The State of Play: A look at the growth of Google Play
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This report is powered by App Annie Intelligence 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.
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Publishers are launching an increasing number of apps on Google Play Number of live apps on Google Play
Google announced that Google Play surpassed 1 million apps
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014
• 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
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The worldwide market for Google Play downloads continues to grow rapidly
Indexed Downloads
200
Worldwide quarterly Google Play app downloads
150
1.5x
year on year
100 50 0 Q1 2013
Q3 2013
Q1 2014
• Quarterly app downloads from Google Play grew approximately 50% from Q1 2013 to Q1 2014
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Revenue is soaring, outpacing download growth 300
Worldwide quarterly Google Play app revenue
Indexed Revenue
250
2.4x
200
year on year
150 100 50 0 Q1 2013
Q3 2013
Q1 2014
• 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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Worldwide opportunities. Google Play has expanded rapidly across a range of markets over the past year.
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Advancing economies are leading download growth among Google Play’s top markets Indexed Downloads
150
Quarterly Google Play app downloads by country Top 5 countries by Q1 2014 downloads
100
1.2x growth
50
2.6x growth
1.9x
1.0x
growth
growth
1.5x growth
0 United States
Brazil Q1 2013
Russia
South Korea
India
Q1 2014
• 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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Established markets are experiencing phenomenal growth in revenue Quarterly Google Play app revenue by country Indexed Revenue
250 200
Top 5 countries by Q1 2014 revenue 2.4x growth
150 2.6x
100
growth
1.9x growth
50 3.5x
0 Japan
United States
South Korea
Germany
Q1 2013
2.4x United Kingdom
Q1 2014
• 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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Category growth. Games dominate Google Play, but opportunities outside of Games are expanding.
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Games accelerate Google Play revenue growth 300
Worldwide quarterly Google Play app downloads
150
Indexed Revenue
Indexed Downloads
200
100 50 0
Worldwide quarterly Google Play app revenue
200
100
0 Q1 2013 Apps outside of Games
Q1 2014 Games
Q1 2013 Apps outside of Games
Q1 2014 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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Although Games dominate revenue gains,
growth is almost universal across categories 250
Quarterly Google Play download and revenue growth by category Top 6 categories outside of Games by downloads, Q1 2014
Indexed Revenue
200
Q1 2013
Communication
Q1 2014
150
Social
100 Music & Audio
Tools Entertainment
50 Photography
0 0
20
40
60
80
100
120
140
160
180
Indexed Downloads • Messaging apps supported high revenue growth for Communication and Social • Tools and Communication categories displayed particularly rapid download growth Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Freemium on the rise. The freemium business model continues to grow across Google Play.
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Freemium continues to grow in downloads and revenue Worldwide monthly Google Play downloads
Worldwide monthly Google Play revenue
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0% May 2013
May 2013
May 2014 Freemium
Free
Paid
May 2014
Paid with In-App Purchases
• 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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Asian markets lead the way, but
freemium dominates all major markets Monthly Google Play app revenue by country, May 2014 South Korea Japan United States Russia Brazil 0%
20%
40%
Freemium
Paid
60%
80%
100%
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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Key Takeaways.
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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 Confidential - Property of App Annie. Do not distribute. ©2014 App Annie
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Thank you.
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