Mobile App Stores Economy Casual
Connect Seattle 24-26 July 2012 CONFIDENTIAL PROPERTY OF APP ANNIE - DO NOT DISCLOSE Ⓒ AppAnnie 2012 Friday, 27 July 12

Agenda 1. About App Annie
2. Just how Big are iOS Games? 3. Seasonal Trends on iOS 4. iOS versus Google Play for Games: Who is winning in US, UK, and Japan? Friday, 27 July 12

Content Distribution over the Years
1950 S 2000 S 2010 S 1950 S 2000 S Broadcast Open Web Broadcast Market data for TV Open Web Market data for websites, Market dataetc. TV ratings for visits, visitors etc. Market data for websites, ratings etc. visits, visitors etc. Digital App Stores Market data for all kinds of digital app content including games, music, books, software etc. Retail market data for physical consumer goods Retail market data for physical consumer goods As media landscapes evolve, so should Market Data In 2011, App Annie raised a Series A funding round led by IDG Capital Partners. Friday, 27 July 12

#1 app store analytics and
market data for iOS and Google Play, and growing! App & Game Publishers VCs, Media Agencies OEMs, Carriers, Pla@orms SelecBon of Paid Customers 80% of the Top 100 iOS Publishers WW 125,000+ apps, 14,000+ publishers. Largest userbase in the US Friday, 27 July 12

App Annie Products on iOS
and Google Play K o SD N Tracks app performance: Analyze global app Advanced market sales, downloads, reviews stores rankings intelligence data Used by more than 125,000+ Tracks rankings of 850,000+ The most accurate market apps and 14,000+ publishers apps esHmates for app stores A unique suite of freemium services for the app industry Friday, 27 July 12

App Annie Intelligence The most
accurate estimates available for app stores CompeBtor Strategy Follow compeHtors and calculate market share ! InternaBonal Strategy Plan internaHonal expansion based on ROI, growth trends Product Por@olio Strategy Understand what kinds of IP are commercially successful MoneBzaBon Strategy Know what moneHzaHon strategies actually work Ad Buying Strategy How many downloads to get into Top 25? Subscribed by 7 of the Top 10 iOS publishers worldwide! Friday, 27 July 12

Agenda 1. About App Annie
2. Just how Big are iOS Games? 3. Seasonal Trends on iOS 4. iOS versus Google Play for Games: Who is winning in US, UK, and Japan? Friday, 27 July 12

Top Countries WW for iOS
Games Revenues Downloads 1. United States 1. United States 2. Japan 2. China 3. United Kingdom 3. Japan 4. Australia 4. United Kingdom 5. Canada 5. France 6. Germany 6. Germany 7. France 7. Canada 8. China 8. Australia Japan and China are 9. Russia 9. Italy right behind the US on 10. Italy 10. Russia 11. South Korea 11. Thailand revenues and downloads 12. Singapore 12. South Korea 13. Switzerland 13. Taiwan 14. Taiwan 14. Mexico 15. Netherlands 15. Spain 16. Mexico 16. Saudi Arabia 17. Hong Kong 17. Brazil 18. Brazil 18. Netherlands Based on App Annie Intelligence 19. Thailand 19. Hong Kong worldwide data, Games Category, May 2012 20. Sweden 20. Singapore Friday, 27 July 12

APAC vs Europe vs US
on iOS Games Revenues Downloads APAC US US 35% 34% APAC 47% 44% Europe Europe 18% 22% Countries Included: Top 14 APAC countries, Top 9 European countries and US US leads on revenue Based on App Annie Intelligence worldwide data, Games Category, May 2012 APAC leads on downloads Friday, 27 July 12

Revenue per Download for iOS
Games $2.00$ $1.90& Japan generates nearly 3x the revenue $1.80$ $1.60$ per download of the US! $1.40$ $1.20$ $1.00$ $0.80$ $0.69& $0.67& $0.60$ $0.47& $0.49& $0.37& $0.35& $0.34& $0.40$ $0.23& $0.22& $0.20$ $0.07& $0.00$ & n& & a& & n& a& & & & y& lia m ce es ly W re an in pa ai Ita do at an W ra Sp Ch Ko rm Ja St st ng Fr h& d& Au Ge Ki ut ite d& So Un ite Un Gross Revenue / Total Downloads of apps moneJzing on the App Store Based on App Annie Intelligence worldwide data, Games Category, May 2012 Friday, 27 July 12

Revenue of #1 Top Grossing
Game across Countries Index 120" ＊ 100" The top app in the US makes most money 80" Japan not far behind due to very high ARPU 60" 40" 20" 0" United' Japan' United' China' Australia' Canada' France' Germany' Italy' Russia' States' Kingdom' Based on App Annie Intelligence worldwide iOS data, Games Category, May 2012 * Set iOS US Revenue as Index=100 Friday, 27 July 12

Top 10 non-US publishers by
Revenues on iOS (in Alphabetical order) • CAPCOM (JP) • PlayJka (IL) • Game Insight (RU) • Rovio (FI) • GameloX (FR) • SEGA (JP) • GREE (JP) • SQUARE ENIX (JP) • HalZrick Studios (AU) • Tap4Fun (CN) Percentage of revenue in the US: • Range = 1% to 61% • Average = 32% Some of the top global game publishers are making very li`le money in the US, the world’s largest iOS games market Based on App Annie Intelligence Worldwide EsJmated Revenues, Q1 2012 Friday, 27 July 12

Top 10 US Game publishers
by Revenues on iOS (in AlphabeJcal order) • Backflip Studios • Pocket Gems • Chair Entertainment • Storm8 • Disney • Tinyco • Electronic Arts • Z2Live • Glu Games • Zynga Percentage of revenue outside of US: • Range = 46% to 79% • Average = 56% The top US publishers make almost half their revenues outside of the US Based on App Annie Intelligence Worldwide EsJmated Revenues, Q1 2012 Friday, 27 July 12

iOS Games: Key Trends Tectonic
Shifts in the App Store Globe APAC is challenging the US and 2x Europe in downloads and revenues Many of the top game publishers are making most of their revenue outside the US Japan’s “revenue per download” is nearly 3x of US, 27x of China! Friday, 27 July 12

Agenda 1. About App Annie
2. Just how Big are iOS Games? 3. Seasonal Trends on iOS 4. iOS versus Google Play for Games: Who is winning in US, UK, and Japan? Friday, 27 July 12

Device, carrier launches and seasons
have significant effect US:$iPhone$Download$and$Revenue$Comparison$YoY$ Download" Revenue" 300" 250" Revenues outgrowing downloads 200" 150" +117% ＊ 100" 50" 0" Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 iPhone 4 X’mas Verizon X’mas Launch Release iPhone 4S Verizon Sprint iPhone 4 Launch Release Release iOS 5 iPhone 4S iPhone 4S & Release iPhone 4 CDMA iPhone revenues grew 2x in 2 years * Set July-­‐2010 Rev and Based on App Annie Intelligence United States EsJmated Revenues, 2010 July-­‐2012 June Download Data as index=100 Friday, 27 July 12

Device, carrier launches and seasons
have significant effect US:$iPad$Download$and$Revenue$Comparison$YoY$ Download" Revenue" 700" 600" Downloads outgrowing revenues 500" 400" 300" +325% 200" ＊ 100" 0" Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 iPad 2 New iPad X’mas X’mas Launch Launch Verizon Released iPad revenues grew 4x in 2 years * Set July-­‐2010 Rev and Based on App Annie Intelligence United States EsJmated Revenues, 2010 July-­‐2012 June Download Data as index=100 Friday, 27 July 12

Seasonality in US: Key Trends
Long-term seasonal trends are key to a game publisher’s distribution strategy Device and carrier launches can drive up to a 50% increase in app store downloads and revenues Christmas periods exhibit up to a 50% month-on-month increase in revenues iPad’s revenue growth has been twice the rate of iPhone’s (over last 2 years) Friday, 27 July 12

Agenda 1. About App Annie
2. Just how Big are iOS Games? 3. Seasonal Trends on iOS 4. iOS versus Google Play for Games: Who is winning in US, UK, and Japan? Friday, 27 July 12

iOS versus Google Play for
Games Based on App Annie Intelligence -­‐ Japan, UK and 13% US data, All Category May 2012 23% 34% 41% 5%# 10%$ 10%$ 35%# 45%$ Download 52%$ 38%$ 45%$ 60%# 9%# 31%$ 25%$ 23%$ 28%# 36%$ Revenue 44%$ 63%# 41%$ iPad% iPhone% Google%Play% Google Play strong in downloads, but smaller in revenue share iOS is parBcularly strong in Japan. Friday, 27 July 12

Fastest Revenue Growth Countries for
Games Thailand% 163%% Indonesia% 139%% Belgium% 137%% Macau% 128%% Japan% 123%% 0%% 50%% 100%% 150%% 200%% Belgium% 202%% Thailand% 175%% Japan% 163%% Sweden% 151%% Russia% 145%% 0%% 50%% 100%% 150%% 200%% 250%% Based on App Annie Intelligence APAC, Europe and US data, Games Category iOS displaying fastest growth in Asia Jan 2012 -­‐ Jun 2012 Google Play growing across Europe and Japan Friday, 27 July 12

Fastest Download Growth Countries for
Games Indonesia% 153%% Thailand% 152%% Vietnam% 147%% Philippines% 134%% Belgium% 107%% 0%% 20%% 40%% 60%% 80%% 100%% 120%% 140%% 160%% 180%% Indonesia$ 138%$ Vietnam$ 130%$ Philippines$ 109%$ Thailand$ 107%$ Belgium$ 79%$ 0%$ 20%$ 40%$ 60%$ 80%$ 100%$ 120%$ 140%$ 160%$ Based on App Annie Intelligence APAC, Europe and US data, Games Category Jan 2012 -­‐ Jun 2012 Top 5 growth countries of iOS and Google Play are same Friday, 27 July 12

Top Categories by Revenue for
Games 1 Simulation Arcade 1 Simulation Arcade 1 Role Playing Casual 2 Role Playing Casual 2 Adventure Casual 2 Adventure Arcade 3 Adventure Cards 3 Action Cards 3 Card Cards 4 Strategy Brain 4 Strategy Brain 4 Puzzle Sports 5 Action Racing 5 Role Playing Sports 5 Simulation Brain Card and Brain games high on the revenue charts for Google Play iOS dominated by more sophisBcated gaming IP Based on App Annie Intelligence -­‐ Japan, UK, US data, Games Category May 2012 Friday, 27 July 12

Top Categories by Download for
Games 1 Action Arcade 1 Puzzle Arcade 1 Action Arcade 2 Arcade Brain 2 Action Brain 2 Arcade Casual 3 Puzzle Casual 3 Arcade Casual 3 Puzzle Brain 4 Adventure Sports 4 Simulation Sports 4 Kids Cards 5 Family Racing 5 Adventure Racing 5 Adventure Sports Similar category trends across countries and pla@orms Based on App Annie Intelligence -­‐ Japan, UK, US data, Games Category May 2012 Friday, 27 July 12

iOS vs Google Play: Key
Trends Google Play sJll generaJng 1/3 revenues compared to iOS iOS parJcularly strong in moneJzaJon and growth for Asia iOS moneJzing through more sophisBcated Jtles Friday, 27 July 12

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stats www.appannie.com CONFIDENTIAL PROPERTY OF APP ANNIE - DO NOT DISCLOSE Ⓒ AppAnnie 2012 Friday, 27 July 12