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— R E T R O S P E C T I V E — Table of Contents Key 2017 Stats 3 The App Economy Pushed New Boundaries in 2017 7 Finance Apps 18 Retail Apps 28 Video Streaming 39 Travel Apps 46 Gaming 55 Social 63 China 71 Ranking Tables 79 Globally in 2017 DOWNLOADS EXCEEDED CONSUMER SPEND EXCEEDED EACH USER SPENT NEARLY 175 $86 1.5 BILLION BILLION MONTHS IN APPS PER YEAR +60% +105% +30% GROWTH FROM 2015 GROWTH FROM 2015 GROWTH FROM 2015 3 COPYRIGHT 2018 The Company & Technology Confidently Navigate the Entire App Lifecycle with Behind the Report App Annie Intelligence DISCOVER App Annie helps companies build better app OPPORTUNITIES businesses and is used by 94 of the top 100 publishers across the globe. From competitive benchmarking to international expansion, we deliver the data and insights needed to succeed in the app economy. ACCELERATE DEVELOP BETTER The information contained in this report is REVENUE STRATEGIES compiled from App Annie Intelligence, the leading market data solution for the app economy. To see how our app data for DRIVE DEEPER OPTIMIZE USER download, revenue, demographic and usage ENGAGEMENT ACQUISITION estimates and ASO visibility can help guide your critical business decisions, sign up for a free account today. The industry’s trusted global app market data. Cutting edge insights. One Integrated platform. 4 COPYRIGHT 2018 App Annie Is the Most Trusted Partner in the App Economy 5 COPYRIGHT 2018 Over 1,000,000 registered users rely on App Annie for app market data. 6 COPYRIGHT 2018 The App Economy Pushed New Boundaries in 2017 7 COPYRIGHT 2018 App Markets Continue to Mature, Bringing Increased Monetization Opportunities Emerging markets such as India and Brazil are in the early stages of app maturity. Vast download numbers are driven by new smartphone owners discovering and experimenting with new apps. Volume In mature markets, apps have become central to users’ lives. Early adopter behavior (as seen in emerging T1-2 Cities markets) has stabilized, while engagement and spend continues to climb as users settle into their go-to apps. China is a tale of two markets. Tier 1 cities, such as Beijing and Shanghai, and tier 2 cities, such as Hangzhou and Chengdu, have reached advanced levels T3+ Cities & Rural of app maturity and are generating significant revenue for app publishers. Lower tier cities and rural areas are Time still in the process of adopting mobile, resulting in explosive download growth and creating massive future App Revenue App Usage Downloads revenue potential as the market matures. 8 COPYRIGHT 2018 Global App Downloads Surpassed 175 Billion in 2017 Total Downloads* Worldwide Users downloaded 60% more apps in 2017 200 than in 2015. This equates to nearly 2 apps 175 downloaded every month per human being on the planet. 150 As apps become an increasingly critical channel 125 for virtually all consumer businesses in all 100 industries, we have seen the number of apps available across Google Play and the iOS App 75 Store expand to more than 6 million. Downloads (Billions) 50 In response, app marketing, particularly app 25 store optimization and paid user acquisition, has become increasingly critical for those 0 2015 2016 2017 looking to stand out. *iOS App Store, Google Play and third-party Android stores combined 9 COPYRIGHT 2018 India Overtook the United States to Become the Number 2 Country by Downloads in 2017 Top Countries by 2017 Downloads* Four of the top five countries by downloads are 100 emerging markets. As these markets continue to mature, the opportunity to monetize will be massive. 80 App usage grew rapidly in India, driven by the China 60 introduction of subsidised, unlimited 4G access by India Jio in September 2016. United States 40 Brazil Despite growth stabilizing, we’re still seeing a Downloads (Billions) Russia significant volume of absolute downloads in mature markets. For example, in the United States, on 20 average, users downloaded three apps per month, with over 70% of users downloading at least one app 0 per month. 2015 2016 2017 *iOS App Store, Google Play and third-party Android stores combined 10 COPYRIGHT 2018 Consumer Spend in App Stores Total App Store Gross Consumer Spend* Exceeded $86 Billion in 2017 Worldwide 100 Total consumer spend through Google Play, the iOS App Store and third-party Android stores has more than doubled over the past two years to over $86B. 80 Consumer spend growth will be driven by strong 60 smartphone and app adoption in developing economies and apps’ ability to capture greater share of wallet in mature economies. USD (Billions) 40 Consumer spend in app stores exceeded: 20 • Worldwide Live and Recorded Music Revenue by 70% 0 • Global Box Office Revenue by 195% • PC/Console Gaming Revenue by 70% 2015 2016 2017 *iOS App Store, Google Play and third-party Android consumer spend combined; inclusive of app stores’ cut of consumer spend. Does not include advertising or eCommerce revenue 11 COPYRIGHT 2018 Monetization in Top Top Countries by App Store Gross Consumer Spend* Markets Maintained Its Steep Growth $35 $30 Top markets have seen double digit percentage $25 growth in consumer spend over the last two years. China $20 United States Revenue powerhouse China was by far and away Japan the largest market by consumer spend, with USD (Billions) $15 South Korea growth continuing to accelerate. United Kingdom $10 We expect this trend to be repeated in other $5 emerging markets such as Russia, Brazil and Southeast Asia. $0 2015 2016 2017 *iOS App Store, Google Play and third-party Android Stores combined; inclusive of app stores’ cut of revenue 12 COPYRIGHT 2018 Monthly Average Number of Apps Used and Installed User Engagement Hit New Smartphone* Users in Select Markets, 2017 Heights With Average India Smartphone User Accessing China Close to 40 Apps per Month Brazil Indonesia In most markets analyzed, the average smartphone South Korea user has more than 80 apps on their phone and uses United States close to 40 of them each month. This roughly equates to between one-third and one-half of the Germany apps on users’ phones used each month on average. France United Kingdom This level of app engagement will result in more Japan contact with customers, increased customer satisfaction and higher lifetime value (LTV). Mexico Number of Apps Apps Used Total Apps on Phone *iPhone and Android phone combined 13 COPYRIGHT 2018 Consumers Spend Nearly 3 Hours in Apps Each Day on Average* Markets analyzed averaged nearly Average Minutes Per Day in Apps in Select Markets** 30% growth in average daily time spent in apps vs 2015. Apps’ Mature Markets share of consumer attention continues to grow and has become the most critical channel Emerging Markets for customer interactions. Higher use is emerging in Minutes Per Day mobile-first markets. Mobile is SK US UK truly the first screen in these India Brazil Japan Turkey Russia Mexico France Germany markets as many users have Indonesia skipped the desktop generation entirely. 2015 2016 2017 *Weighted average among select markets **On Android phone 14 COPYRIGHT 2018 Worldwide App Engagement Is Well Above Mobile Web Across Mature and Emerging Markets, More Time is Spent in Native Apps than in Mobile Web Browsers In select markets, our analysis shows that smartphone users spend 7x Breakdown of Time Spent* in Apps in Select Markets, 2017 more time in native apps than in mobile browsers, and tend to access them 13x more often. This presents Worldwide Average a big opportunity for businesses. Mobile Some successful businesses are now Browsers seeing more than half of their sales Apps come through mobile channels, and app users specifically convert at 3x Mexico Brazil South Germany Indonesia India United Turkey France United Japan Russia the rate of mobile web users. For Korea States Kingdom example, nearly 50% of UK online sales for Domino’s comes through its Mature Markets Emerging Markets *On Android phone app, and easyJet’s app handled 20% of its bookings by its fifth anniversary. 15 COPYRIGHT 2018 "This year, we have improved our mobile user experience using artificial intelligence technology. For example, we launched ‘Smart Lens’ and ‘Shopping Lens’ based on visual search technology. The personalized product recommendation system, ‘AiTEMS,’ was also added to our shopping experience. Over the last two years, Naver has seen 25% growth in its smartphone monthly active users, compared to Q4 2015. In addition, we are continuing our effort to upgrade the technology and content for global entertainment apps such as V Live and Naver Webtoon.” Quote provided to App Annie by Naver 16 COPYRIGHT 2018 Further Reading From This Section Grow your business with ● Top Predictions for the App Economy in 2018 the leader in app market ● Key App Metrics: Understanding Install Penetration & data and analytics Open Rate ● App Annie Intelligence ● Why Your Mobile Strategy Needs an App App Annie Intelligence provides accurate app market data and insights for millions ● Global App Downloads & Consumer Spend Hit Record of apps across the globe. Sign up for free now Levels: Q3 2017 Recap ● ● App Annie Connect ● New App Usage Report: How Many Apps Do Users App Annie Connect gives you a full view of your app performance. Consolidate all Install a Month? your app store, usage and advertising data in one unified dashboard. ● Discover the Countries Leading in App Usage Sign up for free now ● App Annie 2016 Retrospective — Mobile’s Continued Momentum APP ANNIE 17 COPYRIGHT 2018 Finance Apps: Mobile Disrupts Traditional Banking & Financial Services 18 COPYRIGHT 2018 Finance App Adoption Is Gaining Momentum More Financial Interactions Are Happening on Mobile Platforms, Significantly Outpacing Growth in Apps Overall in the Markets Below Percentage Growth in Finance App Downloads* Mobile apps have accelerated the digital in Select Markets, 2017 vs 2015 transformation of the personal finance space.
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