The blueprint for app growth in Redefining the Mobile Mentality
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1 The blueprint for app growth in 2017 Redefining the Mobile Mentality 1
2 What we do We help our clients win their mobile market through app store intelligence and ASO tools. We provide download, revenue, consumer ratings, and keyword data for any relevant: Geography / Industry Publisher App 2
3 How we do it We collect information on more than 4mm apps via direct crawling of app stores and devices. We query ~100 billion data objects per week. We receive proprietary data feeds from more than 20,000 apps which give us an ability to model and estimate the performance of the broader app population. 3
4 What we answer How did Snapchat perform in the months leading up to their IPO? 4
5 What we answer What do iphone users download most in Germany? 5
6 What we answer Which apps get downloaded when an iphone user searches for march madness on their device? 6
7 Agenda 1. Macro Trends in the Duopoly 2. What s the Problem? 3. The Mobile Mentality 4. Analytics - from Laggards to Leaders 5. Blueprint for Growth - What do the companies that consistently succeed do differently? 7
8 About The Data The data in this presentation covers the Google Play Store and The Apple App Store. Global data is the sum of the 55+ countries we cover. For the sake of being able to compare apples to Apple, we have excluded China. Revenue data is presented net of the 30% store tax. 8
9 Macro trends in the Duopoly 9
10 Year on Year Growth, ios & Google Play: Apps ios Google Play +3.7% +6.9% +13.3% +22.2% Data in billions. Excludes China. 10
11 Year on Year Growth, ios & Google Play: Games ios Google Play +4.5% +3.0% Data in billions. Excludes China % +2.6% 11
12 Global Revenue Growth by Category ios Categories outside of gaming are showing strong revenue growth year-on-year Indicates an increased consumer willingness to pay for service delivered through mobile phones Bubble size indicates absolute revenue growth in $ millions. Excludes China 12
13 Fastest Growing and Largest Absolute Growth Categories are Highly Concentrated Globally ios - Entertainment ios - Lifestyle 2016 Revenue ($ millions) Share of Category (%) % HBO Now 72 15% Hulu 41 Colouring Book Colorfy App Netflix SHOWTIME Top Revenue ($ millions) Share of Category (%) Tinder 59 38% Happn 3 2% 8% Match.com 3 2% 11 2% Bumble 3 2% 6 1% PURE 2 2% % Top % Data in millions. Excludes China. App 13
14 What are consumers searching for? 14
15 Consumers are mostly looking for well known brands/apps: Only 12 of the 100 most frequent search terms in the US App Store in March were generic terms 15
16 Top ios search terms, US, March Generic Search Term Popularity Score (1-100) Branded Search Term Popularity Score (1-100) Games 88 Instagram 100 vpn 84 Snapchat 100 text free 79 Facebook 98 music 79 Youtube 96 car games 78 Tinder 92 pic collage 78 Messenger 92 march madness bracket 78 Kik 92 ncaa march madness live 78 Twitter 91 calculator 77 Uber 90 video editor 76 Whatsapp 89 weather 76 Spotify 89 march madness live 76 Google 89 16
17 So What s the problem?? 17
18 In the week of March 19-25th 4,289 companies published at least one new ios app in the Apple App Store. 18
19 How many of these companies got: more than 1,000 installs 19
20 How many of these companies got: more than 1,000 installs 189 (4%) 20
21 How many of these companies got: more than 1,000 installs more than $1,000 revenue 189 (4%) 21
22 How many of these companies got: more than 1,000 installs more than $1,000 revenue (4%) (0.4%) 22
23 Why is this happening? 23
24 Let s talk about the #mobile #mentality 24
25 Let s talk about the #mobile #mentality It is short-term and opportunistic. 25
26 Why? Let s follow the money! 26
27 Store owners and the media communicate more-or-less standout growth while constantly hyping the next big trend: Search Ads! / Streaming Apps! / Instant Apps! / Subscriptions! / Messenger Bots! / AR, VR! / IOT! 27
28 Developers have 99 problems, but finding an ad-network that can delivery the best quality traffic ain t one. And the networks have a synergistic love-hate relationship with... 28
29 Attribution / Measurement Analytics companies that promise you can perfectly track your performance and... hyper-optimize your growth (in real-time!!!) 29
30 This dynamic feeds an aggressive and advertising-centric narrative in mobile... 30
31 ...which reinforces the obsession for internal data and short-term thinking. 31
32 Shifting to a Long-Term Mobile Mentality 32
33 AT Kearney: Four Levels of Analytics Institutions 8% 27% 41% 24% 33
34 The Paradox in Mobile Established companies that can afford analytics and strategy departments for other areas of their business, generally don t have the required knowledge about mobile. Emerging companies that have grown up as mobile natives, don t recognize the importance or don t believe they can t afford to take a long-term view. 34
35 Example: Caixa Bank 27 ios apps Separate apps for importing checks and paying bills! 35
36 Example: Volkswagen 75 ios apps (just in this account) Average download/app is less than 1k/month 3rd best performing app not been updated since
37 Counterexample: Next Keyboard 37
38 Not all apps fail, so what characterizes those that succeed? 38
39 We looked at our most successful clients and partners and saw 4 commonalities: 1. They have failed before 2. They didn t want to or couldn t afford to fail again 3. They have an above average appreciation of data and an increased willingness to invest in analytics (talent and tools) 4. They are laser focused on what they can control 39
40 First, an organizational commitment to a long-term mobile mentality: Step 3: Transform Step 1: Talent Invest in hiring and training of trilingual talent Step 2: Tools & Partners Acquire the necessary tools and partners for both short-, mediumand long-term growth. Leverage the people and data to impact every aspect of your app business - from product to marketing. 40
41 Next, they execute a growth plan with a long-term view that balances paid and organic strategies, informed by data 41
42 They Identify and Quantify the Opportunity How are similar apps/games performing? 42
43 They Identify and Quantify the Opportunity Which countries are growing? 43
44 They Identify and Quantify the Opportunity Which countries are growing? 44
45 They Analyse Local Search Trends Apps that take a data-driven approach to ASO rank for 2-4x more keywords 45
46 They Identify and Quantify the Opportunity They set realistic benchmarks: Shopping, ios, Germany: ~3 Million monthly downloads 46 apps get >10k downloads/month To rank in the top 20, you need ~1k installs/day Avg. cost of acquiring a user: $2.37 (Chartboost) Required investment to remain in top 20 (assuming you acquire 50% of users): $1,185/day 46
47 Companies that succeed in 2017 and beyond will: Be aware that the discourse in the mobile industry is driven by organizations that want you to invest in paid user acquisition. Counterbalance this trend by empowering your organization with knowledge and data: hire (or train) the right people and equip with the right tools and the mandate to adopt a long-term mobile growth mentality. 47
48 Thank you! Patrick Kane Founder 48
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