Published on May 31, 2013
Google Play is CatchingUp with iOS App Storein Terms of AppRevenue
Few days ago we wrote a blog post on App Store Revenuesfew weeks ago(which can be read here). Apple App Storewas 2.6x more profitable for developers when compared toGoogle Play Store in terms of revenue. While Apple is stillprofitable, Google Play is catching up quickly.According to a new report from App Analytics firm, Distomo,Google Play’s piece of the pie has increased significantlyover the past six months. While only 19% of the combinedrevenue came from Google Play in November 2012, thisshare went up by eight percentage points to 27% in April2013. The Japanese and South Korean markets were themain contributors for the growth in Google Play’s revenueshare.
Distomo study noticed a shift in revenue from the Apple App Store toGoogle Play in general and for some applications and publishers inparticular.Mobage is an example of adeveloper quoted who generatedmore or at least an equal amountof revenue in Google Playcompared to the Apple App Storein most countries. This appliednot only to Asian countries,where revenue in Google Play issky high, but it applies also to theU.S., which is still the largestmarket in terms of combinedrevenue in the Apple App Storeand Google Play.
The revenue distribution in the U.S. of all Mobage applicationstogether, and two of its top applications in particular, are shown inthe graph below. In April 2013, Mobage generated more than $5.1Min Google Play in April 2013. The Apple App Store total revenueduring April 2013 in the U.S. was $5.6M, which was slightly higher.This equates to a revenue share of 48% for all Mobage apps inGoogle Play in April 2013, while 52% of revenue came from theApple App Store (iPhone and iPad).Looking at the application level, Rage of Bahamut and BloodBrothers (RPG) were popular Mobage applications in Google Playand the Apple App Store and had similar revenue levels. Rage ofBahamut gained a total of $2.3M in both stores combined: 56% inthe Apple App Store and 44% in Google Play. Blood Brothersgenerated more revenue in Google Play than in the Apple App Storein the United States.
What about Global Trends?The U.S. is not the only market where Google Play is winning ground in terms of total revenue. Many popular applica>ons appeared to have internal Apple App Store vs. Google Play baAles in terms of most revenue per country.Final Fantasy III by Square Enix and World at Arms by GameloH are two illustra>ve examples of this trend. The two world maps on following slides show which applica>on store is winning in which country in terms of total revenues in April 2013 for each applica>on.This ﬁrst world map presents the revenue of World at Arms. The pink colored countries represent countries where this applica>on collected more revenue in the Apple App Store during April 2013, and blue countries represent those countries in which more revenue was generated from Google Play. The countries in which GameloH generated more money with World at Arms in Google Play compared to the Apple App Store were: United Kingdom, Germany, Spain, Finland, India, Thailand, Korea, Vietnam, Israel, Ireland, and Hong Kong. A remarkable ﬁnding is that World at Arms did not only generate more money in Google Play than in the Apple App Store in some Asian countries, but actually this gap was in favor of Google Play in some large European countries as well.
World At Arms gained more revenue com-‐ paring Google Play to the Apple App Store in major countries like Germany and UK.
73% of Final Fantasy III’s global total revenue come from Google Play in April 2013.
ComparaMve Study for an AppA more interes>ng case study of how a popular developer is aAacking both app stores successfully comes from WhatsApp, which uses diﬀerent business models to mone>ze its mobile messenger. On Android, users get a one-‐year free subscrip>on, but then have to pay for the app aHerwards, while on Apple’s App Store, the app costs $0.99. Download volumes on iOS are high, but then the app oHen goes on sale in order to kick those volumes into high gear.The long game – hoping to mone>ze Android users aHer geng them fully addicted – is star>ng to pay oﬀ in a handful of countries for WhatsApp, including Germany, Italy and Spain. In Germany, Google Play earned the company nearly $290K versus $207K in Apple’s store in April. Compare that to the U.S. version with $355K in Apple’s App Store versus just over $41K in Google Play.This applica>on should con>nue to gain more revenue in the Apple App Store than in Google Play. The result of this though is shown in the world map below by country. Again, pink represents the countries where WhatsApp made more money in the Apple App Store than it did in Google Play in April 2013. Blue represents the opposite.
WhatsApp Messenger generated more revenue in Google Play than in the Apple App Store in Germany, Italy and Spain.
Is Google the Overall Winner?Short Answer: NO. Although the examples clearly suggest that the balance is shiHing between the Apple App Store and Google Play in terms of total revenue, this does not mean that this applies to all applica>ons and publishers -‐ especially not in the United States. In April 2013, the United States was s>ll the largest market in terms of total revenue in Google Play and the Apple App Store combined. The daily revenue in April 2013 generated by all applica>ons in the top 200 grossing in Google Play was $1.1M, while the daily revenue of the top 200 in the Apple App Store (both iPhone and iPad) was 4.6 >mes higher at $5.1M. The vast majority of applica>ons in those two top lists contained free applica>ons with In-‐App purchases and this business model automa>cally generates the most revenue in both stores. The higher revenue share in the Apple App Store compared to Google Play was also characteris>c for long tail applica>ons and did not apply solely to popular applica>ons.The Simpsons: Tapped Out by Electronic Arts are illustra>ve applica>ons that were popular on both plaforms in the U.S. and generated much more revenue on iOS compared to Google Play in April 2013.
The graph below shows the revenue share of The Simpsons: Tapped Out for each store. This applica>on generated around $4.8M in both stores in April 2013 in the United States, and the revenue was generated only from In-‐App purchases. The vast majority of this revenue was collected in the Apple App Store over April 2013: 79%. Only 21% of the total revenue from The Simpsons: Tapped Out came from Google Play, which was s>ll more than $1M.
You can also reach us on: Facebook -‐ www.facebook.com/TechAhead TwiAer -‐ www.twiAer.com/TechAhead LinkedIn -‐ www.linkedin.com/company/techaheadAt TechAhead, we have helped many clients incorporate mobile payments, be it through SMS, Web/WAP based, NFC etc. Mobile payments and mCommerce are on a boom, and every business should make best out of this opportunity. If you are a business, we can help you in this. For any mobile apps development requirement, get in touch with us on firstname.lastname@example.org for FREE 30 minutes no obliga>on consulta>on with our mobile experts($200 Value).Credits: hAp://techcrunch.com/2013/05/29/google-‐plays-‐app-‐revenue-‐share-‐up-‐8-‐since-‐november-‐but-‐apple-‐s>ll-‐leads/whatsapp-‐total-‐revenue-‐april-‐2013/
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Over the last two years, Google Play has seen phenomenal growth in Germany. In 2014, its annual app revenue was more than twice what it was in 2013.