Distimo analyzes the global app store market, emphasizing its growth potential, particularly in gaming, where games make up over 75% of revenue. The report highlights the importance of localizing content for different markets and outlines trends in app monetization, including the significant revenue generated from in-app purchases. Additionally, it discusses the emergence of various app stores, such as Amazon, and their increasing competition within the marketplace.

1. The Appstore Opportunity
Gert Jan Spriensma
gertjan@distimo.com
@gert_jan / @distimo

2. WE KNOW APP STORES
1. DISTIMO COLLECTS FACTUAL AND TIMELY MARKET DATA, WORLDWIDE
2. DEDICATED TO MARKETS WHERE APP STORES ARE LEADING DISTRIBUTION CHANNEL
3. INDEPENDENT AND CROSS-STORE ANALYSIS, APPLYING SAME METRICS TO EVERY STORE

3. DISTIMO MONITOR
FREE – TRUSTED BY 6,000 DEVELOPERS – TRACKING 10M DAILY DOWNLOADS
1. FREE CROSS-PLATFORM APP STORE MONITORING TOOL FOR DEVELOPERS
2. SUPPORT FOR ALL MAJOR APP STORES
3. TRANSACTIONAL DATA ALLOWS US TO BENCHMARK APPLICATIONS WITH THE MARKET

4. DISTIMO REPORT
TOP APPS & BENCHMARK REVENUE &
PUBLISHERS APP STORES BUSINESS MODELS
WHAT IS THE MOST HOW DO THE DIFFERENT WHAT ARE VOLUMES
SUCCESSFUL AND LOCAL APP STORES COMPARE IN THE MARKET?
CONTENT? OVER TIME? HOW DO APPS MONETIZE?
COVERING EVERY APP - IN EVERY MAJOR APP STORE - IN EVERY COUNTRY

5. THE APPSTORE OPPORTUNITY

6. APPS ARE A $10 BILLION MARKET
GROWING AT 100% PER YEAR
 Majority Games, roughly 50% of all free downloads are Games.
 For paid applications this figure is even higher, 60% of all paid downloads are Games.
 But in terms of revenue, more than 75% of revenue derives from Games.
 Angry Birds is downloaded (600M+) over 3 times as much as number of Nintendo DS’s sold
* Mary Meeker / Distimo, based on 200 most grossing / popular applications in United States – March 2012

7. RANKING & NETWORK EFFECTS
SPEED UP POPULARITY
To get To 1 Million Users It Took:
9 Years 9 Months 9 Days
 Number 1 generates about 1.5 times as much downloads as number 2.
 Ranked around 10 means 3 times as much downloads as being ranked around 50.
* Distimo, based on 200 most popular applications in United States – March 2012

8. BUT POPULARITY IS TEMPORARY AND
CONSUMERS ARE NOT LOYAL
Number Of Games In Top Games 100 296
Number Of Games In Top Games 50 157
Number Of Games In Top Games 10 46
“average worldwide 6-
month retention rate for all
apps was 36%
* Flurry / Based on 100 most popular free games in United States – March 2012

9. MANY OF THE MOST SUCCESSFULL
PUBLISHERS ARE SMALL (≤10 APPS)
100%
183 173
152
50%
0%
 However not small in terms of revenue / downloads, think of publishers like OMGPOP, Rovio and
Halfbrick Studios
* Mary Meeker / Distimo, based on 250 most popular publishers in United States – March 2012

10. DISTIMO MONITOR; TRACK YOUR
(COMPETITORS) PERFORMANCE

11. MONETIZATION IN APPSTORES

12. IN-APPS DRIVE GAMES REVENUE
71% - 90% 68% - 92% 83% - 91%
Free applications with in-apps Paid applications with in-apps Paid applications without in-apps
 In all stores more than 70% of the revenue derives from in-apps!
 Recently introduced in Amazon App Store, will come to Windows Phone 7 Marketplace as well
* Based on 200 most grossing games in United States – March 2012

13. 50% USE VIRTUAL CURRENCIES
51% 49%
 Including many of the most popular games in March 2012
Draw something – OMGPOP Draw something – OMGPOP
Temple Run – Imangi Plumber Crack – Fluick
Word With Friends - Zynga Hidden Objects - Disney
* Based on 200 most popular free games in United States – March 2012

14. DISTIMO MONITOR; COMPARE REVENUE
FROM DIFFERENT SOURCES

15. IMPACT OF COUNTRIES CHANGING
RAPIDLY

16. APAC COUNTRIES LARGEST MARKET
FOR IPHONE DEVELOPERS
4M 3.2M 1.3M 0.9M 0.6M
IN FEBRUARY CHINA SURPASSED THE U.S. AS THE LARGEST MARKET IN THE APPLE APP STORE FOR IPAD
* Based on 200 most popular free iphone applications in each country – March 2012

17. BUT WHEN DEVELOPING ABROAD, ACT
LOCALLY
100%
90% 75%
80% 75%
68%
70%
58% 56% 56%
60% 54%
50%
40% 36%
42% 45%
38% 68%
30% na
20%
58%
 In many countries the majority of the downloads originate from applications that have translated
their content in the country’s language.
 In China, of the 300 most popular free applications, 60% were only popular in China compared to 21%
in the United Kingdom and 22% in the United States.
* Based on 300 most popular free applications in United States – March 2012

18. DISTIMO MONITOR; SEE HOW YOUR APP
DOWNLOAD COMPARE TO THE MARKET

19. IMPACT OF STORES CHANGING

20. GOOGLE PLAY MONETIZATION IS
GETTING BETTER
May 2011 March 2012
<100 <100
71.9% 63.85%
>50,000 >50,000
0.1% 1.15%
1,000-49,999
7.3% 1,000-49,999
9.29%
100-999
100-999
20.7%
25.71%
 The number of available applications more than doubled in the same time-frame.
 Daily revenues increased by 80% over the first quarter 2012.
* Based on 200 most grossing applications in United States – March 2012

21. BUT WATCH AMAZON
4
Millions
3
2
1
400k
0
 Already 400k daily downloads of which 10% is paid
 Got to 32k applications in one year, the majority also being available in Google Play
 Of the 110 applications available in both stores that generate more than 200 USD a day in at least
one of both stores, 42 of those earned more money in the Amazon Appstore.
 After launch of Kindle Fire daily downloads increased fourteen-fold
* Based on 100 most popular / grossing applications in United States – March 2012

22. WHAT ABOUT THE OTHERS
APP STORES?
 Strong momentum, relative number of applications growth
highest of all app stores.
 Download figures increased by 114% to over 100k per day
in the last quarter
 Taptitude making over $1000 a day (ads)
 Port to Android applications to BlackBerry platform seems
to be successful, increase in number of applications
submitted to App World (15k – 20k PlayBook applications
already available).
* Based on 200 most popular applications in United States – March 2012

23. DISTIMO APPLINK; THE CROSS STORE
APP SOLUTION

24. DISTIMO APPLINK; THE CROSS STORE
APP SOLUTION

25. ANALYZE YOUR (COMPETITORS)
PERFORMANCE.

26. ANALYZE YOUR (COMPETITORS)
PERFORMANCE
GOTO MONITOR.DISTIMO.COM
OR ASK ME FOR A DEMO

27. THANK YOU
FOR ANY ENQUIRIES, PLEASE CONTACT:
Gert Jan Spriensma
gertjan@distimo.com
@gert_jan / @distimo
Custom in-depth The free cross-
app store market platform app store
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& manufacturers developers
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