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News and Resources

The user analytics duopoly: Google and Flurry are well ahead of competition

Usage analytics tools usually have a very simple integration which enables developer to get basic information about their active user base – size, usage frequency, device models, OS versions and app versions in use. More custom integration enables developers to log events to the usage analytics platforms when users perform specific actions within the app. This allows developers to track which features or functions are most use, measure conversion rates and pinpoint where in UI flows users are giving up if actions are not being completed.

User analytics services gain in importance as competition intensifies

User analytics services are becoming increasingly important as competition in app development continues to rise. The ability to track how users interact with apps is extremely valuable for both developers and product managers and to some extent acts as a proxy for user feedback. The absence of a direct two-way communication channel between developers and users means that user analytics often provide the only channel from user to developer. 28% of developers use user analytics services overall, but usage rises with the number of apps developed, reaching 39% among developers working on more than 10 apps per year.

Analytics services seem to be significantly more important among iOS developers (used by 39% of iOS developers) compared to other platforms. This suggests that iOS developers take more interest overall in their user base, a fact that could indicate a more professional approach to development. Among the top platforms, user analytics tools are the least popular with BlackBerry developers (15%). BlackBerry has suffered high churn of its affluent user base and developers sticking with the platform are likely to be working on outsourced ports with little interest about the way that users interact with an app. Among the other major platforms around a quarter of developers use user analytics, with Android being slightly ahead (28% of Android developers).

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Google and Flurry lead the pack

The picture in user analytics services is quite telling with two services dominating: Google and Flurry. Google has traditionally been strong in web analytics but it has now extended its stronghold on to mobile platforms commanding a 69% mindshare among developers employing User Analytics services. However, its dominance is mainly observed among HTML developers and although it leads on Android, BlackBerry and Windows Phone, its lead is by a small margin. Runner-up Flurry, is used by 49% of developers employing User Analytics services but is the leading User Analytics service on iOS (64% vs. 58% for Google). Flurry, being one of the pioneers in User Analytics has grown into one of the heavyweights in app ecosystems, and is recognised as a de-facto analytics platform for developers. Beyond these two services, there are numerous smaller players vying for third place, currently held by Testflight Live, a service recently acquired by ad mediation service Burstly in a move that is quite typical of the synergies between different tools and services that drive consolidation in the marketplace.

User Analytics services are stronger in Media apps (News/sports/weather/magazines) as well as in Entertainment apps, used by 36% of developers working on such apps. However, they are more or less popular across all app categories, but less so in Education/Reference apps. Google analytics is stronger overall across all these categories, with the exception of Games where both Google and Flurry are equally strong.

Minimizing overhead is the priority

Developers opt for services that are easy to integrate within their apps or that are available across several platforms as indicated by 51% and 49% of developers using user analytics services. I.e. the main priority for developers is to minimise the overheads associated with using user analytics, while optimising analytics comes third: only 31% of developers using user analytics services are concerned with the depth of analytics, and only 13% are interested in real-time reports. Cost is a also deciding factor as pointed out by 28% of developers employing user analytics.

We asked developers using User Analytics services to indicate the number of active users of their most popular app. Excluding those apps that have more than 500,000 users, developers’ most popular apps have an average active user base of 56,000 users, although this number varies widely within platforms and across platforms. iOS developers indicated 70,000 users vs. 51,000 users on average for Android. The median user base, is 27,500 users for iOS and 15,500 for Android, indicating that while Android commands a higher market share, iOS users engage more actively with the platform when it comes to apps with less than 500,000 active users.

[doritos_report location=’DE13 Article – User analytics’]

Which user analytics tools are other developers using?


[toggle title=”Important things to know about this interactive graph”]

  • All the filters in the graph refer to survey questions in which respondents could select multiple answers. This means that there is no direct link between the filter and the use of the tool. For example, filtering on “Android” means that the respondents develop Android apps. It doesn’t imply that they use the tools for their Android apps specifically, or even that the tool supports the Android platform. Use filters as a guideline only.
  • Keep an eye on the sample size. If the sample size is low, the graph doesn’t offer strong conclusions about the popularity of different tools. Use your good judgment when making decisions.[/toggle]

    Find the best analytics tool for you!

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Business News and Resources

Two Important App Market Trends to Watch in 2013

App market trends

2012 was another big growth year for the app market. Apple continued to launch new products, sell them in ever greater volumes and distribute more revenue to developers. Meanwhile Google overhauled their market and developer revenues climbed sharply. Android developers also saw the Amazon Appstore expand and become a serious second revenue source. Developers who created quality apps and marketed them well were richly rewarded. However, for many developers the major challenge of getting their apps discovered by users only got worse. How is 2013 likely to compare and what are the most recent app market trends? Will app revenues continue to grow at similar rates and will those revenues keep concentrating in the hands of fewer publishers?

App market trends: Continued Growth

According to Distimo’s 2012 report, Apple’s daily App Store revenue grew 21% in the four months to the end of November. Google Play revenue grew 43% in the same period. During November the average daily revenue from the App Store was $15m while for Google Play it was $3.5m. So Google has more than double the growth rate, although from a much lower base.

The graph below extrapolates those four month growth rates exponentially through 2013. This illustrates the effects if those growth rates continued – this is not a prediction.

The Apple daily revenues and growth rate figures were taken during a double new product introduction spike, so the actual 2013 growth is likely to be significantly lower. According to App Annie, iOS revenue growth for the first 10 months of 2012 was only 12.9% total.

Similarly Android’s revenue growth in 2012 was from a very low base, it will be important to watch how it changes as the absolute revenue levels increase. The likelihood is that Android revenues will be significantly closer to iOS revenues by the end of 2013 but iOS revenues much closer to where they are now than the graph above suggests.

In the biggest spending app markets around the world, smartphone penetration is above 50%. A large proportion of smartphone purchases in those markets in 2013 will therefore be replacement devices running the same platform. With iOS a new device can download purchased content and restore in-app purchases at no extra cost. On Android it’s entirely up to the developer whether existing purchases can be used on a new device but by default, paid apps can be downloaded to new devices and in-app purchases will not be restored automatically without charge.

App revenue expectations

Will users continue to spend on apps at the same rate on replacement devices, or will the app revenues in the most developed markets start to fall? There’s likely to be some variation here across platforms and app categories but this may be the first year that the total market growth doesn’t obscure this important user behaviour trend.

App market trends: Revenue Distribution

Although the app stores are generating millions of dollars in revenues every day, those are not distributed at all evenly amongst developers. Canalys recently highlighted that 50% of revenues are earned by just 25 publishers in the US. Although we already pointed out that this is not as bad as it sounds, since those publishers have well over 1000 apps between them, at the very top, the concentration really is that extreme and getting worse.

According to the 2012 report from Distimo linked above, 7 apps were responsible for 10% of revenues on the iPhone in November, for the iPad it was only 6 apps and on Google Play just 4. At the very top on iOS we know that Supercell were grossing $500k per day from two games in early October. At the time Hay Day, the lower ranked of the two, was below position 20 in the top grossing chart, while it is now rarely outside the top 10. Clash of Clans has consistently been in the top 2 since that report. We can guess their revenue is even higher now and that the number 1 grossing spot is worth somewhere around $300-450k per day (about 2-3% of total iOS revenues) before Apple’s 30% cut.

In January 2012 the top 11 apps for the iPhone were responsible for 10% of revenues while on the iPad it was 8 apps. It’s tempting to speculate that the greater increase in revenue concentration on the iPhone is due to the changes to the App Store in iOS 6. However there is very little overlap between the top 10 grossing apps and the top 10 paid or free downloads. Whatever the reasons for this increased concentration of revenue at the top, this is an important trend to watch in 2013.

If revenues aren’t more evenly distributed amongst a larger number of developers then investment in new app projects must eventually start to decline. Otherwise, developers will need to find more business models that aren’t dependent on direct monetisation of their apps through stores.

If you are interested in more recent trends, have a look into our App Developer Trends from Q1 2015.

Categories
News and Resources Platforms

Appsfire Infographic illustrates once more difficulty to get to the top

Appsfire Infographic

Appsfire Infographic shared figures for the iOS App Store in 2012.

  • The growth in the amount of apps, while still high, seems to be slowing. This might indicate that the market is maturing.
  • Only 1 in 10 apps gets any reasonable traction at all. Only 1 in 1000 manages to get to the top 10 of the App Store. For non-games, only 1 in 1690 reaches the top.
  • The percentage of paid apps has dropped dramatically.

Here is the Appsfire Infographic:

AppsFire 2012 - A year in the App Store