Mobile Trends of 2014 Summarized into 9 Points by the App Annie Report

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Wael Nabbout
Feb 02 2015
Industry
Mobile Trends of 2014 Summarized into 9 Points by the App Annie Report
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We’re not done with 2014 just yet. App Annie, a company that provides business intelligence solutions such as ranking, sales analytics and advanced market intelligence for the app economy, has released a comprehensive report on app trends of 2014.

According the report, “App Annie Index: 2014 Retrospective - Top App Trends of 2014”, last year saw apps and app stores become even more prominent with a number of new trends emerging. Among them, the rise of ‘super casual’ gaming, explosive growth in the sharing economy, and the emergence of messaging platforms as a dominant option for publishers looking to expand into new regions.

To give you practical examples of the above mentioned trend, think  of Flappy Bird rise to fame; a simple, single-tap ‘super casual’. Apps such as Uber and Lyft enjoyed staggering growth and commanded multi billion dollar valuations. Finally, the report claims that “following the evolution of messaging apps into diverse, multi-functional platforms, they emerged as the de facto avenue for foreign and domestic publishers looking to distribute content to large audiences.”

iOS versus Android: Same old story, but bigger

Where would a year mobile report be without pitting Android against iOS. In 2014, Google’s Play store grew its lead over the App Store with nearly 60% more worldwide app downloads. iOS did maintained its hefty lead in monetization. It generated over 70% more yearly app revenue than its Mountain View rival.

App store superpowers dominate

Japan, South Korea and the United States collectively generated more revenue than the rest of the world combined, showing a noteworthy ability to monetize in a saturating market marred by slowing download growth. BRIC countries - Brazil, Russia, India and China - continued their strong download growth. Brazil moved up three ranks and reached second spot in Google Play downloads. The US ranked first. China topped BRIC countries in revenue growth. It ranked third by year’s end by iOS revenue behind only the United States and Japan. The report also noted that these countries are now “appealing for their monetization potential as well as their expansive audience.” Combined, they grew revenue by over 120% in 2014.

Messaging apps show staggering growth and disruptive potential

Messaging apps continued their phenomenal rise in 2014. WhatsApp was acquired for a whopping $19B. LINE and WeChat grew a variety of new functionalities. In addition to games and sticker packs, they now include taxi-hailing, mobile payments and streaming media. Tencent’s WeChat app boasted 468M monthly active users by mid-November 2014, “providing the messaging platform with unprecedented negotiating influence with publishers.” The report finally notes that perhaps the key challenge going forward for these companies would be figuring out way to differentiate themselves from the rest of the pack.

More growth in travel and transportation apps with the sharing economy playing as strong part

The top 10 travel and transportation apps grew over 30% in downloads. Uber, Lyft and other similar services revolutionized the the taxi industry, with strategic partnerships playing a key part in their growth. Uber integrated with Google Maps in May; Lyft partnered with a crowdsourcing public transit app called Moovit in June. These moves allowed them to acquire customer fast.

The sharing economy also enjoy also enjoyed a stellar outside of ground transportation. Airbnb, Homeaway VRBO, Couchsurfing and Dwellable were some of the most popular apps within the Hotel & Lodging subcategory.

Video streaming apps among the winners in 2014

Proliferation of high-speed data, bigger and cheaper data plans, and larger phone screen sizes drove mobile viewing up. This in turn helped push the download numbers of video streaming apps. Among other trends in video, in Europe, local content proved vital for Netflix. Additionally, “increased demand in mobile video content coincided with some networks unbundling themselves from pay TV operators.” Sports apps such as MLB.com At Bat, NFL Game Pass and BoxNation delivered content directly to users without third-party restrictions. This trend is expected to continue in 2015 with more unbundling of premium content. This means that consumers will have more freedom than ever to consume video on the go.

The silver screen goes mobile

Popular cultural icons were a great success when repackaged within mobile games. Games based on movies peaked with premieres, and in some cases extended the life cycle of the intellectual property. This translated into more brand loyalty and kept users engaged between movies. In 2015, more traditional media brands will look to acquire and monetize mobile users “though existing game structures refreshed with their well-known intellectual properties.”

Gaming skewed towards males, social media and photo and video skewed towards females

A look at the gender composition of downloads in United States for several app categories reveals that mobile gamers tended to be slightly more male, whereas social networking and photo and video skewed towards female audiences. Visual discovery apps, think Pinterest, are “home to legions of loyal female users.” Such apps, ones with a strong appeal to particular demographics, offer easier targeting for advertisers.

Rise of the super casual games

For a while, the search for the next Flappy Bird became as emblematic as the search for the next Facebook once was.The so called ‘Super casual’ games’ seized the spotlight in 2014. Flappy Bird’s virality spawned a legion of imitators; a slew of short sessions and single-tap games followed. ‘Super casual’ game publisher Ketchapp Studio was one company that flourished as a result and finished the year in the top 10 publishers by worldwide iOS and Google Play downloads.

For music apps, local content is king

Localization proved key for music in different markets. Spotify and Shazam Are strong in North America and Western Europe, but there is a palpable demand for regional music services with local market knowledge and expertise. Tencent’s QQ Music took top spot in China, while Palco MP3 focused purely on local Brazilian talent. To stay competitive, companies must source the best local artists and launch innovative product features.

The report also includes exhaustive lists of downloads and revenues for a number of countries, as well as App Store and Google Play specific stats. You can access it here.