First presented at Casual Connect 2012 Seattle 25 July 2012 by Bertrand Schmitt, CEO, App Annie Utilizing App Annie Intelligence, an advanced market data product, we take the audience through the macroeconomic trends in today's app stores to explore the important themes of distribution and monetization for international mobile apps. Casual Connect attendees will learn about: - top countries by revenue, ARPU and downloads - fastest growing apps in the USA, Asia and Europe - top/fastest-growing gaming and non-gaming categories - top countries/categories - % of the US revenue and downloads by made by the US publishers

1. Mobile App Stores
Economy
Casual Connect Seattle
24-26 July 2012
CONFIDENTIAL PROPERTY OF APP ANNIE - DO NOT DISCLOSE Ⓒ AppAnnie 2012
Friday, 27 July 12

2. Agenda
1. About
App
Annie
2. Just
how
Big
are
iOS
Games?
3. Seasonal
Trends
on
iOS
4. iOS
versus
Google
Play
for
Games:
Who
is
winning
in
US,
UK,
and
Japan?
Friday, 27 July 12

3. Content Distribution over the Years
1950 S 2000 S 2010 S
1950 S 2000 S
Broadcast Open Web
Broadcast
Market data for TV Open Web
Market data for websites,
Market dataetc. TV
ratings for visits, visitors etc.
Market data for websites,
ratings etc. visits, visitors etc.
Digital App Stores
Market data for all kinds of digital app content
including games, music, books, software etc.
Retail
market data for physical
consumer goods
Retail
market data for physical
consumer goods
As
media
landscapes
evolve,
so
should
Market
Data
In
2011,
App
Annie
raised
a
Series
A
funding
round
led
by
IDG
Capital
Partners.
Friday, 27 July 12

4. #1 app store analytics and market data
for iOS and Google Play, and growing!
App
&
Game
Publishers
VCs,
Media
Agencies
OEMs,
Carriers,
Pla@orms
SelecBon
of
Paid
Customers
80%
of
the
Top
100
iOS
Publishers
WW
125,000+
apps,
14,000+
publishers.
Largest
userbase
in
the
US
Friday, 27 July 12

5. App Annie Products on iOS and Google Play
K
o SD
N
Tracks
app
performance:
Analyze
global
app
Advanced
market
sales,
downloads,
reviews stores
rankings intelligence
data
Used
by
more
than
125,000+
Tracks
rankings
of
850,000+
The
most
accurate
market
apps
and
14,000+
publishers apps esHmates
for
app
stores
A
unique
suite
of
freemium
services
for
the
app
industry
Friday, 27 July 12

6. App Annie Intelligence
The most accurate estimates available for app stores
CompeBtor
Strategy Follow
compeHtors
and
calculate
market
share
!
InternaBonal
Strategy Plan
internaHonal
expansion
based
on
ROI,
growth
trends
Product
Por@olio
Strategy Understand
what
kinds
of
IP
are
commercially
successful
MoneBzaBon
Strategy Know
what
moneHzaHon
strategies
actually
work
Ad
Buying
Strategy How
many
downloads
to
get
into
Top
25?
Subscribed
by
7
of
the
Top
10
iOS
publishers
worldwide!
Friday, 27 July 12

7. Agenda
1. About
App
Annie
2. Just
how
Big
are
iOS
Games?
3. Seasonal
Trends
on
iOS
4. iOS
versus
Google
Play
for
Games:
Who
is
winning
in
US,
UK,
and
Japan?
Friday, 27 July 12

8. Top Countries WW for iOS Games
Revenues Downloads
1.
United
States 1.
United
States
2.
Japan 2.
China
3.
United
Kingdom 3.
Japan
4.
Australia 4.
United
Kingdom
5.
Canada 5.
France
6.
Germany 6.
Germany
7.
France 7.
Canada
8.
China 8.
Australia Japan
and
China
are
9.
Russia 9.
Italy
right
behind
the
US
on
10.
Italy 10.
Russia
11.
South
Korea 11.
Thailand revenues
and
downloads
12.
Singapore 12.
South
Korea
13.
Switzerland 13.
Taiwan
14.
Taiwan 14.
Mexico
15.
Netherlands 15.
Spain
16.
Mexico 16.
Saudi
Arabia
17.
Hong
Kong 17.
Brazil
18.
Brazil 18.
Netherlands
Based
on
App
Annie
Intelligence
19.
Thailand 19.
Hong
Kong worldwide
data,
Games
Category,
May
2012
20.
Sweden 20.
Singapore
Friday, 27 July 12

9. APAC vs Europe vs US on iOS Games
Revenues Downloads
APAC US
US 35% 34% APAC
47% 44%
Europe Europe
18% 22%
Countries
Included:
Top
14
APAC
countries,
Top
9
European
countries
and
US
US
leads
on
revenue
Based
on
App
Annie
Intelligence
worldwide
data,
Games
Category,
May
2012
APAC
leads
on
downloads
Friday, 27 July 12

10. Revenue per Download for iOS Games
$2.00$ $1.90&
Japan
generates
nearly
3x
the
revenue
$1.80$
$1.60$
per
download
of
the
US!
$1.40$
$1.20$
$1.00$
$0.80$ $0.69& $0.67&
$0.60$ $0.47& $0.49&
$0.37& $0.35& $0.34&
$0.40$ $0.23& $0.22&
$0.20$ $0.07&
$0.00$
&
n&
&
a&
&
n&
a&
&
&
&
y&
lia
m
ce
es
ly
W
re
an
in
pa
ai
Ita
do
at
an
W
ra
Sp
Ch
Ko
rm
Ja
St
st
ng
Fr
h&
d&
Au
Ge
Ki
ut
ite
d&
So
Un
ite
Un
Gross
Revenue
/
Total
Downloads
of
apps
moneJzing
on
the
App
Store
Based
on
App
Annie
Intelligence
worldwide
data,
Games
Category,
May
2012
Friday, 27 July 12

11. Revenue of #1 Top Grossing Game across Countries
Index
120"
＊
100"
The
top
app
in
the
US
makes
most
money
80"
Japan
not
far
behind
due
to
very
high
ARPU
60"
40"
20"
0"
United' Japan' United' China' Australia' Canada' France' Germany' Italy' Russia'
States' Kingdom'
Based
on
App
Annie
Intelligence
worldwide
iOS
data,
Games
Category,
May
2012
* Set iOS US Revenue as Index=100
Friday, 27 July 12

12. Top 10 non-US publishers by Revenues on iOS
(in Alphabetical order)
• CAPCOM
(JP) • PlayJka
(IL)
• Game
Insight
(RU) • Rovio
(FI)
• GameloX
(FR) • SEGA
(JP)
• GREE
(JP) • SQUARE
ENIX
(JP)
• HalZrick
Studios
(AU) • Tap4Fun
(CN)
Percentage
of
revenue
in
the
US:
• Range
=
1%
to
61%
• Average
=
32%
Some
of
the
top
global
game
publishers
are
making
very
li`le
money
in
the
US,
the
world’s
largest
iOS
games
market
Based
on
App
Annie
Intelligence
Worldwide
EsJmated
Revenues,
Q1
2012
Friday, 27 July 12

13. Top 10 US Game publishers by Revenues on iOS
(in
AlphabeJcal
order)
• Backflip
Studios • Pocket
Gems
• Chair
Entertainment • Storm8
• Disney • Tinyco
• Electronic
Arts • Z2Live
• Glu
Games • Zynga
Percentage
of
revenue
outside
of
US:
• Range
=
46%
to
79%
• Average
=
56%
The
top
US
publishers
make
almost
half
their
revenues
outside
of
the
US
Based
on
App
Annie
Intelligence
Worldwide
EsJmated
Revenues,
Q1
2012
Friday, 27 July 12

14. iOS Games: Key Trends
Tectonic Shifts in the App Store Globe
APAC is challenging the US and 2x
Europe in downloads and revenues
Many of the top game publishers are
making most of their revenue outside
the US
Japan’s “revenue per download” is
nearly 3x of US, 27x of China!
Friday, 27 July 12

15. Agenda
1. About
App
Annie
2. Just
how
Big
are
iOS
Games?
3. Seasonal
Trends
on
iOS
4. iOS
versus
Google
Play
for
Games:
Who
is
winning
in
US,
UK,
and
Japan?
Friday, 27 July 12

16. Device, carrier launches and seasons have significant effect
US:$iPhone$Download$and$Revenue$Comparison$YoY$ Download" Revenue"
300"
250"
Revenues outgrowing downloads
200"
150" +117%
＊
100"
50"
0"
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
iPhone 4 X’mas Verizon X’mas
Launch Release iPhone 4S Verizon
Sprint
iPhone 4 Launch Release
Release
iOS 5 iPhone 4S
iPhone 4S &
Release
iPhone 4 CDMA
iPhone
revenues
grew
2x
in
2
years
*
Set
July-­‐2010
Rev
and
Based
on
App
Annie
Intelligence
United
States
EsJmated
Revenues,
2010
July-­‐2012
June
Download
Data
as
index=100
Friday, 27 July 12

17. Device, carrier launches and seasons have significant effect
US:$iPad$Download$and$Revenue$Comparison$YoY$ Download" Revenue"
700"
600" Downloads outgrowing revenues
500"
400"
300"
+325%
200"
＊
100"
0"
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
iPad 2 New iPad
X’mas X’mas
Launch Launch
Verizon
Released
iPad
revenues
grew
4x
in
2
years
*
Set
July-­‐2010
Rev
and
Based
on
App
Annie
Intelligence
United
States
EsJmated
Revenues,
2010
July-­‐2012
June
Download
Data
as
index=100
Friday, 27 July 12

18. Seasonality in US: Key Trends
Long-term seasonal trends are key to a
game publisher’s distribution strategy
Device and carrier launches can drive up
to a 50% increase in app store
downloads and revenues
Christmas periods exhibit up to a 50%
month-on-month increase in revenues
iPad’s revenue growth has been twice
the rate of iPhone’s
(over last 2 years)
Friday, 27 July 12

19. Agenda
1. About
App
Annie
2. Just
how
Big
are
iOS
Games?
3. Seasonal
Trends
on
iOS
4. iOS
versus
Google
Play
for
Games:
Who
is
winning
in
US,
UK,
and
Japan?
Friday, 27 July 12

20. iOS versus Google Play for Games
Based
on
App
Annie
Intelligence
-­‐
Japan,
UK
and
13%
US
data,
All
Category
May
2012
23%
34%
41% 5%#
10%$ 10%$
35%#
45%$
Download
52%$ 38%$
45%$ 60%#
9%#
31%$ 25%$ 23%$ 28%#
36%$
Revenue
44%$ 63%#
41%$
iPad% iPhone% Google%Play%
Google
Play
strong
in
downloads,
but
smaller
in
revenue
share
iOS
is
parBcularly
strong
in
Japan.
Friday, 27 July 12

21. Fastest Revenue Growth Countries for Games
Thailand% 163%%
Indonesia% 139%%
Belgium% 137%%
Macau% 128%%
Japan% 123%%
0%% 50%% 100%% 150%% 200%%
Belgium% 202%%
Thailand% 175%%
Japan% 163%%
Sweden% 151%%
Russia% 145%%
0%% 50%% 100%% 150%% 200%% 250%%
Based
on
App
Annie
Intelligence
APAC,
Europe
and
US
data,
Games
Category
iOS
displaying
fastest
growth
in
Asia
Jan
2012
-­‐
Jun
2012 Google
Play
growing
across
Europe
and
Japan
Friday, 27 July 12

22. Fastest Download Growth Countries for Games
Indonesia% 153%%
Thailand% 152%%
Vietnam% 147%%
Philippines% 134%%
Belgium% 107%%
0%% 20%% 40%% 60%% 80%% 100%% 120%% 140%% 160%% 180%%
Indonesia$ 138%$
Vietnam$ 130%$
Philippines$ 109%$
Thailand$ 107%$
Belgium$ 79%$
0%$ 20%$ 40%$ 60%$ 80%$ 100%$ 120%$ 140%$ 160%$
Based
on
App
Annie
Intelligence
APAC,
Europe
and
US
data,
Games
Category
Jan
2012
-­‐
Jun
2012 Top
5
growth
countries
of
iOS
and
Google
Play
are
same
Friday, 27 July 12

23. Top Categories by Revenue for Games
1 Simulation Arcade 1 Simulation Arcade 1 Role Playing Casual
2 Role Playing Casual 2 Adventure Casual 2 Adventure Arcade
3 Adventure Cards 3 Action Cards 3 Card Cards
4 Strategy Brain 4 Strategy Brain 4 Puzzle Sports
5 Action Racing 5 Role Playing Sports 5 Simulation Brain
Card
and
Brain
games
high
on
the
revenue
charts
for
Google
Play
iOS
dominated
by
more
sophisBcated
gaming
IP
Based
on
App
Annie
Intelligence
-­‐
Japan,
UK,
US
data,
Games
Category
May
2012
Friday, 27 July 12

24. Top Categories by Download for Games
1 Action Arcade 1 Puzzle Arcade 1 Action Arcade
2 Arcade Brain 2 Action Brain 2 Arcade Casual
3 Puzzle Casual 3 Arcade Casual 3 Puzzle Brain
4 Adventure Sports 4 Simulation Sports 4 Kids Cards
5 Family Racing 5 Adventure Racing 5 Adventure Sports
Similar
category
trends
across
countries
and
pla@orms
Based
on
App
Annie
Intelligence
-­‐
Japan,
UK,
US
data,
Games
Category
May
2012
Friday, 27 July 12

25. iOS vs Google Play: Key Trends
Google
Play
sJll
generaJng
1/3
revenues
compared
to
iOS
iOS
parJcularly
strong
in
moneJzaJon
and
growth
for
Asia
iOS
moneJzing
through
more
sophisBcated
Jtles
Friday, 27 July 12

26. Get
free
app
store
stats
www.appannie.com
CONFIDENTIAL PROPERTY OF APP ANNIE - DO NOT DISCLOSE Ⓒ AppAnnie 2012
Friday, 27 July 12