Mobile apps are no longer just for an American audience.
According to Flurry, the U.S. share of Android and iOS app sessions shrank a remarkable 19 percentage points in the past year. U.S.-based sessions now account for less than one-third of the total. The next nine largest markets soaked up much of the usage, increasing their share 12 percentage points to 39 percent of app sessions.
While the U.S. is still the most profitable market for app makers, developers need to start turning their eyes toward the global market, where much of the growth in mobile apps will occur as smartphone penetration slows in the U.S. and other early adopter markets.
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Data is starting to trickle in and shape our understanding of the nascent mobile ad market. According to data from Flurry Analytics, 25- to 34-year-old females are the most valuable demographic for advertisers and publishers (as measured by the underlying click-through and conversion rates).
This is not surprising: Young people have adopted smartphones at a much higher rate than their parents. However, mobile CPMs will eventually even out as penetration picks up amongst older age groups. Furthermore, women should be more valuable because they historically have controlled household expenses and there is some evidence that they use smartphones more than men while shopping.
Finally, the eCPMs strike us as pretty high—even as smartphone usage has exploded, demand seems to have held up.
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Apple and Google activated a record breaking number of mobile devices this Christmas, according to Flurry analytics, which delivers mobile analytics to developers. Flurry has 140,000 apps running its software, and believes it can track every new Android or iOS device activated.
Between December 1 and 20, 1.5 million Android and iOS devices were activated daily on average. On Christmas day, a record breaking 6.8 million devices were activated, a 353% increase over the rest of the month. It’s also much better than 2010, when 2.8 million devices were activated.
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One year and—barely—nine months. That’s what it has taken Apple to invade 19 percent of the total US portable game market, while the PSP sunk from 20% to 11%, and the Nintendo dropped 5%. And that’s only revenue.
Taking into consideration that games in the App Store are cheaper than in the PSP and Nintendo, and that 30,000 titles have been released since its July 2008 launch, I wonder if the actual unit sales figures are quite larger.
In the general gaming category, Apple has taken over 5% of the market, while the rest of the portables have increased to 24% from 20% and the home console market has dropped to 71% from 79%. Knowing about these sharp increases—and knowing that iPhone games are still in their infancy—it’s not surprise that game developer are choosing the iPhone en masse.
Beer is yet another commodity and category that is being decimated by better quality alternatives. The means of production and distribution are no longer controlled by a very small number of big companies. Consumers find attractive alternatives in micro-brew beers or local beers. They have the means to access them (online) and have the product shipped directly to their homes. So no matter how much advertising the big companies do, if their product is just not that great, they will continue to lose customers to alternatives. The “lime” version of Bud Light was said to cannibalize sales of regular Bud Light. And rightly so, consumers are looking for a better product.
Fourth of July Holiday: Bargain Brands Gain, but Big Spenders Bud, Miller Lite and Corona Tap Out
Published: July 27, 2009
Despite a flurry of new and improved ad pushes for the country’s leading brews, the days leading up to Independence Day, usually the biggest-selling period of the year for the category, led to gruesome sales declines vs. the same period last year. Sales for Anheuser-Busch’s Bud Light and Budweiser plunged 7% and 14%, respectively, in grocery, convenience and drug stores during the two-week period ending July 5, according to scanner data from Information Resources Inc. Miller Lite suffered a 9% drop. The big importers were hurt badly too: Corona marketer Crown Imports watched sales decline 6% to 8%, while Heineken and Diageo each saw double-digit drops.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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