state of app marketing in india - skyline university college
TRANSCRIPT
State of App Marketing in IndiaMarch 2018
- India is a booming app economy, and has just surpassed the US to become the #1 country in the world in the number of non-organic installs.
- The share of non-organic installs in the app install pie has grown significantly -- 30% year-over-year. Low price of media (about 30 cents for an install) and an increase in the share of non-Indian apps running campaigns in India is likely the reason behind this jump. Organic app discovery is largely broken with a 10% drop in the share of the app install pie.
- Because of limited storage space in the Android-dominated market, the country suffers from a high uninstall rate: about 32% of installed apps are deleted within 30 days. Retention is also a challenge with only about 5% of users active 30 days after installing an app.
- Low engagement rate and high uninstall rate are driving marketers to invest 70% more in retargeting campaign in an attempt to improve these KPIs.
- The share of buying users is relatively high in India with 7% of installers making in-app purchases within 30 days.
- App Install Fraud is on the rise in India, up 85% since Jan. 2017. It is still lower than the global average because of low payout in the country, but with scale and the desire to match advertiser expectations, more fraudsters are polluting data in this region.
Key Findings - Executive Summary
Data Study Highlights
1+ Billionapp installs
4 Billionapp opens
950apps
$400Min-app revenue
40 Millionretargeting conversions
Data was pulled across different time frames from January 2017 to January 2018 (inclusive)
A View from Above
27%of households (66 million) make up
‘consumption class’ vs. only 7% ten years ago
39Msmartphones shipped in India during Q32017,
up 40% vs. Q2 and 20% year-over-year
Sources: Kalaari Capital, NCAER, IDC
Accelerated growth of the
‘consumption class’ in India means
that a significantly higher number
of people can afford to buy
relatively costly new smartphones..
Booming App Economy
Source:s: App Annie, AppsFlyer
3x increase in the average number of installs per app (Jan. 2017 vs. Jan. 2018)
country in monthly average number of apps installed
and used (40+)
#1country in minutes per day spent in apps (~170)
#6Booming App Economy
App usage in India has grown
dramatically since September
2016 when Jio introduced
subsidised, unlimited 4G access.
This move has made the cost of
app data affordable for the
majority of the population.
INDIA: OUR NEW GLOBAL LEADER!
In January-February of 2018, India
overtook the US as the country
with the highest number of
non-organic installs, as measured
by AppsFlyer.
The growth rate is impressive. In
the same time period in 2017, the
US was ahead of India by 26% in
the overall non-organic install
count.
Booming App Economy
Non-Organic Installs
Organic Installs
Source: AppsFlyer
drop in share for Indian Apps
-18%
Share of Top 200 Apps By Location of Company HQ
India is top of mind for non-Indian
apps, especially Chinese ones, with
more Chinese owned apps among
the top 200 than Indian ones, as
recorded in January of this year.
Overall, the share of Indian apps in
the pie is shrinking, while the share
of Chinese apps is up 7% and the
share of other non-Indian apps has
increased by almost 30%.
India Increasingly Attractive to Non-Indian Apps
January 2017 January 2018
The Rise of Non-Organic
IncreasinglyAttractive to Non-IndianApps, Especially eCommerce
Whereas the share of Indian apps
has risen year-over-year in the
entertainment category, we can
see that Indian-owned
eCommerce apps face more
competition coming from outside
the country.
Overall, the share of non-Indian
apps is rapidly growing in this
category with a +84% jump in
shopping and a +45% rise in travel.
Source: AppsFlyer
Share of Top 200 Apps Per Vertical By Location of Company HQ
Source: eMarketer
The app boom in India is quickly
translating into significant growth
of mobile ad budgets.
Whereas desktop ad spend is
down, mobile is shooting upwards
with the tipping point predicted
to take place this year, when
mobile will exceed desktop by
nearly 3% to eclipse $800 million
in total spend.
Mobile vs. Desktop Spend: Opposite Trends
Source: eMarketer
In-App vs. Mobile Web Impressions Share (India, H1, 2017)In-App DominatesMobile Web
The share of impressions delivered
in apps is well ahead of the mobile
web. Users in India are completely
focused on apps as we’ve
established in slide 5.
Clearly, the division between
mobile environments as it applies
to ads follow this trend.
Source: AppsFlyer
YoY Change in App Installs By Type
+30%
-9%Share ofNon-OrganicInstalls Growing Rapidly
Broken organic app discovery has
led apps to invest in marketing. This
gives them more control and ability
to scale. By relying on data,
marketers can ensure their
investment is worthwhile.
The non-organic rise in India is
significant when compared to the
global average, which grew by 20%.
Marketing budgets in top verticals
have grown significantly YoY,
climbing at a rate that is about 50%
higher than the country average.
Affordable data means video
streaming via entertainment apps
opens up to a massive audience.
eCommerce has also become
accessible to a sizable amount of
the population, which now has
both more money to spend and the
means to spend it.
App marketers in these verticals are
not blind to this growing demand
and have become increasingly
aggressive in their UA efforts.
Source: AppsFlyer
Growth of Non-Organic Installs (Average Per App)
2.3x2.3x
2.3x
Key VerticalGrowth
Source: AppsFlyer
Cost Per Install Over Time (INR)
Low Price of Media Drive Demand
When the price of media is as low
as it is in India (about 30 cents vs.
a global average of roughly 1.8
USD), marketers can afford to be
aggressive. This is particularly true
for non-Indian apps that allocate
budgets across multiple regions.
For them, India is a bargain.
App Engagement
The app space has become
insanely competitive in recent
years. The choice is all but endless
and as a result users jump from
one app to the next in no time.
Long term app usage is therefore
a daunting task.
Apps Face Uphill Battle with Engagement
2.8 and 2.2 millionApps in App Storeand Google Play → Countless alternativesto your app
Super high user expectations → Apps that don’t rapidly deliver onall fronts won’t get used
Average device hasdozens of apps;time spentdominated by few→ Fighting for crumbs
Source: AppsFlyer
Non-Gaming App Retention Rates By Type
Retention isa Significant Pain
The data shows that 30 days after installing an app, only a handful of non-organic users in India remain active in that app. Three months in, across an entire week, the rate is just over 5%.
The challenge with low retention rates is that it is the basis of monetization. When is it not optimized, apps suffer sub-par LTV.
Retention can be significantly improved by diving deep into the data with retention reports, cohort analysis and granular in-app measurement for optimized re-engagement campaigns.
Source: AppsFlyer
App Retention Rates By Type - Shopping
Source: AppsFlyer
App Retention Rates By Type - Travel
Source: AppsFlyer
App Retention Rates By Type - Entertainment
Source: AppsFlyer
30-Day Uninstall Rate
Uninstalls Are a Major Threat
The average storage space of a smartphone in India is significantly lower than other markets, particularly Western ones, according to market research firm Counterpoint Research. This fact forces Indian users to delete apps at a much higher rate to free up space on their phones.
A vertical comparison shows that the gap between organic and non-organic is insignificant; the gap in entertainment, however, certainly is (more than 2x higher rate in non-organic).
32%
Source: AppsFlyer
Growth* in Number of Retargeting Conversions
* Among apps with a minimum 10% growth rate; same app comparison
+69%
+77%
Doubling Down On Re-EngagementTo Boost Engagement
The challenge of low engagement
and high uninstall rates is a major
pain for apps in India, as
demonstrated.
Therefore marketers are
increasingly looking to maximize
the value of existing users (whether
they’ve uninstalled the app or not).
A proven method for this is
retargeting, which can be very
effective in its ability to reach a
known audience with relevant
direct response messaging.
70%
Revenue
Source: AppsFlyer
Share of Buying Users (After 30 Days)India Boasts High In-App Buyer Rate
Indian consumers have a relatively
high in-app buying rate compared
to the global average, especially in
shopping apps. This makes sense
considering India is a mobile-first
and sometimes mobile only
country that is very app centric.
7%
Source: AppsFlyer
90-Day Average Revenue Per User (INR)
The average Indian app user makes
in-app purchases valued at $5.5
over a 90-day period. When
examining the top verticals, there is
a significant gap between
entertainment and eCommerce
apps.
* Sample size was insufficient for
non-organic data in the
entertainment vertical
User Spend
367
Source: AppsFlyer
Install to First Purchase in Days - Shopping (Cumulative)
Consumers Buy Fast
About 1 in every 2 who make in-app purchases in shopping apps make their first purchase within the first day after downloading an app. Within two weeks, almost all buying users make their first purchase.
Interestingly, more non-organic shoppers who go on to make in-app purchases do so within the first 14 days, compared to organic users.
For marketers this means being extra aggressive in the early stages.
Travel apps in India offer users the
ability to book not only flights and
hotels, but also bus and train
tickets. Whereas the former take
longer, the latter is usually
immediate, which explains the
high rate on Day 1.
Source: AppsFlyer
Install to First Purchase in Days - Travel (Cumulative)Travel App Funnel Mixes Short and Long Term Bookings
Source: AppsFlyer
Install to First Purchase in Days - Entertainment (Cumulative)Entertainment buyers engage quickly
Users who make in-app purchases
in entertainment apps do so
quicker than any other vertical
examined. Over 70% within day 1
and no less than 94% within 14
days.
* Sample size was insufficient for
non-organic data in this vertical
Organic & Non-Organic = Complimenting Each Other
Source: AppsFlyer
The Organic Multiplier (Global Estimation)Organic App Discover Largely Broken
The organic multiplier -- the ratio
between 1 paid install and the
number of organic installs in the
same time frame -- has decreased
significantly in the last couple of
years.
This should not come as a surprise
considering the millions of apps in
the app stores. The chances of a
single app to attract a user’s
attention resemble the odds of
winning the lottery.
1 Non-OrganicInstall
OrganicInstalls
2014
1 Non-OrganicInstall
OrganicInstalls
2017
Source: AppsFlyer
of apps targeting Indian users have more non-organic installs,
up 20% year-over-year*
41%
* Among apps that have both organic and non-organics
When Non-Organic > Organic
Broken organic app discovery is
leading apps to increase their
investment in user acquisition,
with an increasingly higher
number of apps having more
non-organic installs than organic
ones.
Source: AppsFlyer
Organic Non-Organic
Quality V V V (with smart use of data!)
Quantity X V V
Control X V V
The Power Combo: Organic & Non-Organic
Organic and non-organic installs complement each other, as both are required for success.
Organic users deliver superior quality and help reduce overall eCPI. However, because of the organic decline, the ability of most apps to control their scale with organic installs is limited compared to non-organic installs.
With non-organics, marketers have more control and as such can scale. With the right use of data they can also make their investment worthwhile by delivering quality users.
Mobile Ad Fraud
Source: AppsFlyer
App Install Fraud Rate Trend
+85% higher fraud in
Jan 17/May vs. Sep/Jan 18
Fraud Rising
The rate of app install fraud
targeting campaigns in India is
increasing at an alarming rate.
On the one hand, fraud in India is
about 25% lower than the global
average, largely due to low
payouts making region less
attractive for fraudsters.
On the other hand, fraud also has
to match advertiser expectations
and if so much activity is taking
place in india, fraud has to match
that pattern else it can raise
alarms.
Source: AppsFlyer
App Install Fraud Distribution by Type (Jan. 2018)
Install Hijacking Top Threat
App install in India is driven
mainly by install hijacking. But
this can easily change as the next
page shows.
Source: AppsFlyer
App Install Fraud Trendy by Type
Fraud is Dynamic
The data shows that fraud is very
dynamic, especially DeviceID
Reset Fraud. Install hijacking
also has some variance with a
45% increase between Jan. 17
and Jan. 18.
As such, advertisers need to be
constantly monitoring fraud
rates.
Source: AppsFlyer
Non-Gaming / Android / Power Ranking
1. While Taskbucks have fallen in overall volume, they stack up at No. 4 on Power Ranking. This is a great achievement for an incentivised app platform.
2. Twitter has dropped in power rankings likely due to their dip in overall volume as compared to H1-2017. Twitter has just signed-up Httpool as their official re-seller in India to ramp-up volumes.
3. AppLovin continues to grow phenomenally in India thanks to their focus in the region, their engaging Ad Units and predictive insights that target / re-target relevant users.
Insights
Source: AppsFlyer
Non-Gaming / Android / Volume Ranking
1. SVG Media are the latest
entrant in this list after the
Dentsu acquisition earlier in 2017.
2. Appnext makes its first
appearance in this report after
Airpush shutting their India
operations and the entire team
moving to Appnext to scale India
ops.
Insights
About AppsFlyer
AppsFlyer’s technology is found on 98 percent of the world’s smartphones, making it the global leader in mobile attribution and marketing analytics. Data-driven marketers rely on AppsFlyer for independent measurement solutions and innovative tools to grow and protect their mobile business.
Official partners with Facebook, Google, Twitter, Pinterest, and Snap Inc., and Tencent, AppsFlyer empowers app marketers and developers like HBO, Playtika, Waze, Alibaba, Skyscanner, Activision to maximize the return on their marketing investments.
To learn more, visit www.appsflyer.com.
For more data studies and resource for mobile marketers, go to www.appsflyer.com/library
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