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APP INSIGHT REPORT

Simplifying Mobile

APP INSIGHT REPORT
Q3, 2013
APP INSIGHT REPORT

TABLE OF CONTENTS
01

InMobi App
Insight Report,
Q3 2013

02

Adding up the
world : Global app
promotion trends

03

Top Trends &
insights to drive
downloads
effectively for your
Apps

04

Glossary

Creative
Matters : Ad
formats that
work best for
your app

Bang on
Target:  Sites
you should
target for
maximum
conversions

Tips & Tricks
to win on
Tablets

Cut costs
without
cutting
corners

Market
Spotlight :
Taming the
Chinese
Dragon
APP INSIGHT REPORT

InMobi App Insight report
Q3 2013
As app developers, you’ve spent time designing, developing and delivering your app.
Now you are on the brink of beginning the next important phase – acquiring users.
But guess what, the mobile app ecosystem is a highly competitive marketplace. App
developers constantly jostle for their niche in an already crowded market. Carving
out that space is not easy unless you have the right tools of knowledge in your
pocket and know what you need to, to be successful in this effort. This is where the
InMobi App Insight report comes in.
As part of the first edition of this report, we have analyzed thousands of app promotion
campaigns that ran on our network. Following thorough number-crunching and indepth research, we present data that is visually arresting, quantitatively significant
and vital to your app’s success. We’ve selected global data from Q2 2013 to arm
you with knowledge of the top trends in app promotion campaigns that can help
you effectively drive app downloads globally. Aligning your app with these insights
will make your product stand out in the vast ecosystem and give your app that
competitive edge!
01
APP INSIGHT REPORT

Adding up the world :
Global App Promotion Trends
Over 50 Million app installs were delivered on the
InMobi network in 2013 YTD.
InMobi continues to power millions of app installs for top developer studios and
independent developers across the world. In Q2 2013, US continued to be the
most favorite battleground for developers looking to drive downloads on our
global ad network, with several of them also vying to tap into the high smartphone
penetration and expansive mobile subscriber base that markets such as India, China
and Japan represent. As more users get access to mobile media, large markets
such as Indonesia are also becoming increasingly valuable for app developers, with
the country holding the fifth spot on our top list of countries for app promotions.

02
APP INSIGHT REPORT

Network highlight: The top 5 countries accounted
for over 60% of the overall app downloads
33.8%

USA

9.5%

India

9.1%

Japan

7.7%

China

4.6%

Indonesia

4.2%

South Korea

3.5%

Canada

3.0%

United Kingdom

2.5%

Australia

2.4%

Spain

2.1%

France

1.9%

Mexico

1.6%

Germany

1.5%

Italy

1.2%

Brazil

1.1%

Sweden

1.0%

Thailand

Chart 1: % of App Downloads By Country, Q2 2013

03
APP INSIGHT REPORT

Games represented the most
downloaded app category on the
InMobi network in Q2 2013
According to Juniper Research’s report, “Future App Store: Discovery, Monetization&
Ecosystem Analysis 2013-2018,” gaming will fuel a sharp hike in app downloads with
experts predicting that, in 2017, over 160 billion apps will be downloaded globally
onto consumer handsets and tablets. The trends observed on the InMobi network
are in tandem with this prediction, with games as a category representing 64% of
the total apps downloaded through our network.

04
APP INSIGHT REPORT

64.0%
Games

11.3%

Communication

6.8%

4.0%

2.7%

2.6%

Telecom

Entertainment

eCommerce

Business &
Productivity

1.8%

1.1%

1.1%

0.9%

Mobile
Content & Others

Social

Consumer
Packaged

Travel

0.5%

0.4%

0.4%

0.3%

Retail

Health
& Fitness

Sports

Education

Chart 2: % of App Downloads By Category, Q2 2013

05
APP INSIGHT REPORT

Top trends & insights
to drive downloads
effectively for your apps

06
APP INSIGHT REPORT

01

Creative Matters: Ad formats that work
best for your app
As a developer, you know that designing the right ad experience is crucial to
grabbing the user’s attention and coaxing them to download your app. While simple
banners continue to do this job quite well, mobile advertising today offers far more
interesting options, ranging from rich media and interstitials to expandable ads and
other unique ad formats. So which one do you pick for your app?

07
APP INSIGHT REPORT

1a. Interstitials rule the roost
Upto 25% Click through and 10% Conversions seen on interstitial
ads on the InMobi network
When it comes to promoting your app, we notice that there’s something almost
magical about interstitial ads. Maybe it’s the way they expand to overtake your
whole screen with a rich HTML5 image. Maybe it’s the way they demand attention
in an era of quick glances and endless scrolling.
While top game developers on the inmobi network have seen upto 25% click
through and 10% conversion, this ad format is also seen to work very well for a
wide range of content. On our network, we noticed average conversions as high as
8% for comics and 5.6% for health & fitness apps.

5.6%
Health

Music & Audio

Productivity

5.0%

3.3%
Tools

3.2%

3.0%

2.7%

2.1%

1.9%

1.7%
News &

1.6%

1.0%
Social

& Fitness

8.0%
Comics

2.1%
Education

2.0%
Books &
References

Weather

Entertainment

5.2%

Sports

Magazines

Games

Media & Video

Lifestyle

Networking

Chart 3: Average Conversion Rates On Interstitials Across App Categories – Q2 2013

08
APP INSIGHT REPORT

On Android, the average conversions on
interstitial ads are almost double that of
other ad formats
3.06%

1.65% 1.73%

1.99%
1.58%

1.40%
1.12%
0.63%
Banner Ads

Expandables

Interstitials

Text Ads

Chart 4: Average Conversion Rates Across Ad Formats by OS, Q2 2013
Average Conversion Rates on iOS
Average Conversion Rates on Android

Quick Tip: For apps with short app sessions, static
interstitials get the point across immediately
and are found to be the most effective in
driving engagement. On the other hand, for
more engaging apps with longer app sessions,
video interstitials deliver higher eCPMs. Static
interstitials typically are observed to provide
CTRs as high as 20% while video-interstitials are
found to deliver superior ad engagement.

09
APP INSIGHT REPORT

1b. Don’t do away with banners, just yet!
Well, interstitials are the in thing - no denying that. But does that warrant doing
away with good old banner ads?
On InMobi’s network, we notice banners continue to work well for a wide range of
non-gaming content on both iOS and Android.
Chart 5: Conversion Rates On Banners Across Non Gaming Apps–By OS, Q2-2013

Software

3.3%

3.5% Software

Weather

2.6%

2.8% Business

Travel & Local

2.4%

2.5% Education

Shopping

2.4%

2.2% Medical

Medical

2.3%

2.2% Finance

Tools

2.3%

2.2% Communication

Business

1.8%

2.0% Catalogs

Lifestyle

1.8%

2.0% Health & Fitness

Productivity

1.8%

1.9% Tools

Finance

1.7%

1.6% Weather

News & Magazines

1.7%

1.5% Travel & Local

Quick Tip: For any app promotion campaign, we recommend using a good mix of HD banners
and interstitials to ensure you reach audiences on a wide variety of handsets. Also, rotating ad
formats can reduce ad fatigue and help drive higher ad engagement.
APP INSIGHT REPORT

02

Bang on Target: Sites you should
target for maximum conversions
The mobile consumer today shunts his presence on different mobile sites. So where
do you find the right users for your app?
In this report, we specifically analysed conversions for games, social and
entertainment apps on iOS to understand which sites you should target to drive
maximum installs while promoting your app.
InMobi Insight: Almost all kinds of sites delivered good downloads on games suggesting that the audience for this category is diverse and widespread. Sports
and health & fitness sites delivered maximum downloads for social apps. On the
other hand, communication sites delivered the most downloads for entertainment
apps.

11
APP INSIGHT REPORT
Chart 6: iOS CVR Index Across Site Category By Content, Q2 2013

Gaming Apps

CVR Index Site Category
215
206

Sports

197

Tools

192

Travel & Local

157

Lifestyle

155

Shopping

150

Business

146

Productivity

137

Social Apps

Weather

Media & Video

CVR Index Site Category
325
306

Sports

213

News & Magazines

141

Media & Video

118

Finance

101

Entertainment Apps

Health & Fitness

Tools

CVR Index Site Category
409
205

Education

145

Sports

127

Media & Video

116

Catalogues

110

Weather

100
Note: Index calculated with gaming category as a base.

Communication

Games
APP INSIGHT REPORT

03

Tips & Tricks to win on Tablets
“Over 1,146 unique app download campaigns ran across the InMobi network on
tablets, i.e., one out of every three app promotion campaigns on the network also
ran on tablets.”

13
APP INSIGHT REPORT

Why Advertise on Tablets?
Exponentially Expanding
High Quality User base

2011

28.3M

2012

74.1M

In tier 1 cities every user will own a tablet
by the end of 2013, generating 3x more
download revenue than smartphones

2013

126.2M

Source: A Potrait of Today’s User Wave II, OPA, June 2012

Tablet Owners

More Engaged Users
Garnering a significant amount of
timeshare due to higher user engagement,
tablets are the most preferred medium to
consume media

= 90 Mins
= 58 Mins
= 50 Mins

Source: Pew Research, 2012

Phones

3x

Tablets

Higher Inclination To
Consume Ads
Users are at least 3x more open to
consuming ads on tablets compared to
smartphones
CTR

14

Source: The Adfonic AdSnap Tablets, Q1 2013
APP INSIGHT REPORT

Apple still leads the pack, but Android
tablet usage is catching up
Tablets & connected devices accounted for 14.1% of total impressions on the
InMobi network in Q2 2013, with Apple remaining the top manufacturer in tablet
category with the largest share of impressions.

Device Share of Impressions, Q2 2013
65.0%

21.0%
14.1%

-0.9

Smartphones

+0.2

Tablets &
Connected Devices

+0.7

Feature Phones

Chart 7 : Device Share Of Impressions, Q2 2013
Q2 2013
Q1 2013
+ - Percentage point change since Q1 2013

15
APP INSIGHT REPORT

Top Tablet Manufacturers, Q2 2013
53.9%
Apple

28.4%

Samsung

4.1%
Amazon

3.0%
Google

2.1%
Acer

1.2%
Asus

16
APP INSIGHT REPORT

15.4%

7.7%

Chart 8: Top Countries in terms of Tablet Usage on InMobi Platform, Q2 2013

6.9%
4.3%

4.0%
3.2%

USA

China

Thailand

United Indonesia
Kingdom

Galaxy
Galaxy
Galaxy
iPad Tab 2 7.0 Tab 2 10.1 Note 10.1

3.6%

Japan

3.0%

2.9% 2.9%

France Russian
Federation

Saudi
Arabia

Galaxy
Galaxy Kindle Fire Kindle
Nexus 7 Tab 10.1 Tab
HD 7
Fire

2.9%

2.1%

1.8%

1.6%

1.2%

2.8%
Malaysia

Galaxy
Tab 7.0 Kindle
Plus
Fire 7

1.0%

1.0%

7.6%
10.2%

53.9%

Chart 9: Top Tablet Devices By Impressions On Inmobi Platform, Q2 2013

17
APP INSIGHT REPORT

Ads that work well on tablets
Consumers are increasingly utilizing tablets for shopping, game play and
communication. The same optimized banner ad on a tablet app may perform
completely different from an ad on a smartphone app. Knowing your target
demographic on tablets or smartphones and what type of ads they engage with
the most is crucial to designing an effective app promotion strategy on tablets.
A quick comparison between tablet CTRs and average ad network CTRs reveal
that text ads don’t work well on tablets. However, interstitial ads deliver solid
results with almost 46% higher CTR for tablet campaigns.

Tablet CTR vs. Network CTR
(% increase/decrease)

46.0%
23.0%
13.0%

-37.0%
Text Ads

Interstitial

Rich Media Ads

Chart 10: Tablet CTR vs. Network CTR Across Ad Formats, Q2 2013
+/-(% increase/decrease)

18

Banner Ads
APP INSIGHT REPORT

Top 3 tips to make your tablet
campaigns work:

01
02
03

Leverage the real estate: Take the effort to optimize your ad size for
tablets. Tablet optimized ads tend to deliver 3x higher conversions and
ROI .InMobi recommends using the 728×90, 300×250 , and 468×60 slot
sizes for best results on your tablet campaign.
Bid at the right price: Tablet users tend to have higher LTV, and are
on average, better spenders as well. This increases demand for tablet
advertising and most advertisers are already bidding more. InMobi
recommends that you bid about 1.5 – 2x more on tablets to hit the scale
that you want.
Mix and match: High definition ad formats match perfectly with the highresolution display of tablets, creating a deeply engaging experience for
users. InMobi recommends rotating between HD banners, Interstitials
and video ads to reach your users in the most optimal way.

19
APP INSIGHT REPORT

04

Cut costs without cutting corners
Agreed it’s a competitive marketplace out there. You don’t know your user’s Lifetime
Value (LTV) and can’t decide how much to spend on acquiring users. But not all apps
are created equal. Depending on what kind of app you have built and the country
you target, the cost to drive a download ( CPD) could vary significantly.

20
APP INSIGHT REPORT
Indexed against the costs in the US, our research indicates that driving a download
in most markets, especially in China, Japan and Korea is relatively cheaper in comparison to
the US market , with the UK representing the most expensive markets and India the least
Expensive.

174

United Kingdom

127

Australia

100

USA

95

New Zealand

87

Malaysia

84

South Korea

84

Vietnam

81

Japan

77

Hong Kong

75

France

71

Singapore

60

China

56

Germany

40

India

Chart 11: CPD Index By Country, Q2 2013
Note: Index calculated using USA as base

21
APP INSIGHT REPORT
CPDs also vary drastically by the type of content you promote and depend
on the average lifetime value (LTV) of the app’s user. Higher the LTV, higher
the CPD tends to be. For example, a travel app developer is usually willing
to pay much more to acquire a user, compared to the average game
developer, since the expected revenues from a loyal user can be much
higher, at times upwards of $100 USD. This reflects in the average CPDs we
notice on our network, with travel and financial service apps topping the
charts on CPDs bid on the network.

4229
4114

Automotive

580

Health & Fitness

262

Consumer Packaged
Goods

258

Mobile Content Wallpaper

152

Social

139

Business & Productivity

122

Books & Reference

112

Retail

100

Games

76

22

Telecom

1040

Note: Index is calculated using Games as a base

Financial Services

2091

Chart 12: CPD Index By Category, Q2 2013

Travel

Sports
APP INSIGHT REPORT

05

Market Spotlight: Taming
the Chinese Dragon
“Let China sleep, for when she awakes, she will shake
the world.” Napoleon
And indeed, she did just that! According to IDC, in February 2013, China overtook
the US to become the world’s largest smart device market, with 246 million devices
(against the US 230 million) and accounted for 26.5% of all smartphone shipments
last year.Concurrent with the growth in smart devices, mobile applications are also
growing at an astronomical rate. In addition, the falling price of the iPhone and the
increasingly capable low to mid-range Android handsets now available have further
propelled this growth. As attractive as the market may be, China is no easy beast to
tame!
Cultural barriers, piracy concerns, fragmented app distribution ecosystems and
the need for localization have prevented most app developers from entering this
market. The common perception that Chinese app users were not willing to pay for
content and that app usage levels were not high enough to warrant investments in
heavy marketing, have kept most developers away from China.

23
APP INSIGHT REPORT

Know Thy Users
For starters, there are several differences (and similarities, too) between the way
Chinese users behave in comparison to their counterparts. Here are the top 3
insights from our recent consumer research in China that can help you drive
downloads more effectively in this country.

1. Contextually recommended apps are the most
preferred by Chinese users.
Mobile Ads that Influence
app downloads

39%

Ads which recommend
specific apps for me,
based on website I am
browsing on my phone

42%

24%

Ads which include
multimedia content
such as games, audio &
pictures

28%

18%

Banner ads which
appear at the top of the
screen

24%

20%

A full screen ad which
appears briefly, while
the app is loading

19%

17%

A short video clip

14%

Survey Question: When Searching For Mobile Apps To Download, Which Types Of Advertisements On Your Mobile Phone Would Be The Most Helpful?

24
APP INSIGHT REPORT

2. If you want your users to download your app,
get your app featured on the Chinese App Store!

Factors that influence the
app download decision
57%

App featured by App Store

60%

50%

App Store reviews and rating

59%

48%

Description & screenshots

43%

41%

Price

33%

40%

App is ranked high on App Store chart

46%

37%

Recommendation from family and friends

26%

25%

Reviews from magazines and website

32%

Survey Question: What Factors Have The Biggest Influence When You Decide Whether To Download A Specific App?

25
APP INSIGHT REPORT

3. App Stores, mobile websites and recommendations
from friends and family are the top 3 ways in which
Chinese users discover apps.

App Discovery
55%

Browsing the App Store

54%

55%

Websites I access through my mobile phones

44%

33%

Recommendation from friends & family

23%

23%

Websites I access through laptop/desktop computer

30%

18%

Recommendation from social media (facebook, twitter, etc.)

12%

13%

Advertisments on my mobile phones

20%

10%

Magazines & newspapers

4%

None of these

3%

5%

Survey Question: How do you usually find new apps to download to your phone?

26
APP INSIGHT REPORT

Top 3 Tips to Win in the Chinese
App Market

01
02
03

Localize your app: While translating apps into simplified Chinese
is essential, localization should go beyond simple translation – it is
important to connect with users’ emotions and culture. Customizing
with Chinese avatars and timing app launches with Chinese festivals is
a good strategy.
Go freemium to beat piracy: Paid apps are quickly pirated in China
with up to 42% of Chinese iOS devices being jail broken and 17% of apps
copied or pirated. Overcome piracy by using a freemium monetization
model and by making frequent updates to your app.
List your app on the right stores: With over 500 stores, China has
one of the most complex and fragmented Android app store ecosystems
in the world. Carefully select the right app stores to reach the right
audience.			
The largest App Stores include Anzhi, AppChina, Gfan, Hiapk, Mobile
Market, Nduoa, Snappee, Tencent, Wandoujia, Baidu App Store, Opera
Mobile App Store, and Pandaapp.

For more insights on China and how to win in
this complex market, download our whitepaper
“What it takes to win in the Chinese App Market”

here.

27
APP INSIGHT REPORT

Glossary of Terms
1. CTR (Click Through Rate) = (Clicks/Ad Request)*100
2. CVR (Conversion Rate) = Downloads/Clicks
3. CPD (Cost per Download) = Total Burn/Downloads

28
APP INSIGHT REPORT

INMOBI OFFICE
OFFICE WITH CREATIVE TEAM

About InMobi
InMobi enables the world’s leading brands, developers, and publishers to engage
global consumers through mobile advertising. InMobi platforms leverage advances
in big data, user behavior, and cloud-based architectures to simplify mobile
advertising for its customers. Recognized by MIT Technology Review as one of the
50 Disruptive Companies of 2013, InMobi is the world’s largest independent mobile
ad network, engaging 691 million consumers across 165 countries.
To learn more, visit www.inmobi.com, follow us on Twitter @InMobi, or discover the
latest mobile insights at www.inmobi.com/insights/. Developers, start monetizing
instantaneously by downloading our SDK at www.inmobi.com/SDK.
29
APP INSIGHT REPORT

Contact Us:

Arun Pattabhiraman

Global Marketing Lead - Performance Advertising & App Developers, InMobi
email: arun@inmobi.com
For further queries on research, please write to research@inmobi.com.

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Tap into Tablets: 3 Tips for Maximizing App Downloads

  • 1. APP INSIGHT REPORT Simplifying Mobile APP INSIGHT REPORT Q3, 2013
  • 2. APP INSIGHT REPORT TABLE OF CONTENTS 01 InMobi App Insight Report, Q3 2013 02 Adding up the world : Global app promotion trends 03 Top Trends & insights to drive downloads effectively for your Apps 04 Glossary Creative Matters : Ad formats that work best for your app Bang on Target:  Sites you should target for maximum conversions Tips & Tricks to win on Tablets Cut costs without cutting corners Market Spotlight : Taming the Chinese Dragon
  • 3. APP INSIGHT REPORT InMobi App Insight report Q3 2013 As app developers, you’ve spent time designing, developing and delivering your app. Now you are on the brink of beginning the next important phase – acquiring users. But guess what, the mobile app ecosystem is a highly competitive marketplace. App developers constantly jostle for their niche in an already crowded market. Carving out that space is not easy unless you have the right tools of knowledge in your pocket and know what you need to, to be successful in this effort. This is where the InMobi App Insight report comes in. As part of the first edition of this report, we have analyzed thousands of app promotion campaigns that ran on our network. Following thorough number-crunching and indepth research, we present data that is visually arresting, quantitatively significant and vital to your app’s success. We’ve selected global data from Q2 2013 to arm you with knowledge of the top trends in app promotion campaigns that can help you effectively drive app downloads globally. Aligning your app with these insights will make your product stand out in the vast ecosystem and give your app that competitive edge! 01
  • 4. APP INSIGHT REPORT Adding up the world : Global App Promotion Trends Over 50 Million app installs were delivered on the InMobi network in 2013 YTD. InMobi continues to power millions of app installs for top developer studios and independent developers across the world. In Q2 2013, US continued to be the most favorite battleground for developers looking to drive downloads on our global ad network, with several of them also vying to tap into the high smartphone penetration and expansive mobile subscriber base that markets such as India, China and Japan represent. As more users get access to mobile media, large markets such as Indonesia are also becoming increasingly valuable for app developers, with the country holding the fifth spot on our top list of countries for app promotions. 02
  • 5. APP INSIGHT REPORT Network highlight: The top 5 countries accounted for over 60% of the overall app downloads 33.8% USA 9.5% India 9.1% Japan 7.7% China 4.6% Indonesia 4.2% South Korea 3.5% Canada 3.0% United Kingdom 2.5% Australia 2.4% Spain 2.1% France 1.9% Mexico 1.6% Germany 1.5% Italy 1.2% Brazil 1.1% Sweden 1.0% Thailand Chart 1: % of App Downloads By Country, Q2 2013 03
  • 6. APP INSIGHT REPORT Games represented the most downloaded app category on the InMobi network in Q2 2013 According to Juniper Research’s report, “Future App Store: Discovery, Monetization& Ecosystem Analysis 2013-2018,” gaming will fuel a sharp hike in app downloads with experts predicting that, in 2017, over 160 billion apps will be downloaded globally onto consumer handsets and tablets. The trends observed on the InMobi network are in tandem with this prediction, with games as a category representing 64% of the total apps downloaded through our network. 04
  • 7. APP INSIGHT REPORT 64.0% Games 11.3% Communication 6.8% 4.0% 2.7% 2.6% Telecom Entertainment eCommerce Business & Productivity 1.8% 1.1% 1.1% 0.9% Mobile Content & Others Social Consumer Packaged Travel 0.5% 0.4% 0.4% 0.3% Retail Health & Fitness Sports Education Chart 2: % of App Downloads By Category, Q2 2013 05
  • 8. APP INSIGHT REPORT Top trends & insights to drive downloads effectively for your apps 06
  • 9. APP INSIGHT REPORT 01 Creative Matters: Ad formats that work best for your app As a developer, you know that designing the right ad experience is crucial to grabbing the user’s attention and coaxing them to download your app. While simple banners continue to do this job quite well, mobile advertising today offers far more interesting options, ranging from rich media and interstitials to expandable ads and other unique ad formats. So which one do you pick for your app? 07
  • 10. APP INSIGHT REPORT 1a. Interstitials rule the roost Upto 25% Click through and 10% Conversions seen on interstitial ads on the InMobi network When it comes to promoting your app, we notice that there’s something almost magical about interstitial ads. Maybe it’s the way they expand to overtake your whole screen with a rich HTML5 image. Maybe it’s the way they demand attention in an era of quick glances and endless scrolling. While top game developers on the inmobi network have seen upto 25% click through and 10% conversion, this ad format is also seen to work very well for a wide range of content. On our network, we noticed average conversions as high as 8% for comics and 5.6% for health & fitness apps. 5.6% Health Music & Audio Productivity 5.0% 3.3% Tools 3.2% 3.0% 2.7% 2.1% 1.9% 1.7% News & 1.6% 1.0% Social & Fitness 8.0% Comics 2.1% Education 2.0% Books & References Weather Entertainment 5.2% Sports Magazines Games Media & Video Lifestyle Networking Chart 3: Average Conversion Rates On Interstitials Across App Categories – Q2 2013 08
  • 11. APP INSIGHT REPORT On Android, the average conversions on interstitial ads are almost double that of other ad formats 3.06% 1.65% 1.73% 1.99% 1.58% 1.40% 1.12% 0.63% Banner Ads Expandables Interstitials Text Ads Chart 4: Average Conversion Rates Across Ad Formats by OS, Q2 2013 Average Conversion Rates on iOS Average Conversion Rates on Android Quick Tip: For apps with short app sessions, static interstitials get the point across immediately and are found to be the most effective in driving engagement. On the other hand, for more engaging apps with longer app sessions, video interstitials deliver higher eCPMs. Static interstitials typically are observed to provide CTRs as high as 20% while video-interstitials are found to deliver superior ad engagement. 09
  • 12. APP INSIGHT REPORT 1b. Don’t do away with banners, just yet! Well, interstitials are the in thing - no denying that. But does that warrant doing away with good old banner ads? On InMobi’s network, we notice banners continue to work well for a wide range of non-gaming content on both iOS and Android. Chart 5: Conversion Rates On Banners Across Non Gaming Apps–By OS, Q2-2013 Software 3.3% 3.5% Software Weather 2.6% 2.8% Business Travel & Local 2.4% 2.5% Education Shopping 2.4% 2.2% Medical Medical 2.3% 2.2% Finance Tools 2.3% 2.2% Communication Business 1.8% 2.0% Catalogs Lifestyle 1.8% 2.0% Health & Fitness Productivity 1.8% 1.9% Tools Finance 1.7% 1.6% Weather News & Magazines 1.7% 1.5% Travel & Local Quick Tip: For any app promotion campaign, we recommend using a good mix of HD banners and interstitials to ensure you reach audiences on a wide variety of handsets. Also, rotating ad formats can reduce ad fatigue and help drive higher ad engagement.
  • 13. APP INSIGHT REPORT 02 Bang on Target: Sites you should target for maximum conversions The mobile consumer today shunts his presence on different mobile sites. So where do you find the right users for your app? In this report, we specifically analysed conversions for games, social and entertainment apps on iOS to understand which sites you should target to drive maximum installs while promoting your app. InMobi Insight: Almost all kinds of sites delivered good downloads on games suggesting that the audience for this category is diverse and widespread. Sports and health & fitness sites delivered maximum downloads for social apps. On the other hand, communication sites delivered the most downloads for entertainment apps. 11
  • 14. APP INSIGHT REPORT Chart 6: iOS CVR Index Across Site Category By Content, Q2 2013 Gaming Apps CVR Index Site Category 215 206 Sports 197 Tools 192 Travel & Local 157 Lifestyle 155 Shopping 150 Business 146 Productivity 137 Social Apps Weather Media & Video CVR Index Site Category 325 306 Sports 213 News & Magazines 141 Media & Video 118 Finance 101 Entertainment Apps Health & Fitness Tools CVR Index Site Category 409 205 Education 145 Sports 127 Media & Video 116 Catalogues 110 Weather 100 Note: Index calculated with gaming category as a base. Communication Games
  • 15. APP INSIGHT REPORT 03 Tips & Tricks to win on Tablets “Over 1,146 unique app download campaigns ran across the InMobi network on tablets, i.e., one out of every three app promotion campaigns on the network also ran on tablets.” 13
  • 16. APP INSIGHT REPORT Why Advertise on Tablets? Exponentially Expanding High Quality User base 2011 28.3M 2012 74.1M In tier 1 cities every user will own a tablet by the end of 2013, generating 3x more download revenue than smartphones 2013 126.2M Source: A Potrait of Today’s User Wave II, OPA, June 2012 Tablet Owners More Engaged Users Garnering a significant amount of timeshare due to higher user engagement, tablets are the most preferred medium to consume media = 90 Mins = 58 Mins = 50 Mins Source: Pew Research, 2012 Phones 3x Tablets Higher Inclination To Consume Ads Users are at least 3x more open to consuming ads on tablets compared to smartphones CTR 14 Source: The Adfonic AdSnap Tablets, Q1 2013
  • 17. APP INSIGHT REPORT Apple still leads the pack, but Android tablet usage is catching up Tablets & connected devices accounted for 14.1% of total impressions on the InMobi network in Q2 2013, with Apple remaining the top manufacturer in tablet category with the largest share of impressions. Device Share of Impressions, Q2 2013 65.0% 21.0% 14.1% -0.9 Smartphones +0.2 Tablets & Connected Devices +0.7 Feature Phones Chart 7 : Device Share Of Impressions, Q2 2013 Q2 2013 Q1 2013 + - Percentage point change since Q1 2013 15
  • 18. APP INSIGHT REPORT Top Tablet Manufacturers, Q2 2013 53.9% Apple 28.4% Samsung 4.1% Amazon 3.0% Google 2.1% Acer 1.2% Asus 16
  • 19. APP INSIGHT REPORT 15.4% 7.7% Chart 8: Top Countries in terms of Tablet Usage on InMobi Platform, Q2 2013 6.9% 4.3% 4.0% 3.2% USA China Thailand United Indonesia Kingdom Galaxy Galaxy Galaxy iPad Tab 2 7.0 Tab 2 10.1 Note 10.1 3.6% Japan 3.0% 2.9% 2.9% France Russian Federation Saudi Arabia Galaxy Galaxy Kindle Fire Kindle Nexus 7 Tab 10.1 Tab HD 7 Fire 2.9% 2.1% 1.8% 1.6% 1.2% 2.8% Malaysia Galaxy Tab 7.0 Kindle Plus Fire 7 1.0% 1.0% 7.6% 10.2% 53.9% Chart 9: Top Tablet Devices By Impressions On Inmobi Platform, Q2 2013 17
  • 20. APP INSIGHT REPORT Ads that work well on tablets Consumers are increasingly utilizing tablets for shopping, game play and communication. The same optimized banner ad on a tablet app may perform completely different from an ad on a smartphone app. Knowing your target demographic on tablets or smartphones and what type of ads they engage with the most is crucial to designing an effective app promotion strategy on tablets. A quick comparison between tablet CTRs and average ad network CTRs reveal that text ads don’t work well on tablets. However, interstitial ads deliver solid results with almost 46% higher CTR for tablet campaigns. Tablet CTR vs. Network CTR (% increase/decrease) 46.0% 23.0% 13.0% -37.0% Text Ads Interstitial Rich Media Ads Chart 10: Tablet CTR vs. Network CTR Across Ad Formats, Q2 2013 +/-(% increase/decrease) 18 Banner Ads
  • 21. APP INSIGHT REPORT Top 3 tips to make your tablet campaigns work: 01 02 03 Leverage the real estate: Take the effort to optimize your ad size for tablets. Tablet optimized ads tend to deliver 3x higher conversions and ROI .InMobi recommends using the 728×90, 300×250 , and 468×60 slot sizes for best results on your tablet campaign. Bid at the right price: Tablet users tend to have higher LTV, and are on average, better spenders as well. This increases demand for tablet advertising and most advertisers are already bidding more. InMobi recommends that you bid about 1.5 – 2x more on tablets to hit the scale that you want. Mix and match: High definition ad formats match perfectly with the highresolution display of tablets, creating a deeply engaging experience for users. InMobi recommends rotating between HD banners, Interstitials and video ads to reach your users in the most optimal way. 19
  • 22. APP INSIGHT REPORT 04 Cut costs without cutting corners Agreed it’s a competitive marketplace out there. You don’t know your user’s Lifetime Value (LTV) and can’t decide how much to spend on acquiring users. But not all apps are created equal. Depending on what kind of app you have built and the country you target, the cost to drive a download ( CPD) could vary significantly. 20
  • 23. APP INSIGHT REPORT Indexed against the costs in the US, our research indicates that driving a download in most markets, especially in China, Japan and Korea is relatively cheaper in comparison to the US market , with the UK representing the most expensive markets and India the least Expensive. 174 United Kingdom 127 Australia 100 USA 95 New Zealand 87 Malaysia 84 South Korea 84 Vietnam 81 Japan 77 Hong Kong 75 France 71 Singapore 60 China 56 Germany 40 India Chart 11: CPD Index By Country, Q2 2013 Note: Index calculated using USA as base 21
  • 24. APP INSIGHT REPORT CPDs also vary drastically by the type of content you promote and depend on the average lifetime value (LTV) of the app’s user. Higher the LTV, higher the CPD tends to be. For example, a travel app developer is usually willing to pay much more to acquire a user, compared to the average game developer, since the expected revenues from a loyal user can be much higher, at times upwards of $100 USD. This reflects in the average CPDs we notice on our network, with travel and financial service apps topping the charts on CPDs bid on the network. 4229 4114 Automotive 580 Health & Fitness 262 Consumer Packaged Goods 258 Mobile Content Wallpaper 152 Social 139 Business & Productivity 122 Books & Reference 112 Retail 100 Games 76 22 Telecom 1040 Note: Index is calculated using Games as a base Financial Services 2091 Chart 12: CPD Index By Category, Q2 2013 Travel Sports
  • 25. APP INSIGHT REPORT 05 Market Spotlight: Taming the Chinese Dragon “Let China sleep, for when she awakes, she will shake the world.” Napoleon And indeed, she did just that! According to IDC, in February 2013, China overtook the US to become the world’s largest smart device market, with 246 million devices (against the US 230 million) and accounted for 26.5% of all smartphone shipments last year.Concurrent with the growth in smart devices, mobile applications are also growing at an astronomical rate. In addition, the falling price of the iPhone and the increasingly capable low to mid-range Android handsets now available have further propelled this growth. As attractive as the market may be, China is no easy beast to tame! Cultural barriers, piracy concerns, fragmented app distribution ecosystems and the need for localization have prevented most app developers from entering this market. The common perception that Chinese app users were not willing to pay for content and that app usage levels were not high enough to warrant investments in heavy marketing, have kept most developers away from China. 23
  • 26. APP INSIGHT REPORT Know Thy Users For starters, there are several differences (and similarities, too) between the way Chinese users behave in comparison to their counterparts. Here are the top 3 insights from our recent consumer research in China that can help you drive downloads more effectively in this country. 1. Contextually recommended apps are the most preferred by Chinese users. Mobile Ads that Influence app downloads 39% Ads which recommend specific apps for me, based on website I am browsing on my phone 42% 24% Ads which include multimedia content such as games, audio & pictures 28% 18% Banner ads which appear at the top of the screen 24% 20% A full screen ad which appears briefly, while the app is loading 19% 17% A short video clip 14% Survey Question: When Searching For Mobile Apps To Download, Which Types Of Advertisements On Your Mobile Phone Would Be The Most Helpful? 24
  • 27. APP INSIGHT REPORT 2. If you want your users to download your app, get your app featured on the Chinese App Store! Factors that influence the app download decision 57% App featured by App Store 60% 50% App Store reviews and rating 59% 48% Description & screenshots 43% 41% Price 33% 40% App is ranked high on App Store chart 46% 37% Recommendation from family and friends 26% 25% Reviews from magazines and website 32% Survey Question: What Factors Have The Biggest Influence When You Decide Whether To Download A Specific App? 25
  • 28. APP INSIGHT REPORT 3. App Stores, mobile websites and recommendations from friends and family are the top 3 ways in which Chinese users discover apps. App Discovery 55% Browsing the App Store 54% 55% Websites I access through my mobile phones 44% 33% Recommendation from friends & family 23% 23% Websites I access through laptop/desktop computer 30% 18% Recommendation from social media (facebook, twitter, etc.) 12% 13% Advertisments on my mobile phones 20% 10% Magazines & newspapers 4% None of these 3% 5% Survey Question: How do you usually find new apps to download to your phone? 26
  • 29. APP INSIGHT REPORT Top 3 Tips to Win in the Chinese App Market 01 02 03 Localize your app: While translating apps into simplified Chinese is essential, localization should go beyond simple translation – it is important to connect with users’ emotions and culture. Customizing with Chinese avatars and timing app launches with Chinese festivals is a good strategy. Go freemium to beat piracy: Paid apps are quickly pirated in China with up to 42% of Chinese iOS devices being jail broken and 17% of apps copied or pirated. Overcome piracy by using a freemium monetization model and by making frequent updates to your app. List your app on the right stores: With over 500 stores, China has one of the most complex and fragmented Android app store ecosystems in the world. Carefully select the right app stores to reach the right audience. The largest App Stores include Anzhi, AppChina, Gfan, Hiapk, Mobile Market, Nduoa, Snappee, Tencent, Wandoujia, Baidu App Store, Opera Mobile App Store, and Pandaapp. For more insights on China and how to win in this complex market, download our whitepaper “What it takes to win in the Chinese App Market” here. 27
  • 30. APP INSIGHT REPORT Glossary of Terms 1. CTR (Click Through Rate) = (Clicks/Ad Request)*100 2. CVR (Conversion Rate) = Downloads/Clicks 3. CPD (Cost per Download) = Total Burn/Downloads 28
  • 31. APP INSIGHT REPORT INMOBI OFFICE OFFICE WITH CREATIVE TEAM About InMobi InMobi enables the world’s leading brands, developers, and publishers to engage global consumers through mobile advertising. InMobi platforms leverage advances in big data, user behavior, and cloud-based architectures to simplify mobile advertising for its customers. Recognized by MIT Technology Review as one of the 50 Disruptive Companies of 2013, InMobi is the world’s largest independent mobile ad network, engaging 691 million consumers across 165 countries. To learn more, visit www.inmobi.com, follow us on Twitter @InMobi, or discover the latest mobile insights at www.inmobi.com/insights/. Developers, start monetizing instantaneously by downloading our SDK at www.inmobi.com/SDK. 29
  • 32. APP INSIGHT REPORT Contact Us: Arun Pattabhiraman Global Marketing Lead - Performance Advertising & App Developers, InMobi email: arun@inmobi.com For further queries on research, please write to research@inmobi.com.