global mobile market report

© Copyright 2016 Newzoo

MOBILE2016 GLOBAL

MARKET REPORT

MOBILEQ4 2016

FREE

APP MARKET, DEVICE, AND AUDIENCE INTELLIGENCE


TABLE OF CONTENTS

INTRODUCTION

1. THE APP MARKET

2. ACTIVE SMART MOBILE DEVICES

3. THE MOBILE CONSUMER

4. COMBINING METRICS FOR SUCCESS

5. FEATURE: CHINA ANDROID ECOSYSTEM

6. FEATURE: POKÉMON GO

7. NEWZOO MOBILE INTELLIGENCE

3

5

15

21

28

32

36

40


2016 GLOBAL MOBILE MARKET REPORT

3

INTRODUCTION

This free report features high-level insights into the global app and device market, as well as

the global audience of smart mobile device users. The report marks the official launch of

Newzoo Mobile and is a precursor to our Premium Global Mobile Market Report subscription

service that includes an annual report, quarterly updates, and dashboard access with key

market data and projections. The data is derived from our full Mobile Intelligence Suite that

aims to serve all industries that put mobile at the center of their strategy, product development,

or marketing.

For years, Newzoo has been known as a global leader in games

and esports market intelligence. Its flagship report, the Global

Games Market Report, was launched in 2012 and Newzoo’s early

move into esports culminated in the release of its Global Esports

Market Report in 2014. Both services are used by the majority of

global media, hardware, and game companies and are

considered the authoritative source for trends and revenue

projections in their respective markets. The trends driving games

and esports, including the uptake of new technologies, business

model innovation, and giving power to consumers, are now

touching and influencing an array of other industries. As such,

our client base has broadened enormously to include big

advertising brands, telecom operators, venue owners, sports

clubs, and even oil companies.

For Newzoo, moving into the broader mobile space was perhaps

obvious given how significant the share of mobile in the total

games market has become, and how early we had identified the

growth potential of mobile games. Our portfolio is the result of

almost two years of preparation, partnering, data sourcing, and

modeling. The resulting intelligence focuses on active devices,

users, and the app (store) economy. From a geographic perspec-

tive, our Chinese partner and strategic investor TalkingData plays

a key role in enabling us to paint a truly global picture, previously

unavailable in the market. Our Chinese partner and strategic

investor TalkingData is an enormous asset for our clients who

aim to enter, invest, or optimize their performance in world’s

biggest mobile market: China.

In brief, we believe that the current pace of change in consumer

behavior, media consumption, and technology requires a new

type of intelligence firm that is agile, innovative, truly global, and

ahead of the curve. Ultimately, we aim to be recognized as the #1

provider of games, esports, and mobile intelligence in the world.

This free report is a key first step toward achieving that ambition.

- Peter Warman, CEO Newzoo

GLOBAL MOBILE MARKET REPORT



4

KEY TAKEAWAYS

1 $44.8BN GLOBAL APP REVENUES

Global direct consumer spending on apps will

reach $44.8 billion in 2016 and grow to $80.6

billion by 2020. The share of app revenues from

games is expected to decrease from 82% to 72%

in the same period.

2 CHINA IS THE #1 APP MARKET

China overtook the US in 2015 in total direct

consumer spending on apps and will continue to

pull away, benefitting from its sheer size and un-

tapped potential. In 2016, consumer spending on

apps in China will reach $11.9 billion versus $9.4

billion in the US. The China market accounts for

30.2% of all actively used mobile devices

worldwide.

3 APPLE IS THE #1 MOBILE BRAND

Looking at all of the active mobile devices

worldwide in July (3 billion), Apple had the

highest market share of all mobile brands: 34.8%

of all smartphones or tablets. Samsung is a

strong second with 23.3%, followed by the three

leading Chinese manufacturers: Huawei, Xiaomi,

and Lenovo.

4 2.3BN SMARTPHONE USERS

In 2016, 31% of the global population will be an

active smartphone user, or 2.3 billion people.

Almost half of these users (49%) are in Asia-

Pacific. The Middle East & Africa region has the

lowest smartphone penetration with just 19% of

the population being an active smartphone user.

3 BILLION ACTIVE SMARTPHONES/TABLETS GENERATE $44.8 BILLION IN REVENUES, APPLE IS BIGGEST BRAND AND CHINA BIGGEST MARKET

TAKE AWAYS

$44.8BnGlobal App

Revenues in 2016, 82% Generated

by Games

$11.9BnChinese App

Revenues in 2016, vs. $9.4Bn for

the US

34.8%Share of All ActiveMobile Devices in July 2016 Were

Apple

2.3BnActive Smartphone

Users Globally in 2016, or 31% of the

Population


THE APP MARKET1



6

GLOBAL APP MARKETREVENUE SHARE OF NON-GAME APPS INCREASES

GLOBAL APP STORE REVENUES2015-2020 | GAME & NON-GAME REVENUE SPLIT | 2015-2020 CAGR

NON-GAME APPS POWER GROWTH

Direct consumer spending in the global app

market will grow from $35.8 billion in 2015 to

$80.6 billion in 2020, a CAGR of 17.7%. The

share from games is expected to decrease

from 83.2% to 72.1% in the same period, as

non-game app revenues grow faster than

mobile game revenues, a consequence of the

increasing popularity and willingness to pay

GLOBAL (NON-GAMING) APP REVENUES BY CATEGORY2016 | SHARE OF NON-GAMING APP REVENUES

MUSIC, VIDEO, AND SOCIAL RULE

Social networking (often dating), entertain-

ment (video), and music are the three top

categories in terms of non-game app

revenues. They are followed by categories

such as books, education, productivity,

photography, medical, and health & fitness,

which typically cater to a core customer

base willing to pay for a premium service.

2016

$8.2BnGlobal

for categories such as entertainment, music,

and social. Increasing internet and smart-

phone penetration in developing markets is

the underlying driver of high overall revenue

growth. Interestingly, almost all markets have

“local champions” and only very few apps

rank among the top grossing across all

regions, both for games and non-game apps.

Social Networking

Entertainment

Music

Education

Productivity

Other

2015 2016 2017 2018 2019 2020

83%82% 80% 77% 74% 72%

17%18%

20%23%

26%28%

Game Revenues

Non-Game Revenues

$35.8Bn$44.8Bn

$53.4Bn$61.6Bn

$70.6Bn$80.6Bn

2015-2020CAGR

$22.5Bn

$58.1Bn

+30.2%

+17.7%

+14.3%

18%

13%

11%7%5%

46%

Source: Newzoo Premium Global Mobile Market Report



7

NORTH AMERICAN APP MARKET ENTERTAINMENT AND SOCIAL APP REVENUES SURGE

NORTH AMERICAN APP STORE REVENUES2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY

72%

28%

2016$10.1Bn

NAM

Game Revenues

Non-Game Revenues

FEATURED APP

CATEGORY Y-O-Y GROWTH

MARKETSHARE*

PHOTOGRAPHY +152% 5.2%

ENTERTAINMENT +144% 18.7%

LIFESTYLE +141% 5.6%


MARKETSHARE*


FINANCE +213% 8.8%


LEADING WESTERN MARKET

Direct consumer spending in the North

American app market will grow from $8.8

billion in 2015 to $15.2 billion in 2020, a

CAGR of 11.5%. This is below the global

average, as the North American app market

is already relatively advanced and spend per

person is high compared to other Western

markets.

The share of games is expected to decrease

from 75.1% to 56.9% in the same period, as

paying for mobile entertainment in other

forms than games becomes increasingly

widespread, including video (HBO Now,

Netflix and Hulu), music (Pandora, Spotify)

and social (Tinder, Match.com).

Featured App

HBO NowTime Warner Inc.

HBO Now, developed by Time Warner subsidiary HBO, launched in April 2015. Benefitting from HBO’s high-quality and popular original content and extensive library, the service ended the year with 800,000 paying subscribers. It is priced at $14.99 per month, a premium to Netflix. A key selling point for such video apps is that viewers can watch content on multiple connected devices (smartphone, tablet, computer, TV, Xbox/PS), which appeals to the “cut the cord” generation.

* of non-game app revenues



86%

14%

2016$24.6Bn

APAC


8

ASIAN-PACIFIC APP MARKETGAMES AND NON-GAMES GROW ABOVE AVERAGE

ASIA-PACIFIC APP STORE REVENUES2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY

FEATURED APP

Game Revenues

Non-Game Revenues


MARKETSHARE*

LIFESTYLE +72% 2.2%

COMICS +37% 12.0%

MEDICAL +34% 2.9%


MARKETSHARE*

MUSIC +128% 6.1%

HEALTH & FITNESS +79% 1.3%


LOCAL CHAMPIONS RULE

Direct consumer spending in the Asia-

Pacific app market will grow from $19.2

billion in 2015 to $42.9 billion in 2020, a

CAGR of 17.4%. This is almost identical to

the global average, but masks important

differences between individual countries

and sub-regions, with much slower growth

in mature markets like Japan and Korea and

faster growth in China and Southeast Asia.


from 87.1% to 78.9% in the same period.

Non-game apps continue to account for a

relatively high share of the market, as

mobile game revenues still offer plenty of

growth potential in the region.

Featured App

WeChatTencent

WeChat is the dominant chat and messenger app in China, owned by gaming and internet giant Tencent. The app is increasingly used as a discovery platform for other apps and content, and integrated with Tencent’s other key properties, such as self-published games and the MyApp Store.

LINE holds a similar position in the Japanese market, as does Kakao in Korea.




LOVOO, a “free app to chat, flirt and date”, is a top 10 grossing social “lifestyle” app in Germany. This is a typical example of a local champion with now more than 50 million users globally. Users can either buy credits, pay a monthly fee, or earn credits by watching videos or downloading apps. The French equivalent, Happn, has more than 10 million users and strong momentum in overseas markets such as Brazil.

Featured App

LOVOOLOOVOO GmbH

83%

17%

2016$6.2Bn

EU


9

EUROPEAN APP MARKET GENERALLY FOLLOWS WHERE THE US MARKET LEADS

EUROPEAN APP STORE REVENUES2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY

Game Revenues

Non-Game Revenues


MARKETSHARE*


MUSIC +57% 10.5%

LIFESTYLE +55% 5.1%

GENTLE BUT STEADY GROWTH

Direct consumer spending in the European

app market will grow from $5.3 billion in

2015 to $9.6 billion in 2020, a CAGR of

12.6%. This is below the global average, as

the European app market is relatively

mature and slow economic growth hampers

further growth in spend per person.


from 85.3% to 69.5% in the same period.

Non-game apps account for a smaller share

of the market, as paying for video, music,

and social is more limited. In most markets,

Spotify is the leader in music, with competi-

tion from local champions such as Deezer in

several European countries. Netflix leads

video, with some markets still nascent.


MARKETSHARE*

LIFESTYLE +74% 4.2%

SPORTS +49% 4.2%

MEDICAL +37% 5.1%

FEATURED APP




64%

36%2016

$2.1BnLATAM


10

LATAM APP MARKETNON-GAME APPS FLOURISH IN VIBRANT MARKET

LATIN AMERICAN APP STORE REVENUES2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY

FEATURED APP

Game Revenues

Non-Game Revenues


MARKETSHARE*


LIFESTYLE +91% 4.4%

HEALTH & FITNESS +86% 4.0%


MARKETSHARE*

LIFESTYLE +85% 2.9%

SPORTS +57% 3.7%

MEDICAL +51% 10.8%

BIG SHARE NON-GAMES APPS

Direct consumer spending in Latin America’s

app market will grow from $1.3 billion in

2015 to $6.4 billion in 2020, a CAGR of

36.7%. This is well above the global average,

helped by improving economic conditions

and coming from a relatively low base, as

average spend per person and smartphone

and internet penetration are still low.


slightly from an already very low 65.0% to

58.6% in the same period. Non-game apps

account for a high share of the market, as

paying for music is far more common (both

Deezer and Spotify do well in the region)

and productivity and social (dating) apps

are popular, especially in Brazil.

PlayKids is a top 5 grossing app in Brazil that offers highly localized preschool cartoons and games for kids on the basis of a monthly subscription.

The app introduces players to a train with a series of cars and characters riding in each train. Each character represents a different program with “age-appropriate” content with an often educational twist.

Featured App

PlayKidsMovile Internet




iReader is an offline e-book reading app, offering access to more than 300.000 books. In Egypt, at least two such apps appear high in the top grossing ranks, indicating that ebooks have become widely adopted in the country. The offline ability is a key feature, as it allows people to download content when connected to internet via Wi-Fi, but access the content without the need for a continuous internet connection.

Featured App

iReaderHK iReaderTechologies Ltd.

90%

10%

2016$1.8Bn

MEA


11

MEA APP MARKETHUGELY DIVERSE REGION SUITED FOR LOCAL CONTENT

MIDDLE-EAST & AFRICA APP STORE REVENUES2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY

FEATURED APP

LONG TERM POTENTIAL

Direct consumer spending in the Middle

East & Africa’s app market will grow from

$1.1 billion in 2015 to $6.6 billion in 2020, a

CAGR of 42.6%. This is far above the global

average, but from a relatively low base, as

average spend per person and smartphone

and internet penetration are still low.


from 91.1% to 79.5% in the same period. This

is still a relatively high share, since game

revenue growth is forecast to grow strongly

as the mobile games market is still far from

saturated. This is not only due to the sheer

growth of the online population, but also

increased spending per person and avail-

ability of localized content.


MARKETSHARE*


MUSIC +76% 5.9%

UTILITIES +75% 4.4%


MARKETSHARE*

PRODUCTIVITY +261% 16.0%



Game Revenues

Non-Game Revenues





12

US VS. CHINA APP REVENUES

China and the US are by far the two biggest app markets in the world by revenues, with

only Japan coming close with its traditionally very high spend per person. China overtook the

US in 2015 in total app revenues and will continue to pull away, benefitting from its sheer size

and untapped potential. The share of games will remain higher in China than in the US, as

China’s mobile games market is expected to continue to show relatively strong growth over the

next few years, with the number of players and average spend per player increasing. Growth in

mobile gaming revenues in the US will slow after a few years of very strong growth.

CHINA APP STORE REVENUES GROW >1.5X US

US APP REVENUES2015, 2016, 2020 | OVERVIEW


MARKETSHARE*

PHOTOGRAPHY +161% 5.3%




MARKETSHARE*


FINANCE +218% 9.9%

SHOPPING +63% 1.84%

CHINA APP REVENUES2015, 2016, 2020 | OVERVIEW


MARKETSHARE*

SOCIAL NETW. +184% 24.9%


BOOKS 159% 8.8%

Non-Game Revenues

Game Revenues

Non-Game Revenues

Game Revenues

86%86%

79%14%

14%

21%

2015-2020CAGR

$3.9 Bn

$14.9 Bn

+27.9%

+18.0%

+16.1%

2015 2016 2020

$18.8Bn

$11.6Bn

$8.2Bn

75% 72%

57%

25%28%

43%

2015-2020CAGR

$6.1 Bn

$8.1 Bn

+24.4%

+11.4%

+5.4%

2015 2016 2020

$14.2Bn

$9.4Bn$8.3Bn

STORE** Y-O-Y GROWTH

MARKETSHARE

MY APP (TENCENT) +7.5% 17.1%

360 MOB. ASSISTANT -29.6% 12.3%

BAIDU MOB. ASSIST. -3.3% 11.4%

**Top Chinese stores, based on monthly active usersSource: Newzoo China App Store Intelligence (July 2016)





13

GAMES LEAD DATA ANALYTICSMONETIZATION DATA MAY BE RELEVANT FOR OTHER APPS

Apple Introduces New Fee Structure for Subscription Models

Even though some non-game app categories such as music may gravitate predominantly

toward other business models, such as monthly paid subscriptions, or not be primarily aimed at

generating direct consumer spend at all, mobile games still offer other app categories

potentially valuable insights into monetization metrics based on vast amounts of actual data.

Average revenue per paying user (ARPPU), conversion, and retention rates are key metrics that

mobile game publishers closely watch. It is no coincidence that successful mobile game

publishers also lead the way in data analytics, as witnessed by Machine Zone’s decision to

rename itself to MZ and expand its ambitions to becoming a leading global real-time data

processing technology company.

*All game metrics are 75th percentile figures (for a full month), because we want to benchmark against successful games. The straight average would be too heavily influenced by poorly performing games.

** For iOS, based on an aggregate of 43 countries. For Android, based on an aggregate of 31 countries.

GAMING METRICS iOS ANDROID

ARPPU / MONTH $25.70 $22.67

CONVERSION 2.1% 1.8%

D1 RETENTION 44.4% 41.3%

D30 RETENTION 12.8% 10.3%

AV. SESSION TIME (MINS) 41 37

AV. SESSIONS/MONTH 4.5 4.2

KEY GAMING METRICS*JULY 2016 | iOS VS. ANDROID | GLOBAL**

CONSUMER REVENUES VERSUS ADVERTISING

Direct spending by consumers is a very

important revenue stream and the focus of

this report, but obviously not the only one in

the app ecosystem. Advertising in and

around apps is the other key revenue stream.

This typically contributes less than 20% for

apps with strong monetization mechanics

and nearly all revenues for older apps or

apps that are not designed to, or successful

in, generating consumer revenues.

In order to avoid missing out on apotentially large future revenue stream,Apple will reduce the fees it charges todevelopers of apps that monetizethrough (auto-renewable) subscriptionsbought “in app”. Developers will receive85% of the revenues after year oneinstead of the traditional 70%. To makeit easier for users to reach the one-yearmilestone, there will be a 60-day graceperiod; if a user cancels a subscriptionbut re-subscribes within 60 days, thesubscription length will not reset to zero.The new policy will come into effect atthe end of this year or early next year.

FEATURED MONETIZATION

MODEL

The ARPPU on

is higher than the Android average:

$23.40vs. $22.67

76.6%87.1%

of 2016 App RevenuesGenerated By Games

of 2016 App RevenuesGenerated By Games

Source: deltaDNA


© Copyright 2016 Newzoo 14


APP STORE INTELLIGENCE DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

TYPICAL USE CASES FOR NEWZOO’S GLOBAL APP STORE INTELLIGENCE

METHODOLOGY

Newzoo’s app store intelligence service is based on

analysis of a number of data sources, including actual

transaction data, financial performance of relevant

companies, and various economic and development

indicators for individual countries, including internet and

smartphone penetration rates. Historical app revenue and

download estimates are corroborated with data from our

strategic partner Priori Data and Newzoo’s proprietary

app store tracking technology.

APP REVENUES: All direct consumer revenues that pass

through app stores, including third-party Android stores.

Advertising and e-commerce revenues are excluded.

NON-GAME APP REVENUES: Revenues generated through

in-app purchases, subscriptions, or paid installs from apps

that are not categorized as games by app stores.

GAME REVENUES: Revenues generated through in-app

purchases, subscriptions, or paid installs from apps that

are categorized as games by app stores.

PRIORITIZE & SIZE YOUR MARKET OPPORTUNITY

“By zooming in on our genre, best performing apps, and our desire to launch in English only across most European countries, we chose for a different and more effective roll-out and marketing strategy, targeting a market worth $80M monthly.”

BENCHMARK WITH COMPETITORS

“Per country, our performance differs enormously and so do our competitors. By studying the best performing competitors by country, we adjusted our product as well as our marketing effort and the effect was immediate.”

IDENTIFY KEY GROWTH APPS & COMPANIES

“Every big mobile company is on the lookout for investment opportunities and acquisition targets. By being able to track rising stars based on our custom requirements, we now know that we are not missing any investment opportunities.”

SPOT BLUE OCEANS BY TRENDING AND FORECASTING

“By trending our key genres and top performers in that genre on a country-by-country and store-by-store basis, we are able to spot the fastest growing (new) and emerging genres. By using store size forecasting, we could even estimate the future size of these so-called blue oceans.”

FEATURED SERVICE

www.newzoo.com/apps

APP STOREINTELLIGENCE

Revenues, Downloads, China Android, iOS, Google Play,

DEFINITIONS

http://www.newzoo.com/apps




ACTIVE SMART MOBILE DEVICES

2


78%

22% 21%

79%


16

ACTIVE SMART MOBILE DEVICES

Almost a decade after the first iPhone was launched, growth of mobile smart devices sold

in mature markets is slowing significantly, as the replacement cycle rather than an increase in

penetration drives the number of new units sold. In the high growth phase, the focus was on the

hardware manufacturing or supply angle, often expressed in “units shipped”. Now, in the mature

phase, it has become crucial to understand what people do with their devices, especially given

the ever more central role smart mobile devices play in consumer’s lives. This “services angle” is

all about active users and actively used devices. These are the metrics that matter for software

developers and advertisers and Newzoo’s device intelligence takes this user-centric approach.

iPHONES RULE, TABLETS AGE WELL AND REMAIN POPULAR

HARDWARE VS. SERVICES

Active mobile device users in individual

markets, and the details of the number of

active devices per country or region, are

crucial insights for the mobile services

economy. Knowing the number and what

type of consumers use which device(s) can

guide better investment decisions, save

costs, and increase revenues, especially for

mobile centric companies such as app

developers and mobile first advertisers.

DEVICE LIFETIME VS. ACTIVITY

Low growth of units shipped in the tablet

market does not mean that the tablet is

dying. Our analysis of July US data show that

over 79% of actively used tablets were

devices that commercially launched before

2014 (while coincidentally the opposite was

true for iPhones). Evidently a longer lifetime

of iPads lowers demand for new units, but

this has no impact on active use of iPads,

including spending on app-based services.

iPHONES iPADS

12%of All

Devices

88%of All

Devices

LIFETIME ANALYSIS OF APPLE iPHONES VS. iPADSACTIVE DEVICES VS. LAUNCH DATE OF DEVICE | JULY 2016 | US

78% 79%Launched In or After 2014 Launched Before 2014

Source: Newzoo Global Device Intelligence


With more than one billion active devices, Apple accounts for 34.8% of all active tablet or

smartphone devices worldwide. Samsung is a strong second with 23.3%, followed by the three

leading Chinese manufacturers: Huawei, Xiaomi, and Lenovo. The ranking could change

dramatically in the next few years as key battlegrounds in Asia and Africa are conquered, and

especially depending on what happens in India, which has by far the largest untapped potential

in absolute numbers.

17


MARKET SHARE BY BRANDAPPLE LEADS AND CHINESE BRANDS TAKE MARKET SHARE

RANK DEVICE BRAND

SHARE OF MONTHLY ACTIVE MOBILE DEVICES

1 APPLE 34.8%

2 SAMSUNG 23.3%

3 HUAWEI 5.4%

4 XIAOMI 3.7%

5 LENOVO 2.7%

6 LG 2.5%

7 SONY 2.4%

8 OPPO 2.4%

9 VIVO 2.0%

10 HTC 1.2%

11 MOTOROLA 1.2%

12 ASUS 1.1%

13 MEIZU 1.1%

14 MICROMAX 0.7%

15 ZTE 0.7%

16 TCL 0.7%

17 FLY 0.7%

18 COOLPAD 0.7%

19 GIONEE 0.5%

20 LETV 0.4%

TOP SMARTPHONE/TABLET BRANDSSHARE OF GLOBAL MONTHLY ACTIVE SMARTPHONES & TABLETS | JULY 2016

1.

2.

3.

4.

5.

CHINA TAKES ALMOST A THIRD

The number of Chinese companies in the top 10 is a

testament to the sheer size of China’s smartphone and

tablet market, which accounts for 30.2% of actively

used devices worldwide. Apple’s slowing new unit

sales growth is not surprising given the market share it

already has, together with the premium pricing and

relatively long lifetime of Apple devices.

6.

30.2%of Smartphones

and Tablets Used Globally

(July 2016)

China Represents

3BnSmartphones

and Tablets Are Actively Used

(July 2016)

On a Global Scale

*based on Newzoo’s global device intelligence model that is fed by a sample of 550 million actively used smart devices in July 2016.




TOP MOBILE BRANDS BY REGIONAPPLE DOMINANT IN NAM, SAMSUNG IN LATAM

In terms of monthly active devices (MADs), Apple and Samsung are market leaders in every

region in the world, but with very different market shares per region and country. Apple is very

strong in North America, Asia-Pacific, and Middle East & Africa, while Samsung is relatively

strong in Latin America, Europe, and Middle East & Africa. In Asia-Pacific, Samsung battles with

the leading Chinese brands to be runner-up to Apple. Most growth countries see local

champions emerge, like Micromax in India. White label tablets sold by local retail brands also

capture a significant share of the tablet market.


TOP SMARTPHONE/TABLET BRANDS BY REGIONSHARE OF ALL MONTHLY ACTIVE DEVICES | iOS + ANDROID | JULY 2016

NORTH AMERICA

DEVICE BRAND SHARE OF MADS

APPLE 59.4%

SAMSUNG 28.4%

LG 13.6%

MOTOROLA 10.8%

ZTE 9.9%

LATIN AMERICA


SAMSUNG 48.4%

APPLE 19.9%

MOTOROLA 18.1%

LG 13.0%

SONY 12.2%

EUROPE


SAMSUNG 37.6%

APPLE 28.4%

SONY 13.5%

LENOVO 12.8%

HUAWEI 12.6%

MIDDLE EAST & AFRICA


APPLE 42.6%

SAMSUNG 37.9%

LG 13.6%

HUAWEI 11.4%

SONY 11.3%

ASIA-PACIFIC


APPLE 36.6%

SAMSUNG 11.3%

HUAWEI 10.1%

XIAOMI 10.1%

OPPO 7.1%

In July, Micromax had a market share of 21% in India, making it the second most popular mobile brand behind Samsung, which has a 34% market share.

Micromax is by far the strongest local brand, with the next two Indian brands, Intex and Lava, at #9 and #10 respectively.

The brand is also expanding to Russian and South Asian markets.

FEATURED BRAND

Featured App

MicromaxMicromaxInformatics Ltd.


14%

12%

10%

8%6%5%4%

4%3%

2%

32%

20%

15%

8%7%7%

4%4%

3%2%

2%

30%

19


TOP DEVICES IN THE USMORE THAN 65% OF ACTIVE TABLETS IN THE US ARE iPADS

TOP 10 SMARTPHONE MODELS IN THE USJULY 2016 | iOS & ANDROID | US

70.4%Share ofTop 10

iPhone 6

iPhone 6s

iPhone 5s

iPhone 6s Plus

iPhone 6 Plus

Galaxy S5

Galaxy S6

iPhone 5c

Galaxy Note 5

Galaxy S7

Other

TOP 10 TABLET MODELS IN THE USJULY 2016 | iOS & ANDROID | US

iPad Mini

iPad Mini 2

iPad Air

iPad Air 2

iPad 4

iPad 2

Galaxy Tab 4 7.0

iPad 3

Voyager

Galaxy Tab A 8.0

Other

68.3%Share ofTop 10


FEATURED DEVICE SPECS

TOP 3

SCREEN SIZE1. 5-5.5.0 INCH

2. 5.5-6.0 INCH

3. 4.5-5.0 INCH

CHIPSET1. SAMSUNG

EXYNOS 7 (OCTA)

2. QUALCOMM

SNAPDRAGON (410)

3. SAMSUNG

EXYNOS 5 (OCTA)

BATTERY1. 2500-3000 mAh

2. 2000-22000 mAh

3. 2200-2500 mAh

Newzoo has 20 variables

available per Android or iOS

device model in 130+ countries

Apple’s iPhone 6 (& Plus) and 6s (& Plus) together account for more than 48% of all actively

used smartphones in the US. In the tablet market, the iPad Mini is remarkably strong,

accounting for 26% of all actively used tablets. A sizeable part of the “other” tablet category is

accounted for by “white label” tablets, while the large share of “other” smartphone models is a

result of the huge amount of different smartphone models available.



DEVICE INTELLIGENCEDEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

SIZE THE ADDRESSABLE MARKET

“41% of 14 million smartphones and 72% of 7 million tablets in Italy can handle my app in terms of operating system and device model. The same data on 100 countries prioritized our international rollout strategy.”

SAVE PRODUCT DEVELOPMENT TIME

“Optimizing my app for the variety of screen sizes costs a lot of effort and, more importantly, development time. It turned out that, to optimize for 78% of Android devices on China, I only had to focus on four screen sizes.”

MONITOR DEVICE BRAND / OS UPTAKE

“Chinese mobile device brand Xiaomi maintained its 13% market share in China while showing double-digit month-on-month growth in 4 out of 6 Southeast Asian countries. Its global strategy seems to be working.”

TRACK LAUNCH IMPACT OF NEW MODELS

“The uptake of the new iPhone 7 was strongest in Germany, gaining a 3% market share in its first month after launch. On a global scale, more than 18 million iPhone 7s were in use that month, 11% of all iOS devices worldwide.”

FEATURED SERVICE

DEVICEINTELLIGENCEBrands, Models, OS,

Screen Size, Type (Tablet / Smartphone)

www.newzoo.com/devices

TYPICAL USE CASES FOR NEWZOO’S GLOBAL DEVICE INTELLIGENCE

DEFINITIONS

METHODOLOGY

Newzoo’s device intelligence service is based on a unique

combination of data sources. First, we collect global

monthly device usage data from strategic partners using a

sample of approximately 600 million active devices,

giving us raw data about the number of actively used

brands, devices, and models around the world. We then

enrich this data set by adding more detailed information

such as chipset, screen size, or memory size per model.

Our global device intelligence model uses top-down

analysis to adjust bias and extrapolate to a global,

regional, and country level.

ACTIVE DEVICE: A device used at least once during a

reporting month.

SMARTPHONE: A device with a screen size under 7 inches.

TABLET: A device with a screen size of 7 inches or larger.

DEVICE BRAND: Manufacturer or redistributor of the

device as described by the device’s software.

http://www.newzoo.com/devices




THE MOBILE CONSUMER3



22

ACTIVE SMARTPHONE USERSGLOBAL NUMBER OF CONSUMERS USING SMARTPHONES

APAC: 49% OF ALL ACTIVE USERS

Asia-Pacific will account for about half of the

world’s smartphone users in 2016. Together

with Middle East & Africa, it also has the

greatest growth potential. As the graph below

clearly illustrates, both regions benefit from

the double impact of increasing smartphone

and internet penetration, which usually go

hand in hand in most emerging markets.

31%19%

10%

49%

13%

9%

SMARTPHONE USERS2016 | GLOBAL & PER REGION

2016

7.4BnTotal Global Population

2016

2.3BnTotal Global Smartphone

Users

SmartphoneUsers

EU

NAM

APAC

MEA

LATAM

TOTAL POPULATION, ONLINE POPULATION & SMARTPHONE USERS2016 | GLOBAL & PER REGION

7.39Bn

0.76Bn0.36Bn

4.01Bn

1.63Bn

0.64Bn

3.39Bn

0.60Bn0.33Bn

1.60Bn

0.51Bn 0.37Bn

2.27Bn

0.43Bn 0.23Bn

1.11Bn

0.30Bn 0.20Bn

Global EU NAM APAC MEA LATAM

Total Population Online Population Smartphone Users

Source: Newzoo Smartphone & Tablet Usage Model

In 2016, close to a third of world’s population will use a smartphone: 2.3 billion people. China

has more than 600 million smartphone users, while India and the US both have around 200

million. India will overtake the US next year to become the world’s #2 market. In the US, 64% of

the population already uses a smartphone, compared to only 16% in India. Newzoo’s global

active smartphone and tablet user intelligence includes forecasts for 190 individual countries.



US APP STORE DEMOGRAPHICSBROADLY SIMILAR IN TERMS OF AGE & GENDER

9%

17%

19%

9%7%

14%

16%

9%

16%Under theAge of 20

AGE/GENDER OF APP STORE USERS2016 | US

TAKE AWAYS

Apple has the largest share of users under the age of 20; Amazon has the highest share of users over 36 years old.

Amazon has a higher share of male users than the other stores; Apple and Google Play both have slightly more females than males.

Amazon users are the most likely to have a full-time job with 56%, following closely by Apple with 53%.

47%Female

56%Full-Time Employee

M10-20 M21-35 M36-50 M51-65 F10-20 F21-35 F36-50 F51-65

11%

15%

14%

10%12%

15%

13%

10%


11%

14%

16%

8%10%

16%

16%

9%


51%Female


51%Female


Source: Newzoo Mobile Consumer Insights

Having looked at global app revenues, the number of smart mobile devices and the number

of smartphone users, the next challenge is to look at the consumers behind the numbers.

Understanding local mobile consumers and their behavior is crucial for any company that has a

serious mobile component to its product or marketing strategy. Media consumption, spending

habits, and preferences for brands, channels, and services can differ enormously per country. As

an example, the three biggest app stores in the US do not differ much in overall age-gender

split, but differences surface when diving deeper, as illustrated below.



US APP STORE DEMOGRAPHICSAMAZON USERS ARE BIGGEST MEDIA SPENDERS


In addition to consumer age, gender, media consumption, and preferences, the demographic

profiles of smart mobile device users also offer a treasure trove of data. The home situation,

income and education levels, and various other socioeconomic data points can all be relevant

for product development and marketing decisions. In this report, we focus mainly on apps, app

stores, and direct consumer spending, but obviously such data is also highly relevant for mobile

advertisers. Newzoo’s mobile consumer insights cover 200 variables across 27 individual

countries.

HOME SITUATION OF APP STORE USERS2016 | US

Lives Alone Lives With Parents Lives Together without KidsLives With Kids

Almost half of Amazon app store users live with children vs. 40% for Apple and 45% for Google Play. They are the most likely to have a current subscription to media services like Spotify, Netflix, YouTube Red, and HBO Now.

When it comes to mobile gaming, Amazon users are the most likely to spend money. One third of them are average or big spenders on mobile games versus 27% for Apple and 23% for Google Play.

TAKE AWAYS

17%

10%

49%

24%

49%Lives

With Kids

16%

17%

40%

27%

40%Lives

With Kids

18%

15%

45%

22%

45%Lives

With Kids

18%Subscribed

60%of Mobile Gamers Pay

17%Subscribed


14%Subscribed




SOCIAL APP USERSSNAPCHAT HAS THE YOUNGEST DEMOGRAPHIC


15%

13%

16%17%

14%

13%

7%5%9%8%

14%

23%20%

14%

6%6%

11%

9%

10%

10%10%10%

10%

10%

19% 11%

26%

18%14%

8%

8%5%

4%6%



52%female

52%female



43%female

45%female

Social apps are very illustrative of how users of apps within a certain category can differ per

app. The age distributions of Facebook and Snapchat users in the US are very different; more

than a quarter of Snapchat users are aged 16-20, while 50-65 year-olds are the biggest age

group of active Facebook users. The young generation prefers a “content-first” approach and

cares less for timelines and profile pages. In China, there are also notable differences between

two popular social/chat applications: WeChat and RenRen. The latter skews older: 20% of

RenRen users are in the older Millennial age bracket (31-35) vs. 14% of WeChat users.

AGE OF ACTIVE SOCIAL/CHAT APP USERS2016 | FACEBOOK & SNAPCHAT IN US | RENREN & WECHAT IN CHINA

10-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50 50-65*

*only ages 10-50 are covered in China


11%13%

31% 32%

13%13% 12%

30%34%

14%17%

15%

32%

26%

11%


26

MOBILE PAYMENT ATTITUDESSMART DEVICES ENABLE MOBILE PAYMENTS TO SURGE

PREFERENCE* FOR USING MOBILE PAYMENT METHODS2016 | GLOBAL

2nd Generation Millennials (18-25) 1st Generation Millennials (26-35) Non-Millennials

Strongly Disagree Disagree Neutral Strongly AgreeAgree

*Respondents were asked to what extent they agree with the following statement: I prefer to pay with digital mobile payment methods


TAKE AWAYS

The majority of consumers have a preference for digital mobile payment methods. This is especially true for the older millennial generation aged 26-35.

48%of millennials aged 26-35prefer to pay using digital mobile payment methods

INDONESIA 59%

CHINA 68%

PHILIPPINES 56%

Agreement is highest in:

Owning and always carrying a smartphone is becoming ubiquitous and clearly proving to be

an irresistible draw for service providers and advertisers. As more and more services are

offered via smart mobile devices, it is inevitable that they will play a big role in financial

transactions in the future, far beyond merely using the mobile banking app of your local bank.

Newzoo research shows very positive attitudes toward mobile payments, especially among

first-generation millennials. In several mobile-first emerging markets, asking about mobile

payment preference is almost a rhetorical question. We expect mobile to become the dominant

payment method in the not-too-distant future, whether through the technology of an

established tech or payments processing titan or some as of yet little known FinTech startup.



AUDIENCE INSIGHTSDEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

FEATURED SERVICE

www.newzoo.com/mobile-consumers

TYPICAL USE CASES FOR NEWZOO’S GLOBAL AUDIENCE INSIGHTS

SMARTPHONE USER: An individual aged 14+ who

possesses his/her own smartphone and uses it at least

once a month.

ONLINE POPULATION : A person with access to the

internet, either through a computer or a mobile device.

AUDIENCEINSIGHTS

Big Spenders, Demographics, Stores, Devices, Franchises

DEFINITIONS

METHODOLOGY

Newzoo’s Smartphone & Tablet Usage Model calculates

and projects the number of active smartphone and tablet

users per country, based on a combination of data

sources, including Newzoo’s proprietary global device

intelligence and census data from global institutions such

as the Worldbank and the UN. We use a combination of

socioeconomic and development indicators in combination

with a proprietary market maturity model to project the

share of the population that will use connected smart

devices in the future.

ANALYZE YOUR TARGET MARKET

“We compared mobile consumers in Western markets with consumers in China and APAC. This data proved very important for our global strategy and marketing decisions.”

MATCH CONSUMERS TO YOUR BRAND & PRODUCTS

“Based on the socioeconomic data, we were able to identify which countries provided the biggest opportunity for our brand and products.”

PROFILE YOUR TARGET GROUP

“The data provided us with a lot of new unique insights into media consumption of our target group. This enabled us to optimize our value proposition to our customers. ”

IDENTIFY THE BIG SPENDERS PER COUNTRY

“The data helped us validate our opportunity in the Western market by profiling big spenders in detail. This makes it more easy to sell our products on a global scale.”

https://newzoo.com/solutions/consumer-insights/mobile/

https://newzoo.com/solutions/consumer-insights/mobile/

http://www.newzoo.com/mobile-consumers

http://www.newzoo.com/mobile-consumers


COMBINING METRICS FOR SUCCESS4



MOBILE IS ALL ABOUT METRICS APPS ARE RUN AS A SERVICE AND OPTIMIZED CONTINUOUSLY

The amount of data that can be generated by running apps as a service rather than a product

is vast, and processing the data becomes a bigger challenge than collecting it. This is exactly

where the mobile big data technology of our partner TalkingData comes into play, as illustrated

by the graph below. It shows how app downloads are distributed over the days of the week.

For both iOS and Android devices, we can see a clear pattern of increased download activity on

Thursday, Friday and Saturday, albeit a bit more pronounced for Android.

MONETIZATION VS. ENGAGEMENT

Games have been the trail

blazers for increasing the

sophistication of

monetization metrics. The

basic metric of conversion

can vary enormously

between countries and app

stores, as illustrated by the

image on the left.

For other apps, various

engagement metrics may be

far more important, but they

allow for similar detailed

comparisons.

10.9% 11.3%

12.8%

20.1%18.4%

16.1%

10.5%

12.7%13.5% 13.3% 16.4% 16.1%

14.8%13.2%

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Android Platform iOS Platform

SHARE OF (GAME) APP INSTALLS PER DAY OF THE WEEK IN CHINAJUNE 2016 | ANDROID VERSUS IOS

Switzerland has the highest conversion rate on iOS

4.49%

The Philippines has the lowest conversion rate on iOS

0.82%

Switzerland also has the highest conversion rate on Android

4.86%

Argentina has the lowestconversion rate on Android

0.40%



30

METRICS PRIORITIZE STRATEGY

Creating a successful international app involves making a lot of important and interrelated

decisions, from picking target countries, optimizing product positioning, targeting the audience,

to deciding what devices on which to focus. Luckily, there is plenty of data to support such

decisions and to benchmark results against external sources. As a decision in one area often has

consequences for another, developers would be well advised not to look at a decision in

isolation. Based on the data and experience now available on the app ecosystem, Newzoo and

its partners can now quantify the impact of various strategic decisions, for example in terms of

addressable market, as illustrated by the image below.

ONLY A COMBINATION OF METRICS SHOWS TRUE OPPORTUNITY

VARIETY OF MARKET KPIS & METRICS INVOLVED IN SIZING OPPORTUNITIESAPRIL 2016 | METRICS RELEVANT TO PROFILING OPPORTUNITIES IN AUSTRALIA

PRIORITIZECOUNTRIES

APP STORE& GENRE FOCUS

TARGET GROUPPROFILING

OPTIMIZATIONMETRICS*

2016 MOBILE GAME REVENUES

$510M

2015-2019 CAGR

+4.2%

2019 MOBILE GAME REVENUES

$580M

iOS MARKET SHARE

67%

SHARE CASINOGENRE ON iOS

24.5%

TOP GROSSINGCASINO GAME ON iOS

Heart of Vegas

SPENDERS ON iOS

1.3M

SHARE OF iOS SPENDERS PLAYING

CASINO

8.0%

M/F RATIO OF CASINO PLAYERS ON iOS

55% Male

ARPDAU iOS GAMES

$0.12

D7 RETENTIONRATE FOR iOS

23.7%

SHARE OF iOS SPENDERS THAT

CONVERTED ON D0

21.8%

DEVELOP FOR TOP DEVICES

TOP 5 DEVICES

1. iPHONE 6

2. iPHONE 5S

3. iPHONE 5

4. iPHONE 6 Plus

5. iPAD Air

For Each Individual Monetization Metric, the

Lowest and HighestScores Differ

>10XDepending on Country,

Genre, or Platform

*All game monetization metrics are 75th percentile figures (for a full month), because we want to benchmark against successful games. The straight average would be too heavily influenced by poorly performing games.

FEATUREDFACT



MONETIZATION METRICSDEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

FEATURED SERVICE

www.newzoo.com/metrics

TYPICAL USE CASES FOR NEWZOO’S MONETIZATION METRICS INSIGHTS

ARPDAU: Average Revenue Per Daily Active User.

ARPPU: Average Revenue Per Paying User.

CONVERSION RATE: Share of users that make at least

one purchase in a given time period.

RETENTION RATE: Share of users still using an app

after x amount of days.

MONETIZATIONMETRICS

Conversion, Retention, ARPPU, ARPDAU, Genres

DEFINITIONS

METHODOLOGY

Our monetization metrics service combines and aggre-

gates actual data collected continuously from hundreds of

games with various (grossing) rank positions and repre-

senting different genres. Working with our strategic

partner deltaDNA, we are able to compare performance

of games in terms of retention rates, ARPPU, and other

key metrics across 40+ countries.. This also allows us to

benchmark performance per app store and genre.

OPTIMIZE MARKETING SPEND

“It turns out that for certain markets, the ARRPU from iOS consumers outperformed Android to such a high extent that we decided to focus purely on the iOS system. For certain countries in Southeast Asia, the reverse was true.”

PRIORITIZE YOUR INTERNATIONAL ROLL-OUT

“We found the five most valuable markets for casino games in Latin America, allowing us to prioritize our advertisement placement and brand awareness to those markets.”

DEVELOP REALISTIC BUSINESS PLANS ON THE LATEST METRICS

“We were able to set realistic targets for the five regions we are looking to expand in. Meanwhile, we are constantly monitoring other markets and have set thresholds for the point when it would be interesting to enter.”

BENCHMARK YOUR APP WITH YOUR COMPETITORS

“We thought our conversion rate in Saudi Arabia was insufficient. The data provided us with more insights into the market which in turn provided new ideas on how to increase our conversion.”

http://www.newzoo.com/metrics




FEATURE: CHINA ANDROID ECOSYSTEM

5



33

CHINA ANDROID ECOSYSTEM

The share of Android devices in China is much higher than in the US as a result of the many

successful local device manufacturers, who have also been able to fend off competition from

other Asian manufacturers such as Samsung. Given their explicit international ambitions, we

expect to see a lot more Chinese brands in overseas markets over the next few years, giving

Western and other Asian manufacturers a run for their money. Nevertheless, the success of

Apple in China is absolutely stunning, effectively the only Western consumer brand that

succeeds in becoming the market leader in China with no other Western brands in sight.

NAVIGATING CHINA’S MOBILE ECONOMY

Of All Smartphones & Tablets Used in China,

Android Devices Represent

73%TOP 5 ANDROID APP STORES IN CHINA JULY 2016 | BY INSTALL RATE | CHINA

STORE DIVERSITY

A unique feature of China’s mobile

ecosystem is the large amount of

third-party Android stores, filling

the void that the ban on Google

Play created. Tencent operates the

most popular store by install rate,

unsurprising given its huge scale.

360 Mobile Assistant ranks #2,

aided by Qihoo’s strong reputation

for security.

Baidu Mobile Assistant undoubt-

edly still benefits from Baidu’s

huge online search business, but is

closely followed by the app stores

of device manufacturers Xiaomi

and Huawei, the popularity of

which is of course more closely

tied the popularity of their devices.

An interesting one to watch is

Wandoujia, recently acquired by

ecommerce giant Alibaba.

1.

2.

3.

4.

5.

MY APPTENCENT

360 MOBILEASSISTANTQIHOO 360

BAIDU MOBILEASSISTANTBAIDU

MIUI APP STOREXIAOMI

HUAWEI APP STOREHUAWEI

23.6%

17.8%

16.7%

15.0%

11.6%

DEVICE USAGE: ANDROID VS. iOS JULY 2016 | CHINA

INSTALL RATESTORE / COMPANY

73%

27%



34

ANDROID APP PERFORMANCE

An epic battle for dominance of China’s ride-hailing market played out over the past few

years, not in the least because of Uber’s decision in 2013 to enter the Chinese market. As the

ride-hailing segment has apps at the heart of its business model, growing monthly active users

is critical to success, but also a very costly undertaking on such a scale. Didi, itself the product

of a 2015 merger with Kuaidi Dache, is backed by investors including Baidu, Tencent, Apple, and

Alibaba. Uber China was set up as a separate entity, and received funding from a roster of

China-based institutional investors. The graph below shows that Uber was clearly making

progress in China in the months before being acquired.

ANALYZING MONTHLY ACTIVE USERS ACROSS ALL STORES

ANALYSIS OF ANDROID TAXI HAILING APPS: UBER VS. DIDI FEB – JULY 2016 | ANDROID ECOSYSTEM | CHINA

DIDI ACQUIRES UBER CHINA

In August 2016, Uber announced it would

sell its China business to Didi Chuxing.

Swapping its business for a minority stake

in Didi meant finally ending its costly

battle for the China market.

China’s Largest Mobile Smart Data Company

TalkingData is China’s largest, independent Smart Data service platform that focuses on the mobile app marketplace. TalkingData provides best-in-class Smart Data products and services, such as mobile app analytics, mobile ad tracking, mobile game analytics, mobile market intelligence, DMP (Data Management Platform), and industry consulting.FEATURED

PARTNER



CHINA APP STORE INTELDEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

FEATURED SERVICE

TYPICAL USE CASES FOR NEWZOO’S CHINA APP STORE INTELLIGENCE

MAU: User who has opened the app at least once in the

given time period.

DEVICE USAGE: Devices which have been used at least

once in the given time period.

ANDROID APP STORE: First or third-party app used to

find and install new games.

www.newzoo.com/apps-china

CHINA APP STOREINTELLIGENCE

Revenues, Downloads, China Android, iOS/Google Play,

DEFINITIONS

METHODOLOGY

Working closely with our partner TalkingData, we provide

clients with in-depth market intelligence on the complete

Chinese mobile ecosystem. TalkingData is China’s leading

mobile smart data company, tracking two thirds of all

active smart devices and its users. It reports on individual

app performance by aggregating data from its suite of

analytics tools used by the vast majority of Chinese

developers. The derived insights are nearly endless, from

app (store) performance, device use, and engagement

metrics, to location-based analysis and demographic

profiling through its machine-learning technology.

TRACK ALL APPS & APP STORES IN CHINA

“Although the store we published in did not have the highest amount of monthly active users, most of its top downloaded apps were similar to our app, meaning there was a lot of demand for our specific genre in that store.”

PROFILE OPPORTUNITIES OF INDUSTRY PEERS IN CHINA

“To launch our payment app in China, we knew exactly which companies to partner with, and which companies were our direct competitors.”

IDENTIFY KEY GROWTH APPS & COMPANIES IN CHINA

“WeChat is now installed on over 800M Chinese devices, growing significantly year over year. The growth was mainly driven by its latest update, which improved its feature set significantly.”

TRACK MARKET SHARE OF CHINA’S INDUSTRY LEADERS

“Last month, Tencent’s growth was significantly stalled. Meanwhile, Alibaba’s unique new apps were rapidly growing, providing a positive prognosis for the coming months.”

http://www.newzoo.com/apps-china




FEATURE: POKÉMON GO6



37

FEATURE: POKÉMON GO

Pokémon GO has been the breakout hit of 2016. Niantic Labs’ game has accrued more than

550 million installs and $470 million in gross revenues (including app store fees) in its first 82

days since launch. Examining data from our Game Franchise Consumer Insights, we answer

some common questions surrounding the game and its players.

SHAKING UP THE MOBILE WORLD IN MULTIPLE WAYS

POKÉMON GO’S MASS SUCCESS: DAILY DOWNLOADS & REVENUES2016 | GLOBAL | iOS & GOOGLE PLAY | FOR FIRST 82 DAYS SINCE LAUNCH

TOTAL DOWNLOADS TOTAL GROSS REVENUES*

~550M ~$470MIN FIRST 80 DAYS IN FIRST 80 DAYS

IS POKÉMON GO A HYPE?

It is and is not. If sudden mass appeal

characterizes a hype, Pokémon GO fits the

definition more than anything else. When

almost one in four smartphone or tablet

users in the world downloads and plays a

game, it’s definitely a mass phenomenon, one

that’s disrupted public life at many locations

across the globe. If a hype means that the

popularity is short-lived, Pokémon GO is not

a hype. Revenue levels have dropped from a

peak of $16 million per day in the beginning

to a steady $2 million (excluding the 30% fee

for app stores) over the past weeks. There

are still approximately 700,000 new down-

loads every single day. Moreover, Pokémon

GO is yet to officially launch in South Korea

and China. Last week, a Pokémon-GO-type

game, City Monsters Go, was launched by

publisher Lequsy in China and received rave

reviews.

*Gross revenues include app store fees

Source: Newzoo App Store Intelligence



38

POKÉMON GO’S MASS APPEAL

Pokémon GO has leveraged the power of the Pokémon brand to reach the players who grew

up with the franchise. More than one third (36%) are aged between 16-25, versus 21% for the

average franchise. This means that players at the higher end of the age range will have played

Pokémon Red, Blue, or Green between 1996 and 1999. Females make up 43% of Pokémon GO

gamers, a testament to the original franchise, which crossed the gender divide.

MASS AUDIENCE RULES

AGE/GENDER & MOBILE GAMING EXPERIENCE OF POKÉMON GO PLAYERS2016 | AMONG ONLINE POPULATION AGED 10-50 | US, UK, GERMANY & FRANCE

US

UK

Japan

Spain

Germany

Italy

France

Australia

Ireland

Canada

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

TOP COUNTRIES BY DOWNLOADS POKÉMON GO (iOS & GOOGLE PLAY)

IS POKÉMON GO BRINGING IN NEW(MOBILE) GAMERS?

The answer is yes; 24% of Pokémon GO

players hadn’t, in the past three months,

played any other top mobile franchise in our

research. This suggests that the title has

attracted more than 20 million new mobile

gamers across the US, UK, Germany, and

France alone. Some of these were already

gaming on other platforms, but 8%, or

around 6.6. million, had not played any of the

100 researched franchises in the past three

months. This appeal to a new gaming

audience has made Pokémon GO the most

popular franchise across the four countries.

*Has played Pokémon Go in the past three months

Source: Newzoo 2016 Game Franchise Consumer Insights

Played Any of the Top 30 Mobile Franchises Within Past 3 Months

Have Not Played Any of the Top 30 Mobile Franchises Within Past 3 Months

M10-20 M21-35 M36-50

F10-20 F21-35 F36-50

19%

26%

12%

13%

20%

10%

AGE/GENDEROF POKÉMON GO PLAYERS*

43%of Players

Are Female

MOBILE GAMING EXPERIENCEOF POKÉMON GO PLAYERS

24%

76%

24%Have Not

Played Another Top 30 Mobile

Franchise

SCOPE OF DATA



39

POKÉMON GO’S UNIQUENESS

The most interesting fact about the Pokémon GO player base is that it appears to be a

broadly traditional gaming audience, despite its newness. After players of the regular Pokémon

franchise, Dota 2 gamers are most likely to be playing Pokémon GO (80%), while Candy Crush

Saga gamers are the least likely (46%).

SUCCESS ACCELERATED

MOST ENJOYED ASPECTS OF POKÉMON GO2016 | VS. DOTA 2 & CANDY CRUSH SAGA | US, UK, GERMANY & FRANCE

FEATURED POKÉMON GO

CLONE

WHAT DO POKÉMON GO PLAYERSMOST ENJOY ABOUT THE GAME?

Pokémon GO’s popularity is based on a

fusion of interests between the general

mobile audience and the preferences of its

hard core fan base. While the most popular

aspect of Pokémon GO was how easy it was

to pick up and play (31% of players liked

this), the other most enjoyed features were

the ability to roam and explore (25%) and its

competitiveness (20%). This puts Pokémon

GO at odds with casual mobile games and

places it closer to traditional hard core

games. For example, Candy Crush’s most

popular feature was also how easy it was to

start (49% of players liked this) but

competitiveness was ranked as less

important than in Pokémon GO (18%).

Meanwhile, players of MOBAs like DOTA 2

rank competitiveness highly (25%) and

prefer openness and role-playing elements.

A Pokémon-GO-type game, City Monsters Go, was launched in September by publisher Lequsy in China to rave reviews.

City Monsters GoLequsy

Source: Newzoo 2016 Game Franchise Consumer Insights


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WORLD-LEADING STRATEGIC PARTNERS

TalkingData is China’s largest, independent Smart Data service platform that focuses on the mobile app marketplace. TalkingData provides best-in-class Smart Data products and services, such as mobile app analytics, mobile ad tracking, mobile game analytics, mobile market intelligence, DMP (Data Management Platform), and industry consulting.www.talkingdata.com

Priori Data is an App Store Intelligence company providing comprehensive market data and competitive benchmarking information on the global app economy. Priori Data provides key metrics such as app revenue, downloads, and ranks on more than 3 million apps across more than 55 international markets.www.prioridata.com

DeltaDNA is the games industry’s leading real-time analytics and marketing platform. It is the only platform to provide a complete view of players’ in-app purchase and ad monetization engagement. Its services allows developers to maximize engagement and lifetime value through player segmentation, predictive modelling, and real-time targeted interventions. www.deltadna.com

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Newzoo’s Mobile Intelligence suite is powered by proprietary models, algorithms, and

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