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November 29, 2012

App Annie Index Shows Google Play Revenue and Downloads Quickly Catching Up to iOS

By David Gitonga, TMCnet Contributing Writer

What would you say is the secret to becoming a global app success? Is it distributing a large quantity of apps or marketing one or two high quality apps? Interesting enough, both business models seem to be successful. The new App Annie monthly report seems to support this. The monthly report, which charts and analyzes download trends and major revenue within Google (News - Alert) Play and iOS stores worldwide, clearly shows large and small publishers are benefiting from these two business models.

According to the CEO of App Annie, Bertrand Schmitt, the company aims to use analytics and market data to drive better business decisions and this first index shows iOS leading in global revenue in October. However, is clear that Google Play’s rising adoption in Asian markets, especially Japan and South Korea, is driving major revenue growth opportunities. The company leveraged data from its premium service, App Annie Intelligence, and the index will be made available on the company’s blog every month.

Some of the insights we can gain from the report is that Japan has overtaken the U.S. in Google Play revenue for the first time in October. Since January 2012, there has been more than 10 times more revenue from Japanese apps on Google Play while the U.S. revenue has doubled during the same period. Interestingly though, Japan accounts for only a quarter of the download volume to the U.S. The average revenue per user, however, is significantly higher than other countries.

On the iOS, the U.S. still leads at 32.7 percent compared to Japan’s 14.4 percent. Japan, however, seems to be catching up pretty fast.

On the platform level, the iOS global app store revenue was four times larger than Google Play revenue. However, revenue growths show a 311 percent for the year-to-date. The download volume on Google Play also shows a 48 percent growth rate while iOS has only 3.3 percent growth.

According to Schmitt, the global revenue gap between the iOS and Google Play is shrinking every month, which is creating growth opportunities for publishers on Google Play.

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Edited by Brooke Neuman
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