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MOBILE

Q4 2016

FREE

2016 GLOBAL

MOBILE

MARKET REPORT

APP MARKET, DEVICE,


AND AUDIENCE
INTELLIGENCE

Copyright 2016 Newzoo

TABLE OF CONTENTS

Copyright 2016 Newzoo

INTRODUCTION

1. THE APP MARKET

2. ACTIVE SMART MOBILE DEVICES

15

3. THE MOBILE CONSUMER

21

4. COMBINING METRICS FOR SUCCESS

28

5. FEATURE: CHINA ANDROID ECOSYSTEM

32

6. FEATURE: POKMON GO

36

7. NEWZOO MOBILE INTELLIGENCE

40

2016 GLOBAL MOBILE


MARKET REPORT

INTRODUCTION

GLOBAL MOBILE MARKET REPORT

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 Newzoos 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 perspective, 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 worlds
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

Copyright 2016 Newzoo

2016 GLOBAL MOBILE


MARKET REPORT

KEY TAKEAWAYS

3 BILLION ACTIVE SMARTPHONES/TABLETS GENERATE


$44.8 BILLION IN REVENUES, APPLE IS BIGGEST BRAND
AND CHINA BIGGEST MARKET

$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.

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 untapped 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

$44.8Bn
Global App
Revenues in 2016,
82% Generated
by Games

$11.9Bn
Chinese App
Revenues in 2016,
vs. $9.4Bn for
the US

30.2% of all actively used mobile devices


worldwide.

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

TAKE
AWAYS

34.8%
Share of All Active
Mobile Devices in
July 2016 Were
Apple

strong second with 23.3%, followed by the three


leading Chinese manufacturers: Huawei, Xiaomi,
and Lenovo.

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 AsiaPacific. The Middle East & Africa region has the
lowest smartphone penetration with just 19% of

2.3Bn
Active Smartphone
Users Globally in
2016, or 31% of the
Population

the population being an active smartphone user.

Copyright 2016 Newzoo

Copyright 2016 Newzoo

THE APP
MARKET

2016 GLOBAL MOBILE


MARKET REPORT

GLOBAL APP MARKET

REVENUE SHARE OF NON-GAME APPS INCREASES

GLOBAL APP STORE REVENUES


2015-2020 | GAME & NON-GAME REVENUE SPLIT | 2015-2020 CAGR
2015-2020
CAGR

Non-Game Revenues
Game Revenues

+17.7%

$80.6Bn
$70.6Bn
$53.4Bn

$44.8Bn
$35.8Bn

$61.6Bn

28%
26%

$22.5

23%

18%

17%
83%

+30.2%

Bn

20%

82%

72%

74%

77%

80%

$58.1

+14.3%

Bn

2015

2016

2017

2018

2019

2020

NON-GAME APPS POWER GROWTH


Direct consumer spending in the global app

for categories such as entertainment, music,

market will grow from $35.8 billion in 2015 to

and social. Increasing internet and smart-

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

phone penetration in developing markets is

share from games is expected to decrease

the underlying driver of high overall revenue

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

growth. Interestingly, almost all markets have

non-game app revenues grow faster than

local champions and only very few apps

mobile game revenues, a consequence of the

rank among the top grossing across all

increasing popularity and willingness to pay

regions, both for games and non-game apps.

GLOBAL (NON-GAMING) APP REVENUES BY CATEGORY


2016 | SHARE OF NON-GAMING APP REVENUES

MUSIC, VIDEO, AND SOCIAL RULE

Social Networking
Entertainment

18%

Social networking (often dating), entertain-

Music
Education
Productivity

46%

ment (video), and music are the three top

2016

$8.2Bn

13%

Global

Other

11%
5% 7%

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.

Copyright 2016 Newzoo

Source: Newzoo Premium Global Mobile Market Report

2016 GLOBAL MOBILE


MARKET REPORT

NORTH AMERICAN APP MARKET


ENTERTAINMENT AND SOCIAL APP REVENUES SURGE

NORTH AMERICAN APP STORE REVENUES


2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY
Game Revenues
Non-Game Revenues

28%
2016

$10.1Bn
NAM

72%

Y-O-Y
GROWTH

MARKET
SHARE*

PHOTOGRAPHY

+152%

5.2%

ENTERTAINMENT

+144%

LIFESTYLE

+141%

CATEGORY

Y-O-Y
GROWTH

MARKET
SHARE*

ENTERTAINMENT

+441%

11.2%

18.7%

FINANCE

+213%

8.8%

5.6%

LIFESTYLE

+62%

11.6%

CATEGORY

* of non-game app revenues

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

Featured App

HBO Now
Time Warner Inc.
HBO Now, developed by Time Warner

person is high compared to other Western

subsidiary HBO, launched in April 2015.

markets.

Benefitting from HBOs high-quality and

The share of games is expected to decrease

popular original content and extensive

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

library, the service ended the year with

paying for mobile entertainment in other

800,000 paying subscribers. It is priced at

forms than games becomes increasingly

$14.99 per month, a premium to Netflix. A

widespread, including video (HBO Now,

key selling point for such video apps is

Netflix and Hulu), music (Pandora, Spotify)

that viewers can watch content on

and social (Tinder, Match.com).

multiple connected devices (smartphone,


tablet, computer, TV, Xbox/PS), which

FEATURED
APP

Copyright 2016 Newzoo

appeals to the cut the cord generation.

Source: Newzoo Premium Global Mobile Market Report

2016 GLOBAL MOBILE


MARKET REPORT

ASIAN-PACIFIC APP MARKET


GAMES AND NON-GAMES GROW ABOVE AVERAGE

ASIA-PACIFIC APP STORE REVENUES


2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY
Game Revenues

14%

Non-Game Revenues

2016

$24.6Bn
APAC

86%

Y-O-Y
GROWTH

MARKET
SHARE*

MUSIC

+128%

6.1%

HEALTH & FITNESS

+79%

1.3%

ENTERTAINMENT

+70%

16.3%

CATEGORY

Y-O-Y
GROWTH

MARKET
SHARE*

LIFESTYLE

+72%

2.2%

COMICS

+37%

12.0%

MEDICAL

+34%

2.9%

CATEGORY

* of non-game app revenues

LOCAL CHAMPIONS RULE


Direct consumer spending in the AsiaPacific 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

Featured App

WeChat
Tencent
WeChat is the dominant chat and

and sub-regions, with much slower growth

messenger app in China, owned by

in mature markets like Japan and Korea and

gaming and internet giant Tencent. The

faster growth in China and Southeast Asia.

app is increasingly used as a discovery

The share of games is expected to decrease

platform for other apps and content, and

from 87.1% to 78.9% in the same period.

integrated with Tencents other key

Non-game apps continue to account for a

properties, such as self-published games

relatively high share of the market, as

and the MyApp Store.

mobile game revenues still offer plenty of


growth potential in the region.

LINE holds a similar position in the


Japanese market, as does Kakao in Korea.

FEATURED
APP

Copyright 2016 Newzoo

Source: Newzoo Premium Global Mobile Market Report

2016 GLOBAL MOBILE


MARKET REPORT

EUROPEAN APP MARKET

GENERALLY FOLLOWS WHERE THE US MARKET LEADS

EUROPEAN APP STORE REVENUES


2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY
Game Revenues

17%

Non-Game Revenues
2016

$6.2Bn
EU

83%

Y-O-Y
GROWTH

MARKET
SHARE*

ENTERTAINMENT

+106%

9.6%

MUSIC

+57%

LIFESTYLE

+55%

CATEGORY

Y-O-Y
GROWTH

MARKET
SHARE*

LIFESTYLE

+74%

4.2%

10.5%

SPORTS

+49%

4.2%

5.1%

MEDICAL

+37%

5.1%

CATEGORY

* of non-game app revenues

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.
The share of games is expected to decrease
from 85.3% to 69.5% in the same period.
Non-game apps account for a smaller share

Featured App

LOVOO
LOOVOO GmbH
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

of the market, as paying for video, music,

buy credits, pay a monthly fee, or earn

and social is more limited. In most markets,

credits by watching videos or

Spotify is the leader in music, with competi-

downloading apps. The French

tion from local champions such as Deezer in

equivalent, Happn, has more than 10

several European countries. Netflix leads


video, with some markets still nascent.

million users and strong momentum in


overseas markets such as Brazil.

FEATURED
APP

Copyright 2016 Newzoo

Source: Newzoo Premium Global Mobile Market Report

2016 GLOBAL MOBILE


MARKET REPORT

LATAM APP MARKET

NON-GAME APPS FLOURISH IN VIBRANT MARKET

LATIN AMERICAN APP STORE REVENUES


2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY
Game Revenues
Non-Game Revenues

36%

2016

$2.1Bn
LATAM

Y-O-Y
GROWTH

MARKET
SHARE*

+109%

9.0%

LIFESTYLE

+91%

HEALTH & FITNESS

+86%

CATEGORY

ENTERTAINMENT

64%

Y-O-Y
GROWTH

MARKET
SHARE*

LIFESTYLE

+85%

2.9%

4.4%

SPORTS

+57%

3.7%

4.0%

MEDICAL

+51%

10.8%

CATEGORY

* of non-game app revenues

BIG SHARE NON-GAMES APPS


Direct consumer spending in Latin Americas
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

Featured App

PlayKids
Movile Internet
PlayKids is a top 5 grossing app in Brazil

average spend per person and smartphone

that offers highly localized preschool

and internet penetration are still low.

cartoons and games for kids on the basis

The share of games is expected to decrease

of a monthly subscription.

slightly from an already very low 65.0% to

The app introduces players to a train with

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

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.

are popular, especially in Brazil.

FEATURED
APP

Copyright 2016 Newzoo

Source: Newzoo Premium Global Mobile Market Report

10

2016 GLOBAL MOBILE


MARKET REPORT

MEA APP MARKET

HUGELY DIVERSE REGION SUITED FOR LOCAL CONTENT

MIDDLE-EAST & AFRICA APP STORE REVENUES


2016 | GAME & NON-GAME REVENUE SPLIT & GROWTH PER CATEGORY
Game Revenues

10%

Non-Game Revenues

2016

$1.8Bn
MEA

90%

Y-O-Y
GROWTH

MARKET
SHARE*

ENTERTAINMENT

+148%

9.4%

MUSIC

+76%

UTILITIES

+75%

CATEGORY

Y-O-Y
GROWTH

MARKET
SHARE*

PRODUCTIVITY

+261%

16.0%

5.9%

LIFESTYLE

+102%

1.7%

4.4%

ENTERTAINMENT

+72%

3.6%

CATEGORY

* of non-game app revenues

LONG TERM POTENTIAL


Direct consumer spending in the Middle
East & Africas 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.
The share of games is expected to decrease
from 91.1% to 79.5% in the same period. This
is still a relatively high share, since game

Featured App

iReader
HK iReader
Techologies Ltd.
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

revenue growth is forecast to grow strongly

widely adopted in the country. The

as the mobile games market is still far from

offline ability is a key feature, as it

saturated. This is not only due to the sheer

allows people to download content when

growth of the online population, but also

connected to internet via Wi-Fi, but

increased spending per person and availability of localized content.

access the content without the need for


a continuous internet connection.

FEATURED
APP

Copyright 2016 Newzoo

Source: Newzoo Premium Global Mobile Market Report

11

2016 GLOBAL MOBILE


MARKET REPORT

US VS. CHINA APP REVENUES


CHINA APP STORE REVENUES GROW >1.5X US

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
Chinas 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.

US APP REVENUES

CHINA APP REVENUES

2015, 2016, 2020 | OVERVIEW

2015, 2016, 2020 | OVERVIEW


Non-Game Revenues

Non-Game Revenues

2015-2020
CAGR

Game Revenues

$14.2Bn

2015-2020
CAGR

Game Revenues

+11.4%

$18.8Bn
21%

43%

$8.3Bn

$9.4Bn

25%

$6.1
Bn

28%

72%

2015

2016

$3.9

$11.6Bn

+24.4%
$8.2Bn

$8.1
Bn

+5.4%

86%

2015

2020

+27.9%

Bn

14%

14%

57%
75%

+18.0%

79%
86%

$14.9

+16.1%

Bn

2016

2020

Y-O-Y
GROWTH

MARKET
SHARE*

SOCIAL NETW.

+184%

24.9%

5.6%

ENTERTAINMENT

+169%

40.5%

+143%

19.1%

BOOKS

159%

8.8%

CATEGORY

Y-O-Y
GROWTH

MARKET
SHARE*

ENTERTAINMENT

+542%

12.3%

FINANCE

+218%

SHOPPING

+63%

Y-O-Y
GROWTH

MARKET
SHARE*

PHOTOGRAPHY

+161%

5.3%

LIFESTYLE

+146%

ENTERTAINMENT

CATEGORY

* of non-game app revenues

Copyright 2016 Newzoo

CATEGORY

Y-O-Y
GROWTH

MARKET
SHARE

MY APP (TENCENT)

+7.5%

17.1%

9.9%

360 MOB. ASSISTANT

-29.6%

12.3%

1.84%

BAIDU MOB. ASSIST.

-3.3%

11.4%

STORE**

**Top Chinese stores, based on monthly active users


Source: Newzoo China App Store Intelligence (July 2016)

Source: Newzoo Premium Global Mobile Market Report

12

2016 GLOBAL MOBILE


MARKET REPORT

GAMES LEAD DATA ANALYTICS

MONETIZATION DATA MAY BE RELEVANT FOR OTHER APPS

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 Zones decision to
rename itself to MZ and expand its ambitions to becoming a leading global real-time data
processing technology company.

KEY GAMING METRICS*


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

iOS

ANDROID

$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

ARPPU / MONTH

The ARPPU on

*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.

is higher than the


Android average:

$23.40

** For iOS, based on an


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

vs. $22.67

Source: deltaDNA

76.6%
87.1%

of 2016 App Revenues


Generated By Games

Apple Introduces New


Fee Structure for
Subscription Models

of 2016 App Revenues


Generated By Games

In order to avoid missing out on a

CONSUMER REVENUES VERSUS


ADVERTISING

potentially large future revenue stream,

Direct spending by consumers is a very

developers

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

Apple will reduce the fees it charges to


of

apps

that

monetize

through (auto-renewable) subscriptions


bought in app. Developers will receive
85% of the revenues after year one
instead of the traditional 70%. To make

apps with strong monetization mechanics

it easier for users to reach the one-year

and nearly all revenues for older apps or

milestone, there will be a 60-day grace

apps that are not designed to, or successful

period; if a user cancels a subscription

in, generating consumer revenues.

but re-subscribes within 60 days, the

FEATURED
MONETIZATION
MODEL
Copyright 2016 Newzoo

subscription length will not reset to zero.


The new policy will come into effect at
the end of this year or early next year.

Source: Newzoo Premium Global Mobile Market Report

13

2016 GLOBAL MOBILE


MARKET REPORT

APP STORE INTELLIGENCE

DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

DEFINITIONS
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.

FEATURED
SERVICE

GAME REVENUES: Revenues generated through in-app


purchases, subscriptions, or paid installs from apps that
are categorized as games by app stores.

METHODOLOGY
Newzoos 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

APP STORE

indicators for individual countries, including internet and

INTELLIGENCE

smartphone penetration rates. Historical app revenue and

Revenues, Downloads, China


Android, iOS, Google Play,

download estimates are corroborated with data from our


strategic partner Priori Data and Newzoos proprietary

www.newzoo.com/apps

app store tracking technology.

TYPICAL USE CASES FOR NEWZOOS GLOBAL APP STORE INTELLIGENCE


PRIORITIZE & SIZE YOUR
MARKET OPPORTUNITY

BENCHMARK WITH
COMPETITORS

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.

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

SPOT BLUE OCEANS BY


TRENDING AND FORECASTING

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.

By trending our key genres and top


performers in that genre on a countryby-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 socalled blue oceans.

Copyright 2016 Newzoo

14

Copyright 2016 Newzoo

ACTIVE
SMART
MOBILE
DEVICES

2016 GLOBAL MOBILE


MARKET REPORT

ACTIVE SMART MOBILE DEVICES

iPHONES RULE, TABLETS AGE WELL AND REMAIN POPULAR

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 consumers 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 Newzoos device intelligence takes this user-centric approach.

HARDWARE VS. SERVICES

DEVICE LIFETIME VS. ACTIVITY

Active mobile device users in individual

Low growth of units shipped in the tablet

markets, and the details of the number of

market does not mean that the tablet is

active devices per country or region, are

dying. Our analysis of July US data show that

crucial

services

over 79% of actively used tablets were

economy. Knowing the number and what

insights

devices that commercially launched before

type of consumers use which device(s) can

2014 (while coincidentally the opposite was

guide

true for iPhones). Evidently a longer lifetime

better

for

the

mobile

investment

decisions,

save

costs, and increase revenues, especially for

of iPads lowers demand for new units, but

mobile

this has no impact on active use of iPads,

centric

companies

such

as

developers and mobile first advertisers.

app

including spending on app-based services.

LIFETIME ANALYSIS OF APPLE iPHONES VS. iPADS


ACTIVE DEVICES VS. LAUNCH DATE OF DEVICE | JULY 2016 | US
iPADS

iPHONES

21%

22%

88%

12%

of All
Devices

of All
Devices

78%

79%

78%

79%

Launched In or After 2014

Launched Before 2014

Copyright 2016 Newzoo

Source: Newzoo Global Device Intelligence

16

2016 GLOBAL MOBILE


MARKET REPORT

MARKET SHARE BY BRAND

APPLE LEADS AND CHINESE BRANDS TAKE MARKET SHARE

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.

CHINA TAKES ALMOST A THIRD


The number of Chinese companies in the top 10 is a
testament to the sheer size of Chinas smartphone and
tablet market, which accounts for 30.2% of actively
used devices worldwide. Apples 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.

On a Global Scale

3Bn

Smartphones
and Tablets Are
Actively Used
(July 2016)

China Represents

30.2%
of Smartphones
and Tablets
Used Globally
(July 2016)

TOP SMARTPHONE/TABLET BRANDS


SHARE OF GLOBAL MONTHLY ACTIVE SMARTPHONES & TABLETS | JULY 2016
RANK

DEVICE
BRAND

SHARE OF MONTHLY
ACTIVE MOBILE DEVICES

APPLE

34.8%

SAMSUNG

23.3%

HUAWEI

5.4%

XIAOMI

3.7%

LENOVO

2.7%

LG

2.5%

SONY

2.4%

OPPO

2.4%

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%

1.
2.
3.
4.
5.
6.

*based on Newzoos global device intelligence model that is based on a sample of


550 million actively used smart devices in July 2016.
Copyright 2016 Newzoo

Source: Newzoo Global Device Intelligence

17

2016 GLOBAL MOBILE


MARKET REPORT

TOP MOBILE BRANDS BY REGION


APPLE 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 REGION


SHARE OF ALL MONTHLY ACTIVE DEVICES | iOS + ANDROID | JULY 2016
NORTH AMERICA
DEVICE BRAND

MIDDLE EAST & AFRICA


SHARE OF
MADS

SHARE OF
MADS

DEVICE BRAND

APPLE

59.4%

APPLE

42.6%

SAMSUNG

28.4%

SAMSUNG

37.9%

LG

13.6%

LG

13.6%

MOTOROLA

10.8%

HUAWEI

11.4%

ZTE

9.9%

SONY

11.3%

LATIN AMERICA
DEVICE BRAND

ASIA-PACIFIC
SHARE OF
MADS

SHARE OF
MADS

DEVICE BRAND

SAMSUNG

48.4%

APPLE

36.6%

APPLE

19.9%

SAMSUNG

11.3%

MOTOROLA

18.1%

HUAWEI

10.1%

LG

13.0%

XIAOMI

10.1%

SONY

12.2%

OPPO

7.1%

EUROPE
DEVICE BRAND

SHARE OF
MADS

SAMSUNG

37.6%

APPLE

28.4%

SONY

13.5%

LENOVO

12.8%

HUAWEI

12.6%

Featured App

Micromax
Micromax
Informatics Ltd.
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.

FEATURED
BRAND
Copyright 2016 Newzoo

The brand is also expanding to Russian


and South Asian markets.

Source: Newzoo Global Device Intelligence

18

2016 GLOBAL MOBILE


MARKET REPORT

TOP DEVICES IN THE US

MORE THAN 65% OF ACTIVE TABLETS IN THE US ARE iPADS

Apples 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.

TOP 10 SMARTPHONE MODELS IN THE US


JULY 2016 | iOS & ANDROID | US
iPhone 6
iPhone 6s

20%

iPhone 5s

30%

iPhone 6s Plus
iPhone 6 Plus

70.4%

15%

Share of
Top 10

2%
2%
3%
4%
4%

Galaxy S5
Galaxy S6
iPhone 5c
Galaxy Note 5

8%
7%

FEATURED
DEVICE SPECS
TOP 3

7%

Galaxy S7
Other

SCREEN SIZE
1. 5-5.5.0 INCH
2. 5.5-6.0 INCH

TOP 10 TABLET MODELS IN THE US

3. 4.5-5.0 INCH

JULY 2016 | iOS & ANDROID | US

CHIPSET
iPad Mini

14%
32%

68.3%
2%
3%
4%
4%

Share of
Top 10

5% 6%

10%
8%

2. QUALCOMM

iPad Air

SNAPDRAGON (410)

iPad 4

3. SAMSUNG
EXYNOS 5 (OCTA)

iPad 2

BATTERY

Galaxy Tab 4 7.0

1. 2500-3000 mAh

iPad 3

2. 2000-22000 mAh

Voyager
Galaxy Tab A 8.0
Other

Copyright 2016 Newzoo

EXYNOS 7 (OCTA)

iPad Mini 2

iPad Air 2

12%

1. SAMSUNG

Source: Newzoo Global Device Intelligence

3. 2200-2500 mAh
Newzoo has 20 variables
available per Android or iOS
device model in 130+ countries

19

2016 GLOBAL MOBILE


MARKET REPORT

DEVICE INTELLIGENCE
DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

DEFINITIONS
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

FEATURED
SERVICE

device as described by the devices software.

METHODOLOGY
Newzoos 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

DEVICE

INTELLIGENCE

Our global device intelligence model uses top-down

Brands, Models, OS,


Screen Size, Type
(Tablet / Smartphone)

analysis to adjust bias and extrapolate to a global,

www.newzoo.com/devices

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

regional, and country level.

TYPICAL USE CASES FOR NEWZOOS GLOBAL DEVICE INTELLIGENCE

SIZE THE ADDRESSABLE


MARKET

SAVE PRODUCT
DEVELOPMENT TIME

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.

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

TRACK LAUNCH IMPACT


OF NEW MODELS

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.

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.

Copyright 2016 Newzoo

20

Copyright 2016 Newzoo

THE MOBILE
CONSUMER

2016 GLOBAL MOBILE


MARKET REPORT

ACTIVE SMARTPHONE USERS

GLOBAL NUMBER OF CONSUMERS USING SMARTPHONES

In 2016, close to a third of worlds 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 worlds #2 market. In the US, 64% of
the population already uses a smartphone, compared to only 16% in India. Newzoos global
active smartphone and tablet user intelligence includes forecasts for 190 individual countries.

SMARTPHONE USERS
2016 | GLOBAL & PER REGION
Smartphone
Users

EU

9%
13%

31%

2016

NAM

19%

APAC

2016

2.3Bn

7.4Bn

Total Global
Smartphone
Users

Total Global
Population

MEA

10%

LATAM

49%

APAC: 49% OF ALL ACTIVE USERS


Asia-Pacific will account for about half of the

clearly illustrates, both regions benefit from

worlds smartphone users in 2016. Together

the double impact of increasing smartphone

with Middle East & Africa, it also has the

and internet penetration, which usually go

greatest growth potential. As the graph below

hand in hand in most emerging markets.

TOTAL POPULATION, ONLINE POPULATION & SMARTPHONE USERS


2016 | GLOBAL & PER REGION
Total Population

7.39Bn

Online Population

Smartphone Users

4.01Bn
3.39Bn

2.27Bn
1.63Bn

1.60Bn
0.76Bn

Global

Copyright 2016 Newzoo

1.11Bn
0.60Bn
0.43Bn

EU

0.36Bn
0.33Bn 0.23Bn

NAM

0.51Bn

APAC

Source: Newzoo Smartphone & Tablet Usage Model

0.30Bn

MEA

0.64Bn
0.37Bn 0.20Bn

LATAM

22

2016 GLOBAL MOBILE


MARKET REPORT

US APP STORE DEMOGRAPHICS


BROADLY SIMILAR IN TERMS OF AGE & GENDER

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.

AGE/GENDER OF APP STORE USERS


2016 | US
M10-20

M21-35

9%
16%

14%

M36-50

M51-65

9%

16%

F10-20

10%
17%

Under the
Age of 20

19%
7% 9%

13%

15%

F36-50

11%

23%

Under the
Age of 20

12%

F21-35

F51-65

9%
15%

14%

10%

16%

11%

21%

Under the
Age of 20

16%

51%

51%

56%

53%

48%

Full-Time Employee

Female

Full-Time Employee

16%

10% 8%

47%
Female

14%

Female

Full-Time Employee

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.

TAKE
AWAYS

Copyright 2016 Newzoo

Amazon users are the most likely to have a full-time


job with 56%, following closely by Apple with 53%.

Source: Newzoo Mobile Consumer Insights

23

2016 GLOBAL MOBILE


MARKET REPORT

US APP STORE DEMOGRAPHICS


AMAZON USERS ARE BIGGEST MEDIA SPENDERS

In addition to consumer age, gender, media consumption, and preferences, the fuller 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. Newzoos mobile consumer insights cover 200 variables across 27 individual
countries.

HOME SITUATION OF APP STORE USERS


2016 | US
Lives Alone

Lives With Parents

17%

24%

49%

Lives With Kids

16%

27%
10%

Lives
With Kids

Lives Together without Kids

40%

Lives
With Kids

45%

17%

40%

49%

18%

22%

Lives
With Kids

45%

18%

17%

14%

60%

54%

46%

Subscribed

of Mobile Gamers Pay

15%

Subscribed

of Mobile Gamers Pay

Subscribed

of Mobile Gamers Pay

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

TAKE
AWAYS

Copyright 2016 Newzoo

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.

Source: Newzoo Mobile Consumer Insights

24

2016 GLOBAL MOBILE


MARKET REPORT

SOCIAL APP USERS


SNAPCHAT HAS THE YOUNGEST DEMOGRAPHIC

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 USERS


2016 | 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%

19%

30%

10%

9%
10%

Under the
Age of 25

10%

10%
10% 10%

4%
5%

6%

8%

55%

14%

18%

52%

female

14%

6% 9%

Under the
Age of 25

20%

7%
13%

14%

23%

43%
female

Copyright 2016 Newzoo

female

8%

31%

26%

Under the
Age of 25

8%

52%

6%

11%

14%

5% 15%

45%

13%

Under the
Age of 25

16%
17%

45%
female

Source: Newzoo Mobile Consumer Insights

25

2016 GLOBAL MOBILE


MARKET REPORT

MOBILE PAYMENT ATTITUDES

SMART DEVICES ENABLE MOBILE PAYMENTS TO SURGE

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.

PREFERENCE* FOR USING MOBILE PAYMENT METHODS


2016 | GLOBAL
2nd Generation Millennials (18-25)

1st Generation Millennials (26-35)

31% 30% 32%

32%

Non-Millennials

34%
26%

17%
11%

13%

Strongly Disagree

13% 12%

15%

Disagree

13% 14%

Neutral

Agree

11%

Strongly Agree

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

Agreement is highest in:

48%

of millennials aged 26-35


prefer to pay using digital
mobile payment methods

TAKE
AWAYS

CHINA

68%

INDONESIA

59%

PHILIPPINES

56%

The majority of consumers have a


preference for digital mobile payment
methods. This is especially true for the
older millennial generation aged 26-35.

Copyright 2016 Newzoo

Source: Newzoo Mobile Consumer Insights

26

2016 GLOBAL MOBILE


MARKET REPORT

AUDIENCE INSIGHTS
DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

DEFINITIONS
SMARTPHONE USER: An individual aged 14+ who
possesses his/her own smartphone and uses it at least
once a month.

FEATURED
SERVICE

ONLINE POPULATION: A person with access to the


internet, either through a computer or a mobile device.

METHODOLOGY
Newzoos 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 Newzoos 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.

AUDIENCE
INSIGHTS

Big Spenders, Demographics,


Stores, Devices, Franchises
www.newzoo.com/
mobile-consumers

TYPICAL USE CASES FOR NEWZOOS GLOBAL AUDIENCE INSIGHTS

ANALYZE YOUR TARGET


MARKET

MATCH CONSUMERS TO
YOUR BRAND & PRODUCTS

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.

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

IDENTIFY THE BIG


SPENDERS PER COUNTRY

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.

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.

Copyright 2016 Newzoo

27

Copyright 2016 Newzoo

COMBINING
METRICS FOR
SUCCESS

2016 GLOBAL MOBILE


MARKET REPORT

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.

SHARE OF (GAME) APP INSTALLS PER DAY OF THE WEEK IN CHINA


JUNE 2016 | ANDROID VERSUS IOS
Android Platform

iOS Platform

20.1%
18.4%
16.1%
12.7%

13.5%

13.3%

16.1%

16.4%

13.2%

14.8%

12.8%
10.9%

11.3%

Monday

Tuesday

10.5%
Wednesday Thursday

Friday

Saturday

Sunday

MONETIZATION VS.
ENGAGEMENT
Games have been the trail

4.49%
Switzerland has the highest
conversion rate on iOS

4.86%
Switzerland also has the highest
conversion rate on Android

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

0.82%

0.40%

image on the left.


For other apps, various
engagement metrics may be

The Philippines has the lowest


conversion rate on iOS

Argentina has the lowest


conversion rate on Android

far more important, but they


allow for similar detailed
comparisons.

Copyright 2016 Newzoo

29

2016 GLOBAL MOBILE


MARKET REPORT

METRICS PRIORITIZE STRATEGY

ONLY A COMBINATION OF METRICS SHOWS TRUE OPPORTUNITY

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.

VARIETY OF MARKET KPIS & METRICS INVOLVED IN SIZING OPPORTUNITIES


APRIL 2016 | METRICS RELEVANT TO PROFILING OPPORTUNITIES IN AUSTRALIA

PRIORITIZE
COUNTRIES
2016 MOBILE GAME
REVENUES

$510M
2015-2019 CAGR

+4.2%
2019 MOBILE GAME
REVENUES

$580M

APP STORE
& GENRE FOCUS
iOS MARKET SHARE

67%
SHARE CASINO
GENRE ON iOS

24.5%
TOP GROSSING
CASINO GAME ON iOS

Heart of Vegas

TARGET GROUP
PROFILING

OPTIMIZATION
METRICS*

DEVELOP FOR
TOP DEVICES

SPENDERS ON iOS

ARPDAU iOS GAMES

TOP 5 DEVICES

1.3M

$0.12

1. iPHONE 6

SHARE OF iOS
SPENDERS PLAYING
CASINO

D7 RETENTION
RATE FOR iOS

2. iPHONE 5S

8.0%

23.7%

3. iPHONE 5

M/F RATIO OF CASINO


PLAYERS ON iOS

SHARE OF iOS
SPENDERS THAT
CONVERTED ON D0

4. iPHONE 6 Plus

55% Male

21.8%

5. iPAD Air

*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.

For Each Individual


Monetization Metric, the
Lowest and Highest
Scores Differ

FEATURED
FACT

Copyright 2016 Newzoo

>10X

Depending on Country,
Genre, or Platform

30

2016 GLOBAL MOBILE


MARKET REPORT

MONETIZATION METRICS
DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

DEFINITIONS
ARPDAU: Average Revenue Per Daily Active User.
ARPPU: Average Revenue Per Paying User.
CONVERSION RATE: Share of users that make at least

FEATURED
SERVICE

one purchase in a given time period.


RETENTION RATE: Share of users still using an app
after x amount of days.

METHODOLOGY
Our monetization metrics service combines and aggregates actual data collected continuously from hundreds of
games with various (grossing) rank positions and representing 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.

MONETIZATION
METRICS

Conversion, Retention,
ARPPU, ARPDAU, Genres
www.newzoo.com/metrics

TYPICAL USE CASES FOR NEWZOOS MONETIZATION METRICS INSIGHTS


OPTIMIZE MARKETING
SPEND

PRIORITIZE YOUR
INTERNATIONAL ROLL-OUT

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.

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

BENCHMARK YOUR
APP WITH YOUR
COMPETITORS

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.

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.

Copyright 2016 Newzoo

31

Copyright 2016 Newzoo

FEATURE:
CHINA
ANDROID
ECOSYSTEM

2016 GLOBAL MOBILE


MARKET REPORT

CHINA ANDROID ECOSYSTEM


NAVIGATING CHINAS MOBILE ECONOMY

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.

DEVICE USAGE: ANDROID VS. iOS


JULY 2016 | CHINA
Of All Smartphones &
Tablets Used in China,
Android Devices
Represent

27%

73%

73%

TOP 5 ANDROID APP STORES IN CHINA

STORE DIVERSITY
A unique feature of Chinas mobile

JULY 2016 | BY INSTALL RATE | CHINA

ecosystem is the large amount of


third-party Android stores, filling
the void that the ban on Google
Play created. Tencent operates the

STORE / COMPANY

INSTALL RATE

1.

MY APP
TENCENT

23.6%

2.

360 MOBILE
ASSISTANT
QIHOO 360

17.8%

3.

BAIDU MOBILE
ASSISTANT
BAIDU

16.7%

4.

MIUI APP
STORE
XIAOMI

15.0%

5.

HUAWEI
APP STORE
HUAWEI

11.6%

most popular store by install rate,


unsurprising given its huge scale.
360 Mobile Assistant ranks #2,
aided by Qihoos strong reputation
for security.

Baidu Mobile Assistant

undoubt-

edly still benefits from Baidus


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.

Copyright 2016 Newzoo

33

2016 GLOBAL MOBILE


MARKET REPORT

ANDROID APP PERFORMANCE

ANALYZING MONTHLY ACTIVE USERS ACROSS ALL STORES

An epic battle for dominance of Chinas ride-hailing market played out over the past few
years, not in the least because of Ubers 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.

ANALYSIS OF ANDROID TAXI HAILING APPS: UBER VS. DIDI


FEB JULY 2016 | ANDROID ECOSYSTEM | CHINA

DIDI ACQUIRES UBER CHINA


Chinas Largest
Mobile Smart
Data Company

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.

TalkingData is Chinas largest,


independent Smart Data service platform
that focuses on the mobile app
marketplace. TalkingData provides bestin-class Smart Data products and
services, such as mobile app analytics,
mobile ad tracking, mobile game
analytics, mobile market intelligence,

FEATURED
PARTNER
Copyright 2016 Newzoo

DMP (Data Management Platform), and


industry consulting.

34

2016 GLOBAL MOBILE


MARKET REPORT

CHINA APP STORE INTEL

DEFINITIONS, METHODOLOGY, AND TYPICAL USE CASES

DEFINITIONS
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.

FEATURED
SERVICE

METHODOLOGY
Working closely with our partner TalkingData, we provide
clients with in-depth market intelligence on the complete
Chinese mobile ecosystem. TalkingData is Chinas 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.

CHINA APP STORE


INTELLIGENCE

Revenues, Downloads, China


Android, iOS/Google Play,
www.newzoo.com/apps-china

TYPICAL USE CASES FOR NEWZOOS CHINA APP STORE INTELLIGENCE


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

TRACK MARKET SHARE OF


CHINAS INDUSTRY
LEADERS

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.

Last month, Tencents growth was


significantly stalled. Meanwhile,
Alibabas unique new apps were
rapidly growing, providing a
positive prognosis for the coming
months.

Copyright 2016 Newzoo

35

Copyright 2016 Newzoo

FEATURE:
POKMON GO

2016 GLOBAL MOBILE


MARKET REPORT

FEATURE: POKMON GO

SHAKING UP THE MOBILE WORLD IN MULTIPLE WAYS

Pokmon 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.

POKMON GOS MASS SUCCESS: DAILY DOWNLOADS & REVENUES


2016 | GLOBAL | iOS & GOOGLE PLAY | FOR FIRST 82 DAYS SINCE LAUNCH

TOTAL DOWNLOADS

TOTAL GROSS REVENUES*

~550M

~$470M

IN FIRST 80 DAYS

IN FIRST 80 DAYS

*Gross revenues include app store fees

IS POKMON GO A HYPE?
It is and is not. If sudden mass appeal

peak of $16 million per day in the beginning

characterizes a hype, Pokmon GO fits the

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

definition more than anything else. When

for app stores) over the past weeks. There

almost one in four smartphone or tablet

are still approximately 700,000 new down-

users in the world downloads and plays a

loads every single day. Moreover, Pokmon

game, its definitely a mass phenomenon, one

GO is yet to officially launch in South Korea

thats disrupted public life at many locations

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

across the globe. If a hype means that the

game, City Monsters Go, was launched by

popularity is short-lived, Pokmon GO is not

publisher Lequsy in China and received rave

a hype. Revenue levels have dropped from a

reviews.

Copyright 2016 Newzoo

Source: Newzoo App Store Intelligence

37

2016 GLOBAL MOBILE


MARKET REPORT

POKMON GOS MASS APPEAL


MASS AUDIENCE RULES

Pokmon GO has leveraged the power of the Pokmon 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
Pokmon Red, Blue, or Green between 1996 and 1999. Females make up 43% of Pokmon GO
gamers, a testament to the original franchise, which crossed the gender divide.

AGE/GENDER & MOBILE GAMING EXPERIENCE OF POKMON GO PLAYERS


2016 | AMONG ONLINE POPULATION AGED 10-50 | US, UK, GERMANY & FRANCE
AGE/GENDER

MOBILE GAMING EXPERIENCE

OF POKMON GO PLAYERS*

10%
20%

19%

24%
SCOPE OF
DATA

43%

of Players
Are Female

13%

OF POKMON GO PLAYERS

24%

Have Not
Played Another
Top 30 Mobile
Franchise

26%

76%
12%

M10-20

M21-35

M36-50

F10-20

F21-35

F36-50

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

*Has played Pokmon Go in the past three months

IS POKMON GO BRINGING IN NEW


(MOBILE) GAMERS?
The answer is yes; 24% of Pokmon GO

TOP COUNTRIES BY DOWNLOADS


POKMON GO (iOS & GOOGLE PLAY)

players hadnt, in the past three months,

1.

US

played any other top mobile franchise in our

2.

UK

research. This suggests that the title has

3.

Japan

4.

Spain

5.

Germany

gaming on other platforms, but 8%, or

6.

Italy

around 6.6. million, had not played any of the

7.

France

100 researched franchises in the past three

8.

Australia

9.

Ireland

10.

Canada

attracted more than 20 million new mobile


gamers across the US, UK, Germany, and
France alone. Some of these were already

months. This appeal to a new gaming


audience has made Pokmon GO the most
popular franchise across the four countries.

Copyright 2016 Newzoo

Source: Newzoo 2016 Game Franchise Consumer Insights

38

2016 GLOBAL MOBILE


MARKET REPORT

POKMON GOS UNIQUENESS


SUCCESS ACCELERATED

The most interesting fact about the Pokmon GO player base is that it appears to be a
broadly traditional gaming audience, despite its newness. After players of the regular Pokmon
franchise, Dota 2 gamers are most likely to be playing Pokmon GO (80%), while Candy Crush
Saga gamers are the least likely (46%).

MOST ENJOYED ASPECTS OF POKMON GO


2016 | VS. DOTA 2 & CANDY CRUSH SAGA | US, UK, GERMANY & FRANCE

WHAT DO POKMON GO PLAYERS


MOST ENJOY ABOUT THE GAME?
Pokmon GOs popularity is based on a

FEATURED
POKMON GO
CLONE

fusion of interests between the general


mobile audience and the preferences of its
hard core fan base. While the most popular
aspect of Pokmon GO was how easy it was

City Monsters Go
Lequsy

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 Pokmon
GO at odds with casual mobile games and
places it closer to traditional hard core
games. For example, Candy Crushs most
popular feature was also how easy it was to
start

(49%

of

competitiveness
important

than

players
was
in

liked
ranked

Pokmon

this)

but

as

less

GO

A Pokmon-GO-type game, City


Monsters Go, was launched in
September by publisher Lequsy in
China to rave reviews.

(18%).

Meanwhile, players of MOBAs like DOTA 2


rank

competitiveness

highly

(25%)

and

prefer openness and role-playing elements.

Copyright 2016 Newzoo

Source: Newzoo 2016 Game Franchise Consumer Insights

39

Copyright 2016 Newzoo

NEWZOO
MOBILE
INTELLIGENCE

2016 GLOBAL MOBILE


MARKET REPORT

MOBILE INTELLIGENCE SUITE


GLOBAL TRENDS TO IN-DEPTH DATA ON 190 COUNTRIES

Newzoos Mobile Intelligence suite of services aims to offer complete global coverage to
all industries that put mobile at the center of their strategy, product development, or
marketing. Subscriptions combine the most relevant market intelligence services for our
clients and are scoped by region, frequency of (custom) reporting, and service level.

GLOBAL MOBILE MARKET REPORT | SUBSCRIPTION


ANNUAL REPORT & QUARTERLY UPDATES

FIRST QUARTERLY UPDATE: Q1 2017

DASHBOARD

INDIVIDUAL DATA PRODUCTS | SUBSCRIPTIONS & CUSTOM PROJECTS

DEVICE

STORE

APP

INTELLIGENCE

INTELLIGENCE

INTELLIGENCE

Brands, Models, OS, Screen


Size, Tablet/Smartphone

Chinese Android Stores,


iOS/Google Play, Rankings

App & Game Downloads,


Revenues, Per Store

MONETIZATION

ENGAGEMENT

AUDIENCE

Conversion, Retention,
ARPPU, ARPDAU, Genres

Session Length, Time of


Day, Genres, Mau (China)

METRICS

METRICS

INSIGHTS

Big Spenders, Demographics,


Stores / Devices, Franchises

www.newzoo.com/mobile
Copyright 2016 Newzoo

41

2016 GLOBAL MOBILE


MARKET REPORT

OUR PARTNERS & PITCH


SCOPE OUR SERVICES TO YOUR NEEDS

Newzoos Mobile Intelligence suite is powered by proprietary models, algorithms, and


predictive analytics that combine numerous sources of data, including our strategic
partners that each are global leaders in their respective field. These partners are also
involved in performing custom projects that are outside of the standard product scope.

WORLD-LEADING STRATEGIC PARTNERS

TalkingData is Chinas largest, independent Smart


Data service platform that focuses on the mobile
app marketplace. TalkingData provides best-inclass 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 industrys leading realtime 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

Pushwoosh, with five years of expertise in push


notifications technology, sends over 10 billion
push notifications per month and reaches more
than 1.2 billion devices, making it a global leader in
the push notifications market. The firm has built
solid relationships with more than 50,000 clients
and more than 100,000 apps receive push
messages powered by Pushwoosh.
www.pushwoosh.com

WORKING WITH US
The current pace of change in consumer behavior, media, and technology requires a new type
of intelligence firm that is agile, innovative, truly global and ahead of the curve. We aim to be
recognized as the #1 provider of games, esports and mobile intelligence in the world.

PARTNER
MODEL

PRODUCT

SUBSCRIPTIONS

CUSTOM
PROJECTS

www.newzoo.com/mobile
Copyright 2016 Newzoo

42

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