App Annie, a mobile app data and insights company, today released its fourth annual Retrospective Report, a comprehensive analysis of the top app market trends for 2016.

As consumer behaviour continues to shift increasingly app-first, the Retrospective Report provides app market and category insights to better run mobile businesses. The report covers the growth of the overall mobile app economy with a focus on which industries and countries are most impacted.

Given worldwide growth in both downloads and usage, publisher revenue grew 40 per cent year-over-year – an acceleration over 2015’s growth rate – resulting in US$35 billion across iOS and Google Play app stores. When including in-app advertising, app store revenue and third-party Android stores in 2016, publishers made over US$89 billion in revenue.

App downloads grew by 15 per cent worldwide across iOS and Google Play, with total time spent in apps increasing by 25 per cent. Further, the report stated that the average consumer uses well over 30 apps per month across various markets*.

• In Australia, combined iOS and Google Play revenue for apps sees Tinder in first place, followed by Spotify, Netflix, Zoosk, and the AFL Live Official App.

• The top five games in Australia, once again looking at revenue across both iOS and Google Play platforms, were: Heart of Vegas, Pokémon GO, Slotomania, Game of War – Fire Age and Clash of Clans.

• Top companies by revenue across iOS and Google Play ranked InterActiveCorp (IAC) first, followed by Spotify, Telstra, Netflix and Zoosk.

• When looking at top apps by download across both platforms, Australia ranked Facebook Messenger in first place, followed by Facebook, Snapchat, Apple iMovie, and iTunes U.

• Top games by download saw Pokémon GO in first place, then Color Switch, slither.io, Monopoly at Macca’s and Clash Royale.

• Top companies by download were: Facebook, Google, Apple, Microsoft, and Snap. Uber Technologies came in sixth position.

“As technology and business models continue to evolve, apps are playing an even greater role in transforming, and creating opportunities for, companies and industries both established and new,” remarked Danielle Levitas, senior vice president of research at App Annie.

“We’re seeing major indications of this shift globally. App adoption is growing rapidly in emerging markets including India and Indonesia – while mature markets are seeing apps challenge and change traditional industries including retail, entertainment and banking.”

Key highlights for the 2016 Retrospective Report include:

The app economy continues impressive growth worldwide. Contrary to the myth that no one downloads apps anymore, consumers are increasingly downloading, and using apps:

• India’s app market grew massively outpacing the US to surpass it as the #1 country by Google Play downloads, from around 3.5 billion downloads in 2015 to over 6 billion downloads in 2016.

• In 2016, publishers were paid over US$35 billion in revenue across the iOS App Store and Google Play. When including in-app advertising, app store revenue and third-party Android stores in 2016, publishers made over US$89 billion in revenue.

• Downloads increased by more than 13 billion, reaching 90 billion, across iOS and Google Play.

• Usage, downloads and revenue increased worldwide, with total time spent in apps increasing by over 150 billion hours year-over-year, reaching nearly 900 billion hours in 2016**. Most countries experienced over 20 percent year-over-year growth for time spent in-app.

Apps disrupt traditional industries Banking, Entertainment and Retail

• Fintech apps have grown in popularity and are opening doors to transforming financial transactions, especially for the long-standing full-service retail banking model.

• Video streaming goes big time causing entertainment companies to rethink their business models. Consumers are now more willing to pay for subscription services in-app rather than outside of the app store, e.g. Netflix globally, and Youku in China.

• For Retail, time spent in shopping apps grew by 30 percent year-over-year in the United States for the busy buying month of November.

Games are still #1 when it comes to app revenue, thanks to the likes of Pokémon GO bringing non-gamers into gaming

Gaming had a tremendously strong showing in 2016 with Pokémon Go taking centre stage. Pokémon Go ranked third for top games of 2016 for revenue (Worldwide, iOS and Google Play combined) and attracted millions of non-gamers and familiarised consumers with the concept of augmented reality (AR).

It made US$500 million in consumer spend in under 60 days, reaching a level of success that eludes even some of the most successful traditional video games.

• Games still lead revenue – generating the most app store revenue across iOS (75 percent) and Google Play (90 percent).

The full report can be downloaded here.
*iPhone, 2016
**Android phone total time, excluding China