Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Google Play Store and iOS continue to demonstrate strong growth
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- Figure 1: Gross mobile app revenue for iOS and Google Play Store, 2013-23
- Growth in connected device ownership has driven the app market
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- Figure 2: Ownership of connected devices, January 2012-April 2018
- iOS 12 officially launched in September 2018
- Android Pie update launches initially on Pixel smartphones
- Companies and brands
- Entertainment and leisure apps are the most heavily advertised
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- Figure 3: Total above-the-line, online display and direct mail advertising expenditure on mobile apps, 2015-17
- The consumer
- Nearly six in 10 smartphone owners use Android
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- Figure 4: Smartphone operating systems, July 2018
- Nearly half of tablet households have iPads
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- Figure 5: Tablet operating systems, July 2018
- Men are downloading apps far more regularly than women
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- Figure 6: App download frequency, July 2018
- Majority of people have not paid for app downloads in the last month
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- Figure 7: Paid app downloads, July 2018
- Six in 10 people aged 16-24 check user reviews before downloading apps
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- Figure 8: Influences on app downloads, July 2018
- Messaging and social media apps are the most frequently used
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- Figure 9: Mobile app usage, July 2018
- Over three quarters of app users have not recently paid for premium access
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- Figure 10: Premium app access, July 2018
- Augmented reality innovations are providing new opportunities for app developers
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- Figure 11: Mobile app features used, July 2018
- Eight in 10 people delete apps they are not using regularly
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- Figure 12: Attitudes towards app usage, July 2018
- Nearly six in 10 16-24-year-olds watch video on apps more than websites
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- Figure 13: Attitudes towards media apps, July 2018
- Seven in 10 people only download free apps
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- Figure 14: Attitudes towards app payments, July 2018
- What we think
Issues and Insights
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- The future of app revenue generation
- The facts
- The implications
- Smartphone innovations driving app potential
- The facts
- The implications
The Market – What You Need to Know
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- Google Play Store and iOS continue to demonstrate strong growth
- Apple producing far higher app revenues than Android despite lower usage
- High app store fees could see some brands seek alternative routes
- Gaming dominates the highest-grossing apps across iOS and Android
- Growth in connected device ownership has driven the app market
- Expanding digital advertising market set to benefit mobile app revenues
Market Size and Forecast
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- Google Play Store and iOS continue to demonstrate strong growth
- Apple producing far higher app revenues than Android despite lower usage
- High app store fees could see some brands seek alternative routes
- Focus on digital health could reduce app usage times
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- Figure 15: Gross mobile app revenue for iOS and Google Play Store, 2013-23
- Figure 16: Gross mobile app revenue for iOS and Google Play Store (source data), 2013-23
- Gaming dominates the highest-grossing apps across iOS and Android
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- Figure 17: Top apps, by revenue, on the UK iOS App Store, August 2018
- Figure 18: Top apps, by revenue, on the UK Google Play Store, August 2018
- Forecast methodology
Market Drivers
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- Growth in connected device ownership has driven the app market
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- Figure 19: Ownership of connected devices, January 2012-April 2018
- Expanding digital advertising market set to benefit mobile app revenues
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- Figure 20: Forecast of digital advertising expenditure in the UK, 2012-22
- Popularity of mobile gaming driving app revenue growth
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- Figure 21: Forecast of mobile gaming market revenues in the UK, 2013-23
- VR and AR providing new opportunities for app development
- iOS 12 officially launched in September 2018
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- Figure 22: Apple iOS 12 Group FaceTime
- Android Pie update launches initially on Pixel smartphones
- Digital wellbeing is a key focus of software updates
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- Figure 23: The Android Pie Digital Wellbeing dashboard
- Figure 24: Apple’s Screen Time feature
Companies and Brands – What You Need to Know
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- New smartphone technology boosting potential for AR apps
- Epic Games bypasses Google Play with Android Fortnite release
- Oculus updates app for remote VR downloads
- HSBC launches Connected Money app
- Entertainment and leisure apps are the most heavily advertised
- Television dominates app advertising but digital is growing
Launch Activity and Innovation
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- New smartphone technology boosting potential for AR apps
- Apple launches Measure app with full iOS 12 release
- Epic Games bypasses Google Play with Android Fortnite release
- Google Maps supports location-based games
- Oculus updates app for remote VR downloads
- HSBC launches Connected Money app
- Credit card app Curve launches in UK
- YouTube adds HDR support to iOS app for new iPhones
Advertising and Marketing Activity
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- Entertainment and leisure apps are the most heavily advertised
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- Figure 25: Total above-the-line, online display and direct mail advertising expenditure on mobile apps, by category, 2015-17
- Television dominates app advertising but digital is growing
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- Figure 26: Total above-the-line, online display and direct mail advertising expenditure on apps, by media type, 2017
- Figure 27: Top 10 advertisers, by total above-the-line, online display and direct mail advertising expenditure on mobile apps, 2017
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Nearly six in 10 smartphone owners use Android
- 16-24-year-olds favouring iPhones more than any other age group
- Nearly half of tablet households have iPads
- Men are downloading apps far more regularly than women
- Seven in 10 people have not paid for app downloads in the last month
- Six in 10 people aged 16-24 check user reviews before downloading apps
- Messaging and social media apps are the most frequently used
- Six in 10 people aged 16-24 are using music streaming apps every day
- Majority of app users have not recently paid for premium access
- Augmented reality innovations are providing new opportunities for app developers
- Eight in 10 people delete apps they are not using regularly
- Seven in 10 people only download free apps
Operating Systems
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- Nearly six in 10 smartphone owners use Android
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- Figure 28: Smartphone operating systems, July 2018
- 16-24-year-olds favouring iPhones more than any other age group
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- Figure 29: Smartphone operating systems, by age, July 2018
- Nearly half of tablet households have iPads…
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- Figure 30: Tablet operating systems, July 2018
- …rising to a peak of six in 10 among 16-24-year-olds
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- Figure 31: Tablet operating systems, by age, July 2018
App Downloads
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- Men are downloading apps far more regularly than women…
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- Figure 32: App download frequency, July 2018
- …but age is the biggest factor
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- Figure 33: App download frequency, by age, July 2018
- iOS users are downloading apps more frequently than Android users
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- Figure 34: App download frequency, by smartphone operating system, July 2018
- Seven in 10 people have not paid for app downloads in the last month
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- Figure 35: Paid app downloads, July 2018
- Six in 10 people aged 16-24 check user reviews before downloading apps
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- Figure 36: Influences on app downloads, July 2018
App Usage
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- Messaging and social media apps are the most frequently used
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- Figure 37: Mobile app usage, July 2018
- Six in 10 people aged 16-24 are using music streaming apps every day
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- Figure 38: Mobile apps used daily, by age, July 2018
- Majority of app users have not recently paid for premium access
- Premium dating app access dominated by men
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- Figure 39: Premium app access, July 2018
- Biometrics are increasing app security
- AR innovations are providing new opportunities for app developers
- 13% of 25-34-year-olds have used VR apps
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- Figure 40: Mobile app features used, July 2018
Attitudes towards Mobile Apps
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- Eight in 10 people delete apps they are not using regularly
- Most people still prefer to shop via websites rather than apps
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- Figure 41: Attitudes towards app usage, July 2018
- Nearly six in 10 16-24-year-olds watch video on apps more than websites
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- Figure 42: Attitudes towards media apps, July 2018
- Eight in 10 16-24s listen to music on smartphones and tablets more than other devices
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- Figure 43: Music app usage, by gender and age, July 2018
- Over four in 10 16-24s limit app use to avoid going over mobile data limits
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- Figure 44: App use and data limits, by gender and age, July 2018
- Seven in 10 people only download free apps
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- Figure 45: Attitudes towards app payments, July 2018
- Eight in 10 employed 16-24-year-olds would share personal data for free app access
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- Figure 46: Target group for personal data in exchange of free access – CHAID – Tree output, July 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Market size and forecast
- Fan chart forecast
- Total market value forecast
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- Figure 47: Forecast for the value of the UK iOS and Google Play Store revenue, 2018-23
- CHAID analysis – Methodology
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- Figure 48: Target group for personal data in exchange of free access – CHAID – Table output, July 2018
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