SlideShare une entreprise Scribd logo
1  sur  3
Télécharger pour lire hors ligne
Column

By the Numbers

Defining the Relevant
Market for Your App
In this article we explore how mobile
app publishers can understand demand and
opportunities for growth in the niche market
specific to each of their apps.

Step One:
Define the Relevant Market
When evaluating the profit opportunity for an
app, developers might ask themselves the following questions: How is demand for apps like
mine growing? How do I identify where people
are downloading and playing the specific kind
of games I am creating? Who are my competitors? Am I good enough to beat them?
Answering these questions is precisely the
goal of market definition—narrowing the universe of apps down to your direct competitors
and observing trends within this subset to
make informed business decisions.
At Priori, we rely on an extensive set of
sub-categories based on the core functionality
or theme of apps in order to help our developer clients arrive at relevant market definitions for their apps. This classification system
can provide an additional level of detail to the
native app store categories. For example, over
20,000 apps in the Apple App Store were assigned to the native category “Puzzle Games”
as of August, 2013. These same apps map to
over 330 Priori Sub-Categories, from “Arcade
Ball Games” to “Zombie Games.” For any given
app, defining the relevant market can reveal
interesting trends not easily visible at the app
store or native category level.

Step Two:
Focus on the Trends that Matter
To illustrate how market definition can be
useful, let’s use an example from our dataset.
We’ll be exploring the Priori Sub-Category
“Sudoku” on the iOS platform (iPhone and
iPad combined). Here are some key statistics:
6  Casual Connect  FALL 2013

•	 As of August 11, 2013, we counted 1,609

•	

apps, 929 publishers, 5M monthly
downloads and 37M active users in this
sub-category.
This makes Sudoku the 85th largest
sub-category in terms of global in-month
downloads, the 157th largest in terms of
number of apps, 72nd in terms of number
of active users and 183rd in terms of
number of publishers.

In Graph 1 we’ve plotted the month-overmonth global download growth (May-July
2013) for the Sudoku sub-category alongside
the native category Puzzle Games and the
overall Apple App Store. In the graph we
can see that in June 2013, global in-month
installs of Sudoku apps decreased relative

to the prior month, while installs in the App
Store as well as the overall native category
comprising Sudoku grew. In July, however,
monthly installs of Sudoku apps grew at a
positive rate. In terms of month-over-month
download growth, Sudoku apps outperformed the App Store but underperformed
relative to the native category Puzzle Games
in July 2013.
An individual Sudoku app developer could
also plot his individual app’s performance on
the above graph to benchmark against his
direct competitors and the larger market.
This exercise proves useful not only in internal evaluations of an app’s viability, but also
when having to prove the market opportunity for an app (or to defend an app’s performance relative to that market) to investors.

Graph 1: Global Month-Over-Month Download Growth on iOS Platform
30%

25.9%
Native CategoryPuzzle Games

20%

12.1%
Sudoko Apps

10%

6%
Apple App Store

3.3%
0%

-10%

-0.4%

0.1%

-5.9%
-7.4%

-20%
-25.5%

-30%
May

June

July

Data for iOS. Sudoku Apps comprises apps classified under Priori Sub-Category “Sudoku”.
by Michelle Tran; Data
Scientist, Priori Data GmbH;
Berlin, Germany

0.3%
29.5%
Hungary 69.9%
10
.8%
17.9%
Austria 69.9%
7.4%
25
. 8%
Finland 65.8%
12.4%
12.3%
Germany 62.7%
12.6%
25.7
%
Poland 61.6%
15.6%
15.7%
Spain 60.8%
Graph 2: Share of Sudoku Sub-Category Downloads by Country on iOS Platform (July 2013)
14.4%
16 .1%
Italy
60.7%
16 .2%
20.6%
India 60.3%
14.6%
25
.0%
Norway 60.1%
United 59.8%
10
.1% 35.83%
27 .3%
United Arab Emirates States
12.98%
19.2%
18 .9%
58.0%
Brazil China
6.78%
7.9%
36
.1%
55.7%
Portugal Japan
United Kingdom
6.33%
14.5%
28.4%
South Korea 55.2%
Canada
4.85%
12.9%
14.3%
Australia 55.0%
4.33%
Australia
14.3%
23.2%
China 52.5%
4.12%
France
20.1%
23.3%
Switzerland 51.6%
Germany
3.63%
15.0%
21.9%
France 51.2%
18 .1%
26.4%
2.74%
50.1%
Sweden Spain
Netherlands
2.7%
11.5%
39.1%
Czech Republic 48.9%
2.41%
16 .5%
18 .5%
45.7%
Canada Russia
2.37%
Italy
20.3%
28.2%
Denmark 44.0%
India
21.3%
27.6%
1.54%
Japan 42.9%
Switzerland
1.42%
20.3%
23.0%
Netherlands 42.4%
1.21%
13.7%
17.0%
42.4%
United States Sweden
> Denmark
17.5%
19.6%
1.15%
United Kingdom 40.6%
1.14%
18 .8%
35.1%
33.3%
Russia Brazil
1.03%
South Korea
Norway
0.70%
TIER #1 to #3
TIER #4 to #10
TIER #11 to #25
0.63%
Austria
Poland
0.51%
United Arab Emirates
0.41%
Finland
0.39%
Portugal
0.35%
Czech Republic
0.27%
Hungary 0.18%

Graph 3: Sudoku Sub-Category Download Growth by Country on iOS Platform (June-July 2013)
Hungary
Poland
United Arab Emirates
Portugal
Spain
India
Italy
Switzerland
Norway
Australia
Netherlands
South Korea
> Denmark
Austria
France
Russia
Finland
Sweden
Canada
Germany
United States
United Kingdom
Brazil
Japan
China
Czech Republic

88.85%
82.66%
72.09%
67.65%
64.53%
58.37%
53.47%
47.16%
46.35%
44.66%
42.44%
41.39%
40.56%
39.68%
37.67%
27.42%
27.3%
24.58%
23.02%
18.45%
12.6%
12.39%
12.11%
-9.22%
-14.3%
-16.81%

Step Three:
Examine Geographical Variations
We’ve seen how downloads have grown at the
global level, but it is also interesting to explore
how Sudoku apps have performed in different
regions across the globe. Let’s explore three
different visualizations of the monthly down-

loads metric that illustrate the geographical
variation within this market.
•	 A relevant market definition is essential
to calculating market share—Graph
2—shows how monthly downloads
(roughly 5M total) were distributed among
the different countries we track. Each

•	

country’s in-month downloads as a share
of global downloads is displayed. This
metric serves as a proxy for share of global
demand within the Sudoku sub-category.
A relevant market definition is essential
to identifying growth opportunities—
Graph 3—shows how monthly installs
Fall 2013  Casual Connect  7
By the Numbers

Defining the Relevant Market for Your App
Graph 4: Sudoku Sub-Category Downloads Distribution by Country on iOS Platform (July 2013)

Hungary
Austria
Finland
Germany
Poland
Spain
Italy
India
Norway
United Arab Emirates
Brazil
Portugal
South Korea
Australia
China
Switzerland
France
Sweden
Czech Republic
Canada
> Denmark
Japan
Netherlands
United States
United Kingdom
Russia

69.9%

17.9%

7.4%
12.4%

12.3%

62.7%

12.6%

25.7
%

61.6%

15.6%

15.7%

60.8%
60.7%

20.6%

60.1%

25
.0%

59.8%

14.4%

16 .1%

60.3%

27 .3%

16 .2%
14.6%
10
.1%
19.2%

18 .9%

58.0%
55.7%
55.2%

7.9%

36
.1%
28.4%

14.5%
12.9%

14.3%

55.0%

14.3%

23.2%

52.5%

20.1%

23.3%

51.6%

15.0%

21.9%

51.2%

18 .1%

26.4%

50.1%

11.5%

39.1%

48.9%

16 .5%

18 .5%

45.7%

20.3%

28.2%

44.0%

21.3%

27.6%

42.9%
42.4%

17.0%

20.3%

23.0%

42.4%

19.6%

40.6%

13.7%
17.5%
18 .8%

35.1%

33.3%

grew between June and July in the various
countries. This statistic provides insight
into which geographic regions are exhibiting positive or negative demand growth.
A relevant market definition is essential
to assessing the competitive landscape—Graph 4—provides insight as to
how the market for Sudoku apps is structured within each country by showing how
Hungary
Poland
in-month downloads are distributed. We
United Arab Emirates
segment Sudoku apps into three tiers:
Portugal
•  Tier 1: The top three most Spain
India
downloaded apps
Italy
•  Tier 2: Apps four through 10
Switzerland
Norway
(based on downloaded volume)
Australia
•  Tier 3: Apps 11 through 25
Netherlands
(based on downloadSouth Korea
volume)

TIER #4 to #10

TIER #11 to #25

in Denmark. Denmark is a small country, but
it places among the top 10 countries in the
world in terms of smartphone penetration1,
so it might be interesting to explore further.
What can downloads, as presented in the previous three graphs, tell us about the market
for Sudoku apps in Denmark? What questions
can this data help us answer?
•	 Is the market large enough to justify my
entry in the first place? The Danish market is small, representing a little over 1% of
global sub-category downloads, or around
58,000 downloads per month. (Graph 2)
•	 Are the market dynamics in my favor? 47.16%
46.35%
Sudoku downloads are growing, and fast.
44.66%
Monthly installs grew by over 40% from
42.44%
41.39%
June to July. (Graph 3)
40.56%
•	 How are my biggest competitors doing,
39.68%
and how many downloads can 37.67%
my app
27.42%
stand to gain? Comparing the structure of
27.3%
the Sudoku apps market in Denmark to the
24.58%
23.02%
other countries we track, we see that the
18.45%
top three players command relatively less
12.6%
12.39%
of the overall market than in other coun12.11%
tries. This indicates that Danish users are
-9.22%

Denmark
Austria
Often, when observing the top France
local players
Russia
in a given market, there are three that stand
Finland
out in terms of download volume. And in most
Sweden
Canada
cases, the vast majority of sub-category downGermany
loads are represented by the top 25 apps.
United States
United Kingdom
Brazil
Putting the Data to Use Japan
China
Let’s take the example of a Sudoku app devel-14.3%
oper looking evaluate theCzech Republic -16.81% 1 http://mashable.com/2013/08/27/global-smartphone-penetration/
market opportunity
8  Casual Connect  FALL 2013

10
.8%

25
. 8%

65.8%

TIER #1 to #3

•	

0.3%

29.5%

69.9%

relatively less concentrated among a few
brands. Furthermore, we see that apps that
manage to break into the top 25 can expect
larger, more evenly spread gains than those
same positions in other geographic markets
(apps four through 25 command a total of
49% of the market, the fourth highest such
figure in our graph. (Graph 4)

Conclusion

88.85%
82.66%
72.09%

In an industry as fragmented and immature as
67.65%
the mobile app industry, a relevant market
64.53%
58.37%
definition can go a long way. Having a holistic
53.47%
view of the market your app occupies is essential to measuring market share, gauging the
health of your app’s segment, and even developing an expansion strategy. Quite simply, a
good market definition allows developers to
compare apps and app markets on an applesto-apples basis. If you can only see your biggest
competitors then you can only say how you
size up to them. If you can see all of your competitors, even at the aggregate level, then you
know how your app fits into the overall market.
This is instrumental both to managing your
app’s success and to demonstrating its potential and value to investors. ❉

Contenu connexe

Tendances

UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...
UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...
UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...Hubery Zhou
 
Flurry Road Trip - Germany state of mobile
Flurry Road Trip - Germany state of mobileFlurry Road Trip - Germany state of mobile
Flurry Road Trip - Germany state of mobileFlurry, Inc.
 
Millennialmedia mobilemix Q2 2013
Millennialmedia mobilemix Q2 2013Millennialmedia mobilemix Q2 2013
Millennialmedia mobilemix Q2 2013Sergey Polovnikov
 
Top US Telecom brands on Social Media
Top US Telecom brands on Social MediaTop US Telecom brands on Social Media
Top US Telecom brands on Social MediaSimplify360
 
Vietnam Mobile Market Analysis 2012
Vietnam Mobile Market Analysis 2012Vietnam Mobile Market Analysis 2012
Vietnam Mobile Market Analysis 2012Dunglt
 
The Telecom Industry on Social Media
The Telecom Industry on Social MediaThe Telecom Industry on Social Media
The Telecom Industry on Social MediaUnmetric
 
The State of AppNation 2015
The State of AppNation 2015The State of AppNation 2015
The State of AppNation 2015Flurry, Inc.
 
Moving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile worldMoving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile worldOn Device Research
 
Global digital-future-in-focus-2018
Global digital-future-in-focus-2018Global digital-future-in-focus-2018
Global digital-future-in-focus-2018Carlos Andres Arias
 
China Mobile Internet 2015 Year in Review
China Mobile Internet 2015 Year in ReviewChina Mobile Internet 2015 Year in Review
China Mobile Internet 2015 Year in ReviewTalkingData
 
Mobile apps market of Russia (2018)
Mobile apps market of Russia (2018)Mobile apps market of Russia (2018)
Mobile apps market of Russia (2018)Erzhena Mironova
 
Host Introduction: “State of the Industry: Follow the Money”
Host Introduction: “State of the Industry: Follow the Money”Host Introduction: “State of the Industry: Follow the Money”
Host Introduction: “State of the Industry: Follow the Money”iMedia Connection
 
The Global State of the App Industry
The Global State of the App IndustryThe Global State of the App Industry
The Global State of the App IndustryEmma Mitchell
 
2016 Yahoo Taiwan Mobile Developer Conference
2016 Yahoo Taiwan Mobile Developer Conference 2016 Yahoo Taiwan Mobile Developer Conference
2016 Yahoo Taiwan Mobile Developer Conference Flurry, Inc.
 
comScore 2016 U.S. Mobile App Report
comScore 2016 U.S. Mobile App ReportcomScore 2016 U.S. Mobile App Report
comScore 2016 U.S. Mobile App ReportcomScore
 
Umeng insight report china mobile internet 2012 review final
Umeng insight report china mobile internet 2012 review finalUmeng insight report china mobile internet 2012 review final
Umeng insight report china mobile internet 2012 review finalUmeng
 
2013 Umeng Insight Report
2013 Umeng Insight Report2013 Umeng Insight Report
2013 Umeng Insight ReportUmeng
 

Tendances (19)

UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...
UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...
UMENG Insight Report 2013H1 - China Mobile Internet: Fragmentation and Shorte...
 
Flurry Road Trip - Germany state of mobile
Flurry Road Trip - Germany state of mobileFlurry Road Trip - Germany state of mobile
Flurry Road Trip - Germany state of mobile
 
Millennialmedia mobilemix Q2 2013
Millennialmedia mobilemix Q2 2013Millennialmedia mobilemix Q2 2013
Millennialmedia mobilemix Q2 2013
 
Top US Telecom brands on Social Media
Top US Telecom brands on Social MediaTop US Telecom brands on Social Media
Top US Telecom brands on Social Media
 
Vietnam Mobile Market Analysis 2012
Vietnam Mobile Market Analysis 2012Vietnam Mobile Market Analysis 2012
Vietnam Mobile Market Analysis 2012
 
The Telecom Industry on Social Media
The Telecom Industry on Social MediaThe Telecom Industry on Social Media
The Telecom Industry on Social Media
 
The State of AppNation 2015
The State of AppNation 2015The State of AppNation 2015
The State of AppNation 2015
 
Moving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile worldMoving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile world
 
Global digital-future-in-focus-2018
Global digital-future-in-focus-2018Global digital-future-in-focus-2018
Global digital-future-in-focus-2018
 
China Mobile Internet 2015 Year in Review
China Mobile Internet 2015 Year in ReviewChina Mobile Internet 2015 Year in Review
China Mobile Internet 2015 Year in Review
 
Mobile apps market of Russia (2018)
Mobile apps market of Russia (2018)Mobile apps market of Russia (2018)
Mobile apps market of Russia (2018)
 
Host Introduction: “State of the Industry: Follow the Money”
Host Introduction: “State of the Industry: Follow the Money”Host Introduction: “State of the Industry: Follow the Money”
Host Introduction: “State of the Industry: Follow the Money”
 
The Global State of the App Industry
The Global State of the App IndustryThe Global State of the App Industry
The Global State of the App Industry
 
2016 Yahoo Taiwan Mobile Developer Conference
2016 Yahoo Taiwan Mobile Developer Conference 2016 Yahoo Taiwan Mobile Developer Conference
2016 Yahoo Taiwan Mobile Developer Conference
 
India Digital News Report slides | Reuters Institute
India Digital News Report slides | Reuters Institute India Digital News Report slides | Reuters Institute
India Digital News Report slides | Reuters Institute
 
comScore 2016 U.S. Mobile App Report
comScore 2016 U.S. Mobile App ReportcomScore 2016 U.S. Mobile App Report
comScore 2016 U.S. Mobile App Report
 
Digital News Report 2016
Digital News Report 2016Digital News Report 2016
Digital News Report 2016
 
Umeng insight report china mobile internet 2012 review final
Umeng insight report china mobile internet 2012 review finalUmeng insight report china mobile internet 2012 review final
Umeng insight report china mobile internet 2012 review final
 
2013 Umeng Insight Report
2013 Umeng Insight Report2013 Umeng Insight Report
2013 Umeng Insight Report
 

En vedette

Prilezitost Xyngular 1
Prilezitost Xyngular 1Prilezitost Xyngular 1
Prilezitost Xyngular 1xyngularian
 
Driftbarhet - Steg mot smidig drift, JavaZone 2010
Driftbarhet - Steg mot smidig drift, JavaZone 2010Driftbarhet - Steg mot smidig drift, JavaZone 2010
Driftbarhet - Steg mot smidig drift, JavaZone 2010ilmyggo
 
рекламные_возможности (NashKiev.UA)
рекламные_возможности (NashKiev.UA)рекламные_возможности (NashKiev.UA)
рекламные_возможности (NashKiev.UA)NashKiev.UA
 
So you (think you) want to work in video games
So you (think you) want to work in video gamesSo you (think you) want to work in video games
So you (think you) want to work in video gamesSven Charleer
 
соц-дем_05'10 (NashKiev.UA)
соц-дем_05'10 (NashKiev.UA) соц-дем_05'10 (NashKiev.UA)
соц-дем_05'10 (NashKiev.UA) NashKiev.UA
 
Big Crazy Citation PowerPoint
Big Crazy Citation PowerPointBig Crazy Citation PowerPoint
Big Crazy Citation PowerPointJulie Platt
 
Ae member survey_presentation
Ae member survey_presentationAe member survey_presentation
Ae member survey_presentationshirleyreed
 
Agile Isn't What You Do (It's What You Think)
Agile Isn't What You Do (It's What You Think)Agile Isn't What You Do (It's What You Think)
Agile Isn't What You Do (It's What You Think)Derek W. Wade
 

En vedette (17)

Prilezitost Xyngular 1
Prilezitost Xyngular 1Prilezitost Xyngular 1
Prilezitost Xyngular 1
 
Ice-Cream
Ice-CreamIce-Cream
Ice-Cream
 
Driftbarhet - Steg mot smidig drift, JavaZone 2010
Driftbarhet - Steg mot smidig drift, JavaZone 2010Driftbarhet - Steg mot smidig drift, JavaZone 2010
Driftbarhet - Steg mot smidig drift, JavaZone 2010
 
рекламные_возможности (NashKiev.UA)
рекламные_возможности (NashKiev.UA)рекламные_возможности (NashKiev.UA)
рекламные_возможности (NashKiev.UA)
 
Download3
Download3Download3
Download3
 
Nuon Energy Consultancy
Nuon Energy ConsultancyNuon Energy Consultancy
Nuon Energy Consultancy
 
So you (think you) want to work in video games
So you (think you) want to work in video gamesSo you (think you) want to work in video games
So you (think you) want to work in video games
 
соц-дем_05'10 (NashKiev.UA)
соц-дем_05'10 (NashKiev.UA) соц-дем_05'10 (NashKiev.UA)
соц-дем_05'10 (NashKiev.UA)
 
Big Crazy Citation PowerPoint
Big Crazy Citation PowerPointBig Crazy Citation PowerPoint
Big Crazy Citation PowerPoint
 
Ae member survey_presentation
Ae member survey_presentationAe member survey_presentation
Ae member survey_presentation
 
9-11
9-119-11
9-11
 
Assignment nº4 heick
Assignment nº4 heickAssignment nº4 heick
Assignment nº4 heick
 
PENO3
PENO3PENO3
PENO3
 
Agile Isn't What You Do (It's What You Think)
Agile Isn't What You Do (It's What You Think)Agile Isn't What You Do (It's What You Think)
Agile Isn't What You Do (It's What You Think)
 
Hotel Premier Luxury Mountain Resort , Bansko,Bulgaria
Hotel Premier Luxury Mountain Resort , Bansko,BulgariaHotel Premier Luxury Mountain Resort , Bansko,Bulgaria
Hotel Premier Luxury Mountain Resort , Bansko,Bulgaria
 
Fire Engine
Fire EngineFire Engine
Fire Engine
 
Snap
SnapSnap
Snap
 

Similaire à Priori Data - Defining the Relevant Market for your App - Casual Connect Fall 2013

App Stores - Analytics and Trends
App Stores - Analytics and TrendsApp Stores - Analytics and Trends
App Stores - Analytics and TrendsPriori Data
 
The State of App Engagement by Apps Flyer
The State of App Engagement by Apps FlyerThe State of App Engagement by Apps Flyer
The State of App Engagement by Apps FlyerHarsha MV
 
Priori Data Global Insights Report for iOS - November 2013
Priori Data Global Insights Report for iOS - November 2013Priori Data Global Insights Report for iOS - November 2013
Priori Data Global Insights Report for iOS - November 2013Priori Data
 
What it Takes to Win in the Chinese App Market
What it Takes to Win in the Chinese App MarketWhat it Takes to Win in the Chinese App Market
What it Takes to Win in the Chinese App Marketdigitalinasia
 
Microsoft Surface Tablet Project
Microsoft Surface Tablet ProjectMicrosoft Surface Tablet Project
Microsoft Surface Tablet ProjectBruno Garcia
 
IndieFalcon Project Report
IndieFalcon Project ReportIndieFalcon Project Report
IndieFalcon Project ReportJake Stainton
 
2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASO
2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASO2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASO
2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASOPICKASO App Marketing
 
The State Of Mobile Monetization - 2017
The State Of Mobile Monetization - 2017The State Of Mobile Monetization - 2017
The State Of Mobile Monetization - 2017Ofir Krisspel
 
Priori Data - Mobile Tech Con Berlin - Summer 2013
Priori Data - Mobile Tech Con Berlin - Summer 2013Priori Data - Mobile Tech Con Berlin - Summer 2013
Priori Data - Mobile Tech Con Berlin - Summer 2013Patrick Kane
 
Monthly Focus: Google Play_Japan_May/June_2014
Monthly Focus: Google Play_Japan_May/June_2014Monthly Focus: Google Play_Japan_May/June_2014
Monthly Focus: Google Play_Japan_May/June_2014PRIORI DATA
 
Adjust App-Trends-Report-2020
Adjust App-Trends-Report-2020Adjust App-Trends-Report-2020
Adjust App-Trends-Report-2020Social Samosa
 
Umeng 2013 first half insight report of china mobile market
Umeng 2013 first half insight report of china mobile marketUmeng 2013 first half insight report of china mobile market
Umeng 2013 first half insight report of china mobile marketUmeng
 
Best Practice Guide Mobile Apps - Marketing Overview
Best Practice Guide Mobile Apps - Marketing OverviewBest Practice Guide Mobile Apps - Marketing Overview
Best Practice Guide Mobile Apps - Marketing Overviewcrisdresch
 
Distimo Winter Nights "Appstore Opportunities"
Distimo Winter Nights "Appstore Opportunities"Distimo Winter Nights "Appstore Opportunities"
Distimo Winter Nights "Appstore Opportunities"Distimo
 
In mobi app_insight_report
In mobi app_insight_reportIn mobi app_insight_report
In mobi app_insight_reportSon Aris
 
In Mobi App Insight Report Q3 2013
In Mobi App Insight Report Q3 2013In Mobi App Insight Report Q3 2013
In Mobi App Insight Report Q3 2013digitalinasia
 
Mobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & RetentionMobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & RetentionEmmanuel Quartey
 
Monthly focus i_os_japan_may_2014
Monthly focus i_os_japan_may_2014Monthly focus i_os_japan_may_2014
Monthly focus i_os_japan_may_2014PRIORI DATA
 

Similaire à Priori Data - Defining the Relevant Market for your App - Casual Connect Fall 2013 (20)

App Stores - Analytics and Trends
App Stores - Analytics and TrendsApp Stores - Analytics and Trends
App Stores - Analytics and Trends
 
The State of App Engagement by Apps Flyer
The State of App Engagement by Apps FlyerThe State of App Engagement by Apps Flyer
The State of App Engagement by Apps Flyer
 
Priori Data Global Insights Report for iOS - November 2013
Priori Data Global Insights Report for iOS - November 2013Priori Data Global Insights Report for iOS - November 2013
Priori Data Global Insights Report for iOS - November 2013
 
What it Takes to Win in the Chinese App Market
What it Takes to Win in the Chinese App MarketWhat it Takes to Win in the Chinese App Market
What it Takes to Win in the Chinese App Market
 
Microsoft Surface Tablet Project
Microsoft Surface Tablet ProjectMicrosoft Surface Tablet Project
Microsoft Surface Tablet Project
 
IndieFalcon Project Report
IndieFalcon Project ReportIndieFalcon Project Report
IndieFalcon Project Report
 
2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASO
2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASO2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASO
2021 / 2022 ASO Guide - App Store Optimization Guide by PICKASO
 
The State Of Mobile Monetization - 2017
The State Of Mobile Monetization - 2017The State Of Mobile Monetization - 2017
The State Of Mobile Monetization - 2017
 
Priori Data - Mobile Tech Con Berlin - Summer 2013
Priori Data - Mobile Tech Con Berlin - Summer 2013Priori Data - Mobile Tech Con Berlin - Summer 2013
Priori Data - Mobile Tech Con Berlin - Summer 2013
 
Monthly Focus: Google Play_Japan_May/June_2014
Monthly Focus: Google Play_Japan_May/June_2014Monthly Focus: Google Play_Japan_May/June_2014
Monthly Focus: Google Play_Japan_May/June_2014
 
Adjust App-Trends-Report-2020
Adjust App-Trends-Report-2020Adjust App-Trends-Report-2020
Adjust App-Trends-Report-2020
 
Umeng 2013 first half insight report of china mobile market
Umeng 2013 first half insight report of china mobile marketUmeng 2013 first half insight report of china mobile market
Umeng 2013 first half insight report of china mobile market
 
10520130101007
1052013010100710520130101007
10520130101007
 
Best Practice Guide Mobile Apps - Marketing Overview
Best Practice Guide Mobile Apps - Marketing OverviewBest Practice Guide Mobile Apps - Marketing Overview
Best Practice Guide Mobile Apps - Marketing Overview
 
Distimo Winter Nights "Appstore Opportunities"
Distimo Winter Nights "Appstore Opportunities"Distimo Winter Nights "Appstore Opportunities"
Distimo Winter Nights "Appstore Opportunities"
 
Technology Research on customer enagement
Technology Research on customer enagementTechnology Research on customer enagement
Technology Research on customer enagement
 
In mobi app_insight_report
In mobi app_insight_reportIn mobi app_insight_report
In mobi app_insight_report
 
In Mobi App Insight Report Q3 2013
In Mobi App Insight Report Q3 2013In Mobi App Insight Report Q3 2013
In Mobi App Insight Report Q3 2013
 
Mobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & RetentionMobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & Retention
 
Monthly focus i_os_japan_may_2014
Monthly focus i_os_japan_may_2014Monthly focus i_os_japan_may_2014
Monthly focus i_os_japan_may_2014
 

Dernier

Holi:: "The Festival of Colors in India"
Holi:: "The Festival of Colors in India"Holi:: "The Festival of Colors in India"
Holi:: "The Festival of Colors in India"IdolsArts
 
5 Moments of Everyday Self-Loathing That Perfectly Describe Your Life
5 Moments of Everyday Self-Loathing That Perfectly Describe Your Life5 Moments of Everyday Self-Loathing That Perfectly Describe Your Life
5 Moments of Everyday Self-Loathing That Perfectly Describe Your LifeSalty Vixen Stories & More
 
Taylor Swift quiz( with answers) by SJU quizzers
Taylor Swift quiz( with answers) by SJU quizzersTaylor Swift quiz( with answers) by SJU quizzers
Taylor Swift quiz( with answers) by SJU quizzersSJU Quizzers
 
Young adult book quiz by SJU quizzers.ppt
Young adult book quiz by SJU quizzers.pptYoung adult book quiz by SJU quizzers.ppt
Young adult book quiz by SJU quizzers.pptSJU Quizzers
 
"Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ...
"Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ..."Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ...
"Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ...RAGHURAMYC
 
Carowinds 2024: Thrills, Spills & Surprises
Carowinds 2024: Thrills, Spills & SurprisesCarowinds 2024: Thrills, Spills & Surprises
Carowinds 2024: Thrills, Spills & Surprisescarawinds99
 
Inside Look: Brooke Monk's Exclusive OnlyFans Content Production
Inside Look: Brooke Monk's Exclusive OnlyFans Content ProductionInside Look: Brooke Monk's Exclusive OnlyFans Content Production
Inside Look: Brooke Monk's Exclusive OnlyFans Content Productionget joys
 

Dernier (7)

Holi:: "The Festival of Colors in India"
Holi:: "The Festival of Colors in India"Holi:: "The Festival of Colors in India"
Holi:: "The Festival of Colors in India"
 
5 Moments of Everyday Self-Loathing That Perfectly Describe Your Life
5 Moments of Everyday Self-Loathing That Perfectly Describe Your Life5 Moments of Everyday Self-Loathing That Perfectly Describe Your Life
5 Moments of Everyday Self-Loathing That Perfectly Describe Your Life
 
Taylor Swift quiz( with answers) by SJU quizzers
Taylor Swift quiz( with answers) by SJU quizzersTaylor Swift quiz( with answers) by SJU quizzers
Taylor Swift quiz( with answers) by SJU quizzers
 
Young adult book quiz by SJU quizzers.ppt
Young adult book quiz by SJU quizzers.pptYoung adult book quiz by SJU quizzers.ppt
Young adult book quiz by SJU quizzers.ppt
 
"Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ...
"Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ..."Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ...
"Quest for Knowledge: An Exciting Journey Through 40 Brain-Bending Questions ...
 
Carowinds 2024: Thrills, Spills & Surprises
Carowinds 2024: Thrills, Spills & SurprisesCarowinds 2024: Thrills, Spills & Surprises
Carowinds 2024: Thrills, Spills & Surprises
 
Inside Look: Brooke Monk's Exclusive OnlyFans Content Production
Inside Look: Brooke Monk's Exclusive OnlyFans Content ProductionInside Look: Brooke Monk's Exclusive OnlyFans Content Production
Inside Look: Brooke Monk's Exclusive OnlyFans Content Production
 

Priori Data - Defining the Relevant Market for your App - Casual Connect Fall 2013

  • 1. Column By the Numbers Defining the Relevant Market for Your App In this article we explore how mobile app publishers can understand demand and opportunities for growth in the niche market specific to each of their apps. Step One: Define the Relevant Market When evaluating the profit opportunity for an app, developers might ask themselves the following questions: How is demand for apps like mine growing? How do I identify where people are downloading and playing the specific kind of games I am creating? Who are my competitors? Am I good enough to beat them? Answering these questions is precisely the goal of market definition—narrowing the universe of apps down to your direct competitors and observing trends within this subset to make informed business decisions. At Priori, we rely on an extensive set of sub-categories based on the core functionality or theme of apps in order to help our developer clients arrive at relevant market definitions for their apps. This classification system can provide an additional level of detail to the native app store categories. For example, over 20,000 apps in the Apple App Store were assigned to the native category “Puzzle Games” as of August, 2013. These same apps map to over 330 Priori Sub-Categories, from “Arcade Ball Games” to “Zombie Games.” For any given app, defining the relevant market can reveal interesting trends not easily visible at the app store or native category level. Step Two: Focus on the Trends that Matter To illustrate how market definition can be useful, let’s use an example from our dataset. We’ll be exploring the Priori Sub-Category “Sudoku” on the iOS platform (iPhone and iPad combined). Here are some key statistics: 6  Casual Connect  FALL 2013 • As of August 11, 2013, we counted 1,609 • apps, 929 publishers, 5M monthly downloads and 37M active users in this sub-category. This makes Sudoku the 85th largest sub-category in terms of global in-month downloads, the 157th largest in terms of number of apps, 72nd in terms of number of active users and 183rd in terms of number of publishers. In Graph 1 we’ve plotted the month-overmonth global download growth (May-July 2013) for the Sudoku sub-category alongside the native category Puzzle Games and the overall Apple App Store. In the graph we can see that in June 2013, global in-month installs of Sudoku apps decreased relative to the prior month, while installs in the App Store as well as the overall native category comprising Sudoku grew. In July, however, monthly installs of Sudoku apps grew at a positive rate. In terms of month-over-month download growth, Sudoku apps outperformed the App Store but underperformed relative to the native category Puzzle Games in July 2013. An individual Sudoku app developer could also plot his individual app’s performance on the above graph to benchmark against his direct competitors and the larger market. This exercise proves useful not only in internal evaluations of an app’s viability, but also when having to prove the market opportunity for an app (or to defend an app’s performance relative to that market) to investors. Graph 1: Global Month-Over-Month Download Growth on iOS Platform 30% 25.9% Native CategoryPuzzle Games 20% 12.1% Sudoko Apps 10% 6% Apple App Store 3.3% 0% -10% -0.4% 0.1% -5.9% -7.4% -20% -25.5% -30% May June July Data for iOS. Sudoku Apps comprises apps classified under Priori Sub-Category “Sudoku”.
  • 2. by Michelle Tran; Data Scientist, Priori Data GmbH; Berlin, Germany 0.3% 29.5% Hungary 69.9% 10 .8% 17.9% Austria 69.9% 7.4% 25 . 8% Finland 65.8% 12.4% 12.3% Germany 62.7% 12.6% 25.7 % Poland 61.6% 15.6% 15.7% Spain 60.8% Graph 2: Share of Sudoku Sub-Category Downloads by Country on iOS Platform (July 2013) 14.4% 16 .1% Italy 60.7% 16 .2% 20.6% India 60.3% 14.6% 25 .0% Norway 60.1% United 59.8% 10 .1% 35.83% 27 .3% United Arab Emirates States 12.98% 19.2% 18 .9% 58.0% Brazil China 6.78% 7.9% 36 .1% 55.7% Portugal Japan United Kingdom 6.33% 14.5% 28.4% South Korea 55.2% Canada 4.85% 12.9% 14.3% Australia 55.0% 4.33% Australia 14.3% 23.2% China 52.5% 4.12% France 20.1% 23.3% Switzerland 51.6% Germany 3.63% 15.0% 21.9% France 51.2% 18 .1% 26.4% 2.74% 50.1% Sweden Spain Netherlands 2.7% 11.5% 39.1% Czech Republic 48.9% 2.41% 16 .5% 18 .5% 45.7% Canada Russia 2.37% Italy 20.3% 28.2% Denmark 44.0% India 21.3% 27.6% 1.54% Japan 42.9% Switzerland 1.42% 20.3% 23.0% Netherlands 42.4% 1.21% 13.7% 17.0% 42.4% United States Sweden > Denmark 17.5% 19.6% 1.15% United Kingdom 40.6% 1.14% 18 .8% 35.1% 33.3% Russia Brazil 1.03% South Korea Norway 0.70% TIER #1 to #3 TIER #4 to #10 TIER #11 to #25 0.63% Austria Poland 0.51% United Arab Emirates 0.41% Finland 0.39% Portugal 0.35% Czech Republic 0.27% Hungary 0.18% Graph 3: Sudoku Sub-Category Download Growth by Country on iOS Platform (June-July 2013) Hungary Poland United Arab Emirates Portugal Spain India Italy Switzerland Norway Australia Netherlands South Korea > Denmark Austria France Russia Finland Sweden Canada Germany United States United Kingdom Brazil Japan China Czech Republic 88.85% 82.66% 72.09% 67.65% 64.53% 58.37% 53.47% 47.16% 46.35% 44.66% 42.44% 41.39% 40.56% 39.68% 37.67% 27.42% 27.3% 24.58% 23.02% 18.45% 12.6% 12.39% 12.11% -9.22% -14.3% -16.81% Step Three: Examine Geographical Variations We’ve seen how downloads have grown at the global level, but it is also interesting to explore how Sudoku apps have performed in different regions across the globe. Let’s explore three different visualizations of the monthly down- loads metric that illustrate the geographical variation within this market. • A relevant market definition is essential to calculating market share—Graph 2—shows how monthly downloads (roughly 5M total) were distributed among the different countries we track. Each • country’s in-month downloads as a share of global downloads is displayed. This metric serves as a proxy for share of global demand within the Sudoku sub-category. A relevant market definition is essential to identifying growth opportunities— Graph 3—shows how monthly installs Fall 2013  Casual Connect  7
  • 3. By the Numbers Defining the Relevant Market for Your App Graph 4: Sudoku Sub-Category Downloads Distribution by Country on iOS Platform (July 2013) Hungary Austria Finland Germany Poland Spain Italy India Norway United Arab Emirates Brazil Portugal South Korea Australia China Switzerland France Sweden Czech Republic Canada > Denmark Japan Netherlands United States United Kingdom Russia 69.9% 17.9% 7.4% 12.4% 12.3% 62.7% 12.6% 25.7 % 61.6% 15.6% 15.7% 60.8% 60.7% 20.6% 60.1% 25 .0% 59.8% 14.4% 16 .1% 60.3% 27 .3% 16 .2% 14.6% 10 .1% 19.2% 18 .9% 58.0% 55.7% 55.2% 7.9% 36 .1% 28.4% 14.5% 12.9% 14.3% 55.0% 14.3% 23.2% 52.5% 20.1% 23.3% 51.6% 15.0% 21.9% 51.2% 18 .1% 26.4% 50.1% 11.5% 39.1% 48.9% 16 .5% 18 .5% 45.7% 20.3% 28.2% 44.0% 21.3% 27.6% 42.9% 42.4% 17.0% 20.3% 23.0% 42.4% 19.6% 40.6% 13.7% 17.5% 18 .8% 35.1% 33.3% grew between June and July in the various countries. This statistic provides insight into which geographic regions are exhibiting positive or negative demand growth. A relevant market definition is essential to assessing the competitive landscape—Graph 4—provides insight as to how the market for Sudoku apps is structured within each country by showing how Hungary Poland in-month downloads are distributed. We United Arab Emirates segment Sudoku apps into three tiers: Portugal •  Tier 1: The top three most Spain India downloaded apps Italy •  Tier 2: Apps four through 10 Switzerland Norway (based on downloaded volume) Australia •  Tier 3: Apps 11 through 25 Netherlands (based on downloadSouth Korea volume) TIER #4 to #10 TIER #11 to #25 in Denmark. Denmark is a small country, but it places among the top 10 countries in the world in terms of smartphone penetration1, so it might be interesting to explore further. What can downloads, as presented in the previous three graphs, tell us about the market for Sudoku apps in Denmark? What questions can this data help us answer? • Is the market large enough to justify my entry in the first place? The Danish market is small, representing a little over 1% of global sub-category downloads, or around 58,000 downloads per month. (Graph 2) • Are the market dynamics in my favor? 47.16% 46.35% Sudoku downloads are growing, and fast. 44.66% Monthly installs grew by over 40% from 42.44% 41.39% June to July. (Graph 3) 40.56% • How are my biggest competitors doing, 39.68% and how many downloads can 37.67% my app 27.42% stand to gain? Comparing the structure of 27.3% the Sudoku apps market in Denmark to the 24.58% 23.02% other countries we track, we see that the 18.45% top three players command relatively less 12.6% 12.39% of the overall market than in other coun12.11% tries. This indicates that Danish users are -9.22% Denmark Austria Often, when observing the top France local players Russia in a given market, there are three that stand Finland out in terms of download volume. And in most Sweden Canada cases, the vast majority of sub-category downGermany loads are represented by the top 25 apps. United States United Kingdom Brazil Putting the Data to Use Japan China Let’s take the example of a Sudoku app devel-14.3% oper looking evaluate theCzech Republic -16.81% 1 http://mashable.com/2013/08/27/global-smartphone-penetration/ market opportunity 8  Casual Connect  FALL 2013 10 .8% 25 . 8% 65.8% TIER #1 to #3 • 0.3% 29.5% 69.9% relatively less concentrated among a few brands. Furthermore, we see that apps that manage to break into the top 25 can expect larger, more evenly spread gains than those same positions in other geographic markets (apps four through 25 command a total of 49% of the market, the fourth highest such figure in our graph. (Graph 4) Conclusion 88.85% 82.66% 72.09% In an industry as fragmented and immature as 67.65% the mobile app industry, a relevant market 64.53% 58.37% definition can go a long way. Having a holistic 53.47% view of the market your app occupies is essential to measuring market share, gauging the health of your app’s segment, and even developing an expansion strategy. Quite simply, a good market definition allows developers to compare apps and app markets on an applesto-apples basis. If you can only see your biggest competitors then you can only say how you size up to them. If you can see all of your competitors, even at the aggregate level, then you know how your app fits into the overall market. This is instrumental both to managing your app’s success and to demonstrating its potential and value to investors. ❉