"Новые герои индустрии социальных игр: приложения для iOS и Android", Richard Firminger, Managing Director (Europe), Flurry Analytics
1. The New Hero in Social Gaming
iOS & Android Apps
Richard Firminger
General Manager, EMEA
June, 2012
2. APP ADVERTISING & MEASUREMENT PLATFORM
Flurry Analytics
Better apps on iOS, Android, BB, WP, HTML5
App Developers: 70,000
Live Applications: 185,000
Devices per month: 530M
Sessions per month: 36B
Events per month: 350B
AppCircle Ad Network
Acquisition & Monetization: iOS, Android
App Developers: 6,200
Devices per month: 200M
Daily Completed Views 3M
3. iOS & ANDROID ADDRESSABLE MARKET
GLOBAL
POPULATION
7 BILLION
Sources: United States Census Bureau
4. iOS & ANDROID ADDRESSABLE MARKET
GLOBAL POPULATION 7 BILLION
MOBILE PHONE
SUBSCRIPTIONS
6 BILLION
Sources: US Census Bureau; International Telecommunication Union
5. iOS & ANDROID ADDRESSABLE MARKET
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET
USERS
2.3 BILLION
Sources: US Census Bureau; International Telecommunication Union
6. iOS & ANDROID ADDRESSABLE MARKET
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET USERS 2.3 BILLION
WORLDWIDE
AFFLUENT ADULTS
2 BILLION
Sources: US Census Bureau; ITU; CIA World Factbook; IMF; Professor Roy Adler, Pepperdine University
7. iOS & ANDROID ADDRESSABLE MARKET
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET USERS 2.3 BILLION
AFFLUENT ADULTS 2 BILLION
iOS & ANDROID
530 MILLION
Sources: US Census Bureau; ITU; CIA World Factbook; IMF; Professor Roy Adler, Pepperdine University; Facebook; Flurry
8. iOS & ANDROID ADDRESSABLE MARKET
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET USERS 2.3 BILLION
AFFLUENT ADULTS
2 BILLION ONLY ~25%
PENETRATED
OF ITS TOTAL
iOS & ANDROID ADDRESSABLE
MARKET
530 MILLION
Sources: US Census Bureau; ITU; CIA World Factbook; IMF; Professor Roy Adler, Pepperdine University; Facebook; Flurry
10. APPS EATING THE INTERNET
U.S. MOBILE APPS VERSUS WEB CONSUMPTION
WEB BROWSING MOBILE APPS
94
81 MINUTES
70 66 74 MINUTES 72
64 MINUTES
MINUTES
MINUTES MINUTES
MINUTES
43
MINUTES
June 2010 Dec 2010 June 2011 Dec 2011
Sources: comScore, Alexa, Flurry Analytics; Smartphones & Tablets, U.S.
11. HOW BIG IS THIS? 10X PC AND 2X INTERNET
USERS PER PLATFORM 5 YEARS AFTER LAUNCH (MILLIONS)
446
248
48
PC (1983) Internet (1995) iOS & Android (2007)
12. iOS & ANDROID GAMES COMMAND CONSUMER TIME
DAILY SMARTPHONE APP CONSUMPTION, MINUTES PER CATEGORY, WW
7
7 10
10 12
11
24
15
25 24
Q1 2011(68 minutes) Q1 2012 (77 minutes)
Games Social Networking News Entertainment Other
Source: Flurry Analytics, Smartphones, WW
13. iOS & ANDROID GAMES EATING TRADITIONAL GAME REVENUE
U.S. PORTABLE GAME SOFTWARE BY REVENUE
19%
34% 36%
11%
57% 58%
70%
9% 6%
2009 2010 2011
iOS & Android Sony PSP Nintendo DS
Source: Flurry Analytics, The NPD Group; Flurry analysis & estimates
14. INDIES DOMINATE ESTABLISHED COMPANIES ON iOS & ANDROID
INDIE VS. ESTABLISHED GAME SESSIONS ON iOS & ANDROID, WW
40% 32%
44%
60% 56%
68%
Q1 2010 Q1 2011 Q1 2012
Independent iOS & Android Game Developers Game Companies from other Platforms
Source: Flurry Analytics
15. BUSINESS MODEL: APP STORE TOP 25 GROSSING
UNITED KINGDOM FRANCE GERMANY
4%
16%
24%
84% 96% 76%
UNITED STATES CHINA TOTAL
8% 12% 13%
92% 88% 87%
IN APP PURCHASE PRICING PREMIUM PRICING
Source: iTunes App Store, May 2012, Flurry analysis
16. APPS VS. GAMES: APP STORE TOP 25 GROSSING
UNITED KINGDOM FRANCE GERMANY
28% 40%
36%
64% 60%
72%
UNITED STATES CHINA TOTAL
12% 12%
30%
70%
88% 88%
GAMES APPLICATIONS
Source: iTunes App Store, May 2012, Flurry analysis
17. WW 2011 App Ecosystem Revenue
WORLDWIDE REVENUES FOR 2011: $3.8 B – IOS AND ANDROID
Mobile
Advertising 24%
In-App
52% Purchases
App Sales 24%
18. GEN Y PLAYS
TIME SPENT BY DEMOGRAPHIC
18%
Males (53%) Females (47%)
16%
17% 17%
14% 15%
12%
12%
10% 11%
11%
8%
6%
7% 7%
4%
2% 2% 1%
0%
13 – 17 18 – 24 25 – 34 35 – 54 55+
19. GEN X PAYS
MOBILE FREE-TO-PLAY GAMES: MONEY SPENT BY DEMOGRAPHIC
30%
29% Males (58%) Females (42%)
25%
20%
20%
15%
16%
10% 12%
9%
5% 3% 2% 7%
1% 1%
0%
13 – 17 18 – 24 25 – 34 35 – 54 55+
Source: Flurry Analytics
21. The App Download Is Only The First Battle
Consumers download an average of 85 apps
But use only 5-10 apps in a given week
Source: Flurry Analytics, Jan 2012 – March 2012
23. TOP 6 SUCCESSFUL GAME TYPES
ENDLESS PASS TIME NURTURING & COLLECTING BUILDING & SIMULATION
SOCIAL RPG GAMER’S GAME POKER / CASINO
24. Endless Pass Time
Examples Age Distribution
30%
25%
20%
15%
10%
5%
Angry Birds Fruit Ninja 0%
13-17 18-24 25-34 35-54 55+
Key Genre Attributes
• Intuitive, simple puzzle/arcade mechanics
58% 42%
• Leverages h/w (touch, accelerometer)
DAU 1,000,000
• Cute, often original IP; mass-mkt appeal
Monthly Revenue $500,000
• Infinite replay value; lots of power-ups
Investment (minor) $100,000
• May have social leaderboards
Investment (major) $400,000
25. Social RPG
Examples Age Distribution
40%
35%
30%
25%
20%
15%
10%
5%
Crime City Original Gangstaz 0%
13-17 18-24 25-34 35-54 55+
Key Genre Attributes
• Text-based RPG mechanic
79% 21%
• Player-vs-player gameplay
DAU 150,000
• Energy /HP depletion
Monthly Revenue $600,000
• Clan / team dimension + message / chat
Investment (minor) $100,000
• Mission-based & level progression
Investment (major) $400,000
26. Gamer’s Game
Examples Age Distribution
50%
40%
30%
20%
10%
Infinity Blade II Real Racing 2 0%
13-17 18-24 25-34 35-54 55+
Key Genre Attributes
• Platform-leading graphics
91% 9%
• Strong physics engine / middle-ware
DAU 50,000
• Sports / battle / racing style sub-genres
Monthly Revenue $400,000
• Defined win-lose outcomes
Investment (minor) $100,000
• Premium pricing model, often $4.99+
Investment (major) $400,000
27. Flurry Services
Analytics: Increase Your App Engagement and Retention
1 • Free and powerful. Leading app analytics (iOS, Android, WP, BB, J2ME, HTML5)
• Understand and segment app audiences to maximize engagement and revenue
AppCircle: Build & Grow Your App Audience
2 • Acquire users with high-quality app recommendations and videos (iOS, Android)
• Win-back your best users to build the most loyal and best monetizing audience
AppSpot: Maximize Your App Audience Revenue
3 • 2X revenue, reduce cost with free ad serving and mediation, yield-optimized ads
• Max eCPMs with mediation and yield optimization leveraging Flurry’s big data set
• Max eCPMs selling direct, segmented parts of your audience to top advertisers
Ad Analytics: Measure the value of your mobile campaigns
4 • Track your mobile marketing across across all platforms and sources or traffic
• Go deep & truly measure the value of your acquired audiences
• Understand key metrics such as frequency, session length, retention and ROI
TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS:ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVEAny other demo/socio classifications?
VS. TAM, iOS & Android only ¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVE
VS. TAM, iOS & Android only 25¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVEONLY JUST GETTING STARTEDTHE GOOD NEWS IS THAT YOURE IN THE BIGGEST CATEGORY BY TIME SPENT AND REVENUE LOOK WHAT YOU’VE DONE TO NINETENDO AND SONY??!!AND INDIES ARE THRIVINGTHE MARKET IS MATURINGMAYBE NOT AS WIDE-OPEN AS IT WASTIME TO GROW UP AS AN INDUSTRY, BE MOR EDISCPLINED AND PLANNEDKNOW YOUR MARKETS, GENRES AND CATEGORIES, PLAN, TEST, RESEARCH, SEGMENTDISTRIBUTION IS GETTING MORE EXPENSIVEREWARDED INSTALLS WILL PROBABLY GO AWAY EVENTUALLY REPLACED BY A MORE SCIENTIFIC APPROACH TO BUYING ENGAGED USERS NOT ONE-OFF DOWNLOADSCHASING RANK BY BUYING INSTALLS IS GOING TO GET HARDERBUT WE JUST STARTING OUT – THERES HOPE AND FEAR IN EQUAL MEASURE
Andreessen wrote that every sector is being disrupted by software.But the truth is that APPS are eating software. They are the deliver mechanism of software today, and growing faster than anything any of us have ever seen.Read and reference the WSJ article, “Why Software is Eating the World” by Marc Andreessen, August 11, 2011.SOFTWARE DISRUPTING ALMOST EVERY INDUSTRY FROM PC TO AUTOMOTIVE, TO PHOTOGRAPHY TO MUSIC, BOOKS TO GAMES (MORE ON THAT LATER)HP, AMAZON, GOOGLE/MOTOROLAAND APPS AS THE MOST DISRUPTIVE FORM OF SOFTWAREEG FACEBOOK & MOBILEWE ALL HAVE APPS THAT WE USE AS AN INTEGRAL PART OF OUR DAILY LIVES
Jan 2012 – 36hrs online according to comscore. Europe: Feb 2012 – 28.2hrs online according to comscore.
FASTEST GROWINGPC IN THE 80’S, INTERNET IN THE 90’S, SMARTPHONES & APPS IN THE 00’SBIGGEST CONSUMER CONTENT REVOLUTION IN OUR LIFETIME
… but they are challenged for the first time by other categories. With more competition for the consumer’s time, games companies must work harder and smarter to retain and monetize the users they do acquire.SOCIAL NETWORKING NOW FOR THE FIRST TIME BIGGER THAN ANY OTHER SECTORSOCIAL NETWORKING AS A CATEGORY ACTUALLY GROWING FASTER THAN FACEBOOK SO GAMES COMPANIES HAVE TO WORK HARDER & SMARTER TO RETAIN AND MONETISE THE USERS YOU DO ACQUIREPinterest path and other social networking becoming more interesting and populer and maybe those causal time-burning games less engaging these days? WE REFER TO THEM LATER IN THE PRESENTATION AS ENDLESS TIME BURNERS…
Games are a disruptive force in the total gaming category, decimating the portable (aka handheld) category, traditionally dominated by Nintendo and Sony.REVENUE FROM IOS AND ANDROID IN MARKET SHARE TERMS HAS GROWN FROM 19% IN 2009 TO JUST UNDER 60% LAST YEAR – IN JUST THREE YEARS!SMART, POWERFUL, ANYTIME/ANYWHERE DEVICES THAT ARE ALWAYS IN YOUR POCKETARE RAPIDLY MAKING SPECIALIST HAND-HELD GAMING UNITS OBSOLETE
SPEARATE SESSIONS BETWEEN INDEPENDENT WHO STARTED THEIR BUSINESS IN MOBILE ON IOS AND ANDROID AND THOSE ESTABLISHED GAMING COMPANIES WHO EXTENDED TO MOBILE Q1 2010 60% OF IN APP GAMES SESSIONS OCURRED IN APPS BUILT BY INDEPENENTSQ1 2011 THIS DROPPED TO 56% BUT BECAUSE OF ESTABLISHED GAME COMPANIES GUYING INDIE EG EA AND CHILLINGO ZYNGA AND NEWTOY DENA AND NGMOCO AND GAMEVIEWBUT BY Q1 OF THIS YEAR INDEPENDENTS APPEARED TO RALLY AND RESTORE DOMINANCEHISTOTICALLY THE VIDEO GAMES MARKET HAS BEEN DOMINATED BY THE ESTABLISHED COMPANIES SUCH AS EA, UBISOFT AND THE SUCH LIKE - HIGH COSTS OF ENTRY IN PRODUCTION, MARKETING AND DISTRIBUTION AND HIGH RETAIL PRICE POINTS CREATED RISK FOR COSNUMERS TO TRY NEW TITLESMOBILE WITH APPLE AND GOOGLE HAS CREATED AN OPEN EGALITARIAN MARKET AND TWO GUYS IN A GARAGE CAN EFFECTLY COMPETE WITH MAJOR BUE-CHIP GAMES COMPANIES
iOS only Analyis of ALL app stores literally from yesterdayTop 25 grossing in each marketPremium or freemiumGive it away for free, compelling experience and over time extract revenueCredit card or gift card derived payment ability65% freemium revenue and one assume that’s grownG TOO
And then this simply a count of apps v games in the top 25 grossingSo games arestill where users are spending the most money so remians easily the most lucrative
GEN Y - YOUNGER 20-EARLY 30S DEFINITION IN WIKIPEDIA BORN 1980 AND AFTER, UNDER 30GEN X LATE 60’S TO 1980, OVER 30 TIME SPENT AGE V SEX IN FREEMIUM GAMESYOUNGEST TO OLDEST, LEFT TO RIGHTTOTAL TIME SPENT 53% MEN, 47% WOMENRELATIVE EVEN SPLIT BETWEEN THE SEXES18-34 MALES AND FEMALES BEING THE LARGEST GROUPMAJORITY TIME SPEND BY THE YOUNGER, FREE-TO-PLAY WITH A LOT OF GAME TIME IN THE GRIND COMPARED TO OLDER WHO SPEND TO GET THEIR WAY OUT OF IT/
Men lead women in spending, with the greatest difference occurring in the 25 – 34 year old age group. For freemium games, spending is concentrated between the ages of 25 - 54, with men in this age range representing nearly half (45%) of spending and women representing another third (32%). TIME PORR/CASH RICH
MEN SPEND 31% MORE PER TRANSACTION - $15.6 VERSUS $11.9THE “SWEET SPOT” IS 25-34 YEAR OLD AGE GROUP REPRESENTING 49% OF REVENUE!AND IN THIS CATEGORY MEN OUTSPEND WOMEN BY 37% PER TRANSACTIONAVERAGE SPEND PER TRANSACTION IS $14EXPLAINS ZYNGAS 3% OF USERS ACCOUNTING FOR 80% OF REVENUE
Just because a user has downloaded an app, doesn’t mean the app “owns” that user. The battle for user attention continues, not only from the 600k additional apps they might consider,but also because:The average user downloads 85 apps (Flurry data)Attention is limited: Average user only uses to 5-10 apps per week
With the multitude of new apps competing for a user’s attention, the average app struggles to retain users, losing over 75% after three months.
KNOW YOUR GENRE, AUDIENCE, MAJOR APPS, ATTTIBUTESMONTLHY REVENUE IAP AND ADVERTISINGOUR WAY OF CATGEORIES – BECAUSE WE SEE MORE APPS THAN ANYONE ON THE PLANET – THESE CATGORIES SHOULD HOLD UP PRETTY WELLIN FILM CATEGORIES ARE REALLY ESTABLISHEDPUZZLE ARCADEGAMES ARE HARD TO SELL ADVERTISING AS THE FOCUS ON IAP OPTIMISATION5% MAKING UP ALL YOUR REVENUE, MONTISE THE OTHER 95% BY SHOW EVENT = COMPLETE IAP THEN CREATE CUSTOM SEGMENT, RUN A CAMPAIGNCUSTOM SEGMENTATION