Dropbox vs. Spotify IPO: App Intelligence – Alternative Data

Dropbox vs. Spotify IPO: App Intelligence – Alternative Data

Dropbox and Spotify going public is good news for the mobile marketplace so we decided to compare the two apps and their users in Skydeo. Skydeo surveyed over 250 million users from our panel of 875 million uniques.   We also tracked new app downloads during October & November 2017 for both sets of apps.

  • 12% of Dropbox users had Spotify.
  • Dropbox users were 48% more likely to have Spotify installed than non-Dropbox users
  • 22% of Spotify users had Dropbox.
  • Spotify users were 57% more likely to have Dropbox installed than non-Spotify users.

Skydeo DeviceMap

Dropbox and Spotify Users in US by Carrier

Dropbox and Spotify Users in US by Carrier

According to the Dropbox S-1

Our future growth could be harmed if we fail to attract new users or convert registered users to paying users.

We must continually add new users to grow our business beyond our current user base and to replace users who choose not to continue to use our platform. Historically, our revenue has been driven by our self­ serve model, and we generate more than 90% of our revenue from self­serve channels. Any decrease in user satisfaction with our products or support could harm our brand, word ­of ­mouth referrals, and ability to grow.

Additionally, many of our users initially access our platform free of charge. We strive to demonstrate the value of our platform to our registered users, thereby encouraging them to convert to paying users through in­ product prompts and notifications, and time­ limited trials of paid subscription plans. As of December 31, 2017, we served over 500 million registered users but only 11 million paying users. The actual number of unique users is lower than we report as one person may register more than once for our platform. As a result, we have fewer unique registered users that we may be able to convert to paying users. A majority of our registered users may never convert to a paid subscription to our platform.

In addition, our user growth rate may slow in the future as our market penetration rates increase and we turn our focus to converting registered users to paying users rather than growing the total number of registered users. If we are not able to continue to expand our user base or fail to convert our registered users to paying users, demand for our paid services and our revenue may grow more slowly than expected or decline.

Based on Dropbox new app downloads during October & November, their ability to attract new users is strong.  It will be interesting to see if the IPO hype increases new downloads over time.

Skydeo AppGraph Insights

Dropbox vs SpotifyAccording Jeff Bussgang, VC and HBS Lecturer :

Dropbox has a magical business model and the data in the S-1 proves it. The company reports that “we generate over 90% of our revenue from self-serve channels”. Think about that for a minute. The free product is so attractive that it drives massive adoption and the conversion from free to paid is so obvious and smooth (more usage leads to more storage leads to paid product) that the company has a customer acquisition engine that derives from a simply great product and a compelling value proposition. Forget sales and marketing, at Dropbox, the product itself is a massively effective and efficient customer acquisition machine.

Does it cost too much to service all these free customers? Happily, Dropbox is following a cost curve of declining storage and cloud costs. Gross margins have soared from 33% in 2015 to 54% in 2016 to 67% in 2017. If a CEO tells you she is going to increase gross margins from 33% to 67% in two years on a $1 billion revenue business, you would check her in to an insane asylum. Dropbox did it easily.

Spotify Files for IPO

Skydeo PlacesGraph

 Locations of Spotify Users

Locations of Spotify Users

Locations of Dropbox Users

Locations of Dropbox Users

Uber Driver vs. Lyft Driver  Market Share by Skydeo

Uber Driver vs. Lyft Driver Market Share by Skydeo

Lyft recently raised $1.5 Billion to grow their ride sharing business and steal market share from Uber, the incumbent in the space.  A key factor in driving rides and revenue is the number of drivers available or “Share of Drivers”.    Skydeo surveyed ride sharing apps, analyzed each group of users and the overlap between them.   We discuss these results in an Uber at CES in Las Vegas with a driver of both Lyft and Uber.

In a Skydeo AppGraph survey of Lyft Drivers, 65% of Lyft Drivers also used the Uber Driver app.   In comparison, just 3.9% of all Uber Drivers also use Lyft Driver.

Lyft certainly has room to grow by stealing market share from Uber Drivers or at least co-existing with those drivers.  Uber remains the market leader in terms of gross Uber Drivers and Riders.

Lyft Driver - Uber Driver Comparison

Lyft Driver – Uber Driver Overlap Analysis

Interested in competitive analysis or targeting for your company?  Contact Skydeo today

NFL Fan Market Share Report 2017

NFL Fan Market Share Report 2017

The NFL Playoffs were in full swing this weekend so we fired up the Skydeo Insights machine while we watched.

Which NFL team is the most popular with fans?  Who is really “America’s Team”?  What impact does fan popularity have on team success?

Skydeo used our panel of 850 million unique mobile devices to survey NFL fans from the 2017 season.  For the purposes of this analysis, fan market share or popularity is based on the mobile app downloads of each NFL team.   How did your team do?

NFL Fan Market Share Report - Skydeo Mobile Insights

 

Data Monetization Drives Growth

Data Monetization Drives Growth

A new survey by McKinsey & Co. shows that many companies are launching data monetization businesses, most of them within the last two years.  Most notably, data monetization correlates to industry-leading performance.

 

Data monetization is becoming a differentiator

Across industries, most respondents agree that the primary objective of their data-and-analytics activities is to generate new revenue. We asked about data monetization as one such way to create revenue, and the results suggest that these efforts are fairly new. Of the 41 percent of respondents whose companies have begun to monetize data, a majority say they began doing so just in the past two years.

Look outside for innovation.

Once companies’ data-and-analytics foundations are in place, they may still find that the most innovative solutions can best be sourced externally, by partnering with others in
the data ecosystem.

Skydeo helps data providers monetize their mobile data through the Skydeo Audience Maker (SAM) and direct relationships with top brands and agencies.  Benefits for app publishers include:

  • New Revenue at 100% Profit without interfering with In App Purchases or existing Advertising/Video revenue
  • Privacy Compliant – 100% User Opt-In only
  • Aggregated and Anonymous
  • Not Competitive – other marketers cannot target your users
  • Skydeo handles all the technology, sales and marketing to make your data monetization efforts successful.
Learn How to Monetize Data

 

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