apps white papers

WHAT ARE APPS?Apps are small computer programs built specifically for mobile devices. There are apps for almost any situation available and can cost anywhere from free to $100 or more, however most cost a dollar or two. Most apps are downloaded from the Apple App store or Android Play Marketplace. Apps functions generally can fall into one of 3 categories: Content Creation, Content Consumption and Games, with some overlap.

APPS.Last Updated: 7/23/2012

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TABLE OF CONTENTS

INTRODUCTION TO APPS 4 — How people are using their phone 5 — App downloader demographics 6 — Operating system app preferences

KINDS OF APPS 8 — App categories 9 — App categories popularity 10 — Most populous app categories 11 — Use of apps after first download by category 12 — Engagement with apps over time by category 13 — Growth in app downloads by operating system 14 — Increase in available apps by operating system store

APPS AND PRICE 16 — The price of apps 17 — Free apps v. purchased apps 18 — App usage over time paid v. free 19 — Downloads by cost and category 20 — App engagement paid v. free

OTHER STATS 22 — App development: a gamble 23 — App development: platform 24 — Cost per loyal user 25 — Windows apps

INTROTOAPPS

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SOME BASIC INFORMATION ABOUT APPLICATIONS FOR MOBILE DEVICES.

HOW PEOPLE USE THEIR PHONESTowards the end of 2011, Nielsen performed a survey of smartphone owners to how they actually used their phones. The results showed that 53% of phone time is spent using Apps.

1%

Camera2%

Music/Video

4%

Maps/Location

5%

Email/IM 5%

Social Networking

6%

Phone

10%

Browser

14%

Texting

53%

Apps

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GENDER

APP DOWNLOADER DEMOGRAPHICS

57%MALE

43%FEMALE

41%< $50,000

37%$75,000

15%$50,000-$74,999

INCOME

47%18-29

39%30-49

14%50+

AGE

25%HIGH

SCHOOLGRAD

38%COLLEGE

GRAD

29%SOME

COLLEGE

8%<

HIG

H S

CH

OO

L

EDUCATION

http://blog.nielsen.com/nielsenwire/consumer/consumers-ok-with-ads-if-the-apps-are-free/http://www.slideshare.net/PewInternet/the-state-ofmobileamericanfais

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OPERATING SYSTEM APP PREFERENCEMobile users have somewhere between 10 and 300 apps on their devices. The average Android device user has about 22 apps on their devices (in addition to the pre loaded ones) while Android users specifically have an average of 33 apps on theirs devices.

ALL PHONES AVERAGE

ANDROID iOS

http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats#mobile-app-storeshttp://blog.nielsen.com/nielsenwire/mediauniverse/

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KINDS OF APPS

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INFORMATION ABOUT THE DIFFERENT CATEGORIES OF APPS AND USERS’ PREFERENCES FOR DIFFERENT KINDS OF APPS.

BOOKS EDUCATION GAMES ENTERTAINMENT

SOCIAL NETWORKING

PHOTOS & VIDEOS MUSIC SPORTS

NEWS UTILITIES BUSINESS & FINANCE LIFESTYLE

REFERENCE TRAVEL PRODUCTIVITY HEALTH & FITNESS

APP CATEGORIESApps are organized into between 16-20 apps based on the operating system (Apple, Android or Windows).

http://blog.flurry.com/?Tag=Usage%20Statistics

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BOOKS

23%

of user downloads

EDUCATION

18%

of user downloads

GAMES

68% of user downloads

ENTERTAINMENT


SOCIAL NETWORKING


PHOTOS & VIDEOS


MUSIC


SPORTS


NEWS


UTILITIES


BUSINESS & FINANCE


LIFESTYLE


REFERENCE


TRAVEL


PRODUCTIVITY


HEALTH & FITNESS


APP CATEGORIES POPULARITYSome app categories are more popular than others. Games are the most popular app category followed by Social Networking and Music apps. Travel, Reference, Utilities and Education have the lowest percentage of downloaders.

http://androinica.com/2010/09/the-average-android-user-has-25-apps-and-loves-games-android-market-has-80000-apps/http://blog.flurry.com/?Tag=Usage%20Statistics

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1 0 0%

8 0%

6 0%

4 0%

2 0%

0%

2008 2009 2010 2012

Other

44%43%44%

51%

14%17%14%

10%

8%8%

7%3%

11%11%13%

24%

8%

15%14%17%

7%7%5%4%

Books

Education

Entertainment

Games

Lifestyle

MOST POPULOUS APP CATEGORIESThe 5 most popular app categories in terms of apps in existence are Books, Education, Entertainment, Games and Lifestyle which collectively make up 56% of apps available in app stores. The other 13 or so app categories variously make up the remaining 44% of apps.

http://tech.fortune.cnn.com/2011/05/24/apples-itunes-store-500000-ios-apps-and-counting/

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USE OF APPS AFTER FIRST DOWNLOADSports seems better at retaining users over the short term; entertainment is better at retaining users over the long term. Games have the highest initial usage, but then drops off precipitously.

35%

30%

25%

20%

15%

10%

5%

0%

1 11 21 31

DAYS AFTER FIRST DOWNLOAD

41 51 61 71 81 91 101

% U

SERS

RET

URNI

NG A

FTER

FIR

ST D

OWNL

OAD

http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentation

LIFESTYLE

ENTERTAINMENT

SPORTS

GAMES

UTILITIES

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LIFESTYLE

ENTERTAINMENT

SPORTS

GAMES

UTILITIES

10

8

6

4

2

0

0 10 20 30 40 50 60

ENGAGEMENT WITH APPS OVER TIMEGames have the highest engagement rate over time as counted by the amount of time spent using the app. Lifestyle apps are some of the only apps that exhibit growth (even if it’s a little bit) over time.


DAYS SINCE FIRST USED

TIM

E SP

ENT

(MIN

UTES

)

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YEARS

DOW

NLOA

DS IN

BIL

LION

S

GROWTH IN APP DOWNLOADSIt is predicted in August 2012 that Android app downloads will overtake iOS app downloads. This is a combination in the less restrictive Android app store requirements resulting in more Android apps as well as the increased dissemination of Android devices.

50

100

150

2009 2010 2011 2012 2013 2014

iOS

ANDROID

http://venturebeat.com/2011/10/11/whos-counting-mobile-app-data-shows-how-android-app-downloads-are-overtaking-the-iphone/http://venturebeat.com/2011/10/11/whos-counting-mobile-app-data-shows-how-android-app-downloads-are-overtaking-the-iphone/

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INCREASE IN AVAILABLE APPSApple had a commanding lead in the number of apps in their apps store, but due to the increase in ease of admission to the Android app store, Android apps are poised to overtake available Apple apps in August.

http://venturebeat.com/2011/10/11/whos-counting-mobile-app-data-shows-how-android-app-downloads-are-overtaking-the-iphone/

iOS

ANDROID

2010

800,000

600,000

400,000

200,000

2011 2012 2013

YEARS

# OF

AVA

ILAB

LE A

PPS

IN A

PP S

TORE

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APPS AND PRICE

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DATA ABOUT HOW PRICE AFFECTS APP DOWNLOAD AND ENGAGEMENT RATES.

F R E E

$ . 9 9

$ 1 . 9 9

$2 . 9 9 -

$4 . 9 9 *$5

. 99

+*

* 36%

29%

13%

13%

9%

http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats

THE PRICE OF APPSApps in the Apple app store have prices that range anywhere from free up to $15 and more. 37% of all apps are free, while an additional 42% of apps are $1.99 or less. The average price for a paid app is $3.64.

http://tech.fortune.cnn.com/2011/05/24/apples-itunes-store-500000-ios-apps-and-counting/http://www.tecca.com/news/2011/04/28/android-free-apps/

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FREE APPS V. PURCHASED Many mobile device owners are weary of paying for apps. Thus there has been a trend towards a drop in the average app price as well as an increase in app “Freemium” business models. The average price cut increases demand by 130% while the average price increase drops demand by 25%. In addition there is a higher willingness to pay for apps for iOS users versus Android users.

http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentationhttp://mashable.com/2009/08/27/cha-ching-iphone-users/http://news.cnet.com/8301-13579_3-57349631-37/iphone-users-downloading-more-than-5-million-free-apps-a-day/

The average price cut increased demand by 130%

The average price increase drops demand to 25%

Android userspurchase 1 of every 8

downloaded apps

iOS userspurchase 3 of every 10

downloaded apps

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APP USAGE OVER TIME PAID V. FREE Users stop using the average application quickly, the long term audiences are generally 1% of total downloads. Paid applications generally retain their users longer and at higher rates initially, than free applications, although the drop-off is still steep.

35%

30%

25%

20%

15%

10%

5%

0%

1 11 21 31

DAYS AFTER FIRST DOWNLOAD

PAID APPS

FREE APPS

41 51 61 71 81 91 101

% U

SERS

RET

URNI

NG A

FTER

FIR

ST D

OWNL

OAD

http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media?type=presentationhttp://www.phonedog.com/2011/02/01/how-many-times-are-downloaded-applications-actually-being-used/

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Books Restaurants/Dining

Coupons/Discounts

Games Maps/Navigation

Music SocialNetworking

News Entertainment SportsBanking/Finance

MagazinesRecommendations/Reviews

DOWNLOADS BY COST & CATEGORYA study of smartphone and tablet users over a 30 day period to discover what apps users download and whether they were free or paid. Results showed, most users will download a combination of free and paid apps in any given category.

Free & Paid Apps

Free Apps Only

Paid Apps Only

http://blog.nielsen.com/nielsenwire/consumer/consumers-ok-with-ads-if-the-apps-are-free/

50%44%

45%45%

50%42%49%41% 41%

49%40%

11%

18%

16%2%

33%33% 51%

48% 48%

47%35%49%

2%

4%

9%

9%

49% 49%

41%

9%

12%

10%10%

44%

45%45%

36%

14%

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APP ENGAGEMENT PAID V. FREEPaid apps have higher engagement rates over time versus free apps, although free and paid engagement rates fall and equal out as the age of the app download increases.


TIM

E SP

ENT

(MIN

UTES

)

DAYS SINCE FIRST USED

9

8

7

6

5

4

0 10 20 30 40 50 60

PAID APPS

FREE APPS

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OTHERSTATS

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FURTHER INFORMATION ABOUT APP DEVELOPMENT STRATEGIES, THE WINDOWS PHONE APP ENVIRONMENT AND MARKETING COSTS.

APP DEVELOPMENT: A GAMBLEThere have been over 10 billion apps sold in app stores today with as much as $250 million being spent in app stores every month. However, these huge numbers have attracted another growing number: the number of app publishers and the number of apps they are creating, namely 500,00 apps available for iOS and another 300,000 available for Android. For these reasons most developers choose a portfolio method for their app development: Developing multiple apps with hopes that at least one will payoff and offset the apps that weren’t as successful.

AVERAGE NUMBEROF APPS PERDEVELOPER

AVERAGE REVENUEPER APP

http://www.fastcompany.com/1792313/striking-it-rich-in-the-app-store-for-developers-its-more-casino-than-gold-minehttp://techcrunch.com/2011/12/18/app-ocalypse/

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2,345Both

95,870iOS

Developers

33,430Android

Developers

APP DEVELOPMENT: PLATFORMAnother question that many app developers have to question is what platform to develop their apps for. Most developers, because they are smaller decide to pick one or the other. A few develop for both platforms, and even then it is not all of their apps.

http://blog.appstorehq.com/post/760323632/ios-vs-android-over-1-000-developers-including-somehttp://mashable.com/2010/07/02/ios-android-developer-stats/

iOS

ANDROID

12

13622

4

27

CAPCOM MOBILE

Larg

e D

evel

oper

Mob

ile P

latfo

rm D

evel

opm

ent

GAMELOFT AMAZON

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COST PER LOYAL USER The average cost to acquire a loyal user through proactive marketing has fluctuated from a little over a dollar to just under two dollars. A user is considered loyal if they open an app three times or more.

http://www.fiksu.com/resources/fiksu-indexes#competitive-index

$1.30$1.31

$1.14

$1.81

$1.43$1.47

$1.64$1.54

$0.00

$0.50

$1.00

$1.50

$2.00

MAY 2012FEB 2012JAN 2012DEC 2011NOV 2011OCT 2011SEP 2011AUG 2011

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WINDOWS APPSThe Windows phone 7 platform and its app store are still relatively new to the marketplace and has had relatively good growth (it launched with 9,000 apps and today has around 9,000, however it hasn’t reached anywhere near the heights of the iOS or Android app stores, and most of the available apps are free, generating little revenue for developers.

http://windowsteamblog.com/windows_phone/b/wpdev/archive/2011/03/30/a-year-later-the-windows-phone-7-numbershttp://wp7applist.com/en-US/stats/

Free

Paid

90,000

81,000

72,000

63,000

54,000

45,000

36,000

27,000

18,000

9,000

0

Trial

Oct Nov Mar Apr MayFebJanDec

WINDOWSPHONES SHIPPED

AVAI

LABL

E AP

PS

MONTH

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apps white papers

Technology

tagusage20statisticsp

apple app

app stores

app development

typepresentationhttp

time paid

retaining

android apps