All advertisers seek to deliver the right message to the right person at the right moment. If content is king, then context is queen – particularly when it comes to mobile devices that are typically close at hand if not in our hands.
Smartphones and tablets are often lumped together as “smart”, “mobile”, or “connected” devices, but their use varies by person and by context. In this post, we explore context as it relates to iOS devices. We discuss who uses each device, which devices are used to enact what aspects of users’ lives and personalities, and when usage tends to take place.
Because Android and iOS devices have different audiences, we focus only on iPhone and iPad in this post. Flurry currently measures activity on 397 million active iOS devices, and this analysis is based on usage during May of a random sample of 44,295 of those (iPhone and iPad only; iPod Touch was not included). A future post will discuss usage patterns on Android tablets and smartphones.
iPhone Goes Out; iPad Stays In
Flurry has developed a set of Personas in which device users are assigned to psychographic segments based on their app usage. An individual person may be in more than one Persona because they over-index on a variety of types of apps. Those who own more than one device may not be assigned to the same Personas on all of their devices because their app usage patterns may not be the same across devices.
We started this analysis by considering what share of iOS devices used by members of each persona were iPhone and iPad. As shown in the “everyone” benchmark in the chart below, overall iPhone had a 72% share and iPad had 28%. The Personas shown above the “Everyone” bar skew more toward iPhone than the general population of iOS device owners, while the Personas shown below the “Everyone” bar skew more toward iPad.
Beginning at the top, the numbers illustrate that Personas “on the move” skew most heavily toward iPhone: Value Shoppers use iPhone to scan barcodes and find bargains, and Singles and Hip Urban Lifestylers use them to socialize. iPhone represents more than 90% of iOS devices (excluding iPod) owned by members of those Personas.
Somewhat surprisingly, that is also true of New Moms. In that case they may still be on the move, but in pursuit of the goods, services, and support they need for their new babies. New Moms may also have less free time to participate in leisure activities like reading and gaming which, as we will show soon, are more heavily associated with iPad.
It appears that moms’ device usage changes as their children get older. Moms (as opposed to New Moms) are one of the Personas that skew most toward iPad. Evidence from other sources and anecdotal observation suggests this is likely to be at least partially attributable to Moms using their tablets to entertain and educate older children. The fact that the Parenting and Education Persona skews toward iPad also supports this.
Moving to the bottom of the chart, the Personas that heavily favor iPad are associated with home-oriented activities. Those include Pet Owners and Home Design Enthusiasts, but also Small Business Owners, who may work from home. Gamers also skew more heavily toward iPad.
iPad Is For Learning and Playing -- Not Navigating
The time iPhone and iPad owners spend in different categories of apps also support the overall pattern of iPhone going out and iPad staying in. Overall, iPad owners in our sample spent 42% more time in apps on their devices than iPhone owners during May, but that time varied significantly by category. As shown in the chart below, compared to iPad owners, iPhone owners spent more than 13 times us much time using Navigation apps. They spent more than five times as much time using Health and Fitness apps to do things such as tracking walks, runs, and bike rides.
The app categories for which average time spent on iPad exceeds that for iPhone are Education, Newsstand, Games, and Reference. Again, more home-oriented activities.
iPad Is For Evening; iPhone Is For Late Night
The chart below shows how time spent using iPhone and iPad apps is distributed throughout the day. As might be expected based on the previous discussion and conventional wisdom about iPad, its heaviest period of use comes between 6 pm and 11 pm – times when most people have downtime for activities such as games and reading. iPhone app usage also peaks during that time, but the absolute amount of time on iPad and the percentage of app use that occurs during those hours is greater. Both of those differences are statistically significant.
The situation reverses as the night wears on, and between 2 am and 4 am usage is greater in iPhone apps than in iPad apps. This may be insomniacs reaching for phones at their bedside or those Singles and Hip Urban Lifestylers finding their way home from a late night.
What is perhaps most surprising about the distribution of time on each device throughout the day is how consistent the patterns are – especially between about 6 am and 4 pm. Given what we’ve described so far about iPhone being more of an out-and-about device and iPad being more of a stay-at-at home device, we believe that this is a function of varied lifestyles, with owners of different devices being at home and out-and-about at different times.
Multiple Devices, Multiple Personalities?
Our discussion up until now has focused on differences between iPad and iPhone owners, but obviously an increasing number of people own both devices. While our data does not enable us to link the same user across his or her different devices, we believe that individuals may express different parts of their personalities and lifestyles through their use of different devices. For example, by night a person in the Single and Hip Urban Lifestyle Personas may use her iPhone to organize her social life. By day that same person may use her iPad to run her interior design business, putting her in our Small Business and Home Design Enthusiast Personas.
That combination of person, usage situation and device is important for app developers and advertisers. For example, in this situation, our single small business owner may be more receptive to work-oriented apps and ads on her iPad and play-oriented apps and ads on her iPhone. Savvy app developers and advertisers will increasingly factor contextual differences such as those into their development and targeting plans.
Apps are telling – they signal our personal tastes and interests. There are probably nearly as many unique combinations of apps as there are devices, and the apps we use reveal a lot about us. Based on Personas that Flurry has developed for its advertising clients, we are beginning a series of blog posts to shed light on different groups of smartphone and tablet users and their app usage patterns. Moms -- who often control household budgets and expenditures -- are considered the prime audience for many brands. So we thought, where better to start our Personas series than by examining what moms are doing with apps?
Our analysis for this post relies on iPhone, iPad, and Android app usage during May of this year for a large sample (24,985) of American-owned smartphones and tablets. Discussion of app usage is based on time those devices spent in the 300,000+ apps that use Flurry Analytics.
What Apps Do Moms Use?
Moms, like most other groups, spend a lot of smartphone and tablet time playing games. In fact, on Android, more than half of the time American Moms spent in apps was spent playing games. Similarly, on iPad moms spent about half their time in games, but on iPhone, that percentage drops to a little less than a third of their time. On iPhone, lifestyle apps capture a larger proportion of Moms' attention (12%) than on iPad and Android devices.
As shown below, the second most popular category among moms on iPhone and Android devices is social networking. On iPad, newsstand (24%) was the second most popular category, demonstrating its strength as a screen for displaying magazine type content.
Where Do Moms Over-Index?
Most mobile consumers spend a large proportion of their app time in gaming and social networking apps, so what makes moms different from the other American owners of smartphones and tablets? Across iPhone, iPad, and Android, American Moms spend more time in education apps than the general population. Also, moms who own an iPhone or an Android device spend a greater share of their app time in health and fitness apps. Unsurprisingly, moms are also heavy shoppers. Android moms over-index for time spent in shopping apps, and iPhone moms over-index for time spent in catalog and lifestyle apps. (For this post, we have honored The App Store and Google Play’s systems for classifying apps. In iOS, shopping apps can fall into either the catalog or lifestyle category, whereas Android has a dedicated “shopping” category.)
Moms Own More Tablets And Gravitate Toward iOS
Compared to other American device owners, moms are enthusiastic users of tablets. As shown below, among the general population 25% of connected mobile devices were tablets, but for moms that percentage is 35%. This could be driven by the fact that many parents use tablets for sharing games and stories with their children.
60% of the smartphones and tablets we looked at were iOS devices. (Note that this number is a function of the installed base of active devices, so does not reflect market shares from sales in recent quarters.) For American Moms, the numbers lean even further toward iOS devices. A whopping 77% of moms own iOS devices while just 23% own Android. There are at least two factors that may explain this. First, it could be a function of Moms’ greater tablet ownership since iPad dominates the tablet market. Second, surveys show that women in general skew toward iOS devices. The key takeaway is that moms are much more likely to be found using iOS devices than Android devices.
For Moms, Connected Devices Are More For Escape Than Utility
So what can we infer about American Moms based on their app usage? For one thing, it appears that they use smartphones and tablets as a refuge from their busy lives. On average, half or more of the time they spend in apps is spent on social networking and game apps. In this sense, they are not that different from other Americans, but it does show that even busy moms need to escape and socialize, and mobile devices provide a way to do that.
Apps where American Moms spend a disproportionate share of time relative to other Americans also tell us something about their more serious side. Those apps tend to be improvement-oriented: education and health and fitness, for example. Moms are using their devices to help them achieve personal goals and possibly to educate their children.
We hope this post gives brands and developers a better idea of where the coveted American Mom is most likely to be during mobile time, and what is capturing their attention. App developers can tap into this valuable group by building experiences that give moms an escape from their hectic day-to-day routine, keep them socially connected, and help them improve different aspects of their lives. Media planners who want to reach American Moms should continue to buy ad inventory in gaming, news / magazine, and social networking apps, and to weight their budgets toward iOS apps.
The mobile revolution has been dubbed by many as the trillion dollar revolution. While it is still hard for anyone to quantify the overall economic impact of the mobile revolution, it is clear that mobile devices and apps are changing every aspect of our lives. From news consumption, to photo sharing, to gaming, to hailing a cab to depositing a check, every moment has become a mobile moment. In fact, most consumers who have a smartphone or a tablet can’t imagine their lives without these devices and apps. We have become addicted to instant gratification and the back pocket proximity of powerful computing technology.
At Flurry, we have been at the epicenter of the mobile revolution for more than five years now and today we see activity from more than 300,000 apps and three billion app sessions every day, giving us a unique vantage point into the behavior of over a billion worldwide mobile consumers.
Today, SourceDigital13 we are sharing a peek into a day in the life of a U.S. adult mobile consumer. (We'll blog some other parts of my keynote in future posts.) For this depiction (see chart below), we have used a random sample of 15,271 U.S. iOS users and we measured their app usage throughout the month of May, 2013. We also cut the data based on a 24-hour cycle to help understand the usage throughout an entire day.
Daytime, Nighttime and Bedtime Are All Apptime
Many conclusions can be drawn from this chart. Here are a few key observations:
- App usage steadily increases over the course of the day and ultimately peaks in the evening (unlike TV which remains low then has a dramatic jump in the evening.) This is a big change of perspective for media planners who have been used to weighting their budgets toward evening TV. In an app-centric world, that spend could effectively be spread throughout the day given consumers are reaching for their devices consistently throughout their waking hours.
- Wearable computing already arrived with the smartphone. Our data confirms what many of us know from experience: smartphones, tablets and the apps installed on them appear to be glued to consumers 24/7, 365. They are with us when we wake, work, exercise, eat, play and yes, even when we sleep. We have entered the era of “wearable computing” without needing the wearable gear. Even ahead of the mainstream adoption of Google Glass or Apple’s rumored wrist device, consumers are already embracing the wearable lifestyle with smartphones and tablets.
- While gaming still consumes a large portion of the time spent on devices, other categories appear to be closing the gap when it comes to consumer attention. With the proliferation of social and photo sharing apps, consumers are switched on and sharing every aspect of their lives.
- Shopping and lifestyle apps are used around the clock. Breakfast time, lunch time, dinner time and bedtime have become shopping time.
Millennials Just Might Surprise You
We drilled further into the app usage of young adults age 25-34, a highly-desired segment for brands and advertisers. That segment of the population enjoys high disposable income and has traditionally been a prime target of CPGs, travel, entertainment and retailers.
In the next chart, we have analyzed how app usage by this group indexes against the overall population. (In this chart, 0% represents average usage across all age groups. Positive percentages reflect the degree to which app usage for the 25-34 year old age group exceeds that of iOS users in other age groups.) The results surprised us.
Given the popularity of game apps you might expect that Millennials drive that usage, but in fact they under-index for game app usage. It’s turns out that it’s the middle aged Gen X-ers who grew up with gaming consoles who are over indexing on games. Millennials also under-index on time in Utilities and News than the rest of the population. The categories in which Millennials over-index are Sports, Health and Fitness; Music, Media and Entertainment; Lifestyle and Shopping.
We then went one step further to break down gender usage within the 25-34 age group. The results are shown in the chart below.
Females age 25-34 dramatically over index in the Sports, Health and Fitness category. They spend over 200% more time in these apps then the rest of the population. Women gravitate toward self-improvement related apps while men gravitate toward entertainment. Males age 25-34 over index in Music, Media and Entertainment as well as Social and Photo-Sharing. They under-index in News & Magazines. Confirming some age-old stereotypes, women 25-34 also over-index in Lifestyle and Shopping in which they spend 75% more time than the rest of the population.
Even with more than a billion worldwide active devices, we are still in the very early days of the mobile consumer age. New apps and experiences are emerging daily. In the blink of an eye, experiences such as Ubering (the new verb for ordering a cab using the popular Uber app) and Snapchatting (in reference to using SnapChat to exchange ephemeral photos and videos) have arrived in the mainstream of society and soon, we predict, the English dictionary. Just three years ago these experiences, 100% powered by our mobile devices, didn’t even exist.
Many things will change over the next few years but we predict that mobile devices will become even more a part of the fabric of society than they are today. That means marketers and advertisers need to learn how to make mobile a central part of their marketing and media plans, not just an afterthought.
Over the past four years, Apple’s iOS and Google’s Android have been locked into a two horse race for mobile OS ownership. In the past year, there has been a lot of focus on the rise of Android and its lead in device market share. More recently, many analysts started questioning the true value of Android’s market share especially in the high-end smart phone and tablet markets. At Flurry, we felt that it was important to take a step back and look beyond straight device or activation numbers to simply understand what market or markets are being contested.
In this report we do just that, arguing that there is more than one race for mobile market share occurring simultaneously. We analyzed four years worth of Flurry’s data to understand who is ahead in which contests, discuss the apparent strengths and weaknesses of the competitors, and consider the implications for the overall mobile ecosystem.
Android Leads In Device Market Share
It is clear from announcements from device manufacturers such as Apple and Samsung that Android is winning the race for device market share. Flurry’s own data supports this. The number of Android devices we are tracking worldwide doubled in the past year, reaching 564 million as of April of 2013. While the installed base of iOS devices that we track has also grown over that time, Android pulled ahead in active device share in late 2012 and has maintained that position ever since. This is shown in the chart below. This lead followed a period of just over a year in which the number one spot was changing hands. Prior to that Apple dominated the connected device market following the launch of first iPhone and then iPad. Approximate launch dates of some of the major iOS and Android devices are also shown on the chart as points of reference.
iOS Leads In App Market Share
In spite of Android’s rapid rise and current lead in device market share, iOS continues to lead in terms of time spent in apps. Total time in Android apps nearly equaled that in iOS apps in March of 2012, but it has declined somewhat since then, after the launch of the 3rd generation iPad.
Considering that there are more active Android devices than iOS devices but iOS users collectively spend more time in apps, it’s not surprising that more time per device is spent in iOS apps than in Android apps. The exact proportion of time spent in apps per Android device relative to iOS devices is shown below.
Why Doesn't App Share Follow Device Share?
An obvious question that arises when looking at the charts above is why app usage shares don’t follow device shares. We think there are at least three possible explanations.
One is that at least up until now the two dominant operating systems have tended to attract different types of users. Once Apple established the app ecosystem many of the consumers who purchased iOS devices were doing so to be able to run apps on those devices. They were buying a computer that fit in their pocket or purse. In contrast, many Android devices were provided free by carriers to contract customers upgrading feature phones. To the extent that those customers were just buying replacement phones, apps may be a nice add-on, but not a central feature of the device.
A second possible reason for why Android’s share of the app market lags its share in the device market is that the fragmented nature of the Android ecosystem creates greater obstacles to app development and therefore limits availability of app content. Hundreds of different device models produced by many manufacturers run the Android operating system. App developers not only need to ensure that their apps display and function well on all of those devices, but they also need to contend with the fact that most devices are running an old version of Android because the processes for pushing Android updates out to the installed base of Android devices are not nearly as efficient as those for pushing iOS updates to iOS device owners.
The final possible explanation for the differences in device and app usage shares relates to the first two. It is that the arguably larger and richer ecosystem of apps that exists for iOS feeds on itself. iOS device owners use apps so developers create apps for iOS users and that in turn generates positive experiences, word-of-mouth, and further increases in app use.
While app share and device share are two key races in the competition for mobile supremacy, they are not the only races. Another that has been in the news recently is the race for profits, in which Apple is the clear leader. Apple also currently appears to be winning the race for developer attention – probably both because of its share of app usage as described above and because both surveys and anecdotal evidence indicate that iOS device owners tend to generate greater advertising and in app purchase revenue.
A side race that Android appears to be winning is that for the emerging world, where its lower prices and open architecture give it an advantage. Apple has taken notice of that and is fighting back with incentives, monthly payment plans and cash backs in several emerging countries. In India, for example, a Times of India article suggests that these programs have given the iPhone a 400% boost in sales in the past few months.
As we’ve shown, there are multiple contests for mobile market share occurring simultaneously. That raises a question about whether that is a temporary state that will eventually give way to a clear overall winner or if there can be multiple long-term winners. For the moment it seems as though the consumer is winning in that they are able to choose devices from two dominant ecosystems as well as several smaller ecosystems.
Five years ago, the iPhone ushered in the era of mobile computing. Today, more than a billion consumers are “glued” to these devices and their applications, impacting nearly every aspect of their lives. For businesses, opportunities seem endless and disruption is everywhere. The list of disrupted industries is long, including communications, media and entertainment, logistics, education and healthcare, just to name a few.
The past five years at Flurry have been wildly exciting. We joined an industry just as gas was forming to ignite a Big Bang, and we’re still orienting ourselves within its rapidly expanding universe. Since early 2008, we’ve worked with tens of thousands of developers to integrate our analytics and ad platforms into their apps. Today our services have been added to more than 300,000 applications and we measure usage on more than 1 billion monthly active smart devices.
On the five-year anniversary of launching Flurry Analytics, we took some time to reflect on the industry and share some insights. First, we studied the time U.S. consumers spend between mobile apps and mobile browsers, as well as within mobile app categories. Let’s take a look.
Today, the U.S. consumer spends an average of 2 hours and 38 minutes per day on smartphones and tablets. 80% of that time (2 hours and 7 minutes) is spent inside apps and 20% (31 minutes) is spent on the mobile web. Studying the chart shows that apps (and Facebook) are commanding a meaningful amount of consumers' time. All mobile browsers combined, which we now consider apps, control 20% of consumers' time. Gaming apps remain the largest category of all apps with 32% of time spent. Facebook is second with 18%, and Safari is 3rd with 12% Worth noting is that a lot of people are consuming web content from inside the Facebook app. For example, when a Facebook user clicks on a friend’s link or article, that content is shown inside its web view without launching a native web browser (e.g., Safari, Android or Chrome), which keeps the user in the app. So if we return to the chart and consider the proportion of Facebook app usage that is within their web view (aka browser), then we can assert that Facebook has become the most adopted browser in terms of consumer time spent.
The App World
Five years into its existence, the app economy is thriving, with The Wall Street Journal recently estimating annual revenue of $25 billion. Once again, we have to appreciate that this economy did not exist until 2008. As we looked for possible signs of slowing, we could not find any, largely due to the fast adoption of tablets just after smartphones.
In fact, not only is the installed base of devices growing, but also the number of apps consumers use. Our next insight comes from studying how many apps the average consumer launches each day. For this snapshot, we compared three years of worldwide data, taking the 4th quarters of 2010, 2011 and 2012.
From left to right, we see that the average number of apps launched per day by consumers climbs from 7.2 in 2010 to 7.5 in 2011 and finally to 7.9 in 2012. This is not a material change, which is a good thing. To us, the steady growth rate indicates that the app economy is not yet experiencing saturation, as consumers steadily use more apps over time. And while there are more apps in the store, large numbers of them have short lifespans, such as books, shows and games. Assertions that people are using fewer apps in 2012 than they did in 2010 appear to be incorrect. While one could observe that consumers use only 8 apps per day among the million+ available between the AppStore and Google Play, one also needs to remember that the 8 apps each consumer uses varies widely. This creates a marketplace that can support diversified apps.
Finally, we studied a sample of more than 2.2 million devices that have been active for more than 2 years to understand the mix of new versus existing apps people use over time. To do so, we compared Q4 2012 to Q4 2010.
The chart above shows that, on average, only 17% of the apps used in Q4 2010 were in use earlier in the year on a device compared to 37% in Q4 2012. That means that 63% of the apps used in Q4 2012 were new, and most likely not even developed in 2011 (or possibly poorly adopted). We believe that with consumers continuing to try so many new apps, the app market is still in early stages and there remains room for innovation as well as breakthrough new applications.
The Web World
Looking again at the first chart in this study, while also considering the latest numbers from IDC, which projects that tablets will outsell desktops this year and notebooks next year, we draw the conclusion that the web, as we know it, is already facing a serious challenge. Does this mean the web is dead? We don’t believe so. On the contrary, we believe that the web will change and adapt to the reality of smartphones and tablets. Websites will look and behave more like apps. Websites will be optimized for user experience first and search engine optimization second. This supports the trend of mobile first and web second, which brings both mobile app and user experience design to the mobile web. Simply compare Target’s app on iPhone to its mobile web site (target.com) accessed from the iPhone. The mobile web site looks and behaves similarly to the Target app, albeit a little bit slower.
… and Facebook
Continuing to think about the first chart, it appears that mobile, once perceived as Facebook’s Achilles' heel, has become Facebook’s biggest opportunity. Consumers are spending an average of nearly 30 minutes per day on Facebook. Add to that Facebook's massive reach, as well as their roughly billion mobile users per month and you have a sizable mobile black hole sucking up peoples' time. The 30 minutes a day is a worldwide average which means a large group spends even more time on Facebook (possibly hours) watching and participating in what has become the ultimate reality show in which the actors are you and your friends.
The disruptive force of the mobile app economy has created opportunities, rising stars, instant millionaires, dinosaurs and plenty of confusion. However, one undeniable truth is that tablets and smartphones are eating up desktops, and notebooks and apps (including the Facebook app) are eating up the web and peoples’ time.
Flurry now detects about 1 billion smartphones and tablets in use around the world every month. In the last 30 days, we saw activity on more than 2,000 unique device models. As the device base grows, we’re seeing an increasing variety of screen sizes, from sub-smartphones to full-size tablets and beyond. This poses both challenges and opportunities for developers who must consider how audiences, usage behavior and app category affinities vary by form factor.
This report reveals which form factors and screen sizes consumers use most, and for what categories. For this study, we focused on the top 200 device models, as measured by active users in Flurry’s system, which represent more than 80% of all usage. Doing so, five groups emerged based on screen size:
1. Small phones (e.g., most Blackberries), 3.5” or under screens
2. Medium phones (e.g., iPhone), between 3.5” - 4.9” screens
3. Phablets (e.g., Galaxy Note), 5.0” - 6.9” screens
4. Small Tablets (e.g., Kindle Fire), 7.0” - 8.4” screens
5. Full-size tablets (e.g., the iPad), 8.5” or greater screens
Mid-Sized Smartphones Dominate. Phablets are a Fad.
The top bar in the chart below shows how the top 200 device models break down by form factor in the market. Starting from the left, 16% of devices have screen sizes that are 3.5 inches or fewer in diagonal length. 69% of devices are between 3.5 inches and 4.9 inches, which includes iPhone. The light gray are made up of “phablets” such as the Galaxy Note. The orange are small tablets such as the Kindle Fire and iPad Mini. Finally, the far right shows that 7% of the device models in use are full sized tablets such as the iPad. The two bars below show distributions by active devices (taking into account that some device models have more users than others) and the number of app sessions (taking into account that some device models get used for more app sessions per user than others), respectively.
Notice that while 16% of the device models in the market are small phones, they account for only 7% of active devices once users per device are taken into account and 4% of overall app sessions. The opposite is true for tablets, which account for 7% of the top 200 device models yet 15% of all active users and 13% of all app sessions. On the small end, we believe this is because smaller device models, including most BlackBerry devices, are older and therefore have fewer active users per model. They are also not as well-suited to apps because of their small screen sizes. Full-size tablets, however, are ideal for using applications and therefore see a disproportionately higher percent of sessions. They also tend to have more users per device model since this class of devices has been dominated by iPad.
The ‘Is it a phone or is it a tablet’ devices otherwise known as phablets have attracted interest, but currently command a relatively small share (2%) of the device installed base, and their share of active users and sessions is also relatively small.
Form Factor Varies by OS
Not surprisingly, the form factor share of device models and active device users varies by operating system. The chart below shows share of active users by form factor for the different OSs. Inspecting the chart, medium phones are the dominant form factor on all operating systems, except Blackberry, which still has more active users on small phones. Android owns the phablet market and also has the greatest proportion of devices using small tablets. iOS has the greatest share of active devices using large tablets. The only Windows device models that are in the top 200 device models in terms of active users are medium-sized phones.
Tablets Are Gaming Machines
The chart below shows how total time spent in select popular categories is distributed across form factors.
Starting at the top, notice that nearly a third of time spent playing games take places on larger devices, namely full-sized tablet, small tablets and phablets. And while they command consumer time spent, they represented only 15% of device models in use in February and 21% of individual connected devices. These differences are statistically significant.
Studying books and videos, it’s somewhat surprising that tablets, which possess larger screens, do not see a larger proportion of time spent. An explanation for the high concentration in time spent in smartphones could be that consumers watch videos from their smartphones on-the-go (e.g., commuting to work on public transit), whereas they opt for a bigger screen to watch video (e.g., computer or TV) when at work or home. We expect that tablets may represent a greater share of time spent in book and video apps in the future as tablet ownership expands and tablet owners branch out into more types of apps.
Consumers Signal Preference for Smartphones & Tablets
As OEMs experiment with an ever-expanding array of form factors, developers need to remain focused on devices most accepted and used by consumers. From our study, consumers most prefer and use apps on medium-sized smartphones such as the Samsung Galaxy smartphones and full-sized tablets like the iPad. In particular, smaller smartphones under-index in terms of app usage compared to the proportion of the installed base they represent, and would suggest they are not worth developers’ support. Phablets appear to make up an insignificant part of the device installed base, and do not show disproportionately high enough app usage to justify support. Tablets, on the other hand show the most over-indexing of usage, especially in games. The success some game developers are having with a tablet-first strategy, like dominant game maker Supercell, may also inspire developers of other types of apps to consider focusing on tablets.
Flurry recently revealed that China’s installed base of smartphones and tablets surpassed that of the United States. Further, two thirds of all app sessions now occur outside the United States. With the app market becoming increasingly international, developers need to better understand how app consumer behavior varies across different countries to remain competitive.
This report focuses on how the top 30 heaviest app using countries vary in terms of app usage. As developers build apps for the largest international markets, they need to consider deviating from what has worked in the United States, the former number one market. Can developers simply localize for different markets, or are there meaningful cultural differences in app usage to consider? How different is behavior in China and India, the world’s two most populous countries?
For this study, Flurry grouped countries according to their similarity in app category usage using cluster analysis. Cluster analysis is a statistical technique that creates groupings based on associations; in this case, among the proportions of app users who use different categories of apps. This technique controlled for differences in populations, device penetration rates and app store taxonomies. We ran this analysis for the top 20,000 apps in the 30 heaviest app using countries as of January 2013. For purposes of this report, we focus on app categories used by at least 5% of app users in at least one country cluster. We also excluded social networking, since use of those apps tends to be more country-specific.
Membership in the resulting country clusters are discussed next, followed by a description of some of the differences in app engagement across country clusters.
App Usage Around the Globe
The cluster analysis process produced six country groupings shown in the map below and the country list that follows.
As shown in the map above, the first group of countries in blue is made up of countries that tended to be early adopters of mobile technologies.
The second category, in purple, is comprised of the most hyper-connected parts of Asia: South Korea, Hong Kong and Taiwan.
China and Japan had app usage patterns that were unique to them, making each country its own cluster.
Most of the countries in green are neighbors in South East Asia; however, app usage patterns across the Pacific in Mexico also put it in that same category.
The final category, in yellow, includes many large countries, such as Brazil, Russia and India as well as smaller but influential countries such as Switzerland and Israel. Besides sharing similarities in app usage, these countries tend to have lagged behind the Mobile Pioneer and Connected Asia countries in adopting mobile technologies.
Countries shown in gray were not included in the analysis because they are not among the 30 heaviest app using countries.
Interest In Gaming Is Global. Genre Preferences Are Local
The chart below shows the proportion of app users who used apps within each of the gaming categories shown, as defined in Google Play, during January 2013.
Overall, games are the most-used types of apps in each country cluster, with the biggest Android game category being Arcade and Action games for all country clusters. While Android game categories follow a similar rank ordering across country clusters, there is clear variation between clusters. For example, compared to app users in Japan, almost twice the proportion of app users in the Equatorial Pacific country cluster use Android Arcade and Action games. And while countries in the Mobile Pioneers’ cluster are among the most enthusiastic users of Casual Games and Brain and Puzzle Games, they are less enthusiastic users of Arcade and Action games compared to those in most other country clusters.
The chart below shows similar data for iOS apps within each of the gaming categories as defined by the Apple App Store. Please note that these classifications have changed over time and that games are assigned to categories by developers; however those things are common to all countries and therefore should not, on their own, result in differences between countries.
Once again, note that the main Games category attracts a large proportion of people who use any iOS apps, and that the Equatorial Pacific has the greatest proportion of users and Japan has the least though the differences are not as great for iOS as they are for Android. It’s interesting to note that while Japan tends to lag the other country clusters in the proportion of device users engaging with most game app categories, the country that gave us karaoke leads in the proportion of app users who use iOS Music Games.
Interest In Productivity and Utility Apps Varies
While Japanese app users are disproportionately unlikely to play most types of games (with the exception of music, as noted above), they are disproportionately likely to use productivity and utility apps. Chinese app users are also disproportionately heavy users of these more functional types of apps.
Use of More Lifestyle-Oriented Apps Maps To Offline Behavior
Hobbies often associated with Japan came through in app usage for music games, and also in use of lifestyle-oriented apps in terms of Japanese enthusiasm for photography. Japanese device owners are more likely than device owners in other country clusters to engage with photography apps on both iOS and Android devices. Entertainment categories within both app stores are fairly broad so it’s not entirely clear why, but those from China and the Lumbering Giant country clusters are disproportionately heavy users of Entertainment apps on both of the major mobile operating systems.
Mapping the Future of Apps
While this analysis only scratches the surface of variation in usage of 20,000 apps across more than 800 million devices being used in 30 different countries, it shows systematic variation across country clusters even at a high level. This has important implications considering the great potential for growth of connected devices and app use in countries and country groupings such as China and the Lumbering Giants, given their large populations and relatively low current rate of device penetration. App usage patterns in those places don’t always mirror those in Mobile Pioneer countries, which up until now have been the source of a lot of app development. For example, productivity and utility apps are more popular in China and Japan than they are in the United States. Differences such as these suggest that app developers in Mobile Pioneer countries may need to give greater consideration to the usage patterns and preferences of those in other countries or else that we may see growing app developer communities in some of those other countries.
The Super Bowl is one of the world’s top media events. This year’s contest, Super Bowl XLVII, was hosted in New Orleans and drew an average of 108.4 million viewers, the third largest audience in U.S. television history. According to Nielsen, previous Super Bowls captured the top two U.S. TV audiences, with last year’s event drawing 111.3 million viewers and the previous year’s attracting 110.0 million.
While the contest on the field pitted the San Francisco 49ers against the Baltimore Ravens, an equally fierce battle for consumer engagement was waged across multiple screens. As the world’s top brands paid up to $4 million to air 30 second television spots, consumers were more distracted than ever, accessing mobile apps and social media in droves. Twitter reported 24.1 million Super Bowl-related tweets, the most popular of which focused on Beyoncé, Destiny’s Child, the Superdome power outage and key game moments. Facebook reported similar increases in conversations around these topics.
Mobile Apps Make TV the Second Screen
In this report, Flurry finds that mobile appears to have become the first screen. The implication is that, from this day forward, as marketers advertise on television, they must ensure that the content is sufficiently compelling to pull the consumer away from her smartphone or tablet. While TV may continue to be widely regarded as the first screen, Flurry believes that brands need to reverse that logic in order to reach and engage their consumers.
For this study, Flurry measured U.S. app session starts, per second, over the course of this year’s Super Bowl, last year’s Super Bowl, and the equivalent time period on the Sunday before this year’s Super Bowl (to establish a baseline for an average Sunday) from 3 PM PST to 8 PM PST. Flurry Analytics is used by 275,000 apps, including many of the most-used apps, with aggregate daily usage sessions of 2.4 billion.
For this analysis, we estimated U.S. app session starts occurring on Super Bowl Sunday by sampling from our own data and extrapolating based on the proportion of the market that Flurry "sees." To be able to compare across last year's to this year's Super Bowl, we created an index where “100” represents a baseline for app usage. Let’s start by looking at how this year’s Super Bowl app activity compared to that of last year’s.
The chart above shows this year’s Super Bowl in blue compared to last year’s Super Bowl in grey. The spark lines show application session starts in the U.S. sampled from Flurry’s system, per second. The way to interpret the chart is that if the line is moving up, consumers are picking up their phones (or tablets). And if the line is moving down, consumers are putting down their phones (or tablets). In other words, when something on the TV cannot sufficiently hold the consumer’s attention, she often reaches for her connected device. The advantage for using mobile app usage as a signal is that we can accurately measure when consumers are interacting with the mobile apps. In this way, we can distinguish between active (consumer is using the "app") and passive use (app is just "on"). Using mobile app usage as a signal, the events to which consumers paid the most attention were the National Anthems, Halftime shows and close finishes.
A few structural differences to the length, shape and height of the curves are worth noting. First, last year’s Super Bowl was faster up through the first half, as we see that Madonna’s half time show started earlier compared to Beyoncé’s. Additionally, this year’s Super Bowl was further extended due to the 34-minute power outage in the Superdome just after the beginning of the 3rd quarter. Relative to last year’s Super Bowl, consumers began picking up their phones and tablets en masse during this period. Next, this year’s Super Bowl curve (blue) sits higher than last year’s curve (grey), which indicates that there was more relative app usage in the U.S. this year versus last year. Specifically, we measure a 19% increase in app usage between last year’s Super Bowl versus this year’s.
The chart above plots app usage during this year’s Super Bowl against the same time period from the Sunday before. This gives us a sense for how much application usage varies on a normal Sunday compared to Super Bowl Sunday. Overall, total app usage dropped in aggregate by only 5% from the Sunday before to Super Bowl Sunday, which suggests that the Super Bowl largely failed to curb consumer app usage when compared to normal behavior. The height and the shapes of the curves are very similar. More notable differences did appear from just before the Super Bowl started up until about half way into the second quarter of the game, where consumers appeared to be paying more attention to the Super Bowl (i.e., the blue line was modestly below the grey line for that period). We also note a spike in app usage during the Jeep halftime report during the sports analyst commentary, followed by a plummet in activity during Beyoncé’s performance. Next, during the outage, consumers began using their apps. After gameplay resumed, app usage was very similar to a normal Sunday except for the last minutes of this year’s close Super Bowl finish, as the 49ers mounted an exciting, narrowly-missed comeback.
Next we studied how app usage varied during different times during the Super Bowl: while the game was on, when ads were broadcasted, during halftime and during the power outage. We used app activity during the game as a baseline.
The overall finding was that app usage did not vary greatly between commercials and game play, with only a slight increase in app session starts during ads in this Super Bowl, and an even smaller decline in session starts during the last Super Bowl. In contrast, session starts dropped by nearly ten percent during this year’s halftime. That suggests that while Beyoncé was compelling enough to cause viewers to put down their phones, much of the game and many of the ads were not. The large increase in app session starts during the power outage provides additional evidence that TV cannot hold attention without compelling content. Consumers turned to their smaller screens in great numbers as soon as there was a lull in the action on TV.
Of course, there is variation within these averages. Groups particularly prone to starting app sessions during ads include: Photo & Video Enthusiasts, Real Estate followers, Small Business Owners, TV Lovers and Movie Lovers. For your convenience, you can find Flurry (psychographic) Personas listed here. Consumers less inclined to start app sessions during ads include iPad Users, Food Enthusiasts, Catalog Shoppers, Fashionistas and Home & Garden Enthusiasts. Those most inclined to take a break from their apps and watch the halftime show included Home & Garden Pros, Health & Fitness Enthusiasts, Fashionistas, Catalog Shoppers and Food Enthusiasts. Groups whose app use climbed most during the power outage – suggesting that they were paying closest attention to the game at other times – were Males, Seniors and Sports Fans.
Mobile Is Killing The TV Star
Ratings from Nielsen confirm that people continue to sit in front of TVs on Super Bowl Sunday. However, the fact that overall app usage declined by less than just 5% compared to same time period on the prior Sunday suggests that a large amount of consumers’ attention is spent in apps, even as they sit in front of the TV. This should cause advertisers to question the value of paying a premium for Super Bowl ads when the attention premium they command is eroding. That’s particularly true for some groups. For example, overall app usage by Moms, during the time the Super Bowl was on, dropped by less than two percent compared to the previous week. While Tide’s “Miracle Stain” ad was certainly entertaining, it appears that the “Mom” target market was not paying attention.
The price of a Super Bowl ad pays for a lot on mobile whether that’s in app advertising, sponsored content, in-app product placement or branded apps, and Flurry believes many marketers may benefit from reconsidering their media mixes in light of evidence in this report showing that unless exceptionally interesting things are happening on TV, a significant and increasing amount of consumer attention is spent using smartphones and tablets.
New Consumer Behavior. New Strategy.
Brands who continue to believe in the potential of TV during major events such as the Super Bowl must also now understand the multi-screening behavior of their target market, and take that into account in developing their campaigns. For example, marketers targeting Fashionistas would be well-served by scheduling ads to run during or near the half-time show, while running in-app ads during the game itself. The reverse strategy would apply to groups such as Sports Enthusiasts. These results also have implications for those who wish to run integrated campaigns across screens: those will only be effective if the TV portion is compelling enough to pull attention away from the screens in the hands of the audience.
With the holy grail of TV events disrupted, advertisers need to take note. The winner of the Screen Bowl is the smartphone. Mobile is here. Mobile is the new first screen.
During the month of November, Flurry reached a major milestone, measuring more than a trillion unique events completed inside of mobile apps by consumers. The magnitude of this number, and what it means to an industry barely over four years old, that has already generated tens of billions of dollars, is unprecedented. An industry has shot up around Flurry in a way that no one, anywhere, could have imagined.
So it was against this backdrop that I began reading a series of differing investment theses written by Fred Wilson of Union Square Ventures (What Has Changed), Dave McClure of 500 Startups (What Hasn’t Changed) and Chris Dixon of Andreessen Horowitz (The Product Lens). The gist was about the cyclical nature of investing between consumer internet and enterprise companies, with another suggestion to focus on product over finances. The debate is entertaining, and not surprising. It validates a theory I’ve held since the mid-nineties about the fundamental difference between entrepreneurs and investors. Simply put, entrepreneurs focus on opportunity while investors focus on risk.
The venture industry wants familiarity, so it talks about consumer versus enterprise. The web comes with an understood set of metrics like page views, visits, unique users, returning visitors and bounce rates, to name a few. And there’s still a standard way of buying traffic (SEM) and getting traffic organically (SEO). There’s a clear index and path to the web, called Google, and most VCs understand Google economics. They understand the lifetime value vs. cost per acquisition equation. They can value businesses accordingly.
What the venture industry doesn’t yet understand is mobile and apps. Traffic acquisition is still an art more than a measurable science. No one has defined a set of metrics that the venture industry can use to universally compare the value of one app property to another, and business models on mobile are still new. On Sand Hill Road, the best line I hear is that “99 cents is the new free,” referring to the freemium model, but few truly understand what it means.
Mobile and apps are gobbling up the web and consumer Internet, and that’s where the opportunity is. And the opportunity has never been bigger. All around me, I see entrepreneurs living it, loving it and collecting it “99 cents” at a time. Meanwhile, the VCs are debating it.
Mobile App Growth: Measured by Flurry
In the month of November, we measured over a trillion events from over 250,000 applications created by more than 85,000 developers. Events are actions completed by consumers inside apps such as completing a game level, making a restaurant reservation or tagging a song. In November, we also measured over 60 billion sessions, which is the start and a stop of an application on a mobile smart device. The chart below shows the growth in events tracked since May of 2008, when we first made our analytics service available to developers. This growth reflects the growth of the app economy.
Mobile Apps: Dominating the Web and Challenging Television
The chart below updates Flurry’s analysis comparing time spent in mobile apps on smartphones and tablets to time spent on the web using a browser. For web usage on desktops, laptops and smart devices, we build a model using publicly available data from comScore and Alexa. For mobile applications, we use Flurry Analytics data, now gathering data from over 250,000 applications. This time around, we add time spent on television using data released by the United States Bureau of Labor Statistics for 2010 and 2011. Note that the bureau hasn’t yet released their 2012 numbers, but given the maturity of the TV market, we assume that time spent on TV is flat year-over-year.
Between December 2011 and December 2012, the average time spent inside mobile apps by a U.S. consumer grew 35%, from 94 minutes to 127 minutes. By comparison, the average time spent on the web declined 2.4%, from 72 minutes to 70 minutes. By our measurement, U.S. consumers are spending 1.8 times more time in apps than on the web.
The chart also shows that time spent in apps already totals 76% of time spent on television. With new content released via thousands of new apps each day, we expect this trend to continue. In fact, we ultimately expect apps on tablets and smartphones to challenge broadcast television as the dominant channel for media consumption. Compared to the 60-year-old television industry, apps are just over 4 years old. In particular, tablets will drive growth in app consumption in 2013 as TV-style content and major programming moves to the tablet. Most TV Networks have already adjusted to a dual screen world and are synchronizing their TV content with their tablet app content. We believe that, with the introduction of connected TVs, TV shows will behave like apps.
Media, Games and Entertainment: The 80/20 Rule
Finally, we measured the time spent using mobile apps per app category across iOS and Android smart devices. For this comparison, we use Flurry data over the month of November 2012 as a baseline, and then adjust based on Flurry’s penetration per category. The chart below shows that 80% of the total time spent is across gaming, social networking and entertainment categories.
The stats on gaming are particularly interesting. Returning to the Bureau of Labor Statistics survey data, the average U.S. consumer spent 1.2 hours (72 minutes) per day playing a game, on any platform. Our data shows that 43% of time spent in mobile apps, 55 minutes, is spent in games. This means that mobile gaming on tablets and smartphones has absorbed 76% (55 of the 72 minutes) of the total time consumers spend on gaming, anywhere. Now, that's disruptive.
In just 4 years, mobile apps have overtaken the web and are beginning to challenge television, the top media channel. As we enter 2013, the app industry shows no signs of slowing. On the contrary, we continue to see a strong flow of new devices and new apps activated in our network. While VCs debate what part of the investment cycle we’re in and how to manage risk, all entrepreneurs need to know - from one entrepreuneur to another - is that you're witnessing the opportunity of a lifetime.
Marshall McLuhan popularized the idea of the “global village” in the 1960s through his books The Gutenberg Galaxy: The Making of the Typographic Man and Understanding Media. McLuhan, who is credited with predicting the concept of the Internet decades before it actually existed, described the instantaneous movement of information from every quarter to every point at the same time, enabled by electric technology. The result is that the globe contracts into a village.
Post-Internet, the explosive adoption of iOS and Android smart devices best extends his theory. Enabled by this new computer-mediated platform is the distribution of apps, from every quarter to every point, at the same time. Consider that in the United States today, right now, teams from Finland, Japan, Israel and the UK share top grossing positions alongside U.S. teams in the iTunes App Store and Google Play. Today, in the top Chinese app stores, one can find American, French and Japanese companies alongside Chinese companies for a top share of revenue. And in the top UK app stores, companies from Serbia, Finland, Japan, China and the U.S. are counted among local UK companies as top revenue generators.
Welcome to the new global village built on a foundation, per Flurry’s count, of three quarters of a billion active iOS and Android smart devices, simultaneously running across more than 220 countries and territories that will generate revenue approaching $10 billion in 2012. This report focuses on the further shrinking of the global village, driven by the prolific spread of global smart devices over the last 12 months. We show which countries have the largest active smart device installed bases, are experiencing the fastest growth and how the distribution of app usage is shifting to become increasingly international. For its analysis, Flurry uses data from more than 250,000 applications that it tracks, running on more than 750 million devices worldwide. With its application coverage, Flurry estimates that it can reliably detect over 90% of all iOS and Android devices active in the world during a given month.
Let’s start by looking at which countries make up the world’s largest app markets.
The chart above shows the top markets by their active iOS and Android user bases during October 2012. The US and China tower over the next group of top markets by at least five times. And while the U.S. has added a whopping 55 million net active devices since October 2011, China has added a dizzying 125 million, a figure that totals the sum of the UK, Japan and South Korea’s combined, current active user base. Flurry predicts that China will surpass the U.S. in total installed base by the end of Q1 2013, delayed only by the upcoming massive holiday season that will spike the U.S. installed base.
The chart above shows the growth in active devices per country between October 2011 and October 2012. China leads the world with an impressive 293% year-over-year growth rate, spurred by the potent combination of its vast population and rapidly growing middle class. For this chart, Flurry selected countries that had a minimum of a half a million active devices as of October 2011. Compared to prior Flurry international growth studies, we note that a new set of fast-growers has now entered the top 10 including Colombia, Ukraine, Venezuela and the Philippines, further demonstrating the shrinking global village.
Lastly, we look at the volume of application usage across the globe tracked by Flurry, which we estimate comprise of approximately one fifth of all worldwide app sessions on iOS and Android, the world’s largest cross-platform sample. Year-over-year app sessions in the U.S. declined as a proportion of WW sessions between October 2011 and October 2012, from 48% to 29%. The balance of the top 10 (ranks 2 -9) grew from 27% in October 2011 to 39% in October 2012. The rest of the world also made gains from 25% in October 2011 to 32% in October 2012. In total, 71% of all app sessions now take place outside the U.S.
Over the last century, the distribution of the world’s information has migrated from print (e.g., books and newspapers) to mass media (e.g., radio and television) to computer-mediated media (i.e., the Internet). Over just the last five years, however, we’ve taken the most significant step forward in the evolution of media distribution with the unprecedented adoption of smartphones and tablets: portable, broadband-connected super computers connected to The Cloud. Applying McLuhan’s point of view that “the message is the media,” apps are the new message.