the state of play - amazon s3 · • google play quarterly app revenue more than doubled from q1...

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The State of Play: A look at the growth of Google Play

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The most accurate market data available for the app stores appannie.com/intelligence

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Apps, downloads and revenue. Google Play’s phenomenal growth over the last year.

Confidential - Property of App Annie. Do not distribute. ©2014 App Annie 3

Publishers are launching an increasing number of apps on Google Play


Jul 2013

Aug 2013

Sep 2013

Oct 2013

Nov 2013

Dec 2013

Jan 2014

Feb 2014

Mar 2014

Apr 2014

May 2014

Jun 2014

Number of live apps on Google Play

•  There are now over 1.5 million apps available on Google Play •  The number of apps grew by around 60% between July 2013 and June 2014

Google announced that Google Play surpassed

1 million apps

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1.5x year on year

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Worldwide quarterly Google Play app downloads

The worldwide market for Google Play downloads continues to grow rapidly


•  Quarterly app downloads from Google Play grew approximately 50% from Q1 2013 to Q1 2014

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2.4x year on year

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Worldwide quarterly Google Play app revenue

Revenue is soaring, outpacing download growth


•  Google Play quarterly app revenue more than doubled from Q1 2013 to Q1 2014

Growth in Google Play downloads and revenue presents an expanding opportunity for app publishers

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Worldwide opportunities. Google Play has expanded rapidly across a range of markets over the past year.


1.2x growth

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United States Brazil Russia South Korea India

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Quarterly Google Play app downloads by country Top 5 countries by Q1 2014 downloads

Q1 2013 Q1 2014

Advancing economies are leading download growth among Google Play’s top markets


•  All the largest Google Play markets experienced growth in the past year •  Brazil made significant gains to become the second largest market for Google

Play downloads

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2.4x growth

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Quarterly Google Play app revenue by country Top 5 countries by Q1 2014 revenue

Q1 2013 Q1 2014

Established markets are experiencing phenomenal growth in revenue


•  Japan continues to dominate Google Play revenue •  After trailing South Korea since Q1 2013, growth in the United States propelled

it back to second position for Google Play revenue in Q1 2014

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Rapidly emerging markets offer new opportunities for publishers


Google Play App Downloads Google Play App Revenue Rank Q1

2014 Country Rank Change vs. Q1 2013 Country Rank Change

vs. Q1 2013

1 United States - Japan -

2 Brazil +5 United States +1

3 Russia +1 South Korea -1

4 South Korea -2 Germany +1

5 India -2 United Kingdom -1

6 Mexico +2 Taiwan N/A*

7 Turkey +10 France -1

8 Germany -2 Hong Kong +2

9 Indonesia +7 Australia -2

10 Japan -5 Russia -1

* Paid apps returned to Google Play in Taiwan in February 2013

•  Brazil, Mexico, Turkey and Indonesia experienced phenomenal growth in downloads, driving them up the rankings

•  Taiwan and Hong Kong showed significant potential for generating Google Play revenue

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Category growth. Games dominate Google Play, but opportunities outside of Games are expanding.


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Worldwide quarterly Google Play app revenue

Apps outside of Games Games

Games accelerate Google Play revenue growth


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Worldwide quarterly Google Play app downloads

Apps outside of Games Games

•  In Q1 2014, Games accounted for almost 90% of Google Play app revenue, up from around 80% in Q1 2013

•  Apps outside of Games provided about 60% of Google Play app downloads in Q1 2014

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Although Games dominate revenue gains, growth is almost universal across categories


•  Messaging apps supported high revenue growth for Communication and Social •  Tools and Communication categories displayed particularly rapid download

growth

Communication

Tools Entertainment

Social

Photography

Music & Audio

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Indexed Downloads

Quarterly Google Play download and revenue growth by category Top 6 categories outside of Games by downloads, Q1 2014

Q1 2013 Q1 2014

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Freemium on the rise. The freemium business model continues to grow across Google Play.


Freemium continues to grow in downloads and revenue


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May 2013 May 2014

•  Freemium apps contributed almost half of Google Play downloads in May 2014 •  Revenue from freemium apps grew to around 98% of total worldwide Google

Play revenue in May 2014

Worldwide monthly Google Play downloads Worldwide monthly Google Play revenue

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Freemium Free Paid Paid with In-App Purchases

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Asian markets lead the way, but freemium dominates all major markets


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Brazil

Russia

United States

Japan

South Korea

Monthly Google Play app revenue by country, May 2014

Freemium Paid Paid with In-App Purchases

•  Asian markets have a exceptionally high proportion of revenue from freemium apps

•  Emerging Google Play markets such as Brazil, Mexico and Turkey tend to have a slightly lower proportion of revenue from freemium apps

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Key Takeaways.


Google Play’s worldwide growth is extending opportunities for app publishers


•  An ever-increasing number of app publishers are utilizing Google Play –  There are now well over 1 million apps available on Google Play

•  App downloads and revenue from Google Play increased dramatically over the past year –  Markets such as Brazil, Russia, Mexico, Turkey and Indonesia are driving

growth in app downloads from Google Play –  Google Play is experiencing rapid expansion of monetization in established

markets such as Japan, the United States and South Korea

•  Games played a major role in the acceleration of Google Play revenue growth, but almost all app categories experienced expansion –  Games accounted for almost 90% of revenue in Q1 2014

•  The freemium business model advanced its domination of Google Play app revenue, and represents a growing proportion of downloads –  Asian markets lead the way in generating freemium revenue

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Thank you.


the state of play - amazon s3 · • google play quarterly app revenue more than doubled from q1...

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