App Annie and co-founder charged with securities fraud, will pay $10M+ settlement

The U.S. Securities and Exchange Commission (SEC) has charged App Annie, a leading mobile data and analytics firm, as well as its co-founder and former CEO and Chairman Bertrand Schmitt, with securities fraud. App Annie and Schmitt have agreed to pay over $10 million to settle the fraud charges which are related to “deceptive practices and making material misrepresentations about how App Annie’s alternative data was derived,” the SEC said.

App Annie is one of the largest sellers of mobile app performance data, offering details that are useful to developers, publishers, advertisers, and marketers — like how many times an app is downloaded, how often it’s used, the revenue it generates, and other competitive analysis and insights. This is what trading firms call “alternative data,” because it’s not detailed in their financial statements or other traditional data sources, the SEC explains. App Annie told app makers it would not disclose their data to third parties directly, but would rather use the data in an aggregated and anonymized way to provide app insights. Specifically, companies were told the data would be used to build a statistical model to generate estimates of app performance.

However, the SEC says from late 2014 through mid-2018, App Annie used non-aggregated and non-anonymized data to alter its model-generated estimates in order to make them more valuable to sell to trading firms. It also says that the company and Schmitt then misrepresented to its customers how it was able to generate the data, saying it did so with the appropriate consent from customers, and that it had effective internal controls to prevent the misuse of confidential data, ensuring it was in compliance with federal securities laws. Trading firms were making investment decisions based on this data and App Annie had even shared ideas as to how they could use the estimates to trading ahead of earnings announcements.

In the full complaint, the SEC further explains Schmitt had agreed to an internal policy where certain public company “Connect Data” — “Connect” being App Annies’ analytics product — would be excluded from its statistical model in late 2014. But he didn’t actually direct anyone at App Annie to document this policy until April 2017. And then when it was documented, it only said to exclude app revenue data from public companies whose app revenue exceeded 5% of the company’s total revenue. It never said to exclude app download or usage data.

The SEC says the documented policy was never properly enforced. It wasn’t until after App Annie learned of the SEC investigation in June 2018 that it amended the policy to exclude public company Connect Data from its estimate generation process, and began to fully implement the policy.

The investigation also discovered that App Annie engineers in Beijing, China were directed by Schmitt to manually alter estimates that would be of most interest to the company’s highest-paying customers. It did so by looking at the confidential Connect Data, which is one of the ways its estimates were able to be more accurate than rivals.

“The federal securities laws prohibit deceptive conduct and material misrepresentations in connection with the purchase or sale of securities,” said Gurbir S. Grewal, Director of the SEC’s Enforcement Division, in a statement. “Here, App Annie and Schmitt lied to companies about how their confidential data was being used and then not only sold the manipulated estimates to their trading firm customers, but also encouraged them to trade on those estimates—often touting how closely they correlated with the companies’ true performance and stock prices,” Grewal added.

The SEC says App Annie and Schmitt violated the anti-fraud provisions of Section 10(b) of the Exchange Act and Rule 10b-5. App Annie, without either admitting or denying the findings, consented to a cease-and-desist order and is paying a penalty. App Annie agreed to pay a penalty of $10 million. Meanwhile, Schmitt is ordered to pay a penalty of $300,000 and is prohibited from serving as an officer or director of a public company for three years.

Reached for comment, App Annie’s current CEO provided a statement:

“Since I have taken over as CEO, we have established a new standard of trust and transparency for the newly created alternative data market. App Annie is uniquely positioned to be the first to deliver on a unified data AI vision,” said Theodore Krantz, CEO at App Annie. “Many businesses may be unknowingly leveraging data reliant on confidential public company information without explicit consent which we believe puts companies using digital/mobile market data at significant risk. It is our opinion that the entire alternative data space needs to be regulated.”

In a newsroom post, the company also pointed out that the SEC investigation does not relate to its “current products,” nor did it relate to “our current relationships with customers.” And it says in the three years since the violating practices, it has appointed a new CEO and executive team, changed how it built its data estimates, and established a company-wide “culture of compliance,” which included the appointment of a Head of Global Compliance. It also documented its procedures for ensuring confidential data is excluded from its process of generating market estimates.

App Annie’s mobile market data solution was one of the first to serve the growing app ecosystem when it launched in 2010. Today, its firm counts more than 1,100 enterprise clients and over a million registered users, according to its corporate website.

The details of the complaint and settlement are below.

This story is breaking and may be updated. 

 

#app-annie, #app-store, #apps, #beijing, #ceo, #china, #co-founder, #computing, #director, #mobile-app, #officer, #software, #u-s-securities-and-exchange-commission

Driven by live streams, consumer spending in social apps to hit $17.2B in 2025

The live streaming boom is driving a significant uptick in the creator economy, as a new forecast estimates consumers will spend $6.78 billion in social apps in 2021. That figure will grow to $17.2 billion annually by 2025, according to data from mobile data firm App Annie, which notes the upward trend represents a five-year compound annual growth rate (CAGR) of 29%. By that point, the lifetime total spend in social apps will reach $78 billion, the firm reports.

Image Credits: App Annie

Initially, much of the livestream economy was based on one-off purchases like sticker packs, but today, consumers are gifting content creators directly during their live streams. Some of these donations can be incredibly high, at times. Twitch streamer ExoticChaotic was gifted $75,000 during a live session on Fortnite, which was one of the largest ever donations on the game streaming social network. Meanwhile, App Annie notes another platform, Bigo Live, is enabling broadcasters to earn up to $24,000 per month through their live streams.

Apps that offer live streaming as a prominent feature are also those that are driving the majority of today’s social app spending, the report says. In the first half of this year, $3 out every $4 spend in the top 25 social apps came from apps that offered live streams, for example.

Image Credits: App Annie

During the first half of 2021, the U.S. become the top market for consumer spending inside social apps with 1.7x the spend of the next largest market, Japan, and representing 30% of the market by spend. China, Saudi Arabia, and South Korea followed to round out the top 5.

Image Credits: App Annie

While both creators and the platforms are financially benefitting from the live streaming economy, the platforms are benefitting in other ways beyond their commissions on in-app purchases. Live streams are helping to drive demand for these social apps and they help to boost other key engagement metrics, like time spent in app.

One top app that’s significantly gaining here is TikTok.

Last year, TikTok surpassed YouTube in the U.S. and the U.K. in terms of the average monthly time spent per user. It often continues to lead in the former market, and more decisively leads in the latter.

Image Credits: App Annie

Image Credits: App Annie

In other markets, like South Korea and Japan, TikTok is making strides, but YouTube still leads by a wide margin. (In South Korea, YouTube leads by 2.5x, in fact.)

Image Credits: App Annie

Beyond just TikTok, consumers spent 740 billion hours in social apps in the first half of the year, which is equal to 44% of the time spent on mobile globally. Time spent in these apps has continued to trend upwards over the years, with growth that’s up 30% in the first half of 2021 compared to the same period in 2018.

Today, the apps that enable live streaming are outpacing those that focus on chat, photo or video. This is why companies like Instagram are now announcing dramatic shifts in focus, like how they’re “no longer a photo sharing app.” They know they need to more fully shift to video or they will be left behind.

The total time spent in the top five social apps that have an emphasis on live streaming are now set to surpass half a trillion hours on Android phones alone this year, not including China. That’s a three-year CAGR of 25% versus just 15% for apps in the Chat and Photo & Video categories, App Annie noted.

Image Credits: App Annie

Thanks to growth in India, the Asia-Pacific region now accounts for 60% of the time spent in social apps. As India’s growth in this area increased over the past 3.5 years, it shrunk the gap between itself and China from 115% in 2018 to just 7% in the first half of this year.

Social app downloads are also continuing to grow, due to the growth in live streaming.

To date, consumers have downloaded social apps 74 billion times and that demand remains strong, with 4.7 billion downloads in the first half of 2021 alone — up 50% year-over-year. In the first half of the year, Asia was the largest region region for social app downloads, accounting for 60% of the market.

This is largely due to India, the top market by a factor of 5x, which surpassed the U.S. back in 2018. India is followed by the U.S., Indonesia, Brazil and China, in terms of downloads.

Image Credits: App Annie

The shift towards live streaming and video has also impacted what sort of apps consumers are interested in downloading, not just the number of downloads.

A chart that show the top global apps from 2012 to the present highlights Facebook’s slipping grip. While its apps (Facebook, Messenger, Instagram and Facebook) have dominated the top spots over the years in various positions, TikTok popped into the number one position last year, and continues to maintain that ranking in 2021.

Further down the chart, other apps that aid in video editing have also overtaken others that had been more focused on photos or chat.

Image Credits: App Annie

Video apps like YouTube (#1), TikTok (#2) Tencent Video (#4), Bigo Live (#5), Twitch (#6), and others also now rank at the top of the global charts by consumer spending in the first half of 2021.

But YouTube (#1) still dominates in time spent compared with TikTok (#5), and others from Facebook — the company holds the next three spots for Facebook, WhatsApp and Instagram, respectively.

This could explain why TikTok is now exploring the idea of allowing users to upload even longer videos, by increasing the limit from 3 minutes to 5, for instance.

In addition, because of live streaming’s ability to drive growth in terms of time spent, it’s also likely the reason why TikTok has been heavily investing in new features for its TikTok LIVE platform, including things like events, support for co-hosts, Q&As and more, and why it made the “LIVE” button a more prominent feature in its app and user experience.

App Annie’s report also digs into the impact live streaming has had on specific platforms, like Twitch and Bigo Live, the former which doubled its monthly active user base from the pre-pandemic era, and the latter which saw $314.2 million in consumer spend during H1 2021.

“The ability of social media users to communicate with each other using live video – or watch others’ live broadcasts – has not only maintained the growth of a social media app market, but contributed to its exponential growth in engagement metrics like time spent, that might otherwise have saturated some time ago,” wrote App Annie’s Head of Insights, Lexi Sydow, when announcing the new report.

The full report is available here.

#android, #app-annie, #apps, #asia, #asia-pacific, #bigo-live, #brazil, #china, #computing, #facebook, #head, #india, #indonesia, #instagram, #japan, #media, #messenger, #mobile, #mobile-applications, #mobile-software, #operating-systems, #saudi-arabia, #social, #social-media, #software, #south-korea, #tiktok, #twitch, #united-kingdom, #united-states, #video, #video-hosting, #youtube

Facebook enters the fantasy gaming market

Facebook is getting into fantasy sports and other types of fantasy games. The company this morning announced the launch of Facebook Fantasy Games in the U.S. and Canada on the Facebook app for iOS and Android. Some games are described as “simpler” versions of the traditional fantasy sports games already on the market, while others allow users to make predictions associated with popular TV series, like “Survivor” or “The Bachelorette.”

The first game to launch is Pick & Play Sports, in partnership with Whistle Sports, where fans get points for correctly predicting the winner of a big game, the points scored by a top player, or other events that unfold during the match. Players can also earn bonus points for building a streak of correct predictions over several days. This game is arriving today.

Image Credits: Facebook

In the months ahead, it will be followed by other games in sports, TV, and pop culture, including Fantasy Survivor, where players choose a set of Castaways from the popular CBS TV show to join their fantasy team and Fantasy “The Bachelorette,” where fans will pick a group of men from the suitors vying for the Bachelorette’s heart and get points based on their actions and events that take place during the show. Other upcoming sports-focused games include MLB Home Run Picks, where players pick the team that they think will hit the most home runs, and LaLiga Winning Streak, where fans predict the team that will win that day.

In addition to top players being featured on leaderboards, games have a social component for those who want to play with friends.

Image Credits: Facebook

Players can create their own fantasy league with friends to compete with one another or against other fans, either publicly or privately. League members can compare scores with each other and will have a place where they can share picks, reactions and comments. This league area resembles a private group on Facebook, as it offers its own compose box for posting only to members and its own dedicated feed. However, the page is designed to support groups with specific buttons to “play” or view the “leaderboard,” among others.

The addition of fantasy games could help Facebook increase the time users spent on its app at a time when the company is facing significant competition in social, namely from TikTok. According to App Annie, the average monthly time spent per user in TikTok grew faster than other top social apps in 2020, including by 70% in the U.S., surpassing Facebook.

Facebook had dabbled in the idea of becoming a second screen companion for live events in the past, but in a different way than fantasy sports and games. Instead, its R&D division tested Venue, which worked as a way for fans to comment on live events which were hosted in the app by well-known personalities.

The new league games will be available from the bookmark menu on the mobile app and in News Feed through notifications.

#android, #app-annie, #apps, #canada, #computing, #facebook, #gaming, #mlb, #mobile, #player, #private, #software, #survivor, #tiktok, #united-states, #world-wide-web

A ‘more honest’ stock market

Hello friends, and welcome back to Week in Review!

Last week, I talked about Clubhouse’s slowing user growth. Well, this week news broke that they had been in talks with Twitter for a $4 billion acquisition, so it looks like they’re still pretty desirable. This week, I’m talking about a story I published a couple days ago that highlights pretty much everything that’s wild about the alternative asset world right now.

If you’re reading this on the TechCrunch site, you can get this in your inbox from the newsletter page, and follow my tweets @lucasmtny.


The big thing

If you successfully avoided all mentions of NFTs until now, I congratulate you, because it certainly does seem like the broader NFT market is seeing some major pullback after a very frothy February and March. You’ll still be seeing plenty of late-to-the-game C-list celebrities debuting NFT art in the coming weeks, but a more sober pullback in prices will probably give some of the NFT platforms that are serious about longevity a better chance to focus on the future and find out how they truly matter.

I spent the last couple weeks, chatting with a bunch of people in one particular community — one of the oldest active NFT communities on the web called CryptoPunks. It’s a platform with 10,000 unique 24×24 pixel portraits and they trade at truly wild prices.

This picture sold for a $1.05 million.

I talked to a dozen or so people (including the guy who sold that one ^^) that had spent between tens of thousands and millions of dollars on these pixelated portraits, my goal being to tap into the psyche of what the hell is happening here. The takeaway is that these folks don’t see these assets as any more non-sensical than what’s going on in more traditional “old world” markets like public stock exchanges.

A telling quote from my reporting:

“Obviously this is a very speculative market… but it’s almost more honest than the stock market,” user Max Orgeldinger tells TechCrunch. “Kudos to Elon Musk — and I’m a big Tesla fan — but there are no fundamentals that support that stock price. It’s the same when you look at GameStop. With the whole NFT community, it’s almost more honest because nobody’s getting tricked into thinking there’s some very complicated math that no one can figure out. This is just people making up prices and if you want to pay it, that’s the price and if you don’t want to pay it, that’s not the price.”

Shortly after I published my piece, Christie’s announced that they were auctioning off nine of the CryptoPunks in an auction likely to fetch at least $10 million at current prices. The market surged in the aftermath and many millions worth of volume quickly moved through the marketplace minting more NFT millionaires.

Is this all just absolutely nuts? Sure.

Is it also a poignant picture of where alternative asset investing is at in 2021? You bet.

Read the full thing.


an illustration of a cardboard ballot box with an Amazon smile on the front

Other things

Here are the TechCrunch news stories that especially caught my eye this week:

Amazon workers vote down union organization attempt
Amazon is breathing a sigh of relief after workers at their Bessemer, Alabama warehouse opted out of joining a union, lending a crushing defeat to labor activists who hoped that the high-profile moment would lead more Amazon workers to organize. The vote has been challenged, but the margin of victory seems fairly decisive.

Supreme court sides with Google in Oracle case
If any singular event impacted the web the most this week, it was the Supreme Court siding with Google in a very controversial lawsuit by Oracle that could’ve fundamentally shifted the future of software development.

Coinbase is making waves
The Coinbase direct listing is just around the corner and they’re showing off some of their financials. Turns out crypto has been kind of hot lately and they’re raking in the dough, with revenue of $1.8 billion this past quarter.

Apple share more about the future of user tracking
Apple is about to upend the ad-tracking market and they published some more details on what exactly their App Tracking Transparency feature is going to look like. Hint: more user control.

Consumers are spending lots of time in apps
A new report from mobile analytics firm App Annie suggests that we’re dumping more of our time into smartphone apps, with the average users spending 4.2 hours a day doing so, a 30 percent increase over two years.

Sonos perfects the bluetooth speaker
I’m a bit of an audio lover, which made my colleague Darrell’s review of the new Sonos Roam bluetooth speaker a must-read for me. He’s pretty psyched about it, even though it comes in at the higher-end of pricing for these devices, still I’m looking forward to hearing one with my own ears.


 

Image Credits: Nigel Sussman

Extra things

Some of my favorite reads from our Extra Crunch subscription service this week:
The StockX EC-1
“StockX is a unique company at the nexus of two radical transitions that isn’t just redefining markets, but our culture as well. E-commerce upended markets, diminishing the physical experience by intermediating and aggregating buyers and sellers through digital platforms. At the same time, the internet created rapid new communication channels, allowing euphoria and desire to ricochet across society in a matter of seconds. In a world of plenty, some things are rare, and the hype around that rarity has never been greater. Together, these two trends demanded a stock market of hype, an opportunity that StockX has aggressively pursued.”

Building the right team for a billion-dollar startup
“I would really encourage you to take some time to think about what kind of company you want to make first before you go out and start interviewing people. So that really is going to be about understanding and defining your culture. And then the second thing I’d be thinking about when you’re scaling from, you know, five people up to, you know, 50 and beyond is that managers really are the key to your success as a company. It’s hard to overstate how important managers, great managers, are to the success of your company.

So you want to raise a Series A
“More companies will raise seed rounds than Series A rounds, simply due to the fact that many startups fail, and venture only makes sense for a small fraction of businesses out there. Every check is a new cycle of convincing and proving that you, as a startup, will have venture-scale returns. Moore explained that startups looking to move to their next round need to explain to investors why now is their moment.”

Until next week,
Lucas M.

And again, if you’re reading this on the TechCrunch site, you can get this in your inbox from the newsletter page, and follow my tweets @lucasmtny.

#alabama, #amazon, #app-annie, #apple, #bessemer, #blockchain, #bluetooth, #bluetooth-speaker, #christies, #coinbase, #cryptocurrency, #e-commerce, #extra-crunch, #gamestop, #google, #operating-systems, #oracle, #real-time-web, #smartphone, #software, #software-development, #sonos, #stockx, #supreme-court, #tc, #techcrunch, #text-messaging, #twitter, #week-in-review

Consumers spent $32B on apps in Q1 2021, the biggest quarter on record

The pandemic’s remarkable impact on the app industry has not slowed down in 2021. In fact, consumer spending in apps has hit a new record in the first quarter of this year, a new report from App Annie indicates. The firm says consumers in Q1 2021 spent $32 billion on apps across both iOS and Google Play, up 40% year-over-year from Q1 2020. It’s the largest-ever quarter on record, App Annie also notes.

Last year saw both app downloads and consumer spend increase, as people rapidly adopted apps under coronavirus lockdowns — including apps for work, school, shopping, fitness, entertainment, gaming and more. App Annie previously reported a record 218 billion in global downloads and record consumer spend of $143 billion for the year.

Image Credits: App Annie

These trends have continued into 2021, it seems, with mobile consumers spending roughly $9 billion more in Q1 2021 compared with Q1 2020. Although iOS saw larger consumer spend than Android in the quarter — $21 billion vs. $11 billion, respectively — both stores grew by the same percentage, 40%.

But the types of apps driving spending were slightly different from store to store.

On Google Play, Games, Social and Entertainment apps saw the strongest quarter-over-quarter growth in terms of consumer spending, while Games, Photo & Video, and Entertainment apps accounted for the strongest growth on iOS.

By downloads, the categories were different between the stores, as well.

On Google Play, Social, Tools, and Fiance saw the biggest download growth in Q1, while Games, Finance and Social Networking drove download growth for iOS. Also on Google Play, other top categories included Weather (40%) and Dating (35%), while iOS saw Health and Fitness app downloads grow by a notable 25% — likely a perfect storm as New Year’s Resolutions combined with continued stay-at-measures that encouraged users to find new ways to stay fit without going to a gym.

Image Credits: App Annie

The top apps in the quarter remained fairly consistent, however. TikTok beat Facebook, in terms of downloads, and was followed by Instagram, Telegram, WhatsApp and Zoom. But the short-form video app only made it to No. 2 in terms of consumer spend, with YouTube snagging the top spot. Tinder, Disney+, Tencent Video, and others followed. (Netflix has dropped off this chart as it now directs new users to sign up directly, rather than through in-app purchases).

Image Credits: App Annie

Though Facebook’s apps have fallen behind TikTok by downloads, its apps — including Facebook, WhatsApp, Messenger and Instagram — still led the market in terms monthly active users (MAUs) in the quarter. TikTok, meanwhile, ranked No. 8 by this metric.

Up-and-comers in the quarter included privacy-focused messaging app Signal, which saw the strongest growth in the quarter by both downloads and MAUs — a calculation that App Annie calls “breakout apps.”  Telegram closely followed, as users bailed from mainstream social after the Capitol riot. Another “breakout” app was MX TakaTak, which is filling the hole in the market for short-form video that resulted from India’s ban  of TikTok.

Image Credits: App Annie

Gaming, meanwhile, drove a majority of the quarter’s spending, as usual, accounting for $22 billion of the spend — $13 billion on iOS (up 30% year-over-year) and $9 billion on Android (up 35%). Gamers downloaded about a billion titles per week, up 15% year-over-year from 2020.

Among Us! dropped to No. 2 in the quarter by downloads, replaced by Join Clash 3D, while DOP 2: Delete One Part jumped 308 places to reach No. 3.

Image Credits: App Annie

Roblox led by consumer spend, followed by Genshin Impact, Coin Master, Pokemon Go and others. And although Among Us! dropped on the charts by downloads, it remained No. 1 by monthly active users in the quarter, followed by PUBG Mobile, Candy Crush Saga, Roblox and others.

App Annie notes that the pandemic also accelerated the mobile gaming market, with game downloads outpacing overall downloads by 2.5x in 2020. It predicts that mobile gaming will reach  $120 billion in consumer spending this year, or 1.5x all other gaming formats combined.

#android, #app-annie, #apps, #computing, #disney, #facebook, #google-play, #india, #messenger, #mobile-applications, #netflix, #roblox, #tiktok, #whatsapp

Report: social audio app Clubhouse has topped 8 million global downloads

Social audio app Clubhouse has now topped 8 million global downloads, despite still being in a prelaunch, invite-only mode, according to new data released today by mobile data and analytics firm App Annie. Per its estimates, Clubhouse grew from over 3.5 million global downloads as of Feb. 1, 2021, to reach 8.1 million by Feb. 16, 2021. This sharp growth is attributed to several high-profile guest appearances, including those from Tesla and SpaceX founder Elon Musk and Facebook CEO Mark Zuckerberg, for example.

App Annie also estimates that 2.6 million-plus of the total global installs took place in the U.S. — a figure that highlights the app’s global appeal.

Image Credits: App Annie

Clubhouse, meanwhile, hasn’t officially shared its total number of downloads or registered users, but CEO Paul Davison revealed in January the app had grown to 2 million weekly active users — which means the app’s monthly active user figure and total registered user count would be much higher. Other estimates have put the app’s registered user base in between 6 million and 10 million (the latter citing unnamed sources.)

Reached for comment on App Annie’s report, Clubhouse said it doesn’t publish user numbers.

It’s worth noting that app install figures aren’t typically a valid proxy for registered users as many people often download an app but then never open it or sign up. But in Clubhouse’s case, the two figures could be more closely aligned as people who are installing the app are motivated to join. The app is not open to the public, so the users installing the app are likely either in possession of a Clubhouse invite or are aiming to get one from a friend or trusted contact who’s already joined.

Also in the new report, App Annie noted how Clubhouse phenomenon is having an impact on the larger app ecosystem. Local rivals to Clubhouse offering their own social audio experience have also gained downloads in recent days, including Dizhua, Tiya and Yalla, which have attracted users in China, the U.S., Egypt, Saudi Arabia and Turkey. 

Dizhua, for example, has 174,000 downloads; Tiya has 6 million; and Yalla has 34.5 million, the report says. Yalla, notably, has been live since 2016, but Clubhouse’s popularity is giving it a boost. 

Beyond this small handful, there’s been an explosion of social audio experiences, including those in  from startups like Sonar, Locker Room, Quilt, Yoni Circle, Roadtrip, Space, Capiche.fm, Yac, Cappuccino, and others. Twitter, meanwhile, is building its own Clubhouse rival with Spaces, which it said yesterday will expand to Android by March. Facebook, too, is reportedly planning a Clubhouse competitor.

The question on everyone’s minds now is how much of this growth is sustainable. Skeptics say Clubhouse lends itself to those who tend to dominate conversations by talking at length; that many of its conversations are just kind of boring; that the app favors the “hustle culture”-obsessed; and so on. Some also wonder to how well social audio apps will fare when the world reopens post-COVID and there’s more to do — including the return traditional networking events.

But these concerns don’t take into account that social audio has the potential to carve out space for itself by supplanting users’ other mobile spoken-word audio activities, like podcast listening or audiobooks. Of course, questions about Clubhouse’s future can’t really be answered now, as the pandemic continues, and with an app that’s not fully open to the public.

#app-annie, #apps, #audio, #clubhouse, #mobile-applications, #social, #social-audio, #social-media

With its new Pulse app, App Annie offers a more digestible view of its data

Mobile analytics and market data company App Annie launched a new app today that CEO Ted Krantz said is built not for the analyst who’s “immersed in the data,” but rather the executive who needs “a much more elevated, top-down view.”

The biggest new piece of the company’s Pulse app is something called the App Annie Performance Score, which Krantz compares to a FICO score for mobile apps. The idea is to take an app’s user acquisition, engagement, monetization and sentiment and boil them down into a single score that benchmarks how the app is performing relative to the competition.

Krantz said that eventually, the performance store could become more customizable for each customer, so that  “you can tailor it to the metrics that matter to you.” The app also highlights any shifts in key app metrics and identifies potential causes, and it includes a newsfeed showing what’s happening to the apps and markets that a user follows.

App Annie Pulse

Image Credits: App Annie

The goal, Krantz added, is to provide executives with a quick overview of the data they need without requiring them to dig through it or wait for a report — especially as “mobile is becoming such an imperative.” It’s the team’s “aspiration” to create an app that executives check every day, though he’s not necessarily expecting that to happen initially.

The Pulse app is based on App Annie’s market-level data, so Krantz said it shouldn’t be affected by Apple’s upcoming privacy changes. At the same time, he acknowledged that the company’s broader goals of bringing together first-party and third-party data are starting too look “a little tricky.”

App Annie Pulse is currently available on iOS, with the company planning to launch an Android version in the second quarter of this year. And while Pulse is only available to paying App Annie customers, Krantz said there are also plans for “revamping the free side of the equation and make that a little more meaty.”

#advertising-tech, #app-annie, #apps, #mobile, #startups, #tc

App stores saw record 218 billion downloads in 2020, consumer spend of $143 billion

Mobile adoption continued to grow in 2020, in part due to the market forces of the COVID-19 pandemic. According to App Annie’s annual “State of Mobile” industry report, mobile app downloads grew by 7% year-over-year to a record 218 billion in 2020. Meanwhile, consumer spending grew by 20% to also hit a new milestone of $143 billion, led by markets that included China, the United States, Japan, South Korea and the United Kingdom.

Consumers also spent 3.5 trillion minutes using apps on Android devices alone, the report found.

In another shift, app usage in the U.S. surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours on their mobile device.

The increase in time spent is a trend that’s not unique to the U.S., but can be seen across several other countries, including both developing mobile markets like Indonesia, Brazil and India, as well as places like China, Japan, South Korea, the U.K., Germany, France and others.

The trend isn’t isolated to any one demographic, either, but is seen across age groups. In the U.S., for example, Gen Z, millennials and Gen X/Baby Boomers spent 16%, 18% and 30% more time in their most-used apps year-over-year, respectively. However, what those favorite apps looked like was very different.

For Gen Z in the U.S., top apps on Android phones included Snapchat, Twitch, TikTok, Roblox and Spotify.

Millennials favored Discord, LinkedIn, PayPal, Pandora and Amazon Music.

And Gen X/Baby Boomers used Ring, Nextdoor, The Weather Channel, Kindle and ColorNote Notepad Notes.

The pandemic didn’t necessarily change how consumers were using apps in 2020, but rather accelerated mobile adoption by two to three years’ time, the report found.

Investors were also eager to fuel mobile businesses as a result, pouring $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year. According to Crunchbase data, 26% of total global funding dollars in 2020 went to businesses that included a mobile solution.

From 2016 to 2020, global funding to mobile technology companies more than doubled compared with the previous five years, and was led by financial services, transportation, commerce and shopping.

Mobile gaming adoption also continued to grow in 2020. Casual games dominated the market in terms of downloads (78%), but Core games accounted for 66% of games’ consumer spend and 55% of the time spent.

With many stuck inside due to COVID-19 lockdowns and quarantines, mobile games that offered social interaction boomed. Among Us, for example, became a breakout game in several markets in 2020, including the U.S.

Other app categories saw sizable increases over the past year, as well.

Time spent in Finance apps in 2020 was up 45% worldwide, outside of China, and participation in the stock market grew 55% on mobile, thanks to apps like Robinhood in the U.S. and others worldwide, that democratized investing and trading.

TikTok had a big year, too.

The app saw incredible 325% year-over-year growth, despite a ban in India, and ranked in the top five apps by time spent. The average monthly time spent per user also grew faster than nearly every other app analyzed, including 65% in the U.S. and 80% in the U.K., surpassing Facebook. TikTok is now on track to hit 1.2 billion active users in 2021, App Annie forecasts.

Other video services boomed in 2020, thanks to a combination of new market entrants and a lot of time spent at home. Consumers spent 40% more hours streaming on mobile devices, with time spent in streaming apps peaking in the second quarter in the west as the pandemic forced people inside.

YouTube benefitted from this trend, as it became the No. 1 streaming app by time spent among all markets analyzed except China. The time spent in YouTube is up to 6x that of the next closet app at 38 hours per month.

Of course, another big story for 2020 was the rise of e-commerce amid the pandemic. This made the past year the biggest ever for mobile shopping, with an over 30% increase in time spent in Shopping apps, as measured on Android phones outside of China.

Mobile commerce, however, looked less traditional in 2020.

Social shopping was a big trend, with global downloads of Pinterest and Instagram growing 50% and 20% year-over-year, respectively.

Livestreaming shopping grew, too, led by China. Downloads of live shopping TaoBao Live in China, Grip in South Korea and NTWRK in the U.S. grew 100%, 245% and 85%, respectively. NTWRK doubled in size last year, and now others are entering the space as well — including TikTok, to some extent.

The pandemic also prompted increased usage of mobile ordering apps. In the U.S., Argentina, the U.K., Indonesia and Russia, the app grew by 60%, 65%, 70%, 80% and 105%, respectively, in Q4.

Business apps, like Zoom and Google Meet among others, grew 275% in Q4, for example, as remote work and sometimes school, continued.

The analysis additionally included lists of the top apps by downloads, spending and monthly active users (MAUs).

Although TikTok had been topping year-end charts, Facebook continued to beat it in terms of MAUs. Facebook-owned apps controlled the top charts by MAUs, with Facebook at No. 1 followed by WhatsApp, Messenger and Instagram.

TikTok, however, had more downloads than Facebook and ranked No. 2 by consumer spending, behind Tinder.

The full report is available only as an online interactive experience this year, not a download. The report largely uses data from both the iOS App Store and Google Play, except where otherwise noted.

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U.S. shopping app downloads on Black Friday reached a record 2.8M installs

Many U.S. consumers spent this year’s Black Friday sales event shopping from home on mobile devices. That led to first-time installs of mobile shopping apps in the U.S. to break a new record for single-day installs on Black Friday 2020, according to a report from Sensor Tower. The firm estimates that U.S. consumers downloaded approximately 2.8 million shopping apps on November 27th — a figure that’s up by nearly 8% over last year.

However, this number doesn’t necessarily represent faster growth than in 2019, which also saw about an 8% year-over-year increase in Black Friday shopping app installs, the report noted. This could be because mobile shopping and the related app installs are now taking place throughout the month of November, though, as retailers adjusted to the pandemic and other online shopping trends by hosting earlier sales or even month-long sales events.

Image Credits: Sensor Tower

The data seems to indicate this is true. Between Nov. 1 and Nov. 29, U.S. consumers downloaded approximately 59.2 million shopping apps from across the App Store and Google Play — an increase of roughly 15% from the 51.7 million they downloaded in Nov. 2019. That’s a much higher figure than the 2% year-over-year growth seen during this same period in 2019.

Another shift taking place in mobile shopping is the growing adoption of app from brick-and-mortar retailers. During the first three quarters of 2020, apps from brick-and-mortar retailers grew installs 27%. This trend continued on Black Friday, when 5 out of the top 10 mobile shopping apps were those from brick-and-mortar retailers, led by Walmart.

Image Credits: Sensor Tower

Walmart saw the highest adoption this year, with around 131,000 Black Friday installs, followed by Amazon at 106,000, then Shopify’s Shop at 81,000. Combined, the top 10 apps saw 763,000 total new installs, or 27% of the first-time downloads in the Shopping category.

Because the firms are only looking at new app installs, they aren’t giving a full picture of the U.S. mobile shopping market, as many consumers already have these apps installed on their devices. And many more simply shop online via a desktop or laptop computer.

To give these figures some context, Shopify reported on Saturday it had seen record Black Friday sales of $2.4 billion, with 68% on mobile. And today, Amazon announced its small business sales alone topped $4.8 billion from Black Friday to Cyber Monday, a 60% year-over-year increase, but it didn’t break out the percentage that came from mobile.

Sensor Tower and rival app store analytics firm App Annie largely agreed on the top 5 shopping apps downloaded this Black Friday. They both saw Walmart again beating Amazon to become the most-downloaded U.S. shopping app on Black Friday — as it did in 2019. The two firms reported that Amazon remained No. 2 by downloads, followed by Shopify’s Shop app, then Target. However, Sensor Tower put Best Buy in 5th place, followed by Nike, while App Annie saw those positions swapped.

Image Credits: App Annie

The rest of Sensor Tower’s top 10 included SHEIN, Sam’s Club, Klarna, then Offer Up, while App Annie’s list was rounded out by SHEIN, Sam’s Club, Wish, then Offer Up.

The pandemic’s impact may not have been obvious given the growth in online shopping this year, but the recession it triggered has played a role in how U.S. consumers are paying for their purchases. “Buy Now, Pay Later” apps like Klarna were up this year, even breaking into the top 10 per Sensor Tower’s data. The firm also noted that many new shopping apps launched this year focused on discounts and deals and retailers ran longer sales this year, as well.

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Top mobile apps see declines in consumer engagement amid increased competition

Mobile consumers are downloading and using more apps than ever before. According to recent data from App Annie, mobile users now have 93 apps on their phone as of the end of 2019, up from 85 apps at the end of 2015. They also now use around 41 apps per month, up from 35 in 2015. Related to this increase, users are now also spending more hours per day using apps. Worldwide, daily time spent in apps has grown to 3.1 hours per day in 2019, up from 2.1 hours per day in 2015, for instance.

But with that growth has also come increased diversity among the top apps, the report found. That means top apps now make up a smaller proportion of consumers’ total time spent in apps, compared with five years ago.

Image Credits: App Annie

It’s worth noting that this report was commissioned by Facebook, App Annie says, with a goal of offering a more detailed look at the evolving app ecosystem over the past five years. The report aims to determine how growth is playing out in terms of popular app categories, among the top publishers, and how quickly newly successful apps are achieving sizable growth.

Facebook, in the past, had generated this sort of market research data first-hand by way of its Onavo VPN application — now shuttered over privacy concerns — and other similar efforts.

Turning to App Annie’s data team is just a new way for the company to get at the same sort of data.

App Annie’s market analysis, in part, is similarly derived by way of third-party apps. The company acquired Distimo in 2014, and as of 2016 has run the VPN app Phone Guardian under the Distimo brand. It also acquired Mobidia in 2015 and has operated My Data Manager (now on the App Store under Distimo). Both apps disclose their relationship with App Annie and explain that the apps are used for market research purposes, with specific examples of the type of data collected.

The new report’s findings may not be all good news for Facebook and other top app publishers. As the app economy evolved, users now have more places to spend time on mobile.

Image Credits: App Annie

Over the past five years, worldwide downloads continued to grow to reach a record of 120 billion in 2019, with several key countries now driving growth including India (10% year-over-year growth in 2019), Brazil (9%), Indonesia (8%) and Russia (7%).

Downloads in mature economies also hit record levels in 2019, including the U.S. (12.3B), Japan (2.5B), U.K. (2.1B), South Korea (2B), Germany (1.9B), and France (1.9B).

As users grew their time in app to 3.1 hours per day, they also began to use more of a variety of apps. According to the report, 35 of the top 100 apps were new entrants in 2019, up from 27 in 2016 across categories that included social, photography, video, communications, entertainment, and more.

Image Credits: App Annie

This is likely worrisome data for top app publishers, like Facebook, which has for years maintained a suite of top apps including not only its flagship app, but also Instagram, Messenger, and WhatsApp. As the competitive pressure increases, these top apps make up a smaller proportion of the time spent on mobile devices as users have grown more comfortable trying out newcomers — particularly across gaming, entertainment, and video categories.

The top 30 non-game apps accounted for 69.4% of U.S. users’ total time spent in 2016 among non-games. That dropped to 65.5% in 2019, a nearly 4% decline. Among games, the share fell from 49% to 39%, a 10% drop. (This data was sourced from Google Play in the U.S.)

Image Credits: App Annie

Not only are consumers more open to trying new apps, the report found that new apps can also quickly achieve app store success. In the U.S., for example, over 60% of apps are able to reach their category’s Top 30 in their first 6 months.

This is aided by larger initial marketing pushes as well as improvements in terms of consumer’s devices themselves — like more storage and processing power, which encourages more downloads.

Image Credits: App Annie

There are also more apps than ever before capable of achieving the once milestone metric of 1 million monthly active users (MAUs). In 2019, over 4,600 apps saw 1 million MAUs, including those outside of social and communications like Netflix, Roku, Disney, CBS, Amazon, Alibaba, Walmart, Target, PayPal, Venmo, Chase, Capital One, Uber, DoorDash, McDonald’s, and Starbucks.

Image Credits:

Apps are also achieving the 1 million downloads milestones more quickly, in data analyzed from 2015 to 2018. In the video, finance, communications, social, photo, and entertainment categories, 67% of apps achieved the 1 million downloads milestone within their first 12 months, App Annie says.

Image Credits: App Annie

Because of the increases, there’s now a lot of overlap in between top apps. Today, mobile consumers will often choose and use multiple apps within and across categories to address similar needs, including on social, the report found.

For example, 89% of Snapchat’s users also used YouTube in April 2020 in the U.S., and 75% also used Instagram.

Image Credits: App Annie

TikTok saw the greatest year-over-year increase in cross-app usage of Snapchat, rising from 17% in April 2019 to April 2020 — an indication of how much it has captured the youth demographic.

Meanwhile, video apps and gaming are taking up more of users’ time spent in apps. This broad category of “play”-focused apps accounted for 22% of the growth in time spent in apps in 2019.

Image Credits: App Annie

Plus, top gaming apps are also implementing social features, including Top 50 games like Fortnite, Clash of Clans, Call of Duty: Mobile, Township, Star Wars: Galaxy of Heroes, New Yahtzee With Buddies, Golf Clash, and Slotomania, for example.

More than two-thirds of the Top 50 games have added at least one social feature, whether that’s inviting friend to play, social assists for progressing, guilds or clans, or in-app chat. This, in turn, has led to players spending more time in games as they can connect with friends there.

Image Credits: App Annie

Fortnite, as one key example of this trend, rolled out Party Hub based on its acquired Houseparty technology, in September 2019. In the three months after the rollout, time spent in Fortnite grew 130%.

Image Credits: App Annie

Outside of games, TikTok has risen by blending elements of top categories like social, video and entertainment. After merging with Musical.ly, it has rapidly rolled out more video editing features and increased ad spend aggressively to grow its user base and drive engagement. By December 2019, U.S. users were spending 16 hours, 20 minutes in the app per month, on average, up from 5 hours, 4 minutes in August 2018.

Image Credits: App Annie (note above chart only showcases Google Play data)

The full report also delves into country-by-country breakdowns but, overall, found that most countries saw record downloads in 2019 and similar trends in terms of app usage frequency increases and time spent.

One notable point of comparison is that U.S. users have more apps installed than in other markets (97 vs. 93), but tend to use fewer apps compared with worldwide trends (36 vs. 41). They also spend slightly fewer hours per day in apps, on average, than the worldwide average at 2.7 hours versus 3.1 hours.

“This report shows that the app industry is more competitive today than ever. New companies are succeeding with innovative apps that meet needs people might not even know they have,” said Ime Archibong, Head of Facebook’s New Product Experimentation team, an internal team at Facebook looking to find new models for social apps. “All of this choice and competition fuels innovation, and that’s the heart of our work at Facebook,” he added.

App Annie’s report is available upon request here.

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