Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- Market maturity slows revenue growth
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- Figure 1: Value of mobile device apps sales and in-app purchases from the iOS App Store and the Google Play Store in the UK, 2012-16 (est.)
- iOS dominates worldwide revenues despite Google Play’s higher downloads
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- Figure 2: App store revenue split for iOS App Store and Google Play Store, by country, July 2016
- Device-specific dynamics impact platforms’ reach
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- Figure 3: Operating system on any mobile devices owned (either smartphone or tablet), July 2016
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- Figure 4: Operating system, by device, July 2016
- Social media and messaging apps are the most popular
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- Figure 5: Types of apps used regularly, July 2016
- Three in four mobile users need less than seven types of apps
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- Figure 6: Repertoire of types of apps used regularly, July 2016
- Word of mouth is the most effective in driving downloads
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- Figure 7: Download influences, July 2016
- Disengagement is by far the most important reason to delete apps
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- Figure 8: Reasons to delete apps, July 2016
- Less than a third of mobile users spend money on apps
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- Figure 9: Ways in which consumers have spent money on apps in the past three months, July 2016
- Subscriptions boost willingness to spend
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- Figure 10: Amount consumers have spent on apps in the past three months, by spend type, July 2016
- App convergence further challenges user retention
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- Figure 11: Attitudes towards mobile apps (1/3), July 2016
- Privacy concerns still outweigh benefits of location tracking
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- Figure 12: Attitudes towards mobile apps (2/3), July 2016
- Monetisation opportunities in the travel market
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- Figure 13: Attitudes towards mobile apps (3/3), July 2016
- What we think
Issues and Insights
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- Fostering monetisation
- The facts
- The implications
- Adapting to the maturity of the UK’s app market
- The facts
- The implications
The Market – What You Need to Know
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- Market maturity slows revenue growth
- App monetisation is largely driven by in-app purchases
- iOS dominates worldwide revenues despite Google Play’s higher downloads
- Shifting digital habits
- Deep linking offers new opportunities for discovery and engagement
- Console gaming meets mobile
- The sticker economy is coming into the mainstream
Market Size, Segmentation and Share
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- Market maturity slows revenue growth
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- Figure 14: Value of mobile device apps sales and in-app purchases from the iOS App Store and the Google Play Store in the UK, 2012-16 (est.)
- App monetisation largely driven by in-app purchases
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- Figure 15: UK iOS App Store and Google Play Store app revenue, by revenue model, July 2016
- Subscriptions take monetisation beyond gaming
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- Figure 16: Top apps, by revenue on the UK iOS App Store, July 2016
- Figure 17: Top apps, by revenue on the UK Google Play Store, July 2016
- iOS dominates worldwide revenues despite Google Play’s higher downloads
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- Figure 18: App store revenue split for iOS App Store and Google Play Store, by country, July 2016
Market Drivers
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- Shifting digital habits
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- Figure 19: Personal ownership of mobile devices, January 2012-July 2016
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- Figure 20: Device consumers would miss the most, October 2015
- Deep linking offers new opportunities for discovery and engagement
- Console gaming meets mobile
- The sticker economy is coming into the mainstream
Key Players – What You Need to Know
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- Apps become more prominent in Google search results
- Apple launches search ads in the US
- Google and Apple look to reinforce their positioning in the messaging world
- Apple partners with Deloitte to target enterprise segment
- Windows 10 enables cross-device app development
- ‘Computers’ apps the most advertised
- TV is the preferred advertising channel
Launch Activity and Innovation
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- Apps become more prominent in Google search results
- Apple launches search ads in the US
- Google and Apple look to reinforce their positioning in the messaging world
- Apple partners with Deloitte to target enterprise segment
- Windows 10 enables cross-device app development
- Vodafone launches operator billing
- Google Play introduces family sharing
Advertising and Marketing Activity
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- ‘Computers’ apps the most advertised
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- Figure 21: Recorded above-the-line, online display and direct mail total advertising expenditure on mobile apps, by app category, 2015
- TV is the preferred advertising channel
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- Figure 22: Recorded above-the-line, online display and direct mail total advertising expenditure on mobile apps, by media type, 2015
- Methodology and coverage
The Consumer – What You Need to Know
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- Android is the platform with the most reach
- Social media and messaging apps the most popular
- Word of mouth the most effective in driving downloads
- Disengagement by far the most important reason to delete apps
- Less than a third of mobile users spend money on apps
- App convergence further challenges user retention
Operating System on Mobile Devices
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- Android is the platform with the most reach
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- Figure 23: Operating system on any mobile devices owned (either smartphone or tablet), July 2016
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- Figure 24: Operating system on any mobile devices owned (either smartphone or tablet), by age, July 2016
- Device-specific dynamics impact platforms’ reach
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- Figure 25: Operating system, by device, July 2016
- Reach does not necessarily lead to usage and profitability
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- Figure 26: Operating system on any mobile devices owned (either smartphone or tablet), by repertoire of types of apps used regularly, July 2016
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- Figure 27: Ways in which consumers have spent money on apps in the past three months, by operating system on any mobile devices owned (either smartphone or tablet), July 2016
Types of Apps Used Regularly
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- Social media and messaging apps the most popular
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- Figure 28: Types of apps used regularly, July 2016
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- Figure 29: Top apps, by monthly active users in the UK, 2015
- The rise of mobile gaming
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- Figure 30: Devices used to play casual internet games in the past three months, June 2014 and June 2016
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- Figure 31: Gaming frequency on the devices owned/in the household, July 2015
- Demographic reach varies by app type
- Three in four mobile users need less than seven types of apps
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- Figure 32: Repertoire of types of apps used regularly, July 2016
- Three degrees of relevance of mobile apps
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- Figure 33: Types of apps used regularly, by repertoire of types of apps used regularly, July 2016
Drivers of Downloads
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- Word of mouth the most effective in driving downloads
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- Figure 34: Download influences, July 2016
- iOS users the most likely to be influenced
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- Figure 35: Download influences, by operating system on any mobile devices owned (either smartphone or tablet), July 2016
- Ads more effective in driving spend
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- Figure 36: Download influences, by amount spent on apps in the past three months, July 2016
Reasons to Delete
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- Disengagement by far the most important reason to delete apps
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- Figure 37: Reasons to delete apps, July 2016
- The impact of storage constraints
Spend on Apps
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- Less than a third of mobile users spend money on apps
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- Figure 38: Ways in which consumers have spent money on apps in the past three months, July 2016
- Subscriptions boost willingness to spend
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- Figure 39: Amount consumers have spent on apps in the past three months, by spend type, July 2016
- Consumer groups driving spend on apps
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- Figure 40: Average amount consumers have spent on apps in the past three months, by age, July 2016
Attitudes towards Mobile Apps
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- App convergence further challenges user retention
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- Figure 41: Attitudes towards mobile apps (1/3), July 2016
- Privacy concerns still outweigh perceived benefits of location tracking
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- Figure 42: Attitudes towards mobile apps (2/3), July 2016
- Monetisation opportunities in the travel market
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- Figure 43: Attitudes towards mobile apps (3/3), July 2016
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- Figure 44: Screenshots of the Google Trips app, September 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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