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Disrupt or be Disrupted: How Apps are Transforming Australian Business Jaede Tan Regional Director, App Annie
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Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Jan 22, 2018

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Page 1: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Disrupt or be Disrupted:

How Apps are Transforming Australian Business

Jaede TanRegional Director, App Annie

Page 2: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

App Annie Is the Most Trusted Partner in the App Economy

2 www.appannie.com/intelligence | © 2017 App Annie

94 of top 100 mobile app

companies are App Annie customers.

Page 3: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

App Annie: Global Reach, Local Expertise

450 Employees across16 Locations

Page 4: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

4 © App Annie 2017

Time In Apps

2 Hours Per Day

85% Time on Smartphones

PROPRIETARY

Page 5: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

PROPRIETARY

How many apps are on our phones?

Page 6: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

PROPRIETARY

How many apps are on our phones?

90

Page 7: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

PROPRIETARY

How many apps do Australians use in a month?

Page 8: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

PROPRIETARY

How many apps do Australians use in a month?

36

Page 9: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Usage and Revenue go Hand in Hand

App Market Maturity Model

Vol

ume

Time

Usage

Downloads

Revenue

Page 10: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

All Categories Showing Strong Usage Growth

Worldwide Total Time Spent* in Apps

Bill

ions

(Hou

rs)

*Time spent on Android Phones, excluding China

Page 11: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Revenue is Soaring Globally

Page 12: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

H1 2017 YOY Worldwide Consumer Spend

Americas

$8.1B+28%

EMEA

$4.9B

+23% Asia

$17.1B

+49%

Page 13: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2017

Australia is a unique market. Here’s why.

Page 14: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2016

1. One of the highest smartphone penetration rates globally

Page 15: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2016

1. One of the highest smartphone penetration rates globally

2. Australians are well acquainted with a wide variety of apps from mobile first and traditional companies

Page 16: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Australians Are Hungry For a Wide Variety of Apps

* Australia HQ Companies

Page 17: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

And They Are Using Apps For Everything

9th8th 10th 12th 13th 24th

Select Top Apps by iPhone MAU, October 2017

*Australia(excluding pre-installed apps)

Page 18: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

App Market & Category Highlights

Page 19: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Australia #8 Globally by Revenue

Page 20: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Australia #8 Globally by Revenue

Page 21: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Australia a Top Market for Monetization

Page 22: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Key Categories Showing Solid YOY Growth

Total Time Spent in Selected CategoriesAndroid Phone, Australia

Tim

e Sp

ent (

Mill

ions

H

ours

)

Page 23: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

“Consumers used to evaluate all their experiences in silos. ‘I’ll compare CarMax against

all other used car dealers and I’ll compare Nordstrom against all other clothing retailers.’

Page 24: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

“Consumers used to evaluate all their experiences in silos. ‘I’ll compare CarMax against

all other used car dealers and I’ll compare Nordstrom against all other clothing retailers.’

But now, people are taking those best experiences and demanding they receive the

same or better everywhere.”Jim Lyski, CMO, CarMax

Page 25: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Embrace Mobile as a Digital Channel to Drive Desired Customer Behaviour

Page 26: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Which KPIs to use? Which KPIs to Add, and What Goals to Set?

$

Page 27: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Which KPIs to use? Which KPIs to Add, and What Goals to Set?

$

Avg session duration

Avg sessions per user

Time Spent

Page 28: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Which KPIs to use? Which KPIs to Add, and What Goals to Set?

Active Users Time Spent $

MAU / WAU / DAU

Open rate

Avg session duration

Avg sessions per user

Page 29: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Which KPIs to use? Which KPIs to Add, and What Goals to Set?

Downloads

Install penetration

Avg review score

Active Users Time Spent $Downloads

Retention

MAU / WAU / DAU

Open rate

Avg session duration

Avg sessions per user

Page 30: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Entertainment

Page 31: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

*Top Video Streaming Apps by combined iPhone and Android phone MAU (iPhone only for China)

Average MAU Growth in Top 5 Video Streaming Apps*H1 2017 vs H1 2015

%G

row

th M

AU

Video Streaming Apps Adding Users Quickly

Page 32: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

*Top Video Streaming Apps by combined iPhone and Android phone MAU (iPhone only for China)

Average MAU Growth in Top 5 Video Streaming Apps*H1 2017 vs H1 2015

%G

row

th M

AU

Video Streaming Apps Adding Users Quickly

Page 33: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Average Monthly Time in Apps Per UserTop 5 Video Streaming Apps* by Publisher Type

% G

row

th in

Tim

e Sp

ent P

er U

ser

H1

2017

vs

H1

2016

Average Time Per User Per Month (Hours), H1 2017

Online-First Video Apps See Better Engagement

Page 34: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Average Monthly Time in Apps Per UserTop 5 Video Streaming Apps* by Publisher Type

% G

row

th in

Tim

e Sp

ent P

er U

ser

H1

2017

vs

H1

2016

Average Time Per User Per Month (Hours), H1 2017

Online-First Video Apps See Better Engagement

Page 35: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

*Combined iOS app store and Google Play revenue (China only for iOS)**SEA includes Malaysia, Indonesia, the Philippines, Singapore, Thailand and Vietnam

Revenue in Top 5 Video Streaming AppsH1 2017 vs H1 2016

Video Apps Seeing 125% Growth YoY

Inde

xed

Rev

enue

Page 36: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

*Combined iOS app store and Google Play revenue (China only for iOS)**SEA includes Malaysia, Indonesia, the Philippines, Singapore, Thailand and Vietnam

Revenue in Top 5 Video Streaming AppsH1 2017 vs H1 2016

Video Apps Seeing 125% Growth YoY

Inde

xed

Rev

enue

Page 37: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Finance

Page 38: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Growth in Downloads in Applications (Non-Games) vs. Finance* Category Apps 2014–2016

Per

cent

age

Gro

wth

*Category Includes Finance Categories on Both iOS and Google Play (iOS-only for China)**SEA Includes Thailand, Indonesia, Malaysia, Singapore, Philippines and Vietnam

Finance Category Apps Experiencing Strong Downloads Growth

Page 39: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Average Monthly Sessions in Top 10 Banking Apps*

Sess

ions

Per

Use

r

*Top Apps by MAU on Android Phone

Australians Using Banking Apps Almost Daily

Page 40: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

13-24 Year Olds in Australia Are Power Users

30

Sessions per Month in Retail Banking Apps

Page 41: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Top Banking Apps of 2016: Australia

MAU

Traditional Banks Dominate in Australia

Rank App

1 CCB Mobile Application

2 China Merchants Bank Pocket Life

3 China Merchants Bank

4 ICBC Mobile Banking

5 Bank of China Mobile

6 ICBC e-Bank

7 ABChina Mobile Banking

8 Bank of Communications

9 Pingan Life Insurance

10 SPD BANK Mobile

Rank App

1 KBstar banking

2 NH Bank

3 Shinhan S Bank

4 Woori Bank Personal Banking

5 Shinhan FAN

6 Woori Bank Push

7 Hana 1Q bank

8 i-ONE Bank by IBK Bank

9 Shinhan Card

10 HyundaiCard

Rank App

1 Rakuten Card

2 Bank of Tokyo-Mitsubishi UFJ

3 Mitsui Sumitomo Bank

4 Rakuten Bank

5 Jibun Bank

6 SAISON Portal

7 Mitsui Sumitomo Card Vpass

8 SBI Sumishin Net

9 Mizuho Bank Direct

10 Japan Net Bank Balance Check

Rank App

1 CommBank

2 ANZ goMoney Australia

3 NAB

4 Westpac Banking

5 ING DIRECT Australia Banking

6 St.George Banking

7 Bankwest

8 Suncorp Bank

9 Citibank Australia

10 Bendigo Bank

Top Banking Apps of 2016: ChinaMAU

Top Banking Apps of 2016:South Korea

MAU

Top Banking Apps of 2016:JapanMAU

Core Banking Services Specialized Financial Services

Page 42: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Top Banking Apps of 2016: Australia

MAU

Traditional Banks Dominate in Australia

Rank App

1 CCB Mobile Application

2 China Merchants Bank Pocket Life

3 China Merchants Bank

4 ICBC Mobile Banking

5 Bank of China Mobile

6 ICBC e-Bank

7 ABChina Mobile Banking

8 Bank of Communications

9 Pingan Life Insurance

10 SPD BANK Mobile

Rank App

1 KBstar banking

2 NH Bank

3 Shinhan S Bank

4 Woori Bank Personal Banking

5 Shinhan FAN

6 Woori Bank Push

7 Hana 1Q bank

8 i-ONE Bank by IBK Bank

9 Shinhan Card

10 HyundaiCard

Rank App

1 Rakuten Card

2 Bank of Tokyo-Mitsubishi UFJ

3 Mitsui Sumitomo Bank

4 Rakuten Bank

5 Jibun Bank

6 SAISON Portal

7 Mitsui Sumitomo Card Vpass

8 SBI Sumishin Net

9 Mizuho Bank Direct

10 Japan Net Bank Balance Check

Rank App

1 CommBank

2 ANZ goMoney Australia

3 NAB

4 Westpac Banking

5 ING DIRECT Australia Banking

6 St.George Banking

7 Bankwest

8 Suncorp Bank

9 Citibank Australia

10 Bendigo Bank

Top Banking Apps of 2016: ChinaMAU

Top Banking Apps of 2016:South Korea

MAU

Top Banking Apps of 2016:JapanMAU

Core Banking Services Specialized Financial Services

Page 43: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Credit Card & Loyalty

Transaction Tracking & Alerts

Investments & Insurance

Mobile Payments & Wallets

Core Banking Apps

Shinhan S Bank Shinhan CardShinhan FanShinhan Bank

Salimi

Shinhan Investment

i mobile

Rakuten Bank Rakuten Card

China Merchants Bank

China Merchants Bank Pocket Life

CommBank

South Korea

China

Australia

Japan

Rakuten Pay

Financial Services Apps by Selected Banking Organizations

Banks Have Embraced Apps, but Approach Varies by Market

Page 44: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Retail

Page 45: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Australia Top Shopping Apps by MAU October 2017, iPhone

Few Traditional Retailers Inside Australian Top Rankings

Page 46: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Australia Top Shopping Apps by MAU October 2017, iPhone

Few Traditional Retailers Inside Australian Top Rankings

Page 47: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2017

Traditional Retailers Can Win on Mobile

Page 48: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Rank App

1 Amazon

2 eBay

3 Walmart

4 Groupon

5 Walgreens

6 Wish

7 Carthweel

8 letgo

9 Kohl's

10 OfferUp

H1 2017 Top Shopping Apps by Combined MAU, United StatesUS Top Brick & Mortar Shopping Apps by MAU

Inde

xed

MA

U

USA: Traditional Retailers Fight Back

Page 49: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Rank App

1 Amazon

2 eBay

3 Walmart

4 Groupon

5 Walgreens

6 Wish

7 Carthweel

8 letgo

9 Kohl's

10 OfferUp

H1 2017 Top Shopping Apps by Combined MAU, United StatesUS Top Brick and Mortar Shopping Apps by MAU

Inde

xed

MA

U

USA: Traditional Retailers Fight Back

Page 50: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2016

1. What successful/unsuccessful features did they build?

2. How did they market the app?

3. One bundled app? Or many unbundled apps?

Lessons to Learn From Their Data

Page 51: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2017

Starbucks - The Gold Standard of Loyalty

Page 52: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2016

Lessons to Learn From Their Data

Page 53: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2016

Lessons to Learn From Their Data

Customers could start using Uber to book a ride to Starbucks

Page 54: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2016

Mobile Success: Starbucks

App driving

8% of all

transactions

>20% in busiest

stores

Page 55: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Confidential l Property of App Annie l Do Not Disclose l © App Annie 2016

Driving Product Innovation

• Identify new product features, that produce the best outcomes

• Benchmark against the best apps to build an app that customers want

Page 56: Jaede Tan - Disrupt or be disrupted: How apps are transforming Australian business

Thank you! appannie.com/insights