The market for mobile apps is already big and it’s just going to keep getting bigger. If your business doesn’t already have a mobile app, it might be time to think about developing one. By 2017, it’s expected that over 268 billion downloads will generate $77 billion worth of revenue. Through InMobi’s State of App Downloads and Monetization report, we attempt to provide an in-depth look at the trends and patterns the mobile app economy displayed in 2014. We have analyzed millions of impressions and installs served each month through our network to provide market specific insights that can help developers craft a successful app acquisition and monetization strategy. Here are some questions the report answers. Which markets have growth potential? Which markets are growing expensive? Which category of apps grew in 2014? Which countries monetize best?

1. State of App Downloads
and Monetization 2014
MARCH 2015
www.inmobi.com/insights

2. The State of Mobile App Installs and Monetization
METHODOLOGY
InMobi’s State of App Installs and Monetization Series provides network insights for app developers,
publishers and advertisers. Through analysis of millions of impressions and installs served each
month, this report showcases the latest trends within the mobile app ecosystem on our network.
ABOUT THE RESEARCH
The information contained in this report is based on data collected through InMobi’s monetization
and installs platform. Only data with all standard fields completed was included for analysis. Percent
change is calculated using absolute numbers, quarter over quarter. Keep in mind that CTR
performance may not be indicative of ad effectiveness. Many brand advertisers track other metrics,
such as engagement rates, interaction rates, dwell time, etc.

3. Table of Contents
Insights
Key Metrics by Region and OS
App Installs - Deep Dive
App Monetization - Deep Dive
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2
3
4

4. Cost per Install (CPI) Index
The cost incurred by an advertiser to get an app installed by a user on his or her device.
All cost data in this presentation is indexed to the Global CPI on the InMobi Network.
Country CPI Index = --------------------- X 100
Country CPI
Global CPI
If an imaginary country Krypton’s CPI = $0.53, and Global CPI = $2.1, then
Krypton CPI Index = ------------- X 100 = 25
$0.53
$2.1

5. Effective Cost per Mile (eCPM) Index
The earnings of a developer on delivering a thousand impressions.
All earnings data in this presentation is indexed to the Global eCPM on the InMobi Network.
Country eCPM Index = --------------------- X 100
Country eCPM
Global eCPM
If an imaginary country Krypton’s eCPM = $0.53, and Global eCPM = $2.1, then
Krypton eCPM Index = ------------- X 100 = 25
$0.53
$2.1

6. Insights1

7. Asia Pacific witnessed the highest growth in ad impressions and app installs
Android dominates iOS in share of ad impressions and app installs globally.
Countries with higher smartphone penetration witnessed slower growth in app installs
App installs costs (CPI) and eCPMs are a function of smartphone penetration.
Germany is the most expensive iOS market with the highest CPI Index for iOS
South Korea is the most expensive iOS country relative to Android.
Entertainment app installs grew by 273%
Games maintained a consistent growth of 123%.
Tablets earned developers higher eCPMs over Smartphones across iOS
iPhones outperformed Android devices on eCPMs.
1.
2.
3.
4.
5.
Insights

8. CPI and eCPMs by Region
OS Share of Ad Impressions by Region
OS Share of Ad Installs by Region
CPI and eCPMs by OS
Y-on-Y Growth in Ad Impressions
Y-on-Y Growth in App Installs
Key Metrics by Region and OS2

9. OS Share of Ad Impressions by Region
Asia Pacific North America Europe Latin America Middle East Africa
Android iOS
66%
34%
39%
61%
35%
65%
87%
13%
68%
32%
91% 9%
ShareofAdImpressions
Android dominates iOS in ad impressions. It is
a near monopoly in Latin America and Africa.

10. Asia Pacific North America Europe Latin America Middle East Africa
Android iOS
30%
69% 43%
56%
35%
58%
85%
13%
73%
27%
64% 5%
ShareofAppInstalls
OS Share of Ad Installs by Region
Android dominates iOS globally in app installs given its install
base. It is more dominant in APAC, Latin America and Middle East

11. 28% Y-on-Y Growth in App Installs
Q1 2014 Q2 2014 Q3 2014 Q4 2014
APAC NA Europe Latin America Middle East Africa
GrowthinAppInstalls
APAC and NA witnessed high growth in app
installs driven by higher appetite for apps
51%
30%
19%
18%
42%
30%
-25% 16% -15%
-20% 22% 28%
68%
90% -44%
76%
45% -19%

12. Fastest Growing Markets
CPI in Key Markets
Per Capita Installs by Markets
Cost per Install by OS
iOS Premium Over Android
App Install by Category
CPI and App Install Growth by Category
App Installs - Deep Dive3

13. Fastest Growing Markets
0%
100%
200%
300%
400%
0% 23% 45% 68% 90%
InstallGrowth
Smartphone Penetration*
USA
China
Indonesia South Korea
Russia
Philippines
Malaysia
Germany
UK
Note : Install Growth is computed against 2013 install numbers.
* Source : eMarketer
France
Countries with higher Smartphone penetration
witnessed slower growth in app installs

14. Global USA China Indonesia India South Korea Russia Philippines Malaysia Germany UK
169
261
134
43
87
231
112
102105
142
132 136
166
4137
45
132
70
34
94
121
84
159
104
45
38
57
135
77
39
105
131
100
Country CPI Index Android CPI Index iOS CPI Index
Cost per Install by OS

15. 0
30
60
90
120
0% 75% 150% 225% 300%
CPI and App Install Growth by Category
Note : Install Growth is calculated against the beginning of the year
Games
Communication
Entertainment
mCommerce
Business
Install growth
CPIIndex
Entertainment grew 273% while Games maintained consistent
growth. CPIs were highest for Games, as demand intensified

16. Ad Impressions by Device Type
Tablets Outperform Smartphones
In-App Ads eCPM = 3x of Mobile Web
Top 5 Publisher Categories by eCPM
Top 3 Ad categories that work for Publishers
eCPM and Smartphone Penetration
eCPM and CPI
4 App Monetization - Deep Dive

17. 2014 Q1 2014 Q2 2014 Q3 2014 Q4
Smartphone Tablet
Ad Impressions by Device Type
+ 14%
+ 29%
+ 18%
- 14% + 46% + 9%
Ad impressions on tablets grew marginally, matched
by corresponding decline in tablet sales globally

18. Top 5 Publisher Categories by eCPM
Games earned developers the highest eCPMs driven by innovation in ad formats such as rewarded video.
Entertainment as a category has grown in terms of both app installs and eCPMs.
186 136 122 118 115
Games Entertainment Education Lifestyle Productivity

19. eCPM and Smartphone Penetration
0
35
70
105
140
0% 23% 45% 68% 90%
eCPMIndex
Smartphone Penetration*
China
India
South Korea
RussiaPhilippines
Malaysia
* Source : eMarketer
Indonesia
Germany
USA
UK
Markets with high smartphone penetration yield higher eCPMs. South Korea
saw relatively lower eCPMs despite its high smartphone penetration.

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