Millennial Media's 2014 State of the Apps Report Millennial Media's State of the Apps report takes a closer look into the app economy. Through a survey of app developers and publishers, this report features insights into monetization trends, as well as developers' goals and priorities for last year and this coming year. The report also captures what developers are designing for and the platforms on which they see their impressions.

1. STATE
OF THE
APPS
INDUSTRY SNAPSHOT
2014

2. STATE
OF THE
APPS
MOBILE DEVELOPER SNAPSHOT
In Q4 2013, we ran a global survey of application developers and publishers in order to get a pulse on the app
economy. A summary of the results from the survey are analyzed in the following report, including characteristics,
practices, goals, priorities, and intended plans of developers for 2014.
Global Developer Locations
A geographically diverse mix of publishers and developers responded to our survey, most of which see impressions from all over the world.
41% of developers are located in either North or South America, followed by 30% in EMEA and 28% in Asia. The breakout of where each region
sees impressions is shown in the charts below.
4%
1%
6%
13%
11%
Located in
Located in
AMERICAS
41%
47%
82%
EMEA
8%
41%
27%
Located in
APAC
30%
28%
52%
8%
Source of Impressions:
North America
APAC
EMEA
South America
Source: Millennial Media, Q4 2013
Company Sizes
Number of Applications
Over 80% of developers currently develop on their own or for
a smaller organization (one to nine employees). The overall
sizes of these companies are expected to increase next year
as more of these long-tail developers plan to hire onto their
teams and grow in size.
In 2014, developers expect to increase the number of
applications they publish. In fact, 60% expect to have five or
more apps in an app store next year, up from 36% this year.
I develop on my own
1
2-9
2-4
10 - 50
5 or more
More than 50
None, but currently
developing an app
0%
Currently in 2013
10%
20%
30%
Planning for 2014
40%
50%
60%
70%
80%
Source: Millennial Media, Q4 2013
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0%
Currently in 2013
10%
20%
Planning for 2014
30%
40%
50%
60%
Source: Millennial Media, Q4 2013

3. STATE
OF THE
APPS
DEVELOPER CHARACTERISTICS
Looking back... in our 2010 State of the Apps survey, the operating systems developers and publishers designed for
looked very different than the results of our 2013 survey. In 2010, only 23% of developers said they were publishing for
Android, compared to now 80% in 2013.
OS Mix
Application Category Mix
When looking at the major operating systems developers publish
for, developers often design for more than one platform. Their
apps are not mutually exclusive to one device or operating
system. Some other trends we see are that:
Games are currently, and will continue to be, the most popular
category of application, followed by Productivity & Tools and
Music & Entertainment apps. While developers expect to
increase the number of apps they publish in 2014, there is not
as much expected change in the category of future app
development. Developers are sticking to what they know.
Android is the most common operating system developed for,
with 80% of developers publishing on Android last year. 41%
of those that develop for Android also do so for iOS.
iOS is the second most common operating system, with 64%
of developers planning to develop for iOS in 2014. 67% of
those that develop for iOS also do so for Android,
growing to 78% in 2014.
Growth on all of these operating systems suggests that
developers are planning to take their apps to as many platforms
as possible to be accessible to the largest amount of mobile users.
Looking deeper, trends suggest that 65% of Games developers
develop on their own, while Sports developers are nearly twice
as likely to be part of a larger company.
Games
News
Weather
Music & Entertainment
Android
Social Networking
iOS
Sports
BlackBerry
Travel
Windows
Communications
Mobile Web
Productivity & Tools
Other
Other
0%
Currently in 2013
20%
40%
60%
Planning for 2014
80%
100%
Source: Millennial Media, Q4 2013
0%
Currently in 2013
5%
10%
Planning for 2014
15%
20%
Source: Millennial Media, Q4 2013
Across all of the types of applications and operating systems,
74% OF DEVELOPERS BUILD UNIVERSAL APPS,
those that can run on either a smartphone or a tablet. The remainder are
designing platform-specific (tablet and/or smartphone only) apps.
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25%

4. STATE
OF THE
APPS
MOBILE DEVELOPER
MONETIZATION TRENDS
2014 Goals
2014 Strategies
The primary goal in 2014 for 56% of developers will be to
develop new applications. This, along with maximizing
revenue and improving discovery/downloads of their
current apps, were chosen as the top three goals for
developers in 2014.
Developers indicated that revenue, user feedback and ratings,
and the number of app downloads are their most important
strategies heading into 2014. For companies with less than 10
employees, revenue was the biggest focus area for 2014,
while for larger companies, the focus will be on gaining user
feedback and app store ratings.
5% 2%
6%
6%
9%
31%
15%
23%
56%
16%
31%
Developing new applications
Maximizing revenue
Improving discovery/downloads
Finding new distribution channels
Marketing and/or advertising
Learning a new programming language
Driving revenue
Gaining user feedback/ratings
Increasing number of app downloads/shares
Increasing monthly average users
Increasing rank in app store
Source: Millennial Media, Q4 2013
Source: Millennial Media, Q4 2013
Monetization Mix
Currently, 83% of developers are monetizing their apps. Of this
83%, most make their money from advertising (73%), followed
by paid app downloads (45%). Of the 17% of developers who
don’t currently monetize their apps, 46% expect to do so in 2014.
90%
of developers say more than half
of their apps are supported by ads.
56%
80%
70%
60%
expect the percentage of revenue from
in-app advertising to go up in 2014.
50%
40%
30%
20%
10%
0%
Advertising
Paid app
downloads
In-app / virtual
goods purchases
Source: Millennial Media, Q4 2013
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88%
of in-app ads can accommodate
rich media and/or video.

5. SUMMARY & REPORTING
METHODOLOGY
STATE
OF THE
APPS
Report Methodology
The insights here are based on a survey run by Millennial Media of application developers and publishers. The survey ran from
November 1, 2013, through November 30, 2013. N=351.
About Millennial Media
Millennial Media is the leading independent mobile advertising platform. The Company’s unique data asset and full technology stack
enable its demand and supply-side clients to garner meaningful results to drive their business. Based on its mobile-first approach to data,
technology, and audience targeting, Millennial Media is leading the market by connecting consumers with relevant messages across
screens. For advertisers looking to reach and engage with consumers in powerful ways, Millennial Media offers a broad array of solutions,
delivered through brand, performance, and programmatic approaches. For developers and publishers, the Company offers a
comprehensive set of managed and automated services to maximize revenue.
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