APP INSIGHT REPORT

Simplifying Mobile

APP INSIGHT REPORTQ3, 2013

APP INSIGHT REPORT

TABLE OF CONTENTS

01

02

03

InMobi App Insight Report, Q3 2013

Adding up the world : Global app promotion trends

Top Trends & insights to drive downloads effectively for your Apps

04 Glossary

Bang on Target:  Sites you should target for maximum conversions

Creative Matters : Ad formats that work best for your app

Tips & Tricks to win on Tablets

Cut costs without cutting corners

Market Spotlight : Taming the Chinese Dragon

APP INSIGHT REPORT

As app developers, you’ve spent time designing, developing and delivering your app. Now you are on the brink of beginning the next important phase – acquiring users. But guess what, the mobile app ecosystem is a highly competitive marketplace. App developers constantly jostle for their niche in an already crowded market. Carving out that space is not easy unless you have the right tools of knowledge in your pocket and know what you need to, to be successful in this effort. This is where the InMobi App Insight report comes in.

As part of the first edition of this report, we have analyzed thousands of app promotion campaigns that ran on our network. Following thorough number-crunching and in-depth research, we present data that is visually arresting, quantitatively significant and vital to your app’s success. We’ve selected global data from Q2 2013 to arm you with knowledge of the top trends in app promotion campaigns that can help you effectively drive app downloads globally. Aligning your app with these insights will make your product stand out in the vast ecosystem and give your app that competitive edge!

InMobi App Insight report Q3 2013

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APP INSIGHT REPORT

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

Adding up the world :Global App Promotion TrendsOver 50 Million app installs were delivered on the InMobi network in 2013 YTD.

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APP INSIGHT REPORT

Chart 1: % of App Downloads By Country, Q2 2013

Network highlight: The top 5 countries accounted for over 60% of the overall app downloads

33.8% USA

9.5% India

9.1% Japan

7.7% China

4.6% Indonesia

4.2% South Korea

3.5% Canada

3.0% United Kingdom

2.5% Australia

2.4% Spain

2.1% France

1.9% Mexico

1.6% Germany

1.5% Italy

1.2% Brazil

1.1% Sweden

1.0% Thailand

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APP INSIGHT REPORT

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

Games represented the most downloaded app category on the InMobi network in Q2 2013

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APP INSIGHT REPORT

Chart 2: % of App Downloads By Category, Q2 2013

Games

64.0%

Communication

11.3%

Social

1.1%

Travel

0.9%

Consumer Packaged

1.1%

Mobile Content & Others

1.8%Telecom

6.8%

Entertainment

4.0%

Business & Productivity

2.6%

eCommerce

2.7%

Retail

0.5%

Health & Fitness

0.4%

Sports

0.4%

Education

0.3%

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APP INSIGHT REPORT

Top trends & insights to drive downloads effectively for your apps

06

APP INSIGHT REPORT

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

01 Creative Matters: Ad formats that work best for your app

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APP INSIGHT REPORT

1a. Interstitials rule the roost Upto 25% Click through and 10% Conversions seen on interstitial ads on the InMobi network

Lifestyle2.1%

Games2.7%

Weather3.2%

Music & Audio5.2%

Productivity5.0%

Health & Fitness

5.6%Tools

3.3%

Sports3.0%

Education2.1%

Books & References

2.0%Entertainment1.9%

News & Magazines

1.7%Social

Networking

1.0%Media & Video1.6%

Comics8.0%

Chart 3: Average Conversion Rates On Interstitials Across App Categories – Q2 2013

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When it comes to promoting your app, we notice that there’s something almost magical about interstitial ads. Maybe it’s the way they expand to overtake your whole screen with a rich HTML5 image. Maybe it’s the way they demand attention in an era of quick glances and endless scrolling.

While top game developers on the inmobi network have seen upto 25% click through and 10% conversion, this ad format is also seen to work very well for a wide range of content. On our network, we noticed average conversions as high as 8% for comics and 5.6% for health & fitness apps.

APP INSIGHT REPORT

Chart 4: Average Conversion Rates Across Ad Formats by OS, Q2 2013

Average Conversion Rates on iOSAverage Conversion Rates on Android

1.40%

1.65% 1.73%1.99%

1.12%

0.63%

3.06%

1.58%

Banner Ads Expandables Interstitials Text Ads

On Android, the average conversions on interstitial ads are almost double that of other ad formats

Quick Tip: For apps with short app sessions, static interstitials get the point across immediately and are found to be the most effective in driving engagement. On the other hand, for more engaging apps with longer app sessions, video interstitials deliver higher eCPMs. Static interstitials typically are observed to provide CTRs as high as 20% while video-interstitials are found to deliver superior ad engagement.

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APP INSIGHT REPORT

Well, interstitials are the in thing - no denying that. But does that warrant doing away with good old banner ads?

On InMobi’s network, we notice banners continue to work well for a wide range of non-gaming content on both iOS and Android.

1b. Don’t do away with banners, just yet!

Software Software

Weather Business

Travel & Local Education

Shopping Medical

Medical Finance

Tools Communication

Business Catalogs

Lifestyle Health & Fitness

Productivity Tools

Finance Weather

News & Magazines Travel & Local

2.8%2.5%2.2%2.2%2.2%2.0%2.0%1.9%1.6%1.5%1.7%

1.7%1.8%1.8%

2.3%

2.4%

1.8%

2.3%

2.4%2.6%3.3% 3.5%

Quick Tip: For any app promotion campaign, we recommend using a good mix of HD banners and interstitials to ensure you reach audiences on a wide variety of handsets. Also, rotating ad formats can reduce ad fatigue and help drive higher ad engagement.

Chart 5: Conversion Rates On Banners Across Non Gaming Apps–By OS, Q2-2013

APP INSIGHT REPORT

The mobile consumer today shunts his presence on different mobile sites. So where do you find the right users for your app?

In this report, we specifically analysed conversions for games, social and entertainment apps on iOS to understand which sites you should target to drive maximum installs while promoting your app.

InMobi Insight: Almost all kinds of sites delivered good downloads on games - suggesting that the audience for this category is diverse and widespread. Sports and health & fitness sites delivered maximum downloads for social apps. On the other hand, communication sites delivered the most downloads for entertainment apps.

02 Bang on Target: Sites you should target for maximum conversions

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APP INSIGHT REPORT

215

325

206

306

197

213

192

141

157

118

155

101

150

146

137

Weather

Health & Fitness

Sports

Sports

Tools

News & Magazines

Travel & Local

Media & Video

Lifestyle

Finance

Shopping

Tools

Business

Productivity

Media & Video

Gaming Apps Site Category

Social Apps

Chart 6: iOS CVR Index Across Site Category By Content, Q2 2013

CVR Index

Site CategoryCVR Index

409

205

145

127

116

110

100

Communication

Education

Sports

Media & Video

Catalogues

Weather

Games

Entertainment Apps Site CategoryCVR Index

Note: Index calculated with gaming category as a base.

APP INSIGHT REPORT

“Over 1,146 unique app download campaigns ran across the InMobi network on tablets, i.e., one out of every three app promotion campaigns on the network also ran on tablets.”

03 Tips & Tricks to win on Tablets

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APP INSIGHT REPORT

Why Advertise on Tablets?

More Engaged Users

Garnering a significant amount of timeshare due to higher user engagement, tablets are the most preferred medium to

consume media

= 90 Mins

= 50 Mins

= 58 Mins

Exponentially Expanding High Quality User base2011

2012

2013

28.3M

74.1M

126.2M

In tier 1 cities every user will own a tablet by the end of 2013, generating 3x more download revenue than smartphones

Tablet Owners

Higher Inclination To Consume Ads

Users are at least 3x more open to consuming ads on tablets compared to smartphones

3x

CTR

Phones Tablets

Source: A Potrait of Today’s User Wave II, OPA, June 2012

Source: Pew Research, 2012

Source: The Adfonic AdSnap Tablets, Q1 2013

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APP INSIGHT REPORT

Tablets & connected devices accounted for 14.1% of total impressions on the InMobi network in Q2 2013, with Apple remaining the top manufacturer in tablet category with the largest share of impressions.

Apple still leads the pack, but Android tablet usage is catching up

14.1%

21.0%

65.0%

Smartphones Tablets & Connected Devices

Feature Phones

+0.2-0.9

Chart 7 : Device Share Of Impressions, Q2 2013

+ - Percentage point change since Q1 2013

Q2 2013Q1 2013

Device Share of Impressions, Q2 2013

15

+0.7

APP INSIGHT REPORT

Top Tablet Manufacturers, Q2 2013

53.9%Apple

28.4%Samsung

4.1%Amazon

2.1%Acer

1.2%Asus

3.0%Google

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APP INSIGHT REPORT

USA Thailand IndonesiaChina UnitedKingdom

Japan France RussianFederation

SaudiArabia

Malaysia

15.4%

7.7%6.9%

4.3% 4.0%

3.2%3.0% 2.9% 2.9% 2.8%

53.9%

10.2%

7.6%

3.6%2.9%

2.1%1.8% 1.6% 1.2% 1.0% 1.0%

iPadGalaxyTab 2 7.0

GalaxyTab 2 10.1

GalaxyNote 10.1 Nexus 7

GalaxyTab 10.1

GalaxyTab

Kindle Fire HD 7

Kindle Fire

GalaxyTab 7.0 Plus

Kindle Fire 7

Chart 8: Top Countries in terms of Tablet Usage on InMobi Platform, Q2 2013

Chart 9: Top Tablet Devices By Impressions On Inmobi Platform, Q2 2013

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APP INSIGHT REPORT

Chart 10: Tablet CTR vs. Network CTR Across Ad Formats, Q2 2013

+/-(% increase/decrease)

Consumers are increasingly utilizing tablets for shopping, game play and communication. The same optimized banner ad on a tablet app may perform completely different from an ad on a smartphone app. Knowing your target demographic on tablets or smartphones and what type of ads they engage with the most is crucial to designing an effective app promotion strategy on tablets.

A quick comparison between tablet CTRs and average ad network CTRs reveal that text ads don’t work well on tablets. However, interstitial ads deliver solid results with almost 46% higher CTR for tablet campaigns.

Ads that work well on tablets

Tablet CTR vs. Network CTR (% increase/decrease)

Text Ads

-37.0%

Interstitial

46.0%

Rich Media Ads

23.0%

Banner Ads

13.0%

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APP INSIGHT REPORT

Top 3 tips to make your tablet campaigns work:

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

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APP INSIGHT REPORT

Agreed it’s a competitive marketplace out there. You don’t know your user’s Lifetime Value (LTV) and can’t decide how much to spend on acquiring users. But not all apps are created equal. Depending on what kind of app you have built and the country you target, the cost to drive a download ( CPD) could vary significantly.

04 Cut costs without cutting corners

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APP INSIGHT REPORT

174 United Kingdom

127 Australia

100 USA

95 New Zealand

87 Malaysia

84 South Korea

84 Vietnam

81 Japan

77 Hong Kong

75 France

71 Singapore

60 China

56 Germany

40 India

Chart 11: CPD Index By Country, Q2 2013

Note: Index calculated using USA as base

Indexed against the costs in the US, our research indicates that driving a download in most markets, especially in China, Japan and Korea is relatively cheaper in comparison to the US market , with the UK representing the most expensive markets and India the least Expensive.

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APP INSIGHT REPORT

Chart 12: CPD Index By Category, Q2 2013

Note: Index is calculated using Games as a base

4229 Travel

4114 Financial Services

2091 Telecom

1040 Automotive

580 Health & Fitness

152 Social

76 Sports

100 Games

112 Retail

122 Books & Reference

CPDs also vary drastically by the type of content you promote and depend on the average lifetime value (LTV) of the app’s user. Higher the LTV, higher the CPD tends to be. For example, a travel app developer is usually willing to pay much more to acquire a user, compared to the average game developer, since the expected revenues from a loyal user can be much higher, at times upwards of $100 USD. This reflects in the average CPDs we notice on our network, with travel and financial service apps topping the charts on CPDs bid on the network.

139 Business & Productivity

262 Consumer Packaged Goods

258 Mobile Content - Wallpaper

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APP INSIGHT REPORT

And indeed, she did just that! According to IDC, in February 2013, China overtook the US to become the world’s largest smart device market, with 246 million devices (against the US 230 million) and accounted for 26.5% of all smartphone shipments last year.Concurrent with the growth in smart devices, mobile applications are also growing at an astronomical rate. In addition, the falling price of the iPhone and the increasingly capable low to mid-range Android handsets now available have further propelled this growth. As attractive as the market may be, China is no easy beast to tame!

Cultural barriers, piracy concerns, fragmented app distribution ecosystems and the need for localization have prevented most app developers from entering this market. The common perception that Chinese app users were not willing to pay for content and that app usage levels were not high enough to warrant investments in heavy marketing, have kept most developers away from China.

05 Market Spotlight: Taming the Chinese Dragon“Let China sleep, for when she awakes, she will shake the world.” Napoleon

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APP INSIGHT REPORT

For starters, there are several differences (and similarities, too) between the way Chinese users behave in comparison to their counterparts. Here are the top 3 insights from our recent consumer research in China that can help you drive downloads more effectively in this country.

1. Contextually recommended apps are the most preferred by Chinese users.

Know Thy Users

Banner ads which appear at the top of the screen18% 24%A full screen ad which appears briefly, while the app is loading20% 19%

A short video clip17% 14%Survey Question: When Searching For Mobile Apps To Download, Which Types Of Advertisements On Your Mobile Phone Would Be The Most Helpful?

Ads which recommend specific apps for me, based on website I am browsing on my phone

39% 42%Ads which include multimedia content such as games, audio & pictures

24% 28%

Mobile Ads that Influence app downloads

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APP INSIGHT REPORT

App Store reviews and rating50% 59%

App featured by App Store57% 60%

2. If you want your users to download your app, get your app featured on the Chinese App Store!

Price41% 33%

Description & screenshots48% 43%

App is ranked high on App Store chart40% 46%

Reviews from magazines and website25% 32%Survey Question: What Factors Have The Biggest Influence When You Decide Whether To Download A Specific App?

Factors that influence the app download decision

25

37% 26%Recommendation from family and friends

APP INSIGHT REPORT

3. App Stores, mobile websites and recommendations from friends and family are the top 3 ways in which Chinese users discover apps.

Browsing the App Store55% 54%

Recommendation from friends & family33% 23%

Advertisments on my mobile phones13% 20%

Magazines & newspapers10% 4%

App Discovery

5% 3%

Websites I access through laptop/desktop computer23% 30%

Websites I access through my mobile phones55% 44%

Recommendation from social media (facebook, twitter, etc.)18% 12%

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Survey Question: How do you usually find new apps to download to your phone?

None of these

APP INSIGHT REPORT

Top 3 Tips to Win in the Chinese App Market

Localize your app: While translating apps into simplified Chinese is essential, localization should go beyond simple translation – it is important to connect with users’ emotions and culture. Customizing with Chinese avatars and timing app launches with Chinese festivals is a good strategy.

0102 Go freemium to beat piracy: Paid apps are quickly pirated in China

with up to 42% of Chinese iOS devices being jail broken and 17% of apps copied or pirated. Overcome piracy by using a freemium monetization model and by making frequent updates to your app.

For more insights on China and how to win in this complex market, download our whitepaper “What it takes to win in the Chinese App Market” here.

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List your app on the right stores: With over 500 stores, China has one of the most complex and fragmented Android app store ecosystems in the world. Carefully select the right app stores to reach the right audience. The largest App Stores include Anzhi, AppChina, Gfan, Hiapk, Mobile Market, Nduoa, Snappee, Tencent, Wandoujia, Baidu App Store, Opera Mobile App Store, and Pandaapp.

03

APP INSIGHT REPORT

Glossary of Terms1. CTR (Click Through Rate) = (Clicks/Ad Request)*1002. CVR (Conversion Rate) = Downloads/Clicks3. CPD (Cost per Download) = Total Burn/Downloads

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APP INSIGHT REPORT

Glossary of Terms1. CTR (Click Through Rate) = (Clicks/Ad Request)*1002. CVR (Conversion Rate) = Downloads/Clicks3. CPD (Cost per Download) = Total Burn/Downloads

InMobi enables the world’s leading brands, developers, and publishers to engage global consumers through mobile advertising. InMobi platforms leverage advances in big data, user behavior, and cloud-based architectures to simplify mobile advertising for its customers. Recognized by MIT Technology Review as one of the 50 Disruptive Companies of 2013, InMobi is the world’s largest independent mobile ad network, engaging 691 million consumers across 165 countries.

To learn more, visit www.inmobi.com, follow us on Twitter @InMobi, or discover the latest mobile insights at www.inmobi.com/insights/. Developers, start monetizing instantaneously by downloading our SDK at www.inmobi.com/SDK.

About InMobi

OFFICE WITH CREATIVE TEAM

INMOBI OFFICE

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APP INSIGHT REPORT

Contact Us: Arun Pattabhiraman Global Marketing Lead - Performance Advertising & App Developers, InMobi email: arun@inmobi.comFor further queries on research, please write to research@inmobi.com.