mainland china mobile app market 101: what you need to know

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Mainland ChinaMobile App Market 101:What you need to know

© 2014 Metaps Inc. All Rights Reserved.

This report is designed for app developersas a concise overview of the the app marketplace

in Mainland China:

• The mobile internet environment• Mobile device usage analysis• Size of mobile gaming market• Android app market• iOS app market• Case study

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Mobile internet trendsin

Mainland China


Internet/mobile internet use

380

460

510

560

620

670

730

790

850

230

300

360

420

500

580

640

690

750

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013 2014 2015 2016 2017

2009-2017 China internet user trend(million users)

Internet mobile internet

Mobile internet projected to increase 23% to 750 million users by 2017

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Data: CNNIC/iResearch


Mobile internet usage men: women

Data: iResearch

Men

Women

Adoption amongst men increased from 2012-13 largely due to the introduction of cheaper smartphones and the increase in mobile gaming content

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Mobile internet usage ratio men:women（2012-2013)


Mobile internet usage by age group

Data: iResearch

Rate of mobile internet usage in 2013 was highest amongst 26-35 year olds, making up over half of all users

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Mobile internet usage by age group （2013）

Age group


Mobile device usagein

Mainland China


Internet access by device

Data: Adtime Atlas

Over 80% of people in Mainland China access the internet via their mobile phone

80.2%

69.2%

44.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Mobile Phone DeskTop PC Note PC

2014 Internet Access by DeviceMainland China

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Internet access method for mobile gaming

Nearly half of mobile game users in mainland China connect by wifi to play

2G is still over 30% but decreasing,4G is small share but growing rapidly

Wifi45.8%

2G31.6%

3G18.8%

4G3.8%

Mobile Game Access Method (Aug 2014)Mainland China

Wifi 2G 3G 4G Data: TalkingData

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3G Network Distribution

3G Network share (Dec 2013)1. China Mobile (46%)2. China Unicom (29%)3. China Telecom (25%)

Data: iResearch

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3G network share (2013)

China Mobile China Unicom China Telecom


4G Network Growth

4G network growth is rapid,Expanded over 3000% since Jan. 2014

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Data: Umeng (友盟)

4G network expansion (2014)


Mainland China Mobile Advertising Map①

Data: iiMediaResearch艾媒咨询

12

De

ma

nd

-side

/Ad

ve

rtisers

Su

pp

ly-sid

e/A

pp

De

ve

lop

ers/M

ed

ia

Tracking App Stores

Ad ExchangePlatforms

Mobile Ad Platforms

Ad Network

MobileSSPMobile DSP

AdAgencies

AgencyTradingDesks


Mainland China Mobile Advertising Map②

Data: iResearch

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De

ma

nd

-side

/Ad

ve

rtisers

Su

pp

ly-sid

e/A

pp

De

ve

lop

ers/M

ed

ia


DevelopersPublishers

Mobile carriers

Users

Payment

App Markets

Ad Networks

Online/offlineMedia

Service Platforms

Branding/viral

purchasesAdbudget

Promotion/payment

purchasesRevenue share

Revenueshare

Gamecoding

Revenueshare

Gamecoding

GameDLGame/ads

Revenue share

Adagencyrights

Gamecoding

Revenue share

Adspend

Adrevenue

Sales

Paymentfee

Adspend

Adspend

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China mobile game industry value chain


Mobile gaming marketin

Mainland China


Mobile gaming market size

Data: iResearch

Mobile gaming market in China is projected to triple in size by 2017

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0.71.0

1.4

2.4

3.9

5.9

8.5

11.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 2011 2012 2013 2014e 2015e 2016e 2017e

Mobile gaming market size (Billion USD)


Mobile gaming market heat map

Data: TalkingData

Heaviest mobile gaming usage areas of China1. Guangzhou (12.8%)2. Jiangsu (8.5%)3. Zhejiang (7.8%)

Mobile gaming activity by region (Aug 2014)

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Mobile games release rate in mainland China

Data: TalkingData

3470

3755

3990

4335

4628

5097

4417 4426

0

1000

2000

3000

4000

5000

6000

Jan Feb Mar Apr May Jun Jul Aug

Mobile games released Jan-Aug 2014Mainland China

Over 34,000 mobile games released in mainland China during Jan-Aug 2014

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Mobile app usage

Data: Adtime Atlas

Over 50% of mobile internet users access 6+ apps for over 2 hours/week.

47.2%

28.9%

10.4% 9.7%

3.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

1-5 apps 6-10 apps 11-15 apps Over 15 apps Not used

# of apps used 2+ hours per weekMainland China

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User Retention

26%

39%

36%

28%

30%

27%

35%

33%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Casual Puzzle RPG Action SLG Simulation Poker Card battle

1 Day Retention Rate/Sept 2014Mainland China

Android IOS

1 Day retention rates highest on Puzzle and RPG games for both Android and iOS

Large gap in retention in Android/iOS simulation games

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Data: iResearch


5.8%

4.9%

11.2%

9.2%

7.9%

8.6%

9.5%

10.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Casual Puzzle RPG Action SLG Simulation Poker Card battle

Paying User Rate by Category (Sept 2014)

Android IOS

Data: iResearch

RPG and card battle have highest rates of paying users on both Android and iOS

Paying users

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Popular Game Genres

17.4%

15.3%

11.0%

9.6% 9.5% 9.2%

7.2%

5.9%

4.8% 4.5%

2.8%

1.8%

0.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Share of Downloads by Game GenreMainland China

Running apps like “Temple Run” are the most popular category in China, followed by Casual and Poker games.

Currently the top grossing running app in China is 天天酷跑 by Tencent.

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Data: iResearch


Android app marketin

Mainland China


Mobile OS share in China

Android70%

IOS, 19.1%

Symbian3.2%

Windows Phone, 2.9%

bada2.6%

Others2.0%

2014 MOBILE OS SHAREMAINLAND CHINA

Android is the #1 mobile OS

in mainland China, with 70%

share.

iOS is #2 with 19%

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Data: Adtime Atlas


Active Android device usage

Samsung (三星) has 6 of the top 10 Android devices from 2014Q2.

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Active Android device usage

Samsung has a 24% share of active Android devices, followed by Xiaomi at 9.8%.

Local Chinese maker Xiaomi (小米) has 3 models in the top 10, and is gaining on Samsung rapidly.

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Android device shipments

Samsung leads all devices in total shipments with a projected 58 million devices in 2014.

Xiaomi led all makers in shipments in Q2, surpassing Samsung.

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15.7 15.412 11.3 10.5 9.2

6.9 5.7 4.1 4.1

16

15.212.6

10.48.5 8.4

7.47.4

6.23.9 3.6

15.3

11.7

9.6

13.7

9.87.5

8.3

5.25

3.7 2.9

14.9

15.1

13.411

8.4

7.16.8

4.23.9

2.91.9

11

0

10

20

30

40

50

60

70

Samsung Apple Xiaomi Coopad Lenovo Huawei Oppo Bubugao Jinli ZTE Others

Mobile device shipment share in Mainland China 2014 (million devices)

2014/Q1 2014/Q2 est 2014/Q3 forecast 2014/Q4 Forecast


Mobile Device Resolution

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

1536*2048

1080*1920

768*1024

720*1280

640*1136

640*960

540*960

480*800

480*854

320*480

Device Resolution (Dec 2014)Mainland China

59.4Chinese Android users prefer larger screens: 59% of devices have a resolution of at least 640x960

Data: TalkingData

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There is no Google Play store

in Mainland China

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Image: Android Authority


Android app stores in Mainland China

There are several hundredAndroid stores

in China,of which these

are some of the largest

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Data: AppinChina.co


iOS app marketin

Mainland China


The App Store isavailable in

Mainland China

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China App Store Top Grossing chart/November

November 2014App Title Developer Category

1 三国之刃 Tencent Games

2 刀塔传奇-剑圣的觉醒 (DotA) Longtu Games

3 乱斗西游（网易） NetEase Games

4 雷霆战机 Tencent Games

5 全民飞机大战 Tencent Games

6 天天酷跑 Tencent Games

7 神武 Hero Network Games

8 天天风之旅 Tencent Games

9 天龙八部3D Changyou Games

10 太极熊猫 (Taichi Panda) Suzhou Snail Games

11 海岛奇兵（Boom Beach） Supercell Games

13 部落冲突 (Clash of Clans) Supercell Games

36 魔灵召唤: 天空之役 (Summoners War: Sky Arena) Com2uS Games

47 锁链战记 (Chain Chronicle) Meiyu (SEGA) Games

Rank

Overseas Developers

Tencent5 of the top 10 Grossing App Store titles in November

SupercellLeads all overseas developers with #11 and #13 apps

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Data:


China App Store Top Free chart/November

November 2014

AlipayChina’s leading online third party payment solution, launched by Alibaba in 2004

AppleLeads all overseas developers with #8 ranking “iTunes U”

App Title Developer Category

1 支付宝钱包（Zhifubao Qianbao for iPhone/iPad） Alipay Finance

2 淘宝 - Taobao for iPhone Taobao Lifestyle

3 QQ Tencent Social Networking

4 微信 (WeChat) WeChat Social Networking

5 天天风之旅 Tencent Games

6 美团团购 (Meituan) sankuai Lifestyle

7 腾讯视频 Tencent Entertainment

8 iTunes U Apple Education

9 UC 浏览器 UCWeb Utilities

10 酷狗音乐 (KuGou) KuGou Music

30 暗黑复仇者2 (Dark Avenger II) GAMEVIL Games

36 Microsoft Word Microsoft Productivity

40 Microsoft Excel Microsoft Productivity

Rank

Overseas Developers

34

Data:


Case study


Case study: 征途 in Mainland China

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Data:

・Released Nov. 21st

on Giant (巨人网络) platform・No English title


Case study: (征途) in Mainland China

Data: GameRes游资网

12 Keys to success for 征途 in Mainland China①Get people in industry to mention app on Weibo (Chinese version of Twitter)②Use celebrities in game advertisements③Large scale advertising on news & portal sites④Not released free but as minimal 1RMB ($0.16USD) paid app⑤Promote that game will be limited to 100,000 users⑥Promote on non-gaming channels such as e-commerce and carrier sites⑦Heavy rotation of commercials on video streaming sites⑧Competition held for user-generated game posters⑨Get coverage in general magazines, newspapers and local publications⑩Hold promotional dance events in large public areas in biggest cities⑪Reveal game event information with QR code use in publications⑫Advertise awards and bonuses for game operation team staff

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JP

CNKR

TW

SG

HK

IN

UKUS

Company Metaps Inc.

Founded Sept. 2007

Capital 947.5 million yen

Location Nishi Shinjuku 6-8-1 30F, Shinjuku-ku, Tokyo, JAPAN

SubsidiariesMetaps China（Shanghai/Beijing)Metaps Pte Ltd（Singapore)

Offices Taiwan, Hong Kong, Seoul, San Francisco, London URL：http://www.metaps.com/

Metaps has consultants located acrossGreater China

Offices Worldwide

Metaps provides consulting services for app developers looking to expand into Greater China and throughout Asia

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IN

• Former employment: VP of DeNA China, Engagement Manager at McKinsey & Company

• Manages staff of consultants throughout Greater China (offices in Shanghai, Taiwan and Hong Kong)

Metaps

Fei LouVP, Greater ChinaMetaps

[email protected]

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https://www.facebook.com/metaps

https://www.facebook.com/metaps

mailto:[email protected]

mailto:[email protected]


Thank youfor reading!!

mainland china mobile app market 101: what you need to know

Mobile

mobile internet usage

mobile phone80

mobile game access method

users6mobile internet

internet access method

g data

g network expansion

mainland chinawifi