Global mobile market report

2,606 views

Published on

(C) Newzoo, 2016

Published in: Mobile

Global mobile market report

  1. 1. © Copyright 2016 Newzoo MOBILE 2016 GLOBAL MARKET REPORT MOBILE Q4 2016 FREE APP MARKET, DEVICE, AND AUDIENCE INTELLIGENCE
  2. 2. © Copyright 2016 Newzoo TABLE OF CONTENTS INTRODUCTION 1. THE APP MARKET 2. ACTIVE SMART MOBILE DEVICES 3. THE MOBILE CONSUMER 4. COMBINING METRICS FOR SUCCESS 5. FEATURE: CHINA ANDROID ECOSYSTEM 6. FEATURE: POKÉMON GO 7. NEWZOO MOBILE INTELLIGENCE 3 5 15 21 28 32 36 40
  3. 3. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 3 INTRODUCTION This free report features high-level insights into the global app and device market, as well as the global audience of smart mobile device users. The report marks the official launch of Newzoo Mobile and is a precursor to our Premium Global Mobile Market Report subscription service that includes an annual report, quarterly updates, and dashboard access with key market data and projections. The data is derived from our full Mobile Intelligence Suite that aims to serve all industries that put mobile at the center of their strategy, product development, or marketing. For years, Newzoo has been known as a global leader in games and esports market intelligence. Its flagship report, the Global Games Market Report, was launched in 2012 and Newzoo’s early move into esports culminated in the release of its Global Esports Market Report in 2014. Both services are used by the majority of global media, hardware, and game companies and are considered the authoritative source for trends and revenue projections in their respective markets. The trends driving games and esports, including the uptake of new technologies, business model innovation, and giving power to consumers, are now touching and influencing an array of other industries. As such, our client base has broadened enormously to include big advertising brands, telecom operators, venue owners, sports clubs, and even oil companies. For Newzoo, moving into the broader mobile space was perhaps obvious given how significant the share of mobile in the total games market has become, and how early we had identified the growth potential of mobile games. Our portfolio is the result of almost two years of preparation, partnering, data sourcing, and modeling. The resulting intelligence focuses on active devices, users, and the app (store) economy. From a geographic perspec- tive, our Chinese partner and strategic investor TalkingData plays a key role in enabling us to paint a truly global picture, previously unavailable in the market. Our Chinese partner and strategic investor TalkingData is an enormous asset for our clients who aim to enter, invest, or optimize their performance in world’s biggest mobile market: China. In brief, we believe that the current pace of change in consumer behavior, media consumption, and technology requires a new type of intelligence firm that is agile, innovative, truly global, and ahead of the curve. Ultimately, we aim to be recognized as the #1 provider of games, esports, and mobile intelligence in the world. This free report is a key first step toward achieving that ambition. - Peter Warman, CEO Newzoo GLOBAL MOBILE MARKET REPORT
  4. 4. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 4 KEY TAKEAWAYS 1 $44.8BN GLOBAL APP REVENUES Global direct consumer spending on apps will reach $44.8 billion in 2016 and grow to $80.6 billion by 2020. The share of app revenues from games is expected to decrease from 82% to 72% in the same period. 2 CHINA IS THE #1 APP MARKET China overtook the US in 2015 in total direct consumer spending on apps and will continue to pull away, benefitting from its sheer size and un- tapped potential. In 2016, consumer spending on apps in China will reach $11.9 billion versus $9.4 billion in the US. The China market accounts for 30.2% of all actively used mobile devices worldwide. 3 APPLE IS THE #1 MOBILE BRAND Looking at all of the active mobile devices worldwide in July (3 billion), Apple had the highest market share of all mobile brands: 34.8% of all smartphones or tablets. Samsung is a strong second with 23.3%, followed by the three leading Chinese manufacturers: Huawei, Xiaomi, and Lenovo. 4 2.3BN SMARTPHONE USERS In 2016, 31% of the global population will be an active smartphone user, or 2.3 billion people. Almost half of these users (49%) are in Asia- Pacific. The Middle East & Africa region has the lowest smartphone penetration with just 19% of the population being an active smartphone user. 3 BILLION ACTIVE SMARTPHONES/TABLETS GENERATE $44.8 BILLION IN REVENUES, APPLE IS BIGGEST BRAND AND CHINA BIGGEST MARKET TAKE AWAYS $44.8Bn Global App Revenues in 2016, 82% Generated by Games $11.9Bn Chinese App Revenues in 2016, vs. $9.4Bn for the US 34.8% Share of All Active Mobile Devices in July 2016 Were Apple 2.3Bn Active Smartphone Users Globally in 2016, or 31% of the Population
  5. 5. © Copyright 2016 Newzoo THE APP MARKET1
  6. 6. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 6 GLOBAL APP MARKET REVENUE SHARE OF NON-GAME APPS INCREASES GLOBAL APP STORE REVENUES 2015-2020 | GAME & NON-GAME REVENUE SPLIT | 2015-2020 CAGR NON-GAME APPS POWER GROWTH Direct consumer spending in the global app market will grow from $35.8 billion in 2015 to $80.6 billion in 2020, a CAGR of 17.7%. The share from games is expected to decrease from 83.2% to 72.1% in the same period, as non-game app revenues grow faster than mobile game revenues, a consequence of the increasing popularity and willingness to pay GLOBAL (NON-GAMING) APP REVENUES BY CATEGORY 2016 | SHARE OF NON-GAMING APP REVENUES MUSIC, VIDEO, AND SOCIAL RULE Social networking (often dating), entertain- ment (video), and music are the three top categories in terms of non-game app revenues. They are followed by categories such as books, education, productivity, photography, medical, and health & fitness, which typically cater to a core customer base willing to pay for a premium service. 2016 $8.2Bn Global for categories such as entertainment, music, and social. Increasing internet and smart- phone penetration in developing markets is the underlying driver of high overall revenue growth. Interestingly, almost all markets have “local champions” and only very few apps rank among the top grossing across all regions, both for games and non-game apps. Social Networking Entertainment Music Education Productivity Other 2015 2016 2017 2018 2019 2020 83% 82% 80% 77% 74% 72% 17% 18% 20% 23% 26% 28% Game Revenues Non-Game Revenues $35.8Bn $44.8Bn $53.4Bn $61.6Bn $70.6Bn $80.6Bn 2015-2020 CAGR $22.5 Bn $58.1 Bn +30.2% +17.7% +14.3% 18% 13% 11% 7%5% 46% Source: Newzoo Premium Global Mobile Market Report
  7. 7. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 7 NORTH AMERICAN APP MARKET ENTERTAINMENT AND SOCIAL APP REVENUES SURGE NORTH AMERICAN APP STORE REVENUES 2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY 72% 28% 2016 $10.1Bn NAM Game Revenues Non-Game Revenues FEATURED APP CATEGORY Y-O-Y GROWTH MARKET SHARE* PHOTOGRAPHY +152% 5.2% ENTERTAINMENT +144% 18.7% LIFESTYLE +141% 5.6% CATEGORY Y-O-Y GROWTH MARKET SHARE* ENTERTAINMENT +441% 11.2% FINANCE +213% 8.8% LIFESTYLE +62% 11.6% LEADING WESTERN MARKET Direct consumer spending in the North American app market will grow from $8.8 billion in 2015 to $15.2 billion in 2020, a CAGR of 11.5%. This is below the global average, as the North American app market is already relatively advanced and spend per person is high compared to other Western markets. The share of games is expected to decrease from 75.1% to 56.9% in the same period, as paying for mobile entertainment in other forms than games becomes increasingly widespread, including video (HBO Now, Netflix and Hulu), music (Pandora, Spotify) and social (Tinder, Match.com). Featured App HBO Now Time Warner Inc. HBO Now, developed by Time Warner subsidiary HBO, launched in April 2015. Benefitting from HBO’s high-quality and popular original content and extensive library, the service ended the year with 800,000 paying subscribers. It is priced at $14.99 per month, a premium to Netflix. A key selling point for such video apps is that viewers can watch content on multiple connected devices (smartphone, tablet, computer, TV, Xbox/PS), which appeals to the “cut the cord” generation. * of non-game app revenues Source: Newzoo Premium Global Mobile Market Report
  8. 8. © Copyright 2016 Newzoo 86% 14% 2016 $24.6Bn APAC 2016 GLOBAL MOBILE MARKET REPORT 8 ASIAN-PACIFIC APP MARKET GAMES AND NON-GAMES GROW ABOVE AVERAGE ASIA-PACIFIC APP STORE REVENUES 2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY FEATURED APP Game Revenues Non-Game Revenues CATEGORY Y-O-Y GROWTH MARKET SHARE* LIFESTYLE +72% 2.2% COMICS +37% 12.0% MEDICAL +34% 2.9% CATEGORY Y-O-Y GROWTH MARKET SHARE* MUSIC +128% 6.1% HEALTH & FITNESS +79% 1.3% ENTERTAINMENT +70% 16.3% LOCAL CHAMPIONS RULE Direct consumer spending in the Asia- Pacific app market will grow from $19.2 billion in 2015 to $42.9 billion in 2020, a CAGR of 17.4%. This is almost identical to the global average, but masks important differences between individual countries and sub-regions, with much slower growth in mature markets like Japan and Korea and faster growth in China and Southeast Asia. The share of games is expected to decrease from 87.1% to 78.9% in the same period. Non-game apps continue to account for a relatively high share of the market, as mobile game revenues still offer plenty of growth potential in the region. Featured App WeChat Tencent WeChat is the dominant chat and messenger app in China, owned by gaming and internet giant Tencent. The app is increasingly used as a discovery platform for other apps and content, and integrated with Tencent’s other key properties, such as self-published games and the MyApp Store. LINE holds a similar position in the Japanese market, as does Kakao in Korea. * of non-game app revenues Source: Newzoo Premium Global Mobile Market Report
  9. 9. © Copyright 2016 Newzoo LOVOO, a “free app to chat, flirt and date”, is a top 10 grossing social “lifestyle” app in Germany. This is a typical example of a local champion with now more than 50 million users globally. Users can either buy credits, pay a monthly fee, or earn credits by watching videos or downloading apps. The French equivalent, Happn, has more than 10 million users and strong momentum in overseas markets such as Brazil. Featured App LOVOO LOOVOO GmbH 83% 17% 2016 $6.2Bn EU 2016 GLOBAL MOBILE MARKET REPORT 9 EUROPEAN APP MARKET GENERALLY FOLLOWS WHERE THE US MARKET LEADS EUROPEAN APP STORE REVENUES 2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY Game Revenues Non-Game Revenues CATEGORY Y-O-Y GROWTH MARKET SHARE* ENTERTAINMENT +106% 9.6% MUSIC +57% 10.5% LIFESTYLE +55% 5.1% GENTLE BUT STEADY GROWTH Direct consumer spending in the European app market will grow from $5.3 billion in 2015 to $9.6 billion in 2020, a CAGR of 12.6%. This is below the global average, as the European app market is relatively mature and slow economic growth hampers further growth in spend per person. The share of games is expected to decrease from 85.3% to 69.5% in the same period. Non-game apps account for a smaller share of the market, as paying for video, music, and social is more limited. In most markets, Spotify is the leader in music, with competi- tion from local champions such as Deezer in several European countries. Netflix leads video, with some markets still nascent. CATEGORY Y-O-Y GROWTH MARKET SHARE* LIFESTYLE +74% 4.2% SPORTS +49% 4.2% MEDICAL +37% 5.1% FEATURED APP * of non-game app revenues Source: Newzoo Premium Global Mobile Market Report
  10. 10. © Copyright 2016 Newzoo 64% 36% 2016 $2.1Bn LATAM 2016 GLOBAL MOBILE MARKET REPORT 10 LATAM APP MARKET NON-GAME APPS FLOURISH IN VIBRANT MARKET LATIN AMERICAN APP STORE REVENUES 2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY FEATURED APP Game Revenues Non-Game Revenues CATEGORY Y-O-Y GROWTH MARKET SHARE* ENTERTAINMENT +109% 9.0% LIFESTYLE +91% 4.4% HEALTH & FITNESS +86% 4.0% CATEGORY Y-O-Y GROWTH MARKET SHARE* LIFESTYLE +85% 2.9% SPORTS +57% 3.7% MEDICAL +51% 10.8% BIG SHARE NON-GAMES APPS Direct consumer spending in Latin America’s app market will grow from $1.3 billion in 2015 to $6.4 billion in 2020, a CAGR of 36.7%. This is well above the global average, helped by improving economic conditions and coming from a relatively low base, as average spend per person and smartphone and internet penetration are still low. The share of games is expected to decrease slightly from an already very low 65.0% to 58.6% in the same period. Non-game apps account for a high share of the market, as paying for music is far more common (both Deezer and Spotify do well in the region) and productivity and social (dating) apps are popular, especially in Brazil. PlayKids is a top 5 grossing app in Brazil that offers highly localized preschool cartoons and games for kids on the basis of a monthly subscription. The app introduces players to a train with a series of cars and characters riding in each train. Each character represents a different program with “age-appropriate” content with an often educational twist. Featured App PlayKids Movile Internet * of non-game app revenues Source: Newzoo Premium Global Mobile Market Report
  11. 11. © Copyright 2016 Newzoo iReader is an offline e-book reading app, offering access to more than 300.000 books. In Egypt, at least two such apps appear high in the top grossing ranks, indicating that ebooks have become widely adopted in the country. The offline ability is a key feature, as it allows people to download content when connected to internet via Wi-Fi, but access the content without the need for a continuous internet connection. Featured App iReader HK iReader Techologies Ltd. 90% 10% 2016 $1.8Bn MEA 2016 GLOBAL MOBILE MARKET REPORT 11 MEA APP MARKET HUGELY DIVERSE REGION SUITED FOR LOCAL CONTENT MIDDLE-EAST & AFRICA APP STORE REVENUES 2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY FEATURED APP LONG TERM POTENTIAL Direct consumer spending in the Middle East & Africa’s app market will grow from $1.1 billion in 2015 to $6.6 billion in 2020, a CAGR of 42.6%. This is far above the global average, but from a relatively low base, as average spend per person and smartphone and internet penetration are still low. The share of games is expected to decrease from 91.1% to 79.5% in the same period. This is still a relatively high share, since game revenue growth is forecast to grow strongly as the mobile games market is still far from saturated. This is not only due to the sheer growth of the online population, but also increased spending per person and avail- ability of localized content. CATEGORY Y-O-Y GROWTH MARKET SHARE* ENTERTAINMENT +148% 9.4% MUSIC +76% 5.9% UTILITIES +75% 4.4% CATEGORY Y-O-Y GROWTH MARKET SHARE* PRODUCTIVITY +261% 16.0% LIFESTYLE +102% 1.7% ENTERTAINMENT +72% 3.6% Game Revenues Non-Game Revenues * of non-game app revenues Source: Newzoo Premium Global Mobile Market Report
  12. 12. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 12 US VS. CHINA APP REVENUES China and the US are by far the two biggest app markets in the world by revenues, with only Japan coming close with its traditionally very high spend per person. China overtook the US in 2015 in total app revenues and will continue to pull away, benefitting from its sheer size and untapped potential. The share of games will remain higher in China than in the US, as China’s mobile games market is expected to continue to show relatively strong growth over the next few years, with the number of players and average spend per player increasing. Growth in mobile gaming revenues in the US will slow after a few years of very strong growth. CHINA APP STORE REVENUES GROW >1.5X US US APP REVENUES 2015, 2016, 2020 | OVERVIEW CATEGORY Y-O-Y GROWTH MARKET SHARE* PHOTOGRAPHY +161% 5.3% LIFESTYLE +146% 5.6% ENTERTAINMENT +143% 19.1% CATEGORY Y-O-Y GROWTH MARKET SHARE* ENTERTAINMENT +542% 12.3% FINANCE +218% 9.9% SHOPPING +63% 1.84% CHINA APP REVENUES 2015, 2016, 2020 | OVERVIEW CATEGORY Y-O-Y GROWTH MARKET SHARE* SOCIAL NETW. +184% 24.9% ENTERTAINMENT +169% 40.5% BOOKS 159% 8.8% Non-Game Revenues Game Revenues Non-Game Revenues Game Revenues 86% 86% 79%14% 14% 21% 2015-2020 CAGR $3.9 Bn $14.9 Bn +27.9% +18.0% +16.1% 2015 2016 2020 $18.8Bn $11.6Bn $8.2Bn 75% 72% 57% 25% 28% 43% 2015-2020 CAGR $6.1 Bn $8.1 Bn +24.4% +11.4% +5.4% 2015 2016 2020 $14.2Bn $9.4Bn $8.3Bn STORE** Y-O-Y GROWTH MARKET SHARE MY APP (TENCENT) +7.5% 17.1% 360 MOB. ASSISTANT -29.6% 12.3% BAIDU MOB. ASSIST. -3.3% 11.4% **Top Chinese stores, based on monthly active users Source: Newzoo China App Store Intelligence (July 2016) * of non-game app revenues Source: Newzoo Premium Global Mobile Market Report
  13. 13. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 13 GAMES LEAD DATA ANALYTICS MONETIZATION DATA MAY BE RELEVANT FOR OTHER APPS Apple Introduces New Fee Structure for Subscription Models Even though some non-game app categories such as music may gravitate predominantly toward other business models, such as monthly paid subscriptions, or not be primarily aimed at generating direct consumer spend at all, mobile games still offer other app categories potentially valuable insights into monetization metrics based on vast amounts of actual data. Average revenue per paying user (ARPPU), conversion, and retention rates are key metrics that mobile game publishers closely watch. It is no coincidence that successful mobile game publishers also lead the way in data analytics, as witnessed by Machine Zone’s decision to rename itself to MZ and expand its ambitions to becoming a leading global real-time data processing technology company. *All game metrics are 75th percentile figures (for a full month), because we want to benchmark against successful games. The straight average would be too heavily influenced by poorly performing games. ** For iOS, based on an aggregate of 43 countries. For Android, based on an aggregate of 31 countries. GAMING METRICS iOS ANDROID ARPPU / MONTH $25.70 $22.67 CONVERSION 2.1% 1.8% D1 RETENTION 44.4% 41.3% D30 RETENTION 12.8% 10.3% AV. SESSION TIME (MINS) 41 37 AV. SESSIONS/MONTH 4.5 4.2 KEY GAMING METRICS* JULY 2016 | iOS VS. ANDROID | GLOBAL** CONSUMER REVENUES VERSUS ADVERTISING Direct spending by consumers is a very important revenue stream and the focus of this report, but obviously not the only one in the app ecosystem. Advertising in and around apps is the other key revenue stream. This typically contributes less than 20% for apps with strong monetization mechanics and nearly all revenues for older apps or apps that are not designed to, or successful in, generating consumer revenues. In order to avoid missing out on a potentially large future revenue stream, Apple will reduce the fees it charges to developers of apps that monetize through (auto-renewable) subscriptions bought “in app”. Developers will receive 85% of the revenues after year one instead of the traditional 70%. To make it easier for users to reach the one-year milestone, there will be a 60-day grace period; if a user cancels a subscription but re-subscribes within 60 days, the subscription length will not reset to zero. The new policy will come into effect at the end of this year or early next year. FEATURED MONETIZATION MODEL The ARPPU on is higher than the Android average: $23.40 vs. $22.67 76.6% 87.1% of 2016 App Revenues Generated By Games of 2016 App Revenues Generated By Games Source: deltaDNA Source: Newzoo Premium Global Mobile Market Report
  14. 14. © Copyright 2016 Newzoo 14 2016 GLOBAL MOBILE MARKET REPORT APP STORE INTELLIGENCE DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES TYPICAL USE CASES FOR NEWZOO’S GLOBAL APP STORE INTELLIGENCE METHODOLOGY Newzoo’s app store intelligence service is based on analysis of a number of data sources, including actual transaction data, financial performance of relevant companies, and various economic and development indicators for individual countries, including internet and smartphone penetration rates. Historical app revenue and download estimates are corroborated with data from our strategic partner Priori Data and Newzoo’s proprietary app store tracking technology. APP REVENUES: All direct consumer revenues that pass through app stores, including third-party Android stores. Advertising and e-commerce revenues are excluded. NON-GAME APP REVENUES: Revenues generated through in-app purchases, subscriptions, or paid installs from apps that are not categorized as games by app stores. GAME REVENUES: Revenues generated through in-app purchases, subscriptions, or paid installs from apps that are categorized as games by app stores. PRIORITIZE & SIZE YOUR MARKET OPPORTUNITY “By zooming in on our genre, best performing apps, and our desire to launch in English only across most European countries, we chose for a different and more effective roll-out and marketing strategy, targeting a market worth $80M monthly.” BENCHMARK WITH COMPETITORS “Per country, our performance differs enormously and so do our competitors. By studying the best performing competitors by country, we adjusted our product as well as our marketing effort and the effect was immediate.” IDENTIFY KEY GROWTH APPS & COMPANIES “Every big mobile company is on the lookout for investment opportunities and acquisition targets. By being able to track rising stars based on our custom requirements, we now know that we are not missing any investment opportunities.” SPOT BLUE OCEANS BY TRENDING AND FORECASTING “By trending our key genres and top performers in that genre on a country- by-country and store-by-store basis, we are able to spot the fastest growing (new) and emerging genres. By using store size forecasting, we could even estimate the future size of these so- called blue oceans.” FEATURED SERVICE www.newzoo.com/apps APP STORE INTELLIGENCE Revenues, Downloads, China Android, iOS, Google Play, DEFINITIONS
  15. 15. © Copyright 2016 Newzoo ACTIVE SMART MOBILE DEVICES 2
  16. 16. © Copyright 2016 Newzoo 78% 22% 21% 79% 2016 GLOBAL MOBILE MARKET REPORT 16 ACTIVE SMART MOBILE DEVICES Almost a decade after the first iPhone was launched, growth of mobile smart devices sold in mature markets is slowing significantly, as the replacement cycle rather than an increase in penetration drives the number of new units sold. In the high growth phase, the focus was on the hardware manufacturing or supply angle, often expressed in “units shipped”. Now, in the mature phase, it has become crucial to understand what people do with their devices, especially given the ever more central role smart mobile devices play in consumer’s lives. This “services angle” is all about active users and actively used devices. These are the metrics that matter for software developers and advertisers and Newzoo’s device intelligence takes this user-centric approach. iPHONES RULE, TABLETS AGE WELL AND REMAIN POPULAR HARDWARE VS. SERVICES Active mobile device users in individual markets, and the details of the number of active devices per country or region, are crucial insights for the mobile services economy. Knowing the number and what type of consumers use which device(s) can guide better investment decisions, save costs, and increase revenues, especially for mobile centric companies such as app developers and mobile first advertisers. DEVICE LIFETIME VS. ACTIVITY Low growth of units shipped in the tablet market does not mean that the tablet is dying. Our analysis of July US data show that over 79% of actively used tablets were devices that commercially launched before 2014 (while coincidentally the opposite was true for iPhones). Evidently a longer lifetime of iPads lowers demand for new units, but this has no impact on active use of iPads, including spending on app-based services. iPHONES iPADS 12% of All Devices 88% of All Devices LIFETIME ANALYSIS OF APPLE iPHONES VS. iPADS ACTIVE DEVICES VS. LAUNCH DATE OF DEVICE | JULY 2016 | US 78% 79% Launched In or After 2014 Launched Before 2014 Source: Newzoo Global Device Intelligence
  17. 17. © Copyright 2016 Newzoo With more than one billion active devices, Apple accounts for 34.8% of all active tablet or smartphone devices worldwide. Samsung is a strong second with 23.3%, followed by the three leading Chinese manufacturers: Huawei, Xiaomi, and Lenovo. The ranking could change dramatically in the next few years as key battlegrounds in Asia and Africa are conquered, and especially depending on what happens in India, which has by far the largest untapped potential in absolute numbers. 17 2016 GLOBAL MOBILE MARKET REPORT MARKET SHARE BY BRAND APPLE LEADS AND CHINESE BRANDS TAKE MARKET SHARE RANK DEVICE BRAND SHARE OF MONTHLY ACTIVE MOBILE DEVICES 1 APPLE 34.8% 2 SAMSUNG 23.3% 3 HUAWEI 5.4% 4 XIAOMI 3.7% 5 LENOVO 2.7% 6 LG 2.5% 7 SONY 2.4% 8 OPPO 2.4% 9 VIVO 2.0% 10 HTC 1.2% 11 MOTOROLA 1.2% 12 ASUS 1.1% 13 MEIZU 1.1% 14 MICROMAX 0.7% 15 ZTE 0.7% 16 TCL 0.7% 17 FLY 0.7% 18 COOLPAD 0.7% 19 GIONEE 0.5% 20 LETV 0.4% TOP SMARTPHONE/TABLET BRANDS SHARE OF GLOBAL MONTHLY ACTIVE SMARTPHONES & TABLETS | JULY 2016 1. 2. 3. 4. 5. CHINA TAKES ALMOST A THIRD The number of Chinese companies in the top 10 is a testament to the sheer size of China’s smartphone and tablet market, which accounts for 30.2% of actively used devices worldwide. Apple’s slowing new unit sales growth is not surprising given the market share it already has, together with the premium pricing and relatively long lifetime of Apple devices. 6. 30.2% of Smartphones and Tablets Used Globally (July 2016) China Represents 3Bn Smartphones and Tablets Are Actively Used (July 2016) On a Global Scale *based on Newzoo’s global device intelligence model that is fed by a sample of 550 million actively used smart devices in July 2016. Source: Newzoo Global Device Intelligence
  18. 18. © Copyright 2016 Newzoo 18 2016 GLOBAL MOBILE MARKET REPORT TOP MOBILE BRANDS BY REGION APPLE DOMINANT IN NAM, SAMSUNG IN LATAM In terms of monthly active devices (MADs), Apple and Samsung are market leaders in every region in the world, but with very different market shares per region and country. Apple is very strong in North America, Asia-Pacific, and Middle East & Africa, while Samsung is relatively strong in Latin America, Europe, and Middle East & Africa. In Asia-Pacific, Samsung battles with the leading Chinese brands to be runner-up to Apple. Most growth countries see local champions emerge, like Micromax in India. White label tablets sold by local retail brands also capture a significant share of the tablet market. Source: Newzoo Global Device Intelligence TOP SMARTPHONE/TABLET BRANDS BY REGION SHARE OF ALL MONTHLY ACTIVE DEVICES | iOS + ANDROID | JULY 2016 NORTH AMERICA DEVICE BRAND SHARE OF MADS APPLE 59.4% SAMSUNG 28.4% LG 13.6% MOTOROLA 10.8% ZTE 9.9% LATIN AMERICA DEVICE BRAND SHARE OF MADS SAMSUNG 48.4% APPLE 19.9% MOTOROLA 18.1% LG 13.0% SONY 12.2% EUROPE DEVICE BRAND SHARE OF MADS SAMSUNG 37.6% APPLE 28.4% SONY 13.5% LENOVO 12.8% HUAWEI 12.6% MIDDLE EAST & AFRICA DEVICE BRAND SHARE OF MADS APPLE 42.6% SAMSUNG 37.9% LG 13.6% HUAWEI 11.4% SONY 11.3% ASIA-PACIFIC DEVICE BRAND SHARE OF MADS APPLE 36.6% SAMSUNG 11.3% HUAWEI 10.1% XIAOMI 10.1% OPPO 7.1% In July, Micromax had a market share of 21% in India, making it the second most popular mobile brand behind Samsung, which has a 34% market share. Micromax is by far the strongest local brand, with the next two Indian brands, Intex and Lava, at #9 and #10 respectively. The brand is also expanding to Russian and South Asian markets. FEATURED BRAND Featured App Micromax Micromax Informatics Ltd.
  19. 19. © Copyright 2016 Newzoo 14% 12% 10% 8% 6%5% 4% 4% 3% 2% 32% 20% 15% 8% 7%7% 4% 4% 3% 2% 2% 30% 19 2016 GLOBAL MOBILE MARKET REPORT TOP DEVICES IN THE US MORE THAN 65% OF ACTIVE TABLETS IN THE US ARE iPADS TOP 10 SMARTPHONE MODELS IN THE US JULY 2016 | iOS & ANDROID | US 70.4% Share of Top 10 iPhone 6 iPhone 6s iPhone 5s iPhone 6s Plus iPhone 6 Plus Galaxy S5 Galaxy S6 iPhone 5c Galaxy Note 5 Galaxy S7 Other TOP 10 TABLET MODELS IN THE US JULY 2016 | iOS & ANDROID | US iPad Mini iPad Mini 2 iPad Air iPad Air 2 iPad 4 iPad 2 Galaxy Tab 4 7.0 iPad 3 Voyager Galaxy Tab A 8.0 Other 68.3% Share of Top 10 Source: Newzoo Global Device Intelligence FEATURED DEVICE SPECS TOP 3 SCREEN SIZE 1. 5-5.5.0 INCH 2. 5.5-6.0 INCH 3. 4.5-5.0 INCH CHIPSET 1. SAMSUNG EXYNOS 7 (OCTA) 2. QUALCOMM SNAPDRAGON (410) 3. SAMSUNG EXYNOS 5 (OCTA) BATTERY 1. 2500-3000 mAh 2. 2000-22000 mAh 3. 2200-2500 mAh Newzoo has 20 variables available per Android or iOS device model in 130+ countries Apple’s iPhone 6 (& Plus) and 6s (& Plus) together account for more than 48% of all actively used smartphones in the US. In the tablet market, the iPad Mini is remarkably strong, accounting for 26% of all actively used tablets. A sizeable part of the “other” tablet category is accounted for by “white label” tablets, while the large share of “other” smartphone models is a result of the huge amount of different smartphone models available.
  20. 20. © Copyright 2016 Newzoo 20 2016 GLOBAL MOBILE MARKET REPORT DEVICE INTELLIGENCE DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES SIZE THE ADDRESSABLE MARKET “41% of 14 million smartphones and 72% of 7 million tablets in Italy can handle my app in terms of operating system and device model. The same data on 100 countries prioritized our international rollout strategy.” SAVE PRODUCT DEVELOPMENT TIME “Optimizing my app for the variety of screen sizes costs a lot of effort and, more importantly, development time. It turned out that, to optimize for 78% of Android devices on China, I only had to focus on four screen sizes.” MONITOR DEVICE BRAND / OS UPTAKE “Chinese mobile device brand Xiaomi maintained its 13% market share in China while showing double-digit month-on-month growth in 4 out of 6 Southeast Asian countries. Its global strategy seems to be working.” TRACK LAUNCH IMPACT OF NEW MODELS “The uptake of the new iPhone 7 was strongest in Germany, gaining a 3% market share in its first month after launch. On a global scale, more than 18 million iPhone 7s were in use that month, 11% of all iOS devices worldwide.” FEATURED SERVICE DEVICE INTELLIGENCE Brands, Models, OS, Screen Size, Type (Tablet / Smartphone) www.newzoo.com/devices TYPICAL USE CASES FOR NEWZOO’S GLOBAL DEVICE INTELLIGENCE DEFINITIONS METHODOLOGY Newzoo’s device intelligence service is based on a unique combination of data sources. First, we collect global monthly device usage data from strategic partners using a sample of approximately 600 million active devices, giving us raw data about the number of actively used brands, devices, and models around the world. We then enrich this data set by adding more detailed information such as chipset, screen size, or memory size per model. Our global device intelligence model uses top-down analysis to adjust bias and extrapolate to a global, regional, and country level. ACTIVE DEVICE: A device used at least once during a reporting month. SMARTPHONE: A device with a screen size under 7 inches. TABLET: A device with a screen size of 7 inches or larger. DEVICE BRAND: Manufacturer or redistributor of the device as described by the device’s software.
  21. 21. © Copyright 2016 Newzoo THE MOBILE CONSUMER3
  22. 22. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 22 ACTIVE SMARTPHONE USERS GLOBAL NUMBER OF CONSUMERS USING SMARTPHONES APAC: 49% OF ALL ACTIVE USERS Asia-Pacific will account for about half of the world’s smartphone users in 2016. Together with Middle East & Africa, it also has the greatest growth potential. As the graph below clearly illustrates, both regions benefit from the double impact of increasing smartphone and internet penetration, which usually go hand in hand in most emerging markets. 31% 19% 10% 49% 13% 9% SMARTPHONE USERS 2016 | GLOBAL & PER REGION 2016 7.4Bn Total Global Population 2016 2.3Bn Total Global Smartphone Users Smartphone Users EU NAM APAC MEA LATAM TOTAL POPULATION, ONLINE POPULATION & SMARTPHONE USERS 2016 | GLOBAL & PER REGION 7.39Bn 0.76Bn 0.36Bn 4.01Bn 1.63Bn 0.64Bn 3.39Bn 0.60Bn 0.33Bn 1.60Bn 0.51Bn 0.37Bn 2.27Bn 0.43Bn 0.23Bn 1.11Bn 0.30Bn 0.20Bn Global EU NAM APAC MEA LATAM Total Population Online Population Smartphone Users Source: Newzoo Smartphone & Tablet Usage Model In 2016, close to a third of world’s population will use a smartphone: 2.3 billion people. China has more than 600 million smartphone users, while India and the US both have around 200 million. India will overtake the US next year to become the world’s #2 market. In the US, 64% of the population already uses a smartphone, compared to only 16% in India. Newzoo’s global active smartphone and tablet user intelligence includes forecasts for 190 individual countries.
  23. 23. © Copyright 2016 Newzoo 23 2016 GLOBAL MOBILE MARKET REPORT US APP STORE DEMOGRAPHICS BROADLY SIMILAR IN TERMS OF AGE & GENDER 9% 17% 19% 9%7% 14% 16% 9% 16% Under the Age of 20 AGE/GENDER OF APP STORE USERS 2016 | US TAKE AWAYS Apple has the largest share of users under the age of 20; Amazon has the highest share of users over 36 years old. Amazon has a higher share of male users than the other stores; Apple and Google Play both have slightly more females than males. Amazon users are the most likely to have a full-time job with 56%, following closely by Apple with 53%. 47% Female 56% Full-Time Employee M10-20 M21-35 M36-50 M51-65 F10-20 F21-35 F36-50 F51-65 11% 15% 14% 10%12% 15% 13% 10% 23% Under the Age of 20 11% 14% 16% 8%10% 16% 16% 9% 21% Under the Age of 20 51% Female 53% Full-Time Employee 51% Female 48% Full-Time Employee Source: Newzoo Mobile Consumer Insights Having looked at global app revenues, the number of smart mobile devices and the number of smartphone users, the next challenge is to look at the consumers behind the numbers. Understanding local mobile consumers and their behavior is crucial for any company that has a serious mobile component to its product or marketing strategy. Media consumption, spending habits, and preferences for brands, channels, and services can differ enormously per country. As an example, the three biggest app stores in the US do not differ much in overall age-gender split, but differences surface when diving deeper, as illustrated below.
  24. 24. © Copyright 2016 Newzoo 24 2016 GLOBAL MOBILE MARKET REPORT US APP STORE DEMOGRAPHICS AMAZON USERS ARE BIGGEST MEDIA SPENDERS Source: Newzoo Mobile Consumer Insights In addition to consumer age, gender, media consumption, and preferences, the demographic profiles of smart mobile device users also offer a treasure trove of data. The home situation, income and education levels, and various other socioeconomic data points can all be relevant for product development and marketing decisions. In this report, we focus mainly on apps, app stores, and direct consumer spending, but obviously such data is also highly relevant for mobile advertisers. Newzoo’s mobile consumer insights cover 200 variables across 27 individual countries. HOME SITUATION OF APP STORE USERS 2016 | US Lives Alone Lives With Parents Lives Together without KidsLives With Kids Almost half of Amazon app store users live with children vs. 40% for Apple and 45% for Google Play. They are the most likely to have a current subscription to media services like Spotify, Netflix, YouTube Red, and HBO Now. When it comes to mobile gaming, Amazon users are the most likely to spend money. One third of them are average or big spenders on mobile games versus 27% for Apple and 23% for Google Play. TAKE AWAYS 17% 10% 49% 24% 49% Lives With Kids 16% 17% 40% 27% 40% Lives With Kids 18% 15% 45% 22% 45% Lives With Kids 18% Subscribed 60% of Mobile Gamers Pay 17% Subscribed 54% of Mobile Gamers Pay 14% Subscribed 46% of Mobile Gamers Pay
  25. 25. © Copyright 2016 Newzoo 25 2016 GLOBAL MOBILE MARKET REPORT SOCIAL APP USERS SNAPCHAT HAS THE YOUNGEST DEMOGRAPHIC Source: Newzoo Mobile Consumer Insights 15% 13% 16% 17% 14% 13% 7% 5%9% 8% 14% 23% 20% 14% 6% 6% 11% 9% 10% 10% 10%10% 10% 10% 19% 11% 26% 18% 14% 8% 8% 5% 4% 6% 30% Under the Age of 25 55% Under the Age of 25 52% female 52% female 31% Under the Age of 25 45% Under the Age of 25 43% female 45% female Social apps are very illustrative of how users of apps within a certain category can differ per app. The age distributions of Facebook and Snapchat users in the US are very different; more than a quarter of Snapchat users are aged 16-20, while 50-65 year-olds are the biggest age group of active Facebook users. The young generation prefers a “content-first” approach and cares less for timelines and profile pages. In China, there are also notable differences between two popular social/chat applications: WeChat and RenRen. The latter skews older: 20% of RenRen users are in the older Millennial age bracket (31-35) vs. 14% of WeChat users. AGE OF ACTIVE SOCIAL/CHAT APP USERS 2016 | FACEBOOK & SNAPCHAT IN US | RENREN & WECHAT IN CHINA 10-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50 50-65* *only ages 10-50 are covered in China
  26. 26. © Copyright 2016 Newzoo 11% 13% 31% 32% 13%13% 12% 30% 34% 14% 17% 15% 32% 26% 11% 2016 GLOBAL MOBILE MARKET REPORT 26 MOBILE PAYMENT ATTITUDES SMART DEVICES ENABLE MOBILE PAYMENTS TO SURGE PREFERENCE* FOR USING MOBILE PAYMENT METHODS 2016 | GLOBAL 2nd Generation Millennials (18-25) 1st Generation Millennials (26-35) Non-Millennials Strongly Disagree Disagree Neutral Strongly AgreeAgree *Respondents were asked to what extent they agree with the following statement: I prefer to pay with digital mobile payment methods Source: Newzoo Mobile Consumer Insights TAKE AWAYS The majority of consumers have a preference for digital mobile payment methods. This is especially true for the older millennial generation aged 26-35. 48% of millennials aged 26-35 prefer to pay using digital mobile payment methods INDONESIA 59% CHINA 68% PHILIPPINES 56% Agreement is highest in: Owning and always carrying a smartphone is becoming ubiquitous and clearly proving to be an irresistible draw for service providers and advertisers. As more and more services are offered via smart mobile devices, it is inevitable that they will play a big role in financial transactions in the future, far beyond merely using the mobile banking app of your local bank. Newzoo research shows very positive attitudes toward mobile payments, especially among first-generation millennials. In several mobile-first emerging markets, asking about mobile payment preference is almost a rhetorical question. We expect mobile to become the dominant payment method in the not-too-distant future, whether through the technology of an established tech or payments processing titan or some as of yet little known FinTech startup.
  27. 27. © Copyright 2016 Newzoo 27 2016 GLOBAL MOBILE MARKET REPORT AUDIENCE INSIGHTS DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES FEATURED SERVICE www.newzoo.com/ mobile-consumers TYPICAL USE CASES FOR NEWZOO’S GLOBAL AUDIENCE INSIGHTS SMARTPHONE USER: An individual aged 14+ who possesses his/her own smartphone and uses it at least once a month. ONLINE POPULATION : A person with access to the internet, either through a computer or a mobile device. AUDIENCE INSIGHTS Big Spenders, Demographics, Stores, Devices, Franchises DEFINITIONS METHODOLOGY Newzoo’s Smartphone & Tablet Usage Model calculates and projects the number of active smartphone and tablet users per country, based on a combination of data sources, including Newzoo’s proprietary global device intelligence and census data from global institutions such as the Worldbank and the UN. We use a combination of socioeconomic and development indicators in combination with a proprietary market maturity model to project the share of the population that will use connected smart devices in the future. ANALYZE YOUR TARGET MARKET “We compared mobile consumers in Western markets with consumers in China and APAC. This data proved very important for our global strategy and marketing decisions.” MATCH CONSUMERS TO YOUR BRAND & PRODUCTS “Based on the socioeconomic data, we were able to identify which countries provided the biggest opportunity for our brand and products.” PROFILE YOUR TARGET GROUP “The data provided us with a lot of new unique insights into media consumption of our target group. This enabled us to optimize our value proposition to our customers. ” IDENTIFY THE BIG SPENDERS PER COUNTRY “The data helped us validate our opportunity in the Western market by profiling big spenders in detail. This makes it more easy to sell our products on a global scale.”
  28. 28. © Copyright 2016 Newzoo COMBINING METRICS FOR SUCCESS4
  29. 29. © Copyright 2016 Newzoo 29 2016 GLOBAL MOBILE MARKET REPORT MOBILE IS ALL ABOUT METRICS APPS ARE RUN AS A SERVICE AND OPTIMIZED CONTINUOUSLY The amount of data that can be generated by running apps as a service rather than a product is vast, and processing the data becomes a bigger challenge than collecting it. This is exactly where the mobile big data technology of our partner TalkingData comes into play, as illustrated by the graph below. It shows how app downloads are distributed over the days of the week. For both iOS and Android devices, we can see a clear pattern of increased download activity on Thursday, Friday and Saturday, albeit a bit more pronounced for Android. MONETIZATION VS. ENGAGEMENT Games have been the trail blazers for increasing the sophistication of monetization metrics. The basic metric of conversion can vary enormously between countries and app stores, as illustrated by the image on the left. For other apps, various engagement metrics may be far more important, but they allow for similar detailed comparisons. 10.9% 11.3% 12.8% 20.1% 18.4% 16.1% 10.5% 12.7% 13.5% 13.3% 16.4% 16.1% 14.8% 13.2% Monday Tuesday Wednesday Thursday Friday Saturday Sunday Android Platform iOS Platform SHARE OF (GAME) APP INSTALLS PER DAY OF THE WEEK IN CHINA JUNE 2016 | ANDROID VERSUS IOS Switzerland has the highest conversion rate on iOS 4.49% The Philippines has the lowest conversion rate on iOS 0.82% Switzerland also has the highest conversion rate on Android 4.86% Argentina has the lowest conversion rate on Android 0.40%
  30. 30. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 30 METRICS PRIORITIZE STRATEGY Creating a successful international app involves making a lot of important and interrelated decisions, from picking target countries, optimizing product positioning, targeting the audience, to deciding what devices on which to focus. Luckily, there is plenty of data to support such decisions and to benchmark results against external sources. As a decision in one area often has consequences for another, developers would be well advised not to look at a decision in isolation. Based on the data and experience now available on the app ecosystem, Newzoo and its partners can now quantify the impact of various strategic decisions, for example in terms of addressable market, as illustrated by the image below. ONLY A COMBINATION OF METRICS SHOWS TRUE OPPORTUNITY VARIETY OF MARKET KPIS & METRICS INVOLVED IN SIZING OPPORTUNITIES APRIL 2016 | METRICS RELEVANT TO PROFILING OPPORTUNITIES IN AUSTRALIA PRIORITIZE COUNTRIES APP STORE & GENRE FOCUS TARGET GROUP PROFILING OPTIMIZATION METRICS* 2016 MOBILE GAME REVENUES $510M 2015-2019 CAGR +4.2% 2019 MOBILE GAME REVENUES $580M iOS MARKET SHARE 67% SHARE CASINO GENRE ON iOS 24.5% TOP GROSSING CASINO GAME ON iOS Heart of Vegas SPENDERS ON iOS 1.3M SHARE OF iOS SPENDERS PLAYING CASINO 8.0% M/F RATIO OF CASINO PLAYERS ON iOS 55% Male ARPDAU iOS GAMES $0.12 D7 RETENTION RATE FOR iOS 23.7% SHARE OF iOS SPENDERS THAT CONVERTED ON D0 21.8% DEVELOP FOR TOP DEVICES TOP 5 DEVICES 1. iPHONE 6 2. iPHONE 5S 3. iPHONE 5 4. iPHONE 6 Plus 5. iPAD Air For Each Individual Monetization Metric, the Lowest and Highest Scores Differ >10XDepending on Country, Genre, or Platform *All game monetization metrics are 75th percentile figures (for a full month), because we want to benchmark against successful games. The straight average would be too heavily influenced by poorly performing games. FEATURED FACT
  31. 31. © Copyright 2016 Newzoo 31 2016 GLOBAL MOBILE MARKET REPORT MONETIZATION METRICS DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES FEATURED SERVICE www.newzoo.com/metrics TYPICAL USE CASES FOR NEWZOO’S MONETIZATION METRICS INSIGHTS ARPDAU: Average Revenue Per Daily Active User. ARPPU: Average Revenue Per Paying User. CONVERSION RATE: Share of users that make at least one purchase in a given time period. RETENTION RATE: Share of users still using an app after x amount of days. MONETIZATION METRICS Conversion, Retention, ARPPU, ARPDAU, Genres DEFINITIONS METHODOLOGY Our monetization metrics service combines and aggre- gates actual data collected continuously from hundreds of games with various (grossing) rank positions and repre- senting different genres. Working with our strategic partner deltaDNA, we are able to compare performance of games in terms of retention rates, ARPPU, and other key metrics across 40+ countries.. This also allows us to benchmark performance per app store and genre. OPTIMIZE MARKETING SPEND “It turns out that for certain markets, the ARRPU from iOS consumers outperformed Android to such a high extent that we decided to focus purely on the iOS system. For certain countries in Southeast Asia, the reverse was true.” PRIORITIZE YOUR INTERNATIONAL ROLL-OUT “We found the five most valuable markets for casino games in Latin America, allowing us to prioritize our advertisement placement and brand awareness to those markets.” DEVELOP REALISTIC BUSINESS PLANS ON THE LATEST METRICS “We were able to set realistic targets for the five regions we are looking to expand in. Meanwhile, we are constantly monitoring other markets and have set thresholds for the point when it would be interesting to enter.” BENCHMARK YOUR APP WITH YOUR COMPETITORS “We thought our conversion rate in Saudi Arabia was insufficient. The data provided us with more insights into the market which in turn provided new ideas on how to increase our conversion.”
  32. 32. © Copyright 2016 Newzoo FEATURE: CHINA ANDROID ECOSYSTEM 5
  33. 33. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 33 CHINA ANDROID ECOSYSTEM The share of Android devices in China is much higher than in the US as a result of the many successful local device manufacturers, who have also been able to fend off competition from other Asian manufacturers such as Samsung. Given their explicit international ambitions, we expect to see a lot more Chinese brands in overseas markets over the next few years, giving Western and other Asian manufacturers a run for their money. Nevertheless, the success of Apple in China is absolutely stunning, effectively the only Western consumer brand that succeeds in becoming the market leader in China with no other Western brands in sight. NAVIGATING CHINA’S MOBILE ECONOMY Of All Smartphones & Tablets Used in China, Android Devices Represent 73% TOP 5 ANDROID APP STORES IN CHINA JULY 2016 | BY INSTALL RATE | CHINA STORE DIVERSITY A unique feature of China’s mobile ecosystem is the large amount of third-party Android stores, filling the void that the ban on Google Play created. Tencent operates the most popular store by install rate, unsurprising given its huge scale. 360 Mobile Assistant ranks #2, aided by Qihoo’s strong reputation for security. Baidu Mobile Assistant undoubt- edly still benefits from Baidu’s huge online search business, but is closely followed by the app stores of device manufacturers Xiaomi and Huawei, the popularity of which is of course more closely tied the popularity of their devices. An interesting one to watch is Wandoujia, recently acquired by ecommerce giant Alibaba. 1. 2. 3. 4. 5. MY APP TENCENT 360 MOBILE ASSISTANT QIHOO 360 BAIDU MOBILE ASSISTANT BAIDU MIUI APP STORE XIAOMI HUAWEI APP STORE HUAWEI 23.6% 17.8% 16.7% 15.0% 11.6% DEVICE USAGE: ANDROID VS. iOS JULY 2016 | CHINA INSTALL RATESTORE / COMPANY 73% 27%
  34. 34. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 34 ANDROID APP PERFORMANCE An epic battle for dominance of China’s ride-hailing market played out over the past few years, not in the least because of Uber’s decision in 2013 to enter the Chinese market. As the ride-hailing segment has apps at the heart of its business model, growing monthly active users is critical to success, but also a very costly undertaking on such a scale. Didi, itself the product of a 2015 merger with Kuaidi Dache, is backed by investors including Baidu, Tencent, Apple, and Alibaba. Uber China was set up as a separate entity, and received funding from a roster of China-based institutional investors. The graph below shows that Uber was clearly making progress in China in the months before being acquired. ANALYZING MONTHLY ACTIVE USERS ACROSS ALL STORES ANALYSIS OF ANDROID TAXI HAILING APPS: UBER VS. DIDI FEB – JULY 2016 | ANDROID ECOSYSTEM | CHINA DIDI ACQUIRES UBER CHINA In August 2016, Uber announced it would sell its China business to Didi Chuxing. Swapping its business for a minority stake in Didi meant finally ending its costly battle for the China market. China’s Largest Mobile Smart Data Company TalkingData is China’s largest, independent Smart Data service platform that focuses on the mobile app marketplace. TalkingData provides best- in-class Smart Data products and services, such as mobile app analytics, mobile ad tracking, mobile game analytics, mobile market intelligence, DMP (Data Management Platform), and industry consulting.FEATURED PARTNER
  35. 35. © Copyright 2016 Newzoo 35 2016 GLOBAL MOBILE MARKET REPORT CHINA APP STORE INTEL DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES FEATURED SERVICE TYPICAL USE CASES FOR NEWZOO’S CHINA APP STORE INTELLIGENCE MAU: User who has opened the app at least once in the given time period. DEVICE USAGE: Devices which have been used at least once in the given time period. ANDROID APP STORE: First or third-party app used to find and install new games. www.newzoo.com/apps-china CHINA APP STORE INTELLIGENCE Revenues, Downloads, China Android, iOS/Google Play, DEFINITIONS METHODOLOGY Working closely with our partner TalkingData, we provide clients with in-depth market intelligence on the complete Chinese mobile ecosystem. TalkingData is China’s leading mobile smart data company, tracking two thirds of all active smart devices and its users. It reports on individual app performance by aggregating data from its suite of analytics tools used by the vast majority of Chinese developers. The derived insights are nearly endless, from app (store) performance, device use, and engagement metrics, to location-based analysis and demographic profiling through its machine-learning technology. TRACK ALL APPS & APP STORES IN CHINA “Although the store we published in did not have the highest amount of monthly active users, most of its top downloaded apps were similar to our app, meaning there was a lot of demand for our specific genre in that store.” PROFILE OPPORTUNITIES OF INDUSTRY PEERS IN CHINA “To launch our payment app in China, we knew exactly which companies to partner with, and which companies were our direct competitors.” IDENTIFY KEY GROWTH APPS & COMPANIES IN CHINA “WeChat is now installed on over 800M Chinese devices, growing significantly year over year. The growth was mainly driven by its latest update, which improved its feature set significantly.” TRACK MARKET SHARE OF CHINA’S INDUSTRY LEADERS “Last month, Tencent’s growth was significantly stalled. Meanwhile, Alibaba’s unique new apps were rapidly growing, providing a positive prognosis for the coming months.”
  36. 36. © Copyright 2016 Newzoo FEATURE: POKÉMON GO6
  37. 37. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 37 FEATURE: POKÉMON GO Pokémon GO has been the breakout hit of 2016. Niantic Labs’ game has accrued more than 550 million installs and $470 million in gross revenues (including app store fees) in its first 82 days since launch. Examining data from our Game Franchise Consumer Insights, we answer some common questions surrounding the game and its players. SHAKING UP THE MOBILE WORLD IN MULTIPLE WAYS POKÉMON GO’S MASS SUCCESS: DAILY DOWNLOADS & REVENUES 2016 | GLOBAL | iOS & GOOGLE PLAY | FOR FIRST 82 DAYS SINCE LAUNCH TOTAL DOWNLOADS TOTAL GROSS REVENUES* ~550M ~$470M IN FIRST 80 DAYS IN FIRST 80 DAYS IS POKÉMON GO A HYPE? It is and is not. If sudden mass appeal characterizes a hype, Pokémon GO fits the definition more than anything else. When almost one in four smartphone or tablet users in the world downloads and plays a game, it’s definitely a mass phenomenon, one that’s disrupted public life at many locations across the globe. If a hype means that the popularity is short-lived, Pokémon GO is not a hype. Revenue levels have dropped from a peak of $16 million per day in the beginning to a steady $2 million (excluding the 30% fee for app stores) over the past weeks. There are still approximately 700,000 new down- loads every single day. Moreover, Pokémon GO is yet to officially launch in South Korea and China. Last week, a Pokémon-GO-type game, City Monsters Go, was launched by publisher Lequsy in China and received rave reviews. *Gross revenues include app store fees Source: Newzoo App Store Intelligence
  38. 38. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 38 POKÉMON GO’S MASS APPEAL Pokémon GO has leveraged the power of the Pokémon brand to reach the players who grew up with the franchise. More than one third (36%) are aged between 16-25, versus 21% for the average franchise. This means that players at the higher end of the age range will have played Pokémon Red, Blue, or Green between 1996 and 1999. Females make up 43% of Pokémon GO gamers, a testament to the original franchise, which crossed the gender divide. MASS AUDIENCE RULES AGE/GENDER & MOBILE GAMING EXPERIENCE OF POKÉMON GO PLAYERS 2016 | AMONG ONLINE POPULATION AGED 10-50 | US, UK, GERMANY & FRANCE US UK Japan Spain Germany Italy France Australia Ireland Canada 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOP COUNTRIES BY DOWNLOADS POKÉMON GO (iOS & GOOGLE PLAY) IS POKÉMON GO BRINGING IN NEW (MOBILE) GAMERS? The answer is yes; 24% of Pokémon GO players hadn’t, in the past three months, played any other top mobile franchise in our research. This suggests that the title has attracted more than 20 million new mobile gamers across the US, UK, Germany, and France alone. Some of these were already gaming on other platforms, but 8%, or around 6.6. million, had not played any of the 100 researched franchises in the past three months. This appeal to a new gaming audience has made Pokémon GO the most popular franchise across the four countries. *Has played Pokémon Go in the past three months Source: Newzoo 2016 Game Franchise Consumer Insights Played Any of the Top 30 Mobile Franchises Within Past 3 Months Have Not Played Any of the Top 30 Mobile Franchises Within Past 3 Months M10-20 M21-35 M36-50 F10-20 F21-35 F36-50 19% 26% 12% 13% 20% 10% AGE/GENDER OF POKÉMON GO PLAYERS* 43% of Players Are Female MOBILE GAMING EXPERIENCE OF POKÉMON GO PLAYERS 24% 76% 24% Have Not Played Another Top 30 Mobile Franchise SCOPE OF DATA
  39. 39. © Copyright 2016 Newzoo 2016 GLOBAL MOBILE MARKET REPORT 39 POKÉMON GO’S UNIQUENESS The most interesting fact about the Pokémon GO player base is that it appears to be a broadly traditional gaming audience, despite its newness. After players of the regular Pokémon franchise, Dota 2 gamers are most likely to be playing Pokémon GO (80%), while Candy Crush Saga gamers are the least likely (46%). SUCCESS ACCELERATED MOST ENJOYED ASPECTS OF POKÉMON GO 2016 | VS. DOTA 2 & CANDY CRUSH SAGA | US, UK, GERMANY & FRANCE FEATURED POKÉMON GO CLONE WHAT DO POKÉMON GO PLAYERS MOST ENJOY ABOUT THE GAME? Pokémon GO’s popularity is based on a fusion of interests between the general mobile audience and the preferences of its hard core fan base. While the most popular aspect of Pokémon GO was how easy it was to pick up and play (31% of players liked this), the other most enjoyed features were the ability to roam and explore (25%) and its competitiveness (20%). This puts Pokémon GO at odds with casual mobile games and places it closer to traditional hard core games. For example, Candy Crush’s most popular feature was also how easy it was to start (49% of players liked this) but competitiveness was ranked as less important than in Pokémon GO (18%). Meanwhile, players of MOBAs like DOTA 2 rank competitiveness highly (25%) and prefer openness and role-playing elements. A Pokémon-GO-type game, City Monsters Go, was launched in September by publisher Lequsy in China to rave reviews. City Monsters Go Lequsy Source: Newzoo 2016 Game Franchise Consumer Insights
  40. 40. © Copyright 2016 Newzoo NEWZOO MOBILE INTELLIGENCE7
  41. 41. © Copyright 2016 Newzoo 41 2016 GLOBAL MOBILE MARKET REPORT MOBILE INTELLIGENCE SUITE GLOBAL TRENDS TO IN-DEPTH DATA ON 190 COUNTRIES DEVICE INTELLIGENCE STORE INTELLIGENCE ENGAGEMENT METRICS AUDIENCE INSIGHTS APP INTELLIGENCE MONETIZATION METRICS Brands, Models, OS, Screen Size, Tablet/Smartphone Chinese Android Stores, iOS/Google Play, Rankings App & Game Downloads, Revenues, Per Store Conversion, Retention, ARPPU, ARPDAU, Genres Session Length, Time of Day, Genres, Mau (China) Big Spenders, Demographics, Stores / Devices, Franchises GLOBAL MOBILE MARKET REPORT | SUBSCRIPTION INDIVIDUAL DATA PRODUCTS | SUBSCRIPTIONS & CUSTOM PROJECTS www.newzoo.com/mobile ANNUAL REPORT & QUARTERLY UPDATES DASHBOARDFIRST QUARTERLY UPDATE: Q1 2017 Newzoo’s Mobile Intelligence suite of services aims to offer complete global coverage to all industries that put mobile at the center of their strategy, product development, or marketing. Subscriptions combine the most relevant market intelligence services for our clients and are scoped by region, frequency of (custom) reporting, and service level.
  42. 42. © Copyright 2016 Newzoo 42 2016 GLOBAL MOBILE MARKET REPORT OUR PARTNERS & PITCH SCOPE OUR SERVICES TO YOUR NEEDS WORLD-LEADING STRATEGIC PARTNERS TalkingData is China’s largest, independent Smart Data service platform that focuses on the mobile app marketplace. TalkingData provides best-in- class Smart Data products and services, such as mobile app analytics, mobile ad tracking, mobile game analytics, mobile market intelligence, DMP (Data Management Platform), and industry consulting. www.talkingdata.com Priori Data is an App Store Intelligence company providing comprehensive market data and competitive benchmarking information on the global app economy. Priori Data provides key metrics such as app revenue, downloads, and ranks on more than 3 million apps across more than 55 international markets. www.prioridata.com DeltaDNA is the games industry’s leading real- time analytics and marketing platform. It is the only platform to provide a complete view of players’ in-app purchase and ad monetization engagement. Its services allows developers to maximize engagement and lifetime value through player segmentation, predictive modelling, and real-time targeted interventions. www.deltadna.com Pushwoosh, with five years of expertise in push notifications technology, sends over 10 billion push notifications per month and reaches more than 1.2 billion devices, making it a global leader in the push notifications market. The firm has built solid relationships with more than 50,000 clients and more than 100,000 apps receive push messages powered by Pushwoosh. www.pushwoosh.com PRODUCT SUBSCRIPTIONS CUSTOM PROJECTS PARTNER MODEL WORKING WITH US The current pace of change in consumer behavior, media, and technology requires a new type of intelligence firm that is agile, innovative, truly global and ahead of the curve. We aim to be recognized as the #1 provider of games, esports and mobile intelligence in the world. Newzoo’s Mobile Intelligence suite is powered by proprietary models, algorithms, and predictive analytics that combine numerous sources of data, including our strategic partners that each are global leaders in their respective field. These partners are also involved in performing custom projects that are outside of the standard product scope. www.newzoo.com/mobile

×