APP INSIGHT REPORT Q3, 2013
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1 Simplifying Mobile APP INSIGHT REPORT Q3, 2013
2 TABLE OF CONTENTS InMobi App Insight Report, Q Adding up the world : Global app promotion trends 03 Top Trends & insights to drive downloads effectively for your Apps Creative Matters : Ad formats that work best for your app Bang on Target: Sites you should target for maximum conversions Tips & Tricks to win on Tablets Cut costs without cutting corners Market Spotlight : Taming the Chinese Dragon 04 Glossary
3 InMobi App Insight report Q As app developers, you ve spent time designing, developing and delivering your app. Now you are on the brink of beginning the next important phase acquiring users. But guess what, the mobile app ecosystem is a highly competitive marketplace. App developers constantly jostle for their niche in an already crowded market. Carving out that space is not easy unless you have the right tools of knowledge in your pocket and know what you need to, to be successful in this effort. This is where the InMobi App Insight report comes in. As part of the first edition of this report, we have analyzed thousands of app promotion campaigns that ran on our network. Following thorough number-crunching and indepth research, we present data that is visually arresting, quantitatively significant and vital to your app s success. We ve selected global data from Q to arm you with knowledge of the top trends in app promotion campaigns that can help you effectively drive app downloads globally. Aligning your app with these insights will make your product stand out in the vast ecosystem and give your app that competitive edge! 01
4 APP INSIGHT REPORT Adding up the world : Global App Promotion Trends Over 50 Million app installs were delivered on the InMobi network in 2013 YTD. InMobi continues to power millions of app installs for top developer studios and independent developers across the world. In Q2 2013, US continued to be the most favorite battleground for developers looking to drive downloads on our global ad network, with several of them also vying to tap into the high smartphone penetration and expansive mobile subscriber base that markets such as India, China and Japan represent. As more users get access to mobile media, large markets such as Indonesia are also becoming increasingly valuable for app developers, with the country holding the fifth spot on our top list of countries for app promotions. 02
5 APP INSIGHT REPORT Network highlight: The top 5 countries accounted for over 60% of the overall app downloads 33.8% USA 9.5% India 9.1% Japan 7.7% China 4.6% Indonesia 4.2% South Korea 3.5% Canada 3.0% United Kingdom 2.5% Australia 2.4% Spain 2.1% France 1.9% Mexico 1.6% Germany 1.5% Italy 1.2% Brazil 1.1% Sweden 1.0% Thailand Chart 1: % of App Downloads By Country, Q
6 Games represented the most downloaded app category on the InMobi network in Q According to Juniper Research s report, Future App Store: Discovery, Monetization& Ecosystem Analysis , gaming will fuel a sharp hike in app downloads with experts predicting that, in 2017, over 160 billion apps will be downloaded globally onto consumer handsets and tablets. The trends observed on the InMobi network are in tandem with this prediction, with games as a category representing 64% of the total apps downloaded through our network. 04
7 64.0% 11.3% Games Communication 6.8% 4.0% 2.7% 2.6% Telecom Entertainment ecommerce Business & Productivity 1.8% 1.1% 1.1% 0.9% Mobile Content & Others Social Consumer Packaged Travel 0.5% 0.4% 0.4% 0.3% Retail Health & Fitness Sports Education Chart 2: % of App Downloads By Category, Q
8 Top trends & insights to drive downloads effectively for your apps 06
9 01 Creative Matters: Ad formats that work best for your app As a developer, you know that designing the right ad experience is crucial to grabbing the user s attention and coaxing them to download your app. While simple banners continue to do this job quite well, mobile advertising today offers far more interesting options, ranging from rich media and interstitials to expandable ads and other unique ad formats. So which one do you pick for your app? 07
10 1a. Interstitials rule the roost APP INSIGHT REPORT Upto 25% Click through and 10% Conversions seen on interstitial ads on the InMobi network When it comes to promoting your app, we notice that there s something almost magical about interstitial ads. Maybe it s the way they expand to overtake your whole screen with a rich HTML5 image. Maybe it s the way they demand attention in an era of quick glances and endless scrolling. While top game developers on the inmobi network have seen upto 25% click through and 10% conversion, this ad format is also seen to work very well for a wide range of content. On our network, we noticed average conversions as high as 8% for comics and 5.6% for health & fitness apps. 5.6% Health & Fitness 5.2% Music & Audio 5.0% Productivity 3.3% Tools 8.0% Comics 3.2% Weather 3.0% Sports 2.7% Games 2.1% Lifestyle 2.1% Education 2.0% Books & References 1.9% Entertainment 1.7% News & Magazines 1.6% Media & Video 1.0% Social Networking Chart 3: Average Conversion Rates On Interstitials Across App Categories Q
11 On Android, the average conversions on interstitial ads are almost double that of other ad formats 3.06% 1.40% 1.12% 1.65% 1.73% 1.99% 1.58% 0.63% Banner Ads Expandables Interstitials Text Ads Chart 4: Average Conversion Rates Across Ad Formats by OS, Q Average Conversion Rates on ios Average Conversion Rates on Android Quick Tip: For apps with short app sessions, static interstitials get the point across immediately and are found to be the most effective in driving engagement. On the other hand, for more engaging apps with longer app sessions, video interstitials deliver higher ecpms. Static interstitials typically are observed to provide CTRs as high as 20% while video-interstitials are found to deliver superior ad engagement. 09
12 1b. Don t do away with banners, just yet! Well, interstitials are the in thing - no denying that. But does that warrant doing away with good old banner ads? On InMobi s network, we notice banners continue to work well for a wide range of non-gaming content on both ios and Android. Chart 5: Conversion Rates On Banners Across Non Gaming Apps By OS, Q Software Weather Travel & Local Shopping Medical Tools Business Lifestyle Productivity Finance News & Magazines 3.3% 3.5% 2.6% 2.4% 2.4% 2.3% 2.3% 1.8% 1.8% 1.8% 1.7% 1.7% 2.8% 2.5% 2.2% 2.2% 2.2% 2.0% 2.0% 1.9% 1.6% 1.5% Software Business Education Medical Finance Communication Catalogs Health & Fitness Tools Weather Travel & Local Quick Tip: For any app promotion campaign, we recommend using a good mix of HD banners and interstitials to ensure you reach audiences on a wide variety of handsets. Also, rotating ad formats can reduce ad fatigue and help drive higher ad engagement.
13 02 Bang on Target: Sites you should target for maximum conversions The mobile consumer today shunts his presence on different mobile sites. So where do you find the right users for your app? In this report, we specifically analysed conversions for games, social and entertainment apps on ios to understand which sites you should target to drive maximum installs while promoting your app. InMobi Insight: Almost all kinds of sites delivered good downloads on games - suggesting that the audience for this category is diverse and widespread. Sports and health & fitness sites delivered maximum downloads for social apps. On the other hand, communication sites delivered the most downloads for entertainment apps. 11
14 Chart 6: ios CVR Index Across Site Category By Content, Q Gaming Apps CVR Index Site Category Weather Sports Tools Travel & Local Lifestyle Shopping Business Productivity Media & Video Social Apps CVR Index Site Category Health & Fitness Sports News & Magazines Media & Video Finance Tools Entertainment Apps CVR Index Site Category Communication Education Sports Media & Video Catalogues Weather Games Note: Index calculated with gaming category as a base.
15 03 Tips & Tricks to win on Tablets Over 1,146 unique app download campaigns ran across the InMobi network on tablets, i.e., one out of every three app promotion campaigns on the network also ran on tablets. 13
16 Why Advertise on Tablets? M 74.1M 126.2M Exponentially Expanding High Quality User base In tier 1 cities every user will own a tablet by the end of 2013, generating 3x more download revenue than smartphones Source: A Potrait of Today s User Wave II, OPA, June 2012 Tablet Owners More Engaged Users = 90 Mins Garnering a significant amount of timeshare due to higher user engagement, tablets are the most preferred medium to consume media = 58 Mins = 50 Mins Source: Pew Research, 2012 Phones 3x Tablets Higher Inclination To Consume Ads CTR Users are at least 3x more open to consuming ads on tablets compared to smartphones Source: The Adfonic AdSnap Tablets, Q
17 Apple still leads the pack, but Android tablet usage is catching up Tablets & connected devices accounted for 14.1% of total impressions on the InMobi network in Q2 2013, with Apple remaining the top manufacturer in tablet category with the largest share of impressions. Device Share of Impressions, Q % 21.0% 14.1% Smartphones Tablets & Connected Devices Feature Phones Chart 7 : Device Share Of Impressions, Q Q Q Percentage point change since Q
18 APP INSIGHT REPORT Top Tablet Manufacturers, Q % Apple 28.4% Samsung 4.1% Amazon 3.0% Google 2.1% Acer 1.2% Asus 16
19 15.4% Chart 8: Top Countries in terms of Tablet Usage on InMobi Platform, Q % 6.9% 4.3% 4.0% 3.2% 3.0% 2.9% 2.9% 2.8% USA China Thailand United Indonesia Kingdom Japan France Russian Federation Saudi Arabia Malaysia ipad Galaxy Tab Galaxy Tab Galaxy Note 10.1 Nexus 7 Galaxy Tab 10.1 Galaxy Tab Kindle Fire HD 7 Kindle Fire Galaxy Tab 7.0 Plus Kindle Fire 7 3.6% 2.9% 2.1% 1.8% 1.6% 1.2% 1.0% 1.0% 7.6% 10.2% 53.9% Chart 9: Top Tablet Devices By Impressions On Inmobi Platform, Q
20 Ads that work well on tablets APP INSIGHT REPORT Consumers are increasingly utilizing tablets for shopping, game play and communication. The same optimized banner ad on a tablet app may perform completely different from an ad on a smartphone app. Knowing your target demographic on tablets or smartphones and what type of ads they engage with the most is crucial to designing an effective app promotion strategy on tablets. A quick comparison between tablet CTRs and average ad network CTRs reveal that text ads don t work well on tablets. However, interstitial ads deliver solid results with almost 46% higher CTR for tablet campaigns. Tablet CTR vs. Network CTR (% increase/decrease) 46.0% 23.0% 13.0% -37.0% Text Ads Interstitial Rich Media Ads Banner Ads Chart 10: Tablet CTR vs. Network CTR Across Ad Formats, Q /-(% increase/decrease) 18
21 Top 3 tips to make your tablet campaigns work: Leverage the real estate: Take the effort to optimize your ad size for tablets. Tablet optimized ads tend to deliver 3x higher conversions and ROI.InMobi recommends using the , , and slot 01sizes for best results on your tablet campaign. Bid at the right price: Tablet users tend to have higher LTV, and are on average, better spenders as well. This increases demand for tablet advertising and most advertisers are already bidding more. InMobi recommends that you bid about 1.5 2x more on tablets to hit the scale 02that you want. Mix and match: High definition ad formats match perfectly with the highresolution display of tablets, creating a deeply engaging experience for users. InMobi recommends rotating between HD banners, Interstitials 03and video ads to reach your users in the most optimal way. 19
22 04 Cut costs without cutting corners Agreed it s a competitive marketplace out there. You don t know your user s Lifetime Value (LTV) and can t decide how much to spend on acquiring users. But not all apps are created equal. Depending on what kind of app you have built and the country you target, the cost to drive a download ( CPD) could vary significantly. 20
23 Indexed against the costs in the US, our research indicates that driving a download in most markets, especially in China, Japan and Korea is relatively cheaper in comparison to the US market, with the UK representing the most expensive markets and India the least Expensive. 174 United Kingdom 127 Australia 100 USA 95 New Zealand 87 Malaysia 84 South Korea 84 Vietnam 81 Japan 77 Hong Kong 75 France 71 Singapore 60 China 56 Germany Chart 11: CPD Index By Country, Q India Note: Index calculated using USA as base 21
24 CPDs also vary drastically by the type of content you promote and depend on the average lifetime value (LTV) of the app s user. Higher the LTV, higher the CPD tends to be. For example, a travel app developer is usually willing to pay much more to acquire a user, compared to the average game developer, since the expected revenues from a loyal user can be much higher, at times upwards of $100 USD. This reflects in the average CPDs we notice on our network, with travel and financial service apps topping the charts on CPDs bid on the network Travel 4114 Financial Services 2091 Telecom 1040 Automotive 580 Health & Fitness 262 Consumer Packaged Goods 258 Mobile Content - Wallpaper 152 Social 139 Business & Productivity 122 Books & Reference 112 Retail 100 Games Chart 12: CPD Index By Category, Q Note: Index is calculated using Games as a base 76 Sports 22
25 05 Market Spotlight: Taming the Chinese Dragon Let China sleep, for when she awakes, she will shake the world. Napoleon And indeed, she did just that! According to IDC, in February 2013, China overtook the US to become the world s largest smart device market, with 246 million devices (against the US 230 million) and accounted for 26.5% of all smartphone shipments last year.concurrent with the growth in smart devices, mobile applications are also growing at an astronomical rate. In addition, the falling price of the iphone and the increasingly capable low to mid-range Android handsets now available have further propelled this growth. As attractive as the market may be, China is no easy beast to tame! Cultural barriers, piracy concerns, fragmented app distribution ecosystems and the need for localization have prevented most app developers from entering this market. The common perception that Chinese app users were not willing to pay for content and that app usage levels were not high enough to warrant investments in heavy marketing, have kept most developers away from China. 23
26 Know Thy Users For starters, there are several differences (and similarities, too) between the way Chinese users behave in comparison to their counterparts. Here are the top 3 insights from our recent consumer research in China that can help you drive downloads more effectively in this country. 1. Contextually recommended apps are the most preferred by Chinese users. Mobile Ads that Influence app downloads 39% 42% Ads which recommend specific apps for me, based on website I am browsing on my phone 24% 28% Ads which include multimedia content such as games, audio & pictures 18% 24% Banner ads which appear at the top of the screen 20% 19% A full screen ad which appears briefly, while the app is loading 17% A short video clip 14% Survey Question: When Searching For Mobile Apps To Download, Which Types Of Advertisements On Your Mobile Phone Would Be The Most Helpful? 24
27 2. If you want your users to download your app, get your app featured on the Chinese App Store! Factors that influence the app download decision App featured by App Store 57% 60% App Store reviews and rating 50% 59% Description & screenshots 48% 43% Price 41% 33% App is ranked high on App Store chart 40% 46% Recommendation from family and friends 37% 26% Reviews from magazines and website 25% 32% Survey Question: What Factors Have The Biggest Influence When You Decide Whether To Download A Specific App? 25
28 3. App Stores, mobile websites and recommendations from friends and family are the top 3 ways in which Chinese users discover apps. App Discovery Browsing the App Store 55% 54% Websites I access through my mobile phones 55% 44% Recommendation from friends & family 33% 23% Websites I access through laptop/desktop computer 23% 30% Recommendation from social media (facebook, twitter, etc.) 18% 12% Advertisments on my mobile phones 13% 20% Magazines & newspapers 10% 4% None of these 5% 3% Survey Question: How do you usually find new apps to download to your phone? 26
29 Top 3 Tips to Win in the Chinese App Market 01 a Localize your app: While translating apps into simplified Chinese is essential, localization should go beyond simple translation it is important to connect with users emotions and culture. Customizing with Chinese avatars and timing app launches with Chinese festivals is good strategy. 02 Go freemium to beat piracy: Paid apps are quickly pirated in China with up to 42% of Chinese ios devices being jail broken and 17% of apps copied or pirated. Overcome piracy by using a freemium monetization model and by making frequent updates to your app. 03 List your app on the right stores: With over 500 stores, China has one of the most complex and fragmented Android app store ecosystems in the world. Carefully select the right app stores to reach the right audience. The largest App Stores include Anzhi, AppChina, Gfan, Hiapk, Mobile Market, Nduoa, Snappee, Tencent, Wandoujia, Baidu App Store, Opera Mobile App Store, and Pandaapp. For more insights on China and how to win in this complex market, download our whitepaper What it takes to win in the Chinese App Market here. 27
30 Glossary of Terms 1. CTR (Click Through Rate) = (Clicks/Ad Request)* CVR (Conversion Rate) = Downloads/Clicks 3. CPD (Cost per Download) = Total Burn/Downloads 28
31 INMOBI OFFICE OFFICE WITH CREATIVE TEAM About InMobi InMobi enables the world s leading brands, developers, and publishers to engage global consumers through mobile advertising. InMobi platforms leverage advances in big data, user behavior, and cloud-based architectures to simplify mobile advertising for its customers. Recognized by MIT Technology Review as one of the 50 Disruptive Companies of 2013, InMobi is the world s largest independent mobile ad network, engaging 691 million consumers across 165 countries. To learn more, visit follow us on or discover the latest mobile insights at Developers, start monetizing instantaneously by downloading our SDK at 29
32 Contact Us: Arun Pattabhiraman Global Marketing Lead - Performance Advertising & App Developers, InMobi arun@inmobi.com For further queries on research, please write to research@inmobi.com. APP INSIGHT REPORT
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