1. Uncovering the consumer journey from app discovery to loyalty
The Mobile App Experience

2. Mobile apps are quickly becoming a part of consumer everyday life in the US. More then nine in ten smartphone and tablet users now use apps
regularly.The time sensitive consumer who wants a faster, more intuitive experience for repetitive tasks like making a payment, looking up weather
information or checking traffic details prefers mobile apps over websites. A third of smartphone owners are even willing to pay for an app resulting
in a $10 billion mobile app market for the US market. The revenues are primarily driven by e-book purchases followed by gaming app downloads
and in-game purchases.
In an over crowded app market, it is more important than ever for developers and brands to cut through the noise and win consumer attention.
Word of mouth from friends, family and colleagues is the most effective tool in helping customers discover an app and also download it. Other
factors that influence app download include discounts especially for restaurant apps and offline interaction for shopping apps. Consumers also pay
attention to price, description and reviews on the app store before downloading an app.
But not all apps that get downloaded are used regularly. Consumers abandon apps when they lose interest in them or when they stop being
beneficial. Social media apps are the most likely to be used on a daily basis. Besides social apps, people regularly use apps that make their lives
easier. Ease of use, design, cross-device functionality and new content also help in encouraging regular app usage. Apps that engage customers in
an offline setting are more likely to have regular users.
When it comes to regaining lost app users, discounts can prove effective in the short term but peer recommendation leads to a more sustainable
engagement. Apps can altogether avoid having to re-gain lost uses by focusing on retaining the ones who download it. Apps that engage users are
more likely to retain them in the long run. Apps can engage users via messaging apps, which have the highest retention rates among all app
categories. Customers prefer to engage with apps (and brands) via Kik, Facebook messenger and Snapchat.
This report looks into how consumers discover mobile apps, what motivates them to download the apps, and what keeps them coming back to use
the app regularly.
Introduction

3. Table of Contents
1. Introduction
2. When and why do consumers pick apps over websites?
• Convenience, simplicity and efficiency shape choice between app & website
• Consumers prefer apps for quick access & mobile websites for details
3. How big is the app market and what’s driving revenues?
• Mobile app penetration nears saturation as share of app buyers plateau
• E-books make up biggest share of app revenues, but games are catching up
4. How do people discover apps and what influences download?
• Word of mouth is the biggest enabler of mobile app discovery
• Emotional triggers drive people to download the apps they discover
• Consumer willingness to pay for apps differs by category
5. Why are some apps used regularly while others are forgotten?
• Consumers regularly use social networking, gaming and media apps
• Consumers prefer apps that benefit their lives after a short learning curve
• Consumers are most likely to forget about travel and holiday apps
• Consumers remember apps when they interact with the brand offline
• Consumers abandon apps that struggle to hold their interest & stay relevant
6. How can apps re-engage lost users?
• Discounts re-engage lost users but recommendation grows engagement
• Discounts are effective in winning back users for retail, travel & local apps
7. How can mobile apps grow user loyalty?
• Mobile apps that reach out to users boost their long-term loyalty
• Mobile messenger users are loyal and frequent users of the app
• App makers can reach their users on messaging apps

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7. When and why do consumers pick apps over websites?
I
Consumers conscious of time available to them are more likely to choose mobile apps over mobile
websites. Consumers have come to assume that apps are the lite version of mobile websites that load
faster, offer simpler navigation and allow them to bypass lengthy sign-up as well as repeated login
processes. On the other hand, consumers gathering information to make an informed purchase
decision are more likely to use the mobile website over apps.

8. 1
Consumers who had to choose between a link to a mobile app vs. one to a mobile website on their
browser, mostly chose the link to an app (49%).Just above a third (35%) chose the website link, and the
remaining 16% said they were not sure which one they would click on.
2
Consumers choose apps over websites due to convenience offered by pre-login (51%), simpler navigation
(50%) and shorter load time (46%).
3
Nearly half (47%) of all smartphone owners in the US and the UK pick using an app over the mobile web
when they want information ‘quickly’ or when they need to complete a task/transaction ‘quickly’.
4
However when it comes to consuming copious amounts of information in detail, 49% of all smartphone
owners prefer opening a mobile browser instead of a mobile app.
5
Mobile web was the preferred option when consumers perform tasks are related to a purchase decision
such as comparing options (32% vs. 19% for mobile apps), looking for inspiration (31% vs. 23% for
mobile apps), and looking for something specific (30% vs. 27% for mobile apps).
Key Data Highlights

9. Mobile app vs mobile website preference when given a link
% US and UK smartphone owners who regularly use mobile apps and mobile web
Source: Google, 2015
16%
35%
49%
Prefer to tap link to the app
Prefer to tap link to the website
Don't know
2%
15%
29%
31%
46%
Mobile websites contain
more information
Mobile websites are
simpler to navigate
than apps
Opening the mobile
website would be faster
than loading an app
I’d be worried that I
would have to log in to
the app
I’d be worried it wouldn’t
take me to the right
page in the app
17%
21%
22%
46%
50%
51%
Apps I’ve installed will
have my login details
& save me time
Apps are simpler to
navigate than mobile
websites
Apps are quicker to load
than mobile websites
If I forget I have installed
the app already, it is
useful to be reminded
There are often deals
available inside apps
Apps often contain
additional or exclusive
content
Reasons for preferring
the mobile website
Reasons for preferring
the mobile app

10. Mobile app vs mobile website preference by usage context
% US and UK smartphone owners who regularly use mobile apps and mobile web
Source: Google, 2015
49%
32%
24%
31%
30%
18%
14%
17%
37%
49%
55%
46%
43%
49%
39%
35%
14%
19%
21%
23%
27%
34%
47%
47%
Prefer to use an app No preference Prefer to use a mobile website
When I want information quickly
When I need to complete a task or transaction quickly
When I have poor wifi or 3G connection
When I’m looking for something specific
When I’m browsing/looking for inspiration
When I’m concerned about the security of my personal info.
When I want to compare options
When I need a lot of information

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14. How big is the app market and what’s driving revenues?
II
More than nine in ten smartphone and tablet users now use mobile apps but only a third of them
download paid apps. Tablet users are slightly more likely to pay for apps compared to smartphone
users. Overall both segments will bring in just under $10 billion in mobile app revenues. The revenue will
primarily be driven by e-book purchases. Gaming app downloads and in-game purchases are slowly
catching up with e-books accounting for just over 30% of all mobile app revenues.

15. 1
Mobile app penetration is expected to reach 92.9% for smartphone users and 90.3% for tablet users by end of 2015,
starting a period of market saturation.
2
Paid app downloaders make up just over a third of all smartphone owners as the growth of this segment will slow down to
just below 4% in 2015 after reaching a peak of 50% in 2013.
3
More than 4 in 10 (44%) of tablet users and slightly more than a third (35.8%) of smartphone users will download paid
apps in 2015. In actual figures, that amounts to 60.9 million tablet users and 65.2 million smartphone users.
4
Mobile app revenue from downloads and in-app purchases amounted to $8.9 billion in 2014 – up from $7.68 in 2013.
The figure is expected to increase by 10.3% and reach $9.82 billion in 2015.
5
E-books are the most lucrative mobile app category with an estimated revenue haul of $4.25 billion in 2015, up from
$4.07 billion in 2014. E-books will account for 43.3% of total mobile app revenues in 2015.
6
Revenue share for games will increase from 26.4% in 2013 to 30.9% in 2015 amounting to $3.04 billion.The growth is
driven by revenue from both game downloads ($1.22 billion) and in-app purchases ($1.82 billion). By 2016, in-app
revenue from games will account for nearly $2 billion pushing total mobile gaming revenues to $3.31 billion.
Key Data Highlights

16. US Mobile App Installers and Penetration, by device
Source: eMarketer, February 2015
2013 2014 2015 2016 2017 2018
Smartphone
(in millions)
127.5 149.7 169.1 184.5 196.9 207.0
% change 28.6% 17.3% 13.0% 9.1% 6.7% 5.1%
% of smartphone
users
90.3% 91.3% 92.9% 93.5% 94.2% 95.0%
Tablet
(in millions)
99.3 114.7 125.0 133.0 139.4 144.5
% change 39.2% 15.5% 9.0% 6.4% 4.8% 3.7%
% of tablet users 85.5% 88.4% 90.3% 91.6% 92.9% 93.8%
Total
(in millions)
160.5 181.6 196.2 206.4 215.4 222.1
% change 29.9% 13.1% 8.1% 5.2% 4.4% 3.1%
% of mobile device
users
69.4% 77.0% 81.5% 84.5% 87.0% 88.2%

17. US Mobile App Buyers, by Device
Source: eMarketer, February 2015
2013 2014 2015 2016 2017 2018
Smartphone
(in millions)
42.4 59.0 65.2 70.1 73.8 76.9
% change 57.0% 39.3% 10.4% 7.5% 5.3% 4.2%
% of smartphone
users
30.0% 36.0% 35.8% 35.5% 35.3% 35.3%
Tablet
(in millions)
54.6 58.4 60.9 63.3 65.1 66.7
% change 28.8% 7.0% 4.3% 3.9% 2.9% 2.4%
% of tablet users 47.0% 45.0% 44.0% 43.6% 43.4% 43.3%
Total
(in millions)
62.9 77.1 80.1 82.3 83.7 85.0
% change 50.4% 22.6% 3.9% 2.7% 1.8% 1.5%
% of mobile device
users
27.2% 32.7% 33.3% 33.7% 33.8% 33.8%

18. US Mobile Download and In-App Revenues in billions
Source: eMarketer, February 2015
2013 2014 2015 2016
E-book downloads $3.95 $4.07 $4.25 $4.38
Games $2.03 $2.61 $3.04 $3.31
— Game in-app purchases $1.12 $1.51 $1.82 $1.99
— Game downloads $0.91 $1.09 $1.22 $1.32
Video Downloads $0.49 $0.74 $0.85 $0.93
Music Downloads $0.47 $0.52 $0.55 $0.58
Other $0.73 $0.95 $1.13 $1.24
Total $7.68 $8.90 $9.82 $10.44

19. US Mobile Download and In-App Revenues Share, % of total
Source: eMarketer, February 2015
2013 2014 2015 2016
E-book downloads 51.5% 45.8% 43.3% 42.0%
Games 26.4% 29.3% 30.9% 31.7%
— Game in-app purchases 11.9% 12.3% 12.4% 12.6%
— Game downloads 14.6% 17.0% 18.5% 19.1%
Video Downloads 6.4% 8.4% 8.6% 8.9%
Music Downloads 6.2% 5.9% 5.6% 5.5%
Other 9.5% 10.7% 11.5% 11.9%
Total (in billions) $7.68 $8.90 $9.82 $10.44

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23. How do people discover apps and what influences download?
III
Word of mouth from friends, family and colleagues play a key role in people finding out about new apps and
deciding to download it. Discounts and rewards influence download of restaurant apps, while offline interaction
influences download of shopping apps. Consumers also pay attention to price, description and reviews before
downloading an app.

24. 1
More than half (52%) of smartphone owners in the US say they find out about new mobile apps from family,
friends, and colleagues.Another four in ten (40%) discover apps while browsing the app store.
2
A third (33%) of all smartphone owners download mobile apps because others recommended them. More
than one in five (21%) said they downloaded a travel related app because their peers recommended it.
3
Less than one in five (18%) smartphone owners say they download an app to access exclusive discounts. More
than a third (34%) who downloaded a restaurant or takeaway app say they did so to access exclusive discounts.
4
More than two in five (44%) downloaded a shopping app because they either regularly use or regularly
interact with the brand.
5
More than four in five (82%) say price is the top factor when deciding whether or not to download the app with
consumer willing to pay the most for technology apps ($2.81) and the least for gaming apps ($1.49).
6
More than three in five (62%) say app descriptions are important and 60% say customer reviews as well as
ratings are key to their decision to download the app.
Key Data Highlights

25. Mobile app discovery methods among smartphone owners
% US and UK smartphone owners by app discovery method
Source: Google, 2015
22%
24%
27%
40%
52%Friends, family and colleagues
Browse the app store
Search engines
Company website
TV

26. Mobile apps discovered using web search by category
% US and UK smartphone owners who discover apps through search engines by app category
Source: Google, 2015
15%
16%
19%
24%
28%
34%
35%
43%Technology
Travel
Local
Entertainment
Retail
Social
Finance
Gaming

27. Reasons for downloading a mobile app
% US and UK smartphone owners who downloaded at least one mobile app
Source: Google, 2015
18%
24%
31%
33%Recommended by others
Sounded interesting/fun
Familiarity with company/brand
Access exclusive discounts/rewards

28. Reasons for downloading mobile apps by category
Source: Google, 2015
To access
exclusive
discounts/
rewards
34%
Regularly use/
interact with the
company/brand
28%
Recommended
by others
26%
To complete a
purchase/
transaction
21%
Suggested to me
on a website that
I browsed
20%
Recommended
by others
21%
Had a specific
need/interest that
can’t be met by
mobile website
18%
It sounded
interesting/fun
17%
Regularly use/
interact with the
company/brand
12%
To complete a
purchase/
transaction
8%
Regularly use/
interact with the
company/brand
44%
To complete a
purchase/
transaction
34%
To access
exclusive
discounts/
rewards
17%
Suggested to me
on a website that
I browsed
16%
It sounded
interesting/fun
14%
Restaurants and Takeaways Travel and Holiday Shopping
% US and UK smartphone owners who downloaded at least one mobile app

29. Key factors when deciding to download a mobile app
% US and UK smartphone owners who say given factor is important in their decision to download
Source: Google, 2015
43%
60%
60%
62%
82%Price
Description
Reviews
Ratings
Free trial

30. Consumer willingness to pay for mobile apps by category
Average $ amount US and Uk smartphone owners are willing to pay for apps by category
Source: Google, 2015
$1.49
$1.83
$2.09
$2.18
$2.21
$2.22
$2.52
$2.81Technology
Finance
Local
Travel
Social
Entertainment
Retail
Gaming

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34. Why are some apps used regularly while others are forgotten?
IV
Social media apps that help people connect with others and stay in touch with their loved ones are the most likely to
be used on a daily basis. Among apps that people use regularly, they pick the ones that first and foremost make
their lives easier. Ease of use, design, cross-device functionality and new content also help in promoting regular
use. Apps that engage in offline interaction with its users are more likely to have regular users. Consumers abandon
apps largely when they lose interest in it or when it stops being beneficial to them.

35. 1
Slightly more than a quarter (26%) of smartphone owners in the US and the UK use mobile apps every day.
The top three app categories that drive daily app usage are social (68%), gaming (46%) and media (33%).
2
People use apps regularly if it makes their life easier (63%), is intuitive to learn or comes with clear
instructions (63%), has appealing design (57%), works seamless across devices (57%), provides new content
(45%), and offers offline interaction with the brand (43%).
3
More than one in five (22%) apps get abandoned after installation.The most likely app category to get
abandoned is travel and holiday (33%) followed by shopping (18%) and restaurant or takeaway (17%).
4
More than a third (36%) of smartphone owners regularly use apps when the reason for downloading it was
regular interaction with the brand.
5
The top three reasons why people abandon apps are loss of interest in the app (34%), no longer in need for
the app (29%), and realizing the app is not as useful as they initially thought (24%).
Key Data Highlights

36. 26%
Use daily
Use less than once a day
Mobile apps consumers use daily by type of app
% US and UK smartphone owners who regularly use mobile apps
Source: Google, 2015
19%
33%
46%
68%
Social and
communication
Games or gaming
related
Media or entertainment
related
Retail stores or retail
related

37. Attributes associated with frequently used apps
% US and UK smartphone owners who regularly use mobile apps
Source: Google, 2015
43%
45%
57%
57%
63%
63%Makes my life easier
Clear instructions for using app
Appealing design and aesthetics
Consistent experience on multiple devices
Always has new content
Brand I interact with offline

38. 18%
17%
33%
22%
Source: Google, 2015
All installed apps Travel and
holiday apps
Restaurant and takeaway
apps
Shopping apps
Share of mobile apps abandoned after download
% of installed apps that have been abandoned after download by app category

39. Reasons for downloading app - Regularly Used vs Abandoned
% US and UK smartphone owners who downloaded at least one app
Source: Google, 2015
6%
6%
7%
8%
8%
14%
17%
19%
16%
20%
15%
27%
4%
6%
9%
9%
10%
16%
16%
18%
18%
19%
19%
36%
Regular usage apps Abandoned apps
Regularly use/interact with the company/brand
Had a specific need/interest that can’t be fulfilled
by the mobile website
To complete a purchase/transaction
To access exclusive discounts/rewards
Recommended by others
It sounded interesting/fun
Suggested to me on a website that I browsed
Among the best rated apps in the app store
Featured in the app store
Saw an online ad on my smartphone
Saw an online ad on a computer/tablet
Saw an offline ad on TV, print or outdoors

40. Reasons consumers abandon mobile apps
% US and UK smartphone owners who regularly use mobile apps
Source: Google, 2015
18%
24%
29%
34%Lost interest
No longer need it
Found app not as useful
Found a better or more useful app

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44. How can apps re-engage lost users?
V
Discounts, coupons and other monetary awards can help apps re-
engage lost users, however a more sustainable approach is to win
them back through peer influence. People who see their friends,
family and colleagues use an app are more likely to keep using
the app in the long run. Discounts and coupons work best with
retail, travel and local apps in situations when customers are more
price-conscious than usual.

45. 1
The top three tactics to re-engage lost app users are offering discounts and coupons
towards their next purchase (30%), offering exclusive or bonus content (24%), and
seeing family, friends or colleague use the app (21%).
2
Discounts and coupons are the most effective tactic in re-engaging lost customers for
retail apps (47%), travel apps (40%) and local apps (37%).
Key Data Highlights

46. Prompts that can restart usage of abandoned apps
% US and UK smartphone owners who have abandoned apps
Source: Google, 2015
16%
21%
24%
30%
Discount or coupon toward next
purchase
Exclusive or bonus content
Family, friends or colleagues start
using it
Notifications of new features

47. Effect of discount or reward on app re-engagement by category
% US and UK smartphone owners who have abandoned apps
Source: Google, 2015
14%
16%
24%
28%
36%
37%
40%
47%Retail
Travel
Local
Technology
Finance
Entertainment
Gaming
Social

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51. How can mobile apps grow user loyalty?
VI
Apps that engage with their users are more likely to retain their customers
in the long run. Apps can engage with users over messaging apps, which
have the highest retention rates among all app categories. Customers
prefer to engage with apps via Kik, Facebook messenger and Snapchat.

52. 1
Apps can interact with their users retail more than half (57%) of them one week after
the download compared to apps that do not interact with users who retail only a
quarter (25%) of its users in the same time frame.
2
Messaging apps are ale to retain more than three in five (62%) of its users twelve
months after the download compared to more than one in ten (11%) for all app
categories.
3
Nearly one in five (19%) of smartphone owners have engaged with brands via
messenger apps especially Kik users (26%) and Snapchat users (21%).
4
Young people are willing to interact with brands over messenger apps – especially
young graduates and professionals (57%) and college students (50%).
5
Consumers prefer to engage with brands via Kik (30%), Facebook messenger (23%)
and Snapchat (23%) the most.
Key Data Highlights

53. 32%
24%
21%
18% 17% 16% 15% 14% 13% 12% 12% 11%
25%
16%
12%
10% 9% 8% 8% 8% 7% 7% 7% 7%
57%
47%
42%
39%
36%
34%
32%
30% 29%
27% 26% 25%
User interaction No user interaction Total
Source: Apptentive, March 2015
1 2 3 4 5 6 7 8 9 10 11 12
Weeks after download
Average retention rates for apps that do vs do not interact
% users retained after app download by weeks from download

54. 62%62%
65%
67%68%
11%
18%
25%
29%
36%
All mobile apps Messaging apps
Source: Flurry Analytics, January 2015
1st month 2nd month 3rd month 6th month 12th month
Average retention rates - Messaging apps vs All apps
% of mobile app downloaders who returned to use the app
1.9 X
2.3 X
2.6 X
3.4 X
5.6 X

55. 8.9
1.9
Source: Flurry Analytics, January 2015
Average Messaging apps
Average daily session frequency - Messaging apps vs All apps
number of sessions per user per day
4.7 X

56. 21%
26%
19%
Source: Frank and Magid Associates, January 2015
All smartphone owners Kik users Snapchat users
US consumers engaging with brands via messengers
% of smartphone owners who have engaged with brands via mobile messaging apps

57. US consumer attitude to brand engagement via mobile apps
% US smartphone owners who use messaging apps
Source: Frank and Magid Associates, January 2015
44%
50%
45%
57%
21-25 year olds 18-20 year olds
Social and messenger apps are
important sources of brand
information
I wish I could speak directly with a
brand instead just of liking or
following them

58. 23%23%
30%
Source: Frank and Magid Associates, January 2015
Kik users Facebook users Snapchat users
US consumer willingness to engage with brands on messengers
% of smartphone owners who use mobile messaging apps

59. 25
27
37
21
27
35
Source: Frank and Magid Associates, January 2015
Kik messenger Facebook
messenger
Snapchat Facebook Instagram Twitter
Mobile user engagement - Messenger apps vs Social apps
Average amount of time spent each time using app in minutes

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