps and today has around 9,000, however it hasn’t reachedanywhere near the heights of the iOS or Android app stores, and most ofthe available apps are free, generating little revenue for developers.http://windowsteamblog.com/windows_phone/b/wpdev/archive/2011/03/30/a-year-later-the-windows-phone-7-numbershttp://wp7applist.com/en-US/stats/FreePaid90,00081,00072,00063,00054,00045,00036,00027,00018,0009,0000TrialOct Nov Mar Apr MayFebJanDecWINDOWSPHONESSHIPPEDAVAILABLEAPPSMONTHP:25

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