Presentation on the State of the App Store from Pocket Gamer Connect, 2015. - The relative size of the market - Role of Games - Growth in the App Store - Some observations on what makes Publishers succeed www.prioridata.com

1. POCKET GAMER CONNECT,
San Francisco, July 7-8th
State of the App Store 2015
@anders_lykke, Head of Talking to People
July, 2015
www.prioridata.com
Confidential

2. Agenda
1. Intro
2. Role of Games & State of The App Store, 2015
3. Chance of Success for Gaming Publishers?
4. Some Good News
5. Questions?
Confidential

3. Talking to People at Priori Data
Nationality: Danish (tiny country, happy people, north of Germany)
Twittering: @anders_lykke & @prioridata
Gamer?: Since the break of dawn. Certaintly spent more time than
my mom thought was reasonable playing games.
Before going Tech: I studied opera, did stand-up and had a TV
Production Company in Denmark.
Talked to: about 1000 app publishers over the past 2 years
Excited about: The concentration of talent in the mobile space
Confidential 3
COMPANY OVERVIEW
Anders Lykke
VP OF TALKING
TO PEOPLE
Sales/BD
Ex.

4. 1.
Confidential
INTRO

5. OUR MISSION
Our mission is to crowdsource the world’s largest
panel of mobile app data.
We want to deliver reliable statistics on any app,
publisher and market trend
Confidential 5
WIR SIND WE ANALYSE
EIN BERLINER APP STORES
Founded June 2013
International team of 18

6. Background
Every media era needs to be maken sense of. Priori Data is making sense of the app economy.
Confidential 6
INTRO
TV, Radio, Print
1950s
Web
1990s
Mobile Apps
2010s
??

7. July 10th, 2008: App Store born with 500 apps available
Confidential 7
INTRO

8. Today: Apple’s phenomenal Q1
“Highest-ever revenue & earnings
drive 48% increase in EPS. Growth led
by record revenue from iPhone, Mac &
App Store”
Confidential 8
INTRO
Apple: http://www.apple.com/pr/library/2015/01/27Apple-Reports-Record-First-Quarter-
Results.html)

9. 2015: The Apple App Store
• 70 million downloads / day!
• 1.5 million apps / 480k Publishers
• $1bn paid out to publishers / month
• So… What´s the problem?
Confidential 9
INTRO

10. Confidential 10
NO ONE CAN EVER KNOW!!

11. Confidential 11
NO ONE CAN EVER KNOW!!
HOW ANY OTHER APP IS DOING

12. Collecting public and proprietary data sources to solve the problem
Confidential 12
THE SOLUTION
Public Data
Obtained directly
from the app
stores
Proprietary Data
Downloads,
Revenue, Usage
shared by
publisher

13. Confidential 13
Store Feed “Ranks”
Partner Feed
“Downloads”
0 50 100 150 200 250
30,000
20,000
10,000
0
Publisher
Partner
Data
Curve fitting for download and revenue estimates

14. Keeping up with the Kardashians (and other games) in the App Store
Confidential 14
DATA FOR EVERY GAME AND APP: WWW.PRIORIDATA.COM

15. PRIORI DATA OVERVIEW
Pioneering a Like-for-Like Data Exchange for Mobile App Publishers
15
Partners get free access to data to
Priori Data PRO.
Over 500 top Publishers work with
Priori Data. Together we are
building a better platform for the
Mobile App Economy.
www.prioridata.com/for-app-publishers
Some of our partners:
Confidential

16. 2.
Confidential
STATE OF THE APP STORE
Supply

17. More Apps Across the Board, but with Massive Variance by Category
Confidential 17
STATE-OF-THE-TOP CHARTS - SUPPLY
# of Apps Globally Growth in # of Apps (by Category)
5,200
Dec 31,
2014
June 29,
2015
+6%
1.54m1.44m
Top 5 Categories
+115%
Bottom 5
Categories -24%
But what is driving growth?
(295,445 games)

18. Most volatility in games (growth in #apps Jan-July, 2015)
Confidential 18
STATE-OF-THE-TOP CHARTS - SUPPLY

19. 2.
Confidential
STATE OF THE APP STORE
Demand

20. STATE-OF-THE-TOP CHARTS - DEMAND
Late 2014 Marked a Turning Point in the Top Charts....
20
# App Publisher Category
1 Song Yang Action Games
2 Clash of Clans Supercell Strat. Games
3 Despicable Me: Minion Rush Gameloft Action Games
4 GungHo RPG Games
5 Deer Hunter 2014 Glu Sim. Games
6 Lei Qiao Puzzle Games
7 Flight Through – Hardest.. Zhou Qiao Arcade Games
8 Hay Day Supercell Sim. Games
9 LINE Pokopang Naver Action Games
10 Song Yang RPG Games
# App Publisher Category
1 Facebook Facebook Social Netw.
2 Facebook Messenger Facebook Social Netw.
3 Instagram Instagram Photo & Video
4 WhatsApp WhatsApp Social Netw.
5 AliPay Alipay.com Finance
6 YouTube Google Photo & Vid
7 Snapchat Snapchat Photo & Vid
8 腾讯视频-电视剧，综艺.. Tencent Entertainment
9 Taobao for iPhone Taobao Lifestyle
10 Musify – Free Music Dow Alfadevs Music
Top Global Free Apps on iOS
(in-month downloads, October 2013)
Top Global Free Apps on iOS
(in-month downloads, October 2014)

21. STATE-OF-THE-TOP CHARTS - DEMAND
...where Gaming Apps No Longer Dominated...
21
Top Global Free Apps on iOS
(in-month downloads, October 2013)
Top Global Free Apps on iOS
(in-month downloads, October 2014)
Category
Action Games
Strat. Games
Action Games
RPG Games
Sim. Games
Puzzle Games
Arcade Games
Sim. Games
Action Games
RPG Games
Category
Social Netw.
Social Netw.
Photo & Video
Social Netw.
Finance
Photo & Vid
Photo & Vid
Entertainment
Lifestyle
Music
10 out of 10
Games
0 out of 10
Games

22. STATE-OF-THE-TOP CHARTS - DEMAND
...in 2015 we have (somewhat) Seen a Reversion to Normal
22
Top Global Free Apps on iOS
(in-month downloads, April 2015)
# App Publisher Category
1 Facebook Messenger Facebook Social Netw.
2 Facebook Facebook Social Netw.
3 YouTube Google Photo & Vid
4 梦幻西游-2015国民手游
人人都玩 不玩才怪
网易移动游
戏
Action (Games)
5 WhatsApp Facebook Social Netw.
6 Mortal Kombat X Warner Bros Action (Games)
7 Instagram Facebook Photo & Vid
8 美团团购-团购 Sankuai Lifestyle
9 Uber Uber Travel
10 脑力达人 Tencent Puzzle (Games)
• 3 games
• 3 China-based
• Facebook,
Google, and
(newcomer)
Uber

23. Year to Date, Download: 38% Gaming / Revenue: 48% Gaming
Confidential 23
STATE-OF-THE-TOP CHARTS - DEMAND
Downloads Revenues

24. Year to date, download growth: Driven by Games
Confidential 24
STATE-OF-THE-TOP CHARTS - DEMAND

25. Year to date, revenue growth: Driven by Games
Confidential 25
STATE-OF-THE-TOP CHARTS - DEMAND

26. Confidential
SUMMING UP &
ADDITIONAL
PERSPECTIVES

27. State of affairs
• Market supply (new apps and publishers) continues to grow, meaning more competition amongst
developers/publishers, particularly within gaming.
• Revenue is growing faster than downloads ($20 per 75 installs to $25 per 75 installs in 6 months)
in most categories, suggesting better monetization strategies and/or more consumer willingness
to pay.
• Growth (downloads and revenues) is driven by emerging markets and shifting trends around
gaming categories. Double-digit market growth in established markets appears to be a
phenomenon of the past
Confidential 27
STATE-OF-THE-TOP CHARTS – SUPPLY & DEMAND

28. State of affairs
• Gaming Publishers although fewer in numbers are leading innovation in the App Store
• They are experimenting, publishing new apps and testing new categories much more frequently.,
but…
What chance does a new game have of achieving success in today’s market
environment?
Confidential 28
STATE-OF-THE-TOP CHARTS – SUPPLY & DEMAND
http://mobiledevmemo.com/mobile-games-a-flawed-industry-guest-post/

29. 3.
Confidential
CHANCE OF SUCCESS?

30. There is more freshness in the Top Charts than you think
Daily # of NEW Apps in Top 200 Overall Charts (by country, by chart type, over 2 week period)
Confidential 30
TOP CHARTS
100-120
New Apps
Achieve a
Top 200
Overall
Position
Every Day.
Australia #1 test
market (58 new
games each day)

31. Confidential 31Priori Data Chart Freshness Analysis.
Avg. Length of Stay for New Apps% of New Apps Out Within 1 Day
days
days
Arriving in the Top Charts is One Challenge. Staying is Another.

32. What we have learned from our data and best Publisher Partners?
• Yes, there are opportunities for new apps to claim the precious space in the Top Charts.
• The core question should not be whether you can land a position in the Top Charts, but for how
long you can sustain it?
• Little room for failure: Testing and UA has become more expensive as CPIs continue to go up
(FIKSU: $3 per install for free to play games) “…this seems like a flawed industry: You need
DATA, DATA, DATA”. Michael Velkes. VP Marketing at Plamee.
• Do the research, set expectations right: A lot of publishers are taken by surprise. They run out
of money, or they simply target the wrong market.
• Data alone won’t do it. You need people who can phrase the right questions: What is our
optimal rank, where is local demand for our niche game on the rise? What is the necessary
budget to reach out goal?
Confidential 32

33. 4.
Confidential
SOME GOOD NEWS!

34. Indie App Developers Grow in Numbers and Revenues
Confidential 34
In 6 months, nearly 1,000 new developers have entered the >1k/month revenue
bracket. # and % Increase of Developers per Income Bracket

35. Thank you!
www.prioridata.com/for-app-publishers
Confidential
anders@prioridata.com