The State of App Downloads and Monetization Report : Global Q3 2015
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In Q3 2015, China surpassed the U.S. as the leading app download destination, driven by an increase in m-commerce and smartphone penetration. Android maintained dominance over iOS in app consumption, yet iOS grew in popularity, particularly in the Asia Pacific region. App install costs and earnings varied significantly by region, with North America being expensive for developers but rewarding compared to other markets.
The State of App Downloads and Monetization Report : Global Q3 2015
- 1. The State of App Downloads and Monetization InMobi Insights Page Q3 2015 | November 2015
- 2. Table of Contents Insights Key Metrics by Region and OS App Installs - Deep Dive App Monetization - Deep Dive 1 2 3 4
- 3. Cost per Install (CPI) Index The cost incurred by an advertiser to get an app installed by a user on his or her device. All cost data in this presentation is indexed to the Global CPI on the InMobi Network. Country CPI Index = --------------------- X 100Country CPI Global CPI If an imaginary country Krypton’s CPI = $0.53, and Global CPI = $2.1, then Krypton CPI Index = ------------- X 100 = 25 $0.53 $2.1 3
- 4. Effective Cost per Mile (eCPM) Index The earnings of a developer on delivering a thousand impressions. All earnings data in this presentation is indexed to the Global eCPM on the InMobi Network. Country eCPM Index = --------------------- X 100Country eCPM Global eCPM If an imaginary country Krypton’s eCPM = $0.53, and Global eCPM = $2.1, then Krypton eCPM Index = ------------- X 100 = 25 $0.53 $2.1 4
- 5. Insights1
- 6. China surpasses the US to become the #1 app destination of the world Android continues to dominate iOS in share of ad impressions and app installs globally. US commands the least premium for iOS installs App installs costs (CPI) and eCPMs are a function of smartphone penetration. Countries in Asia lead m-Commerce app installs this season Indonesia is the most expensive iOS country relative to Android. m-Commerce app installs grew by over 100% to rank #2 With the travel season upon us. Travel and Business app installs also witnessed growth of over 50 - 100%. As competition across categories intensifies, CPIs across categories converge to a common average Education continued to trump Games to earn app developers the highest eCPMs. 1. 2. 3. 4. 5. Key Insights 6
- 7. CPI and eCPMs by Region OS Share of Ad Impressions by Region OS Share of Ad Installs by Region CPI and eCPMs by OS Key Metrics by Region and OS2
- 8. 54 71 63 69 20 11 306 143 15 9 150 74 5 4 49 37 5 3 117 70 1 1 93 85 Asia Pacific North America Europe Latin America Middle East Africa % Impressions eCPM Index% Installs CPI Index North America continues to be an expensive yet rewarding market for app developers Asia Pacific tops as the growing market with an eager audience high on apps and consumption CPI and eCPMs by Region 8
- 9. OS Share of Ad Impressions by Region Asia Pacific North America Europe Latin America Middle East Africa iOS Android 59% 26% 73% 33% 87% 12% 62% ShareofAdImpressions Android has a near monopoly in app consumption across most markets given its large install base. Nokia fares considerably well in Africa. 9 38% 37% 42% 6%66%
- 10. Asia Pacific North America Europe Latin America Middle East Africa iOS Android 49% 51% 30% 70% 14% 86% 92% 7% 71% 28% 60% 6% ShareofAppInstalls OS Share of App Installs by Region The gap between Android and iOS further reduced in Asia Pacific as iOS gains popularity 10
- 11. CPI and eCPMs by OS 303 135 311 171 38 34 86 126 87 65 115 122 58 77 134 115 81 55 207 94 118 75 340 71 44 36 109 51 North America boasts of higher eCPMS across iOS and Android. CPI eCPM North America Asia Pacific Global Africa Middle East Europe Latin America eCPM CPI Note : CPI and eCPMs are presented as indexed values 11
- 12. Top App Installs Destinations CPI in Key Markets Per Capita Installs by Markets Cost per Install by OS iOS Premium Over Android App Install by Category Ranking m-Commerce installs by Countries CPI and App Install Growth by Category CPI Trends across App Category by OS App Installs - Deep Dive3
- 13. 35% 14% 11% 7% 6% 4% 4% 3% 2% 2% 1% 1% 1% 1% 0% 0% 7% 14% 21% 28% 35% China Indonesia USA India Philippines Malaysia Russia Brazil Saudi Arabia South Korea France United Kingdom Taiwan Vietnam Spain %shareofappinstalls Top App Installs Destinations • China overtakes Indonesia and USA to become the leading app installs destination. 13
- 14. CPI in Key Markets China Indonesia USA India Philippines Malaysia Russia Brazil Saudi Arabia South Korea 0 130 260 0% 25% 50% 75% CPIIndex Smartphone Penetration* * Source : eMarketer 14 App installs were more expensive in markets with higher smartphone penetration
- 15. Per Capita Installs by Markets China Indonesia USA India Philippines Malaysia Russia Brazil Saudi Arabia South Korea 0 130 260 0 15 30 CPIIndex Per Capita Installs* * Per Capita Installs is represented by the ratio of installs per 100 unique users in a country 15 Classic laws of economics applies to app installs - Higher costs drove down per capita installs
- 16. Cost per Install by OS 100 80 61 255 51 77 131 85 67 174 121 88 51 48 259 48 68 119 76 64 127 115115 80 141 251 81 92 170 192 80 222 248 Global China* Indonesia USA India Philippines Malaysia Russia Brazil Saudi Arabia South Korea Country CPI Index Android CPI Index iOS CPI Index * Due to the absence of Google Play Store in China, the Android metrics are not representative of the mobile app market 16
- 17. -3% 25% 32% 34% 43% 57% 67% 74% 115% 152% 197% 0% 100% 200% USA Brazil Global Philippines Malaysia China* India Saudi Arabia South Korea Russia Indonesia iOSPremium iOS Premium % = (iOS CPI - Android CPI) / Android CPI CPI Premium % – iOS over Android 17 USA has the lowest iOS premium while Indonesia has the highest among the top 10 app install markets * Due to the absence of Google Play Store in China, the Android metrics are not representative of the mobile app market
- 18. App Install by Category 68% 11% 5% 6% 4% 6% Games Shopping & Lifestyle Social & Communication Travel Entertainment Others 54% 20% 12% 3% 3% 8% Q3 2014 Q3 2015 18 • App installs grew 36% between Q3‘14 and Q3’15. Games continue to lead the app install craze. • Enamored by the mobile marketplace and the convenience of shopping on mobile, has caused emerging markets to drive growth in m- Commerce app installs
- 19. 47% 43% 34% 33% 12% 0% 25% 50% South Korea Saudi Arabia China Indonesia India iOSPremium Share of Shopping & Lifestyle installs in each country Ranking m-Commerce installs across Countries 19 Amongst the top 10 app install destinations, Shopping & Lifestyle ranks amongst the top 5 categories of app installs * Due to the absence of Google Play Store in China, the Android metrics are not representative of the mobile app market 1 Ranking of Shopping & Lifestyle app installs in each country 2 1 2 4
- 20. Games Shopping & Lifestyle Travel Social & Communication Business 0 60 120 -50% 40% 130% CPIIndex Install Growth CPI and App Install Growth by Category Note : Install Growth is calculated against the previous quarter • With the holiday season upon us, m-Commerce, Travel and Business apps witnessed > 50% Q-on-Q growth in installs. • CPIs continued to remain high for Games and Communication began to catch up. 20
- 21. 0 70 140 Q1 2015 Q2 2015 Q3 2015 CPIIndex Games Shopping & Lifestyle Travel Social & Communication Entertainment CPI Trends across App Category by OS Note : Install Growth is calculated against the previous quarter • As competition across app categories intensifies, the disparity between CPIs declines. 21 0 70 140 Q1 2015 Q2 2015 Q3 2015CPIIndex Games Shopping & Lifestyle Travel Social & Communication Entertainment
- 22. Ad Impressions by Device Type Tablets Outperform Smartphones In-App Ads eCPM = 2x of Mobile Web Top 5 Publisher Categories by eCPM eCPM and Smartphone Penetration eCPM and CPI 4 App Monetization - Deep Dive
- 23. 2014 Q3 2014 Q4 Q1 2015 Q2 2015 Q3 2015 Smartphone Tablet Ad Impressions by Device Type + 100% - 59% + 153% PH 23 - 30% - 25% X% = % change over previous quarter - 45% + 50% + 29%
- 24. 101 63 126 75 CTR Index eCPM Index Smartphone Tablet 85 117 161 153 CTR Index eCPM Index Smartphone Tablet Tablets earned higher eCPMS though the gap between smartphones and tablets was the least in the case of Android. Tablets Outperform Smartphones 24 95 81 138 102 CTR Index eCPM Index Smartphone Tablet All OS
- 25. In-App eCPMS are almost 2x times those of mobile web ads and account for the majority of installs % Impressions 84 112 91 93 99 16 41 43 7 117 CTR eCPM Index In-App Mobile Web % Installs CPI Index In-App Ads eCPM = 2x of Mobile Web 25
- 26. Top 5 Publisher Categories by eCPM Education trumped Games to earn app developers the highest eCPMs 204 188 156 108 104 Education Games Entertainment Tools Sports 26 X = eCPM Index
- 27. eCPM and Smartphone Penetration China Indonesia USA India Philippines Malaysia Russia Brazil Saudi Arabia South Korea 0 75 150 0% 25% 50% 75% eCPMIndex Smartphone Penetration* * Source : eMarketer • China has witnessed substantial growth in smartphone adoption over the last quarter. • M-Commerce is driving growth in eCPMs in China • Users are more willing to spend money via mobile in mature markets compared to others. 27
- 28. eCPM and CPI China Indonesia USA India Philippines Malaysia Russia Brazil Saudi Arabia South Korea 0 75 150 0 127.5 255 eCPMIndex CPI Index • CPIs and eCPMs track each other in most markets. • South Korea has relatively higher CPIs compared to the eCPMs it delivers for publishers 28
- 29. The State of Mobile App Installs and Monetization METHODOLOGY InMobi’s State of App Installs and Monetization Series provides network insights for app developers, publishers and advertisers. Through analysis of millions of impressions and installs served each month, this report showcases the latest trends within the mobile app ecosystem on our network. ABOUT THE RESEARCH The information contained in this report is based on data collected through InMobi’s monetization and installs platform. Only data with all standard fields completed was included for analysis. Percent change is calculated using absolute numbers, quarter over quarter. Keep in mind that CTR performance may not be indicative of ad effectiveness. Many brand advertisers track other metrics, such as engagement rates, interaction rates, dwell time, etc. 29
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