games on smartphones & tablets: demand, revenue, cost, business model, usage, demographics,...

Keep Your IP. Hold on to Your Hat.

Peter FaragoVP Marketing

@[email protected]

App Measurement & Advertising Platform

70,000

190,000

App Developers:

Live Applications:

Flurry Analytics Better apps on iOS, Android, BB, WP, HTML5

540MDevices per month:

38BSessions per month:

AppCircle Ad NetworkAcquisition & Monetization: iOS, Android

6,200App Developers:

250MDevices per month:

400BEvents per month:

3MDaily Completed Views

“Software is Eating the World” Andreessen in WSJ

iOS & Android Addressable Market

GLOBAL POPULATION

7 BILLIONSources: United States Census Bureau, based on Accenture analysis


MOBILE PHONE SUBSCRIPTIONS

6 BILLIONSources: US Census Bureau; International Telecommunication Union; based on Accenture analysis

GLOBAL POPULATION 7 BILLION


INTERNET USERS

2.3 BILLION


MOBILE PHONE SUBSCRIPTIONS 6 BILLION

Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis




iOS & ANDROID

550 MILLION

INTERNET USERS 2.3 BILLION

Sources: US Census Bureau; International Telecommunication Union, Flurry; based on Accenture analysis




INTERNET USERS 2.3 BILLION

Sources: US Census Bureau; CIA World Factbook; Flurry; based on Accenture analysis

iOS & ANDROID

550 MILLION

9% VS

MOBILE

24% VS

INTERNET

Penetration of WW Population, 5 Years After Launch

PCs (1988) Facebook (2009) Internet (2000) iOS & Android (2012)

1%

3%4%

8%

8X 3X 2X

Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry

Apps Eating the Internet

June 2010 Dec 2010 June 2011 Dec 2011

Sources: comScore, Alexa, Flurry Analytics; Smartphones & Tablets, U.S.

MINUTES

70MINUTES

66 MINUTES

74 MINUTES

81

MINUTES

64

MINUTES

43

WEB BROWSING MOBILE APPS

MINUTES

72MINUTES

94

U.S. MOBILE APPS VERSUS WEB CONSUMPTION

Q1 2011(68 minutes) Q1 2012 (77 minutes)

25 24

15 24 11

12 10 10 7 7

Source: Flurry Analytics, Smartphones, WW

DAILY SMARTPHONE APP CONSUMPTION, MINUTES PER CATEGORY, WW

iOS & Android Games Command Consumer Time

Social NetworkingGames OtherEntertainmentNews

36%

6%58%

57%9%

34%

70%

11%

19%

iOS & Android Games Eat Traditional Gaming Revenue

Source: Flurry Analytics, The NPD Group; Flurry analysis & estimates

U.S. PORTABLE GAME SOFTWARE BY REVENUE

2009 2010 2011

iOS & Android Sony PSP Nintendo DS

Indies Dominate on iOS & Android

40%

60%

44%56%

32%

68%

Q1 2010 Q1 2011 Q1 2012

Independent iOS & Android Game Developers Game Companies from other Platforms

INDIE VS. ESTABLISHED GAME SESSIONS ON iOS & ANDROID, WW

Source: Flurry Analytics

Business Model: App Store Top 25 Grossing

8%

92%

16%

84%

24%

76%

4%

96%

12%

88%

13%

87%

IN APP PURCHASE PRICING PREMIUM PRICING

UNITED KINGDOM FRANCE GERMANY

UNITED STATES CHINA TOTAL

Source: iTunes App Store, May 2012, Flurry analysis

30%

70%

60%

40%

36%

64%

28%

72%

12%

88%

Apps vs. Games: App Store Top 25 Grossing

GAMES APPLICATIONS

UNITED KINGDOM FRANCE GERMANY

UNITED STATES CHINA TOTAL

Source: iTunes App Store, May 2012, Flurry analysis

12%

88%

Gen Y Plays…

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

11%

17% 17%

7%

2%

11%

15%

12%

7%

1%

TIME SPENT BY DEMOGRAPHIC

13 – 17 18 – 24 25 – 34 35 – 54 55+

Males (53%) Females (47%)


…But Gen X Pays


0%

5%

10%

15%

20%

25%

30%

MOBILE FREE-TO-PLAY GAMES: MONEY SPENT BY DEMOGRAPHIC

Males (58%) Females (42%)

13 – 17 18 – 24 25 – 34 35 – 54 55+

9%

16%

7%

20%

12%

1% 1%3% 2%

29%

Men Spend More per Transaction

$0

$2

$4

$6

$8

$10

$12

$14

$16

MOBILE FREE-TO-PLAY GAMES: TRANSACTION SIZE BY DEMOGRAPHIC

$15.5 $15.2

$12.0 $12.0 $12.5

$14.8

$10.4$11.8

$8.2

$16.4Males ($15.6)

Females ($11.9)

13 – 17 18 – 24 25 – 34 35 – 54 55+


Other

Books

News

Utilities

Entertainment

Social Networking

Games

10%

2%

2%

3%

11%

14%

58%

Other

News

Utilities

Lifestyle

Entertainment

Social Networking

Games

11%

2%

4%

5%

6%

22%

50%

Source: Flurry Analytics, Q1 2012; 160,500 apps, 97 Billion Sessions

Sessions per Category, Smartphones vs. Tablets

Smartphones Tablets

Time of Day Usage, Smartphones vs. Tablets


Gender by Category, Smartphones vs. Tablets


13% 9%20%

41%

17%

13%9%

20%

41%

17%


13 - 17 18 - 24 25 - 34 35 - 54 55+

Average Age

Smartphones:Tablets:

2738

Smartphones Tablets

Age Distribution, Smartphones vs. Tablets

Top 6 Successful Game Types

ENDLESS PASS TIME

SOCIAL RPG

NURTURING & COLLECTING

GAMER’S GAME

BUILDING & SIMULATION

POKER / CASINO

Endless Pass Time

Examples

42%58%

Angry Birds Fruit Ninja 13-17 18-24 25-34 35-54 55+ -5%

0%

5%

10%

15%

20%

25%

30%

Age Distribution

DAU 1,000,000

Monthly Revenue $500,000

Investment (minor) $100,000

Investment (major) $400,000

Key Genre Attributes

• Intuitive, simple puzzle/arcade mechanics

• Leverages h/w (touch, accelerometer)

• Cute, often original IP; mass-mkt appeal

• Infinite replay value; lots of power-ups

• May have social leaderboards

13-17 18-24 25-34 35-54 55+ 0%

5%

10%

15%

20%

25%

30%

35%

Nurturing & Collecting

Examples

59%41%

Dragonvale Dream Pethouse

Age Distribution

DAU 300,000





• Nurturing (tamagotchi) gameplay

• Avatar / dress-up style content

• Endless variety of virtual goods

• Strong social / show-your-friends sharing

• Often w/ underlying econ sim mechanics

13-17 18-24 25-34 35-54 55+ 0%5%

10%15%20%25%30%35%40%

Building & Simulation

Examples

51%49%

Smurfs’ Village Kingdoms of Camelot

Age Distribution

DAU 400,000

Monthly Revenue $1,200,000




• Building & simulation gameplay

• “Empire” expansion / leveling up

• Content / power-up unlocks

• Has both virtual currency & goods

• Light social collaboration & sharing

13-17 18-24 25-34 35-54 55+ 0%5%

10%15%20%25%30%35%40%

Social RPG

Examples

21%79%

Crime City Original Gangstaz

Age Distribution

DAU 150,000





• Text-based RPG mechanic

• Player-vs-player gameplay

• Energy / HP depletion

• Clan / team dimension + message / chat

• Mission-based & level progression

13-17 18-24 25-34 35-54 55+ 0%

10%

20%

30%

40%

50%

Gamer’s Game

Examples

9%91%

Infinity Blade II Real Racing 2

Age Distribution

DAU 50,000





• Platform-leading graphics

• Strong physics engine / middle-ware

• Sports / battle / racing style sub-genres

• Defined win-lose outcomes

• Premium pricing model, often $4.99+

13-17 18-24 25-34 35-54 55+ 0%5%

10%15%20%25%30%35%40%

Texas Poker / Casino

Examples

32%68%

Zynga Poker Card Ace: Casino

Age Distribution

DAU 200,000

Monthly Revenue $1,000,000




• Synchronous, Online Multi-player

• Private + public tables, chat enabled

• Texas Poker dominates, inherently social

• Blend of competition + social

• Acquiring chips = perfect freemium model

AppCircle: Build & Grow Your App Audience• Acquire users with high-quality app recommendations and videos (iOS, Android)• Win-back your best users to build the most loyal and best monetizing audience

Analytics: Increase Your App Engagement and Retention• Free and powerful. Leading app analytics (iOS, Android, WP, BB, J2ME, HTML5)• Understand and segment app audiences to maximize engagement and revenue

AppSpot: Maximize Your App Audience Revenue• 2X revenue, reduce cost with free ad serving and mediation, yield-optimized ads• Max eCPMs with mediation and yield optimization leveraging Flurry’s big data set• Max eCPMs selling direct, segmented parts of your audience to top advertisers

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Flurry Services

Thank You!

Peter FaragoVP Marketing

@[email protected]

games on smartphones & tablets: demand, revenue, cost, business model, usage, demographics,...

Technology

android app developers

ios androidindie

npd group flurry analysis

smartphones tablets

accenture analysis

itunes app store

platforms source

united states census