In Mobi App Insight Report Q3 2013

Global data from In Mobi covering the top trends in mobile app promotion campaigns. In Mobi have analyzed thousands of app promotion campaigns that ran on their mobile network.

http://www.inmobi.com/insights/whitepapers/

1. APP INSIGHT REPORT Simplifying Mobile
APP INSIGHT REPORT
Q3, 2013

2. APP INSIGHT REPORT TABLE OF CONTENTS
01
02
03
InMobi App
Insight Report,
Q3 2013
Adding up the
world : Global app
promotion trends
Top Trends &
insights to drive
downloads
effectively for your
Apps
04
Glossary
Bang on
Target:  Sites
you should
target for
maximum
conversions
Creative
Matters : Ad
formats that
work best for
your app
Tips & Tricks
to win on
Tablets
Cut costs
without
cutting
corners
Market
Spotlight :
Taming the
Chinese
Dragon

3. APP INSIGHT REPORT As app developers, you’ve spent time designing, developing and delivering your app.
Now you are on the brink of beginning the next important phase – acquiring users.
But guess what, the mobile app ecosystem is a highly competitive marketplace. App
developers constantly jostle for their niche in an already crowded market. Carving
out that space is not easy unless you have the right tools of knowledge in your
pocket and know what you need to, to be successful in this effort. This is where the
InMobi App Insight report comes in.
As part of the first edition of this report, we have analyzed thousands of app promotion
campaigns that ran on our network. Following thorough number-crunching and in-
depth research, we present data that is visually arresting, quantitatively significant
and vital to your app’s success. We’ve selected global data from Q2 2013 to arm
you with knowledge of the top trends in app promotion campaigns that can help
you effectively drive app downloads globally. Aligning your app with these insights
will make your product stand out in the vast ecosystem and give your app that
competitive edge!
InMobi App Insight report
Q3 2013
01

4. APP INSIGHT REPORT InMobi continues to power millions of app installs for top developer studios and
independent developers across the world. In Q2 2013, US continued to be the
most favorite battleground for developers looking to drive downloads on our
global ad network, with several of them also vying to tap into the high smartphone
penetration and expansive mobile subscriber base that markets such as India, China
and Japan represent. As more users get access to mobile media, large markets
such as Indonesia are also becoming increasingly valuable for app developers, with
the country holding the fifth spot on our top list of countries for app promotions.
Adding up the world :
Global App Promotion Trends
Over 50 Million app installs were delivered on the
InMobi network in 2013 YTD.
02

5. APP INSIGHT REPORT Chart 1: % of App Downloads By Country, Q2 2013
Network highlight: The top 5 countries accounted
for over 60% of the overall app downloads
33.8%USA
9.5% India
9.1% Japan
7.7% China
4.6% Indonesia
4.2% South Korea
3.5% Canada
3.0% United Kingdom
2.5% Australia
2.4% Spain
2.1% France
1.9% Mexico
1.6% Germany
1.5% Italy
1.2% Brazil
1.1% Sweden
1.0% Thailand
03

6. APP INSIGHT REPORT According to Juniper Research’s report, “Future App Store: Discovery, Monetization&
Ecosystem Analysis 2013-2018,” gaming will fuel a sharp hike in app downloads with
experts predicting that, in 2017, over 160 billion apps will be downloaded globally
onto consumer handsets and tablets. The trends observed on the InMobi network
are in tandem with this prediction, with games as a category representing 64% of
the total apps downloaded through our network.
Games represented the most
downloaded app category on the
InMobi network in Q2 2013
04

7. APP INSIGHT REPORT Chart 2: % of App Downloads By Category, Q2 2013
Games
64.0%
Communication
11.3%
Social
1.1%
Travel
0.9%
Consumer
Packaged
1.1%
Mobile
Content & Others
1.8%
Telecom
6.8%
Entertainment
4.0%
Business &
Productivity
2.6%
eCommerce
2.7%
Retail
0.5%
Health
& Fitness
0.4%
Sports
0.4%
Education
0.3%
05

8. APP INSIGHT REPORT Top trends & insights
to drive downloads
effectively for your apps
06

9. APP INSIGHT REPORT As a developer, you know that designing the right ad experience is crucial to
grabbing the user’s attention and coaxing them to download your app. While simple
banners continue to do this job quite well, mobile advertising today offers far more
interesting options, ranging from rich media and interstitials to expandable ads and
other unique ad formats. So which one do you pick for your app?
01
Creative Matters: Ad formats that work
best for your app
07

10. APP INSIGHT REPORT 1a. Interstitials rule the roost
Upto 25% Click through and 10% Conversions seen on interstitial
ads on the InMobi network
Lifestyle
2.1%
Games
2.7%
Weather
3.2%
Music & Audio
5.2%
Productivity
5.0%
Health
& Fitness
5.6%
Tools
3.3%
Sports
3.0%
Education
2.1%
Books &
References
2.0%
Entertainment
1.9%
News &
Magazines
1.7%
Social
Networking
1.0%
Media & Video
1.6%
Comics
8.0%
Chart 3: Average Conversion Rates On Interstitials Across App Categories – Q2 2013
08
When it comes to promoting your app, we notice that there’s something almost
magical about interstitial ads. Maybe it’s the way they expand to overtake your
whole screen with a rich HTML5 image. Maybe it’s the way they demand attention
in an era of quick glances and endless scrolling.
While top game developers on the inmobi network have seen upto 25% click
through and 10% conversion, this ad format is also seen to work very well for a
wide range of content. On our network, we noticed average conversions as high as
8% for comics and 5.6% for health & fitness apps.

11. APP INSIGHT REPORT Chart 4: Average Conversion Rates Across Ad Formats by OS, Q2 2013
Average Conversion Rates on iOS
Average Conversion Rates on Android
1.40%
1.65%
1.73%
1.99%
1.12%
0.63%
3.06%
1.58%
Banner Ads Expandables Interstitials Text Ads
On Android, the average conversions on
interstitial ads are almost double that of
other ad formats
Quick Tip: For apps with short app sessions, static
interstitials get the point across immediately
and are found to be the most effective in
driving engagement. On the other hand, for
more engaging apps with longer app sessions,
video interstitials deliver higher eCPMs. Static
interstitials typically are observed to provide
CTRs as high as 20% while video-interstitials are
found to deliver superior ad engagement.
09

12. APP INSIGHT REPORT Well, interstitials are the in thing - no denying that. But does that warrant doing
away with good old banner ads?
On InMobi’s network, we notice banners continue to work well for a wide range of
non-gaming content on both iOS and Android.
1b. Don’t do away with banners, just yet!

Software Software
Weather Business
Travel & Local Education
Shopping Medical
Medical Finance
Tools Communication
Business Catalogs
Lifestyle Health & Fitness
Productivity Tools
Finance Weather
News & Magazines Travel & Local
2.8%
2.5%
2.2%
2.2%
2.2%
2.0%
2.0%
1.9%
1.6%
1.5%1.7%
1.7%
1.8%
1.8%
2.3%
2.4%
1.8%
2.3%
2.4%
2.6%
3.3% 3.5%
Quick Tip: For any app promotion campaign, we recommend using a good mix of HD banners
and interstitials to ensure you reach audiences on a wide variety of handsets. Also, rotating ad
formats can reduce ad fatigue and help drive higher ad engagement.
Chart 5: Conversion Rates On Banners Across Non Gaming Apps–By OS, Q2-2013

13. APP INSIGHT REPORT The mobile consumer today shunts his presence on different mobile sites. So where
do you find the right users for your app?
In this report, we specifically analysed conversions for games, social and
entertainment apps on iOS to understand which sites you should target to drive
maximum installs while promoting your app.
InMobi Insight: Almost all kinds of sites delivered good downloads on games -
suggesting that the audience for this category is diverse and widespread. Sports
and health & fitness sites delivered maximum downloads for social apps. On the
other hand, communication sites delivered the most downloads for entertainment
apps.
02
Bang on Target: Sites you should
target for maximum conversions
11

14. APP INSIGHT REPORT 215
325
206
306
197
213
192
141
157
118
155
101
150
146
137
Weather
Health & Fitness
Sports
Sports
Tools
News & Magazines
Travel & Local
Media & Video
Lifestyle
Finance
Shopping
Tools
Business
Productivity
Media & Video
Gaming Apps Site Category
Social Apps
Chart 6: iOS CVR Index Across Site Category By Content, Q2 2013
CVR Index
Site CategoryCVR Index
409
205
145
127
116
110
100
Communication
Education
Sports
Media & Video
Catalogues
Weather
Games
Entertainment Apps
Site CategoryCVR Index
Note: Index calculated with gaming category as a base.

15. APP INSIGHT REPORT “Over 1,146 unique app download campaigns ran across the InMobi network on
tablets, i.e., one out of every three app promotion campaigns on the network also
ran on tablets.”
03
Tips & Tricks to win on Tablets
13

16. APP INSIGHT REPORT Why Advertise on Tablets?
More Engaged Users
Garnering a significant amount of
timeshare due to higher user engagement,
tablets are the most preferred medium to
consume media
= 90 Mins
= 50 Mins
= 58 Mins
Exponentially Expanding
High Quality User base2011
2012
2013
28.3M
74.1M
126.2M
In tier 1 cities every user will own a tablet
by the end of 2013, generating 3x more
download revenue than smartphones
Tablet Owners
Higher Inclination To
Consume Ads
Users are at least 3x more open to
consuming ads on tablets compared to
smartphones
3x
CTR
Phones Tablets
Source: A Potrait of Today’s User Wave II, OPA, June 2012
Source: Pew Research, 2012
Source: The Adfonic AdSnap Tablets, Q1 2013
14

17. APP INSIGHT REPORT Tablets & connected devices accounted for 14.1% of total impressions on the
InMobi network in Q2 2013, with Apple remaining the top manufacturer in tablet
category with the largest share of impressions.
Apple still leads the pack, but Android
tablet usage is catching up
14.1%
21.0%
65.0%
Smartphones Tablets &
Connected Devices
Feature Phones
+0.2-0.9
Chart 7 : Device Share Of Impressions, Q2 2013
+ - Percentage point change since Q1 2013
Q2 2013
Q1 2013
Device Share of Impressions, Q2 2013
15
+0.7

18. APP INSIGHT REPORT Top Tablet Manufacturers, Q2 2013
53.9%
Apple
28.4%
Samsung
4.1%
Amazon
2.1%
Acer
1.2%
Asus
3.0%
Google
16

19. APP INSIGHT REPORT USA Thailand IndonesiaChina United
Kingdom
JapanFranceRussian
Federation
Saudi
Arabia
Malaysia
15.4%
7.7%
6.9%
4.3%
4.0%
3.2%
3.0%
2.9%2.9%2.8%
53.9%
10.2%
7.6%
3.6%
2.9%
2.1%
1.8%
1.6%1.2%
1.0%1.0%
iPad
Galaxy
Tab 2 7.0
Galaxy
Tab 2 10.1
Galaxy
Note 10.1 Nexus 7
Galaxy
Tab 10.1
Galaxy
Tab
Kindle Fire
HD 7
Kindle
Fire
Galaxy
Tab 7.0
Plus
Kindle
Fire 7
Chart 8: Top Countries in terms of Tablet Usage on InMobi Platform, Q2 2013
Chart 9: Top Tablet Devices By Impressions On Inmobi Platform, Q2 2013
17

20. APP INSIGHT REPORT Chart 10: Tablet CTR vs. Network CTR Across Ad Formats, Q2 2013
+/-(% increase/decrease)
Consumers are increasingly utilizing tablets for shopping, game play and
communication. The same optimized banner ad on a tablet app may perform
completely different from an ad on a smartphone app. Knowing your target
demographic on tablets or smartphones and what type of ads they engage with
the most is crucial to designing an effective app promotion strategy on tablets.
A quick comparison between tablet CTRs and average ad network CTRs reveal
that text ads don’t work well on tablets. However, interstitial ads deliver solid
results with almost 46% higher CTR for tablet campaigns.
Ads that work well on tablets
Tablet CTR vs. Network CTR
(% increase/decrease)
Text Ads
-37.0%
Interstitial
46.0%
Rich Media Ads
23.0%
Banner Ads
13.0%
18

21. APP INSIGHT REPORT Top 3 tips to make your tablet
campaigns work:
Leverage the real estate: Take the effort to optimize your ad size for
tablets. Tablet optimized ads tend to deliver 3x higher conversions and
ROI .InMobi recommends using the 728×90, 300×250 , and 468×60 slot
sizes for best results on your tablet campaign.01
Bid at the right price: Tablet users tend to have higher LTV, and are
on average, better spenders as well. This increases demand for tablet
advertising and most advertisers are already bidding more. InMobi
recommends that you bid about 1.5 – 2x more on tablets to hit the scale
that you want.02
Mix and match: High definition ad formats match perfectly with the high-
resolution display of tablets, creating a deeply engaging experience for
users. InMobi recommends rotating between HD banners, Interstitials
and video ads to reach your users in the most optimal way.03
19

22. APP INSIGHT REPORT Agreed it’s a competitive marketplace out there. You don’t know your user’s Lifetime
Value (LTV) and can’t decide how much to spend on acquiring users. But not all apps
are created equal. Depending on what kind of app you have built and the country
you target, the cost to drive a download ( CPD) could vary significantly.
04
Cut costs without cutting corners
20

23. APP INSIGHT REPORT 174 United Kingdom
127 Australia
100 USA
95 New Zealand
87 Malaysia
84 South Korea
84 Vietnam
81 Japan
77 Hong Kong
75 France
71 Singapore
60 China
56 Germany
40 India
Chart 11: CPD Index By Country, Q2 2013
Note: Index calculated using USA as base
Indexed against the costs in the US, our research indicates that driving a download
in most markets, especially in China, Japan and Korea is relatively cheaper in comparison to
the US market , with the UK representing the most expensive markets and India the least
Expensive.
21

24. APP INSIGHT REPORT Chart 12: CPD Index By Category, Q2 2013
Note: Index is calculated using Games as a base
4229 Travel
4114 Financial Services
2091 Telecom
1040 Automotive
580 Health & Fitness
152 Social
76 Sports
100 Games
112 Retail
122 Books & Reference
CPDs also vary drastically by the type of content you promote and depend
on the average lifetime value (LTV) of the app’s user. Higher the LTV, higher
the CPD tends to be. For example, a travel app developer is usually willing
to pay much more to acquire a user, compared to the average game
developer, since the expected revenues from a loyal user can be much
higher, at times upwards of $100 USD. This reflects in the average CPDs we
notice on our network, with travel and financial service apps topping the
charts on CPDs bid on the network.
139 Business & Productivity
262 Consumer Packaged
Goods
258 Mobile Content -
Wallpaper
22

25. APP INSIGHT REPORT And indeed, she did just that! According to IDC, in February 2013, China overtook
the US to become the world’s largest smart device market, with 246 million devices
(against the US 230 million) and accounted for 26.5% of all smartphone shipments
last year.Concurrent with the growth in smart devices, mobile applications are also
growing at an astronomical rate. In addition, the falling price of the iPhone and the
increasingly capable low to mid-range Android handsets now available have further
propelled this growth. As attractive as the market may be, China is no easy beast to
tame!
Cultural barriers, piracy concerns, fragmented app distribution ecosystems and
the need for localization have prevented most app developers from entering this
market. The common perception that Chinese app users were not willing to pay for
content and that app usage levels were not high enough to warrant investments in
heavy marketing, have kept most developers away from China.
05
Market Spotlight: Taming
the Chinese Dragon
“Let China sleep, for when she awakes, she will shake
the world.” Napoleon
23

26. APP INSIGHT REPORT For starters, there are several differences (and similarities, too) between the way
Chinese users behave in comparison to their counterparts. Here are the top 3
insights from our recent consumer research in China that can help you drive
downloads more effectively in this country.
1. Contextually recommended apps are the most
preferred by Chinese users.
Know Thy Users
Banner ads which
appear at the top of the
screen18% 24%
A full screen ad which
appears briefly, while
the app is loading20% 19%
A short video clip
17% 14%
Survey Question: When Searching For Mobile Apps To Download, Which Types Of Advertisements On Your Mobile Phone Would Be The Most Helpful?
Ads which recommend
specific apps for me,
based on website I am
browsing on my phone
39% 42%
Ads which include
multimedia content
such as games, audio &
pictures
24% 28%
Mobile Ads that Influence
app downloads
24

27. APP INSIGHT REPORT App Store reviews and rating
50% 59%
App featured by App Store
57% 60%
2. If you want your users to download your app,
get your app featured on the Chinese App Store!
Price
41% 33%
Description & screenshots
48% 43%
App is ranked high on App Store chart
40% 46%
Reviews from magazines and website
25% 32%
Survey Question: What Factors Have The Biggest Influence When You Decide Whether To Download A Specific App?
Factors that influence the
app download decision
25
37% 26%
Recommendation from family and friends

28. APP INSIGHT REPORT 3. App Stores, mobile websites and recommendations
from friends and family are the top 3 ways in which
Chinese users discover apps.
Browsing the App Store
55% 54%
Recommendation from friends & family
33% 23%
Advertisments on my mobile phones
13% 20%
Magazines & newspapers
10% 4%
App Discovery
5% 3%
Websites I access through laptop/desktop computer
23% 30%
Websites I access through my mobile phones
55% 44%
Recommendation from social media (facebook, twitter, etc.)
18% 12%
26
Survey Question: How do you usually find new apps to download to your phone?
None of these

29. APP INSIGHT REPORT Top 3 Tips to Win in the Chinese
App Market
Localize your app: While translating apps into simplified Chinese
is essential, localization should go beyond simple translation – it is
important to connect with users’ emotions and culture. Customizing
with Chinese avatars and timing app launches with Chinese festivals is
a good strategy.01
02
Go freemium to beat piracy: Paid apps are quickly pirated in China
with up to 42% of Chinese iOS devices being jail broken and 17% of apps
copied or pirated. Overcome piracy by using a freemium monetization
model and by making frequent updates to your app.
For more insights on China and how to win in
this complex market, download our whitepaper
“What it takes to win in the Chinese App Market”
here.
27
List your app on the right stores: With over 500 stores, China has
one of the most complex and fragmented Android app store ecosystems
in the world. Carefully select the right app stores to reach the right
audience.
The largest App Stores include Anzhi, AppChina, Gfan, Hiapk, Mobile
Market, Nduoa, Snappee, Tencent, Wandoujia, Baidu App Store, Opera
Mobile App Store, and Pandaapp.
03

30. APP INSIGHT REPORT Glossary of Terms
1. CTR (Click Through Rate) = (Clicks/Ad Request)*100
2. CVR (Conversion Rate) = Downloads/Clicks
3. CPD (Cost per Download) = Total Burn/Downloads
28

31. APP INSIGHT REPORT Glossary of Terms
1. CTR (Click Through Rate) = (Clicks/Ad Request)*100
2. CVR (Conversion Rate) = Downloads/Clicks
3. CPD (Cost per Download) = Total Burn/Downloads
InMobi enables the world’s leading brands, developers, and publishers to engage
global consumers through mobile advertising. InMobi platforms leverage advances
in big data, user behavior, and cloud-based architectures to simplify mobile
advertising for its customers. Recognized by MIT Technology Review as one of the
50 Disruptive Companies of 2013, InMobi is the world’s largest independent mobile
ad network, engaging 691 million consumers across 165 countries.
To learn more, visit www.inmobi.com, follow us on Twitter @InMobi, or discover the
latest mobile insights at www.inmobi.com/insights/. Developers, start monetizing
instantaneously by downloading our SDK at www.inmobi.com/SDK.
About InMobi
OFFICE WITH CREATIVE TEAM
INMOBI OFFICE
29

32. APP INSIGHT REPORT Contact Us:
Arun Pattabhiraman
Global Marketing Lead - Performance Advertising & App Developers, InMobi
email: [email protected]
For further queries on research, please write to [email protected].