Setapp, an app subscription service, is getting ready to launch its own app store as a different choice. They’re planning to do this when new rules from the EU start next year. Setapp is relying on the EU’s Digital Markets Act (DMA), which is supposed to let people put other apps on iOS without needing to use Apple’s App Store.

Better revenue sharing for developers

Setup currently offers a subscription service where users pay $9.99 per month to access more than 240 apps for their Mac. These apps cover various categories like utilities, productivity tools, customisation, lifestyle, and more. They have different plans, including those with iOS apps ($12.49/mo), options for power users with more devices ($14.99/mo), family plans, and plans for teams.

For their upcoming standalone app store, Setapp has partnered with over 30 developers who are ready to offer their apps. Some of these partners include Ulysses, Taskheat, NotePlan, PDFSearch, and Soulver. The company is also inviting more developers to join in.

Setapp is trying to attract developers by offering them better revenue sharing compared to Apple. While developers get a 70/30 split when customers use their app, Setapp also shares an additional 20% with developers who bring in new customers. This means developers have the chance to earn up to 90% of Setapp’s user fees every month.

Top-rated apps on Setapp store

Source: Setapp

Oleksandr Kosovan, the founder and CEO of Setapp, mentioned that 60% of developers are interested in using third-party app stores for distributing their iOS apps. Setapp aims to support iOS-only developers and give them a platform to gain users and increase their revenue.

Customers who are interested can join a waitlist to receive updates about the launch of the new app store.

What’s Apple got to say about it?

According to a report in December 2022 by Bloomberg, Apple seemed to be getting ready to permit different app stores on iPhones and iPads to follow the DMA rules.

This is happening even though Apple has worries about the security problems linked to installing apps from sources other than the official App Store.

The process, known as “sideloading,” can impact the safety and privacy of users. However, the report pointed out that Apple was still talking about various ideas on how this new system would function. They might even ask for a fee to verify these apps before allowing them.

For now, Setapp is proceeding with the belief that Apple devices will eventually need to allow other app stores, and they are actively making preparations to introduce their own app store.

Key takeaways

• Setapp readies own app store, betting on EU law for alternative to Apple’s store
• Developers offered improved revenue share, up to 90% through Setapp’s model
• Apple’s approach to third-party app stores and security remains uncertain

The post Setapp preparing to launch independent app store as Apple rules change appeared first on Business of Apps.

Within just three weeks, Threads seems to have gone from formidable Twitter rival to just another social app. Similarweb, the data aggregation and software firm, recorded a drastic decline of nearly 80 percent in daily user numbers, indicating a significant setback for the app. Could this spill the end for Threads?

Capturing attention

Similarweb data recorded a drop in daily active users on Android mobile devices, plummeting from 49 million to 11 million. But this analysis didn’t encompass user figures for Apple’s iOS mobile platform.

The count of global users on Android devices surged from 6 million on July 5, the day of Meta’s app launch, to 41 million the next day. It then reached a peak of nearly 50 million on July 7, equivalent to around 45 percent of Twitter’s usage on that particular day.

Threads vs Twitter change in usage

Source: Similarweb

Threads previously managed to capture more attention than its Twitter rivals such as Mastodon and Bluesky, but the steep decline in user engagement underscores the difficulties in attracting and retaining users in a highly competitive social media landscape.

Quick to rise, quick to fall

Threads quickly amassed 100 million users within just five days, a milestone that took Twitter 5.4 years to accomplish. A crucial factor in this achievement was Instagram, also a Meta-owned entity, which leveraged its existing audience of 1.4 billion to facilitate the recruitment of users for Threads.

However, it’s worth noting that Threads currently lacks a number of fundamental features and still needs to provide a compelling incentive for users to transition from Twitter or adopt Threads as their preferred social media platform.

App engagement on Threads

Source: Similarweb

Consequently, usage of the app has steadily dwindled since its launch, with daily active users on Android devices remaining at around 11 to 12 million over the last seven days.

Interestingly, the launch of Threads has not significantly impacted Twitter’s usage on the same platform. Following Elon Musk’s rebranding, Twitter, now known as X Corp, recorded a daily active user count ranging from 107 to 109 million on Android devices during the week after Meta introduced its text-based rival. In the subsequent week, this count oscillated between 108 and 114 million.

Key takeaways

• Threads saw an 80% drop in daily users within weeks, indicating challenges in social media competition
• Instagram’s support boosted Threads to 100M users quickly, a feat Twitter took years to achieve
• Despite initial attention, Threads faces decline and needs compelling features to rival Twitter’s dominance

The post Threads vs Twitter: from rival to retreat in 3 weeks appeared first on Business of Apps.

Mobile wallets and payment apps are all the rage, especially since the pandemic forced many into going cashless. But one mobile payment app stands out as being the favourite among customers – whether shopping online or in-store. Let’s find out more.

The top payment apps are…

A growing number of Americans are now using mobile wallets for their shopping transactions, according to recent insights from CivicScience. Approximately 35% of participants utilise at least one e-wallet or mobile payment app with varying frequency for in-store purchases, while 44% report the same usage pattern for online transactions. So which app comes out on top?

PayPal stands out as the top choice among users of payment apps. Irrespective of whether transactions occur in physical stores or the digital realm, consumers prefer to use PayPal over Apple Pay, Venmo, and Google Wallet.

Notably, Apple Pay claims the second spot in the race, outperforming Google Wallet, and gains further traction for in-person transactions compared to online dealings.

Leading payment apps

Source: Civic Science

When it comes to in-store transactions, PayPal usage lags by seven percentage points, whereas Apple Pay gains a two-point advantage over its online counterpart. Despite its expanding influence, PayPal’s adoption as a recognised payment method in physical stores remains limited, thus underscoring the role of e-wallets in this context.

Security and convenience still major barriers

Just 14% of consumers frequently use mobile payment solutions. In contrast,  24% hold a steadfast aversion towards using them. The majority of Americans, however, fall somewhere in between – they either use mobile payments infrequently or are open to the idea but haven’t fully embraced it yet.

The reasons behind this cautious embrace of mobile payments are twofold. Firstly, those who use mobile payments sporadically or are hesitant about them commonly express concerns about the security of these apps. Interestingly, this worry about security is a top concern across generations, with those aged 55 years and above registering the highest degree of concern at 48%.

Main reasons for not using mobile payment apps

Source: Civic Science

The second major barrier is convenience. Many consumers believe that mobile wallets and payment apps don’t offer any greater convenience compared to traditional payment methods. To sway non-users, it’s crucial to demonstrate how e-wallets and mobile payment apps can genuinely offer more convenience than their current ways of paying for goods and services. This could potentially encourage a much larger group of people to give mobile payments a chance.

Who’s using payment apps and why?

The younger demographic, those under the age of 35, are the driving force behind the general population’s use of mobile payment apps. A notable 10% of Gen Z adults claim mobile payment apps as their primary choice, in contrast to a mere 1% among those aged 55 and above.

Those who prioritise mobile payment apps are also keen on exploring alternative financial tools. For instance, 16% of these mobile pay enthusiasts express their intention to give ‘buy now, pay later’ apps a shot in the near future, and an impressive 38% have already embraced this option.

Furthermore, individuals who hinge on mobile payment apps for their primary transactions hold a rosier perspective regarding their personal finances. They are more inclined to express optimism about their financial prospects, stating that their financial situation is likely to improve in the times ahead.

Nevertheless, mobile payment apps and e-wallets have yet to emerge as dominant forms of payment within the consumer landscape. Although Apple Pay setups and Venmo usage are commonplace, a mere 5% acknowledge mobile payments as their foremost payment method. While younger generations exhibit greater openness to alternative payment methods, there still exist entrenched perceptions that must be overcome before mobile payments can achieve more widespread acceptance.

Key takeaways

•  35% use e-wallets for in-store, 44% for online purchases, signalling increasing digital payment adoption
• PayPal is preferred over Apple Pay and Google Wallet, with Apple Pay excelling for in-person transactions
• Just 14% use mobile payments often; 24% resist. Security and convenience concerns impact broader adoption

The post 35% of consumers embrace cashless transactions through payment apps and mobile wallets appeared first on Business of Apps.

The average eCPM dropped 26% on Android and 12% on iOS between H2 2022 and H1 2023. That’s according to the latest report from app and software firm Tenjin. Let’s dive in.

Changes ahead

While some might interpret the declining eCPMs as a sign of an impending transformation in how digital content is monetised, it’s crucial to recognise that ad monetisation remains a resilient and integral facet of the digital landscape.

The key to navigating this new landscape then lies in striking a harmonious equilibrium between various monetisation models.

Drop in eCPMs between H2 2022 and H1 2023 by platform

Source: Tenjin

The report also highlights a significant boost in in-app purchases with Android seeing a 23% increase and iOS in-app purchases up 24%.

“The remarkable growth in the number of in-app purchases is a testament to that. Game developers have embraced hybrid monetisation and successfully implemented it,” said Roman Garbar, Marketing Director at Tenjin.

Regional differences

There’s been little shift in the top 5 countries based on total app installs on Android between 2022 and 2023. However, on iOS the UK has now overtaken China, Japan, Canada and Germany.

The changes in the iOS landscape are causing app developers and advertisers to rethink their strategies. The UK’s growing importance as a user hub and potential revenue source means advertisers might want to customise their campaigns to match the preferences of UK users. Adjusting app monetisation tactics could also attract this expanding user base, leading to more in-app purchases and subscriptions.

Top 5 countries by app installs (iOS)

Source: Tenjin

This shift also highlights the importance of understanding local preferences for app monetisation and advertising. As the UK becomes more influential, other regions could follow suit with their app engagement. Developers and advertisers should stay flexible and adaptable, considering the changing user behaviours across different platforms and regions.

Key takeaways

• eCPMs decline on Android and iOS in 2023, challenging ad strategies and monetization models
• In-app purchases surge, driven by hybrid monetization and adaptable game developers
• UK’s iOS ascendancy sparks tailored strategies, highlighting regional importance and need for flexible adaptations

The post In-app purchases increase 24% in H1 2023 appeared first on Business of Apps.

China’s Ministry of Industry and Information Technology (MIIT) has revealed its latest move to exert control over the market, as it announced that all mobile app developers must soon register their businesses with the government. This directive marks Beijing’s continued efforts to regulate the sector.

Penalties for apps that don’t comply

In a recent announcement made late on Tuesday, MIIT outlined that mobile apps lacking the necessary documentation will face penalties following the conclusion of a grace period. This grace period is set to conclude by March of the upcoming year.

The ministry stipulated that entities involved in internet information services via apps across various domains such as news, publishing, education, film and television, as well as religion, are also required to furnish pertinent documentation.

Let’s delve further into the dynamic of these upcoming changes. The mandate could cast a shadow over the accessibility of widely recognised social networking behemoths – think X, Facebook, and Instagram. Though locked away from the grasp of China’s populace within their borders, these apps remain within arm’s reach for Chinese citizens navigating foreign terrain.

What are app developers to do?

In order to navigate this new terrain, app developers are staring at a fork in the road: they must either plant their flag within China’s realm or strike a harmonious partnership with a local conductor.

2020 unfurled with an exodus of tens of thousands of unlicensed mobile apps and games from various app emporiums in China. Mind you, this is no novice concept – games must obtain a license to be released in the country.

More recently, over 100 AI apps were removed from the Chinese App Store.

At the same time, China granted new game app licenses to 88 titles.

Bear in mind, the numerical crescendo of China’s gaming domain reached an astronomical $45.5 billion just last year, and could reach $57 billion by 2027. Still, the latest policy shift could limit the number of apps available and have a significant impact on small developers.

Key takeaways

• China’s MIIT mandates mobile app developers register, extending control over the digital landscape
• Non-compliant apps face penalties as MIIT outlines a post-grace period crackdown on lacking documentation
• MIIT mandates documentation for app services in domains like news and education

The post China imposes business registration on app developers appeared first on Business of Apps.

Plenty of mobile app gamers have a desire to be involved in game development, but it’s not all fun and games. The latest data from Sauce Labs, an automated testing platform, finds that nearly half have experienced online threats or bullying due to their involvement in a mobile game app. Let’s dive in.

Feedback loop improvements

Sauce Labs’ 2023 Gaming Experience Survey Report focuses on the mental well-being of game developers. Surveying 150 full-time and part-time developers along with 500 gamers in the US, the report examines how new releases, feedback, and feedback loops impact their experiences.

It underscores the significance of an “open channel of communication” between developers and players. And this is becoming ever more important with a growing number of gamers skewing toward playing on mobile devices.

Majority of gamers now play on mobile devices

Source: Sauce Labs

A substantial 71% of developers prioritise feedback on performance, playability, and game mechanics.

However, 55% of developers find the current feedback lacking in detail, impeding the effective implementation of player-desired changes. A significant cause is the scarcity of manual reports from users, as highlighted by 45% of developers.

Even during beta testing, which aims to gather user opinions, 44% of developers encounter challenges in getting post-testing feedback. Furthermore, locating experienced testers presents an additional hurdle.

Negative feedback affects app developers

Source: Sauce Labs

Mounting pressures

Amid the rising clamour of gamers expressing dissatisfaction with incomplete and glitch-ridden games online, developers find themselves under mounting pressure, taking a toll on their mental well-being.

An alarming 48% of developers have experienced threats or bullying linked to their game development work, leading to stress, depression, and even adverse effects on physical health.

As technology advances, expectations for games soar, yet development timelines often lag. 61% of developers admitted releasing games under pressure, despite awareness of their unfinished state.

Developers want more actionable context

Source: Sauce Labs

Another 79% highlighted increased pressure to release incomplete games in the last five years, compounding the issue.

Sauce Labs’ report underscores the need for change at a higher level, as developers bear the brunt of backlash with limited decision-making power.

Key takeaways

• Sauce Labs’ data reveals 48% of developers threatened, impacting mental health and well-being
• 55% of devs find current feedback lacking, hindering player-desired changes due to manual report scarcity
• 61% of developers release unfinished games, 79% feel mounting pressure for incomplete releases, demanding change

The post 48% of mobile game developers felt bullied and 61% released games under pressure appeared first on Business of Apps.

In 2023, consumers are spending far more time using their mobile phones and apps, amassing over 2.5 trillion hours on Android phones in H1. This marks a 4% rise from H2 2022 and a 16% increase year-over-year, according to new data from app experts data.ai. At this rate, consumers are projected to surpass 5 trillion hours on Android phones throughout 2023.

Breakout apps in H1 2023

With mobile app growth soaring on Apple and Google’s platforms, it’s no surprise given a third of consumers dedicate their waking hours to mobile usage. The latest tech trends, including AI and GPT algorithms, are flourishing in this domain.

In the US, Ask AI and Character AI have made a splash, securing spots among the top 5 breakout apps. Meanwhile, in Canada, apps utilising AI and GPT algorithms, such as Microsoft’s Edge and Bing, claimed the sixth to tenth positions.

The global adoption of Chinese apps, like TikTok and CapCut from ByteDance and Temu from PDD Holding, has been astounding.

Not to be left behind, the UK witnessed a surge in the popularity of the government services app GOV.UK ID Check, ranking as the fifth breakout app by download growth.

In Europe, BeReal gained considerable traction, featuring among the top five apps by YoY download growth in H1 2023 across France, Germany, and Italy.

Dating apps secure top spots for consumer spending

Dating giants Tinder and Bumble took centre stage as the top breakout apps in H1 2023, ranking 2nd and 4th in consumer spending growth.

Not to be outdone, LinkedIn made an impressive leap of 12 spots globally, securing its position among the top 10 apps by consumer spend in H1 2023 compared to the previous year. LinkedIn’s allure extended across borders, as it emerged as a top breakout app in the US, the UK, Italy, and Saudi Arabia.

Breakout apps for consumer spending

Source: data.ai

The video streaming market continues to expand with Disney+ and Paramount+ blazing into the UK’s top 10 apps by consumer spending growth, landing at 6th and 9th place, respectively. The appetite for streaming content remains insatiable, driving these platforms to greater heights in the mobile app landscape.

Key markets in Asia and South America

When examining the leading markets, India takes the lead with 26% growth in time spent on Android phones from H1 2021.

China, Indonesia, Mexico, and Thailand also showed double-digit growth with +13%, +16%, +14%, and +18% respectively.

In the United States, mobile usage increased by 1% over the past two years, a slight decline from H1 2022.

Consumer spending by country

Source: data.ai

The UK stood out as one of the top markets to bounce back following a global decline in consumer spending in H1 2022.

Notably, South Korea experienced a significant rebound with +10%, while Brazil and Mexico roared back with remarkable growth rates of +44% and +43% respectively in early 2023.

Key takeaways

• Mobile app usage skyrockets in 2023, with 2.5 trillion hours on Android phones in H1, driven by tech trends and AI
• Breakout apps like TikTok, GOV.UK ID Check, and BeReal gain global popularity, while dating apps lead consumer spending
• Key markets in Asia and South America see significant growth, while the UK and US maintain steady app engagement

The post Users spent 2.5 trillion hours on Android apps in H1 2023 appeared first on Business of Apps.

If you’ve been wondering how exactly you could retain more of your app users, Duolingo may be a good one to turn to. The language app uses a unique approach to retaining app users through its ‘streak’ feature, which motivates users to maintain a consistent daily app usage. And the results of this approach are truly impressive with Duolingo achieving a record 17 million daily active users (DAUs) in June 2023. Let’s dive in.

Copy cats

Duolingo’s success in boosting DAUs is even more noteworthy given that education apps, overall, have seen downloads decline.

Education app installs fall

Source: Sensor Tower

Based on data from Sensor Tower, there has been a noteworthy rise in the adoption of the ‘streak’ feature among education apps. For instance, two prominent apps, Busuu and Drops, recently integrated this feature into their platforms and witnessed a substantial upswing in total sessions.

Following the implementation of the ‘streak’ feature, Busuu experienced a 15 percent surge in total sessions within just one month. It shows just how powerful such motivational elements can be and the significant impact they can have on user engagement and overall app usage, contributing to the success of these apps in the competitive education market.

The benefits of adding a ‘streak’ feature

An analysis of language learning apps reveals that those that incorporate the ‘streak’ feature exhibit outstanding levels of user engagement. Duolingo, in particular, stands out as a prominent example of this phenomenon. Users are highly motivated to maintain their daily streaks, which translates to increased time spent on the app and more frequent weekly sessions.

Whether there’s a broader application to the ‘streak’ feature remains to be determined.

Higher user engagement with streak feature

Source: Sensor Tower

However, the potential benefits it offers are substantial and worth considering for app developers aiming to boost user engagement, decrease churn, and maintain a high DAU count.

To leverage the potential benefits of the ‘streak’ feature effectively, it’s essential to design it thoughtfully, ensuring it aligns with your app’s purpose and offers genuine value to users. When executed well, incorporating this feature can be a promising strategy to enhance user loyalty and elevate your app’s performance in the competitive landscape of mobile applications.

Key takeaways

• Duolingo’s ‘streak’ feature effectively retains users by encouraging consistent daily app usage
• Data shows a rise in ‘streak’ feature adoption in education apps, boosting engagement and sessions
• The ‘streak’ feature enhances user engagement and retention, making it a valuable strategy for app developers

The post Duolingo’s ‘streak’ feature drives record 17 million DAUs appeared first on Business of Apps.

Domino’s Pizza just announced that app orders rose around 25% percentage points in H1 2023 versus the previous year. The latest financial results showed continued strong growth from H1 orders and market share gains. Here’s what’s happening.

46% rise in app users

In the wake of the pandemic, food delivery apps have changed the way people order and enjoy their favourite meals. On the back of its latest financial guidance, Domino’s Pizza has emerged as a shining example of this digital transformation, reporting a surge in app customers and orders.

The pizza giant announced a 46% increase in active app customers compared to H1 2022 and a commendable 16% rise from Q1 2023.

7.9 million active app customers are now using Domino’s mobile app to place their pizza orders. This growth reflects the company’s unwavering commitment to enhancing the customer experience through digital innovation and ease of use.

Domino’s Pizza app orders make up over 75% of all online orders

Source: Domino’s Pizza

App penetration in the food space has soared, with Domino’s app orders accounting for 75.2% of all online orders, an increase of 24.8 percentage points from Q2 2022.

More recently, the group announced a partnership with Uber Eats and Postmates that will allow for even greater penetration of its food delivery services.

Food delivery app resurgence

Domino’s has certainly benefitted from a bit of a revival of food delivery app installs in 2023 after they dipped in the previous years just as most countries relaxed pandemic rules and people returned to eating outside.

A comparison between the average installs in 2022 and those from January to April 2023 reveals a notable increase of 12%.

Data from app experts Adjust also shows that food delivery app installations skyrocket by 25% on Saturdays. This pattern mirrors the trend observed in 2022 when Saturday app installs were 26% higher than on Mondays.

Food delivery app installs on the up again

Source: Adjust

When it comes to the number of sessions, weekends also reign supreme, while Mondays lag behind. In 2023 Saturday sessions were 13.7% higher than the Monday averages for the same period.

Furthermore, during Q1 2023, Saturday sessions exceeded the overall average by an impressive 16%.

Key takeaways

• Domino’s app users surged by 46% in H1 2023, with 7.9 million active customers, accounting for 75.2% of online orders.
• Food delivery app installs revived with a 12% increase, Saturdays leading with 25% rise in installations.
• Domino’s partnership with Uber Eats and Postmates will enhance food delivery services and market share gains.

The post Domino’s Pizza reports 46% surge in app users appeared first on Business of Apps.

Apple has now responded to new regulations in China by taking measures against ChatGPT-style apps. An update by the South China Morning Post indicates that more than 100 apps providing similar services have been removed from the Chinese App Store in preparation for upcoming changes in the country’s rules.

Why is Apple removing ChatGPT-style apps?

This move is part of a crackdown intended to promote healthy content and ensure adherence to “core socialist values.”

Several apps in this category have been taken down by Apple. The reason stated in the notifications sent to the affected developers was that the apps included content that is considered illegal in China.

According to data from Chinese online data services provider Qimai, all of the apps in this category were removed from the China iOS App Store. Among them was Spark, an app developed by iFlyTek, which offered ChatGPT-type services and had garnered significant attention since its launch on June 29.

Additionally, ChatGAi Plus, a popular app that provided chatbot, AI translation, and writing services, was ranked 9th on the China iOS App Store’s paid app chart before being taken down on Tuesday afternoon, as recorded by Qimai.

In the wake of new regulations

The removal comes ahead of several new regulations in the China App Store, which were introduced collaboratively by seven Chinese regulators, including the Cyberspace Administration of China (CAC) and China’s Ministry of Industry and Information Technology (MIIT).

The rules are scheduled to be enforced on August 15 and apply to all generative AI content services, such as text, pictures, audio, and video.

To comply with these regulations, companies offering generative AI products to the public must prioritise promoting healthy content and refrain from generating false information or content that poses a threat to national security.

Apple regularly removes apps from the App Store worldwide when regulations and requirements change. In the case of China, such actions are more frequent compared to other markets.

While China has been granting new licenses, and the number of game approvals in 2023 is expected to surpass those of the previous two years, Apple has taken its own precautions in recent years due to Chinese game approval regulations.

Key takeaways

• Apple responds to China regulations by cracking down on ChatGPT apps, removing 100+ from the App Store.
• Crackdown ensures healthy content, and upholds socialist values
• Generative AI services are affected and regulations apply to text, audio, video

The post Apple cracks down on ChatGPT-like apps in China App Store  appeared first on Business of Apps.

MiHoYo, the Chinese gaming app developer behind Genshin Impact, has now reached $8 billion in user spending across its catalogue of mobile games. That’s according to data published by app experts AppMagic. But what’s been driving the company’s success?

The impact of Genshin Impact

Based on Appmagic data, Genshin Impact stands out as the primary contributor to MiHoYo’s $8 billion in user spending, accounting for 73% of the total.

It’s no surprise, considering the game’s continued popularity nearly three years after its launch, reaching an 11-month peak earlier this year. The sustained success of Genshin Impact has undoubtedly played a pivotal role in driving MiHoYo’s remarkable financial achievement.

miHoYo Games revenues and download tracker

Source: AppMagic

No one-hit wonder

Naturally, many industry experts and gamers have wondered if MiHoYo’s achievement with Genshin Impact was replicable or if it was a one-off phenomenon. Since its announcement as MiHoYo’s first new release after Genshin Impact in 2020, Honkai: Star Rail attracted some impressive attention among gamers.

The title surpassed expectations and reached 20 million downloads within just two days. As a result, the game’s consumer spending has flourished, even surpassing Genshin Impact’s revenue in May. Perhaps more impressively, the data shows that MiHoYo can create hugely successful and engaging gaming experiences beyond Genshin Impact.

Honkai Impact 3rd follows in second place with 18% of the total spending, while the newly released Honkai: Star Rail has quickly amassed 6% of the total consumer spending.

Regarding regional consumer spending, Asia takes the lead, with China accounting for 39% and Japan at 21%. The United States represents 15% of the consumer spending.

When it comes to spending per store, the App Store leads the way with 69% of the total spending, with Google Play trailing behind at 31%.

China has been a dominant force in the mobile gaming industry, particularly in June, with MiHoYo playing a significant role. The top three most lucrative mobile games in June all originated from China, showcasing the country’s remarkable influence in the mobile gaming landscape.

Key takeaways

• MiHoYo’s mobile game spending reached $8 billion in consumer spending, with Genshin Impact contributing 73%
• Honkai: Star Rail generated enough spending to account for 6% of the total consumer spending in just a few months
• Asian markets, particularly China, play a dominant role in driving consumer spending

The post MiHoYo reaches $8 billion in user spending across top mobile games appeared first on Business of Apps.

China has granted licenses to 88 new games in the month of July, with an overwhelming 86% of these gaming titles specifically designed for mobile apps. The approvals are touted as a pivotal moment because China’s mobile gaming industry has been grappling with substantial regulatory changes that sent ripples through the market in recent years. Notably, in 2021, the country imposed a prolonged hiatus on new game approvals, leading to a severe impact on its mobile games market. So what exactly is happening?

Leading players missing

China’s gaming landscape has been in the grasp of mobile gaming for a long time, making it a market that garners immense attention. As the birthplace of some of the globe’s major mobile developers such as Tencent, the country holds is an important indicator for the global gaming sphere.

The recent issuance of licenses to 88 new games in July is seen as a positive development and an indication that the market is gradually finding its footing. While notable names like Tencent and NetEase were missing from this particular list, the very act of reintroducing approvals demonstrates a willingness to revitalize the gaming sector and signals a potential easing of previous restrictions.

Among the fortunate studios that have secured licenses are notable names like 4399, Glacier Network, and Xishanju.

Mobile remains the leading platform in the country’s gaming domain. It is still considered one of the most profitable domains for releasing new gaming apps and the recent wave of approvals reflects this, with a staggering 97.7% of the newly granted licenses dedicated to mobile titles.

China mobile gaming market predictions

Source: Niko Partners

Turbulent waters

As part of its measures to address concerns over video gaming addiction among young gamers, China implemented strict restrictions on playtime. These restrictions, while aiming to curb potential negative effects, have posed additional challenges for some of the leading developers.

For instance, Tencent experienced a significant setback, losing its position as China’s largest company and even posting its first-ever quarterly financial loss.

Furthermore, the highly publicised breakdown of NetEase’s partnership with Blizzard added to the turbulence in the industry.

Following a downturn in October 2022 with a complete absence of granted licenses, experts believe that 2023 ushered in a bit of a turnaround for the country’s gaming sector.

Number of Chinese gamers on the rise

What’s more, according to the China Audio-video and Digital Publishing Association, the first half of 2023 saw an impressive surge in China’s gamer base, reaching a record 668 million individuals. That’s one in two people across the nation who engage in gaming.

But the increase in the gamer population hasn’t equalled rising revenues. Gaming revenues came in at 144.3 billion yuan ($20 billion), indicating a modest decline of 2.39% compared to the first half of 2022.

The revenue dip suggests that while the Chinese gaming market is on a path to recovery, the financial rebound has been relatively slow to materialise.

At the same time, the Chinese gaming market is showing promising signs of revival, as revenues for Q2 saw 22% growth compared to the previous quarter. This positive trend is expected to continue into the second half of the year.

Key takeaways

• China issued licenses to 88 games in July 2023, with 86% mobile titles, showing the continued prominence of mobile gaming
• China’s gamer base reached 668 million in H1 2023, signifying substantial engagement in gaming
• H1 2023 gaming revenue at 144.3 billion yuan ($20 billion), a 2.39% decline from H1 2022, indicating a slow recovery

The post China grants new licenses to mobile gaming apps appeared first on Business of Apps.

In a bid to maintain its most influential users amid growing competition from platforms like Instagram Threads and others, X, formerly Twitter, introduced an initiative to compensate creators by sharing a portion of the ad revenue generated from replies to their posts earlier this month. Now, the company has officially launched its Ads Revenue Sharing platform.

What’s X’s revenue sharing platform all about?

Elon Musk said that the first block payment, an impressive sum amounting to $5 million had now been paid out. Furthermore, Musk clarified that the revenue payout to content creators would be cumulative, stretching back to his initial promise made back in February.

With these promising strides towards empowering content creators, X aspires to foster a thriving community where talents can flourish and be duly rewarded for their contributions.

X announcement to launch Ads Revenue Sharing scheme

Today is the day: Ads Revenue Sharing is now live for eligible creators globally.

Set up payouts from within Monetization to get paid for posting.

We want X to be the best place on the internet to earn a living as a creator and this is our first step in rewarding you for your…

— X (@X) July 28, 2023

Source: X

Linda Yaccarino, the CEO of X, expressed her enthusiasm for the program, stating that it represents an “absolute game changer” for the platform’s creators. The revenue-sharing program is expected to provide new and exciting opportunities for content creators to monetize their efforts and contributions on the platform.

So how does ad revenue sharing work on X?

In order to participate in X’s Ads Revenue Sharing program, users must meet specific criteria. Firstly, they need to be subscribers to Blue or Verified Organizations. Additionally, they must have garnered a minimum of 15 million impressions on all of their posts over the past three months. Moreover, eligible users must possess a following of 500 or more individuals.

To access the Monetization feature within the X app, users can find it in the side menu on iOS and Android, and in the overflow menu on the web platform. Once deemed eligible, users can sign up and configure their payment settings in this section. By clicking on the “Join and setup payouts” button, qualified users will be redirected to Stripe, where they can establish an account to receive their earnings.

Elon Musk tweeted a chart showing the company’s monthly users reach in 2023

𝕏 monthly users reach new high in 2023 pic.twitter.com/trqLGBEvvA

— Elon Musk (@elonmusk) July 28, 2023

Source: X

Once a user accumulates at least $50 in revenue, they become eligible for regular payouts. This enables content creators to receive their rightful share of the ad revenue generated from their posts in a timely and consistent manner. X’s Ads Revenue Sharing program aims to incentivize and reward creators for their contributions while fostering a vibrant and engaging platform for its users.

According to X, the goal is to ensure a straightforward and accessible process for all eligible subscribers of X Blue and Verified Organizations. As long as these users meet the specified eligibility criteria and opt to join the program, they are entitled to a share in the revenue generated. By streamlining the process, X aims to make it as simple as possible for creators to participate and benefit from the Ads Revenue Sharing initiative.

Key takeaways

• X launches Ads Revenue Sharing, compensating eligible creators for ad revenue from replies
• Elon Musk confirms $5 million payout and cumulative revenue sharing promise
• X aims to empower content creators, making the process accessible and rewarding

The post X officially launches its Ads Revenue Sharing platform for content creators appeared first on Business of Apps.

Japanese users spent 13% more on apps in Q1 2023 compared to the previous year, according to a new report from analytics firm Adjust and mobile data analytics provider data.ai. Spending is expected to exceed a whopping $17.7 billion this year. So what’s driving the growth?

Mobile installs and sessions rise

Based on an analysis of 2,500+ apps and the complete dataset of all apps tracked by Adjust, the report finds that mobile installs rose 7% compared to the Q4 2022 average while sessions jumped 9% year-over-year.

In 2023, mobile gaming in Japan is experiencing a gradual yet consistent resurgence. Comparing the data from Q4 2022 to Q1 2023, there has been a noteworthy growth of 12% in app installs and a 6% increase in gaming sessions.

Furthermore, during Q1 2023, Japanese mobile gamers have shown a remarkable boost in their spending on gaming apps, with a substantial 13% rise compared to Q4 2022.

All verticals app install and session growth

Source: Adjust

Puzzle games, in particular, have gained immense popularity in Japan, capturing a significant portion of the gaming market. They account for an impressive 19% of all gaming sessions, indicating their strong appeal and widespread engagement among Japanese mobile gamers.

E-commerce apps were pretty resilient with deal discovery apps up 24% YoY in 2022 and another 11% in Q1 2023. Marketplace apps achieved an impressive 28% Day 1 retention rate in Q1 2023. Though e-commerce app installs dipped, sessions increased 5% YoY in 2022.

E-commerce app sessions by vertical 2022

Source: Adjust

“With one of the highest adoption rates in the world and continually increasing spend across verticals, the opportunity for mobile marketers and developers in the Japanese mobile app market is enormous,” said Naoki Sassa, General Manager of Japan, Adjust. “Fierce competition, coupled with a complex economic climate and continually changing user needs and expectations, makes it essential to be ruthlessly data-driven and strategic. Now is the time to scale by building a diversified channel mix and leveraging tools that enable insight into aggregated data.”

Toward a cashless society

Perhaps even more noticeable is a marked trend toward Japan as a cashless society with digital payment apps capturing an impressive 77% of the install share. These apps have seen a 7% increase in sessions when compared to Q4 2022.

Another notable trend is the explosive popularity of crypto apps, which saw significant growth in both app installs and sessions. This surge in interest has resulted in a captive audience, leading to a Day 1 retention rate of 28% in Q1 2023, showcasing the strong appeal of cryptocurrency-related services in the Japanese market.

Fintech app install growth percentages by vertical

Source: Adjust

The fintech sector, as a whole, experienced a substantial boost. Overall app sessions increased by 17% in Q1 2023 compared to Q4 2022, reflecting the growing importance of financial technology solutions in Japan.

Amidst these advancements, data privacy remains a top priority for Japanese mobile app users. The iOS App Tracking Transparency (ATT) opt-in rates in Japan are consistently below global averages across various verticals. Social apps have the highest opt-in rate among Japanese users at 37%, followed by gaming at 30% and e-commerce at 23%.

Key takeaways

• Japanese app spending rose 13% in Q1 2023, expected to exceed $17.7 billion this year
• Mobile gaming rose 12% in installs, but sessions dropped 6% in Q1 2023
• Digital payment apps hold 77% install share, sessions increased 7% in Q1 2023

The post Japanese app spending rose 13% in Q1 2023, sessions and installs increased appeared first on Business of Apps.

As a growing number of mobile app marketers have shifted focus from growth to customer loyalty, app install spending dropped a whopping 41% on Android subscription apps and 30% on iOS. That’s according to the 2023 State of App Marketing for Subscription Apps report from industry experts Liftoff and AppsFlyer. But are consumers actually spending less on apps?

Consumers are still happy spending

While user acquisition dropped significantly on both Android and iOS, media re-engagement budgets jumped 48% in 2023.

Although the mobile marketing industry witnessed a decline in 2023 (thus far), there was a notable surge in total consumer expenditure on subscription-based iOS and Android apps.

The spending on iOS apps increased by 35%, while Android apps experienced a 22% rise. Consumers responded to this trend by either subscribing to more services or accommodating the price increases of their existing subscriptions.

Android remarking conversions among subscription apps

Source: Liftoff

The upward trajectory in spending is anticipated to persist as subscription-based apps continue to gain popularity, particularly when accompanied by attractive discounts for extended commitments.

“Despite the economic downturn, app marketers should feel assured by our latest findings – which show a rise in consumer spend and revenue growth per user, especially where subscriptions are concerned”, said Scott Reyburn, Senior Content Marketing Manager at Liftoff.

Apple users are eager subscribers

This data reaffirms the prevailing notion that Apple users are more inclined towards subscription-based services.

Previous reports show that iOS users tend to spend more than Android users.

Moreover, the install-to-subscription conversion rates saw substantial growth, attributed to a significant emphasis on deep paywall optimisation. On Android, the conversion rates surged by 20%, while on iOS, they increased by 15%.

Nearly half of iOS users seeing the app tracking transparency (ATT) prompt in subscription apps agreed to be tracked, with utility apps obtaining the highest consent rate at 59%. This suggests that users are more likely to provide consent if they perceive a clear value proposition that enhances their overall user experience.

iOS ATT opt-in rate

Source: Liftoff

Non-gaming app subscribers

While around 30% of subscription apps belong to the gaming category, their revenue share from subscriptions is notably lower compared to non-gaming apps. Non-gaming apps, on the other hand, generate the majority of their revenue through subscriptions.

Distribution of subscription apps by category

Source: Liftoff

Multiple categories, including utility, health & fitness, and entertainment apps, utilise subscriptions as a prominent monetisation strategy.

Key takeaways

• App install spending dropped 41% on Android and 30% on iOS as marketers focused on customer loyalty
• Consumers continue to spend happily, with media re-engagement budgets rising by 48% in 2023
• Apple users are eager subscribers, with higher spending and better conversion rates for subscriptions compared to Android users

The post Despite slashed ad budgets, consumers are spending 35% more on iOS apps appeared first on Business of Apps.

India’s mobile gaming market is growing at a rapid pace with 4.32 billion game downloads in 2023, or 15.3% of the global total. That’s according to the latest report from app experts Apptica which finds that the country is now even surpassing leading players such as the US and Brazil. Let’s take a closer look.

A near 1% increase over 2022

The rise in game app downloads represents a notable 0.9% increase compared to the same period in 2022. In comparison, Brazil ranked second with 2.99 billion downloads (10.59%), followed closely by the US with 2.57 billion downloads (9.08%). The figures demonstrate India’s significant presence and influence in the mobile gaming industry, suggesting that its position in the market is likely to continue ascending.

Gaming app downloads in the top 15 countries

Source: Apptica

China, known for being the largest mobile-first gaming market globally, surprisingly ranked sixth in terms of total game downloads with 1.3 billion, representing 4.59% of the overall downloads.

But revenues leave much room for improvement

However, revenues in India remain low. The country didn’t even rank among the top 15 markets for revenue generation from gaming apps.

The US led at a revenue of $5.71 billion, claiming a market share of 26.61%, which is an increase from 22.61% in the same period of 2022. Japan followed closely with $4.17 billion in revenue (19.43%), and China secured the third position with $3.32 billion (15.05%).

Comparison of gaming app revenues

Source: Apptica

Google vs Apple

Google Play emerged as the dominant platform for game downloads, accounting for a significant 88.63% of the market, leaving the App Store with just 11.37%.

Top platforms

Source: Apptica

However, in terms of revenue, the App Store pulled ahead, claiming 56.26%, while Google Play accounted for 43.74%. This suggests that although Android and iOS platforms come close to each other in terms of revenue, iOS users spend significantly more on average than Android users.

Genre by genre

In H1 2023, most genres experienced declines in downloads compared to the same period in 2022. Casual games took the lead in terms of downloads with 4.15 billion, slightly lower than the 4.25 billion in the first six months of 2022. But its market share rose by 0.62%.

The second most popular genre during this period was Action, but it experienced a decrease in market share, dropping from 4.29 billion to 3.9 billion downloads, resulting in a reduction of 0.18%. Simulation games secured the third spot with 3.27 billion downloads.

Download share by gaming app subcategories

Source: Apptica

As for revenue, all genres faced year-on-year declines, marking an ongoing trend of normalisation in the market after the surge during the “Covid boom.”

In terms of highest-earning genres, the top three remained unchanged from H1 2022.

Subway Surfers had a strong showing as the most downloaded Android title with 116.5 million downloads and ranked seventh on the iOS charts. Eggy Party claimed the top spot on the iOS charts with 32.2 million downloads. On the revenue side, Coin Master led on Android with $228 million, while Honour of Kings dominated on iOS with a staggering $766 million.

Key takeaways

• India sees 4.32 billion in gaming app downloads (15.3% global) in H1 2023, outpacing US and Brazil, but low revenue ranking
• Google Play leads downloads (88.63%), App Store dominates revenue (56.26%) in H1 2023
• Casual games lead with 4.15 billion downloads, Action declines to 3.9 billion, all genres face revenue declines

The post Gaming app downloads in India soar taking 15% of global total, but revenues can’t catch up appeared first on Business of Apps.

Amid growing concerns about data privacy and security in the healthcare app sector, the Federal Trade Commission (FTC) and the US Department of Health and Human Services’ Office for Civil Rights (OCR) have taken a proactive step to address potential risks. In a joint letter, they have reached out to nearly 130 hospitals and health-app developers to caution them about the use of online tracking technologies.

The potential safety risks of health apps

One of the main issues with health apps raised by the FTC and OCR is the issue surrounding tracking technologies like Meta Pixel and Google Analytics, which have the capability to collect personally identifiable information from users as they interact with healthcare websites or mobile apps.

What’s worrisome is that users may not always be aware of this data collection, and in many cases, they may have limited or no means of avoiding it.

A study published in 2021 by the BMJ revealed serious privacy issues in over 20,000 health-related mobile apps (mHealth apps).

Of the estimated 99,366 medical and health apps on Google Play and Apple Store, researchers found that 88% of mHealth apps could access and potentially share personal data.

Data collection operations in mobile health (mHealth) apps files and code

Source: BMJ 

Data transmissions occurred on insecure channels, with top third parties responsible for most data collection operations, including tech giants like Google and Facebook.

Shockingly, 28% of mHealth apps had no privacy policy, and at least 25% of user data transmissions violated stated policies. Experts have long emphasised the need for greater regulation and accountability in the industry to protect user privacy.

Consistency of data collection disclosure in privacy policy with user data transmissions in apps traffic

Source: BMJ 

Raising awareness

The letter states:

‘’Impermissible disclosures of an individual’s personal health information to third parties may result in a wide range of harms to an individual or others. Such disclosures can reveal sensitive information including health conditions, diagnoses, medications, medical treatments, frequency of visits to health care professionals, where an individual seeks medical treatment, and more,‘’ the agencies wrote.

‘’In addition, impermissible disclosures of personal health information may result in identity theft, financial loss, discrimination, stigma, mental anguish, or other serious negative consequences to the reputation, health, or physical safety of the individual or to others,’’ they added.

The aim of the communication is to raise awareness among healthcare providers and app developers about the potential privacy implications of these tracking tools. By doing so, the FTC and OCR hope to encourage better data protection practices and ensure that users’ personal information is handled responsibly and transparently within the healthcare ecosystem.

After all, disclosure of such information could violate Health Insurance Portability and Accountability Act, as well as the FTC Act.

Key takeaways

• FTC and OCR caution health-app developers on privacy risks from online tracking technologies
• Privacy issues affect over 20,000 health-related mobile apps
• Data breaches in health apps could lead to identity theft and other serious negative consequences

The post FTC and OCR raise caution over privacy concerns in mobile health apps appeared first on Business of Apps.

Apple and Google may face changes in their app store regulations as the Australian Competition and Consumer Commission (ACCC) has proposed new rules that would enable app developers to charge for in-app purchases without sharing a portion of their revenue with the app store. So what’s happening?

Curbing anticompetitive behaviour

According to Gina Cass-Gottlieb, the Chair of ACCC, the measures are meant to stop anticompetitive behaviours on the app stores, as per The Guardian.

The proposed changes are expected to be part of the government’s response to the ACCC’s consultation from December last year. Within this consultation, the ACCC put forward a proposal for a compulsory code of conduct targeted at specific digital platforms, namely Google and Apple.

The primary objective of this code is to tackle issues concerning anti-competitive behaviours. These include self-preferencing, unfair business practices, and hindrances to interoperability and consumer freedom in choosing alternative services.

It’s a bit of a deja vu moment to 2020 when Apple and Google removed Fortnite from their app stores because the game maker attempted to bypass the mandatory in-app purchasing systems that allow the tech giants to claim up to a 30% share of sales.

Legal proceedings in that case aren’t expected until 2024 in Australia. And the government, meanwhile, is likely to move forward with implementing its new rules.

Changes are needed and coming

Australia is by no means the only country challenging the dominance of the app stores. In India, Google is encountering resistance to its revised commission structure, according to Reuters.

The tech giant’s policy of imposing a service fee ranging from 11% to 26% on in-app payments has been challenged in court by Disney. Google implemented this fee structure as a result of an antitrust directive, which compelled the company to permit third-party payments. However, critics argue that this new service fee arrangement is merely a continuation of the same issue.

There are minimal competitive restraints on the digital platform services provided by Apple and Google. As a result, mobile app developers have limited or no viable alternatives for distributing their apps. This lack of competition allows Apple and Google to impose fees and terms unilaterally. This means developers face a “take it or leave it” scenario when it comes to distributing their apps on these platforms.

Recently, a court in India ruled in favour of Disney, directing Google to lower its service fee to 4%. This applied specifically to Disney’s streaming service, Disney+ Hotstar. Despite the fee reduction, the court also emphasised that Google must ensure the continued availability of the Disney+ Hotstar app on the Play Store.

The legal decision showcases the growing scrutiny and pushback against the commission practices of major tech companies operating in India.

Key takeaways

• ACCC aims for fairer app store fees by proposing changes to empower developers
• India legally challenges Google’s commission structure, sparking resistance
• Antitrust measures tackle app store dominance and promote competition for developers

The post Australia to allow developers to take home greater cut from IAPs appeared first on Business of Apps.

Consumer spending in shopping apps increased 37% during the Q4 holiday period compared to Q3 2022, marking a 30% higher rise than the same period in 2021. That’s given hope to retail marketers seeking to explore the mobile space and in-app purchases.

In-app purchases are popular

According to the latest State of eCommerce App Marketing report from AppsFlyer, retail apps, in particular, experienced a boost in revenue during the peak shopping month of November 2022, generating an average of 10% more income compared to November 2021. This growth can be attributed to retailers’ efforts in enticing customers through early discounts and continuous holiday season incentives.

One key factor contributing to the success of mobile retail was the sustained popularity of in-app purchases throughout the entire holiday season. Retailers effectively attracted shoppers to their favourite shopping apps, encouraging return visits and repeat purchases. This positive trend played a significant role in driving the economic engine of mobile shopping.

Overall CPI trend by country and platform among eCommerce apps with a marketing budget (in USD)*

Source: AppsFlyer

As mobile technology continues to shape consumer behaviour, retailers have recognised the potential of in-app experiences to engage shoppers, leading to increased revenue and growth opportunities in the dynamic world of mobile retail.

“Shopping spend that increased 81% on Apple’s iOS and increased 61% on Google Android on Black Friday of last year compared to the daily average in November highlights how critical this period is for eCommerce apps,” said Sue Azari, Industry Lead for eCommerce, AppsFlyer. “Marketers looking to capitalize on the critical shopping days in November should start planning now. This includes organizing user acquisition campaigns in the months leading up to Black Friday to benefit from the more affordable costs during this timeframe, and using remarketing strategies to guide users to the app to keep them engaged until those peak sale days.”

Despite cut marketing budgets, marketers see positive signs during holiday season

The data also showed that in-app consumer spending soared 81% on Black Friday 2022 compared to November’s daily average, with Android showing a remarkable 61% increase.

Global eCommerce marketers invested $4.9 billion in-app user acquisition during 2022, witnessing a 25% downturn in spending during H2 2022 amid the economic slump.

Apple iOS apps outperformed Android with an 85% higher share of paying users, and November conversion rates on both platforms rose 15% above the monthly average.

Day 30 retention rates

Source: AppsFlyer

The cost of media in the eCommerce sector dropped significantly by 30% YoY in Q1 2023 compared to Q1 2022.

Customer acquisition costs, in CPIs, peaked in November 2022 but then fell by 30% in Q1 2023, with iOS seeing a 33% decrease and Android an 11% drop.

On iOS, marketing-driven non-organic installs increased by 19%, attributed to lower CPIs and enhanced measurement confidence in the post-iOS 14.5 app landscape.

Marketers are now prioritising remarketing as a vital and cost-effective strategy, consistently holding a share of over 40% monthly in the global marketing landscape.

“The impact of the downturn on ad spend as seen during the first quarter of 2023 has been significant with marketers cutting budgets, but the success of the 2022 holiday season, even amidst the prevailing financial slowdown worldwide, should instill greater confidence in marketers as they plan for the upcoming holiday season,” said Shani Rosenfelder, Director of Content Strategy & Market Insights, AppsFlyer. “Emotional marketing offers a greater resonance now more than ever, so marketers should stay attuned to the needs and sentiments of their audience to connect with them on a deeper level.”

Key takeaways

• Q4 holiday season saw 37% rise in in-app spending, showcasing strong interest in mobile shopping
• iOS apps outperform Android with 85% more paying users, making iOS a lucrative platform for eCommerce marketers
• Remarketing remains cost-effective, claiming over 40% share in global marketing, ensuring user engagement and increased sales

The post 37% increase in app spending during Q4 holiday season appeared first on Business of Apps.

If you’re still not entirely sure how to use short-form video to boost your app marketing success, Emplifi’s latest research “Unleashing the Power of Video: Key Trends Driving Social Media Engagement” offers some key pointers. Let’s dive right in.

Reels to the rescue

Based on an analysis of social media behaviours and ad trends in Q2 2023, the report found that Instagram Reels outperformed all other content types on social apps, generating 55% more interactions than single-image posts on the app and 29% more than standard video posts.

“Because the social media landscape is evolving and changing at such a rapid pace, it’s crucial marketers have access to insights that can help them earn the biggest bang for their marketing bucks. A key insight from this report is that despite an ongoing decline in engagement on Instagram last quarter, the platform still delivers the highest engagement rates for brands compared to Facebook and Twitter,” said Zarnaz Arlia, CMO at Emplifi. 

Both Reels and Instagram Carousels, known as multi-image posts, have emerged as the top-performing content for brands on the platform. During Q2, brands experienced significant success with these engaging formats, with Reels earning a median of 75 interactions per post and Carousels closely following with a median of 74 interactions per post.

Surprisingly, Instagram Reels account for only 11% of all Instagram ads. However, a whopping 87% of brands experimented with Reels placements at least once in Q2 2023, marking a notable 26% increase compared to the previous year. In fact, brands’ usage of Instagram Reels soared by an impressive 86% in Q2 2023 when compared to the same period in 2022, with 90% of brands posting at least one Reel.

Nevertheless, it’s crucial to acknowledge that Instagram Reels’ engagement has experienced a downward trend for the past five quarters, plummeting by 30% year-over-year in Q2 2023.

With intense competition for engagement on the platform and the recent deprioritisation of Reels by Meta, Instagram’s parent company, it becomes evident that brands must diversify their social content and embrace multiple channels for their video marketing endeavours.

Facebook…not so much

While Instagram Reels continue to gain immense popularity, the same cannot be said for Facebook Reels. Interestingly, Facebook Live Video takes the lead as the dominant video content on the platform, surpassing all other formats by a significant margin.

In fact, Facebook Live Video garners nearly four times the number of interactions compared to static video posts.

Facebook post type performance

Source: Emplifi

It’s important to note that Facebook Reels entered the scene two years after Instagram launched its highly successful video format. As a result, Facebook Reels are still finding their footing and haven’t garnered the same level of traction as their Instagram counterpart. However, as more brands begin cross-posting their Instagram Reel content to Facebook, there is a possibility of witnessing a shift in engagement on the platform.

The data reveals that in Q2 2022, only 31% of brands utilised Facebook Reels for ad placements. Remarkably, this figure surged to an impressive 82% during the same period in 2023, representing a staggering 166% increase in usage.

What about TikTok?

It’s the question that everyone’s asking: so what about TikTok versus Instagram Reels?

The growth of TikTok’s user base continues to skyrocket – TikTok saw a  five-fold increase in followers for the average brand during Q2 2023.

TikTok vs Instagram Reels

Source: Emplifi

Despite TikTok’s impressive ability to attract new users, Instagram Reels still outperforms TikTok content in terms of median reach, median interactions, and median video views. However, when it comes to median engagement rates, TikTok emerges as the winner when compared to Instagram Reels.

A graph depicting blue and black lines showcases the trends.

“It is high time for marketers to fully embrace the power of video in their marketing efforts, encompassing platforms like Instagram Reels, Facebook Live Video, TikTok content, and even GIFs on Twitter,” remarked Arlia. “The explosive growth of short-form video demands that brands leverage this trend to gain a significant competitive edge. As a leading customer engagement platform, we recognize that implementing a successful video strategy takes time. That’s why we devote considerable effort to creating these reports and sharing valuable data. Our aim is to assist marketers by equipping them with a headstart in developing social media strategies that yield measurable impact.”

Key takeaways

• Instagram Reels generate 55% more interactions than single-image posts and 29% more than standard video posts
• TikTok sees a five-fold increase in brand followers, but Instagram Reels surpass it in median reach and interactions
• Facebook Live Video earns nearly four times the interactions compared to static video posts

The post Instagram Reels outperforming other content types with 55% more interactions appeared first on Business of Apps.

The global mobile app market is set to reach a whopping 189 billion installs and generate $186 billion in revenues by 2027, according to the latest report from mobile experts Sensor Tower. Let’s check out the data.

Full steam ahead

There’s much reason to be optimistic with the latest data from Sensor Tower’s Mobile Market Forecast revealing a boost to mobile app installs and revenues over the next few years.

The forecast predicts an 8.4% compound annual growth rate in worldwide user spending. That signals a remarkable 50% increase in revenue compared to the previous year’s total of $124 billion.

The growth is driven by both the App Store and Play Store, but Apple’s marketplace is projected to have a significant edge here.

By 2027, the App Store will contribute $125 billion in user spending. In comparison, the Play Store is expected to account for slightly less than half of that amount, specifically $60 billion.

Consequently, Sensor Tower believes that now’s as good a time as any for developers and marketers to assess the potential of the iOS market and take it into careful consideration when making strategic decisions.

India is projected to be the leading country in terms of mobile app downloads and is expected to maintain its top position in 2027. Brazil, on the other hand, is projected to surpass the United States and grow more rapidly by 2027. Over time, the country could become a dominant player.

Brazil to displace the US as global number two

Source: Sensor Tower

Entertainment, video and photo revenues

There appears to be a noteworthy trend regarding the distribution of app revenue across different categories. Currently, mobile games contribute to 54% of the total app revenue.

Entertainment apps eating into gaming apps’ pie

Source: Sensor Tower

However, the report suggests that this dominance will diminish by 2027, with their share decreasing to 47%.

On the contrary, the Entertainment and Photo & Video categories are predicted to witness an increase in their market share.

This growth can be attributed to the rising number of users who are transitioning towards and allocating more funds to apps with engaging content such as TikTok and YouTube.

Key takeaways

• Global mobile app market to reach 189 billion installs and $186 billion in revenues by 2027
• App Store leads with $125 billion in user spending, while Play Store contributes $60 billion
• Mobile games decrease to 47%, entertainment and photo & video categories grow

The post Mobile game app revenue expected to decrease to 47% by 2027, while entertainment grows appeared first on Business of Apps.

Ever wondered about which apps get the most downloads on the App Store and Google Play? An analysis from AppFigures has taken a closer look at download estimates including expanded country coverage.

300 downloads a day

AppsFigures grouped apps by downloads and looked at all apps with more than 100 up to 10 million downloads in the last month.

The analysis revealed that approximately 47.7% of the apps examined received between 100 and 1,000 downloads globally within the last month.

Approximately 33.3% of the apps examined garnered between 1,000 and 10,000 downloads in the past 30 days across both the App Store and Google Play.

By combining the aforementioned findings, it becomes evident that a significant majority of apps and games, comprising approximately 80%, receive fewer than 10,000 downloads on a monthly basis. On average, this translates to around 300 downloads per day at the upper end of the spectrum.

It’s important to note that this figure pertains to 80% of apps that surpass the threshold of 100 downloads per month. Thus, it excludes a substantial portion of the App Store and an even smaller proportion of Google Play, underscoring the limited visibility and recognition achieved by the majority of apps within these platforms.

Less than 1% get more than a million downloads

The other substantial group consists of apps that receive downloads ranging from 10,000 to 100,000. This range marks a point where increased investment in paid advertisements, including Apple Search Ads, becomes more prevalent.

Within the examined apps, only a small fraction, accounting for approximately 3.8%, attained download figures between 100,000 and 1 million in the past 30 days.

It’s noteworthy that a larger number of apps in this category originate from Google Play compared to the App Store.

Moving further, when focusing on apps with download counts ranging from 1 million to 10 million, the percentage decreases significantly to just 0.5%. Notably, many well-known and widely-used apps such as Twitter, TikTok (App Store version), and Instagram (App Store version) belong to this particular group.

Lastly, the smallest group comprises a mere 21 apps in total with 10 million or more downloads. Among these, 20 apps are sourced from Google Play, while only one app represents the App Store. This group stands as the most exclusive in terms of download figures.

It’s worth mentioning that while this analysis emphasises the distribution of downloads, it differs from the Monthly Millionaire’s Club article, which focuses on revenue. Notably, Google Play tends to attract a higher volume of downloads overall, highlighting its popularity in this regard.

Key takeaway

• Majority of apps receive under 10,000 downloads monthly, averaging around 300 per day
• Only a small percentage of apps achieve between 100,000 and 1 million downloads
• A tiny fraction of apps (less than 1%) exceed 10 million downloads, mostly on Google Play

The post Discovering app download trends: from 100 to 10 million downloads in a month appeared first on Business of Apps.

India has decided to impose a substantial tax on online gaming companies including app makers. The decision, announced during the 50th meeting held in New Delhi, entails treating online gaming on par with gambling, including activities like horse racing and casinos.

What are the changes?

Under the new levy, online games will be subject to a tax of 28% of their total value. This move signifies a notable shift in how the Indian government views and regulates the online gaming industry, aligning it with the taxation principles applied to gambling activities.

By implementing this tax, the authorities aim to generate revenue from the booming online gaming sector and bring it under similar regulatory frameworks as traditional gambling forms.

What will the implications be for app makers?

The decision to impose a hefty tax on online gaming companies is expected to have a significant impact, particularly on the mobile gaming sector, which dominates the gaming landscape in India.

Games such as social casino and hypercasual games, known for their revenue-generating potential, have gained immense popularity. Notably, hypercasual game installations in India witnessed a 32% increase in 2022.

The tax isn’t the only recent measure taken by India against the gaming industry. Just last month, Rajeev Chandrasekhar, the Minister of State for Electronics and Information Technology, hinted at the possibility of banning three types of mobile games.

However, with regards to the new levy, the Goods and Services Tax (GST) Council has decided not to differentiate between “a game of skill and a game of chance,” adopting a simplified and less nuanced approach compared to aspects like loot boxes.

Industry leaders expressed their concerns regarding the tax decision. While some game makers agree that the government’s measures may be necessary for casinos, horse racing, and gambling, the higher tax rate has been called unjustified for the competitive gaming community, including the esports sector.

Rohit Agarwal, Founder and Director of Alpha Zegus, highlighted the skill-based nature of esports and the ongoing fight to separate it from other gaming labels.

It remains to be seen how India’s tax changes will affect the mobile industry but doubt has been cast on whether the country could reach a valuation of $8.6 billion by the end of 2027.

Key takeaways

• India imposes 28% tax on online gaming companies, treating gaming on par with gambling activities
• Mobile gaming sector, especially social casino and hypercasual games, to be heavily impacted
• Concerns raised over lack of distinction between skill-based and chance-based games in tax policy

The post India gambles on gaming taxes: imposes 28% tax on mobile games appeared first on Business of Apps.

Google has unveiled updates to its policy, aiming to provide new avenues for transactions involving blockchain-based digital content within apps and games available on Google Play. According to Joseph Mills, Google’s group product manager, this policy revision requires apps to maintain transparency with users regarding tokenised digital assets. Let’s dive in.

Blockchain transparency

Google noted that, as per the changes, developers are prohibited from promoting or glorifying potential earnings derived from playing or trading activities.

The policy changes reflect Google’s recognition of the growing significance of blockchain technology and its potential to transform the way digital content is transacted. By allowing transactions involving blockchain-based digital assets, Google is opening up avenues for innovation and engagement within the app and gaming ecosystem.

However, the company also emphasises the importance of transparency and responsible promotion, seeking to protect users from deceptive or misleading practices.

The move that developers must clearly declare if their app or game involves the sale or earning of such assets aligns more broadly with the company’s efforts to emphasise user protection by prohibiting developers from promoting or glamorising potential earnings derived from playing or trading activities.

What happens to apps that fail to comply?

Google Play enforced strict guidelines for apps that fail to comply with its Real-Money Gambling, Games, and Contests policy. Such apps, as well as those that do not meet eligibility criteria, are prohibited from accepting payment for chances to win prizes, including Non-Fungible Tokens (NFTs).

Joseph Mills, Google’s group product manager, clarified that this includes features like “loot boxes” where randomised blockchain-based items are obtained through purchases.

To ensure a smooth transition, Google is currently piloting the new policy with a select group of developers before implementing it widely on Google Play later this year.

The company anticipates that customers will begin to experience updated in-app and gaming experiences as early as the summer season. By imposing these regulations, Google aims to foster a more secure and transparent environment for users, aligning with its commitment to responsible app development and user protection.

Reddit said it had partnered with Google “to help update their policy, aimed at creating a level playing field that promotes user trust, and responsible usage of blockchain technology.”

Key takeaways

• Google’s policy updates prohibit promotion of potential earnings from playing or trading activities, emphasizing transparency
• Apps violating guidelines on Real-Money Gambling, Games, and Contests are prohibited from accepting prize payments
• Updated in-app and gaming experiences prioritise user trust and responsible blockchain usage

The post Google’s policy update brings blockchain transparency for apps and games on Play appeared first on Business of Apps.

It appears mobile is starting to bounce back after the initial economic downturn following the COVID pandemic and the war in Ukraine. Global in-app spending grew to a whopping $67.5 billion during the first half of 2023, according to the latest data from mobile experts data.ai.

Glimmers of hope

The global app market seems to have recovered somewhat following the challenges posed by the macroeconomic headwinds of 2022. The first half of 2023 saw a robust resurgence, with $67.5 billion in consumer spending and a staggering 76.8 billion app downloads worldwide, encompassing both iOS and Google Play platforms.

The findings from data.ai also suggest that consumer spending growth, which rebounded in the latter part of 2022, continued its upward trajectory in the first half of 2023.

App spending rises during H1 2023

Source: data.ai

In total, consumer spending increased by 5.3% compared to the previous year, with a 16% growth specifically in the app sector. However, spending in the gaming category has remained relatively stable year-over-year.

The resurgence of positive growth in the first half of the year offers a glimmer of hope, suggesting that the downturn in mobile consumer spending during 2022 may have been a momentary blip in the sustained expansion of the mobile app market.

Both app stores benefit…

The resurgence is notable across both Apple’s App Store and Google’s Play Store. iOS consumer spending increased by 5.8% year-over-year, while Google Play experienced a 4.3% growth.

Notably, iOS generated an impressive $43.5 billion in revenue, while Google Play grossed $24 billion in the first half of 2023. It is worth mentioning that iOS users consistently outspend their Google Play counterparts.

iOS accounts for nearly 65% of the total app store expenditure, and this figure rises even higher to 71% in non-gaming apps.

App spending by platform

Source: data.ai

TikTok remains a standout in terms of consumer spending outside of games with growth of 31% year-over-year.

Other subscription-based apps like Disney+, YouTube, and Duolingo have also achieved solid growth rates of 33%, 39%, and 48%, respectively. These apps continue to capture the attention and spending of consumers.

In the gaming sector, engagement and growth remain strong. Global consumer spending in gaming apps has reached $40.9 billion in the current year, marking an increase from $32.8 billion in H1 2019. Additionally, gaming app downloads reached 30.4 billion in H1 this year, up from 21.6 billion in H1 2019.

Notably, in May 2023 alone, global consumer spending on games exceeded $94 million, surpassing the previous high set in May 2020, three years prior.

But Google ranks top for downloads

In H1 2023, app downloads demonstrated consistent growth, reaching a total of 76.8 billion, marking a 3.2% year-over-year increase.

While Google Play remains the dominant platform for downloads, iOS experienced faster growth, with a remarkable 10% year-over-year increase and surpassing 18 billion installs.

App downloads in H1 2023

Source: data.ai

Among the top markets for Google Play downloads were India, Brazil, and Indonesia, while China, the United States, and Japan emerged as the leading countries in iOS downloads. Notably, Brazil, China, and the United States exhibited substantial growth compared to the second half of 2022 on the iOS platform.

Key takeaways

• Global in-app spending reached $67.5 billion in H1 2023, signalling recovery in the mobile app market
• TikTok surpassed $2.1 billion in consumer spending in H1 2023 – a 24% YoY increase
• Gaming apps saw significant growth, with $40.9 billion in consumer spending and 30.4 billion app downloads in H1 2023

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Instagram’s text-based app Threads reached an impressive milestone of 100 million signups within just five days of its launch on June 6. That’s according to the Quiver Quantitative tracker data.

Threads, Threads, Threads

As of July 11th, Threads users were up to 105 million. The milestone was also confirmed by Instagram’s very own Adam Mosseri, who wrote:

“100 million people signed up for Threads in five days. I’m not sure I can wrap my mind around that fact. It’s insane; I can’t make sense of it.

The team has been busting their ass, but we know this is a race to the starting line. They say “make it work, make it great, make it grow.” Well, we certainly did things out of order, but I promise we will make this thing great.”

The app’s impressive climb was well-documented by Meta’s Mark Zuckerberg, who noted that the app garnered 2 million signups in two hours, 5 million in four hours, and surpassed 10 million registered users within seven hours.

By the next morning, over 30 million people had signed up, despite the app not yet being available in the EU due to privacy concerns.

Threads achieves over 100 million app sign-ups in first week

Source: Quiver Quant

In terms of user acquisition speed, Threads even outpaced OpenAI’s ChatGPT bot, which achieved 10 million daily users in 40 days and 100 million monthly users in around two months. Of course, retaining all that users is a very different challenge and one many apps fail at.

But what actually is Threads?

Threads is essentially Meta’s very own Twitter spin-off. That said, many early adopters have already complained that the app feels nothing like Twitter.

Threads is missing some features such as support for ActivityPub, the protocol used for posts on decentralised networks. While Meta has indicated that they are working on integrating it, until this integration occurs, the app will not be fully part of the fediverse.

Some also feel that the app’s focus on self-congratulatory posts and the absence of a chronological timeline or topic search feature add to the perceived dullness. It seems Threads doesn’t offer a compelling or engaging experience that could keep users coming back for more.

Other limitations are a read-only web interface, the absence of features like post search, direct messages, hashtags, and a “Following” feed, and restrictions on nudity due to Instagram’s rules.

And yet, there’s little denying that Threads’ achievement of reaching 100 million users in a short time is undeniably impressive.

Key takeaways

• Threads app reaches 100 million signups in five days, surpassing OpenAI’s ChatGPT bot in user acquisition speed
• Critics highlight missing features and perceived dullness, including absence of chronological timeline and topic search
• Retention figures remain to be seen

The post Threads scores 100 million app signups in just five days of launch, but will it retain users? appeared first on Business of Apps.

Female gamers now account for 37% of total gamers in Asia. That’s according to the latest report from Asian game market analytics firm Niko Partners. Let’s take a closer look.

Gaming is for everyone

Female gamers comprise more than a third of gamers in Asia, making them a force to be reckoned with. According to the latest research from Niko Partners, female gamers are growing at a rapid rate of 11% per year. This growth outpaces that of new male gamers, indicating the tremendous potential this market holds.

Currently, mobile gaming dominates among female gamers in Asia. However, PC and console gaming have ample room for growth. This presents exciting opportunities for developers and publishers across all three platforms to tap into this thriving market segment. With the right strategies, the industry can cater to the diverse preferences of female gamers and unlock their full potential.

Top game genres among female gamers in Asia

Source: Niko Partners

The market for female gamers in Asia is also not just limited to casual gaming, as there’s a growing presence of female Gen Z gamers venturing into competitive games and esports genres. This shift presents an opportunity for monetisation and growth within the female gaming community.

Room for improvement in revenues

The report also finds that while female gamers contribute approximately 23.5% of total revenue in the Asian games market, there’s room for expansion in the coming years. As the female gamer market steadily approaches parity with their male counterparts, revenue generated by female gamers could more than double.

Esports, in particular, can play a pivotal role in driving engagement and financial investment among female gamers. Women who actively participate in esports through activities like live streaming, competing, or playing esports games demonstrate a higher propensity to spend money and time on gaming content.

Furthermore, the findings indicate that over half of gamers expressed dissatisfaction with the portrayal of women in games. There is a pressing need for a more diverse representation of female appearances in avatars and characters.

The gaming community as a whole must work towards addressing gender discrimination and combating negative online interactions to create a more inclusive environment for female gamers.

By embracing the evolving interests and needs of female gamers, the industry can tap into their significant potential and foster a more inclusive and diverse gaming landscape.

Key takeaways

• Female gamers in Asia comprise 37% of total gamers, growing at 11% annually, outpacing new male gamers
• Esports can drive monetization and growth among female gamers who are more likely to spend money and time on gaming content
• Over 50% of gamers are dissatisfied with how women are portrayed in games, calling for improved diversity and reduced gender discrimination

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Global app install ad spend, which refers to the expenditure made by mobile apps to attract new users and encourage them to install their apps, is estimated to reach $94.9 billion by 2025. That’s according to the latest report from mobile app experts AppsFlyer.

Market fluctuations

The projected rise indicates a significant 20% growth compared to the figures recorded in 2023.

But it’s important to note that ad spending in this sector is expected to experience notable fluctuations due to the current economic downturn and the subsequent anticipated recovery.

Changes in global app install ad spending

Source: AppsFlyer

Between 2021 and 2023, AppsFlyer projects a decline of 15% in ad spending. However, starting from 2023, the forecast predicts a substantial 20% surge in ad spending by 2025. These fluctuations reflect the dynamic nature of the market influenced by economic conditions and recovery trends.

Influential factors

The mobile app marketing landscape saw significant and unprecedented changes recently. Apple’s App Tracking Transparency (ATT) framework, introduced in April 2021, no doubt, had a profound impact on marketers’ ability to measure and optimise campaigns. This shift towards aggregate data instead of user-level data optimisation has prompted the emergence of alternative measurement solutions. However, the industry has yet to fully recover to pre-ATT levels.

Add to that the Covid-19 pandemic which drove rapid digital acceleration with lockdowns and social distancing measures. Mobile apps capitalised on this by running aggressive user acquisition campaigns, particularly in the gaming sector. However, contrary to expectations, digital usage eventually cooled down and returned to pre-pandemic levels.

App install ad spending by region

Source: AppsFlyer

Furthermore, the global economic downturn and rising inflation rates in 2022 affected mobile businesses. Consumer-facing B2C mobile apps reduced marketing budgets and even downsized staff. The war in Ukraine added another shock to the global economy, particularly impacting energy and food markets in Europe, causing supply constraints and price hikes.

These developments have brought about significant volatility.

AppsFlyer’s data for the first five months of 2023 compared to the same period in 2022 indicates a 20% decline. Considering the ongoing recession and the projections of financial analysts, a further 6% decrease in ad spending is forecast for this year.

Toward privacy

In addition to the projected economic recovery, advancements in privacy-enhancing technology and measurement solutions are playing a crucial role in impacting ad budgets. Many apps and media sources have also adapted to Apple’s SKAdNetwork and continue to invest in the platform due to the high quality of its user base, despite the data restrictions.

Looking ahead, the adoption of SKAdNetwork 4.0, along with subsequent releases and enhancements like SKAN 5.0, is expected to reach critical mass. These updates bring significant upgrades to measurement capabilities, further empowering marketers.

Another significant development on the horizon is Google’s planned release of Privacy Sandbox for Android in 2024, which is anticipated to be smoother than Apple’s privacy changes and is likely to provide marketers with substantial visibility into campaign performance for both user acquisition and remarketing.

Data clean rooms

Source: AppsFlyer

Among the notable privacy-enhancing technologies, data clean rooms stand out. These secure environments enable the processing and management of sensitive data in a privacy-compliant manner, ensuring its appropriate usage.

Marketers face pressure to meet the growing demand for smartphones, particularly in developing countries, where a 13% increase in smartphone usage is projected between 2022 and 2025. This demand requires marketers to demonstrate continuous growth and adapt to evolving market dynamics.

Key takeaways

• App install ad spend is projected to reach $94.9B by 2025, with fluctuations due to the economy and privacy changes.
• Privacy-enhancing technology and measurement solutions impact ad budgets
• Marketers face pressure to meet smartphone demand in developing countries

The post Global app install ad spending to increase 20% by 2025 appeared first on Business of Apps.

A whopping 38% of all games developed in Brazil between 2020 and 2021 were primarily designed for mobile devices. That’s according to data from Abragames’ 2022 Brazil Games Industry Report. What does this mean for Latin America and the mobile gaming industry at large?

Brazil emerges as a mobile gaming powerhouse

Brazil has quickly emerged as a leading force in the global gaming market, currently ranking as the tenth-largest market worldwide and the foremost market in Latin America. The immense popularity of mobile gaming has contributed to this growth, with a diverse range of developers and over 12,000 employees working across more than a thousand game-making companies.

Games developed for various device types

Source: Brazilgames

Notably, Wildlife Studios has been recognised as the country’s first unicorn achieving a valuation of $3 billion in 2020, further cementing Brazil’s status as a key player in the gaming industry.

All eyes on Brazil

This has attracted international investment such as Epic Games’ investment in Aquiris Game Studio. This move resulted in the acquisition and rebranding of the studio as Epic Games Brasil.

57% of the country’s 1,009 developers reported generating revenue from abroad, either through games or services provided to foreign partners, amplifying Brazil’s global reach.

Revenues from abroad

Source: Brazilgames

Among respondents, 55% identified the US as a major market, showcasing the nation’s enduring significance on the world stage. Following closely behind were Latin America (53%), Western Europe, and Canada, with each region capturing the attention of 49% of respondents. Curiously, China, renowned as the world’s largest mobile market, was recognised as a major market by only 23% of respondents, sparking intrigue and raising questions about its relative prominence in the industry.

A diverse sector

The report notes that Brazil stands out among LATAM countries, with revenue surpassing $2.3 billion in 2021, reflecting year-on-year growth of 5.1%. Some 75% of Brazilian consumers are dedicated gamers, frequently indulging in gaming experiences primarily on phones, tablets, and PCs.

What’s more, Brazil’s gaming industry is rather diverse with 30% of employees being women, and a majority of 62% holding essential positions in art design, programming, and project management.

Women in the industry

Source: Brazilgames

Emphasising inclusivity, 57% of Brazilian game studios actively cultivate diverse workforces, embracing individuals from diverse ethnic backgrounds, the queer community, people with disabilities, and those who are neurodiverse. This commitment to diversity contributes to the vibrant and inclusive nature of Brazil’s thriving games industry.

Key takeaways

• Brazil’s gaming industry witnesses a staggering 38% of games developed for mobile devices
• Brazil emerges as the leading gaming market in Latin America, with revenue exceeding $2.3 billion in 2021
• Brazil’s gaming industry embraces diversity, with women comprising 30% of employees and inclusive workforces in many game studios

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According to recent findings by analytics firm Adjust, the opt-in rates for Apple’s App Tracking Transparency (ATT) feature have grown significantly, reaching an impressive 37%. Among various gaming genres, hypercasual games topped the list with an opt-in rate of 44%.

Gaming apps have the highest opt-in

Apple’s ATT initiative aims to empower users by providing privacy controls and making it necessary for individuals to actively choose to allow data tracking through apps, instead of having to opt out.

Analysing the opt-in rates on Apple platforms, Adjust’s research reveals that gaming apps have the highest opt-in rate compared to other app categories.

Gaming apps have the highest opt-in rates

Source: Adjust

The second-highest opt-in rate belongs to the food and drink category, with 36%, while the lowest opt-in rate is observed in the education category, at just 7%. This lower rate in education apps can be attributed to stricter guidelines regarding the collection of data from younger users.

With hypercasuals leading the pack

Hypercasual games had the highest opt-in rate at 44%, followed closely by sports and racing games at 44% and 40% respectively.

Hybridcasual games were not far behind, with an opt-in rate of 39%.

Hypercasuals have the highest opt-in rates

Source: Adjust

On the other hand, family and education games had the lowest opt-in rates, standing at 2% and 4% respectively, primarily due to compliance requirements.

According to Adjust, the higher opt-in rate for hypercasual games can be attributed to the fact that their user base is more aware of the benefits of targeted advertising, particularly in finding their next gaming title.

To improve opt-in rates for ATT, Adjust suggests experimenting with cross-promotion. Interestingly, the opt-in rate for hypercasual game installations from cross-promotion jumps significantly to an impressive 59%.

Using ATT as part of your campaign

Incorporating ATT into your app marketing campaign can yield promising results, as indicated by the rising opt-in rates. As seen in the data hypercasual games have the potential to boost their ATT opt-in rates by offering tangible benefits to users, such as targeted advertising that helps them discover their next gaming experience.

ATT opt-in status

Source: Adjust

Focusing on demographics that prioritise security and have a deeper understanding of data collection purposes can contribute to higher opt-in rates.

To maximise the effectiveness of your campaign, it’s crucial to enhance the onboarding experience and optimise UX.

While investments in measurement and attribution tools like Apple’s SkAdNetwork have shown positive outcomes, obtaining consent for first-party data will consistently deliver more accurate attribution.

Key takeaways

• Gaming apps, including hypercasual games, saw impressive opt-in rates due to targeted advertising and user awareness, with rates as high as 44%
• Cross-promotion experiments can result in a significant surge in opt-in rates, reaching a remarkable 59% for hypercasual game installations
• Leveraging Apple’s ATT in your campaign enables precise attribution with first-party data, catering to security-conscious demographics and optimizing the onboarding experience

The post Hypercasual gaming apps reach ATT opt-in rates of 44% appeared first on Business of Apps.

Screen readers may be the latest malware to watch out for, according to testing from app shielding expert Promon. The company uncovered some pretty disturbing vulnerabilities among the top financial apps on the Google Play Store. Let’s take a look.

What are screen readers?

Screen readers are used to transform digital text into synthesised speech or braille output. That makes them essential tools for accessibility. And unsurprisingly, their main purpose is to aid visually impaired individuals in navigating and engaging with digital content.

However, the extensive access required by screen readers and other accessibility services poses a potential risk for misuse, as it grants wide-ranging access to the screen and its contents.

Malware that can access a user’s screen is also capable of stealing sensitive information, intercepting two-factor authentication, controlling the device and bypassing security features.

Screen readers as malicious actors

The Security Research team at Promon developed a simulated malicious screen reader capable of reading and extracting data from an application. They conducted tests on 100 apps and found that the screen reader program successfully read and exfiltrated data from 85 out of 92 apps (92.4%). Only seven apps (7.6%) demonstrated effective defence mechanisms against the screen reader’s attempts to access the data.

Android’s operating system contains numerous loopholes that malicious actors frequently exploit to infiltrate devices and acquire unauthorised access to sensitive information. This information encompasses confidential conversations, personal data, and financial transactions.

Through the exploitation of these vulnerabilities, malware can operate silently in the background, executing tasks and actions without the user’s knowledge. This includes the covert reading and interception of content displayed on users’ screens, even within financial apps responsible for handling delicate data like banking transactions, PINs, and account balances.

Majority of financial services apps not adequately protected against screen reader malware

Source: Promon

Malware with elevated permissions can also exfiltrate captured data through various channels, allowing analysis, extraction of personal details, and exploitation for financial gain or illegal activities.

Where do we go from here?

App Shielding technology can help mitigate the threat of malicious screen readers, but developers can also take immediate steps. They can implement code to detect screen readers and decide whether to display a warning, shut down the app, or continue normally. However, these solutions have drawbacks, such as warning messages being bypassed by malware. Developers can verify the application using accessibility features to avoid shutting down legitimate apps.

Furthermore, upcoming security features in Android 14 aim to prevent accessibility service abuse. Developers will be able to restrict non-accessibility tools from interacting with their app, ensuring that only declared tools can access certain views.

Although this is a positive development, it’s important to note that the rollout of Android 14 will take time, and OS features should always be complemented with strong defensive measures at the app level to safeguard end-users.

Key takeaways

• 92.4% of finance apps were susceptible to data extraction by malicious screen readers
• Malware leveraging screen reader capabilities can silently intercept sensitive information, posing risks to confidentiality and security
• Implementing app-level defenses, such as code to detect screen readers can help mitigate these threats while upcoming security features in Android 14 offer additional protection

The post Malicious screen readers can extract data from 92% of finance apps appeared first on Business of Apps.

The majority of the top 50 mobile app publishers achieved notable monetisation success through in-app purchases last year, and this trend is expected to persist. New research from data.ai reveals the top app publishers by consumer spending and the factors driving their success.

Mobile app usage in 2022

According to data.ai, mobile usage skyrocketed in 2022 reaching an average of 5 hours per day, with entertainment consuming a substantial 70% of that time.

Short-Form Video apps, spearheaded by TikTok, took centre stage, capturing a significant portion of consumers’ attention and expenditure. Recognising the need to maximise monetisation within their apps, the leading publishers of 2022 implemented hybrid strategies, combining one-time purchases with recurring subscriptions.

Last year, 42 out of the top 50 publishers achieved notable success in monetisation primarily through in-app purchases, and this trend is expected to persist. In contrast, a smaller group of 8 out of the top 50 publishers predominantly relied on a subscription model to monetise their suite of apps.

Top 50 publishers overall

Source: data.ai 

Top app publishers by consumer spending

Tencent secured the top spot for the sixth consecutive year, while ByteDance made a significant leap to claim the second position. TikTok’s immense popularity propelled both companies, with the app captivating consumer attention and driving record-breaking consumer expenditure. In 2022, TikTok generated a staggering $3.3 billion in consumer spending, doubling its revenue from the previous year.

Several publishers experienced growth as their apps continued to entertain consumers. Match Group, Disney, Bumble, and Kakao piccoma Corp all saw positive results. Despite an overall decline in gaming expenditure at the market level, certain publishers achieved noteworthy success.

Top 10 publishers EMEA

Source: data.ai 

TakeTwo Interactive, following its acquisition of Zynga in May 2022, climbed an impressive 49 places in the rankings. The accomplishment was largely driven by the triumph of Zynga’s popular titles such as Empires & Puzzles and Zynga Poker. Dream Games and Top Games also enjoyed double-digit jumps, with their games Royal Match and Evony garnering significant success, respectively.

Headquartered in the Asia Pacific region, more than half of the top 50 publishers (27) hailed from this area. However, the United States claimed the highest number of top publishers from a single country, with 17 entries, closely followed by China with 12.

Key takeaways

• In-app purchases dominate monetisation for top mobile app publishers, with 42 out of 50 achieving success
• Tencent and ByteDance lead as top app publishers, driven by TikTok’s popularity and record-breaking consumer spending
• The Asia Pacific region houses the majority of top publishers, while the US has the highest number per country

The post Tencent leads chart of top 50 app publishers by consumer spending appeared first on Business of Apps.

SuperScale, a revenue growth platform for mobile game developers and publishers, just secured $5.4 million in a Series A funding round. The financing was spearheaded by Venture to Future Fund, accompanied by investments from Across Private Investments and Zero One Hundred. The cash injection is quite the milestone for a company that last secured seed funding in 2020.

What SuperScale offers app developers

Founded in 2015, SuperScale launched a Software-as-a-Service analytics platform which equips game developers and publishers with the tools to identify lucrative revenue-boosting strategies. Moreover, SuperScale provides publishing and game management services, with the aim of boosting game earnings.

To date, the company has provided support to over 150 mobile games, resulting in two billion downloads globally. Renowned developers, including EA, Lego, Big Fish Games, and BoomBit, have all worked with SuperScale.

SuperScale plans to use the latest injection of capital to expand its operations, enhance its range of services, and further contribute to the growth of the mobile gaming sector.

“For nearly 10 years SuperScale has been quietly gaining traction with its unique blend of data and professional services – combined with a ‘grow games or go home’ approach,” says Ivan Trancik, CEO and Founder at SuperScale.

“In 2023, it’s arguably more difficult than ever for companies to scale their games, so it felt like time to expand the scope and depth of our services to support more developers and publishers to succeed. This funding endorses the incredible hard work of our team, and will help us hit major milestones in our ambitious roadmap as we drive rapid growth for SuperScale and our customers alike.”

SuperScale UA pipeline approach

Source: SuperScale

Venture Publishing

With the newly acquired funding, SuperScale outlined plans to expand its services and extend them to a broader range of developers and publishers across the globe. A key aspect of this expansion involves the implementation of their ‘Venture Publishing’ approach.

Under this model, SuperScale invests directly in customers’ games, assuming responsibility for various aspects such as marketing, monetisation, and LiveOps. The company recoups its investment through a revenue share based on the additional profits generated by the games.

The demand for SuperScale’s services has witnessed a remarkable surge following Apple’s privacy-first policy changes in 2021. These changes have prompted significant modifications in the mobile gaming business model, driving increased interest in SuperScale’s offerings. To accommodate this growing demand, the company not only expanded its workforce but also established new offices. In 2022, SuperScale opened an office in London, followed by another in Gdansk in 2023. These strategic expansions have effectively more than doubled the company’s staff since 2019.

“SuperScale offers an ingenious blend of scalable technology and an expert team which combine to create something unique and remarkable in the market today. It has an innovative yet robust business model which is ideal for the current economic climate both globally and within the games industry specifically. We couldn’t be more excited to make this investment into Ivan and the SuperScale team. It has been a privilege for Across to be a part of this unique and once in a generation opportunity emerging in our region,” added Peter Jakubička, CEO at Across Private Investments.

Key takeaways

• SuperScale raises $5.4M in Series A funding, led by Venture to Future Fund, for mobile game growth platform
• SuperScale’s analytics platform aids game developers, with over 150 games supported and two billion downloads globally
• Funding to expand operations, enhance services, and implement ‘Venture Publishing’ approach for revenue sharing with game developers

The post SuperScale secures $5.4 million in Series A funding to support gaming app developers appeared first on Business of Apps.

User acquisition and app growth experts, Upptic, just launched a new product that targets creative workflows and digital asset management. Here’s what you need to know about the new Creative Hub.

What’s the Creative Hub?

Upptic’s Creative Hub aims to streamline and optimise various aspects of the creative process. This all-in-one platform facilitates efficient workflow management, seamless storage and organisation of assets, and delivers insightful analytics to evaluate creative performance.

Key features of the solution include seamless workflow tracking from concept to retirement. Marketers can now store and organise creative assets using flexible digital asset management system.

Users can gain campaign insights through a creative analytics suite, and proprietary modelling enables accurate measurement of iOS Creative ROAS developed to scale iOS UA profitably in today’s privacy era.

You can find out more about the Creative Hub here.

The post Upptic unveils new Creative Hub for app growth appeared first on Business of Apps.

Fitness and health apps saw some of the worst adoption on both app stores in Q4 2022 since the beginning of 2020. That’s according to a new report from performance marketing agency AdQuantum based on SensorTower data. Let’s take a look at the changing fitness app market, emerging trends and best-performing strategies.

Why did fitness and health app adoption slow in 2022?

The decline in fitness app uptake in recent years needs to be considered in the context of strong growth during the COVID-19 pandemic as lockdowns and social distancing measures prevented people from accessing in-person fitness activities. This led to increased demand for indoor entertainment options. Additionally, cancelled classes and gym memberships freed up budgets for alternative fitness solutions.

Following the peak growth in the second quarter of 2020, the growth rate gradually decelerated with fluctuations. This decline in growth can be attributed to the resumption of in-person activities as restrictions eased.

Quarterly downloads by app store

Source: AdQuantum 

But session numbers are still up

Despite the drop in app installs, there are positive indicators when examining user sessions. Session numbers remained consistent and even increased by around 1%. in 2023. This suggests that a significant portion of users acquired during the peak install period have been retained, and the current user acquisitions are more active and likely to have higher lifetime value (LTV).

Day 1 retention rates showed an increase from 25% in Q3 2021 to 35% in Q3 2022, and from 21% in Q4 2021 to 38% in Q4 2022. These metrics highlight that volume alone is not the sole determinant of success.

Health & Fitness App retention rates H2 2021 vs. H2 2022 (Global)

Source: AdQuantum 

Median stickiness rates for health and fitness apps rose from 15% and 14% in Q3 and Q4 2021, respectively, to 20% in Q3 2022 and 21% in Q4 2022. In other words, users are still actively engaging with fitness apps.

It’s not surprising that higher-income countries also see higher conversation rates of free trials and paid subscriptions. Prices of weekly plans tripled in Q4 of 2022 and monthly subscriptions followed that trend at a slower pace.

Total revenue in the Health & Fitness category by country

Source: AdQuantum 

Optimising your benchmarks

It’s crucial for marketers and developers in the health and fitness app industry, as well as the mobile marketing industry as a whole, to adapt to the evolving needs of their users. By understanding the specific experiences users seek within their respective markets and regions, better user acquisition campaigns and retention initiatives can be developed to attract the right users and provide them with the experiences that drive LTV.

In 2022, user-generated content style ad creatives were preferred by users of health and fitness apps. Three effective marketing approaches emerged: demonstrating simple exercises, incorporating gamification, and featuring real people in good shape.

To cater to the evolving needs of fitness enthusiasts, health and fitness app developers must prioritise creating an enhanced user experience. This includes developing apps that facilitate seamless management of activities with a high level of customisation and compatibility with wearable technologies.

Key takeaways

• Fitness and health app growth declined in Q4 2022, the worst adoption since the beginning of 2020
• User session numbers remained consistent and increased by around 1% in 2023
• Retention rates improved significantly, with Day 1 retention rates reaching 35% in Q3 2022 and 38% in Q4 2022

The post Fitness app adoption hit its worst quarter but sessions remained consistent at 1% rise appeared first on Business of Apps.

A brand new study reveals that midcore gamers are almost twice as expensive to acquire than casual gamers. Yet, their lifetime value can be substantially higher, according to Liftoff’s latest 2023 Midcore Gaming Apps Report. We’ll dive straight in.

Why are install costs twice as high for midcore gamers?

Based on programmatic data from over 30 billion ad impressions and 1.1 billion clicks across 5.5 million installs, the latest report finds that the average CPI for midcore games is approximately $2, which is double the cost of casual games at $1.

When it comes to cost-effectiveness, Android takes the lead with a CPI of $0.73 per install, making it roughly one-fifth of the cost of iOS, which has a CPI of $3.86 per install.

CPI overall and by platform

Source: Liftoff

“While casual games still dominate mobile, the challenges facing user acquisition, including Apple’s IDFA changes and rising inflation, have caused an increasing number of developers to set their sights on the midcore market,” explained Joel Julkunen, Head of Analytics at GameRefinery, a Liftoff company.

Additionally, midcore games exhibit a lower average day 7 ROAS compared to casual games, with a 4.3% day 7 ROAS as opposed to 7% for casual games. This difference can be attributed to the fact that midcore games require more time, beyond seven days, for their enhanced monetisation strategies to take effect.

Day 7 ROAS overall and by platform

Source: Liftoff

Interestingly, acquisition costs for midcore games show significant fluctuations throughout the year, with CPI noticeably higher during the summer months. In August, the CPI reaches its peak at $2.81. However, during the month of October, the costs become more favourable, offering the best deals with a CPI of $1.66 per install.

Additionally, from January to April, the acquisition costs for midcore games remain below $2, providing another period of relatively lower expenses.

The best deals are where?

When looking at the regional breakdown, EMEA stands out as the most favourable for user acquisition in midcore games. It offers a comparatively high day 7 ROAS of 4.4% and lower costs at $0.80 per install.

North America is the most expensive region, with a CPI of $5.45. However, despite the higher costs, North America still demonstrates a similar day 7 ROAS to EMEA.

On the other hand, Latin America has the lowest install costs at $0.27, making it the most cost-effective region. However, it has a relatively lower day 7 ROAS of 1.5%, indicating that the monetisation of midcore games in this region takes longer to generate returns compared to EMEA and North America.

ROAS by region

Source: Liftoff

When it comes to sub-genres, shooter games exhibit the highest CPI at $7.47, but they also generate the highest average day 7 ROAS at 6%. This indicates that while acquiring shooter game players may be more expensive, they tend to yield better returns within the first seven days.

On the other hand, strategy players are more cost-effective to acquire compared to shooter players, with an average CPI of $2.77 per install. Strategy games offer a mid-range option in terms of acquisition costs.

RPG games stand out as the most cost-effective option among the three genres, with a significantly lower CPI of $0.60 per install. However, RPG games also demonstrate a substantially lower day 7 ROAS, averaging around 1.7%. This suggests that while the acquisition costs for RPG players are relatively low, it takes longer for their monetisation to generate significant returns within the first seven days.

Key takeaways

• Midcore games have a higher CPI of approximately $2, compared to casual games at $1
• Android is a more cost-effective platform with a CPI of $0.73 per install, while iOS has a higher CPI of $3.86 per install
• Shooter games have the highest CPI at $7.47 but generate the highest average day 7 ROAS of 6%

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A surprising revelation was recently made about WeChat, the popular Chinese messaging and social app. The app now has over 400m monthly active users for its mini-games. How did it get there? And what are mini-games?

Mini-games in WeChat

According to a presentation from Chinese game analytics firm Gamelook, WeChat, which boasts over 1 billion users globally, has a thriving subset of mini-games.

Initially introduced in China in 2017, WeChat’s mini-games became available worldwide in 2019. The games incorporate a wide range of features including video streaming and document sharing, making WeChat a versatile platform for personal and business use.

WeChat was launched by Tencent in 2011 and has been growing rapidly ever since. It’s now one of the key revenue drivers for the app maker.

Mini-games are good for business

Given the immense user base of WeChat, it’s not surprising that its mini-games attract a significant number of players. With over 1 billion users engaging with the app for various purposes, from messaging to shopping to viewing video, it’s unsurprising that games are thriving as part of the social ecosystem the app created.

Pinball King is a successful mini-game on WeChat 

Source: The Bejinger

This trend has caught the attention of businesses, that started exploring ways to capitalise on the mini-game craze as early as 2019.

Competitors such as TikTok have also ventured into integrating mini-games into their offerings. TikTok has recently experimented with mini-games in the UK, primarily focusing on hypercasual titles.

For developers and publishers, the challenge lies in figuring out how to monetise the emerging trend. Mini-games differ significantly from full-fledged mobile titles, posing a unique set of considerations.

However, given user numbers and data, it’s likely we’ll soon be able to access insights into whether mini-games will emerge as major contenders in the gaming industry or remain a passing trend.

Key takeaways

• WeChat’s mini-games thrive with 400m users, showcasing their popularity and impact within the platform’s ecosystem
• Mini-games on WeChat drive revenue for Tencent
• Businesses seek to capitalize on the mini-game trend, exploring opportunities for monetisation and engagement in this growing market

The post WeChat’s mini-games attract 400 million users a month appeared first on Business of Apps.

Apple revealed a new ad format for the App Store, exclusively tailored for the Today tab. The revamped design presents a more concise layout compared to the previous full-height card style. Let’s take a closer look.

What’s the new Today tab ad format?

If an app is featured on the Today tab it’s displayed on the front page of the App Store. This means users will instantly see apps.

To enhance the user experience, the new format for the Today tab will be streamlined to showcase essential elements such as the app icon, name, and subtitle as entered in App Store Connect.

In this updated format, ads will be fully visible on the Today tab without the need for scrolling. Users will no longer have to navigate through the page to view the entire advertisement, ensuring a more convenient browsing experience.

The simplified design will be implemented across all countries and regions where Today tab ads are currently featured. But it’s important to note that the new format will only be available on iPhone devices running iOS 16.4 and later. Users with iOS 16.3 or earlier versions, as well as iPad users, will not have access to the Today tab ads in this updated format.

Cutting time by cutting the review process

Some marketers will rejoice at the mention that due to the new ads no longer utilising creative content from a custom product page, the custom product page designated as an ad tap destination won’t undergo a review process before an ad is launched.

However, it’s important to note that Apple Search Ads will still review app icons, names, and subtitles to ensure compliance with the content guidelines specific to Today tab ads and adherence to Apple Advertising Policies.

Updated ad guidelines

Apple also shared some updated ad guidelines. App marketers should not use images in app icons and names or subtitles that are considered inappropriate. Pricing or phrases such as “game (or app) of the day” are also not allowed. Custom product pages for redirects much be localised to the primary languages and app names and subtitles should match the language for associated countries and regions.

Existing campaigns will be changed over to the new format in July and developers won’t need to take any further actions.

Key takeaways

• Apple’s Today tab gets a sleek ad makeover, showcasing app icons instantly without scrolling.
• The new format is limited to iPhone devices on iOS 16.4+, not available on older iOS versions or iPad.
• The review process for custom product pages was eliminated, but ad content is still subject to Apple’s guidelines

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With more consumers using mobile apps and mobile devices than ever before, 95% of marketers have shifted their focus toward customer retention. That’s according to new research by OneSignal, the customer engagement platform.

Why retention is in

According to the survey of over 1,000 product and marketing experts, engineers, and C-suite executives, customer retention held significant importance for a majority of the participants, with 95% stating that it was either very important or somewhat important to their businesses. Furthermore, 71% of the respondents believed that customer retention would gain even greater importance in the upcoming three to five years.

Industry estimates reveal that the success rate of selling to an existing customer ranges between 60% and 70%.

In contrast, the success rate of selling to a new customer falls significantly lower, ranging between five and 20%.

Retention rate is most important KPI

Source: OneSignal

The shift in focus towards customer retention is particularly vital for subscription-driven industries like mobile apps and SaaS. Here, the ability to retain and engage users plays a crucial role in their overall survival and success. However, more traditional industries such as finance and healthcare can greatly benefit from prioritising customer retention too.

When customers feel valued and engaged with a brand, they are more inclined to recommend it to others, resulting in increased organic growth.

Adapting to an evolving marketplace

The study also found that 88% have made adjustments to their marketing and engagement strategies for the year 2023 as a direct response to the prevailing economic downturn.

Furthermore, an impressive 82% of respondents have actively taken measures to reduce their marketing and product expenditures in order to enhance their return on investment (ROI).

Economic downturn means reduced marketing spending

Source: OneSignal

“Companies need to resist the urge to make cuts in the wrong places – our survey shows that many are making decisions that can hurt retention in today’s economy. Customers expect highly relevant, timely, and personalised communication and engagement at every touchpoint – this should be your customer retention strategy for the market we’re in right now,” said George Deglin, CEO of OneSignal. “In a tight economy, increasing customer retention rates by just 5% can increase profits by 25% to 95%. Focusing on best practices like segmentation, personalisation, multichannel engagement, and real-time, automated messaging will play a pivotal role in growth.”

The survey also revealed that personalised communication was the most effective tactic for customer retention. Personalised messages based on customer behaviour and preferences can increase click-through rates (CTR) by up to 58%. Additionally, user segmentation leads to a 21% higher CTR.

Omnichannel engagement strategies yield more than 3x higher click-through rates compared to single-channel approaches.

In-app messages boast click-through rates 25 to 30 times higher than average push notification rates. Leveraging multiple communication channels caters to user preferences, enhances the user experience, and fosters stronger brand loyalty.

Key takeaways

• 95% of marketers prioritize it, leading to increased organic growth and profitability
• Personalized communication boosts CTR by up to 58% and user segmentation increases it by 21%
• Over 3x higher CTR with omnichannel than single-channel approaches, with in-app messages performing exceptionally well

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App developers recognise the crucial connection between brand building and expanding their user base. However, navigating the vast marketing landscape can be overwhelming, given the multitude of available options. That’s why Digital Turbine and Apptopia have taken a closer look at common winning strategies among leading apps to find out just which strategies are working the best. In analysing app install volumes and brand power for 20 leading apps across five popular app categories, there were four strategies that really stood out as separating the winners.

Community approach

Some apps have flourished by catering to specific niche communities, such as BeatMaker Pro for DJs. By understanding the unique needs and preferences of their target audience, these apps have been able to deepen connections within their communities. Through organic growth, they have effectively expanded their user base by providing valuable features and services tailored to the interests of their users.

Other apps have grown by employing well-executed marketing tactics that target micro-communities. Peacock TV, for instance, successfully captured the attention of WWE fans through intimate and focused campaigns. By focusing on specific audience interests and preferences, apps can create personalised marketing strategies that resonate with fans. This approach enables the forging of a strong bond with target users, leading to increased app adoption and user engagement.

Product-led growth

Certain apps have demonstrated the ability to leverage their product effectively to attract new users and stimulate business from existing ones. In some instances, the uniqueness and quality of the product itself have driven organic growth.

Additionally, other apps have achieved success by implementing various strategies, including loyalty programs, generating significant buzz around their product, and incentivising users to recommend the app to their loved ones.

Video streaming app index

Source: Apptopia

Tubi, for example, is an app that launched a “Watch Movies Free” approach which attracts users looking for cost-effective options. The appeal of a free service sets Tubi apart and makes it easy for users to recommend to their friends, contributing to its user acquisition and growth. Tubi’s brand momentum and positive word-of-mouth recommendations play a crucial role in its growth. Its ability to generate excitement and maintain a strong brand presence contributes to its competitive advantage.

Advertising execution

Several apps have successfully employed creative storytelling, a well-crafted media mix, social media influencers, innovative campaign sequencing, and other mobile advertising strategies to outgrow their competitors. These approaches have allowed these apps to differentiate themselves, capture user attention, and achieve significant growth.

For example, during the first quarter, Spotify made a strategic move to diversify its advertising channel strategy by incorporating more Mobile Web placements. Mobile web is considered the ultimate discovery channel since it’s widely accessed by mobile device users. To further enhance the discovery experience, Spotify placed a significant emphasis on preloads with top carriers and original equipment manufacturers.

Device integration

Several apps have experienced significant growth by forming partnerships that integrate them into the device experience, providing seamless access and increased visibility.

Social media index

Source: Apptopia

Take Shazam. The app remains in pop culture due to the “Beat Shazam” game show, but the app’s continued user acquisition success certainly isn’t due to its below-average brand love or its near-bottom brand velocity. It is due to its integration with Apple. Apple uses smart discovery throughout its devices for news, music, and video. And thanks to the premium placement of Shazam, the app continues to thrive even after 20 years.

Meta properties, which include popular platforms like Facebook, WhatsApp, and Instagram, exhibit remarkable brand power and growth. Despite occasional negative press, these platforms continue to thrive, demonstrating their ability to sustain and expand their user base. One key driver of this success is Meta’s effective integration of its properties.

Key takeaways

• Niche Focus: Target specific communities, cater to their needs, and foster organic growth through tailored features and services
• Product Power: Unique offerings and free services attract users, generate positive recommendations, and drive growth and brand loyalty
• Strategic Integrations: Partnering with devices or platforms ensures seamless access, increased visibility, and expanded user bases for app growth

The post BRAG Index III: Cracking the code to app growth and brand building appeared first on Business of Apps.

In-game ads tend to attract higher viewability rates according to new research from game ad platform Anzu, in collaboration with global attention tech company Lumen Research. This study, the most extensive of its kind thus far, delved into the influence of attention on digital advertising, with a particular focus on intrinsic-in-game ads. The objective was to asses the impact of ads on gamers, explore the connection between attention and purchase intent, and delve into other pertinent aspects.

Viewability is higher for in-game ads

To conduct the study, researchers collected data using eye-tracking technologies, analyzing information from 25 Anzu studies, 90 studies on in-game ad attention, forced exposure tests, and more.

According to Lumen’s dataset, across 42 different digital ad formats such as YouTube ads and Facebook feeds, the average viewability score was 78 percent, but in many cases, it fell below 50 percent.

Viewability by average and in-game

Source: Anzu

However, Anzu’s in-game advertising achieved an impressive viewability score of 98 percent.

Interestingly, not only Anzu’s in-game ads but ads in games overall demonstrated higher viewability scores compared to the average of 78 percent for all formats studied. Among gamers, the viewability score increased to 85 percent. Furthermore, the time spent watching ads in games was slightly longer as well, with an industry average of 2.9 seconds per ad compared to 3.1 seconds in games.

There’s one caveat…

The active attention span of gamers towards these ads is actually slightly lower compared to other formats. Then again, mobile ads outperformed desktop ads overall, and gamers showed a higher likelihood of making a purchase from brands they encountered through in-game ads.

Viewability across different formats

Source: Anzu

Anzu’s co-founder and CEO, Itamar Benedy, highlighted the growing concerns among advertisers about the quality and value of ad delivery and media impressions.

“With the average global ad blocking rate now estimated at 37 percent, 52 percent of all consumers not paying attention when ads come on the TV, and 65 percent of people skipping video ads at the first chance they get, unsurprisingly, advertisers are beginning to question the quality and value of ad delivery and media impressions.”

In contrast, Benedy emphasized that gaming provides a highly impactful channel that captures significant levels of attention, which has not been witnessed to this extent in the digital ad space.

Key takeaways

1. In-game ads achieve viewability score of 98%, surpassing the average of 78% for other digital ad formats
2. Gamers show an 85% viewability score overall, indicating their engagement with in-game ads
3. Advertisers are increasingly questioning the value and effectiveness of ad delivery and media impression

The post Attention grabbers: in-game ads score 98% for viewability appeared first on Business of Apps.

Over two-thirds of gamers play on mobile devices, according to the latest Global Gamers Study 2023 from app experts Newzoo. The latest study found that 79% of gamers used their mobile devices to play and almost half (47%) played on multiple platforms.

Mobile gaming endures

The latest report examines how and why gamers play on their mobile devices. It shows that mobile gaming remains the dominant platform among gamers, with an impressive 35% exclusively playing on mobile devices.

In comparison, only 9% exclusively use consoles, and 8% opt for PC gaming.

8/10 of the total online population have engaged in gameplay

Source: Newzoo

The strength of mobile gaming can be attributed to its lower barriers of entry and enhanced accessibility compared to other platforms. This has also made mobile an enticing investment opportunity for developers. At the same time, advancements in technologies, coupled with the emergence of cloud gaming services, have further improved player experiences.

Over half of gamers are spending in-game

Some 57% of gamers have spent money on gaming. But here’s an area where mobile gaming falls behind other platforms, with a play-to-pay conversion rate of 45% compared to 55% for PC and 66% for consoles.

Newzoo attributes this disparity to the widespread adoption of the free-to-play business model in mobile gaming, which places greater emphasis on in-game item purchases as a crucial revenue source. Consequently, in-game items play a vital role in generating revenue within the mobile gaming ecosystem

Players pay

Source: Newzoo

A total of 87% of players spent money on in-game items over the past six months. The top three reasons given for spending money on games were a good price, sale, or special offer (34%), extra or exclusive playable content (34%) and personalising characters or things built in-game (29%).

Top reasons for spending in-game

Source: Newzoo

In-game currency proved to be the most popular item for players to spend money on, at 29%, followed by expansion or content packs and in-game gear at 25% each.

Interestingly, mobile games are good ways for users to discover new brands with 50% of players agreeing. It seems gaming brings added value to advertisers and marketers while providing an array of creative options to reach consumers in a way that feels more personal, playful, and immediately actionable.

Mobile games are a great way to discover brands

Source: Newzoo

Gamers worldwide proved to be more receptive to branded content and media collaborations, having more positive attitudes towards brands in every category studied.

Key takeaways

1. Over two-thirds of gamers choose mobile devices, with 35% exclusively playing on mobile
2. Mobile gaming lags behind PC and consoles, with a 45% play-to-pay conversion rate
3. 87% of players spend on in-game items, with in-game currency being the most popular choice

The post 79% of gamers play on mobile apps and 50% discover new brands in-game appeared first on Business of Apps.

In a bid to enhance competition within the app payments market, the Japanese government recently unveiled its intention to enforce new regulations on Google and Apple. These rules will mandate the tech giants to allow developers to utilise alternative payment systems, distinct from their own.

Changes in Japan

The government panel’s report suggests that Google and Apple should enable smartphone users to securely install applications from sources other than their respective platforms, namely the App Store and Google Play Store. These proposed measures aim to foster a more competitive and diverse app ecosystem in Japan.

Alongside these measures, the government intends to implement additional regulations that would compel Apple and Google to streamline the removal of pre-installed apps from iPhones and Android devices. This move aims to offer users greater control and flexibility over their device’s software.

The government panel’s report comes in the wake of a comprehensive investigation conducted by the Japan Fair Trade Commission, which highlighted the lack of competitive pressure faced by Apple and Google in Japan’s mobile operating system and app distribution service market. These findings serve as a catalyst for a more proactive approach in introducing new rules.

Worries over tech monopolies are a global matter

Google and Apple have faced regulatory scrutiny worldwide due to concerns over competition, leading to changes in their business practices. Apple, for instance, faced a €50 million fine by the Dutch Consumers and Markets Authority (ACM) and subsequently allowed Dutch dating apps to offer alternative payment options.

To comply with the EU’s Digital Markets Act, Apple is expected to introduce the ability to sideload apps for European users, though it wasn’t included in the initial beta of iOS 17.

On the other hand, Google launched its User Choice Billing program in Japan in September, enabling Android developers to offer alternative payment methods alongside Google’s own system. This program, which reduces the contentious in-app purchase fee by 4%, was later expanded to the United States, South Africa, and Brazil in November.

These initiatives reflect the efforts of both companies to address competition concerns and accommodate alternative payment preferences in different regions.

Key takeaways

• New regulations on Google and Apple aim to diversify app payments and installation sources
• Google and Apple face regulatory pressure worldwide, resulting in changes to their business practices
• Initiatives like alternative payment methods and app sideloading cater to evolving consumer preferences

The post Japan takes on tech titans and imposes app payment regulations appeared first on Business of Apps.

Gen Z’s interest in gaming apps is undeniable. According to new research from marketing firm Fluent, almost half of the generation’s users have at least four gaming apps installed on their phones. Let’s dive in.

Even non-gamers install gaming apps

Gen Z is the generation with the highest interest in mobile gaming with 48% of them having installed four mobile games and 26% having installed seven or more.

Millennials rank second with 45% having at least four games and 23% having at least seven or more games installed on their phones.

Interestingly, gamers who exhibit a distinct inclination towards role-playing (RPG) and strategy titles are notably more inclined to have more than four gaming apps on their smartphones – 58% fall into this category.

Following closely behind are enthusiasts of casino games, with 52% of them having a multitude of gaming apps on their devices. Additionally, puzzle and mind game aficionados make up 49% of gamers.

Surprisingly, even among those who claim not to be avid gamers, the report unravels an intriguing fact: 50% confess to having at least one game installed on their phones. This finding underscores the notion that non-gamers may still carry gaming titles on their devices, such as parents who download games for their children’s amusement.

Gaming app installs by generation

Source: Fluent

Who’s likely to download more games?

While 59% of respondents have no plans to change the number of gaming apps on their phones in the coming year, 19% intend to download additional games.

Interestingly, 23% of Gen Z and 24% of Millennials expressed their likelihood of downloading more games. However, among Gen Z, 26% of participants revealed their intention to reduce the number of games on their phones, making them the most inclined to do so.

The study highlighted that RPG enthusiasts are the most likely to download more games in the next year, accounting for 25% of respondents. However, similar to Gen Z, RPG fans also represent the group with the highest likelihood of decreasing their gaming app collection, with 26% planning to do so.

The survey noted a positive correlation between the number of games currently installed on one’s phone and the likelihood of downloading more games in the upcoming twelve months.

Individuals with seven games on their phones were found to be 33% more likely to download additional games, with 24% expressing their intent to do so, compared to 18% among those with fewer games.

Conversely, individuals who have not yet embraced gaming, primarily consisting of baby boomers and the silent generation, were found to be the least inclined to download more games.

Do users have ad preferences?

When examining user preferences for in-game and external app ads, 48% reported having no strong preference. However, younger generations exhibited a higher likelihood of favouring one ad format over the other, with 31% expressing a preference in either direction. Surprisingly, the silent generation stood out, as they were 45% more likely to prefer ads outside of apps.

The study also identified three primary factors that significantly influence new game downloads. Among respondents, 32% stated that they were more inclined to download a game if it offered opportunities to earn rewards.

Users prefer rewarded video ads in-game

Source: eMarketer

In comparison, 20% were receptive to ads on social media, and 16% were swayed by gameplay videos.

Notably, 38% admitted to downloading a game that provided monetary rewards. Millennials (44%) and Gen X (41%) emerged as the most likely demographics to engage in such downloads. When considering genre preferences, casino and gambling players exhibited the highest likelihood of downloading games offering monetary incentives.

Let’s not forget in-app purchases

In-app purchases have become a prevalent trend among mobile gamers, as revealed by the survey results. 55% of respondents make in-app purchases at least once a year, with 45% doing so monthly and 12% on a daily basis.

Generation Z and Millennials are the most frequent in-app purchasers, with 62% and 61% respectively.

Additionally, when considering gaming preferences, RPG and strategy players exhibited the highest inclination, with a striking 73% of them indulging in such purchases. Notably, 42% of RPG and strategy players made in-app purchases on a weekly basis.

Interestingly, gamers continue to spend despite price rises on in-app purchases from 2021 to 2022.

Price of in-app purchases on the rise

Source: Apptopia

Millennials stood out as the demographic most likely to spend money on gambling, with 30% of respondents from this group indulging in such purchases. On the other hand, Gen Z users were more inclined towards spending money on cosmetic items or gameplay customisation, with 18% of them engaging in such transactions.

Key takeaways

• 48% of Gen Z have at least 4 gaming apps installed, and 26% have 7 or more.
• 59% plan to keep the same number of gaming apps, while 19% intend to download more.
• 48% of gamers have no strong preference for in-game or external app ads

The post Gen Z install the most games and make the most frequent in-app purchases appeared first on Business of Apps.

Some 77% of players who have ever converted to in-app purchases (IAP) did so within the first two weeks of downloading a mobile game. That’s according to the latest report by Unity, the platform for creating and operating interactive, real-time 3D content, which examined current efficiency in monetisation and user acquisition strategies in mobile games. Let’s take a look.

Timing is everything

Developers of gaming apps are well aware that managing a game with IAPs demands significant resources. Understanding effective player conversion strategies and optimal timing for IAP implementation is crucial to develop a sustainable monetisation approach without unnecessary resource allocation.

Now, Unity revealed that timing is a critical factor, as a whopping 77% of players who have ever converted to IAP do so within the first two weeks of engaging with the game. Players who have not made an in-game purchase during the initial 14-day period should be regarded as prime candidates for exploring alternative monetisation methods. Segmenting these players and offering them opportunities to view ads or engage with in-game offerwalls can serve as effective revenue streams.

Notably, the study found that players are most receptive to rewarded ad placements between game levels, followed by placements within the IAP store and in the lobby or pre-level phase.

Where the most engaged users are

Source: Unity

While 18% of games incorporate rewarded video ads within their IAP stores, the audience visiting the IAP store consists primarily of players who are already considering making purchases. This implies that in-store placement strategies may limit the exposure of these ads to a specific subset of players, as many players who have no intention of making in-app purchases may never visit the store.

Offerwalls and tier 2 countries

Since player behaviours continue to evolve, developers must find additional monetisation avenues. Unity says that offerwalls, in particular, have the potential to generate substantial revenue for games employing multiple monetisation strategies. Some 38% of total ad revenue is derived from offerwalls in games that incorporate this feature.

User retention with offer-walls

Source: Unity

Moreover, the data demonstrated a distinct advantage in player retention for those who engage with offerwalls. Comparing retention rates from day 7 to day 120, players who converted through offer-walls exhibited up to 5x higher likelihood of continuing to play.

This retention advantage is most pronounced in later stages. Take day 90, where offer-wall converters maintained a retention rate of 14%, while other players fell below 3%.

Of course, there’s always the argument that managing limited resources can make paid user acquisition a challenge. Which is why identifying even minor opportunities for campaign optimisation becomes paramount to maximising the value of every dollar spent.

Tier-2 country CTR

Source: Unity

The data suggests that advertising in tier-2 countries can be more cost-effective compared to tier-1 countries. Tier-1 countries tend to have lower buying power. Tier-2 countries here included Australia, Germany, Denmark, France, Italy, Japan, South Korea, Norway, Sweden, and Singapore. On the other hand, tier-1 countries consisted of the US, Canada, and the UK.

Key takeaways

• 77% of players make in-app purchases within the first two weeks of downloading a game
• Non-purchasing players are prime candidates for in-game advertising
• Cost-effective user acquisition and revenue generation opportunities lie in tier-2 countries

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Optimising mobile and app advertising campaigns has never been easy. But for those still focused on tracking click-throughs only, it’s time to consider the wider picture, according to a brand new guide by measurement experts Adjust. Let’s take a look at the alternative – so-called view-through attribution (VTA) and how it helps app marketers improve their ROI.

How VTA improves campaign measurements

When using VTA, marketers track the number of times an ad is seen by potential customers (impressions), and this information helps them analyse and optimise their campaigns. It helps marketers understand the impact of platforms like Facebook, Instagram, TikTok, Snapchat, and Twitch on their marketing efforts, assessing how these platforms contribute to purchase intent, brand awareness, and favourability.

Adjust conducted a study on apps around the world that used VTA, and they found that sometimes an increase in ad views can also lead to more clicks on the ad. On the other hand, a decrease in clicks doesn’t always result in fewer app installations.

For example, in February 2022, there was a 16% decrease in clicks compared to the previous month, and this correlated with a 21% drop in app installations. However, in the following months, the number of clicks increased slightly, while app installations increased by 10%.

Clicks vs impressions

Source: Adjust

By May 2022, the number of app installations attributed to ad views was 19% higher than the February decrease, even though the number of clicks had only recovered by 11%.

“VTA is crucial to measuring and understanding overall campaign performance strategically and holistically,” said Reggie Singh, Adjust Director of Partnerships. “In light of greater privacy measures, such as Apple’s iOS 14.5 and Google’s upcoming Privacy Sandbox on Android, every little bit of insight into the user journey counts. It’s great to attribute an install to a click, but it’s even more powerful to know if more clicks, and ultimately conversions, occur after impressions have been served on a specific channel.”

First impressions aren’t everything

According to Youmna Borghol, the Head of Marketing Science at Snap Inc., Snapchatters tend to open the app multiple times a day and often seek guidance from their friends and creators when making purchasing decisions. However, when users encounter ads on Snapchat, they may not click on them immediately. Instead, they prefer to continue their experience within the app. Nevertheless, many users eventually complete their purchases at a later time after being influenced by the ads they viewed earlier.

Delving into vertical-specific data, it becomes evident that the food and drink sector reigns supreme with an impressive 43% of impression-based installs worldwide. Fintech follows closely behind at 36%, while the travel industry captures 30% of such installs. E-commerce holds a respectable 24%, while entertainment and social apps both claim 11%, and gaming trails at 5%.

Impressions vs clicks by app vertical

Source: Adjust

The study also notes that among the top five regions boasting the highest share of impression-based installs are Japan with a commanding 17%, followed by France and Benelux at 14%, MENA at 11%, INSEA at 10%, and the US with nearly 9%.

When to utilise VTA?

As VTA window lengths can vary significantly across industries, Adjust advises adopting vertical-specific windows to optimise VTA initiatives effectively.

For gaming apps, a 24-hour window proves adequate, whereas fintech apps benefit from a slightly extended period of 32.5 hours. By tailoring VTA windows to specific verticals, app marketers can enhance their attribution strategies and gain more accurate insights.

Install shares vary widely between operating systems. Android holds an average share of 9.2%, whereas iOS enjoys a significantly higher share of 14.1%. The app categories most frequently downloaded on iOS, such as eCommerce, food and drink, and lifestyle, largely contributed to this discrepancy, as they are more conducive to VTA. Conversely, Android dominates the mobile game download landscape, driven by high-intent, click-centric campaigns.

When it comes to diversifying their advertising mix, marketers are urged to focus on Connected TV (CTV) due to its exceptional ad recall rates. With CTV boasting an impressive 46% ad recall, significantly surpassing the mere 9% recall rates of website ads, it emerges as the highly recommended channel for holistic ad measurement. By leveraging VTA in the CTV space, marketers can unlock valuable insights and maximise their advertising impact.

Key takeaways

• VTA improves mobile ad campaigns
• Tailor VTA windows based on verticals
• like a 24-hour window for gaming apps and a 32.5-hour window for fintech apps.
• CTV has a significant impact, with a 46% ad recall rate, surpassing website ads’ 9%

The post The bigger picture: the benefits of view-through attribution for mobile ad campaigns appeared first on Business of Apps.

Ever wondered if there’s a right time to display your in-app pop-up notification asking users to allow or deny tracking? Mobile gaming experts Game Refinery wondered about just that and analysed the ATT tracking pop-up data of the 200 top-grossing US games.

How ATT impacted tracking

In April 2021, Apple introduced its App Tracking Transparency (ATT) policy, which required companies to obtain permission from app users before tracking their data and activity for advertising purposes across other apps and websites. This policy update has had a significant impact on mobile marketers and advertisers, making it more challenging for them to access the data they rely on for user acquisition.

According to Snap, Facebook, Twitter, and YouTube, the implementation of ATT resulted in losses of nearly $10 billion at the time, as reported by the Financial Times.

To get ATT permission, companies typically employ an in-app pop-up notification, giving users the option to allow or deny tracking on a per-app/game basis. However, there are no specific guidelines regarding when or where this pop-up notification should appear within the app.

This raises the question:

Is there an ideal timing for requesting users’ consent for data tracking?

The majority of sampled games (88%) implemented ATT pop-ups within a 25-minute timeframe. This indicates a widespread adherence among app developers to Apple’s privacy policy guidelines.

However, 11% of games didn’t feature any pop-ups within the same time frame. This could be attributed to the pop-up appearing much later in the game or the developers choosing not to seek access to the identifier.

Top 50 games ask for tracking earlier

Source: Game Refinery 

The analysis also found that 81% of the 177 games with ATT pop-ups displayed them within the initial 30 seconds of gameplay.

The specific timing of the pop-ups varied from 1 second to 15 minutes after launching the application, suggesting that some games opt to establish trust with users during their gameplay session before requesting permission to track their data.

Learning from the top games

Examining the top 50 grossing games, the timing of ATT pop-ups ranged from 1 second to 2 minutes and 20 seconds. In this subset, 84% of the games exhibited the pop-up within the first 30 seconds, and 58% of the top 50 games displayed the pop-up between 6 and 15 seconds.

These findings suggest that there’s a “golden window” for ATT pop-up timing, typically occurring within the first six to 30 seconds of gameplay.

The study also found that 26% of games utilise additional, personalised pop-ups. And games within the top 100 are twice as likely to feature additional pop-ups, suggesting that personalized pre-ATT prompts may be more common in top-grossing games or games that aim to maximize revenue through targeted advertising.

Personalisation matters

Source: Game Refinery 

Collecting more user information

The analysis revealed a small percentage of the sampled games that included additional prompts for user information. Specifically, 13% of the examined games implemented supplementary prompts, requesting details such as email addresses, phone numbers, age, gender, and other personal data.

Notably, the presence of these additional prompts varied based on the games’ rankings in the top-grossing chart. Among the games within the top-grossing 100 chart, 17% included such prompts, whereas only 9% of the games ranked between 101 and 200 featured them.

Top games ask for more user information

Source: Game Refinery 

It indicates that games generating higher revenue are approximately 89% more likely to request additional user information compared to games ranking between 101 and 200.

The data suggests that the most effective time to display ATT pop-ups is within the initial 30 seconds of gameplay. However, the study lacked information on user acceptance or rejection of these notifications.

Key takeaways

• Majority of games implement ATT pop-ups within 25 minutes
• 84% display ATT pop-ups within 30 seconds, indicating an ideal window for user engagement
• Higher-revenue games (top 100) are 89% more likely to request additional user information compared to lower-ranked games

The post Pop-up or pop-out: what’s the ideal moment for ATT pop-ups in mobile games? appeared first on Business of Apps.

Onymos, the developer of a Features-as-a-Service platform, just announced the extension of its platform to support the creation of Internet of Things (IoT) and Internet of Medical Things (IoMT) ecosystems and apps. Enterprises will now be able to access the IoT capabilities through the Onymos Features-as-a-Service platform.

What changes is Onymos making?

Onymos Features-as-a-Service platform improves app development and innovation in industries like retail, healthcare, and entertainment. With over 20 foundational app features, including access, biometrics, and payments, companies can achieve unmatched speed, quality, and value.

The platform covers UI/UX, security, compliance, device logic, cloud storage, and automatic updates. It supports popular frameworks and messaging protocols for seamless integration.

According to McKinsey enterprises could unlock $5.5 trillion to $12.6 trillion in value through IoT by 2023. Its findings emphasize that IoT will have the most significant impact in production environments and human-health settings, like manufacturing and hospitals.

Onymos options for teams

Source: Onymos

Onymos has become a trusted partner for enterprises in these sectors and beyond, enabling them to build IoT and IoMT ecosystems with an impressive 80% faster time-to-market compared to traditional development timelines.

Powering IoT

Onymos IoT provides engineering teams with:

Onymos Edge: A versatile gateway facilitating seamless communication between IoT devices and applications, regardless of the protocol used.

Onymos Access: A convenient login solution provided as a front-end code library, offering compatibility with major authentication providers such as Okta, Auth0, Azure AD, Apple, Google, and Facebook, empowering enterprises to select their preferred authentication method.

Onymos DataStore: A comprehensive set of utility functions ensuring secure data storage and retrieval in the cloud. It provides standardized access and connectivity to leading cloud platforms like AWS, Azure, and Google Cloud Platform (GCP).

“IoT is growing more and more popular each day, and many industries like healthcare, agriculture, and energy are beginning to deploy the technology as part of their operations. However, for enterprises to benefit from the technology, they must first assemble the underlying ecosystem that enables the devices to connect and exchange data with other devices and systems — an activity that is extremely complex and arduous,” said Shiva Nathan, Founder and CEO of Onymos. “Our IoT solution provides engineering teams and developers with the necessary building blocks to create the ecosystem required for the devices and systems to function properly.”

Key takeaway

• Onymos extends platform to support IoT and IoMT ecosystems, enabling seamless app development
• McKinsey projects $5.5-12.6 trillion value through IoT, with significant impact in production and healthcare
• Onymos empowers enterprises with 80% faster time-to-market in building IoT and IoMT ecosystems

The post Onymos unveils IoT expansion to accelerate enterprise app development appeared first on Business of Apps.

TikTok has become the first-ever app to exceed $1 billion in consumer spending within a single quarter. That’s according to new data from mobile app experts data.ai. Let’s dive in.

One-time purchases can still succeed

TikTok amassed $1 billion in consumer spending in Q1 2023, followed by Honor of Kings, a popular game, which saw $570 million in global consumer spending across iOS and Google Play platforms. YouTube secured the third position with an impressive figure of over $530 million in consumer spending.

TikTok stands out as a true unicorn in the realm of in-app purchases, going against the grain when it comes to consumer spending trends. Unlike non-game apps, where subscriptions account for nearly 70% of in-app purchase spending, TikTok distinguishes itself by relying on one-time purchases, a model typically more popular in the gaming industry.

Subscription vs non-subscription spending on iOS app

Source: data.ai

TikTok users have the option to purchase gifts for their favourite streamers, and this unique approach has propelled TikTok to the top of the charts. In fact, TikTok is the only non-gaming app among the top 10 in the United States in terms of revenue generated from one-time purchases, surpassing popular titles like Candy Crush Saga, Roblox, and Pokémon GO.

Thanks to its large and devoted fan base, TikTok has been able to forgo the subscription model and instead accumulate billions of dollars through the sale of TikTok coins. This success is likely to have captured the attention of other social platforms that have yet to crack the code of monetisation beyond advertising. The ability of TikTok to achieve such remarkable financial success through in-app purchases demonstrates its strong position as a social video giant.

Changing landscape of in-app spending

As mobile devices dominate our lives and apps become our go-to source for entertainment, health, fitness, and even dating, consumer spending habits undergo an evolution.

Subscriptions, riding high on their popularity, cater to the demand for affordable options, providing the convenience of auto-renewal and ensuring developers a steady stream of revenue.

In the world of in-app purchases, price sensitivity takes centre stage. In Q1 2023, a staggering 70%+ of non-gaming in-app purchase revenue in the US stemmed from purchases priced between $10 and $100, marking a 6-point surge from Q1 2022.

iOS consumer spending share in the US

Source: data.ai

This shift highlights consumers’ recognition of the value and affordability within this price range. The tide of consumer spending is changing, prompting both users and developers to adapt to this dynamic app economy.

In mobile games, mid-tier in-app purchases ($10 – $99) make up 42% of spending. Consumers tend to favour low-priced items or splurge on high-priced purchases above $100.

About 45% of game in-app purchase revenue in the US comes from purchases under $10, while a significant portion is generated by purchases priced over $100.

Case example: Hinge

Hinge, the dating app, revamped its monetisation strategy to achieve a 60% year-over-year revenue growth in the US during 2022. Recognising the need to stay ahead, Hinge introduced Roses (akin to Tinder’s Super Likes) as an enticing one-time purchase option alongside its subscription services in late 2020. This in-app purchase proved to be a success, contributing to over one-third of Hinge’s revenue in the US on iOS by Q1 2023.

Hinge US revenues

Source: data.ai

Hinge also recently expanded its membership levels to cater to these preferences. Earlier this year, the dating app introduced a $60 per month subscription option, which garnered significant attention. Moreover, it witnessed an upward trajectory in popularity for its most sought-after subscription option in Q1 2023, priced at $30, up from $20 the previous year.

Key takeaways

• TikTok shatters records with $1 billion in consumer spending, leveraging one-time purchases and a devoted fan base
• Subscription models dominate non-game app spending, but in-app purchases priced $10-$100 see significant growth
• Mid-tier in-app purchases make up 42% of in-app consumer spending

The post TikTok surpasses $1 billion in consumer spending in a single quarter appeared first on Business of Apps.

China retains its unrivalled position as the dominant force in the global mobile gaming industry, capturing a staggering 31.7% share of the worldwide mobile games revenue, all generated domestically. That’s according to the latest research from video games market research firm Niko Partners.

China leads in revenues

China is expected to reach $57 billion in gaming revenues by 2027. That figure includes mobile, PC and console games. Game companies in the country now account for 47% of mobile gaming revenues and 39% of PC revenues globally.

“Chinese game companies are growing internationally, and they are making bold investments at higher rates than ever,” said Lisa Hanson, CEO and founder of Niko Partners. “PC games revenue generated overseas by Chinese owned companies rose by 22% in 2022 and is expected to grow by a 13.8% CAGR through 2027 – which is higher than the domestic growth rate by a significant margin. You must get to know Chinese developers and publishers both in the domestic market and abroad if you are serious about the global games industry.”

China mobile gaming revenues projected to grow

Source: Niko Partners

Gamers on the rise

Despite a declining population, the country is projected to reach a whopping 730 million gamers. In terms of revenue distribution, mobile games account for 66%, PC games for 31%, and console games for 3%.

In 2022, Tencent and NetEase dominated the domestic PC and mobile games revenue, capturing a combined market share of 61%.

However, their dominance weakened compared to 2021 due to underperformance of existing titles and a lack of new game launches. This suggests that other competitors are gaining ground.

In Q1 of 2023, both companies reported positive earnings, with Tencent’s domestic game revenue growing by 10.9% year-on-year and NetEase’s total games revenue increasing by 7.6% year-on-year.

Interestingly, 42.8% of active gaming and esports content viewers in China make in-game purchases every month, compared to only 2.2% of gamers who do not watch esports or gaming content. Furthermore, gamers who engage in live streaming tend to spend, on average, 70% more per month than those who do not.

“China’s market can be tough for domestic and foreign companies, but the country remains the #1 market globally for games revenue and the number of gamers, and cannot be ignored,” stated Lisa Hanson, CEO and founder of Niko Partners. “Game companies are successful in China, both through officially approved releases on app stores and unlicensed releases through platforms such as Steam International. If we consider games published through Steam in China as if Steam were a single entity, the revenue generated from the platform would make surpass all other publishers in the country except for Tencent and NetEase.”

Key takeaways

• China accounts for 31.7% of worldwide mobile games revenue
• China is projected to achieve $57 billion in gaming revenues by 2027
• China is expected to have a massive 730 million gamers, with mobile games accounting for 66% of revenue

The post Chinese game companies contributing 47% of mobile gaming revenues appeared first on Business of Apps.

Perhaps it was only a matter of time before we’d all get tired of the endless stream of influencers on our social apps unpacking or promoting products. Now research by SaaS platform provider EnTribe confirms that the majority of consumers aren’t interested in influencer posts and, worse, do not trust brands using them. Let’s dive in. 

Influencers are out

To understand consumer sentiment, EnTribe polled over one thousand American consumers in April 2023 to get their views on influencer content and how purchasing habits would differ if brands used consumer content instead. 

A whopping 81% of consumers said that a brand’s use of an influencer had no impact on their brand perception. In some cases, it even had a negative impact. Roughly half (51%) said they simply scrolled past these pasts. With 86% of users regularly seeing influencer posts on their social media feeds, perhaps it comes as little surprise that they’re a bit fed up. In fact, nearly a third said they hated these posts and found them untrustworthy.

Losing faith in influencers

Source: EnTribe

Just 12% have actually made a purchase of a product promoted by an influencer compared to 62% who had not.

And perhaps even more damning, 42% said they regretted their purchase.

But what’s the alternative for brands?

Consumers are in

Well, there are good news for marketers, because 90% of respondents said they would prefer for brands to share content from consumers instead. And not the ones you pay. No, actual consumers. 

86% said they would trust a brand more if it publishes user-generated content and 12% would make a purchase.

A whopping 90% of respondents had previously made a purchase after a friend or family recommended a brand. 

Greater trust in UGC

Source: EnTribe

And reassuringly, 82% would be inclined to make a purchase from user-generated content. 

The findings underscore an increasingly negative attitude consumers hold toward social media influencers. As a consequence, brands are reducing their reliance on mega-influencers and opting for user-generated content instead. 

Key takeaways

• 81% of consumers are unaffected by influencers
• 90% prefer brands sharing consumer content
• 90% made purchases based on recommendations

The post Out with influencers, in with consumers: 90% prefer real content appeared first on Business of Apps.

Twitter’s ad revenues in the US have taken quite the hit during April and May according to an internal presentation obtained by The New York Times. It also seems that the company has failed to meet sales projections during this period. Let’s take a look.

Ad revenues are falling

During the five weeks between April 1 and the first week of May Twitter ad revenues came to $88 million. That’s a significant decline of 59% compared to the previous year. The findings also indicate that Twitter frequently failed to meet its weekly sales projections in the US, sometimes by as much as 30%.

What’s more, interviews with current and former staff of the microblogging site reveal that the underperformance isn’t going to improve any time soon. Ad revenues are expected to drop around 56% each week compared to last year. So what’s behind the drop?

Twitter has a problem

Part of what may be fuelling the drop in revenues are concerns over a rise in hate speech and pornography on the platform and an increasing number of ads promoting online gambling and marijuana products. These factors are raising apprehensions that advertisers may be deterred from using Twitter’s advertising services.

It was previously reported that over 500 advertisers stopped spending on Twitter earlier this year and daily revenues were 40% lower than the year before. 

Major advertisers like Apple and Amazon reduced their expenditure on the platform and earlier this year, Insider Intelligence revised its forecast for Twitter’s global ad revenue in 2023, reducing it by 37% to $2.98 billion. This represents a 28% decline from Twitter’s projected ad revenue of $4.14 billion for 2022.

It seems Twitter is now determining ways to simplify buying ad space and creating automated ways to purchase ads outside of the US.

Key takeaways

• Twitter’s US ad revenue dropped by 59% in April-May, falling short of sales projections
• Content concerns, including hate speech and explicit material, may deter advertisers from using Twitter’s platform
• Major advertisers, such as Apple and Amazon, reduced spending on Twitter

The post Tweet retreat: Twitter’s ad revenue takes a nosedive appeared first on Business of Apps.

Gamelight, a mobile game advertising platform, has expanded its operations to nine countries around the world. In addition to the US, Germany, the UK, Canada, and Australia, Gamelight has now introduced its services in France, Italy, Spain, and the Netherlands.

What’s the gist?

Launched by LOUD Ventures in Germany, Gamelight is now a major player in the rewarded marketing space. The platform taps a broad user base across various self-published game recommendation platforms, effectively attracting top-tier users for mobile game publishers worldwide.

One of Gamelight’s key strengths lies in its development of a unique ROAS algorithm. This algorithm basically analyzes important data points such as users’ playtime, engagement levels, competitor game usage, and demographic information. 

By leveraging this comprehensive data, Gamelight can identify users who are highly likely to engage with partner games over the long term. This strategic advantage sets Gamelight apart from other user acquisition sources that rely solely on third-party app connections.

Gamelight has a 100% retention rate

Source: Gamelight

Rewarded playtime

The platform operates on a rewarded playtime system, where users earn points by actively playing and engaging with recommended games. This loyalty program helps to foster a devoted fanbase for the recommended games. Consequently, it not only acquires new users for its clients but also strengthens the bond between existing players and the games they enjoy, ensuring enhanced user engagement and overall satisfaction.

As part of its efforts, Gamelight has formed strategic partnerships with major mobile game publishers worldwide, offering them access to a pool of new and dedicated users to significantly boost their ROAS and retention rates. Advertisers retain autonomy over their user acquisition campaigns through Gamelight’s self-serve dashboard.

But what sets Gamelight apart is its track record of 100% advertiser retention rate and a 0% churn rate. Now users in France, Italy, Spain, and the Netherlands will be able to benefit.

Key takeaways

• Gamelight expanded its operations to nine countries, including France, Italy, Spain, and the Netherlands
• Gamelight’s unique ROAS algorithm analyzes playtime, engagement, competitor usage, and demographics
• The platform operates on a rewarded playtime system, earning points for users through active engagement with recommended games, fostering loyalty and enhancing user engagement

The post Gamelight expands mobile game ad operations to more countries appeared first on Business of Apps.

Some 81% of devices now use iOS 16 according to data released by Apple in the lead-up to the highly anticipated WWDC 2023 event. The company recently unveiled fresh insights into the widespread adoption of iOS 16, just as it gears up to introduce its newest mobile operating system, iOS 17.

iOS adoption

While 81% of devices adopted iOS 16, a notable 13% of devices remain loyal to iOS 15. Another 6% persist with earlier variations of the operating system.

Among iPhones released in the past four years, 90% use iOS 16, while 8% use iOS 15 and just 2% are still running older versions of the operating system. 

Apple iOS 16 adoption

Source: Apple

In addition to sharing insights on iOS 16 adoption, Apple also disclosed fresh statistics regarding the adoption of iPadOS 16. These numbers shed light on the software preferences among iPad users.

According to the data, a substantial 71% of all devices opt for the feature-rich iPadOS 16, while a notable 20% continue to rely on the previous iteration, iPadOS 15. The remaining 9% of iPad users are still using earlier versions of the operating system, showcasing a diverse range of preferences.

Taking a closer look at iPads introduced within the last four years, the majority of 76% are now equipped with the advanced capabilities of iPadOS 16. A respectable 18% of these modern tablets are running on iPadOS 15, while 9% persist with previous versions.

Operating system adoption on iPads

Source: Apple

WDC 2023

The news arrives just a few days before Apple’s much-anticipated 2023 Worldwide Developer Conference, where the tech giant is poised to unveil its latest hardware and software updates. 

Among the announcements expected at the conference is the introduction of iOS 17, which is rumoured to incorporate the capability for European users to side-load apps. This move is aimed at ensuring compliance with the Digital Services Act. 

As the iOS App Store boasts a staggering 101 million monthly active users in Europe alone, it will fall under the classification of a very large online platform (VLOP) according to the regulations set forth by the European Union.

Apple also made headlines earlier this week by disclosing forthcoming tax modifications for iOS developers. Furthermore, the company shared an astounding figure, revealing that the App Store ecosystem contributed a staggering $1.1 trillion in revenue in 2022.

It seems the company is all too aware of needing to comply more effectively with regulatory requirements.

Key takeaways

• 81% of devices are now using iOS 16, according to recently released data from Apple
• 13% of devices are still running on iOS 15, while 6% continue with earlier versions
• Among iPhones released in the past four years, 90% are on iOS 16, 8% on iOS 15, and only 2% on older versions

The post 81% of devices are now using iOS 16 according to Apple appeared first on Business of Apps.

Tech giant Apple made this week announced a series of upcoming tax changes that will impact apps, in-app purchases, and subscriptions. These changes are set to take effect from May 31. Let’s take a closer look.

App Store tax changes

In a blog post, the iPhone-maker highlighted that developers on the App Store will see modifications in their proceeds from the sale of apps, in-app purchases, and auto-renewable subscriptions, all in accordance with newly implemented tax adjustments. Prices won’t be affected.

The changes are as follows:

• Ghana: Increase of the VAT rate from 12.5% to 15%.
• Lithuania: Reduction of the VAT rate from 21% to 9% for eligible e‑books and audiobooks.
• Moldova: Reduction of the VAT rate from 20% to 0% for eligible e‑books and periodicals.
• Spain: Digital services tax of 3%.

Apple also revealed that it will now withhold taxes for all sales made in Brazil. This decision is in response to the new tax regulations introduced in the country. As part of its role in administering the collection and remittance of taxes, Apple will handle these responsibilities on a monthly basis.

Accessing your tax information

Source: Apple

Developers will be able to access information about the amount of tax deducted from their earnings starting in June 2023, with the May earnings report. It’s important to note that developers based in Brazil are not affected by this change.

Why is Apple updating its tax regulations?

Apple regularly updates the proceeds received by iOS developers in specific markets. That’s because of evolving tax regulations across the globe. 

The most recent update happened in January, which had an impact on App Store prices in various countries, including the UK and South Africa. 

These adjustments demonstrate Apple’s commitment to aligning with local tax regulations and ensuring compliance with the changing legal landscape.

Once the latest changes have taken effect, Apple will provide iOS developers with the opportunity to update their prices through the Pricing and Availability section of My Apps in App Store Connect. With a selection of over 900 price points, developers can adjust their app pricing to align with the revised tax regulations and market conditions.

Key takeaways

• Apple unveiled a series of upcoming tax changes that will affect apps, in-app purchases, and subscriptions on the App Store
• The modifications in developers’ proceeds will be in line with newly implemented tax adjustments and will not impact app prices
• Apple will now withhold taxes for all sales made in Brazil due to the country’s new tax regulations

The post Apple announces upcoming tax changes for App Store appeared first on Business of Apps.

The global games market witnessed a slight setback in 2022, as total revenues experienced a year-over-year decline of 5.1%. Despite this dip, the industry remained a force to be reckoned with, showcasing the diverse gaming landscape that captivates millions worldwide. That’s according to a new report from Newzoo.

Mobile games climb, browsers decline

Last year, mobile games accounted for 50% of the global market. With revenues reaching an impressive $91.8 billion, that’s a drop of 6.7% from the previous year. The convenience and accessibility offered by smartphones and tablets continue to contribute to the growth of the sector, attracting a wide range of players across various demographics.

Regional breakdown of global gaming market in 2022

Source: Newzoo

Console games secured the second-highest revenue total in 2022, with earnings amounting to $52.2 billion. Although console gaming experienced a decline of 3.4% compared to the previous year, it remained a formidable force in the industry. 

Browser PC games faced substantial challenges, as they witnessed the largest year-on-year revenue drop of 14.8%. 

Regional differences

The gaming market stagnated in most regions with two notable exceptions: Latin America and the Middle East and Africa. Although these markets accounted for only 9% of the total revenue, they experienced remarkable growth during the year. 

Latin America’s games market revenue saw a positive increase of 3.3% year-on-year, while the Middle East and Africa enjoyed a significant revenue bump of 5.8%.

Gaming market forecast for 2025

Source: Newzoo

China and the United States accounted for a substantial 49% of all consumer spending globally. Both countries have a strong gaming culture and a massive population of gamers, contributing significantly to the growth and development of the global games market.

Newzoo expects the global games market to grow by a healthy 2.9% to reach $206.4 billion in 2025.

Key takeaways

• The global games market saw a 5.1% decline in revenues in 2022
• Latin America and the Middle East and Africa emerged as growth markets, with respective revenue increases of 3.3% and 5.8%
• Global games market predicted to grow by 2.9% and reach $206.4 billion by 2025

The post Mobile game revenues decline 6.7% in 2022 appeared first on Business of Apps.

OpenAI’s ChatGPT saw downloads jump to 500k during the first six days after its launch, only surpassed by Truth Social, which garnered over 600k downloads. What makes the results even more startling is that by then, the app had only been available on iOS in the US. Let’s take a look.

Top iOS downloads in May

Since ChatGPT has been available as an app, its makers have launched the app in 11 more countries. That’s according to new data from mobile experts data.ai.

Only Microsoft Edge and Bing saw similarly impressive downloads during five days in 2023. 

When comparing the number of iOS downloads alone, ChatGPT outperformed Bing and Edge by a significant margin. ChatGPT amassed an impressive 480,000 installs, surpassing Bing’s 250,000 and Edge’s 195,000 downloads.

In May, when considering all US downloads across both app stores, Bing and Edge still held a lead over ChatGPT. However, when specifically examining iOS installs for the month, ChatGPT surpassed both Bing and Edge. This suggests that ChatGPT is on track to potentially surpass search-focused alternatives in the near future.

Bing and Edge still in the lead for downloads in May

Source: data.ai

As the demand for AI chatbots soared among consumers, numerous third-party apps emerged in the App Store, branding themselves as “ChatGPT” or “AI chatbot.” While a significant portion of these apps were essentially fleeceware, deceptively urging users to subscribe to costly plans in order to utilise their AI capabilities. 

With such a competitive environment prevailing among AI chatbot apps, one might have expected challenges for an official ChatGPT app to establish a foothold in the market. However, contrary to expectations, this has not been the case.

Competition? What competition?

Based on Data.ai’s analysis, ChatGPT not only outperformed its competitors but also surpassed numerous apps that took advantage of generic names to capitalise on consumer searches for “AI” and “chatbot” on the App Store. In terms of downloads, ChatGPT ranked among the top five when compared to other apps’ best five-day periods throughout 2023 on both the App Store and Google Play.

Downloads of chatbots on app stores in 2023

Source: data.ai

However, it’s worth noting that one app managed to exceed ChatGPT’s performance. “Chat with Ask AI” garnered 590,000 installs from April 4th to 8th, 2023, surpassing ChatGPT’s 480,000 installs between May 18th and 22nd of the same year, as indicated by the data.

In comparison to other chatbot apps, ChatGPT showcased commendable performance by amassing a total of 550,000 downloads. This tied it with Genie – AI Chatbot, the closest-ranked AI chatbot app in terms of May downloads on the U.S. App Store.

Top chatbot apps by downloads

Source: data.ai

While a few other apps, namely ChatOn – AI Chat Bot Assistant with 610,000 installs, AI Chatbot – Nova with 680,000 installs, and Chat with Ask AI with a significant 1.4 million installs, maintained a lead, it is worth noting that ChatGPT swiftly surpassed the milestone of half a million installs. This impressive growth indicates that ChatGPT is poised to potentially surpass these competing rivals in the near future. However, it’s important to remember that downloads often do not equate to usage. That data remains to be revealed.

Key takeaways

• ChatGPT: 500k downloads in 6 days, 2nd largest launch after Truth Social
• ChatGPT outperformed Bing and Edge on iOS with 480k installs
• But “Chat with Ask AI” surpassed ChatGPT’s with 590k installs

The post ChatGPT’s downloads surged to 500k in the first six days appeared first on Business of Apps.

In today’s fast-paced world, consumers are increasingly seeking convenience and efficiency through the use of mobile apps. That’s according to a survey of 11,000 global respondents which shows that the top three reasons for using apps are “ease of use” (35%), “simplifies my life” (31%), and “saves me time” (27%). 

App stores dominated discovery

The latest study by mobile app experience company Airship takes a closer look at what motivates consumers to continue to use mobile apps, how they discover them and why and when they are likely to delete them. 

While economic challenges persist, the growth of opt-in motivators such as deals, rewards, and targeted offers indicates a shift towards higher-level benefits. Consequently, consumers are increasingly drawn to apps that prioritise ease, speed, and simplicity.

Apps simplify user life

Source: Airship

App discovery remains heavily reliant on searching and browsing through app stores, irrespective of household income levels, generations, and the majority of countries. Search engines come in as the second most popular method for app discovery, followed by word of mouth (WOM).

Notably, personal recommendations play a significant role in driving app downloads in the UK, France, and Canada, where consumers rely on WOM as much as, or even more than, app stores. Similarly, in the US, Germany, and Singapore, WOM stands as the second most prevalent means of finding apps.

App stores remain top spot for finding new apps

Source: Airship

A quarter of users never use apps

Worryingly, 26% of users delete apps because they never used them. It highlights that first impressions are everything – at least in the app economy. In Canada, France, and Germany, “never used” takes the lead as the primary cause for app deletion, while in the US, UK, and Singapore, it ranks second. 

A majority of consumers (57%) only give an app one or two chances before making up their minds. Additionally, within the first two weeks of downloading an app, a staggering 73% of consumers determine whether they will keep or delete it. This behaviour holds true across all countries, household income levels, and generations, highlighting the universal importance of making a strong impression within the early stages of app usage.

17% of users delete app after first use

Source: Airship

When it comes to app deletion, other top reasons cited are “freeing up phone storage” (32%) and “excessive in-app ads” (30%). 

These findings underline the importance for brands to swiftly and effectively communicate the value of their apps to customers. Enhancing the onboarding experience for mobile apps is crucial for encouraging usage and optimising retention. Additionally, establishing connections with customers beyond the app, such as through email or SMS, can help drive engagement and encourage users to return to the app.

“App user acquisition means almost nothing if brands aren’t able to retain their users and drive repeat usage. Brands today need to deliver value by using every opportunity to make life better for their customers,” said Thomas Butta, Chief Strategy and Marketing Officer, Airship. “No one else besides Airship can unify and optimize the entire mobile app customer lifecycle, from app features and discovery to campaigns outside the app and experiences inside the app.”

Key takeaways

• “Simplifies my life” is one of the top three reasons (31%) users use apps from their favourite brands
• Within the first two weeks, 73% of users decide to keep or delete an app
• Top reasons for app deletion: “never used” (26%), “freeing up phone storage” (32%), “excessive in-app ads” (30%)

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Builder.ai, a mobile app building platform based in London, just secured a whopping $250 million in Series D funding round, spearheaded by the Qatar Investment Authority (QIA). What’s going on and what’s all the hype about?

What’s Builder.ai?

Builder.ai has been around since 2016. The platform enables people to create mobile and web apps maximising productivity while minimising resource consumption. It’s an AI-powered tool that’s designed to be so simple and accessible that everyday businesses and individuals can turn their ideas into apps while also reducing costs by up to 70%. 

The secret to Builder.ai’s success lies in its unique approach of breaking down apps into modular, reusable components, akin to building blocks, which are then customised by their network of skilled designers and developers. The traditional notion of apps, which had a long lifespan spanning years, is now evolving into a dynamic entity with a lifespan akin to a conversation. 

Growing and growing

Over the last few years it has experienced remarkable growth, nearly doubling its workforce since January 2022. Furthermore, the company has expanded its presence in the United Kingdom by inaugurating four additional offices in the USA, the UAE, France, and Singapore, starting from 2021.

Builder.ai uses AI to boost its capabilities

Source: Builder.ai

In terms of financial performance, Builder.ai achieved an impressive revenue growth of 2.3 times in 2022. 

Additionally, the company successfully deployed over 40,000 features to its valued customers during the same period.

The latest funding round is a testament to its success and elevates Builder.ai’s total raised capital to surpass $450 million, accompanied by a significant 1.8x surge in its valuation.

“With the support of our investors and the dedication and drive of our team, we are further empowered to unlock our own potential. Our growth strategy has always been driven by a DNA based on being able to do more with less and this has weaved into our shared vision with our customers around the world as everyone pushes the envelope to do more,” said Sachin Dev Duggal, Chief Wizard and Founder of Builder.ai. 

“It is what attracted our first-round investors in 2018, and what drives this Series D today. Our team is already investing this capital in our AI and automation capabilities, not only keeping pace with the fast-moving industry, but leading from the front so we can empower our customers more and at the same time use new frontier technology responsibly.”

Key takeaway

• Builder.ai secures $250M in funding, led by Qatar Investment Authority
• Builder.ai doubles its workforce and deploys over 40,000 features to customers
• The platform enables cost-effective app development

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In an era dominated by smartphones and an abundance of mobile applications, understanding what drives consumers to adopt and retain apps is crucial for companies seeking to thrive in the digital landscape. According to new research from Airship, 42% of British consumers say the primary reason for their unwavering commitment to apps lies in their “ease of use”, underscoring the critical role that user-friendly interfaces and seamless navigation play in cultivating long-term engagement and brand loyalty.

Simplifying daily life

Based on the insight from a global survey of 11,000 respondents, Airship found that both word of mouth and app store browsing emerged as the most popular methods, each accounting for 41% of the respondents’ discoveries. 

The top three reasons behind app usage from favourite brands were “ease of use” (35%), “simplifies my life” (31%), and “saves me time” (27%). Even amidst challenging economic times, it is clear that consumers are increasingly drawn to apps for their ability to deliver higher-level benefits—offering ease, speed, and simplicity.

Deals, rewards, and targeted offers experienced the most significant growth as opt-in motivators for app usage. But that’s not all. The reasons consumers continue to use apps are increasingly about higher-level benefits: ease, speed, and simplicity.

The power of word of mouth

App stores continue to dominate as the preferred avenue for discovering new apps, transcending household income levels, generational gaps, and national boundaries. Whether searching or browsing, users consistently turn to app stores to explore the latest offerings. 

How users find apps

Source: Airship

Following closely behind, search engines emerged as the second most popular method for app discovery. However, the power of word of mouth (WOM) should not be underestimated. In the UK, France, and Canada, personal recommendations play a significant role, with consumers relying on WOM as much as, if not more than, app stores to guide their app choices. 

Similarly, in the US, Germany, and Singapore, WOM ranks as the second most common method for finding apps. Clearly, in an ever-evolving digital landscape, the discovery of new apps remains influenced by a blend of technological tools and good old-fashioned word-of-mouth recommendations.

Why users delete apps

When it comes to deleting apps, two key factors emerged as primary culprits: the need to free up phone storage and an overwhelming number of in-app ads.

 Astonishingly, the third most common reason for app deletion globally is simply “never used”, signalling a significant challenge for app developers and brands as it underscores the urgent need for brands to effectively communicate the value of their apps to customers. Improving mobile app onboarding experiences and establishing connections with users beyond the app itself is crucial for optimizing app usage and enhancing retention rates.

Why users delete apps

Source: Airship

Among the reasons for app deletion, the desire to free up phone storage emerges as the leading motive, with 32% of respondents worldwide citing it as their primary driver for removal. As smartphones become increasingly filled with data, users are compelled to declutter their devices, making storage management a critical consideration for app retention.

Moreover, the prevalence of in-app advertisements serves as a major deterrent, with 30% of respondents expressing frustration over excessive ads. This highlights the importance of striking a delicate balance between monetization efforts and user experience, ensuring that ads do not overwhelm or disrupt the app’s functionality.

How long users keep using apps before deletion

Source: Airship

The study also notes that most consumers (57%) only use an app once or twice before deciding whether to delete it or not. And within the first two weeks of downloading a new app, 73% of consumers will decide if they’ll delete it – a behaviour consistent across all countries, household income levels and generations.

Key takeaways

• 42% of British consumers prioritize “ease of use” as the primary reason for app usage
• App stores and word of mouth each account for 41% of app discoveries globally
• 32% of users delete apps to free up storage, while 30% are deterred by excessive in-app ads

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The use of artificial intelligence technology is increasingly prevalent among developers, as they follow the trend to enhance their mobile apps and expand their user base. Recent data provided by Sensor Tower reveals a substantial rise in the number of productivity apps incorporating the term “AI” in their names. 

More developers using AI

In 2020, a mere 3% of such apps embraced this technology, while in the first quarter of 2023, that figure surged significantly to reach 34%.

Consequently, the Play Store and App Store saw a notable surge in downloads and revenue for these AI-powered apps throughout the initial three months of this year. The revenue generated soared to an impressive $20 million, marking a remarkable growth of 396% compared to the preceding quarter. 

Simultaneously, the number of installations experienced a substantial upswing, surpassing 45.8 million, which represents a remarkable increase of 378% compared to the previous quarter.

Throughout this period, the US emerged as the leading market for these apps, witnessing a substantial number of downloads and revenue. Impressively, they garnered nearly 10 million installs in the country, marking an impressive quarter-over-quarter growth of 550%. Moreover, these apps generated a remarkable revenue of $8.3 million.

Downloads by country

Source: Sensor Tower

In terms of downloads, India secured the second position, accounting for 6% of the total downloads, followed by Brazil with 5%. Regarding gross revenue, the UK ranked second with $958K (5%), closely followed by China with $882K (5%), Japan with $836K (4%), and Canada with $702K (4%) respectively.

Chatbots come out top for downloads

The latest report also provided insights into the most popular AI-powered Android and iOS apps that experienced the highest number of downloads and revenue during the initial quarter of 2023. Leading the charts in both categories was the app “AI Chatbot” developed by Vulcan Labs, which amassed an impressive 9.5 million downloads and generated $3.3 million in gross revenue.

In terms of downloads, Microsoft’s newly introduced AI-powered Bing app claimed the second spot of the quarter, accumulating 7.3 million new installations. Following closely were “Genie – AI Chatbot” by AppNation, “AI Chat – Chatbot AI Assistant” by Social Media Apps, and “ELSA: AI Learn” by ELSA, securing the third, fourth, and fifth positions, respectively.

Top apps by downloads and revenue

Source: Sensor Tower

The introduction of ChatGPT’s iOS app is anticipated to intensify the competition in the mobile market, according to Sensor Tower. With this new addition.

Key takeaways

• Productivity apps with “AI” in their names increased from 3% (2020) to 34% (Q1 2023)
• AI-powered apps witnessed a 396% revenue growth ($20M) and 378% installation increase (45.8M)
• “AI Chatbot” by Vulcan Labs tops charts with 9.5M downloads and $3.3M in gross revenue

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A staggering 70% of app developers are unhappy with the current amount of time available to their engineering teams for fostering innovation. In an industry where groundbreaking ideas and forward-thinking solutions are highly valued, this pronounced discontentment signals a significant hurdle for application development professionals. 

Running low on time

As the demand for cutting-edge applications continues to surge, it is evident that current development processes must be reevaluated to address these pressing concerns and foster a more conducive environment for creative problem-solving. 

Now, new research from Onymos, a developer of a Features-as-a-Service platform, based on the answers of over 100 app developers found that the majority are dissatisfied with the time they’re being given. 

The majority (56%) of leaders reported that the workload for updating apps was increasing year by year.

The survey also discovered that nearly one-third of app development leaders (30%) expressed that their teams allocate approximately half of their time to maintenance tasks. That’s a significant amount of resources dedicated to managing existing applications, which leaves less room for innovative pursuits.

App developers aren’t being given enough time for innovation

Source: Onymos

Taking longer to innovate

Nearly half of the respondents (45%) reported being dissatisfied with the efficiency of their teams in this aspect. This dissatisfaction signifies a pressing need for streamlined processes and strategies that can expedite the development of new features, enabling organizations to remain competitive in an increasingly dynamic market.

Approximately 30% of leaders stated that it takes their teams between 4 to 6 months to complete such projects. An additional 28% reported even lengthier development periods, with more than 6 months required for completion. These findings underscore the challenges faced by organizations in meeting project deadlines and the need for improved efficiency in the application development lifecycle.

Innovation only takes a quarter of app developers’ time

Source: Onymous

“There is tremendous pressure from the market for companies to innovate and provide applications that provide real value for end-users through novel features and functionality. However, engineering teams and developers are unable to dedicate the appropriate amount of time required for these activities due to overwhelming workloads that primarily consist of maintenance and recouping technical debt,” said Shiva Nathan, Founder and CEO of Onymos. “Companies must find a way to make their development processes more efficient so that their teams can be truly innovative and focus on the activities that contribute to their application and company success.”

Key takeaways

• 70% of app developers are unhappy with the available time for innovation
• 30% of teams spend half their time on maintenance tasks
• 45% were dissatisfied with efficiency in developing new features; 30% take 4-6 months for new app development

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In today’s fast-paced digital landscape, mobile applications play a crucial role in business success. However, a recent study reveals that a significant number of companies are falling short when it comes to releasing updates to app stores at an optimal frequency. This oversight can have a detrimental impact on their app store rankings, potentially limiting their reach and visibility among users. Let’s dive in.

Failing to release updates

A staggering 62% of companies have acknowledged their failure to release app updates frequently enough to app stores. That’s according to a new survey conducted by mobile app development platform Bitrise. 

While a small fraction of companies (11%) manage to release updates as frequently as once a week, Bitrise has identified a distinct group of high performers.

These top-tier performers are characterized by their ability to release updates every 14 days or even less frequently. Comparatively, the average release frequency across all companies stands at a modest 32%, translating to updates being rolled out every 15 to 30 days. 

How long does it take for a scoped feature to be deployed to the app stores?

Source: Bitrise

But what’s slowing down updates?

The approval process

A staggering 44% of companies have release approval procedures that are predominantly or entirely manual, significantly impeding their ability to swiftly deliver apps to consumers. 

In stark contrast, a mere 9% have successfully implemented fully automated approval systems, enabling streamlined and efficient app releases.

App updates and releases are critical for maintaining a competitive edge and meeting user expectations, making the efficiency of the approval process a crucial factor.

How frequently do you deploy new versions of your app to the app stores?

Source: Bitrise

User expectations and performance are at odds

Despite users downloading apps, companies are struggling to engage them in a timely manner. Optimal user engagement is achieved when apps open in under two seconds. However, a mere 34% of companies are currently meeting this crucial threshold.

By ensuring that apps open within the desired two-second timeframe, companies can enhance user engagement, improve overall user experience, and ultimately increase customer satisfaction.

High-performing companies also stand out by addressing bugs within a remarkable timeframe of less than 24 hours. And yet, 75% are taking anywhere from two to 30 days to rectify bug fixes.

One solution would be the installation of robust bug tracking and resolution systems, and proactive strategies to identify and address bugs promptly.

Key takeaways

• 62% of companies fail to release app updates frequently enough, impacting app store rankings
• 44% of companies have manual approval processes, hindering swift app delivery
• Only 34% of companies meet the optimal threshold of app opening within two seconds

The post The app-roval bottleneck: manual processes delay app delivery appeared first on Business of Apps.

Digital Media Solutions, Inc., (DMS) a prominent player in the mobile and digital advertising landscape, has made a bold move that could reshape its position in the market. The company revealed its intentions to acquire the HomeQuote.io home services marketplace from Customer Direct Group for approximately $35 million. The move signals a strategic shift towards expanding its offerings in the US.

What’s driving this move?

DMS, known for its technology-driven advertising solutions across a wide range of consumer sectors, including auto, home, health, and life insurance, aims to leverage this acquisition to establish a foothold in the promising home services market. 

By integrating HomeQuote.io into its portfolio, DMS seeks to tap into the growing demand for digital solutions in the home services industry. DMS will also gain access to the media and technology assets of the ClickDealer international ad network. 

“With this acquisition, we will be executing on our key strategic growth initiatives. We will be expanding our marketplace solutions to now include home services, a vertical which we believe will perform well in a down market as homeowners turn to renovating their homes as opposed to buying new homes. We will also be expanding our brand direct business internationally. Through the acquisition, we will be continuing to invest and expand in key verticals and end markets,” stated Joe Marinucci, CEO of DMS.

Tapping into emerging markets

As the Joint Center For Housing Studies‘ recently released data for Q4 2022 indicates, the trajectory for home remodelling and repairs remains on an upward trajectory, with homeowner improvement spending anticipated to reach an impressive $485 billion in 2023.

Homeowner improvement market

Source: JCHS

For homeowners, the process of identifying and selecting a reliable product or service provider in the home services sector can be a convoluted and time-consuming endeavour. The costs associated with mid- to large-scale home improvement projects often stretch into the thousands or even tens of thousands of dollars, further adding to the complexity.

Likewise, service providers encounter obstacles when attempting to connect and effectively communicate with homeowners. Reaching this demographic can prove challenging and expensive, leading to a need for innovative solutions.

This is where home services marketplaces like HomeQuote.io play a crucial role. Acting as intermediaries, these platforms facilitate connections between homeowners seeking multiple bids and offers to compare job pricing, and contractors looking to expand their reach within local markets.

The impending acquisition of HomeQuote.io by DMS signifies a strategic move to tap into the immense potential of the home services marketplace. By incorporating this platform into its existing portfolio, DMS aims to provide a value-additive process for both homeowners and service providers alike. This initiative seeks to streamline the often intricate and time-intensive process of home services procurement while simultaneously enabling contractors to expand their customer base and establish a stronger presence in their local markets.

Key takeaways

• DMS acquires HomeQuote.io to tap into the growing U.S. home services market
• The acquisition streamlines connections between homeowners and service providers
• DMS aims to expand its brand direct business internationally through the acquisition

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OpenAI is introducing its ChatGPT app on Apple’s App Store, in a push to extend the reach of its AI chatbot. This makes access to the chatbot more user-friendly but also has potentially negative consequences. The mobile app replicates the functionality of the ChatGPT website, enabling users to ask questions and receive AI-generated responses directly on their smartphones or tablets. 

Mobile AI

The app also incorporates Whisper, OpenAI’s voice recognition technology, enabling users to interact with the AI engine through spoken commands. 

This app release follows a series of recent product launches by various tech giants and startups, all vying to bring generative AI tools to market since the initial launch of ChatGPT in November. 

The ChatGPT app will contribute to the advancement of OpenAI’s extensive language models, which form the foundation of chatbots. Initially available in the US, the app will gradually expand to other countries and will also be made compatible with Android devices in the coming weeks.

Tech groups are also working to make generative AI accessible on mobile handsets instead of relying on cloud servers, aiming to expand the availability of the ChatGPT iPhone app and lower the associated computing expenses.

Regulation is urgently needed

The emergence of the ChatGPT app has intensified the ongoing examination of the burgeoning field of AI by regulatory bodies and governments worldwide. This scrutiny stems from growing concerns expressed by many AI ethicists and experts as well as an ever-growing number of users regarding the potential for technology misuse and the widespread job losses it could cause.

The utilization of AI algorithms on mobile devices raises concerns about the accelerated spread of misinformation. With AI algorithms capable of generating content at unprecedented speeds, there’s an increased risk of fake news dissemination and even disruption to democracies. The accessibility of generative AI technology on mobile handsets enables the creation and distribution of false information anywhere and everywhere, potentially exacerbating the challenges faced by societies in combating misinformation and preserving the integrity of public discourse.

On a more personal level, AI apps could lead to greater dishonesty. Take dating for example. Users of Tinder, Bumble and co can no longer be sure that the person they’re chatting to isn’t using bots to enhance their writing or photos. In other words, we may be increasingly speaking to modified versions of each other if not entirely fake profiles that appear more real than ever before.

Sam Altman, a key contributor to the development of AI technology, recently appeared before a US Senate subcommittee on privacy, technology, and the law. Altman advocated for the regulation of this rapidly advancing technology, emphasizing the need to establish frameworks that mitigate the potential for abuse and promote responsible AI usage.

Key takeaways

• ChatGPT app is launching as an app on the Apple App Store
• The accessibility of generative AI on mobile devices raises worries about the spread of misinformation and fake news
• The co-founder of ChatGPT agrees that regulation is urgently required to halt the negative effects of AI on humanity

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In a recent announcement, tech giant Apple revealed that its renowned App Store has successfully thwarted over $2 billion worth of potentially fraudulent transactions in the year 2022 alone. The prevention of fraudulent transactions and the rejection of millions of app submissions are part of the company’s strong review policy. Let’s dive in. 

Making the App Store safer

Apple shared that it had rejected approximately 1.7 million app submissions during the same period. These rejections were a result of these apps failing to meet the stringent quality and content standards set by Apple. By upholding these rigorous criteria, Apple aims to ensure that only the most reliable, user-friendly, and innovative applications are made available to its vast user base.

Furthermore, an estimated 3.9 million stolen credit cards were successfully intercepted and prevented from being utilised for deceitful purchases. 

Apple’s efforts led to the blocking of 714,000 suspicious accounts, effectively hindering them from engaging in any further illicit transactions. These measures amounted to a total prevention of approximately $2.09 billion in fraudulent transactions over the course of the previous year. 

Apple protects app users with security measures

Source: Apple

Out of the 1.7 million app submissions rejected by Apple in 2022, approximately 400,000 were turned down for privacy violations. Another 153,000 were rejected for spam, copying other apps, or misleading users, while 29,000 were rejected for containing hidden or undocumented features. Apple’s strict approach aims to ensure user privacy, prevent deceptive practices, and maintain a transparent and reliable app ecosystem.

Taking action

In a noteworthy development, Apple revealed a significant decline in terminated developer accounts due to potential fraudulent activity. In 2021, the company took action against over 802,000 developer accounts involved in suspicious practices. However, this number witnessed a notable reduction to 428,000 accounts in the following year.

Apple attributes this decline to the successful implementation of new methods and protocols aimed at combating app fraud within its ecosystem. By continuously refining its fraud detection systems and implementing stricter measures, Apple has been able to identify and take appropriate action against accounts engaging in fraudulent activities.

Other notable achievements

In 2022, the company rejected approximately 105,000 enrollments in the Apple Developer Program, suspecting fraudulent activities. To further safeguard its users, Apple took action against nearly 57,000 untrustworthy apps originating from illegitimate storefronts. By curating a reliable selection of apps, Apple ensures that users can confidently explore the App Store without compromising their privacy or security.

Apple blocks fraudulent reviews

Source: Apple

In a proactive measure, Apple disabled over 282 million customer accounts linked to fraudulent and abusive activity. This decisive action protects users from potential scams and maintains the overall integrity of the platform.

To prevent the creation of fraudulent accounts, Apple blocked around 198 million attempted fraudulent new accounts. The company also prevented nearly 84,000 potentially fraudulent apps from reaching App Store users and removing over 147 million fraudulent review entries. 

By taking decisive actions against fraudulent activities at various stages, Apple continues to fortify its app ecosystem and provide users with a secure and reliable platform.

Key takeaways

• Apple’s App Store prevented over $2B in fraudulent transactions in 2022.
• 1.7M app submissions rejected for not meeting Apple’s standards.
• Apple took action against fraud, blocking accounts and removing untrustworthy apps and reviews.

The post Apple’s App Store blocks over $2B in fraudulent transactions appeared first on Business of Apps.

Mobile advertising grew 14% year-on-year in 2022 to a whopping $336 billion. That’s according to data.ai’s State of App Revenue report, a comprehensive study of the mobile ad industry. It finds that despite formidable obstacles such as the far-reaching effects of the GDPR in Europe and Apple’s App Tracking Transparency, the domain of mobile advertising triumphed in 2022.

67% of app economy attributed to advertising

Data.ai estimates that the value of the app economy is now $500 billion highlighting the industry’s huge scale and significance. There’s little surprise that advertising and in-app purchases are two core pillars of the mobile industry.

Around $336B (67%) of its total worth now comes from advertising and $167B (33%) from in-app purchases.

Apps account for 65% of mobile ad monetisation

Source: data.ai

Europe emerges as a leader when it comes to mobile ad revenue. Despite competition from North America and Asia, the continent solidifies its position as the third-largest region for mobile ad revenue in 2022. This revelation highlights Europe’s commendable performance and underscores its relevance as a key player in the global mobile advertising landscape.

Subscriptions account for 30% of in-app expenditure

In the first quarter of 2023, an astonishing 30% of in-app expenditure on iOS can be attributed to subscriptions. This noteworthy increase from the previous year’s 27.6% signifies the growing prevalence of subscription-based models within the app ecosystem. This shift in consumer behavior indicates a rising inclination towards long-term commitments and recurring payments, underscoring the evolving nature of app monetization strategies.

Mobile ad revenue by region

Source: data.ai

Among app users who pay for Bumble, an intriguing revelation emerges: they are more than 25 times as likely to invest in OkCupid, Hinge, and Match compared to the average mobile user. This remarkable affinity showcases the interconnectedness of user preferences within the dating app market, highlighting the propensity of Bumble users to explore and engage with other popular dating platforms.

Ads drive 90% of YouTube revenues

The report also found that approximately 90% of YouTube’s revenue stems from the relentless influence of advertising, solidifying its role as the primary driving force behind financial success. However, in a testament to user preferences and the allure of an ad-free experience, 10% of revenue is derived from app store purchases made to eliminate these advertisements.

Interestingly, as a result of its ad-free subscription option, YouTube ranked as the #2 app by app store revenue in the US in 2022.

Key takeaways

• Mobile advertising reached $336B, driven by Europe’s strong performance and YouTube’s ad-driven revenue
• Subscriptions accounted for 30% of iOS in-app spending, indicating a rising trend towards recurring payments
• Advertising dominates the app economy, contributing 67% of its value, while in-app purchases contribute 33%

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When mobile users experience poor connectivity or unreliable WiFi networks, it significantly impacts their app usage and overall experience. Inadequate mobile connectivity leads to users spending 20% less time in each app session, while the impact is even more severe at 38% less time with poor WiFi. That’s according to new research from OpenSignal. 

It’s all about connection

Consistent exposure to subpar connectivity for seven days was found to result in a staggering 49% lower app retention rate among users, highlighting the critical role that reliable connectivity plays in user engagement and app retention. 

According to data provided by Opensignal, approximately 29% of mobile app sessions are affected by a poor signal, while 11% of app sessions experience similar issues when connected to WiFi networks.

The consequences are user frustrations and inconvenience. But it also affects app revenues, as most apps rely on monetization strategies such as in-app purchases or advertising. 

Smartphone users spending 20% less time in apps with poor connectivity

Source: OpenSignal

In order to generate revenue, apps need to retain users and encourage them to continue using the app over time. However, when users face persistent connectivity issues, their dissatisfaction grows, leading to a decline in app usage.

Shorter app sessions 

Smartphone users suffer from a lousy cellular signal in nearly one-third of their app sessions. This translates to app sessions with active data transfers being 20% shorter. It also results in fewer opportunities to display ads to users, thereby hampering app revenues. 

Moreover, when users spend less time within apps, they’re more inclined to cancel their paid subscriptions or uninstall the app altogether. The situation worsens on WiFi networks, with app session durations plummeting by a staggering 38% during the 11% of time characterized by a poor WiFi signal.

Emerging technologies will increase the need for reliable connections even further. 

Video is most affected

The impact of poor connectivity on app session length is substantial across various app categories, affecting both cellular and WiFi connections. Video Players experience the most significant drop, with sessions being 61% shorter on mobile and almost identical at 60% shorter on WiFi when encountering a poor signal. 

Several other categories also witness significant decreases in app usage when faced with poor connectivity, including Lifestyle, Navigation, News & Magazines, Education, and Shopping.

Video Player apps experience the highest increase in uninstall rates, with a staggering 31% more uninstalls occurring when users encounter a poor signal on the first day. This is followed by News & Magazines apps, which see a 24% increase in uninstall rates, and Lifestyle apps, which experience a 23% higher likelihood of being uninstalled under similar connectivity conditions.

Poor connectivity leads to drop in time spent in apps

Source: OpenSignal

Poor signal equals poor retention

When comparing app retention rates between instances of poor and good signal, an intriguing pattern emerges. On the first day, app retention is already 16% worse for users experiencing poor signal compared to those with good signal. This disparity can be attributed to reduced app usage due to connectivity issues.

However, the gap in app retention rates widens as time progresses. By day three, the difference in retention rates between users with poor signal and good signal reaches 41%. This indicates that users with poor connectivity are significantly more likely to discontinue app usage or even uninstall the app altogether over time.

Day seven mobile retention rate drops

Source: OpenSignal

The impact of poor connectivity on app retention becomes even more pronounced by day seven, with mobile app retention plummeting by 49% for users facing poor signal. 

App developers and service providers must prioritize addressing connectivity challenges to maintain long-term user retention and maximize the value of their apps.

Key takeaways

• Poor connectivity leads to 20% less app usage, affecting user engagement and potential revenue
• Video players experience a drastic 61% shorter session time with poor signal
• Users with poor connectivity have a 49% lower app retention rate by day seven

The post Video apps see a staggering 61% shorter sessions with poor signal appeared first on Business of Apps.

Small app developers on the App Store saw an impressive 71% increase in their revenue from 2020 to 2022, according to the latest data from Apple. These findings may serve as a significant point of emphasis for Apple, as it faces calls for greater flexibility in app distribution, including the potential opening up of iOS to alternative app stores. Let’s dive in.

App Store majority are small developers

Small developers within the App Store ecosystem made up approximately 90% of developers in 2022. The tech company defines small developers as individuals earning less than $1 million annually from the App Store and having fewer than 1 million downloads across all their apps within a year. 

In a move to support this group, the company reduced its fees from 30% to 15% in 2020.

Notably, a substantial portion of indie developers entering the ecosystem hail from Europe, accounting for 25% of new small developers. China constituted 23% of developer additions, while the United States contributed 14% of new developer signups. Additionally, regions such as South Korea, India, and Brazil collectively represented 35% of the new developers joining the App Store ecosystem.

Small developers on App Store

Source: Apple

Developers are branching out

During 2022, a significant trend emerged among small developers, with nearly 80 percent of them actively engaging on multiple storefronts. 

Developers who generate revenue by selling digital goods and services across multiple storefronts experienced earnings from users on an average of over 40 different storefronts. These findings highlight the growing global reach and cross-platform strategies adopted by small developers to maximize their app monetization opportunities.

Interestingly, among the global developers, a remarkable 40% either had minimal presence on the App Store or earned less than $10,000 just five years ago, highlighting the transformative impact the platform has had on their businesses.

Plane Finder is an example of a successful small developer app

Source: Apple

The company also emphasised its range of initiatives designed specifically to assist small developers, such as the App Store Small Business Program, Apple Entrepreneur Camp, App Accelerators, the App Store Foundations Program, and Apple Developer Academies. These programs provide valuable resources, guidance, and mentorship to foster growth and innovation among small developers.

To further enhance the developer experience, Apple organizes ongoing informational series such as App Store Sessions, Ask Apple, and Tech Talks. These initiatives provide developers with the opportunity to directly engage with Apple experts throughout the year, facilitating knowledge-sharing, support, and feedback on the latest features and technologies available.

In addition to these support programs, Apple equips developers with a comprehensive suite of free tools and frameworks.

Key takeaways

• Small app developers on the App Store experienced a 71% revenue increase (2020-2022)
• 90% of developers on the App Store are small developers
• 80% of them actively engage on multiple storefronts to maximize monetization opportunities

The post Small app developers on App Store see revenues rise 71% appeared first on Business of Apps.

The mobile creator community underwent a remarkable growth spurt since 2021, with its size almost tripling. It’s now valued at over $104.2 billion annually. As a result, there’s a sharp rise in the demand for mentorship and monetization opportunities for these aspiring creators. According to recent data, there’s been a significant surge in the number of social media users who are tipping creators for their content. 

Tipping is in

According to the Creator Economy Report, over 40% of users now give an average of $5 to $10 as a tip, a considerable increase from the mere 17% who did so back in 2021. This trend suggests that more and more people are valuing the work of social media creators and are willing to financially support them for their contributions.

App users are tipping creators

Source: IMF

When it comes to the top mobile channels used, TikTok and YouTube are favoured by creators and are the top-earning apps in 2023. 26% of creators claim both TikTok and YouTube are their favourite platforms, while another 26% say they earn the most on either platform.

It’s clear that TikTok and YouTube will remain essential platforms for creators in the years to come.

Preferred mobile apps for creators

Source: IMF

The study also found that the majority of creators interviewed make between $50K and $100K per year, but just 5% of those with over 5 million or more followers reported earning more than $1M a year.

More ways to monetise on mobile 

As social apps continue to shift their monetisation programs, content creators are diversifying their revenue streams by releasing merchandise, selling exclusive content, and starting their own brands. This allows them to stabilise their income streams and mitigate risks in an uncertain market.

Followers vs annual income

Source: IMF

Podcasting and live-streaming were among the most popular content styles on mobile apps. To keep up with shifting trends and policies, creators are utilising as many content forms as possible to increase discoverability and retain followers.

At the same time, apps and mobile platforms are releasing community guidelines and monetisation programs alongside new AI features to help creators produce better content.

Key takeaways

• Mobile creator community has tripled in size, valued at over $104.2 billion.
• TikTok and YouTube favoured by creators, top-earning apps in 2023.
• Creators diversify revenue streams, use multiple content forms, and mobile platforms release new features.

The post Mobile app creators are being tipped more appeared first on Business of Apps.

Hyper-casual used to be all the rage in gaming but it seems the business has experienced notable shifts, with profits no longer as lucrative as they were in the past. This is due, in part, to a downward trend in ad revenue, which can be attributed to the implementation of App Tracking Transparency (ATT) on iOS and changes in user behaviour following the COVID-19 pandemic, among other factors. Tenjin just released a new report focusing on the latest trends. Let’s dive in.

Ad impressions drop 10%

In 2022, the mobile advertising industry saw significant changes, with distinct trends emerging on different operating systems. According to the latest data. ad impressions on iOS experienced a sharp 20% decline throughout 2022, while Android platforms saw a decrease in eCPM by 28%.

Ad impressions dropped 10% during 2022

Source: Tenjin

Despite this, Android saw a rise in in-app purchases (IAPs), with the number of such purchases increasing by 37% over the year. Notably, India emerged as the leader in terms of Android app installs, ranking #1 in the category of countries with the highest number of installs.

India leads for Android app installs

Source: Tenjin

These shifts highlight the dynamic nature of the industry and the importance of staying abreast of changes to succeed in the market. So what does it all mean for hyper-casual game developers?

Going hybrid

It seems that developers are shifting to hybrid models instead. 

“If you ask industry experts to define hybrid-casual, you’ll likely get a range of different answers. With no clear consensus on the new “hottest genre” or business model,” said Roman Garbar, Marketing Director at Tenjin.

eCPM dropped 28% in 2022

Source: Tenjin

“What is clear, however, is that a hybrid storm is coming. Casual developers are integrating hyper-casual components and rewarded videos into their games, while hyper-casual developers are adding more in-app purchases and improving retention. But with advertising and monetization becoming increasingly difficult in 2023, developers will need to be strategic in their approach. We hope that these industry rankings and trends will help guide developers through this hybrid shift.”

Key takeaways

• Hyper-casual gaming is less profitable due to ad revenue decline and COVID-19 changes.
• iOS ad impressions dropped 20%, and Android eCPM decreased by 28% in 2022.
• Android IAPs up 37%, India tops in-app installs; developers shifting to hybrid models.

The post As hyper falls, hybrid models emerge in mobile gaming app economy appeared first on Business of Apps.

Delisted apps can pose a risk to consumer privacy and the overall quality of the app ecosystem. Even after being removed from the app stores, these apps may still be installed on users’ devices and continue to collect personal information. Additionally, advertising revenue directed towards these apps can incentivize and perpetuate privacy risks. Now a new report by fraud protection platform Pixalate analysed delisted apps on the Roku and Amazon Fire TV app stores to examine the characteristics of the apps.

54% rise in delisted apps

Over 2,000 apps were delisted from Roku (1.9k+) and Amazon Fire TV (28) in Q1 2023. This represents a 54% increase YoY from Q1 2022.

Pixalate’s analysis also revealed that VlogBox, Inc. was the developer of 664 of the delisted Roku apps, while OKKO developed 411 delisted Roku apps. Additionally, 250 (12%) of all delisted Roku and Amazon Fire TV apps included “Screensaver” or “Wallpaper” in the app title.

Delisted apps pose a risk to consumer privacy and the overall quality of the app ecosystem. Pixalate believes that benchmarking this metric is essential because advertising revenue directed towards these apps can incentivize and perpetuate privacy risks. In total, $3.3 million in estimated ad spend was directed towards delisted apps, all of which occurred on delisted Roku apps. No advertising was observed on delisted Amazon Fire TV apps.

Amazon Fire TV app

Source: Shutterstock

What it means for user privacy?

The findings of Pixalate’s analysis underline the importance of transparency and privacy compliance in the app ecosystem. As privacy violations and transparency concerns were found to be the primary reasons why apps are delisted, the analysis suggests that developers who fail to comply with regulations related to data privacy and advertising transparency are likely to have their apps removed from the app stores.

The report provides valuable insights into how app developers can improve their compliance practices to avoid delisting and ensure the protection of user privacy.

Firstly, developers can add comprehensive privacy policies that clearly explain what data is being collected, how it is being used, and with whom it is being shared. Privacy policies should be easily accessible and prominently displayed within the app.

Secondly, developers should implement robust transparency practices to provide users with greater control over their data. This could include offering users the option to opt-out of data collection and sharing, as well as providing clear and concise explanations of how data is being used within the app.

Thirdly, they should stay up-to-date with the latest privacy regulations and guidelines in their region and ensure that their apps comply with these regulations. This could include complying with data retention policies, obtaining explicit consent from users before collecting and using their data, and implementing appropriate data security measures to protect user information.

Key takeaways

1. 2,000+ apps delisted from Roku and Amazon Fire TV
2. 54% YoY increase in delisted apps from Q1 2022
3. $3.3 million estimated ad spend on delisted apps

The post Delisted apps pose risk to consumer privacy and app ecosystem quality appeared first on Business of Apps.

The first quarter of 2023 saw an overwhelming majority (92%) of mobile game advertisers release new creatives. This equates to nearly 50,000 advertisers in the mobile gaming space who introduced fresh ad content during this period, finds ad intelligence company SocialPeta. Video ads accounted for 83% of all ad creatives during the quarter, while Image, Playable, and other ad types accounted for 14%, 2%, and 1% respectively.

Android accounts for most creatives

The report highlighted a staggering number of new ad creatives in the mobile gaming ecosystem were released for the same period, reaching a total of 7.80 million. This represents 67% of all ad creatives placed in the quarter. It indicates the mobile gaming industry’s continued growth and dominance in the digital advertising world.

There was a notable surge in the number of Android creatives during the first quarter of 2023. Android creatives accounted for 70% of all ad creatives, while iOS creatives made up the remaining 30%. This suggests that the Android platform is becoming increasingly popular for mobile game advertising, perhaps due to its wider user base or other factors such as more accessible app development tools.

Android (green) accounted for more ad creatives than iOS (blue)

Source: SocialPeta

The shift towards Android could have significant implications for advertisers looking to reach mobile gaming audiences, as they may need to adjust their strategies accordingly to ensure they are effectively targeting their desired audience.

Casual dominates gaming industry

Casual games dominated the mobile gaming industry in the first quarter of 2023, ranking top for the number of advertisers and creatives. The genre experienced a year-over-year increase of 2.29% in the number of advertisers and 12% in the number of creatives.

Following Casual were Puzzle, Simulation, Action, RPG, Casino, Arcade, Strategy, Card, and Adventure categories, respectively, indicating a wide variety of genres that are attracting mobile game advertisers.

Casual games dominate ad creatives

Source: SocialPeta

In terms of the number of creatives, the genres that saw the most activity in Q1 were Puzzle, RPG, Simulation, Strategy, Action, Casino, Card, Arcade, and Adventure. This suggests that advertisers are exploring a broad range of genres to reach and engage with mobile gaming audiences. The report’s findings indicate that the mobile gaming industry is continuing to grow, with an increasing number of advertisers and creatives being developed to target this growing market.

Interestingly, North America led the pack in terms of the average number of monthly mobile game advertisers during Q1, with an average of 12.7K advertisers. This figure represents a 31% increase over the second region on the list, Europe.

However, in terms of the average monthly creatives per advertiser, Hong Kong, Macao, and Taiwan topped the list with an average of 239 creatives per advertiser, followed closely by Japan & South Korea with 230 creatives and Southeast Asia with 222 creatives. This suggests that mobile game advertisers in these regions are actively developing a large volume of new creatives to target their audiences.

Key takeaways

• Mobile game advertisers released 7.8m new ad creatives in Q1 2023
• Video ads account for 83% of all ad creatives
• Casual games dominate mobile gaming ad creatives

The post 92% of mobile game advertisers released new creatives in Q1 appeared first on Business of Apps.

With the growing popularity of mobile apps, the number of malicious apps that can harm users’ devices or steal their data has risen. To combat this issue, Google has been investing in machine learning systems and app review processes to identify and prevent policy-violating apps from being published on Google Play. Google recently announced that it prevented 1.43 million policy-violating apps from being published on Google Play in 2022. 

How Google prevents ad-fraud

Google has been hard at work to combat malicious developers and fraud rings, banning 173,000 bad accounts and preventing over $2 billion in fraudulent and abusive transactions. To ensure that the Play ecosystem remains safe for users, Google raised the bar for new developers to join by introducing phone, email, and other identity verification methods. This has resulted in a reduction of accounts publishing violative apps.

Google also partnered with SDK providers to limit sensitive data access and sharing, thereby enhancing the privacy posture for over one million apps on Google Play. 

The company prevented 500,000 submitted apps from unnecessarily accessing sensitive permissions over the past three years through strengthened Android platform protections and policies.

New tools supporting developers

In an effort to build trust with developers, Google has made a concerted effort to provide the tools, knowledge, and support necessary for developers to create secure and trustworthy apps that prioritize user data security and privacy.

To that end, in 2022, Google launched the App Security Improvements program to help developers fix approximately 500,000 security weaknesses affecting around 300,000 apps with a combined install base of approximately 250 billion installs. This program was designed to help developers build better apps by identifying and addressing vulnerabilities and improving overall security.

Google app security efforts

Source: Google

To fight fraudulent and malicious ads, Google updated its ad policy for developers, providing guidelines that improve in-app user experience and prohibit unexpected full-screen interstitial ads. Google Play Store also launched a data safety section last year to enhance transparency in data collection and sharing practices. 

The store became the first commercial app store to display a badge for any app that has completed an independent security review through App Defense Alliance’s Mobile App Security Assessment, which leverages OWASP’s Mobile Application Security Verification Standard. Additionally, the App Defense Alliance expanded its membership to reduce app-based malware risks.

For Pixel users, Google added more powerful security and privacy features to keep them safe. The security and privacy settings launched for all Pixel devices running Android 13, and Private Compute Core allows Pixel phones to detect harmful apps in a privacy-preserving way.

Key takeaways

• Google prevented 1.43 million policy-violating apps from being published on Google Play in 2022
• It implemented measures such as identity verification, platform protections, and ad policy updates to combat ad fraud and malicious developers
• It launched initiatives such as the App Security Improvements program and the data safety section to support developers and enhance transparency for users

The post Google blocks 1.43 million policy-violating apps on Play Store appeared first on Business of Apps.

The mobile application industry is witnessing a significant surge in in-app advertising demand, as per a recent survey. The increase has been linked to the rising usage of mobile apps and the shift in consumer shopping behaviour following the COVID-19 pandemic. In-app advertising has now emerged as a crucial revenue stream for app creators and marketers who aim to promote their products and services to their target audience.

The value of in-app ads

App marketers are leveraging the power of AI and machine learning to identify relevant users and create targeted in-app ad campaigns that yield better results, according to research by GoodFirms, a B2B ratings and reviews platform.

The study emphasizes that such insights and contextual targeting mechanisms could be invaluable to marketers as they strive to reach their desired audience more precisely through in-app advertising.

The study delves into the three most popular app monetization models, namely in-app purchases, subscription models, and in-app advertising, highlighting how the latter is increasingly becoming a preferred revenue-generating option for app creators.

The research also sheds light on the different types of in-app ad formats that users commonly encounter. For instance, skippable in-stream video ads are seen by around 85.2% of users, while 52.4% of users come across non-skippable in-stream video ads. 

In-app ad types most frequently encountered

Source: GoodFirms

Banner ads are found to be the most prevalent form of in-app advertising, with 86.7% of users encountering them. Additionally, 39.1% of users are primarily exposed to interstitial ads, and 23.9% of users come across native ads. 

These findings highlight the diverse nature of in-app advertising formats and their varying degrees of effectiveness in reaching out to the target audience.

Over half of users find in-app ads useful

In-app ads offer multiple benefits such as improved targeting, higher click-through rates, better user engagement, and revenue growth.

56.5% of app users download apps that are recommended through in-app ads. Additionally, 42.6% of smartphone users have made purchases after clicking on in-app ads, and 29.5% of users prefer watching rewarded in-app videos.

Over half (52.8%) of app users find in-app advertisements useful, while 56.7% of mobile app users consider in-app ads informative.

Usefulness of in-app ads

Source: GoodFirms

However, the report also indicates that 46.3% of respondents find in-app advertising unwanted, and 36.7% believe that in-app ads are annoying and often irrelevant. Interestingly, around 53.9% of app users watch ads because they prefer not to pay for the ad-free version.

66% of users will skip video ads

Source: GoodFirms

Some of the top trends in in-app advertising include an increased focus on personalization, prioritizing privacy concerns, a rise in the use of native ads, the incorporation of augmented and virtual reality, the implementation of Artificial Intelligence, fast in-app adverts, a shift from Google Play Store to Apple Store, in-app bidding, and an overall increase in in-app spending. By keeping up with these trends, publishers and marketers can stay ahead of the curve and effectively target their audience.

However, the report also identifies some significant challenges for publishers and marketers. They include viewability and fraud concerns, the growing use of ad blockers, the need to deliver the marketing message within a limited time, data privacy issues, and increasing competition. 

By addressing these challenges, publishers and marketers can optimize their in-app advertising strategies and improve their chances of success in this highly competitive market.

Key takeaways

• 56.5% of app users download recommended apps and 42.6% make purchases after clicking on in-app ads
• Over half of app users find in-app ads useful, but 46.3% find them unwanted and 36.7% believe they are annoying
• Top trends in in-app advertising include personalization, privacy concerns, native ads, AR/VR, AI, and a shift from Google Play Store to Apple Store

The post App-timizing revenue: 57% of users download apps recommended by in-app ad appeared first on Business of Apps.

As concerns about data privacy and security continue to mount, many Americans are left wondering just how pervasive Chinese apps are in the United States. Despite these concerns, a number of Chinese apps have continued to gain a significant following, with millions of Americans using them on a daily basis.

Charting success

According to recent data from app experts Apptopia, only 10 out of the 500 most downloaded apps so far in 2023 are from Chinese companies. However, what is perhaps more concerning is that four of these Chinese apps are in the top five. These apps have become almost household names at this point, with Temu, TikTok, CapCut, and Shein all enjoying massive popularity among American users.

CapCut, a popular video editing app among TikTok creators, is owned by Bytedance, the parent company of TikTok itself. Meanwhile, Shein, a fast-fashion giant known for its low prices and trendy clothing, has been expanding its inventory in an effort to compete with Amazon. The company recently moved its headquarters to Singapore.

Another Chinese app that has gained traction in the United States is Temu, an e-commerce platform owned by Pinduoduo. The app offers a wide range of products at rock-bottom prices and has quickly gained popularity among American consumers.

Despite concerns about data privacy and security, these apps continue to be popular among users. In 2021, four Chinese apps made it into the top 50 most downloaded apps in the United States, with only one of them ranking in the top five. In 2022, there were three Chinese apps in the top 50, with TikTok holding onto its position as the #1 app for both years.

Few US apps in the US top ranks

It’s quite remarkable that, in a country where tech giants Apple, Google, and Meta dominate, only one of them has an app in the top five most downloaded apps this year. Meta’s Instagram comes in at #4. This highlights the growing strength of Chinese app development on a global scale, as well as their ability to compete and succeed against top American talent.

Chinese apps are leading download charts in the US

Source: Apptopia

When it comes to generating in-app purchase revenue, Chinese companies own 36 of the top 500 grossing apps in the US this year, with every app except for TikTok being a mobile game. Looking at the same statistics for average monthly active users (MAUs), Chinese companies hold 16 of the top 500 apps. TikTok, WeChat, CapCut, and Temu rank within the top 25, while the other 12 are further down the list.

Conversely, only 19 out of the 500 most downloaded apps in China this year are from American companies, based solely on iOS data since Google Play does not operate legally in China. It would be interesting to know if there are similar security concerns with apps like Instagram or Google Maps in Chinese media.

As for Lemon8, the app had a brief stint at the top of the iOS App Store but downloads are declining. Since its launch in late March, the app has been installed around 1.2 million times in the US.

As the debate over data privacy and security continues to unfold, it remains to be seen how these Chinese apps will fare in the United States and around the world.

Key takeaways

• 4 out of the top 5 most downloaded apps in the US are owned by Chinese companies
• Chinese companies own 36 of the top 500 grossing apps and 16 of the top 500 apps in terms of monthly active users
• Only 19 out of the 500 most downloaded apps in China this year are from American companies

The post Chinese apps gain popularity in the US despite data privacy concerns appeared first on Business of Apps.

As Google prepares for its annual I/O developer conference in May, the tech giant has been spotted testing a new Play Store ad slot that could expand its search ads business. The move would offer developers access to new, prime real estate for their app marketing efforts.

Personalised suggestions

This latest development comes two years after Apple added a new ad slot on its Search tab, moving beyond its previous placement at the top of search results. In a similar move, Google is now testing an ad slot that appears when Android users navigate to the Play Store’s search menu and enter keywords to find apps.

Android Police, an Android news site, first spotted the test and reported that Google had been using the slot for app “recommendations” since late last year. However, Google clarified that these were not ads, but rather personalised suggestions.

The new feature is not yet widely available, suggesting that Google is testing it. A Google spokesperson confirmed the experiment, noting that the company regularly tests new features on the Play Store, but didn’t offer any further information about the test, which may indicate that Google is keeping it under wraps until a planned announcement or has yet to determine when it will launch publicly.

Major boost to ad revenues

The move comes as Google looks for new ways to generate revenue from the Play Store ads, particularly since it reduced commissions due to new regulations and pressure from lawmakers. 

The company has since rolled out third-party billing options in global markets, offering developers lower fees if they use alternative billing services. Some companies, such as Spotify and Bumble, have already signed up for the program. Finding new ways to make money from the Play Store ads could help Google offset the impact of these reduced commissions and support its bottom line.

Google Play Store testing new feature

Source: Twitter

The potential introduction of new Play Store search ad slots could have a significant impact on Google’s revenues. While Google hasn’t disclosed the size of its Play Store Ads business, it’s likely to be a considerable figure. According to Statista, Google Play generated approximately $48 billion in revenue through mobile apps in 2021. 

If Google decides to roll out the new Play Store ad slot, it could provide a major boost to the company’s ad revenue by offering developers access to a new, more prominent location for their app promotions. This development underscores the fierce competition between Google and Apple to capture a larger share of the app advertising market.

Key takeaways

• Google is testing a new Play Store ad slot for app marketing efforts
• The feature is not yet widely available, indicating that it is still being tested
• Google is looking for new ways to generate revenue from the Play Store ads

The post Google Plays around with new ad slot in Play Store search appeared first on Business of Apps.

Fireside, a popular interactive entertainment app backed by billionaire investor Mark Cuban, has announced the successful completion of its Series A funding round, securing a whopping $25 million in investments. This brings the company’s post-money valuation to an impressive $138 million, up from the rumoured $125 million estimate reported last year. 

So what is Fireside?

Fireside has gained significant traction by attracting numerous high-profile creators to its streaming platform for live and virtual shows. Recent investor updates point to the addition of new strategic investors, including the likes of socialite and entrepreneur Paris Hilton. 

The company has also unveiled its cutting-edge interactive streaming technology for smart TVs, providing users with an immersive and engaging entertainment experience.

While the app has been compared to other platforms such as Twitter Spaces or Clubhouse, these comparisons have proven to be far from accurate. Fireside has distinguished itself from its peers by focusing on interactive video streaming, allowing its users to record, save, and even simulcast their shows to other social networks.

Fireside app lets users comment on shows

Source: Fireside

Moreover, Fireside’s app boasts a range of audience engagement tools and other features that assist creators with various aspects of content production. That includes promotion, editing, measurement, distribution, monetization, and audience growth. These end-to-end content production capabilities provide a comprehensive solution for creators who wish to establish and expand their presence in the world of interactive entertainment.

Expanding reach

Fireside plans to use some of the funding to roll out its groundbreaking interactive technology to a wider audience, including smart TVs, Fire TV, Apple TV, and Roku. The company’s innovative approach will allow viewers to watch content on their big screen while engaging with it via their phones. Their comments and feedback are then displayed on the TV for an even more immersive experience.

Acquiring the streaming TV platform Stremium last year boosted Fireside’s plans to become the ultimate platform for creators, celebrities, brands, and IP owners to showcase their content on a global scale. The deal was strategically designed for this purpose.

In addition to the exciting news surrounding its funding and valuation, Fireside’s recent investor update highlighted the immense revenue-generating potential available to talent, brands, and IP owners who utilize the platform. According to the update, these creators can expect to earn a minimum of $35 million in annual recurring net new revenue stream during their first year on Fireside.

The platform has also achieved impressive results in terms of early engagement, with streams generating a minimum of $100K within just a few hours of their launch. Creators have a range of monetization options available to them, including selling tickets or incorporating advertising into their shows.

Key takeaways

• Fireside completed a $25 million Series A funding round
• App focuses on interactive streaming and provides end-to-end tools to aid creators
• Plans to expand to a wider audience, including smart TVs, Fire TV, Apple TV, and Roku

The post Lights, camera, interaction! Fireside confirms Series A to boost immersive entertainment app appeared first on Business of Apps.

According to a recent study conducted by Usercentrics, a leading Consent Management Platform (CMP) provider, a staggering 90% of mobile games are not in compliance with privacy regulations. This means millions of gamers around the world have no control over how their personal data is collected, stored, and used. 

Data without the consent

Based on an analysis of 269 leading iOS and Android games with over 150k active users, a vast majority of mobile games in North America (~86%) and EMEA (~94%) collect users’ personal data without acquiring consent. This discovery suggests that both the European Union’s General Data Protection Regulation (GDPR) and ePrivacy Directive are being violated.

“Despite the threat of large fines for noncompliance and consumers’ increasing desire to have control of their personal data, it’s clear from the study that most mobile game developers are still putting profit over privacy,” said Valerio Sudrio, Global Director of Apps Solutions at Usercentrics.

“The app stores, ad networks and premium brand advertisers are pushing the industry towards an inevitable consent-based future, and developers and publishers need to realize that compliant data (personal data + consent) will be their most valuable asset going into that future.”

Percentage of mobile games failing to provide user consent 

Source: Usercentrics

The study reveals that mobile game developers aren’t keeping up with the wider shift in the mobile industry towards a consent-driven strategy for data collection. For example, Apple implemented its ATT in 2020, allowing users to have greater control over their privacy and data. Similarly, Google is in the process of developing its own system. In addition, securing user consent is critical for generating revenue, as 40% of players stated they would remove a game if they had worries about their data privacy.

Users take privacy seriously

However, based on previous research, around 40% of users will delete an app if they have app privacy concerns about it and 66% of consumers would stop supporting a company involved in a data breach. A whopping 80% of consumers would stop purchasing from companies they believe do not adequately protect their personal data and 84% are more loyal to those that do. Almost all consumers are happy to share their data with a company they trust. So why aren’t game developers following suit?

A possible explanation as to why most mobile game developers and publishers have not implemented a consent-based approach may be their apprehension that it could have a detrimental impact on their games’ revenue. Following the implementation of Apple’s ATT, there has been a 55% surge in in-app advertising on Android, while iOS declined 2%.

Surge in in-app ads on Android

Source: Usercentrics

Nonetheless, as premium brands and ad networks increasingly prioritize utilizing only compliant data, game developers must adopt a consent-driven strategy to safeguard their monetization plans for in-app advertising (IAA) in the long run.

Key takeaways

• 90% of mobile games aren’t compliant with privacy regulations
• Majority of mobile games in North America (~86%) and EMEA (~94%) collect users’ personal data without acquiring consent, violating privacy rules
• Mobile game developers need to adopt a consent-driven strategy for data collection to safeguard their monetization plans for in-app advertising

The post Game over for data privacy? 90% of mobile games fail to comply with regulations appeared first on Business of Apps.

ByteDance, a major technology company based in China, is promoting a new social media application called Lemon8 in the United States. This move comes as the company’s flagship app, TikTok, is facing the possibility of being banned in the US. However, analysts believe that introducing a new app as a replacement for TikTok may not be the most effective solution for ByteDance’s business strategy. 

What’s Lemon8?

In March, ByteDance extended an invitation to creators to join its upcoming social media platform, Lemon8, which is intended to follow in the footsteps of its successful sister app, TikTok. 

Lemon8 has been likened to a hybrid of Instagram and Pinterest, and was originally launched in Japan in early 2020 with a focus on health, wellness, and beauty. 

Since then, the app has gained significant traction in the US, rising in popularity to become the country’s second most downloaded lifestyle app over the past 30 days, overtaking real estate platform Zillow and trailing only behind Pinterest. With a total of 17 million global downloads since its inception, Lemon8 has become a noteworthy player in the world of social media.

Lindsay Gorman, a senior fellow for emerging tech at the German Marshall Fund, found the timing of the launch of Lemon8 peculiar as it appears to position itself to become a potential alternative to TikTok.

Lemon8 is said to be using similar algorithms that are either identical to or share similarities with those utilised in TikTok’s recommendation engine, which plays a vital role in the popularity of the app.

Crunch time for ByteDance

The growing popularity of Lemon8 coincides with ongoing deliberations by US lawmakers on whether ByteDance should divest its stake in the popular short video app, which has recently faced significant scrutiny. 

In March of this year, TikTok’s CEO, Shou Zi Chew, appeared before Congress to address concerns about the app’s potential ties to Chinese interests, but this questioning did not quell lawmakers’ anxieties. 

Source: Lemon8

According to experts, ByteDance’s aggressive promotion of Lemon8 may be viewed as a strategic move aimed at expanding its foothold in diverse consumer markets and segments, offering image-based and long-form written content as an alternative to its traditional short-form videos.

A marketing incentive to move creators from TikTok to Lemon8 could be deliberate in case of a TikTok ban in the US. But that’s not to say, Lemon8 won’t face scrutiny from lawmakers too. 

Key takeaways

• ByteDance extended an invitation to creators to join its upcoming social media platform Lemon8
• The platform may be ntended to follow in the footsteps of its successful sister app TikTok
• The app gained significant traction in the US where TikTok may be banned

The post ByteDance pushes Lemon8 app as TikTok faces US ban appeared first on Business of Apps.

Data.ai an app analytics company, just released its Q1 Rankings Report, revealing that global consumers now spend an average of 5.5 hours per day on mobile apps in 2023, up from 5.4 hours in Q1 2022. But what apps are they spending their time on? Let’s take a closer look at the mobile usage trends from Q1 2023.

Save, save, save

As consumers navigate an uncertain economic landscape marked by high-interest rates, macroeconomic headwinds, and rising inflation, they are increasingly turning to apps that offer deals and savings. These include apps that help users save money on goods and services.

According to the report, the breakout apps that have captured consumer attention include:

• Secondhand marketplaces – Vinted (ranked #4 by breakout downloads in the UK) offers a platform for buying and selling affordable goods.
• Fast-fashion and cheap goods – SHEIN (ranked #3 in the US and #4 in the UK) and Temu (ranked #1 in the US) employ mobile-native techniques, including social media interfaces, influencer-style marketing, and gamification features.
• Budget-friendly travel – Fly Bonza (ranked #2 in Australia) is a mobile-only low-cost airline app, while Hopper (ranked #5 in the US and #9 in Singapore) helps users find the most cost-effective times to fly.

Don’t skimp on entertainment

As consumers face tighter budgets, they’re still willing to splurge on entertainment. In fact, TikTok takes the top spot for breakout consumer spending in Q1 2023 YoY, as users increasingly support their favourite creators through the app’s tipping feature. Even with its ban in India, TikTok was a universal favourite in the markets analysed, ranking in all other markets. The app took the #1 spot for app store spend in the UK, France, Germany, Indonesia and the US.

Top non-gaming apps for consumer spending

Source: data.ai

Alongside the surge in entertainment spending, other notable areas of growth in the mobile app industry include language learning, video streaming, comics and anime, and fitness. 

Language learning apps such as Duolingo and Babbel have seen a rise in subscriptions as consumers prepare for a year of travel. 

In the video streaming category, services like HBO Max, Disney+, Paramount+, DAZN, and ESPN have shown strong growth in subscriptions. 

Meanwhile, piccoma, LINE Manga, and Crunchyroll have emerged as leading apps for comics and anime enthusiasts, with piccoma ranking second only to TikTok for absolute growth in app store spend. 

Calorie-counting apps have also proven popular in Germany, the UK, and the US, as consumers turn to premium subscriptions to help achieve their fitness goals.

Gaming spending tightens

In the face of economic challenges, consumers are being cautious with their spending, including mobile game app store purchases. However, Q1 2023 has seen some diverse titles experiencing revenue booms, suggesting that there is still room for growth in this market.

According to data.ai’s Q1 Rankings Report, there has been no further decline in mobile games app store spending, which had seen its first-ever reduction in 2022 with a 5% YoY decrease. Instead, consumer spending has remained relatively stable YoY.

Gardenscapes, the popular title by Playrix, has accelerated its user acquisition (UA) with an effective strategy that has driven both paid ads and organic downloads boost. This tactic has resulted in a surge in in-app purchases from both new and returning users.

Top game apps for consumer spending

Source: data.ai

Royal Match has also increased its paid downloads, with the US remaining the top market for downloads and consumer spending. The $1.99 mini coin package was the most popular iPhone purchase in the US, representing over 40% of all in-app purchases in Q1 2023.

Lastly, soccer interest remained high in Q1 2023 with the 2023 updated season of FIFA Soccer. FIFA Mobile made India, Indonesia, and Singapore breakaway leaders in consumer spending growth, in addition to FIFA Soccer in South Korea.

Key takeaways

• Customers increasingly turn to apps offering deals and savings
• TikTok takes the top spot for breakout consumer spend in Q1 2023 YoY
• Other notable areas of growth in the mobile app industry include language learning, video streaming, comics and anime, and fitness

The post Money-saving apps thrive amid economic struggle appeared first on Business of Apps.

The subscription-based revenue model has become increasingly popular among app developers in recent years, with users opting for monthly or annual payment plans for access to premium features or content. However, the payment process can be complex, and payment failures are a common issue that app developers have to deal with. Now Apple has unveiled a new feature designed to alleviate the burden placed on app developers in resolving subscription billing issues. 

What are the changes?

Currently, when a payment method fails, app subscribers often seek assistance from developers, who are not responsible for billing issues as they are managed by Apple. Consequently, developers must identify the issue and guide the user to proceed to use the app, resulting in a prolonged back-and-forth process.

However, with Apple’s new feature, users will receive prompts within the app, eliminating the need for developers to intervene in this prevalent issue.

Apple announced that the feature would display a warning message in a system-provided sheet within the app, alerting customers to update their payment method linked to their Apple ID. 

The sheet will notify users of a problem with their current payment method and recommend an update to avoid any disruption in their subscriptions and purchases. Users will be prompted to click on the “Continue” button at the bottom of the screen to proceed with updating their payment method, which may involve entering a new credit card’s expiration date. 

Alternatively, they can switch to a new card by clicking on the “Add Payment Method” option. 

What the changes mean for users and developers

This new feature is expected to simplify the payment process for users, enabling them to manage their subscriptions with ease while eliminating the need for developers’ intervention in billing issues.

The best part about the new payment feature is that developers won’t need to make any changes on their end to support it. The feature will roll out automatically sometime this summer. However, developers can familiarize themselves with the new system in a sandbox environment, where they can simulate billing issues and observe how the system responds. Additionally, developers can choose to suppress the prompts by using messages and displaying them in StoreKit.

System-provided sheet

Source: Apple

The new payment system is an addition to other subscription-based features by Apple, such as payment retries and a Billing Grace Period. The latter enables customers to continue accessing their subscriptions while Apple tries to collect the payment. Together, these features enhance the subscription billing process, providing a more seamless experience for both developers and users.

The new payment feature from Apple is expected to benefit both consumers and developers by simplifying the process of updating payment methods, freeing up developers’ time to focus on more technical issues. This feature is especially useful for smaller developers who want to eliminate the hassle of subscription management. 

Key takeaways

• Apple launches feature to unburden app developers from resolving subscription billing issues
• Users will receive prompts within the app showing their current payment methods
• New feature to simplify payment process

The post Apple takes a bite out of subscription woes with new payment feature appeared first on Business of Apps.

In response to an antitrust intervention by the UK’s Competition and Markets Authority (CMA), Google has put forward a proposal that would grant developers offering apps through its UK Play mobile app store the freedom to utilise alternative payment processors for in-app transactions. This would provide an alternative to the company’s proprietary billing system, which currently serves as the sole option.

What are the changes?

According to an enforcement update by the regulator, Google’s proposed commitments would allow app developers to exercise greater autonomy in selecting their preferred billing system, either through a “Developer-only Billing” (DOB) option or by presenting users with a choice between alternative billing solutions and Google Play’s existing billing system, referred to as “User Choice Billing”.

The CMA has initiated a consultation period regarding Google’s proposal, which it has expressed a positive inclination to accept. Interested parties, including developers, are invited to provide input by May 19th. Following a review of the responses, the CMA will make a determination on whether to accept the proposed commitments and thereby bring an end to the case.

What the changes mean for developers

As part of the proposed commitments, developers can incorporate an alternative in-app billing system in addition to Google Play’s billing system for their mobile and tablet users in the UK. Upon reaching the checkout phase, users can select their preferred billing system. These alternatives will be presented in an impartial manner, empowering users to make informed and thoughtful decisions.

Developers can also choose not to offer Google Play billing at all. 

Source: gov.uk

The proposed UK plan would expand the availability of alternative billing systems that Google already provides in the EEA.

As part of its UK initiative, Google intends to reduce the “service fee” it levies on developers for in-app digital transactions by 4% per transaction if the developer provides users with a choice that includes Google Play Billing but the user opts for an alternative billing system. 

However, if developers decide not to use GPB, the reduction in Google’s cut is slightly lower at 3%, implying that the company is incentivising developers to maintain the availability of its own payment processing technology for users.

Google has clarified that developers must fulfil the requisite user protection standards for both payment options and that the service fees and terms will remain unchanged to sustain its investments in Android and Play. The company also intends to gradually implement the proposed commitments, citing the need to make the requisite adjustments to its systems. 

Initially, these options will be available to non-gaming app developers and then extended to gaming app developers no later than October 2023.

Key takeaways

• Google has put forward a proposal that would grant developers  alternative payment processors for in-app transactions
• Interested parties, including developers, are invited to provide input by May 19th
• On checkout users can select their preferred billing system

The post Google offers alternative payment options to UK app developers appeared first on Business of Apps.

Simulation games are the most cost-effective in terms of user acquisition, with a cost of $0.59 per install according to a new report from Liftoff, the growth acceleration platform. By comparison, lifestyle games are significantly more expensive with a cost of $1.32 per install, which is more than twice the cost. 

Simulation games are cheapest

User acquisition costs are a significant factor in the mobile gaming industry, as acquiring new users is essential for the success of a game. At just $0.59, simulation games are the best deal per install.

Despite the higher cost, lifestyle games had a comparable return on investment after seven days, with an 8.3% return, compared to 8.5% for simulation games.

From 2022 to 2023, the overall average CPI was around $1. Android users are still significantly cheaper to target than iOS users at an average of $0.63 compared to $2.23, respectively.

Android has lowest CPI

Source: Liftoff

However, seven-day ROAS rates were similar on the platforms with iOS offering a slightly better return on day seven at 7.8% compared to 7% on Android.

But hyper casuals drive installs

Although their popularity has decreased, hyper casual games continue to be the most prominent catalyst for game installations across all categories, accounting for 32.3% of total installs. Puzzle games closely follow at 31.3%. Other noteworthy genres that drive approximately 9% of total installations each include simulation and lifestyle games.

Total download market share for the hyper casual genre has fallen from 50% in Q1 2021 to just over 30% in Q1 2023 because of the impact of IDFA on monetisation models. 

Hyper casuals lead for installs

Source: Liftoff

“As consumer spend continues to fluctuate, mobile game marketers and developers are focusing less on scaling quickly and more on steady revenue growth,” says Joel Julkunen, Head of Analytics at GameRefinery, a Liftoff company.

“To succeed in this climate, it’s important to tap into revenue-driving trends that are proving to be a hit with casual gamers. By adopting the latest trends, such as hybrid elements and competitive events, casual game developers can continue to boost engagement and retention while providing enticing opportunities for advertisers.”

North America boasts the highest average cost per install (CPI) by a considerable margin, standing at $3.59, which is more than triple the CPI for Europe, the Middle East, and Africa. However, it also records the highest day 7 return on ad spend (D7 ROAS) at 8.1%. In contrast, Latin America has the lowest CPI, with just $0.55 per install. Despite this, it records the lowest D7 ROAS at 4.8%.

Key takeaways

• Simulation games are the most cost-effective in terms of user acquisition at $0.59 per install 
• Android users are significantly cheaper to target than iOS users at an average of $0.63 compared to $2.23, respectively
• Hyper casuals account for 32.3% of total installs

The post Simulation games are most cost-effective for user acquisition appeared first on Business of Apps.

While Instagram has long been the dominant platform for influencer marketing efforts, there is a new kid on the block that’s rapidly gaining ground – TikTok. With its short-form videos and vast user base, TikTok is projected to become the second-highest-ranking platform in terms of marketing spend in the coming year. As brands seek to engage younger audiences and stay ahead of the competition, they are increasingly turning to TikTok and its vast pool of creators to amplify their marketing efforts. Now Emplifi, the leading customer engagement platform, has taken a closer look at the influencer landscape on Instagram to discern the most important trends.

Everyone’s influencing on Instagram

Instagram remains the go-to platform for influencers, with 90% actively using the app to reach their followers. TikTok is the second most popular platform for influencers, with 66% actively creating content on the app. However, Twitter and Pinterest appear to be falling behind, as only 4% of influencers see these platforms as a potential opportunity for brand partnerships.

Sponsored content remains a significant part of the influencer industry, with 7% of influencer posts being sponsored. The holiday season sees a peak in sponsored content. Although year-over-year data shows a slight decrease in sponsored posts, likely due to marketing budget cuts.

Majority of influencers use Instagram

Source: Emplifi

Interestingly, the study also revealed that the larger the influencer, the less frequently they share sponsored content on Instagram. On average, XS influencers (with 10,000 followers or less) post 67% more sponsored content than XL influencers (with 1 million followers or more) and L influencers (with 100,000 to 1 million followers) on Instagram.

In terms of content format, XL and L influencers seem to be heavily leaning into short-form video content on Instagram, sharing 27% more video content on average than S and XS influencers. As the influencer industry continues to evolve, understanding the nuances of platform preferences and content formats among influencers of different sizes will be crucial for brands looking to engage with their target audience.

But it’s all about Reels

Despite the relative stagnancy of branded Instagram Reels in 2023, there has been a significant increase in the number of Reels posted by brands and celebrities in the first quarter of the year. In fact, compared to the same period in 2022, there has been a remarkable 241% increase in Reels content.

Notably, the study by Emplifi reveals that in Q1 2023, XL and L influencers were more inclined towards video content on Instagram, sharing 27% more video content on average than S and XS influencers. This shift towards video content could be attributed to the availability of resources, as creating video content typically requires more time, effort, and budget than static content.

Sponsored content on Instagram

Source: Emplifi

As social media continues to evolve and become increasingly saturated with content, brands and influencers alike will need to find new and innovative ways to engage with their audience. With the rise of short-form video content, it’s no surprise that brands and influencers are investing more in this format to capture the attention of their followers.

The industries that benefit most from influencer content revealed

Interestingly, healthcare brands have the potential to expand their reach significantly by collaborating with influencers, with the potential to increase their reach by up to 18x their current level. This holds true for companies specialising in medical products such as eyewear, medtech, and medication. Notably, influencers achieve approximately 5x more audience engagement (likes, comments, shares, etc.) on their average posts compared to those of healthcare brands, making influencer collaborations an effective tool for boosting the effectiveness of healthcare brand campaigns.

Accommodation brands can also greatly benefit from partnering with influencers. Emplifi’s data reveals that these brands have the potential to expand their social media reach by up to 18x and achieve 4.2x more audience engagement compared to their current performance.

Industries with the most efficient influencer cooperation on Instagram

Source: Emplifi

In the beauty industry, where influencer marketing has been well-established, influencer campaigns have proven to be highly effective. Beauty brands that run influencer marketing campaigns can win 14x the reach and 3.2x the engagement compared to non-influencer campaigns. As influencer marketing continues to gain traction across industries, it is important for brands to understand the unique opportunities and challenges associated with each industry, and to tailor their influencer marketing strategies accordingly.

Key takeaways

• 90% of influencers use Instagram followed by TikTok 
• 241% increase in Reels content
• Healthcare brands can achieve some of the highest reach through influencer marketing

The post Insta still rules but TikTok nips at heels in battle for influencer marketing crown appeared first on Business of Apps.

Despite a slowdown in the digital advertising market this year, TikTok is poised to continue its upward trajectory. According to a recent report from WARC, the popular social media platform’s two-year growth is projected to carry into 2023, with ad revenue expected to surge by 53%, reaching an impressive £15.2bn. 

Growing recognition

As media fragmentation continues to pose challenges for marketers, TikTok has emerged as a clear winner in terms of ad investment. 

All categories are expected to increase their ad spend on TikTok in 2023, including industries such as automotive and soft drinks that are forecasted to see an overall decrease in ad spending. This suggests that TikTok has become a go-to platform for advertisers looking to maximize their reach and engagement in an increasingly fragmented media landscape. As such, it’s likely that TikTok will continue to play a major role in shaping the future of digital advertising.

The report underscores the increasing recognition of TikTok’s potential as a marketing platform. The report found that 75% of marketers plan to increase their ad spend on the platform this year, demonstrating that TikTok has become an essential component of many brands’ marketing strategies. With its massive user base, unique algorithm, and engaging interface, TikTok is poised to remain a major force in both popular culture and digital marketing.

Marketers to boost ad spend with TikTok

Source: WARC

Alex Brownsell, the head of content at WARC Media, points to the app’s growing role in global culture, with a potential ad reach of 1.05 billion, including 409.1 million users aged 18 to 24. Additionally, TikTok remained the most downloaded app in the world for the third year in a row in 2022, according to data from Sensor Tower. Its full-screen, vertical video format has even inspired copycat products such as YouTube Shorts and Instagram Reels, indicating TikTok’s impact on the wider social media landscape.

Tech and electronics brands boost ad investment

The report noted that the technology and electronics category is transitioning its ad spend towards digital ad formats, particularly in video and audio channels. With ad investment on TikTok predicted to increase by 14.3% this year, to a combined investment of $2bn, the platform is positioned to capitalize on this shift. 

In the US, consumer packaged goods contributed significantly to growth, increasing ad spend on TikTok by 84% in Q4 2022 compared to the previous quarter, as reported by Pathmatics data.

However, there are political clouds on the horizon for TikTok’s future growth. The app’s Chinese ownership and its (mis)use of user data have prompted growing opposition. In the UK, the government has banned TikTok’s installation on government-owned devices, while in the US, there are calls for the platform to be sold or face a nationwide ban. These challenges could impede TikTok’s progress and limit its potential as a marketing platform.

Key takeaways

• TikTok ad revenue expected to grow by 53%, reaching £15.2bn
• 75% of marketers plan to increase their ad spend on the platform 
• Ad investment on TikTok to increase by 14.3% to $2bn

The post Tech and electronics brands electrify ad investment in TikTok appeared first on Business of Apps.

The mobile advertising industry has been a significant driver of growth in the digital economy, with companies spending billions of dollars every year to reach customers through various online channels. However, the industry faced significant challenges in 2022, as highlighted in the annual report by the Internet Advertising Bureau (IAB). While overall internet ad revenues were down, mobile reached record growth.

What’s keeping internet ad revenues down?

Internet ad revenue growth slowed down to 10.8% in 2022, following a record-breaking 35% gain in 2021, bringing the total revenue to $209.7 billion. The first half of the year showed robust growth, with the first and second quarters experiencing 21.1% and 11.8% growth rates, respectively. Growth slowed significantly in the second half of the year, with the third and fourth quarters experiencing growth rates of 8.4% and 4.4%, respectively.

Programmatic ad revenues, on the other hand, jumped 10.5% to $109.4 billion. 

And Search held the largest share of total digital ad revenue, noting a 7.8% year-over-year rise to $84.4 billion.

Overall internet ad revenues trend 2020-2022

Source: IAB

The overall slowdown in growth can be attributed to several factors, including global economic uncertainty and regulatory changes. The ongoing COVID-19 pandemic has resulted in significant disruptions in the global economy, leading to a decrease in advertising spending by some companies. Furthermore, new privacy regulations have been implemented in several countries, including the European Union’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA), which have affected the industry’s growth.

The pandemic also changed consumer behaviour, leading to changes in advertising strategies. For instance, the surge in eCommerce and online shopping has resulted in an increase in mobile app ad spending.

Mobile ad revenues are going up

While the overall growth of internet ad revenue may have slowed down in 2022, mobile ad revenue continued to grow, reaching a new record of $154.1 billion, an increase of 14.1% year-over-year. 

Mobile ad revenue now accounts for 73.5% of the total digital advertising revenue, highlighting the significance of mobile platforms for advertisers.

IAB expects further growth in mobile ad revenue due to the increasing demand for video and podcast content, the expansion of 5G technology, and the latest developments in virtual and augmented reality advertising. 

Historic trends of online ad growth by device over the years

Source: IAB

The rise of mobile devices has resulted in advertisers shifting their focus from traditional advertising channels to mobile platforms, as they offer more targeted and personalised advertising options.

The popularity of video and podcast content has grown significantly in recent years, with more consumers using their mobile devices to consume this content. Advertisers are taking advantage of this trend by investing in video and podcast advertising, which is expected to drive the growth of mobile advertising revenue further.

Interestingly, social media revenue growth slowed with the first-half revenues growing $1.8 billion while second-half revenues plateaued at a growth of just $0.3 billion.

As mobile platforms continue to play an essential role in advertising, companies will need to adapt their strategies to take advantage of the opportunities offered by these platforms.

Key takeaways

• Internet ad revenue growth slowed to 10.8% in 2022
• Programmatic ad revenues, on the other hand, jumped 10.5% to $109.4 billion
• Mobile ad revenue grew to $154.1 billion, an increase of 14.1% from the previous year

The post Mobile ad-titude: record revenue for 2022 driven by rising demand appeared first on Business of Apps.

Following a crackdown on new mobile game apps in China, the country seems to be back on track. According to industry experts at Niko Partners, the total number of game licenses issued for the year is expected to exceed 1,100, marking a return to the levels last seen in 2020. 

Back to old form

The National Press and Publication Administration (NPPA), the regulatory body responsible for issuing game licenses, approved a total of 288 games in Q1 2023. Of these, 261 were domestic titles, and 27 were imports. This number already represents a staggering 56% of the total game licenses issued in 2022. The freeze on video game approvals between August 2021 and April 2022 significantly impacted game licensing. 

While it may not be possible to achieve the same number of game approvals as pre-2018 levels, the industry is showing positive signs of recovery. In the first quarter of 2023, the number of game licenses granted by the NPPA suggests a “new normal”. 

The industry has been grappling with limited game licensing over the past two years, with only 120 import games receiving approval in 2021 and 2022. However, recent developments indicate a more optimistic outlook for both domestic and import games. 

Source: Niko Partners

Government regulators and industry bodies have acknowledged the strides made by game developers in improving compliance and self-regulation, especially when it comes to regulations concerning young gamers. This has eased the concerns that led to the game approval freeze in 2021.

Navigating change in Korea and China

Korean game developers are making a comeback, with 11 games of Korean origin receiving licenses since game licensing resumed in December 2022. This is a significant milestone for the Korean games industry, as geopolitical reasons had prevented any Korean games from being approved between March 2017 and December 2020. 

Other countries like Japan, the US, Poland, and Canada have also seen a surge in import game approvals since December 2022.

Global IP holders and Chinese game developers have found a way to navigate the domestic game approval process, which is faster than the import game approval process, for global game titles. 

As the year progresses, we can expect to see continued growth and development in the China game market, paving the way for an exciting future for the industry.

Key takeaways

• China resumed approval of gaming licenses and approved a total of 288 games in Q1 2023
• This is 56% of the total game licenses issued in 2022
• Korea, US, Poland, and Canada have also seen a surge in import game approvals since December 2022

The post China’s game market bounces back with over 1,100 game licenses expected in 2023 appeared first on Business of Apps.

Twitter’s ad business has taken a significant hit following Elon Musk’s acquisition of the social media platform almost six months ago. Recent reports reveal that the company’s core revenue stream has been severely impacted, with Insider Intelligence downgrading Twitter’s global ad revenues by 37% in their latest worldwide ad revenues forecast. 

Twitter ad revenues are taking a dive

This marks the second consecutive downgrade since Musk expressed interest in buying the company in April 2022. In Q3 2022, Insider Intelligence revised their outlook for Twitter’s ad business by 30% compared to the previous forecast. So what’s the impact of Musk’s takeover on Twitter’s ad business and what are the potential implications for the platform’s future?

The latest forecast anticipates a sharp decline in Twitter’s global ad revenues, with a projected drop of 27.9%, from $4.14 billion in 2022 to $2.98 billion by the end of 2023. As a consequence, Twitter’s share of the global digital ad market is expected to slightly decrease from 0.8% to 0.5%. To provide context, the Q3 2022 forecast initially projected 2023 revenues to reach $4.74 billion, highlighting the considerable downgrade in the company’s projected earnings.

What’s behind the downgrade?

“The biggest problem with Twitter’s ad business is that advertisers don’t trust Musk,” said Jasmine Enberg, principal analyst at Insider Intelligence. “None of Twitter’s efforts to bring back major advertisers, including ad incentives and brand safety partnerships, will work with Musk at the helm. Twitter needs to unravel Musk’s personal brand from the company’s corporate image to regain advertiser trust and bring back ad dollars.”

Insider Intelligence also forecast Twitter’s US ad revenues to drop by 28.6% in 2023, from $2.36 billion to $1.68 billion. Twitter’s share of the US digital ad market will drop from 1.0% to 0.6%.

Twitter ad revenues fall a whopping 29%

Source: Insider Intelligence

In the UK, ad revenues are expected to fall from £282.1 ($347.6) million in 2022 to £202.2 ($249.1) million by the end of the year, a decrease of 28.3%.

“Twitter’s content moderation and ad performance issues predate Musk, but they weren’t necessarily dealbreakers because advertisers trusted that Twitter was on their side,” said Enberg. “True, Musk exacerbated many of those problems, but as brands and advertisers consider whether to resume spending, they are now grappling with the larger question of whether to spend on a platform defined by chaos, arbitrary changes, and uncertainty over its future.”

Twitter is losing users

Another problem is that Twitter appears to be losing users for the first time since 2008. Its worldwide user base is anticipated to decline by 3.9%, with another 5.1% next year, a loss of 32.7 million users in just two years.

Twitter’s primary user demographic in the US, consisting of individuals aged 18 to 44 years, is expected to remain relatively stable. However, the platform is projected to experience a significant decline in users aged 45 and above, as well as those aged 17 and under. A substantial proportion of these users are deemed marginal and may have only recently joined the platform to follow the acquisition saga that unfolded last year. Moreover, political leanings also appear to influence users’ decisions to either continue using the platform or abandon it.

Users abandon Twitter

Source: Insider Intelligence

The amount of time spent on the platform is expected to drop by 2minutes in 2023, followed by another two minutes in 2024. While part of this can be attributed to technical issues and an increase in harmful content on the platform under Musk’s leadership, there are also underlying challenges that contribute to this trend. Specifically, Twitter lags behind in the area of social video, which has become the primary driver of time spent on social media.

Users flock to TikTok and co

Source: Insider Intelligence

“Twitter engagement is still heavily dependent on the news cycle,” said Enberg.  “The takeover saga caused a spike in time spent in 2022 that has now dissipated, as users have lost interest in Musk’s antics.”

Key takeaways

• Twitter’s global ad revenues drop 37%
• Twitter’s US ad revenues to drop by 28.6% in 2023,
• Worldwide user base is anticipated to decline by 3.9% in 2023

The post Twitter’s ad revenues and user engagement take a Musk-induced plunge appeared first on Business of Apps.

Global consumer spending on mobile games experienced a 5% year-on-year decrease, reaching $110 billion in 2022. However, predictions suggest that spending on mobile games will surge and reach an impressive $270 billion by 2025. New data from Adjust found that despite some turmoil in mobile gaming, there are plenty of opportunities for data-driven marketers to grow their games.

Is the downturn temporary?

2022 proved to be one of the worst years in history for the gaming industry, with overall installs declining 12% year-on-year. North America was hit the hardest with a decline of -20%, while LATAM saw a comparatively smaller impact of -6%.

Various cultural and economic factors played a role in the downward trend, marking a significant shift for the vertical that has traditionally dominated the mobile app market.

Gaming app install growth January 2021 – January 2023 (global)

Source: Adjust

However, this decline seems to be temporary, as the industry is experiencing a positive turnaround in 2023, with installs up 23% in January compared to Q4 of 2022 and 10% higher than the overall 2022 average.

User acquisition is getting more expensive

Some gaming sub-verticals actually saw significant growth. Music and educational games were up by over 100% year-on-year, racing games were up by 20%, word games by 7%, sports games by 5%, and arcade games by 3%.

Gaming apps saw hyper-casual games as the most downloaded genre, accounting for 25% of installs. However, this percentage was lower than in 2020 and 2021 when it reached 27%. Action games ranked second at 14%, followed by puzzle games at 12%, and both sports and casual games at 9%. 

Gaming app install growth percentages by category

Source: Adjust

The ratio of paid versus organic installs for gaming apps decreased slightly, possibly due to the higher costs of user acquisition, particularly in the latter half of the year. Even hyper-casual games, which depend heavily on paid user acquisition campaigns with a high turnover, experienced a significant decrease, dropping from 3.2 to 2.93.

Sessions start to recover

Sports games boasted the highest Day 1 retention rate at 31%, with casual and board games following closely behind at 30%. RPG and word games both had a 29% retention rate, while racing and arcade games came in at 27%. Hypercasual games had the lowest retention rate at 25%, suggesting that cross-promotional efforts should begin as soon as a user opens the app.

Gaming app sessions slowly recover

Source: Adjust

Gaming sessions experienced a significant year-on-year degrowth of 17% in 2022, continuing to decline throughout the year, hitting rock bottom in September to December. 

However, there’s good news as the gaming industry is bouncing back in 2023, with sessions increasing by 11% compared to Q4 2022. North America saw the biggest decline in gaming sessions at -25%, while LATAM had the least pronounced decrease at -12%.

Key takeaways

• Spending on mobile games set to reach $270 billion by 2025
• Overall gaming app installs declined 12% year-on-year
• Gaming app sessions increased by 11% in 2023 compared to Q4 2022

The post Gaming app installs are up 10% over 2022 appeared first on Business of Apps.

Mobile ad fraud is a persistent problem that has been plaguing the digital advertising industry for years, with billions of dollars lost each year. Despite efforts to combat this issue, fraudsters have continued to find ways to exploit the system, causing significant financial losses for businesses and damaging trust in the industry. In 2022, the problem of mobile ad fraud resurged, with global financial exposure reaching a shocking $5.4 billion. But what’s driving rising mobile ad fraud?

App fraud jumps 40-46%

In the latter half of 2022, the mobile app industry experienced a significant surge in install fraud, with average iOS app fraud increasing by 40% and Android app fraud rising by 46% finds AppsFlyer. The economic downturn, coupled with the holiday season, forced marketers to prioritise meeting aggressive KPIs over security measures.

Globally, the exposure to install fraud amounted to a staggering $5.4 billion, with bots being responsible for over 70% of fraud across all regions. To perpetrate their schemes, fraudsters have turned to creating fake users on fake devices, rather than manipulating the attribution of real users and devices. 

App install fraud rate trend by platform and vertical

Source: AppsFlyer

The rise in fraud can be attributed to a variety of factors, including distractions caused by new releases, budget constraints, and improved detection methods. In this context, it is crucial for businesses and advertisers to stay up-to-date with the latest trends and developments in the mobile advertising landscape in order to protect themselves against fraud and ensure a more transparent and trustworthy digital ecosystem.

Install fraud-type distribution by region & platform

Source: AppsFlyer

Particularly, click flooding and fake publisher fraud have become increasingly prevalent tactics used by fraudsters. As the threat of mobile app installs fraud continues to grow, it’s imperative that businesses and advertisers remain vigilant and employ effective security measures to protect themselves against potential financial losses.

Gaming apps are more vigilant

Gaming apps are leading the way in the fight against app install fraud, with non-gaming apps being six times more susceptible to such fraud. While both gaming and non-gaming sectors are affected by fraudulent activity, the gaming industry’s experience and data-driven approach to post-install value optimisation help to identify and weed out fraudulent activity. This experience has made gaming marketers seasoned veterans in fighting fraud and offers valuable lessons for other mobile advertisers to learn from. 

Specifically, finance app marketers should take note as the finance industry remains highly vulnerable, with nearly half of all fraud exposure impacting the growing finance category, amounting to $2.6 billion. 

Finance apps continue to reach alarming fraud levels

Source: AppsFlyer

This vulnerability is due to the industry’s rapid growth and increasing cost. This leads to some media buyers being unaware of the risks involved in seeking more affordable media sources.

Key takeaways

• Average iOS app fraud increased by 40% and Android app fraud rose by 46%
• Click flooding and fake publisher fraud are increasingly prevalent tactics used by fraudsters
• Nearly half of all fraud exposure impacting the growing finance category, amounting to $2.6 billion

The post Apps under attack: install fraud increases appeared first on Business of Apps.

In the ever-evolving mobile app landscape, it’s crucial to stay on top of the latest trends and shifts in user behaviour. A recent report from Sensor Tower sheds light on some interesting developments in the world of mobile apps in early 2023. While global game revenue remained weak year over year at the beginning of the year, spending on non-game apps reached a record high in January 2023, largely driven by entertainment apps.

Emerging markets lead the way

Despite the initial surge caused by the outbreak of COVID-19, global mobile downloads have since decelerated, although they have remained well above pre-pandemic levels. In 2022, the U.S. and emerging markets such as India, Brazil, and Indonesia led the way in mobile adoption, with Europe accounting for nearly 19% of global downloads. However, in recent years, Europe’s share has declined in favour of emerging markets.

While China may soon see a push in adoption due to the easing of tech crackdown and the end of its zero-COVID policy, Africa is expected to drive relative growth in the medium term. Although African countries are currently outside the top 20 markets by installs, they are poised to rise in global download rankings in the next few years due to a young and rapidly growing population, as well as some of the fastest-growing smartphone penetration rates globally.

Global app installs slow but remain above pre-pandemic levels

Source: Sensor Tower

Consumers spend fewer dollars on Android

In 2022, global consumer spending on Android saw its first-ever decline, falling by 7% year over year. The drop can be attributed to a combination of rising inflation and Apple’s anti-tracking rules, which have made it increasingly challenging to target ads and measure their effectiveness. The slowdown in mobile game spending worldwide was the main driver behind the plunge in Android revenue, with Japan experiencing the largest decline among major economies.

Global Android spending falls for first time on Android

Source: Sensor Tower

With stubborn inflation and weak consumer spending, app developers are exploring new monetisation strategies. Some apps, such as Tinder and Duolingo, are diverting more resources towards promoting one-time in-app purchases, which may have taken a backseat in the past in favour of higher-value subscription services. 

All eyes on entertainment apps

At the start of 2023, global game revenue remained weak year over year, while spending on non-game apps hit a new record in January 2023, propelled by entertainment apps. In recent quarters, the entertainment category has been rapidly expanding across various markets, with spending in the US reaching twice that of the next-largest category for the first time in 2022.

According to data from Sensor Tower’s App Overlap module, TikTok and Netflix are among the top apps that users of the world’s highest-grossing game apps, including Coin Master and Pokemon Go, are most likely to spend time on. As these boundaries between different categories of apps continue to blur, it will be interesting to see how app developers adapt to these changing user trends.

TikTok emerged as the fastest-growing ad channel across North America and major European markets. Its growing active user base, high levels of engagement, and reportedly lower advertising costs have contributed to the increasing amount of digital ad spending being allocated to the platform. Notably, TikTok was the fastest-growing app in terms of consumer spending in 2022.

However, as brands continue to slow their ad investments, apps that rely heavily on advertising are now seeking new sources of revenue. Meta, Twitter, and Snapchat are among the companies that have recently launched subscription services to diversify their revenue streams.

Key takeaways

• Africa is expected to drive relative app download growth in the medium term
• In 2022, global consumer spending on Android saw its first-ever decline, falling by 7% year over year
• The entertainment category has rapidly expanded across various markets, with spending in the US reaching twice that of the next-largest category for the first time in 2022

The post Entertainment apps take the lead as global game revenue slows down appeared first on Business of Apps.

In light of TikTok being slapped with a whopping £12.7m fine by the UK’s data watchdog for failing to safeguard the privacy of minors, UK data protection laws continue to strengthen. Recent developments have prompted a closer at Britons’ attitudes toward data privacy. Now a Forbes Advisor study found that Meta, the parent company of Facebook and Instagram, is the least trusted tech firm when it comes to personal data among Britons.

No trust in Meta

According to a recent survey conducted by Forbes Advisor, Meta, the parent of Facebook and Instagram, is the tech firm that Britons have the least confidence in when it comes to safeguarding their data. 

Based on a poll of 2,000 adults, almost half (48%) of individuals distrust platforms owned by Meta. The social media giant has been involved in several nefarious data breaches, most notably the Cambridge Analytica scandal, which enabled the British political consulting firm to illegally harvest data from up to 87 million people worldwide without their permission.

Meta is the least trusted social media group

Source: Forbes Advisor

Following this breach, its social media competitors have also lost the confidence of many Britons when it comes to safeguarding personal data. More than two in five respondents expressed distrust in TikTok (42%) and Twitter (41%) with their information.

PayPal, on the other hand, was the most trusted technology platform among Britons. Nearly half (47%) of respondents expressed confidence in the payment platform, which prioritizes secure online checkouts. 

Amazon, the online marketplace, ranks in second place with 41%, followed by Microsoft with 39%.

Interestingly, nine out of the ten companies that Britons trust the most launched before the 2000s. 

Who gets Britons’ trust?

A staggering 90% of Britons are concerned about their data being hacked. But which types of organisations do people feel comfortable sharing personal data with?

Almost two-thirds of respondents are uneasy about sharing their data with the government (63%), and over two in five (43%) are not comfortable sharing personal details with the NHS. 

Start-ups are the businesses that Brits are most hesitant to share data with. Only 4% claim they feel comfortable doing so. This is followed by online gambling (7%) and social media companies (8%).

Brits trust established tech platforms

Source: Forbes Advisor

Interestingly, younger individuals are more comfortable sharing data with social media platforms. More than one in six 18-34-year-olds are content to share their personal data with platforms such as Instagram and TikTok (17%). However, this sentiment decreases with age. Only 7% of 35-54-year-olds feel secure offering social media platforms personal data, and just 3% of those aged 55+ express the same level of comfort.

This is in contrast with public sector organisations such as the NHS, where more than half of those older than 35 years are comfortable sharing data compared to less than half of Gen Z and Millennials.

Bank details are the primary concern for Britons, with over three-quarters (77%) citing this as their top worry. This is followed by personal details (62%) such as an address, date of birth, and relationship status. In contrast, current location (25%) and income level (20%) were lower on the list of concerns, while just 4% expressed concern about sharing their political views.

Five steps consumers can take to protect data

Over half of users (53%) already have anti-virus software in place. 

“However, there are some easy steps consumers can take to minimise this risk. These include adjusting privacy settings on social media accounts, using unique passwords across different platforms (and making them difficult to guess), and installing antivirus software on your laptop,” says Laura Howard, at Forbes Advisor.

“As more and more of our daily lives are moved online, investing in a VPN (or ‘virtual private network’) is also a good idea. VPNs, which protect your internet connection and privacy online, are widely available, inexpensive, and can be easily downloaded from the provider’s website. However, our survey found that, despite widespread fears around data breaches, only 20% of respondents had taken this step to protect their data.”

Five steps to protect your data

Source: Forbes Advisor

Key takeaways

• 48% of individuals distrust platforms owned by Meta
• PayPal is the most trusted technology platform among Britons (47%) 
• 63% of respondents are uneasy about sharing their data with the government
• 43% are not comfortable sharing personal details with the NHS

The post Meta loses trust among Brits while PayPal soars appeared first on Business of Apps.

At the start of the COVID-19 pandemic, there was a notable increase in the popularity of personal investing apps as people sought to manage their finances remotely, keep up-to-date with market information, and invest.

However, in 2022, following the cryptocurrency crash and escalating inflation, consumers became more cautious with their financial risk-taking, leading to a decrease in interest in these apps. Investing apps witnessed a -5% drop in engagement. And yet, one app withstood the downward trend.

Saving with Nude

While downloads of personal investing apps in the UK experienced a YoY decline of -25% in 2022, Nude noted a 137% rise in downloads during H2 2022, according to new data from data.ai.

The app facilitates accessibility to saving schemes such as the Lifetime ISA, and offers money-saving expertise to aid younger generations in their quest to enter the property market.

Nude downloads on Google Play 

Source: data.ai

The impressive growth propelled Nude to the top of the personal investing app charts in the UK, surpassing established players in the subgenre like Plum and Hargreaves Lansdown. 

In November 2022, Nude emerged as the leader in both downloads and monthly active users.

What makes Nude stand out

Since its launch in 2021, the app has generated plenty of buzz in the personal finance market. Its success is especially notable considering the decline in personal investment during this time. But what makes Nude so popular?

Key features of the app include the “Gift Time” feature, which enables friends and family to contribute directly to a user’s Lifetime ISA for occasions such as weddings, birthdays, and Christmas. 

Nude defies wider market trends 

Source: data.ai

The app also offers bite-sized financial literacy guides covering a range of topics, from interest rates to the logistics of buying a home with a partner. 

Additionally, users can access a personalized “Time to Buy Calculator,” which estimates the timeline for purchasing a property based on factors such as salary, savings, monthly saving goals, and property location, type, and size.

Nude’s CMO Yoann Pavy told data.ai that what helped the app succeed was a mixture of relentless testing, paid ads with paid influencers and hiking interest rates of their ISAs during the economic crash. 

Key takeaways

• Investing apps saw a -5% drop in engagement in 2022 
• While Nude noted a 137% rise in downloads during H2 2022
• Key features of the app include the “Gift Time” feature, which enables friends and family to contribute directly to a user’s Lifetime ISA

The post Personal investing app bucks wider downward trend appeared first on Business of Apps.

Mobile can be a very distracting environment and app developers and brands are having to work harder than ever before to capture attention. The time users spend viewing an ad or app can be a direct measure of quality attention. The longer an ad is seen, the more likely it is to be remembered, and drive brand recall and sales. New research from Digital Turbine, Inc. and Amplified Intelligence found that combining video ads with end cards drove improved attention. 

Attention matters

As marketers are working with tighter ad budgets, it’s important to understand what captures user attention. Unsurprisingly, the more attention a video ad captures, the longer the brand stays in memory. 

A previous study by Amplified Intelligence found that memory starts to kick in around the 3-second mark. Longer dwell times also drive sales conversions.

End cards, which are ads injected toward the end of a video, boost more active attention than video ads alone.

Waves of attention

Source: Digital Turbine

The study also found that mobile game video ads by Digital Turbine grabbed and held user attention for 22s, which is significantly higher than the standard for mobile web video (1.6s) and social video ads (2.5s).

Digital Turbine mobile game video ads hold attention for longer

Source: Digital Turbine

Boosting brand growth

Brand recall was up 57% for longer video ads of between 21 to 30 seconds compared to 23% for short video ads (6-10 seconds). Mid-length videos of 11 to 20 seconds fared the worst at 18% of brand recall. 

Brand recall by video ad length

Source: Digital Turbine

In the study, seven brands were tested to assess the effectiveness of DT’s video ads in capturing the participants’ attention. The ads presented to the participants were of varying categories and durations. Amplified Intelligence’s method for measuring attention levels revolves around three categories: active attention, passive attention, and non-attention. Among these, active attention holds the most significance in driving business results.

“This research shows how in-game mobile video ads, combined with interactive and actionable end-cards, deliver a market leading attention grabbing product,” said Mark Slade, VP Brand and Managing Director Brand Partnerships at Digital Turbine. “The data shows the mobile gaming environment delivers results and provides an even bigger opportunity – making it an optimal environment for brand growth.”

Key takeaways

• The longer an ad is seen, the more likely it is to be remembered, drive brand recall and sales
• Memory starts to kick in around the 3-second mark
• Mobile game video ads by Digital Turbine grabbed and held user attention for 22s

The post End-cards boost mobile video ad performance appeared first on Business of Apps.

Global mobile payments are projected to surpass $2 trillion by 2023, driven by increased smartphone access, QR code utilization, digital wallet adoption, and the prevalence of payment applications. Based on an analysis of over 100,000 apps, Adjust found that finance is going digital. 

Fintech app installs jump 6%

In 2022, the fintech app sector faced considerable obstacles, including the cryptocurrency crash and subsequent downturn, a stock market decline, and widespread economic unease. 

Nevertheless, fintech app installations experienced a 2% global growth, reflecting the sector’s resilience and the persistent significance of mobile financial services and solutions across the globe. 

According to its annual Mobile App Trends report, Adjust found that the upward trend has continued into 2023, with January showing a 6% year-over-year increase and a 13% rise compared to the 2022 average.

Fintech app install growth January 2021 – January 2023 (global)

Source: Adjust

Payment apps grabbed a 51% share of installs, with banking apps at 40%, crypto at 6%, and stock trading at 3%. Notably, fintech’s paid installs share edged up in 2022, from 0.15 in 2021 to 0.16, while banking and payment apps held steady. Stock trading, however, nosedived from 0.8 to 0.46, revealing a massive drop in paid campaigns.

First week after install is crucial

A rise in paid installs often leads to lower retention rates, and 2022 mostly followed suit. Day 1 and Day 7 rates held steady at 22% and 14%, while Day 3 climbed to 17% from 16%. But by Day 14 and Day 30, rates dipped by one point. It all underscores the first week’s crucial role in mobile fintech. 

App developers should focus on experiences that drive retention and lifetime value – think gamification, loyalty programs, and push notifications for engagement.

Fintech app session growth January 2021 – January 2023 (global)

Source: Adjust

Users spend a little more time on apps

When it comes to session growth, there’s optimism for 2023 for fintech apps.

After a 19% year-over-year increase in 2022, January 2023’s sessions have risen by 7% compared to the 2022 average.

Banking apps made up 54%, payment 33%, crypto 6%, and stock trading 7% in sessions. It’s a slightly different distribution compared to install share, where payment outpaced banking and crypto surpassed stock trading. 

Fintech app stickiness 2021 – 2022

Source: Adjust

Session lengths were down from an average of 7.43 minutes to 6.06 minutes in 2022. But time spent in-app per user per day rose in 2022, up from 5.13 minutes per session per day on Day 1 to 5.67 minutes per session.

Fintech apps saw a dazzling 44% YoY growth in global in-app revenue for 2022. November and December primarily fueled this surge, soaring 83% and 112% compared to the yearly average. The trend persists in 2023, with January revenue hitting 65% above 2022’s average.

Key takeaways

• Fintech app installs jumped 2% in 2022 globally
• Payment apps grabbed a 51% share of installs, with banking apps at 40%, crypto at 6%, and stock trading at 3%S
• Sessions rose 7% compared to the 2022 average

The post Fintech flourishes as mobile payments rise, boosting installs and revenues appeared first on Business of Apps.

Despite an initial slowdown in 2022, the mobile app industry is experiencing a bit of a resurgence in 2023, with early indicators showing an upward trend in mobile app installs for eCommerce (+4%), fintech (+13%), and gaming (+10%), compared to their 2022 averages. We’ll start with eCommerce today.

Apple’s ATT opt-in rates rise

Based on an analysis of over 100,000 apps, Adjust analyzed long-term trends in installs, sessions, time spent in-app, retention, re-attribution rates, and more, across the globe for its annual Mobile App Trends report. It found that the opt-in rates for Apple’s App Tracking Transparency (ATT) feature have once again increased.

As data-privacy becomes more prevalent, users are becoming more informed about the issue, leading to a steady rise in opt-in rates. In Q1 2023, the overall industry average for ATT opt-in rates rose four percentage points year-over-year, reaching 29%. The gaming sector achieved a new high of 36%, while fintech saw a significant increase from 11% to 18%.

ATT opt-in rates by app category

Source: Adjust

“Global conditions and user needs are evolving rapidly, but the need for growth and ROI in the mobile app marketing industry remains the same,” said Simon “Bobby” Dussart, CEO of Adjust. “Delivering highly customized, seamless user experiences, executing on cross-platform campaigns, and tapping into the potential of new channels, such as connected TV, will prove invaluable for marketers and developers seeking sustained and strategic growth in 2023 and beyond.”

Installs up, retention down

In 2022, global eCommerce app installs decreased 0.6% compared to the previous year. The report indicates that EMEA and LATAM saw the most impressive growth for eCommerce in 2022 with 3% and 6%, respectively, while North America followed with a 1% increase. Come November, APAC installs were up by 19% compared to the 2022 average, while EMEA’s installs surged by 25%, LATAM by 11%, and North America by 15%.

eCommerce app sessions rise

Source: Adjust

Shopping apps dominated the e-commerce market in 2022, accounting for 58% of all installs, while marketplaces made up 35%, deal discovery apps represented 6%, and ticketing apps scraped in with just 1% of the total share.

2022 had significantly fewer paid installs compared to the previous year, despite installs remaining consistent at a global level and even growing in many markets. 

Although there was a rise in reattributions, organic installs, and channel diversification, retention rates experienced a slight decline in 2022. The Day 1 rates decreased from 20% to 19%, and Day 14 rates reduced from 9% to 8%.

eCommerce app installs were relatively lackluster in 2022, but sessions made up for it by performing exceptionally well. This trend is continuing into 2023 with global mobile eCommerce sessions growing by 12% YoY. 

Notably, the pandemic fuelled the massive surge in eCommerce growth in 2021 and 2020. Session growth was highest in LATAM (20%), followed by EMEA (16%) with marketplace apps accounting for the highest share of sessions at 62% compared to shopping (34%) and deal discovery (4%) apps.

Session growth by region

Source: Adjust

App stickiness is trending down from 17% in 2021 to 15% in 2022. 

To thrive in today’s economic climate, eCommerce apps must keep users happy and convert them into high LTV customers. This strategy maximises return on investment and capitalises on increased user engagement, making a customer-centric approach and prioritising user retention critical.

Key takeaways

• ATT opt-in rates rose four percentage points year-over-year to 29% in 2022
• Global eCommerce app installs decreased by 0.6% compared to the previous year but EMEA and LATAM saw 3% and 6% growth, respectively
• Shopping apps dominated and accounted for 58% of all shopping app installs

The post Global eCommerce app installs in 2022 recover but retention slips  appeared first on Business of Apps.

2022 proved to be a dynamic year for the global gaming market. Despite the fact that consumers spent 6.4 billion hours per week in gaming apps around the world, data.ai’s State of Mobile Gaming report revealed a -5% drop in consumer spending on mobile gaming, totalling $110 billion.

Downloads are booming

Despite the economic uncertainty that characterised 2022, the mobile gaming industry continues to thrive, with the number of gaming app downloads reaching an unprecedented 90 billion – an increase of 6.7 billion from the previous year and 22 billion from 2019.

Moreover, the latest gaming data also shows that gamers around the world spent a total of 6.4 billion hours per week on their favourite gaming apps in 2022. This underscores the growing interest in mobile gaming and the significant role it plays in the lives of millions of people globally.

The data also revealed that 224 games generated over $100 million in revenue, while ten games surpassed $1 billion annually, indicating the vast potential for profitability in the industry.

Weekly mobile game app downloads, spending and total hours

Source: data.ai

The findings highlight that mobile gaming is a successful and growing market that is becoming increasingly popular as a form of entertainment. People are spending a significant amount of money and time on mobile games, making it a formidable challenger to traditional forms of entertainment.

Fewer new games enter the market

According to data.ai’s research, there has been a notable decline in the number of new games entering the market, and established games are enjoying more average downloads than new releases.

In the US, established games averaged 2.7 million downloads each in 2018, compared to 3.5 million for new games. However, the market has shifted in the four years since, with old games accumulating an average of 2.5 million downloads, compared to 2.1 million for new titles in 2022.

Top game app genres 2022 versus 2021

Source: data.ai

Despite the increasing popularity of hyper-casual titles – games that are more pick-up-and-play with a short lifespan – evergreen games such as ROBLOX and Subway Surfers continue to dominate the download charts. The trend has continued into 2023, with data.ai revealing that in Q1 2023, the top two titles in the download top 10 remained unchanged from the previous quarter (Subway Surfers and Free Fire). However, there was significant movement lower down the charts.

In the UK, ROBLOX emerged as the most popular gaming app among Monthly Active Users, while Subway Surfers recorded the highest number of downloads, indicating the enduring popularity of these titles among gaming enthusiasts.

Key takeaways

• Gaming app downloads jumped to 90 billion in 2022, up 6.7 billion
• Gamers spent a total of 6.4 billion hours per week on their favourite gaming apps in 2022
• Drop in the number of new games entering the market, and established games are seeing downloads

The post Established mobile games are download darlings – fewer new titles enter market appeared first on Business of Apps.

On average, two out of three App Store users will leave without downloading an app. That’s why it’s all the more important for app developers to optimise their stores and find meaningful ways to engage users. Now Upptic, the user acquisition and growth experts, announced the launch of their Games Growth software platform.

Drive growth and get more users

The platform is a SAAS (software-as-a-service) solution for teams of all sizes and shares the tools that Upptic has used to annually scale $30M+ of profitable User Acquisition over the last four years.

The Games Growth software platform includes several features that make it easier for companies to optimise their user acquisition efforts, including insights and reporting, predictive buying, creative tools and budget and spending tracking features.

According to Upptic, iOS UA Reborn is the most effective and easiest solution. Additionally, the platform gathers and normalises data from various sources to drive actionable insights across a company’s portfolio, regardless of the source.

The platform also offers a Predictive Buying Model, which helps companies quickly understand the profitability targets they need to achieve on all user segments. The Creative DAM (Digital Asset Managers) is fully integrated with UA workflows, replacing expensive and siloed performance marketing. The Community Growth Tracking feature helps track growth of the core community for web3 and traditional games, while the Budgeting and Spend Forecasting feature helps companies account for every dollar in their marketing budget.

The Games Growth software platform is also designed to be affordable for small teams priced out of effective UA. Upptic’s original ASO (App Store Optimization) solution is also included, offering automated ASO to companies using the platform.

Upptic has spent four years experimenting with and validating its software platform at scale, making it the most important thing the company has ever done. The Games Growth software platform is expected to help companies optimise their user acquisition efforts and grow their businesses.

The post Upptic unveils Games Growth to help app developers get more followers appeared first on Business of Apps.

Influencer marketing continues to be a growing trend in the marketing industry, with a recent survey revealing that 64% of marketers plan to increase their influencer marketing budgets over the next six months. This trend stands out as most businesses are either maintaining or reducing marketing budgets due to economic headwinds, indicating that marketers see influencer programs as a valuable investment.

Pricing influencers is a challenge

However, finding the right payment amount for influencer partnerships remains a challenge for marketers due to widely varying influencer rates based on individual factors such as engagement and follower count. Only half of marketers feel confident in pricing influencers, and 41% believe their company is overpaying influencers, according to a Capterra survey.

Challenges when working with influencers include measurement

Source: Capterra

When it comes to payment methods, influencers also have a significant say, with 90% of marketers saying that it is common for influencers to help determine payment structures.

Pay per campaign is currently the most commonly used payment method, according to the survey.

Finding alternative models

Pay per performance is gaining traction among marketers as the second-most common form of payment used by 56% of marketers. This approach compensates influencers using performance-based metrics, such as sales, clicks, and impressions. Marketers find this method valuable in achieving a clear ROI or promised results, with 49% citing it as their greatest challenge in working with influencers.

According to Meghan Bazaman, senior marketing analyst at Capterra, “Pay per performance is becoming more popular for a few reasons, notably because businesses with tight marketing budgets may be more comfortable in only paying for specific outcomes in order to avoid wasting money or additional risk.”

She also notes that this approach drives influencers to deliver results and advanced marketing analytics make it easier to track performance.

Majority of marketers using pay per campaign and performance

Source: Capterra

In addition, nearly half (48%) of marketers have established recurring payments with influencers, and 54% are paying retainers or on a continual basis.

At the same time, brand ambassador programs were the most common type of influencer engagement, highlighting the growing popularity of longer partnerships.

To streamline working relationships with influencers, many marketers have turned to agencies. 61% reported they currently work with an influencer agency or specialist. Another 34% plan to start using one in the next 12 months.

While hiring influencers can be a valuable part of a marketing strategy, it comes with its own set of challenges and considerations.

Key takeaways

• 65% of marketers plan to increase their influencer marketing budgets over the next six months
• Only half of marketers feel confident in pricing influencers, and 41% believe their company is overpaying influencers
• Pay per performance is gaining traction among marketers as the second-most common form of payment used by 56% of marketers

The post Influencer marketing: performance payment models gaining traction appeared first on Business of Apps.

Despite the challenges faced by the mobile industry, including the pandemic-driven hype mostly fading and Apple’s privacy changes, global app downloads in 2022 remained significantly above pre-pandemic levels, according to a new report from Sensor Tower. So what’s happening?

App downloads still above pre-pandemic levels

Sensor Tower found that while global app downloads dropped by 0.9% year-over-year to 142 billion in 2022, they still remain significantly higher than pre-pandemic levels.

The decline in downloads is attributed to the fading of pandemic-driven hype, as well as various challenges faced by the mobile industry, including the global economic slowdown and Apple’s privacy changes.

Global app installs above pre-pandemic levels

Source: Sensor Tower

Games was the top mobile app category of 2022 with over 50 billion downloads, followed by Utilities with 17 billion downloads and Entertainment with 8 billion downloads.

Mobile game spending takes a hit

However, the report showed that global consumer spending on mobile games experienced a decline for the first time in 2022. Games generated $79 billion in revenue, down from $86 billion in 2021.

Game app spending drops post-pandemic

Source: Sensor Tower

The Game category continued its decline in revenue, while non-game apps reached unprecedented heights in January, thanks in large part to increased consumer spending on Entertainment apps. Sensor Tower suggests this shift could be due to users moving away from gaming and towards Entertainment apps, such as TikTok and Netflix, which have recently started offering mobile games on their platforms.

Entertainment versus game app spending

Source: Sensor Tower

The decline in revenue for the Game category further highlights the importance for mobile game developers to innovate and create new gaming experiences to attract users back to their apps.

Key takeaways

• Global app downloads dropped by 0.9% year-over-year to 142 billion in 2022
• Games was the top mobile app category of 2022 with over 50 billion downloads, followed by Utilities with 17 billion downloads and Entertainment with 8 billion downloads
• Users may shift focus to entertainment apps

The post Entertainment apps ahead of games for consumer spending appeared first on Business of Apps.

In 2023, the importance of apps to consumers remains indisputable. According to research from data.ai, the global app market is demonstrating remarkable resilience despite economic challenges. Mobile consumers are expected to spend an astounding $34.1 billion in app stores in Q1 2023, marking the highest quarterly spending on record.

After the dip follows the high

Data.ai’s Q3 2022 Market Pulse Report previously revealed a slight year-over-year decline in consumer spending, dropping from $33.7 billion in Q3 2021 to $32.4 billion. Now, iOS appears to be recovering at a 5% year-over-year increase, generating $21.8 billion, while Google Play jumped 7%, grossing around $12.3 billion.

When it comes to app store spending, iOS users still outpace their Android-using counterparts by a significant margin. iOS accounts for 65% of total app store outlay, rising to 71% in the non-gaming sector, which is being fueled by the growing demand for in-app subscriptions and hit apps like Calm.

Global app downloads in Q1 2023

Source: data.ai

Among Google Play users, the Games, Entertainment, and Social categories were the largest in terms of consumer spending. Meanwhile, Video Players and Editors, House & Home, and Health & Fitness saw the strongest quarter-over-quarter growth, with increases of 21%, 21%, and 20%, respectively.

Regionally, the US, Japan, and South Korea were the top contributors to consumer spend in the app market.

iOS leads, US and China top markets in Q2

In Q1 2023, consumers downloaded 38.4 billion apps, second only to Q3 2022’s 38.7 billion.

iOS saw the biggest spike, with estimated installs growing 12% YoY to approximately 9.2 billion. Google Play installs grew 1% YoY to 29.2 billion.

India and Brazil were the largest markets by downloads, while Turkey, Russia, and Iraq saw significant upward movement on Google Play. On iOS, China and the US were the top markets, with the US, Brazil, and Japan experiencing the most quarterly growth.

The most downloaded categories on iOS in Q1 2023 were Games, Utilities, and Photo & Video. Meanwhile, Games, Health & Fitness, and Travel had the most growth in absolute downloads QoQ. The categories with the highest percentage growth QoQ were Health & Fitness, Navigation, and Catalogs, with rises of 17%, 15%, and 12%, respectively.

Google Play users downloaded a lot of Games, Tools, and Entertainment apps in Q1 2023. However, the categories with the most absolute growth were Productivity, Books & Reference, and Education, which saw quarterly growth of 12%, 10%, and 9%, respectively.

Top apps in Q1 2023

Source: data.ai

Unsurprisingly, the top spenders and downloaders in the app market remain largely unchanged, with the charts still dominated by unicorn social, chat, and streaming apps such as Facebook, SnapChat, WhatsApp, and Netflix.

However, there were a few minor changes in the Q1 2023 charts worth noting. TikTok climbed up a spot to become the world’s most downloaded app, replacing Instagram. TikTok also topped the consumer spending chart, signaling its continued popularity and growth in the app market.

Key takeaways

• Mobile consumers are expected to spend $34.1 billion in app stores in Q1 2023
• iOS accounts for 65% of total app store outlay, rising to 71% in the non-gaming sector
• In Q1 2023, consumers downloaded 38.4 billion apps, second only to Q3 2022’s 38.7 billion

The post Q1 2023 app market booms with record consumer spending appeared first on Business of Apps.

Influencers have long been a major force in marketing, but a new trend on TikTok is challenging their status. It’s called “deinfluencing” and as the name suggests the trend means that TikTok creators urge their followers not to buy certain products or support certain brands. You read that correctly. It’s seen as the antithesis of traditional influencer marketing, where creators are paid to promote products and services. Let’s dive in. 

Respect no more

Research from Room Unlocked, an influencer marketing platform, found that 64% of British consumers say they’ve lost respect for influencers who are driven by commercial gain. As consumers become more sceptical of traditional creators, authenticity and credibility are gaining importance in influencer marketing. 

“Authenticity is one of the most over-used words within influencer marketing but it remains the most crucial,” Alex Carapiet, head of social at Seed told The Evening Standard.

“And the wider de-influencing phenomenon is a manifestation of an industry that has recently struggled with genuine authenticity as more and more people wish to become influencers, and more brands wish to utilise the influence they wield.”

The trend gained significant traction on TikTok, with over 52 billion views on the platform.

TikTok creators are deinfluencing

Source: TikTok

It has been fueled by controversies surrounding certain influencers who have been accused of promoting products they don’t actually use or believe in. For example, influencer Mikayla Nogueira faced backlash after posting a review of a mascara product that many viewers believed was dishonest.

By February 2023, #deinfluencing videos had attracted 206.5 million views on TikTok.

What deinfluencing means for marketers

The deinfluencing trend poses a challenge for marketers as they navigate the ever-changing landscape of influencer marketing. Marketers should focus on building long-term relationships with influencers who align with their brand values and foster genuine connections with their audience. Brands could prioritize transparency and ethical practices in their influencer marketing campaigns to regain consumer trust.

41% of US Gen Z have previously made a purchase based on creator content

Source: eMarketer

Data by market researcher Cassandra found that Gen Z and millennial consumers preferred to follow social media influencers who they perceived to be authentic and relatable. A whopping 89% of young consumers considered it important for influencers to come across as nice individuals, while 86% wanted to feel that the influencers are not solely focused on sales.

The deinfluencing trend highlights the importance of transparency, and ethical practices in influencer marketing and brands must now strive to build genuine connections with influencers and their audiences and align with their values.

Key takeaways

• 64% of British consumers say they’ve lost respect for influencers who are driven by commercial gain
• #deinfluencing videos had attracted 206.5 million views on TikTok
• Gen Z and millennial consumers prefer to follow social media influencers who they perceived to be authentic and relatable

The post Deinfluencing on social apps is a wake-up call for brands appeared first on Business of Apps.

Everyone’s been talking about TikTok facing scrutiny in the US due to concerns about its data privacy policies and potential links to the Chinese government. Meanwhile India, a country also at odds with China, has already banned over 250 apps, including TikTok, which disappeared from Indian app stores on June 30, 2020. Now data from Apptopia finds that the ban, while bad for ByteDance, may have benefitted other apps. 

The competition doesn’t sleep

Before the ban, the app was downloaded about 400 million times in India, making it a social media powerhouse in the country. In comparison, during the same time period, TikTok reached the same number of installs just this month in the US.

As soon as the ban hit, the short-form video market in the country underwent a major shift. A number of local competitors emerged almost immediately, hoping to fill the void left by the popular app. 

Mitron was the first to launch on April 19, 2020, followed by LitLot on June 19, 2020, and Moj on July 1, 2020. Josh and Tiki launched soon after, on July 3, 2020, and February 19, 2021, respectively. 

These apps offered Indian users an alternative to TikTok, and many of them gained a significant user base within a short span of time.

TikTok alternative app downloads soar

Source: Apptopia

Established Indian apps like Chingari, Roposo, and ShareChat also updated their functionalities to capitalize on the opportunity presented by the absence of TikTok. 

For example, Chingari added a “duet” feature that allowed users to collaborate on video content. 

Social apps benefitted the most

The biggest winner from the TikTok ban appears to be Instagram with the launch of Reels. Reels is similar to TikTok allowing users to create short-form videos that can be shared on the platform’s feed or explore page. The product quickly gained traction among Indian users, who were hungry for short-form video content.

It wasn’t just Instagram that saw an opportunity in the wake of the TikTok ban, though. YouTube also launched its own version of the product, called YouTube Shorts. 

Instagram has an opportunity in India

Source: Apptopia

Research by data.ai shows that time spent in the top 25 live-streaming apps in 2021 outpaced the overall social market by a significant margin in India. Year-over-year growth in live streaming app usage was a remarkable 40%, compared to just 5% for all social apps. This suggests that live-streaming apps are becoming an increasingly important part of the social media landscape.

One of the reasons for the growing popularity of live-streaming apps is the way they enable consumers to support their favourite content creators. Users are able to “tip” creators for their work, which has led to a significant increase in consumer spending. Global consumer spending in the top 25 live streaming apps grew 6.5 times from 2018, with a YoY growth rate of 55%.

Where will US users go?

A potential ban on TikTok in the US raises questions about where the app’s millions of users would go in search of short-form video content. 

Apptopia found that TikTok users tend to split their time with Meta-owned apps such as Instagram and Facebook at a roughly 20% share of the time spent.

TikTok users spent time in other social apps

Source: Apptopia

If India is a leading example, we can expect new apps and smaller competitors like Triller, Likee, Tiki, BIGO Live, Tango, ZIKTALK, and BeReal to see a temporary surge in popularity.  

A ban could be a huge lift for Instagram, but BeReal could also tap into TikTok’s appeal of authentic and unpolished videos.

Key takeaways

• India banned TikTok in June 2020 opening the market to local competitors
• The biggest winner from the TikTok ban appears to be Instagram with the launch of Reels
• Time spent in the top 25 live streaming apps in 2021 outpaced the overall social market by a significant margin in India

The post Ban to boom – India’s ban on TikTok opens doors for competitors appeared first on Business of Apps.

As more people use apps on their mobile devices, cybercriminals continue to develop new methods to exploit app vulnerabilities. In 2022 cyberattacks rose 38% over the previous year and the number of new mobile malware variants was up 54% in 2019. Promon, the application shielding technology, recently tested 357 high-earning Android mobile games to reverse engineer or manipulate apps. Shockingly, 81% (289) of the apps showed zero defence against these attacks and couldn’t detect a compromised device. 

Defenceless apps

In Promon’s four-step examination, one of the tests involved “repackaging,” a technique used by malicious actors to modify the existing source code of mobile applications. With this technique, hackers can insert their own code on top of an app’s source code and perform additional background tasks outside of the app’s intended functions. 

This opens the door for cybercriminals to steal user login credentials via a tactic called credential stuffing. 

Astonishingly, the tests revealed that a whopping 84% of apps lacked the capability to detect if their source code had been injected with harmful code, leaving them vulnerable to a host of cyberattacks. 

Only 15.7% (56) of apps had deployed any form of repackaging detection, making them the exception rather than the rule.

The company also assessed app vulnerabilities related to hooking frameworks which are utilized to monitor, modify, and redirect events in a mobile application. 

Promon’s tests repackaged almost 85% of all the apps tested

Source: Promon

Serious developers and security experts use them to identify vulnerabilities and malicious activities. However, they can also be used for malevolent purposes like stealing sensitive data. 

Only 5-8% of the apps tested could protect against attacks through frameworks. 

Finally, only one app could detect the presence of a rooted device, leaving the vast majority unprotected and susceptible to a host of security breaches.

13% of apps with $100M or more in annual revenue could detect hooking framework Frida, although none could detect LSposed.

Source: Promon

Why developers must address cyberattacks

Gaming-related cybercrime can be catastrophic for developers and publishers. Where games fail to provide a safe and secure experience, consumer trust declines and developers ultimately make fewer sales and see their downloads dwindle.  

“We were surprised at how many mobile games had a gap in cyber protection. From a technical standpoint, these aren’t complex attacks,” says Benjamin Adolphi, head of security research at Promon.

“These are basic tools and techniques leveraged by cybercriminals every day, and protecting against them should be a priority for developers when building these apps. While attracting millions of players, mobile gaming companies should consider bridging the gap between mobile app protection and ensuring that all gamers enjoy the game. Doing that will not only protect the game experience, but ensure that gaming companies defend their brands and grow their revenue.”

Tools like hooking can modify game code and give players an unfair advantage, causing developers to lose revenue as players may opt-out of in-game purchases.

Worse still, hooking frameworks can be utilized to extract sensitive data like proprietary game code, user data, or cryptographic keys, exposing developers to security risks and IP theft. If games are known to be vulnerable, they risk losing their reputation and player trust, causing lasting damage to the developer’s bottom line.

Key takeaways

• 81% of apps tested showed zero defence against cyberattacks
• 84% of apps lacked the capability to detect if their source code had been injected with harmful code
• Only 15.7% of apps had deployed any form of repackaging detection

The post 81% of mobile apps vulnerable to cyberattacks appeared first on Business of Apps.

Amidst the possibility of a TikTok ban in the US, influencers are preparing to shift to alternative short-form video platforms in case ByteDance, TikTok, and the US government fail to come to a resolution. The app’s Chinese ownership and cybersecurity laws have raised concerns about user data being accessed by the Chinese government. Tensions between China and the US have sparked fears that such data could be used to influence policy and sway opinion. Not only is the issue affecting TikTok ad revenues in the US but also its huge influencer base. Let’s dive in.

Calming the storm

TikTok is taking steps to reassure advertisers and rally high-profile users in an effort to prevent a potential ban on the app in the US. The company has been holding meetings with top advertisers to address concerns about national security issues.

The US accounts for roughly half of TikTok’s worldwide ad revenues, per Insider Intelligence estimates.

Change in US TikTok ad revenues to 2024

Source: eMarketer

Additionally, TikTok has been calling on high-profile users to fly to Washington, D.C. to lobby senators against implementing the ban. On Thursday, the CEO of TikTok, Shou Zi Chew, is scheduled to make an appearance before the US House Energy and Commerce Committee.

Insider Intelligence Principal analyst Jasmine Enberg believes:

“There is little TikTok CEO Shou Zi Chew can say on Thursday that will change US lawmakers’ minds. Project Texas won’t be enough to quell concerns about national security. And convincing lawmakers that TikTok doesn’t or can’t influence US public opinion as long as the app has ties to China is an impossible task.”

She adds that Chew will need to prove that TikTok is not being used to manipulate American public opinion or push propaganda. Recent revelations, such as the discovery of the “heating button” – an internal button that lets TikTok and ByteDance pick videos to go viral – suggest TikTok’s content recommendation system may be more complex than the company previously disclosed, and this could harm the group’s argument. However, advertisers generally remain positive that the issue can be resolved. 

Send in the troops

TikTok is said to be reaching out to influencers to get support for a protest in Washington to challenge the proposed ban. According to anonymous sources, TikTok is offering to pay for the trip of select influencers it is contacting, some of whom rely on TikTok as their primary source of income. 

The company hasn’t confirmed the rumours, but a spokesperson said that lawmakers in Washington should hear from those directly affected by any decision to ban the app. 

Change in % of TikTok users in the US

Source: eMarketer

TikTok has become a significant platform for influencers to advertise sponsored products, redirect users to their e-commerce websites, or even be rewarded by the platform for viral content. 

“TikTok’s strategy of enlisting creators to advocate for the app is a tested tactic, but it may not work this time. It’s more evidence of how entrenched TikTok has become in US lives and business and that growth has come somewhat at the expense of US-based social platforms,” adds Enberg. “Advertisers should start looking at alternative venues to reach their audiences and nurture their communities on other platforms, but there is no need for immediate action just yet.”

What are the alternatives?

If TikTok were to disappear, the significant portion of ad spending allocated to the platform wouldn’t vanish; instead, it would likely shift to one of the two other top short-form video platforms: YouTube Shorts and Instagram Reels.

YouTube Shorts now attracts 50 billion daily views and Meta predicts that Instagram Reels will be revenue-neutral by 2024. According to Edison Research, 44% of US teens and adults use Instagram. 

YouTube could be a viable alternative to TikTok for creators

Source: eMarketer

YouTube’s largest demographic in the US, excluding minors, is individuals aged 25 to 34 years.

Which one will they choose?

It’s a tough call between YouTube Shorts and Instagram Reels. But,YouTube Shorts has a trump card with its creator payment system. The company recently introduced an ad revenue-sharing program for eligible creators, which offers greater transparency in terms of payment.

Key takeaways

• TikTok is taking steps to reassure advertisers and rally high-profile users in an effort to prevent a potential ban on the app in the US
• On Thursday, Chew will need to prove that TikTok is not being used to manipulate American public opinion or push propaganda
• TikTok is said to be reaching out to influencers to get support for a protest in Washington to challenge the proposed ban

The post TikTok takes on Capitol Hill: Will its influencer army save the day? appeared first on Business of Apps.

Following the upsets in the US banking system over the last few weeks, crypto apps and wallets have seen a spike in downloads and user numbers. What’s happening?

Stocks down, downloads up

As Silicon Valley Bank’s stocks dropped 60% last week, the leading 10 crypto apps for exchanges and wallets saw their downloads spike 15%, data from app expert Apptopia finds. 

The top 10 crypto apps include Coinbase, Crypto.com, Trust, Binance, Bitcoin and Crypto DeFi Wallet, Blockchain.com, KuKoin, Kraken, eToro and BitPay.

The rise in crypto apps comes at the expense of the top 10 traditional banking apps, including Capital One, Chase, Bank of America, Wells Fargo, Discover, Citi and U.S. Bank, which saw their installs drop 5%.

Downloads of digital-first apps such as  Chime, Dave, Albert, Empower, Varo, MoneyLion, Current, Aspiration, Sable and Oxygen were down by 3%.

More users are downloading crypto apps in light of banking failures

Source: Apptopia

The higher downloads may signal a general concern among US customers given the recent banking crisis.  

Are crypto apps really safer?

Crypto apps and traditional banking apps both have their own strengths and weaknesses when it comes to safety against economic disruption. While crypto apps offer decentralized, non-fiat currency options and a higher level of privacy, they’re also subject to high volatility and lack the protections offered by government-backed insurance. 

On the other hand, traditional banking apps offer more stable options with government-backed insurance and regulations but also face the risk of bank runs and inflation. Both are vulnerable to cyberattacks. 

Following the Silicon Valley Bank shakeup bitcoin and ether cryptocurrencies increased by 15% and 9%, respectively according to CoinMarketCap data. 

Key takeaways

• Top 10 crypto apps downloads rose 15% following banking collapses
• Traditional banking app downloads dropped 5%
• Digital-first app downloads fell 3%

The post Banking shake-up spurs crypto surge: top crypto app downloads soar by 15% appeared first on Business of Apps.

Audio advertising in-app is growing at a rapid pace, but concerns over potential ad fraud schemes continue to pose a threat to the industry. According to eMarketer, US podcast advertising spending is expected to surpass $2 billion by 2023, demonstrating the increasing demand for audio advertising. However, as the industry grows, so do the opportunities for fraudulent activity, which could undermine advertisers’ trust in the medium.

Demand creates opportunities for fraudsters

DoubleVerify‘s recent discovery of the BeatSting fraud scheme is one example of the potential risks. Roy Rosenfeld, head of the company’s Fraud Lab, warned that the scheme has cost “unprotected advertisers” up to $20 million over the last few years.

Rosenfeld explained that CTV and audio are channels with higher engagement which leaves them more vulnerable to fraudulent activity when demand is high.

Mechanism of audio ad fraud

Source: DoubleVerify

The issue is by no means new. A study by Integral Ad Science found that the majority of media experts were concerned about audio ad fraud while 34% said they had seen an increase in fraudulent activity. 

How bad actors use fake audio streams

In 2021, DoubleVerify uncovered BeatSting, which involved fraudulent activity across over 60 mobile apps. While the apps are authentic, the impressions never actually happened. Fraudsters can create fake traffic that simulates how users listen and this in turn triggers an ad exchange to insert an ad. 

Though fraud is a much bigger problem in programmatic, which currently makes up just 2% of podcast ad revenue, with the rise of audio advertising, it’s crucial to address potential risks and take steps to protect advertisers and maintain the industry’s integrity.

Podcast ad spend growth prediction

Source: eMarketer

In a sense, audio advertising benefits from the fact that the market is still relatively small. 

“Fraud always follows the money, and increasingly that money is flowing to digital audio, a rapidly emerging channel where digital advertising standards are still evolving,” added Mark Zagorski, Chief Executive Officer at DoubleVerify. 

Key takeaways

• Podcast fraud scheme cost advertisers up to $20 million over the last few years
• BeatSting uncovered fraudulent activity in over 60 mobile apps
• As demand for audio ads increases, so will ad fraud 

The post Listen up: in-app audio advertising faces rising fraud threat appeared first on Business of Apps.

When the first hypercasual game (Flappy Bird) was released in 2013, it wasn’t an immediate success. But by the following year interest in this type of lightweight, snackable gameplay had exploded and other developers were taking note. The genre became massive. Last year, Android’s share of the genre climbed to a record 57% as the pandemic boosted mobile games to new heights. But the release of Apple’s IDFA changes and the economic slowdown, have impacted mobile gaming severely. 

What goes up, must come down

According to the latest State of Mobile Gaming 2023 report from Sensor Tower, the hypercasual genre suffered a substantial decline in downloads following the pandemic. Downloads of hypercasual games dropped 24% year-on-year to 2.7 billion in Q4 2022. Total downloads were 12.3 billion, down 10% from 13.7 billion in 2021. 

Despite all of this, hypercasual is still the top gaming genre by downloads, followed by Arcade, Simulation, Puzzle and Lifestyle. 

And it’s not the only genre losing out on attracting new users. Both Shooter and RPG titles saw a massive drop in downloads. 

Mobile game genre downloads and revenues in 2021 and 2022

Source: Sensor Tower

Interestingly, Action game downloads jumped 13% to 1.9 billion on the back of successful titles like Shooter.io and School Party Craft. 

Users want exclusive content

But it’s not all doom and gloom. The so-called hybridcasual genre, combining hypercasual gameplay with midcore and casual game retention and monetisation tools, grew 13% in 2022. 

The genre saw a total of 5.1 billion downloads and revenues reached $1.4 billion. 

Hybridcasual is in

Source: Sensor Tower

But if Netflix’s expansion into games is anything to go by, it seems some users are increasingly enjoying more exclusive access games. Downloads from Netflix subscribers were up 54%, generating 24.6 million total installs. 

Source: Sensor Tower

It would suggest there’s still room to grow or perhaps refocus your traditional hypercasual games.

Key takeaways

• Downloads of hypercasual games dropped 24% year-on-year to 2.7 billion in Q4 2022
• Total downloads were down 10% from 13.7 billion in 2021
• Hybridcasual titles grew 13% 

The post All eyes on the hybrids as hypercasual mobile game downloads plummet 24% appeared first on Business of Apps.

Despite the economic downturn, app and mobile publishers appear optimistic. Digital publishing revenues jumped 3% to £176.9 million in 2022 from the previous year, according to the latest data shared by the Association of Online Publishers (AOP) and Deloitte. So what’s driving growth? 

Consumers are subscribers

Subscriptions saw the strongest growth among publishers in the final quarter of 2022, rising almost 13% year-on-year. It shows that audiences are still keen to consume premium content despite the cost-of-living crisis. 

Display ad revenues stagnated at 0.1% while video revenues dropped slightly (-1.9%), according to the latest Digital Publishers’ Revenue Index (DPRI). Sponsorships dropped a whopping -24% in revenues. 

Total digital revenues were up 4.4% to £637.7 million.

“It is reassuring to see that there is optimism amongst publishers, with 75% confident in the outlook for advertising revenues compared to just half at the same time last year,” said Dan Ison, lead partner for telecommunications, media and entertainment at Deloitte.

“Many consumers remain committed to their subscriptions, despite tighter budgets as a result of higher cost of living. It is evident that the appetite for exclusive content remains intact, making it even more important for digital publishers to continue to prioritise consistent, high quality outputs to maintain consumer interest and drive growth.”

UK digital publisher revenues rise 3% in 2022

Source: AOP

Multi-platform revenues see sharpest growth

The data reveals a clear shift from desktop to mobile devices with mobile rising almost 17% and desktop revenues falling 9.5%. 

Multi-platform captures the largest share at £121.6 million (compared to £26.6 million for mobile alone), an increase of 3.7%. 

The growth is due to video (33.3%), subscriptions (12.9%), and display advertising (8.1%).

However, better performance was skewed toward the biggest players with 43% of respondents reporting growth. A whopping 75% said they were prioritising cost reductions, up 50% from 2021. That said, 75% said they were optimistic about ad revenues going forward as inflationary pressures could hit a peak and balance out the share of growth. 

Key takeaways

• Digital publishing revenues jumped 3% to £176.9 million in 2022 
• Subscriptions saw the strongest growth at 13% year-on-year
• Display ad revenues stagnated at 0.1% while video revenues dropped slightly (-1.9%)

The post Digital publishing revenues rise 3% on back of ongoing subscription success appeared first on Business of Apps.

Pandemic lockdowns meant that many of us could only dream of travelling. But once lockdowns lifted, people were quick to return to the spots they’d dreamt up. Now data from app and mobile marketing experts Digital Turbine shows that travel booking app TripAdvisor stood out when it comes to consumer interest. 

Rewards fuel recommendations 

Rewards are everyone’s favourite. The Marriott Bonvoy rewards app topped the chart for positive consumer sentiment and brand opinion. It had some of the highest percentages of users willing to recommend the app, despite having the fourth-lowest awareness among the top 20 apps. 

Fly Delta, Hilton Honors, Expedia and TripAdvisor rounded out the top apps consumers are happy to recommend to others. 

In the line-up of travel aggregators, Expedia and TripAdvisor rank top of consumer ownership. Orbitz has some of the lowest ownership at just 3%, which is around 5x lower than Expedia. Given that it’s owned by the latter, Expedia could help Orbitz grow. 

Orbitz has some of the lowest ownership among travel apps

Source: Digital Turbine

Everyone Ubers

In the ride-sharing category, Uber’s customer awareness is now at 65% compared with Lyft’s at 58%. It shows that Lyft still has plenty of room to grow. But what’s Uber doing that Lyft is failing to do? 

According to Digital Turbine research, Uber developed a stronger attachment with its users. In other words, it’s quite a sticky app. 

Lyft has some catching up to do

Source: Digital Turbine

What makes an app sticky in the first place is a loyal audience, low churn and solid engagement. Sticky apps are those most revenant to a user’s life or need. Developers can boost their app stickiness by boosting the user experience and loyalty through personalisation and an analysis of one’s weak points. 

Key takeaways

• The Marriott Bonvoy rewards app has the highest positive consumer sentiment and brand opinion
• Orbitz has some of the lowest ownership at just 3% – 5x lower than Expedia
• Uber’s customer awareness is now at 65% compared with Lyft’s at 58%

The post Rewards boost recommendations of travel apps appeared first on Business of Apps.

The Oscar’s are just around the corner but it seems that interest in the annual Academy Awards event is already fuelling a higher interest in streaming apps and platforms such as Netflix, Amazon and Apple TV+. According to an analysis from data.ai, the Paramount app saw a spike in downloads in the week following the announcement of Oscar nominations. Let’s take a look. 

Stream, stream, stream

Since the Oscar nominees were announced on January 24th, it seems app users have rushed to catch up on watching critically acclaimed movies. 

The streaming app from major movie studio Paramount, Paramount+, saw an 80% rise in downloads with the nominations. Users were watching Top Gun: Maverick and Everything Everywhere All At Once.

Global streaming app downloads rise following Oscar nominations

Source: data.ai

Amazon Prime Video and Netflix downloads also jumped with nominations for The Fabelmans, Blonde and All Quiet on the Western Front.

It’s not just the Oscar’s

However, the rise in streaming app uptake is not just due to the Oscar’s. The pandemic had a major effect on the way we consume media and video in particular. Streaming services exploded during the lockdown periods as theatres were shut down. Video streaming apps have been on a roll ever since with global downloads up 23% year-on-year to 3 billion. 

Spending on video streaming apps topped $7.2 billion (up 12% year-on-year) with US consumers contributing 44% to all spending. 

Top streaming apps by consumer spending in the UK

Source: data.ai

Interestingly, the data shows that growth is not just restricted to developed markets. Apps like MX Player gained popularity in India becoming the third most downloaded video streaming app after YouTube and Netflix in 2022. In LATAM, the category grew with consumer spending at over $42 million. 

Key takeaways

• Paramount+ saw an 80% rise in downloads with the nominations
• Video streaming app global downloads were up 23% year-on-year to 3 billion in 2022 
• Spending on video streaming apps topped $7.2 billion (up 12% year-on-year) 

The post Oscar nominations: streaming app Paramount+ downloads jump 80% appeared first on Business of Apps.

As consumers increasingly prioritize values such as privacy, transparency, and sustainability when making purchase decisions, it’s more critical for brands to prioritize these concerns in their marketing strategies. Today 67% of digital advertisers agree that brand safety is a key priority in mobile and app marketing, according to the latest survey by IAB Europe. Let’s take a look.

An industry gets serious about brand safety

Based on the answers of over 150 industry professionals, the majority believe that more must be done to ensure brand safety. Roughly half (53%) said that the industry had done a good job at tackling safety issues over the last 12 months, up from 36% in 2019. 

What’s fuelling these changes is, in the first instance, technological innovation (71%). 

“The poll results highlight how seriously the digital advertising industry takes the safety of brand advertising investments and how improvements have been made in tackling this over the past couple of years,” said Helen Mussard, CMO, IAB Europe.

“Furthermore, it is encouraging to see stakeholders recognise the importance that technology plays in tackling brand safety and suitability. We will continue to work with our members to highlight advances and best practices in this area, to enable brand-safe experiences for both advertisers and consumers.”  

Brand safety is a key priority

Source: IAB Europe

From safety to suitability

However, the challenges in brand safety have, by and large, remained the same according to 50% of respondents. 

They include privacy, transparency and sustainability. 57% said that privacy posed a greater challenge in 2022 while 44% found transparency and sustainability to be tougher than previously (39%).

Brands use suitability alongside safety measures

Source: IAB Europe

What emerges is that brands are ramping up demand for brand suitability (78%) versus safety. Over 80% of respondents said brand safety required a bespoke approach to client needs. 

In the future, this may mean new rules for creators, and tighter safety guidelines for customer privacy and content control.

Key takeaways

• For 67% of digital advertisers brand safety is a key priority in mobile and app marketing
• Brand safety has by and large remained the same according to 50%
• 57% said that privacy posed a greater challenge in 2022

The post Brand safety is key for 67% of mobile brand advertisers appeared first on Business of Apps.

Influencer marketing may be here to stay after all. This year alone, 64% of brand marketers are looking to increase their budgets on influencer marketing and a vast majority prefer long-term relationships with creatives. But if you’re just getting started and have wondered what influencers actually charge, a new survey by Intellifluence sheds light on how creators are compensated.

Instagram influencers overestimate budgets

Although TikTok has seriously advanced on Instagram in terms of attracting both talent and marketers, the Meta-owned photo app continues to grow its loyal audience and is the 8th most visited app in the world. 

When asked about how much cash an influencer would expect per campaign, those with less than <1k followers said $89 while those with 100k to 1 million followers typically expect around $1k per campaign. Interestingly, influencers with fewer followers (<1k) significantly overestimated how much those with 1 million followers actually charge ($20k).

Instagram influencer compensation expectations

Source: Intellifluence

That means Instagram influencers with small followers would hypothetically charge much more per post if they had millions of followers. 

Twitter and Facebook for shallow pockets

Marketers with smaller budgets will find that influencers on both Facebook and Twitter tend to charge far less than their Instagram counterparts, at least at a higher number of followers. However, Twitter estimates of budgets have been increasing since 2021. 

As for TikTok, brands have noticed that the network demands a lot more in terms of creativity in order to be successful. However, videos also have a 6x higher engagement rate than Instagram Reels. 

TikTok influencer compensation expectations

Source: Intellifluence

Estimates for campaigns on TikTok increase exponentially once a user crosses the 100k user mark, starting at $95 for <1k followers. That’s similar to Instagram. However, rates jump to over $1k once a creator has over 100k followers and then grow exponentially. 

YouTube performed similarly here. Though given how much more challenging it is to get users to subscribe, those with <1k followers charge more than twice as TikTok influencers. 

Key takeaways

• Instagram influencers with small followers would charge much more per post if they had millions of followers
• Facebook and Twitter creators tend to charge far less than their Instagram counterparts
• Campaigns on TikTok increase exponentially once a user crosses the 100k user mark

The post How much do influencers think they would charge for mobile social campaigns? appeared first on Business of Apps.

While the economic effects of the Covid pandemic and the war in Ukraine are taking a toll on ad budgets worldwide, the gaming app economy has been remarkably resistant. Developers and game marketers invested nearly $27 billion in ad spending in 2022, according to the latest State of Gaming App Marketing for 2023 report from AppsFlyer. 

Android up, iOS down

During Covid, game developers and marketers were on a high. During the second half of 2022, interest in gaming waned somewhat as users returned to their normal lives. 

But despite economic slumps, Android game app installs rose 8% compared to 2021 while iOS declined 5% in 2022. 

The drop in iOS installs reflects the challenges associated with Apple’s privacy changes. 

Year-over-year % change in overall gaming app installs: 2019-2022

Source: AppsFlyer

The US is still the most important market for gaming app marketers and saw a 19% growth in Android app installs in 2022, compared to a 1% drop in iOS app installs.

Shani Rosenfelder, Director of Market Insights at AppsFlyer reveals that “Evolving marketing budgets coupled with drops in consumer spending across some genres mean game businesses are compelled to prioritize profits over growing the sheer size of their numbers of players.”

Consumers are spending less in-app

In light of the economic challenges, consumers are spending less and that has an effect on app spending. There was a 7% drop in overall in-app purchases during H2 2022 compared to H1. Spending on iOS was down 9% compared to 4% on Android. 

In-app purchases on Android were down 14% while iOS was down 1%. The decline was driven by Role Playing and Casino genres which tend to have higher rates of in-app purchases. 

Year-over-year % change in overall gaming app installs by genre

Source: AppsFlyer

Casino grew 48% on Android, which is 3x more than hyper-casual and 5x higher than puzzle and role-playing games. 

What game marketers can do

There was a notable 88% increase in CPI from iOS between 2021 to 2022, reaching $3.75 per install. Marketers are shifting to owned media channels such as push

notifications, in-app messages and cross-promotion to get more out of their budgets.

What’s interesting though is that despite these hurdles mobile gaming is a lucrative venture. 

Gaming in-app advertising revenue by platform

Source: AppsFlyer

“Marketers will continue to succeed by putting more focus on modern measurement capabilities, utilizing techniques that deliver an engaging experience while respecting user privacy, and leveraging remarketing and owned media channels further in order to offset increases in their cost-per-installs (CPI),” adds Rosenfelder. 

“Additionally, they will need to dive deep into the complex yet promising SKAN 4.0 from Apple, and invest more in campaigns outside of the United States, as gaming is truly a global phenomenon.”

Key takeaways

• Developers and game marketers invested nearly $27 billion in ad spending in 2022
• Android game apps installs rose 8% compared to 2021 while iOS declined 5% in 2022
• 7% drop in overall in-app purchases during H2 2022 compared to H1

The post Game app makers spent $27 billion on ads while in-app purchases slumped 7% appeared first on Business of Apps.

A UK mobile games maker topped the latest Financial Times / Statista FT 1000 of the seven fastest-growing European companies. But what’s all the more apparent from the survey is the impact of Covid-19 and Russia’s war in Ukraine. 

Mobile games are on a roll

It’s hardly a secret that the mobile gaming market saw a significant boost during the pandemic as users hunkered down at home and turned to game apps to entertain themselves. By the end of 2021, the mobile game market generated $7.5 billion in player spending from the two app stores. 

Gamers spent 7.3% more in games in 2021 compared to 2020 with emerging markets such as Argentina, Vietnam and Brazil contributing heavily to the growth. 

Tripledot Studios, a game maker based in the UK, just topped the list of the FT 1000 of Europe’s fastest-growing businesses at a CAGR of 795%. The seventh annual FT 1000 ranking lists the top European companies that achieved a top annual growth rate between 2018 and 2021. 

Top 10 companies in the FT 1000 2022

Source: FT

Launched as recently as 2017, the game maker focuses on single-player card games. 

It was followed by Marshmallow, a UK insure-tech business (CAGR of 660%) and lithium battery maker WeCo of Italy (CAGR of 433%). 

Digitalisation of our lives

Besides the ongoing pressures of the war and Covid-19, the list reveals the ongoing digitalisation of our lives. IT, fintech and mobile or digital entertainment services all ranked in the top 10 of the FT 1000. 

According to data from Liftoff, over half of users who downloaded fintech apps in 2022 activated an account. 

Major game companies are shifting their focus to mobile-first games. Mobile gaming generated some $80 billion in 2020 compared to $37 billion on PCs and $45 billion for consoles.

Downloads of mobile games rose dramatically during the pandemic years

Source: data.ai

Three-quarters of Tencent’s $33 billion in 2021 revenues came from mobile alone. And though it’s true that multi-platform releases are becoming popular, mobile penetration of games far outstrips that of PC and console and there seems to be no stopping it. 

Key takeaways

• Tripledot Studios topped the list of the FT 1000 of Europe’s fastest-growing businesses at a CAGR of 795%
• Mobile gaming generated $80 billion in 2020 compared to $37 billion on PCs and $45 billion for consoles
• Gamers spent 7.3% more in games in 2021 compared to 2020

The post UK mobile game maker Tripledot Studios tops FT 1000 appeared first on Business of Apps.

Text and WhatsApp messaging may seem like an outdated mode of marketing. However, almost a fifth of respondents list SMS as their preferred brand communication channel and 16% would ideally like to receive these messages from brands up to three times a week. Why is that? Data quality expert Validity sought to find out.

Texts influences purchases

SMS marketing has become a widely adopted practice. But how successful is it really in driving sales and purchase intent? Based on a survey of over 1,200 customers late last year, promo messages reminding customers of abandoned carts and SMS marketing drove 38% of customers to make a purchase and 50% were influenced to purchase a product. 

However, the line between a positive and negative brand experience is thin. 

Lack of purchase history and a disregard for customer preferences means that marketers risk losing customers and revenues. 

Preferred channels for receiving marketing messages

Source: Validity

A whopping 96% of customers find themselves occasionally annoyed with SMS marketing, particularly when messages aren’t relevant to their needs or the products they purchased.

What brands can do

Brands risk losing customers who feel irritated by brand communication. In fact, 28% who felt annoyed stopped doing business with a company and another 28% stopped purchasing from a brand they received annoying messages from. 

Another 14% also left a negative review of a company due to irritation. 

Reasons why shoppers get annoyed with brands

Source: Validity

“With bleak economic conditions projected for the coming months, it is increasingly critical to reach customers where they’re at – which in today’s world is via SMS,” said Kate Adams, SVP of Marketing at Validity.

“Marketers who’ve mastered the art of SMS are able to create campaigns that increase customer engagement and satisfaction, and ultimately drive revenue for their business. But the findings of this report are also a cautionary tale because the opposite is equally true. When SMS is done poorly, businesses risk alienating large swaths of customers. Unfortunately, many marketers don’t know how to incorporate SMS effectively, and often attempt to apply age-old email marketing tactics – which aren’t effective in this medium. It’s crucial that businesses invest in training for their marketing teams so they are able to effectively adjust how, where, and with what frequency to employ SMS messaging tactics.”

To overcome these challenges, brands can consider giving customers the ability to adjust the frequency of their messages. 97% of customers said they would prefer such a feature and 81% feel it would make them purchase more. 

Customers prefer to receive these types of notifications

Source: Validity

Data privacy worries a whopping 70% of respondents with 66% worried brands are selling their data. So it’s important for companies to reassure customers. 

Key takeaways

• 38% of customers make a purchase and 50% were influenced to purchase a product after receiving a text message
• 96% get annoyed with SMS marketing 
• 28% who felt annoyed stopped doing business with a company and another 28% stopped purchasing from a brand they received annoying messages from

The post 38% of customers made purchase after receiving WhatsApp or text message appeared first on Business of Apps.

Many social apps start out by offering their services for free. They begin to monetise by offering ads and building their own advertising platforms. But with Apple’s app tracking transparency, marketers have turned to alternatives to grow profits. Social media apps compensated by building their own products and services available as in-app purchases (IAP).

But how are their IAP efforts performing now? App experts Apptopia sought to find out. 

IAP revenues jump

Combined, the top social apps including TikTok, Facebook, Instagram, Snapchat, and Twitter saw their quarter IAP revenues rise 91% since Apple rolled out ATT.

Snapchat+ stands out with an average 20% more daily IAP revenue than Facebook. 

The company’s subscription service costs $3.99 per month and has now brought in around $25 million since it launched. 

Snapchat+ revenue grows again

Source: Apptopia

Even though Facebook’s revenue is more consistent in terms of daily fluctuations, Snapchat’s daily revenue has trended higher than Facebook’s as of February. 

Twitter Blue grows slowly

Twitter rolled out Blue back in November 2022 for an average $8 per month. The feature lets users edit tweets and prioritize conversations. The company has now generated $25 million via the feature which is still low.

There’s also a massive disparity between iOS and Android revenues at an average monthly gap is 2,859%. 

Twitter Blue revenues on iOS and Android

Source: Apptopia

Compare that to Snapchat’s 902%, Instagram’s 293%, and Facebook’s at just 52%.

Twitter has some work to do to get Android users on board.

It’s all about fans on Meta and TikTok

Meta app IAPs and those on TikTok are largely focused on driving revenues through fans of creators. 

No slowing down for TikTok

Source: Apptopia

Facebook generated $56 million in IPAs while Instagram took home just $3.6 million. TikTok revenues came in at a whopping $1.5 billion last year. The company has long focused on fan-driven IAPs and continues to growth app revenues quarter by quarter (up 13.6% in Q4 2022). 

Key takeaways

• Top social apps quarter IAP revenues rise 91% since Apple rolled out ATT
• Snapchat+ attracts 20% more daily IAP revenue than Facebook
• Massive disparity between iOS and Android revenues at an average monthly gap of 2,859% on Twitter and 902% on Snapchat

The post Social apps turn to in-app purchases to make up for lost ad revenues appeared first on Business of Apps.

Just because a user downloads a fintech app, doesn’t mean they’ll be using it. In fact, only one in five users who install fintech apps, end up signing up within the first week. That’s according to the latest Industry Benchmark Report for Fintech Apps 2022 from CleverTap.

Why are install-to-sign-up rates so poor?

Something’s amiss if just 21% of those downloading a fintech app actually sign up during the first week. While speed, ease and convenience are all motivators for downloading fintech apps, it seems the onboarding process needs to be just as contextually relevant for consumers to actually sign up. Most users are looking for that easy button to help them solve their problems and are less keen on painful registration processes.

70% of users sign up within just 75 seconds

Source: CleverTap

Here’s some good news though. Of those users who do sign up, 70% do so within 75 seconds after launching the app. It shows that many users are eager to get going with their fintech experience.

Keep engaging to boost conversion rates

A whopping 95% of new fintech app users make at least one financial transaction during the first month. Over the course of a week, 76% of users go from onboarding to deeper-in-the-funnel engagement and the average user launches their app around 11x a month.

However, just 15% of new users complete more than one transaction during week one. This means it’s all the more important marketers continue to customise user engagement strategies to boost retention after download. 

“The fintech industry has seen exponential growth in the last few years. Given the relentless competition within the space, fintech platforms need to step up their Omnichannel engagement efforts to better retain customers”, said Jacob Joseph, VP-Data Science, CleverTap.

Fintech apps are sticky

The good news is that fintech apps may be a little more sticky than others at a stickiness quotient of 22% which shows that almost a quarter of users frequently return to their apps. 

Clickthrough rates for in-app notifications were 24% which is 3x more than other push notifications and email open rates are a whopping 34%. At 9%, the average CTR for Android is quite a bit higher than that of iOS (6%).

On average, fintech app users launch these apps about 11 times per month

Source: CleverTap

These figures show that users are interested in educating themselves about fintech topics and their apps.

Key takeaways

• 21% of users downloading a fintech app sign up during the first week
• 70% sign up within 75 seconds after launching the app
• 95% of new fintech app users make at least one financial transaction during the first month

The post Only 1 in 5 who download fintech app will sign up during first week appeared first on Business of Apps.

Apple Search Ads is now the second-largest network for user acquisition on iOS, according to the Singular ROI Index 2023 released today. That’s by comparison with platforms using analytics from SKAdNetwork. But smaller networks tied to Google and Meta are growing too. Let’s take a closer look. 

Ad spending on iOS continues to grow

When considering dollar volume and the number of conversions, Apple Search Ads is now the second-biggest ad network for iOS for app marketing. Brands which may have previously struggled with new attribution methods learned to use Apple’s privacy-focused SKAN and boosted spending on iOS. Following a drop in 2021, Apple ad spending jumped from 36% in January to 47% in December. 

Among the reasons for the growth in iOS ad spending are key markets such as North America and Western Europe, but also Apple’s growing global market share which is now at 22%. iPhone users also tend to spend more than Android users which makes them more attractive acquisition targets. 

iOS versus Android ad spend

Source: Singular

Brands using Appel benefit from managing a high-intent search marketing platform in Apple Search Ads and operating app advertising as a first-party data operation, enabling better targeting while ensuring privacy.

“2022 saw Apple Search Ads spending reaching record-high for apps across different categories,” said Emre Kavaloglu, Head of Marketing at MobileAction & SearchAds.com. 

“This year will be no different as advertisers can now create more relevant ad experiences with custom product pages and tap into new ad placements introduced by Apple in late 2022.”

Smaller ad networks may disrupt Meta – Google duopoly

While Meta and Google are still massive given their installed base and global scale of audiences and advertisers, smaller ad networks are challenging the duopoly in the era of privacy. The top ad networks by percentage growth in ad spending on Singular were:

1. Moloco
2. TikTok for Business
3. Twitter
4. Google Ads
5. Unity Ads
6. AppLovin
7. Snapchat
8. ironSource
9. Apple Search Ads
10. Liftoff

Another interesting point from the report is that we seem to have entered a time of persistent, lasting, and widespread loss of deterministic marketing signal. iOS was first; the web and Android are up next. This means a shift to hybrid measurement which includes a unified data infrastructure, multiple measurement methods and reporting and insights that serve various purposes drawing on first-party data, GAID and Privacy Sandboxes as well as media mix modelling. 

Measurement is turning hybrid

Source: Singular

Key takeaways

• Apple Search Ads becomes the second largest network for user acquisition on iOS
• Apple ad spending jumped from 36% in January to 47% in December
• Smaller ad networks begin to challenge Meta and Google duopoly

The post Apple Search Ads is now second-largest network for user acquisition on iOS appeared first on Business of Apps.

TikTok has the highest engagement rate among social media apps according to new benchmark report from RivalIQ. The analysis is based on 5 million posts and 9 billion comments and favourites on Facebook, Instagram, Twitter and TikTok from top global brands. Let’s take a closer look.

Short video has highest engagement rate

TikTok engagement rates topped almost 6% per post even thought the app had the lowest activity rate at 1.75. Meanwhile, Instagram engagement dropped by 30% to 0.5% year on year while Twitter’s fell just slightly to 0.04% and Facebook remained stable at 0.06%.

Engagement rates over time

Source: RivalIQ

Overall, brands saw less organic engagement in 2022 compared to the previous years.

Higher education was the engagement winner on Instagram despite below-median posting frequency. On TikTok, higher education saw some epic engagement rates.

Brands are posting less frequently

Interestingly, the report found that posting frequency was on decline. Instagram posting frequency was flat while Facebook and Twitter saw a 20% dive.

However, during the holiday season engagement rates were higher across most hashtagged posts while contests and giveaways were less popular.

TikTok video vs engagement

Source: RivalIQ

Reels are the most popular format on Instagram now and saw top performance for food and beverage brands. The format is also working well for beauty brands but possibly underused for home brands.

Key takeaways

• TikTok engagement rates topped almost 6% per post even thought the app had the lowest activity rate at 1.75
• Instagram engagement dropped by 30% to 0.5% year on year
• Instagram posting frequency was flat while Facebook and Twitter saw a 20% dive

The post Brands posting short video content see higher engagement appeared first on Business of Apps.

The health industry has seen a significant change since the Covid-19 pandemic with ever more healthcare services available via mobile apps and on people’s wearable devices. Health tracking is now popular to manage existing conditions and keep fit. Business intelligence firm Morning Consult took a closer look at the health app trends of 2023.

Growing number of Americans are using health apps

Two in five US adults are now using health apps. That’s a rise of 6 percentage points since 2018. The share of Americans who said they use wearables is up to 35%, an 8-point rise over the same period.

“The last five years have been very exciting. I think the next five years is going to be potentially even more exciting and transformative as innovation continues to evolve in almost every area of health care,” said Scott Whitaker, chief executive of the medical device industry group AdvaMed.

“The combination of consumers’ fascination with the technology and users’ recognition of the added value is “driving up the usage tremendously.”

Wearables are trailing the app trend somewhat. Nearly one in four non-users said that cost of devices was the main reason for them not buying one.

At least half of US adults with health apps use them daily

Source: Morning Consult

However, 86% of wearable users believe the technology is very or somewhat effective at helping them reach their goals.

Monitoring exercise, sleep and weight are core motivations

Around a third of health app owners say they’re using the technology more than they have before. Ismene Grohmann, head of product for Abbott Laboratories’ new bio-wearables line Lingo, believes that’s a direct consequence of the heightened focus on our health during the pandemic.

Motivations differ but 75% of users said they use apps for fitness and exercise monitoring, while 48% keep track of their sleep and 46% monitor weight using apps.

Top motivations to use health apps

Source: Morning Consult

Interestingly, a separate survey found that US adults were becoming less concerned about privacy issues of health apps while Gen Z users were growing slightly more concerned.

Key takeaways

• Use of health apps grows 6 percentage points over 2018 while 35% more people use wearables
• 75% of adults said they use apps for fitness and exercise monitoring, while 48% keep track of their sleep and 46% monitor weight using apps
• US adults are becoming less concerned about privacy issues of health apps

The post Two in five US adults now use health apps appeared first on Business of Apps.

Mobile has changed the way shoppers interact with brands and online retailers. But what’s really important when trying to engage shoppers and what has the biggest impact on their purchasing decisions? Customer engagement platform Emplifi just released a new report based on the answers of 2,000 shoppers in the US and UK to find out.

User-generated content is trusted

Not all reviews are equal. According to the survey, 87% of customers said that real-life customer reviews and ratings had a much higher impact on their purchasing decision compared to influencer or celebrity reviews at 50%.

When researching products online, reviews are the most influential factor that drives purchases, ahead of price, return policies or delivery costs.

Reviews, rating and interactions impact on purchasing decisions

Source: Emplify

According to Chief of Strategy Kyle Wong at Emplify:

“There’s no better way to demonstrate brand authenticity than by putting organic customer experiences front and center. Brands that are already leveraging UGC are seeing measurable results. The key is to make this content easily accessible on your product pages so customers can conduct their research right on your website without having to visit other sites to find authentic customer reviews.

Celebrity testimonials are costly and, ironically, don’t have the same impact as content from a real-life customer which is great news for brands. Marketers are able to maximize their budget by doubling down on content customers are creating free of charge that significantly impacts purchasing decisions.”

Shoppers visit multiple websites before making purchasing decision

The vast majority (95%) of mobile shoppers research low-cost products of up to $20 on various sites. Marketplaces are a popular source of information. However, search engines are preferred for more expensive products priced at over $100.

The trend is in part driven by budget-conscious shopping due to the recession and inflation. Brands can leverage product reviews and pictures to ensure shoppers have all the information they need to make a purchase.

Search behaviours of online shoppers

Source: Emplify

Interestingly, things aren’t vastly different across the various generations with Gen X, millennials and Gen Z customers all researching products online in a similar manner. They spend up to 15 minutes looking at different product websites for cheaper items.

As the cost of the item increases, the number of websites visited goes up.

Key takeaways

• 87% of customers say real-life customer reviews have a much higher impact on their purchasing decision compared to influencer or celebrity reviews
• 95% of shoppers research low-cost products of up to $20 on various sites
• Research trends are similar across generations

The post 80% of mobile shoppers say reviews have biggest impact appeared first on Business of Apps.

With the rise of TikTok, video has been all about the short format. But now new research from growth acceleration platform Liftoff finds that longer video ads are more effective than their shorter counterparts. Mobile user acquisition managers seem to be focusing on videos between 30 to 60 seconds in length for better performance gains.

Longer is better for video ads

Although attention spans may be short, slightly longer mobile video ads are proving effective in capturing user attention. Brands saw 50% higher conversions with longer videos than shorter ones. In part that’s due to longer video being able to more successfully tell stories.

Liftoff recommends mixing and matching existing ad materials to create longer video ads.

CPI by ad formats of all verticals

Source: Liftoff

At an average CPI of $3.60, videos aren’t the most cost-effective option to drive game app installs – that accolade goes to native and playable ads at $1.01 and $1.66 respectively – but they’re also not the worst. Interstitials cost 4x more per install than native ads.

Native ads are best for entertainment

The report also found that native ads are the best option for entertainment apps at an average CPI of $3.05.

Banner and video ads cost the same per install on iOS at $10.31, but banner ads offer a better deal on Android at $2.04.

Video ads cost twice as much per install as native ads.

CPI for entertainment format by platform and vertical

Source: Liftoff

Marketers are advised to consider the motivations and ad preferences that can drive user engagement. These can be divided into escapism, social, mastery, management, expression, and exploration. Those who match player motivations and ad creatives are able to drive more growth. Motivations also enable marketers to pinpoint their audiences more successfully and capture attention more fully.

Key takeaways

• 50% higher conversions with longer videos than shorter ones
• Videos aren’t the most cost-effective option, native and playable ads are at $1.01 and $1.66 respectively
• Native ads are the best option for entertainment apps at an average CPI of $3.05

The post Longer video ads boost conversions by 50% over shorter ones appeared first on Business of Apps.

With the Covid-19 pandemic, a growing number of customers began utilising banking apps. Downloads of banking apps in Europe and the UK rose 5% last year compared to the previous year, according to research from app analytics and marketing company App Radar. Here are the findings. 

Neobanks make the biggest splash

Out of all the Google Play Store banking app downloads analysed, neobanks made the biggest gains. Downloads of neobanking apps in Europe were up 11% last year compared to the previous year. 

UK neobanks also performed slightly better than their European counterparts with Android downloads rising 15% versus 10%. 

Legacy banks on the other hand haven’t gained as many Android downloads as neobanks. European and UK downloads dropped 1.5% on the Google Play Store last year. But it appears UK legacy banks have fared slightly better adding 10% more users on Android than banks in Europe (decreased 8%). 

Top banking apps by Google Play Store downloads

Source: App Radar

Atom Bank sees the highest gains

On Android, the neobanks with the highest growth was Atom Bank with downloads rising 101%, followed by Viva Wallet by 54%, Tandem Bank by 53%, Monzo by 49%, Revolut by 31% and Metro Bank by 28%.

UBS was the legacy bank with the most noticeable lead of 79% of downloads, followed by Lloyds (16%), Halifax (12%) and HSBC (12%).

“[The findings] show that even though legacy banks may still have a larger general market share than neobanks, the gap is decreasing and competition is increasing,” said Silvio Peruci, Managing Director, App Radar.

“UK legacy banks’ gains are smaller when looking at percentage growth. However, none of those legacy banks analysed experienced a decrease, which points to the fact that they are steadily adding new younger customers or converting existing customers to mobile banking.”

Revolut is one of the most popular apps in terms of lifetime downloads at 26 million, followed by Credit Agricole at 13 million. 

“We’ll have to see how these apps fare in 2023, but with the ongoing cost of living crisis, both sides of the market will have to zero in on their user acquisition strategy. With more choices available than ever for consumers, companies will have to fight for new users with innovative functionality and smart marketing techniques to attract and retain users.”

Key takeaways

• Downloads of neobanking apps in Europe were up 11% last year compared to the previous year
• Neobanks with the highest growth was Atom Bank with downloads rising 101%
• UBS was the legacy bank with the most noticeable downloads at 79% 

The post Neobanking app downloads jump 11% appeared first on Business of Apps.

Mobile marketers are increasingly discovering the power of mobile game advertising with the number of advertisers rising by almost 18% in 2022 over the previous year. That’s according to new research from SocialPeta which took a closer look into global mobile game marketing. Let’s dive in. 

All eyes on casual

Despite the increase in mobile gaming advertisers, they created 16% fewer creatives at 12 million. However, creatives grew 7% quarter-on-quarter throughout 2022. 

Active game advertisers and creatives in 2021 and 2022

Source: Social Peta

The casual genre attracted the majority of advertisers with 28%, which is a rise of 3%, followed by puzzle (12%) and simulation (9%). 

Adventure titles attracted just 4% of advertisers, being the genre with the least interest, while arcade games saw the steepest decline falling almost 2% to 6%. 

The casual genre also dominated the number of creatives which grew 5% to 23%. Puzzle titles also noticed a growth in advertisers at 0.3% to 13%. RPG noted the steepest decline at 2%. 

Percentage of advertisers by game genre

Source: Social Peta

Regional and platform differences 

North America attracted the highest monthly average number of advertisers, 25% higher than Europe. Southeast Asia, Macao and Taiwan scored highest for number of creatives at an average of 300 pieces of advertising materials per month. 

iOS recorded a steady rise in advertising. Nearly 40% of all gaming advertisers in Q4 2022 were on iOS. However, Android wins for creatives where the average amount of materials was 33% higher than that on iOS. 

A closer look at casual game marketing

Downloads of casual games grew almost 9% year-on-year while revenues dropped 11%. The drop in revenue is not surprising given the economic squeeze. There were over 22,000 casual game advertisers last year – a rise of 31%. 

Casual game downloads and revenues

Source: Social Peta

In South America, casual game advertisers accounted for 31% and their creatives for 26%.

The report provides deep dives into each game genre so if you’re interested, you can check it out here. 

Key takeaways

• The number of mobile gaming advertisers rises almost 18% in 2022 but created 16% fewer creatives 
• The casual genre attracted the majority of advertisers with 28%, a rise of 3%
• North America attracted the highest monthly average number of advertisers, 25% higher than Europe

The post Casual mobile games dominates number of advertisers at 28% appeared first on Business of Apps.

The MENA (Middle East North Africa) region is quickly gaining a reputation for being a fast-growing market in mobile gaming with revenues expected to exceed $5 billion by 2025. Now, gaming market intelligence provider Niko Partners has zoomed in on the big three – Saudi Arabia, Egypt and the UAE – to find out more about what’s driving mobile gaming apps in the region. 

A growing market

According to the MENA-3 Games Market Report, the three countries now have 67 million gamers and revenues of $1.79 billion in revenues. By 2026, revenues are expected to rise a whopping 56% to $2.79 billion thanks to a rising number of gamers to 87 million. 

Growth is expected to be driven by mobile gaming but also public and private sector investments, pushing the region closer to “esports giants such as Singapore and China”.

Infographic of the gaming market in MENA-3 region

Source: Niko Partners

The whole MENA region has seen steady growth in mobile gaming with downloads reaching 4.9 billion in 2021. That’s nine times the global rate. Consumer spending grew to $1.6 billion which is three times faster than in the rest of the world.

eSports among top genres

As per the report, 73% of MENA-3 region gamers now engage with esports by watching content, playing games or taking part in competitions. The majority of gamers (76%) are under the age of 35, with Egypt having a higher percentage of gamers under 25 years who are considered digital natives.

Egypt has the highest number of players and is the fastest growing market while Saudi Arabia has the highest games revenue and UAE saw higher user revenues. 

Mobile gamers in Saudi Arabia, for example, now spend one to three hours online on their smartphones and 48% spend up to two hours playing mobile games during the holy month.

MENA region mobile behaviours

Source: Adcolony

Unsurprisingly, this makes Ramadan an important month for reaching potential gamers and customers when user numbers peak. The majority of gamers are Gen Z with 44% of women playing games in the MENA region. 

Key takeaways

• MENA-3 gaming revenues to grow 56% to $2.79 billion and 87 million gamers
• 73% of MENA-3 region gamers now engage with esports by watching content, playing games or taking part in competitions
• The majority of gamers are Gen Z with 44% of women playing games in the MENA region

The post MENA-3 game revenues to grow 56% by 2026 appeared first on Business of Apps.

While creating an app is no easy feat, keeping it alive and going is even harder. When apps on the App Store and Google Play Store go without updates for at least 2 years, they’re referred to as “abandoned” apps and the latest Abandoned Mobile Apps Report from Pixalate shows: abandoned apps are on the rise. 

Outdated apps on the rise

The number of abandoned apps on app stores rose 6% from 1.76 million to 1.86 million in Q3 2022 according to the report. The number of super abandoned apps – those that haven’t received an update in over 5 years – climbed to 348,000. That’s a considerable number of wasted apps. 

The Play Store has around 1.3 million abandoned apps, up 9% in Q4 2022, while the App Store accounts for the other 496,000, down 2%. 

Google may have some cleaning up to do

Source: Pixalate

Interestingly, 15,000 apps with programmatic ads were abandoned in Q4. 

However, around a third of apps on both stores can still be downloaded. The problem with outdated apps is that they pose a major security threat because they’re no longer being updated in line with new fraud protection measures. 

And the highest percentage of abandoned apps is registered in…

Of all the apps registered in Russia, 45% are abandoned (22,000), followed by China at 40% (35,000). The US has the highest number of registered abandoned apps at 128,000 (38%). 

The report also noted that apps with over 100 million downloads are more likely to be updated than those with less than 10,000 installs. The app business is tough and in the midst of trying to gain users, many developers give up and abandon their apps. Keeping an app updated that doesn’t seem to deliver any real returns can be a real drag. Another reason for app abandonment was a lack of privacy policy.

Ad spend on abandoned apps

Source: Pixalate

Indeed, 97% of App Store apps and 61% of Play Store apps that didn’t have a privacy policy were abandoned.

The Huawei Mobile Services app is a bit of a standout here. It has 500 million downloads but hasn’t been updated in at least 2 years. 

Key takeaways

• Number of abandoned apps on app stores rose 6% in Q3 2022 
• Play Store has around 1.3 million abandoned apps, while the App Store accounts for the other 496,000
• 97% of App Store apps and 61% of Play Store apps that didn’t have a privacy policy were abandoned

The post Number of abandoned apps in app stores climbs another 6% appeared first on Business of Apps.

Mobile is now the dominant platform for media consumption with users spending over 4 hours a day on their mobile devices compared with 3 hours on PCs and TVs. That’s according to the latest ’A New Era of Engagement in Media & Entertainment report from mobile experts Newzoo which surveyed over 2,500 consumers in the US to find out how the different generations engage with media and entertainment. 

In engagement, social reigns supreme

We are social beings and the report backs this up. A whopping 96% of respondents said they spent 13 hours a week engaging with social media and video-sharing apps such as Instagram and TikTok. 

Social and broadcasting apps highest for engagement time

Source: Newzoo

But entertainment is just as important with 94% saying they spent almost 14 hours in broadcast TV and subscription services while 87% use podcasts and music apps for 11 hours per week. Video gaming apps attract 84% of users at almost 12 hours a week. The findings point to a growing trend of our active engagement with entertainment as we’re reading, playing and creating more digital content than ever before. 

It’s all about mobile

Most engagement (60%) takes place on mobile devices. Social is a category driver with 73% of engagement time happening on mobile apps versus other devices. Only for broadcast TV, respondents tend to favour TV over mobile (46%). 

Mobile for social and audio entertainment

Source: Newzoo

The study also noted that video gaming apps command some of the most active engagement hours (72%) followed by books and comics (62%) and sports and fitness apps (60%).

But consuming content is just one side of the content. Users are becoming more involved with their apps and want to share their own content with others. That’s particularly true for younger generations. Here, 69% of Gen Z spend almost 7 hours a week creating digital content versus 46% of Gen X who spend 6 hours per week uploading photos or creating videos.

Younger users share more of their own content

Source: Newzoo

Taken together the report shows that apps aren’t just about media consumption but increasingly are vying for user engagement. 

Key takeaways

• 96% of respondents said they spent 13 hours a week engaging with social media and video sharing apps
• Most engagement (60%) takes place on mobile devices
• 69% of Gen Z spend almost 7 hours a week creating digital content

The post 96% spend 13 hours using social and video-sharing apps appeared first on Business of Apps.

Mobile fitness and health apps have seen a surge in use and with that increased marketing spending ever since the COVID-19 pandemic. And though downloads slowed in 2022, 81% of consumers plan on using apps on their smartphones and wearables in 2023 to boost their health. 

How people are using apps to improve their health

New research from mobile app experience experts Airship has found that more people in the US, UK and France are turning to mobile apps to support their health. 

One of the top ways in which consumers are using their fitness apps this year is by connecting with friends and family (27%), working out (26%) and improving their sleep (17%) and diet (16%). 

People use fitness apps to connect with others

Source: Airship

US users are also more likely to visit a virtual doctor this year (15%) compared to the French users (10%) and those living in the UK (7%). It seems that virtual healthcare can alleviate some of the pressure of a healthcare system strained by the pandemic. 

More Americans tend to use apps for nutrition and diet purposes compared to sleep. The opposite is true in France and the UK. Ten percent of US users will also be monitoring their heart and biometrics using apps. 

Gen Z are all about the apps

The findings reveal a distinct generational divide with Gen Z showing the highest intent for using apps to improve their health. A whopping 94% of Gen Z users want to improve their health through apps, followed by millennials at 90% and Gen X at 82%. Boomers are less inclined to do so at 65%.

How the generations use fitness apps

Source: Airship

Household income does affect how apps are used. Almost a quarter of people in low-income households won’t be using fitness apps compared with higher-income households. And yet, adoption rates of health and fitness apps are fairly similar across all income levels. 

Use of fitness apps by household income

Source: Airship

The research highlights that there’s plenty of opportunity for fitness and health app developers to win new users. However, user churn is always an issue. To keep users returning, app developers should focus on boosting engagement by offering the best user experience. Some apps also lack incentives or content which can stop users from returning to them. 

Key takeaways

• 81% of consumers plan on using fitness apps on their smartphones and wearables in 2023 
• Consumers are using their fitness apps to connect with friends and family (27%), work out (26%) and improve their sleep (17%)
• Gen Z have highest intent for using apps to improve their health (94%) 

The post 8 in 10 mobile users are getting fit with health apps in 2023 appeared first on Business of Apps.

Consumers are increasingly using their banking apps to make financial transactions according to a new survey from financial services group Chase. The rising interest in financial apps has been driven by the pandemic which restricted access to physical banking and the speed of technological innovation. But convenience has a significant role to play here. 

Not without my banking app

The survey found that two out of three respondents would not want to live without their banking apps. 

From monitoring account balances and credit cards to depositing checks on their phones and taking advantage of rewards and discounts – 90% of consumers said they prefer managing their finances in a single place. 

“People are using mobile banking apps more than ever and rely on them to manage their finances, including sending money to family and friends and managing everyday transactions,” said Sonali Divilek, Head of Digital Products and Channels at Chase.

Active banking app users globally

Source: Statista / Enterpriseappstoday

87% of consumers use their banking app at least once a month or more.

The demographic with the highest preference for mobile banking is millennials with 93% saying they use their banking app at least once a month or more, followed by Gen X (90%), Gen Z (89%) and Boomers (84%). 

In fact, managing credit is a top priority for millennials. 

Some of the main tasks consumers use their apps for are card replacements (54%) and paying other people (50%).

What banking customers use their apps for

Source: Statista / Truelist

Digital payments are up

A whopping 82% use digital payments once a month or more and 47% say they pay digitally once a week or more often. 

Four in five payments to other people involve sending money to family and friends (54%). 

The digital payment methods that are most often used include tap and pay (60%), peer payments (59%), payments through apps (58%) and in-store mobile wallets (41%). 

Consumers prefer digital banking

Source: Forbes

Chase also found that in 2022 consumers spent more on travel and entertainment compared to 2021 with Gen Z and millennials more likely to increase their spending in that area. However, consumers are looking for ways to save with two in three researching deals and discounts and over half using reward points.  

Key takeaways

• 90% of consumers said they prefer managing their finances in a single place
• 87% of consumers use their banking app at least once a month or more
• 82% use digital payments once a month or more and 47% say they pay digitally once a week or more often

The post 90% of users prefer their banking apps and here’s why appeared first on Business of Apps.

Apple announced further changes to its App Store pricing on Friday. The changes will affect app and in-app purchases in the UK and other countries and are scheduled to be rolled out in February. So what exactly is happening?

Here’s where apps are getting more expensive 

In a note shared with developers, Apple announced that prices of apps and in-app purchases on the App Store will increase in Colombia, Egypt, Hungary, Nigeria, Norway, South Africa, and the UK. This excludes subscription renewals. 

By the end of January, proceeds are set to rise for developers selling in Cambodia, Kyrgyzstan, Indonesia, Singapore, South Korea, Tajikistan, Thailand, and Uzbekistan.

The price hikes are a reflection of changes in taxes and foreign exchange rates. The App Store allows developers to sell their apps across 44 currencies. Periodically prices need to be adapted to ensure they stay equalised across the App Store’s 175 storefronts.

Average prices for apps in the Apple App Store as of September 2022

Source: Statista

The way Apple plans to implement these changes is by estimating and removing taxes based on the information developers provided. Changes will be visible in the Pricing and Availability section of My Apps and developers can adjust the prices of their apps and in-app purchases from here. 

Some app prices are coming down

App Store pricing has been subject to fluctuation. In 2022, the average price of in-app purchases jumped 40% over 2021 while Google Play saw a 9% rise. 

iOS in-app purchase prices increased in 2022

Source: Apptopia, Adjust

But prices for developers aren’t all going up. App pricing in Uzbekistan will decrease as a consequence of the lowered value-added tax rate from 15% to 21%. Apple said developers’ proceeds would be adjusted accordingly and based on tax-exclusive pricing. 

While prices in Ireland, Luxembourg, Singapore, and Zimbabwe won’t change, proceeds are being adjusted due to tax changes.  For example, Ireland reduced its value-added taxes on electronic newspapers and periodicals from 9% to zero while Luxembourg lowered its value-added tax rate from 17% to 16%.

Key takeaways

• Apple announced prices of apps and in-app purchases on the App Store will increase in Colombia, Egypt, Hungary, Nigeria, Norway, South Africa, and the UK
• Apple plans to implement these changes is by estimating and removing taxes based on the information developers provided
• App pricing in Uzbekistan will decrease as a consequence of the lowered value-added tax rate from 15% to 21%

The post Will Apple’s changes to App Store pricing affect your apps? appeared first on Business of Apps.

User churn is a major issue for app developers. Around half of Android apps were uninstalled within 30 days of download in 2022 and half of those were removed within just 24 hours finds a new report from AppsFlyer. Let’s take a closer look.

Some app categories fare better than others

The App Uninstall Report found that 49% of Android apps were uninstalled within a month after download and of those, 49% were uninstalled within just one day. Whilst that number seems staggering, it’s still 8% lower compared to 2021. 

Android app uninstalls year-on-year

Source: AppsFlyer

Gaming apps saw some of the highest uninstall rates (66%) within 30 days after download, followed by social (60%), education (53%), utilities (53%) and finance apps (45%). Travel apps, on the other hand, saw some of the highest brand loyalty at 31%.

AppsFlyer says that hyper-casual and casual gaming titles suffer because of their reduced shelf life of these titles. 

Uninstall rates by app category

Source: AppsFlyer

Unsurprisingly, uninstall rates of organic users were lower at an average of 28% among all categories. Organic users typically show higher intent than non-organic ones. The difference between organic and non-organic users in gaming was just 13% compared to 30% for non-gaming apps. 

The where and the when

Uninstall rates were higher in developing markets with Nepal, Bangladesh and Kazakhstan showing the highest rates of user churn. The average uninstall rate in developing countries was between 26-43% compared to 36% in developed nations. This may be due to the more dominant use of iOS devices and their higher storage which results in users having to delete fewer apps to free up space.

Day 1 is typically the highest for uninstalls across all categories. Day 1 rates were particularly high in finance apps at 27% compared to the average of other verticals. 

Overall Day 1 uninstalls

Source: AppsFlyer

How to optimise your app marketing for fewer uninstalls

The key takeaway for app marketers is optimisation. With uninstalls being a major issue, it’s important to keep measuring them using attribution options. First interactions with users should be designed to encourage lasting connections. Apps must deliver on their promise in order to be successful and be updated in good time. User feedback proves valuable in doing the latter. It’s worth bearing in mind user privacy and security. 

Key takeaways

• 49% of Android apps were uninstalled within a month after download 
• 49% of Android apps were uninstalled within just one day
• Gaming apps had the highest uninstall rates (66%) within 30 days after download

The post Half of Android apps are uninstalled within 30 days after download appeared first on Business of Apps.

Google and Apple have failed yet again to stop dubious apps from entering their app stores, highlighting the failures in the stores’ moderation processes. This time it involves ChatGPT which is a natural language processing tool created by OpenAI, the same company that developed DALL-E. So what’s the problem?

ChatGPT apps flood the stores

ChatGPT is an important tool that elevates conversational AI, enhancing it for search and everyday work tasks. It’s currently available to use for free via the website. No official app has been launched.

But that hasn’t stopped a whole slew of Google Play and App Store developers from posting apps with ChatGPT in their names. These apps include other chatbots that show ads or offer subscriptions. They are either fraudulent or violate OpenAI’s trademark. 

Daily installs of ChatGPT apps

Source: Appstorespy

The findings have been posted by app market intelligence firm Appstorespy.  

Do Apple and Google care?

Appstorespy then reached out to Google and Apple to find out if the companies had done anything about these fraudulent apps. Google removed two dozen of such apps including an unofficial ChatGPT app that had already gotten 138,000 installs. Some developers have been quick to rename their apps such as Open Chat which has 170,000 installs. 

However, others can still be found. ChatGPT AI Writing Assistant has already generated some $10,000 in revenue by selling supposed credits for ChatGPT.

By mid-January, fake ChatGPT apps attracted a total 67,000 installs per day on Google Play.

Daily installs of ChatGPT apps picked up again in January

Source: Appstorespy

Meanwhile, Apple has blocked just 4 of the 49 apps with ChatGPT in the title. 

Key takeaways

• ChatGPT apps are available on the App Store and Google Play even though OpenAI has launched no such app
• Google has taken action to remove some of these apps, Apple removed 4 out of 49 by mid-January
• Fake ChatGPT apps attracted a total 67,000 installs per day on Google Play in January

The post Google and Apple fail to remove fraudulent ChatGPT apps from their app stores appeared first on Business of Apps.

Marketers anticipate spending significantly more of their budgets on digital audio in 2023, followed by digital video, according to the latest industry report from Integral Ad Science. Social media and mobile remain key priorities for marketers this year, but experts acknowledge that there are many challenges ahead. Let’s dive in. 

Marketing concerns in 2023

To understand spending for app and mobile campaigns a little better, it’s worth taking a look at the main concerns marketers continue to face this year. 51% consider decreasing access to consumer data and cookies a challenge while 33% cite ad placement alongside risky content as a problem.

Which of the following will be major digital media challenges for your organization?

Source: IAS

Experts believe social media will face some serious challenges this year in light of increasing privacy issues. The Metaverse is also considered a more challenging media type as it’s relatively new and therefore its limitations and possibilities aren’t well understood.

Social media remains an essential ad strategy

A whopping 91% of media experts plan to advertise on at least one social media platform this year. However, economic headwinds are dampening social media ad spend growth. It’s expected to grow 8% this year in the US, down from 37% in 2021. 

Overall, it seems marketers are keen to distribute their ad spend more evenly across different platforms including Facebook and YouTube, but also Twitter and instargarm. WhatsApp is the only platform that shows an intent for increasing usage this year. 

On which platforms will your organization buy advertising or monetize content?

Source: IAS

For 86% of marketers view ability is an important metric when assessing campaigns and 67% are satisfied that social media platforms deliver the necessary transparency on viewability metrics. However, a third are concerned about social media being more vulnerable to fraud and brand risk this year. 

Eroding consumer trust is another major issue in social advertising according to 77% of experts. As a consequence, Facebook will see the highest adjustment in spending as trust appears to be declining more sharply here. 

Key takeaways

• 51% of marketers find decreasing access to consumer data and cookies a challenge
• 91% of media experts plan to advertise on at least one social media platform this year
• 77% consider eroding consumer trust a major issue in social advertising

The post Trust in social media among the top app and mobile marketing concerns in 2023 appeared first on Business of Apps.