1. THE APPSTORE OPPORTUNITY
Hendrik Koekkoek

2. WE KNOW APP STORES
1. DISTIMO COLLECTS FACTUAL AND TIMELY MARKET DATA, WORLDWIDE
2. DEDICATED TO MARKETS WHERE APP STORES ARE LEADING DISTRIBUTION CHANNEL
3. INDEPENDENT AND CROSS-STORE ANALYSIS, APPLYING SAME METRICS TO EVERY STORE

3. DISTIMO MONITOR – TRACKING 1.5B DOWNLOADS / QUARTER
FREE – TRUSTED BY 8,000 DEVELOPERS
1. FREE CROSS-PLATFORM APP STORE MONITORING TOOL FOR DEVELOPERS
2. SUPPORT FOR ALL MAJOR APP STORES
3. TRANSACTIONAL DATA ALLOWS US TO BENCHMARK APPLICATIONS WITH THE MARKET

4. DISTIMO REPORT
TOP APPS & BENCHMARK REVENUE &
PUBLISHERS APP STORES BUSINESS MODELS
WHAT IS THE MOST HOW DO THE DIFFERENT WHAT ARE VOLUMES
SUCCESSFUL AND LOCAL APP STORES COMPARE IN THE MARKET?
CONTENT? OVER TIME? HOW DO APPS MONETIZE?
COVERING EVERY APP - IN EVERY MAJOR APP STORE - IN EVERY COUNTRY

5. THE APPSTORE OPPORTUNITY

6. APPS ARE A $10 BILLION MARKET
GROWING AT 100% PER YEAR
 Majority Games, roughly 50% of all free downloads are Games.
 For paid applications this figure is even higher, 60% of all paid downloads are Games.
 But in terms of revenue, more than 75% of revenue derives from Games.
 Angry Birds is downloaded (600M+) over 3 times as much as number of Nintendo DS’s sold
* Mary Meeker / Distimo, based on 200 most grossing / popular applications in United States – March 2012

7. RANKING & NETWORK EFFECTS
SPEED UP POPULARITY
To get To 1 Million Users It Took:
9 Years 9 Months 9 Days
 Number 1 generates about 1.5 times as much downloads as number 2.
 Ranked around 10 means 3 times as much downloads as being ranked around 50.
* Distimo, based on 200 most popular applications in United States – March 2012

8. BUT POPULARITY IS TEMPORARY AND
CONSUMERS ARE NOT LOYAL
Number Of Games In Top Games 100 296
Number Of Games In Top Games 50 157
Number Of Games In Top Games 10 46
“average worldwide 6-
month retention rate for all
apps was 36%
* Flurry / Based on 100 most popular free games in United States – March 2012

9. MONETIZATION IN APPSTORES

10. IN-APPS DRIVE APP REVENUE
59% - 72% 64% - 86% 74% - 83%
Free applications with in-apps Paid applications with in-apps Paid applications without in-apps
 In all stores more than 59% of the revenue derives from in-apps!
 Recently introduced in Amazon App Store, will come to Windows Phone 7 Marketplace as well
* Based on 200 most grossing apps in United States – March 2012

11. 50% USE VIRTUAL CURRENCIES
51% 49%
 Including many of the most popular games in March 2012
Draw something – OMGPOP Draw something – OMGPOP
Temple Run – Imangi Plumber Crack – Fluick
Word With Friends - Zynga Hidden Objects - Disney
* Based on 200 most popular free games in United States – March 2012

12. IMPACT OF COUNTRIES CHANGING
RAPIDLY

13. APAC COUNTRIES LARGEST MARKET
FOR IPHONE DEVELOPERS
4M 3.2M 1.3M 0.9M 0.6M
IN FEBRUARY CHINA SURPASSED THE U.S. AS THE LARGEST MARKET IN THE APPLE APP STORE FOR IPAD
* Based on 200 most popular free iphone applications in each country – March 2012

14. BUT WHEN DEVELOPING ABROAD, ACT
LOCALLY
100%
90% 75%
80% 75%
68%
70%
58% 56% 56%
60% 54%
50%
40% 36%
42% 45%
38% 68%
30% na
20%
58%
 In many countries the majority of the downloads originate from applications that have translated
their content in the country’s language.
 In China, of the 300 most popular free applications, 60% were only popular in China compared to 21%
in the United Kingdom and 22% in the United States.
* Based on 300 most popular free applications in United States – March 2012

15. IMPACT OF STORES CHANGING

16. GOOGLE PLAY MONETIZATION IS
GETTING BETTER
May 2011 March 2012
<100 <100
71.9% 63.85%
>50,000 >50,000
0.1% 1.15%
1,000-49,999
7.3% 1,000-49,999
9.29%
100-999
100-999
20.7%
25.71%
 The number of available applications more than doubled in the same time-frame.
 Daily revenues increased by 65% over the first quarter 2012.
* Based on 200 most grossing applications in United States – March 2012

17. BUT WATCH AMAZON
4
Millions
3
2
1
400k
0
 Already 400k daily downloads of which 10% is paid
 Got to 32k applications in one year, the majority also being available in Google Play
 Of the 110 applications available in both stores that generate more than 200 USD a day in at least one of
both stores, 42 of those earned more money in the Amazon Appstore.
 After launch of Kindle Fire daily downloads increased fourteen-fold
* Based on 100 most popular / grossing applications in United States – March 2012

18. WHAT ABOUT THE OTHERS
APP STORES?
 Strong momentum, relative number of applications growth
highest of all app stores.
 Download figures increased by 114% to over 100k per day in the last quarter
 Taptitude making over $1000 a day (ads)
 Port to Android applications to BlackBerry platform seems to be successful, increase in
number of applications submitted to App World (15k – 20k PlayBook applications already
available).
* Based on 200 most popular applications in United States – March 2012

19. DISTIMO APPLINK; THE CROSS STORE
APP SOLUTION

20. DISTIMO APPLINK; THE CROSS STORE
APP SOLUTION

21. ANALYZE YOUR (COMPETITORS)
PERFORMANCE
GOTO MONITOR.DISTIMO.COM
OR ASK ME FOR A DEMO

22. THANK YOU
FOR ANY ENQUIRIES, PLEASE CONTACT:
HENDRIK KOEKKOEK
HENDRIK@DISTIMO.COM
@HENDRIKKOEKKOEK / @DISTIMO
Custom in-depth The free cross-
app store market platform app store
reports for carriers monitoring tool for
& manufacturers developers
For more info, visit report.distimo.com For more info, visit monitor.distimo.com