distimo mobile asia congress presentation - findings on monetization in app stores

app store analytics

Vincent HoogstederCo-founder & CEO

MOBILE APP STORES

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1. Distimo collects all public application data from app stores2. Developers use our analytics tool to monitor own and competing apps3. Based on analyses of data, we deliver detailed market reports

Distimo Report•For OEM’s & carriers•App store market reports

Distimo Monitor•For developers•Free app store analytics

PRODUCTS

TODAYSOME OF OURFINDINGS ON MONETIZATIONIN APP STORES

BUSINESS MODELS ARE CHANGING

IN-APP PURCHASES

2% Of all applications use In-App Purchases

October 2010 - US

REVENUE FROM IN-APP PURCHASES

October 2010 - US

26% 26% of revenue in the top 100 grossing is generated by apps that use In-App Purchases

REVENUE BY BUSINESS MODELTOP 100 GROSSING

74%10%

16%

Paid Free with IA Paid with IA

10% by Free apps with In-App Purchases16% by Paid apps with In-App Purchases

October 2010 - US

supported now announced

IN-APP PURCHASE SUPPORT IS GROWING

NEW DEVICES, NEW OPPORTUNITIES

$0

$2

$4

$6

$8

$6.82

$2.11

$4.99

$4.23

Q3 2010 - US

IPAD USERS PAY MORE FOR APPS

All ApplicationsTop Paid

Average Listing Price

Most downloaded apps on iPad are 3 times as expensive as iPhone

On iPad the most downloaded apps are is cheaper than full catalog

IPAD IS NOT A BIG IPHONEUSERS ARE WILLING TO PAY MORE, BUT NOT ALL

DEVELOPERS PRICE ACCORDINGLY

MORE CHANNELS ARE COMING...

...

REAL REVENUE:FOR THEHAPPY FEW?

DOWNLOADS IN TOP OVERALL

0%

25%

50%

75%

100%

24%

76%

Top Paid 1 - 100 Top Paid 101 - 300

October 2010 - US

6xper app

TOP APPLICATIONS COUNTRY OVERLAP

United States

China

Indonesia

Australia

Canada

India

Singapore

United Kingdom

0%

25%

50%

75%

100%

Q3 2010 - US

Consumers in different regions download different content

BIG OPPORTUNITIES FOR LOCAL CONTENT

0

1,000

2,000

3,000

4,000

2010-01 2010-08

Number Of Cross-store Developers (7 major stores)

FRAGMENTATION FORCES DEVELOPERSTO MULTIPLE PLATFORMS

Q1 - Q3 2010 - US

GO FOR >2 STORESNumber of stores cross-store developers are active in.

0%

20%

40%

60%

80%

100%

Q1 2010 Q2 2010 Q3 2010

62%69%

81%

38%31%

19%

3 stores or more2 stores

Q1 - Q3 2010 - US

CREATEMOMENTUM:CHOOSE YOUR MOMENT

DOWNLOADS PER DAY OF THE WEEK

0%

5%

10%

15%

20%

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

September 2010 - US

TRAINYARD

Coverage on Italian blog, led to #1 rank in Italy.

UK followed quickly, leading to being featured by Apple.

FINDINGS

•Consider In-App Purchases as a business model

•When going for multiple stores and devices, be aware that consumer purchasing behavior will be different.

•Focus attention on selection of countries that share similarities in content consumption

•Launching your app is not just submitting it to the store, choose your moment carefully

THANK YOU

Free monthly report: www.distimo.com

Custom reports:remco@distimo.com

Free analytics for developers:www.distimo.com/monitor

Vincent Hoogstedervincent@distimo.comtwitter.com/distimo