NMDS, November 7th, 2013

APP STORES- ANALYTICS AND TRENDS

@anders_lykke / @prioridata

WWW.PRIORIDATA.COM

AGENDA

ABOUT APP STORE ANALYTICS Who am I? Who is Priori Data? What is App Store Analytics? App Economy – Size, Growth and Characteristics The Challenge App Architecture – breaking the app store down to relevant

markets Case-Study: Sudoku Games Invitation to participate in BETA

APPENDIX Fastest Growing Consumer Trends in the App Stores

Globally For Sweden

Size of the Scandinavian App Markets

2

WHO AM I?Anders, Sales and a lot of other stuff…

4

6

APPS MAKE MY LIFE EASIER

7

8

Consumers download apps to solve problems and/or to enrich their lives

We are monitoring consumer trends in the app economy

WHAT IS PRIORI DATA?

10

Priori is a Berlin based app store analytics provider

Formally launched in June 2013 by acquiring the rights to a historical database and on-going data feed

Access to ~80% of all global apps, as well as 2.5 years of historical data

We leverage this data in two ways: We publish a series of Market

Intelligence Reports (pdf – most are free) Do consulting work on Custom Data Projects

ABOUT PRIORI

SOME BIG PLAYERS IN THE INUSTRY

WHAT IS APP STORE ANALYTICS?

Collection

Structuring &

Processing

Enrichment

Delivery

We retrieve and store publicly

available information

We estimate download and

revenue for every app (regression

model + data exchange with

developers)

We convert this data into

information and insights on

consumer trends

13

OUR PROCESS

MONITORINGMEASURING

Maintaining app information for:

2,000,000+ appsevery app, every price change, every version

250,000 publishersfrom hobby developers to public

companies

100,000 new apps per month

6bn downloads per month

15mm user comments per month

30 countrieslocal content, local monetization, local leaders

3 platformsGoogle Play, iOS (iPhone, iPad),

Windows Phone

50 categories

550 app sub-categories

120 game sub-categories

14

OUR DATABASE

APP ECONOMY SIZE AND GROWTH

The App Store:

258.081 publishers (about 7k new each month)

3.8 apps per publisher on avg.

7.171 downloads/month per publisher on avg.

Google Play:

269.803 publishers (about 11k new each month)

3.7 apps per publisher on avg.

13.574 downloads/month per publisher on avg.

16

PUBLISHER LEVEL INFORMATION (as of Oct. 8th)

Ca. 1 million apps (on both GP and iOS) iOS: 600k free / 400k paid ($332.5m revenue/month) Android: 800k free / 200k paid ($32m revenue/month)

In-app purchase is a growing trend on both platforms: On iOS 11% of apps have in-app purchase (IAP present

in 60% of downloaded apps in September) On GP: 5.2% of apps have in-app purchase (IAP present

in 28% of downloaded apps in September)

…4bn vs 2bn downloads per month

17

NUMBER OF APPS AND MONETIZATION

2012 2013 2014 2015 2016 20170

10

20

30

40

50

60

70

80

$bn total rev.$bn rev IAP

Source: Gartner, 2013

$80 BN APP STORE REVENUE BY 2017

19

It is young

It is growing at unprecedented speed

2 very dominant distribution platforms (Gartner says 90% of downloads this year)

Difficult to obtain information on the market

Everybody wants in

KEY OBSERVATIONS ON THE APP ECONOMY

THE CHALLENGE

There is an app for everything but only around 40 native app store categories for developers to place their app in and for consumers to browse

Each native app store category is crowded with highly differentiated apps

We think there is a real opportunity to make smarter decisions if you can identify the actual market of an individual app.

21

APP ARCHITECTURE & SUB-CATEGORIES

23

AppArchitecture is Priori’s proprietary app taxonomy, or classification system

We mine app titles and descriptions to identify “clusters” of apps using natural language processing algorithms

This process is done dynamically each month across our database, and supplemented by manual review

The end result: a “sub-category” designation for ~90% of the apps in our database

WHAT IT IS

35-40 Categories 750 Sub-Categories

Thus a Sudoku Game is no longer just an app belonging to the the Puzzle Games Category (iOS). It can now be analyzed against all other apps in the ”Sudoku & Crosswords” Sub-Category . 24

FALL 2013 – article by Priori

A Tool: Sub-Category Tracker

27

Priori Sub-Category Tracker

Sudoku & Crossword Puzzle Sub-CategoryApple iTunes Store / August 2013(Data Collection 09 Aug. – 09 Sep. 2013)

28

Sudoku & Crossword Puzzle apps are logic-based puzzle games, largely belonging to the iTunes store native category “Puzzle Games”.

Sudoku & Crossword Puzzle is the 56th largest Priori sub-category in terms of global August 2013 downloads, the 151th largest in terms of apps, 73rd in terms of active users and 178th in terms of publishers. It is comprised of:

1,676 apps964 publishers7.8M monthly downloads39M active users

29

We want to know more about the performance, opportunities, and competitive landscape in this sub-category. For instance:

Trend: How has this sub-category performed in the near-term?

Size: How big is it across geographies?

Growth: How fast is it growing across geographies?

Structure: What does the market structure look like across geographies?

Top 3: Who are the top players in each geography?

MONTH OVER MONTH GROWTH COMPARISON:Sudoku & Crosswords VS Puzzle Games VS iOS

31Global Performance

Trend Size Growth Structure Top 3

June July August

25%

50%

0%

-25% -25.5%

0.1%

3.3%

25.9%

12.1%

6.0%

46.6%

7.8%

-25.4%

GLOBAL MONTH-OVER-MONTH GROWTH COMPARISON

SHARE OF DOWNLOADS BY COUNTRYIs the Market large enough to Enter?

33

Current Month Downloads in Country /Global Current Month Downloads

Size and Growth By Country

Trend Size Growth Structure Top 3

Share of Downloads by Country

34

Current Month Downloads in Country /Global Current Month Downloads

Size and Growth By Country

Trend Size Growth Structure Top 3

Share of Sub-Category by Country

MONTH OVER MONTH GROWTH BY COUNTRY- Are the Market Dynamics in my Favor?

36

(Current Month Downloads – Prior Month Downloads) /

Prior Month Downloads

Size and Growth By Country

Trend Size Growth Structure Top 3

Growth by Country

37

(Current Month Downloads – Prior Month Downloads) /

Prior Month Downloads

Size and Growth By Country

Trend Size Growth Structure Top 3

Growth by Country

DOWNLOAD DISTRUBUTION – TIERS 1-3How many Installs can I expect?

39Market Structure By Country

Trend Size Growth Structure Top 3

Download Distribution

40Market Structure By Country

Trend Size Growth Structure Top 3

Download Distribution

41

Tier Apps #1 - #3 Apps #4 - #10 Apps #11 - #25

Russia

% of Downloads 81% 8% 6%Avg. Downloads

Per App 116,326 5,900 1,628

South Korea

% of Downloads 91% 6% 2%Avg. Downloads

Per App 64,539 2,243 297

Spain

% of Downloads 79% 11% 7%Avg. Downloads

Per App 83,237 5,616 1,580

Sweden% of Downloads 56% 22% 17%Avg. Downloads

Per App

13,030

2,544

783

Switzerland

% of Downloads 52% 25% 19%Avg. Downloads

Per App 14,139 3,417 1,039

United Arab Emirates

% of Downloads 60% 22% 15%Avg. Downloads

Per App 4,580 824 221

Market Structure By Country

Trend Size Growth Structure Top 3

Download Distribution

TOP 3 PLAYERS BY COUNTRY

43

Rank Title Publisher

Russia

1 101-in-1 Games Anthology Nordcurrent

2 ▻Sudoku Finger Arts

3 Big Bad Sudoku Book Bad Weasel, LLC

South Korea

1 101 미니게임즈 베스트 컬렉션 Nordcurrent

2 로직 스퀘어 (Logic Square) Dev Square

3 ▻Sudoku Finger Arts

Spain

1 101-in-1 Games Anthology Nordcurrent

2 ▻Sudoku Finger Arts

3 Numberama 2 Okroshka Lab

Sweden1 ▻Sudoku Finger Arts

2101-in-1 Games

Anthology Nordcurrent3 Sudoku :) TicBits Ltd

Switzerland

1 ▻Sudoku Finger Arts

2 101-in-1 Games Anthology Nordcurrent

3 Sudoku :) TicBits Ltd

United Arab Emirates

1 ▻Sudoku Finger Arts

2 Cross Match Sticks S.H. InfoTech

3 Sudoku Free Optime Software LLCTop 3 By Country

Trend Size Growth Structure Top 3

TOP APPS

44

Managing the success of an app is no easy task and this is no definitive source

Defining your market based on the nature of your product (your app) and understanding consumer trends around it could be key

Who do you benchmark against? Investors want to know about the market you

are targeting Are there any emerging consumer trends you

should tap into? (please see Appendix for suggestions)

FINAL THOUGHTS

45

Interested in participating in the BETA around the Sub-Categories? (expected launch around 1st of December 2013).

Please use this link to sign up: https://docs.google.com/a/prioridata.com/forms/d/1x-CBG8Hfz2ijax4hnwGlblxD-6Nc5XfZmO-BIRAVros/viewform

.

BETA INTEREST LIST SIGN-UP

”This is an awesome tool for developers to decide on which market to target their promotions to and also to maybe identify markets for which they should be localizing their apps.” – Gurinder, Hashcube

PRIORI DATA GMBHMarkgrafenstrasse 36

10117 Berlin, Germany

PHONE: +1-650-614-1681

EMAIL: ANDERS@PRIORIDATA.COM / INFO@PRIORIDATA.COM

WWW.PRIORIDATA.COM

Thank you!

Appendix: Fastest Growing (m/o/m) Consumer trends in the App Stores (Sub-Categories). Global + Sweden

iOS Top 10 Fast Growing Global – all Sub-Categories

iOS Top 10 Fast Growing Global – Gaming Sub-Categories

iOS Top 10 Fast Growing Sweden – All

Note: For Sweden we discarded any Sub-Categories with less than 2k in-month downloads

iOS Top 10 Fast Growing Sweden – Gaming Sub-Categories

Note: For Sweden we discarded any Sub-Categories with less than 2k in-month downloads

Android Top 10 Fast Growing Global – all Sub-Categories

Android Top 10 Fast Growing Global – Gaming Sub-Categories

Android Top 10 Fast Growing Sweden – All

Note: For Sweden we discarded any Sub-Categories with less than 2k in-month downloads

Android Top 10 Fast Growing Sweden – Gaming Sub-Categories

Note: For Sweden we discarded any Sub-Categories with less than 2k in-month downloads

56

In Month Downloads in Scandinavia (September)

Country Android Growth (m/o/m)

iOS Growth (m/o/m)

Sweden 21,262m (0.6%)

-10.8% 18.28m (1.0%)

15.6%

Denmark 11,13m (0.3%)

-8.1% 13.63m (0.7%)

13.3%

Norway 7,31m (0.2%)

-9.2% 10.62m (0.6%)

26.8%