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.
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.
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.
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.
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?
Skydeo surveyed over 100,000 bitcoin users from our panel of 607 million mobile devices.
86% of bitcoin users are Male.
65% of bitcoin users are between ages 18-34.
Just 9% of bitcoin users are over age 45
Only 9% meet the the $1M Net Worth requirement for accredited investors. If ICOs are securities then 91% of bitcoin users would not qualify by that standard. They might meet income requirements however.
If you use bitcoin you are 67% to 200% more likely to have a net worth over $1 million.
Bitcoin users are 25% to 50% more likely to drive an Audi, Infinity, Lexus, Mercedes or BMW than people who don’t use bitcoin.
Targeting mobile users by bitcoin or investment app ownership, auto ownership and household income will likely yield better results for ICO marketers than current marketing efforts, especially if the ICO is considered a security. Skydeo provides mobile data for brands, agencies and investment research.
Is Skydeo considering an initial coin offering?
We can’t comment yet but there it would be a natural fit to tie mobile data to cryptocurrency.
In a recent panel study of 340 million mobile users, Skydeo analyzed Tesla car owners mobile app interests compared to non-Tesla car owners and the results are intriguing. Tesla owners were 72 to 103 times more likely to have Charles Schwab or eTrade Investment accounts. The image of Tesla owners as tech savvy, high income individuals is supported by their use of Bitcoin (48x), Robinhood (27x), Mint (20x) and Venmo (15x). Tesla owners have a high propensity to use food & delivery apps (62x) and shopping apps like Amazon Prime, Best Buy and AliExpress. Surprisingly, Tesla owners have a cost conscious side as they used coupon shopping apps like Slickdeals, Key Ring, Groupon and RetailMeNot. Skydeo Insights enables brands to analyze users by traditional metrics like age, gender, income, home ownership plus mobile segments like apps, locations, device, carrier, etc. Skydeo limited this analysis to finance and shopping apps.
Skydeo CEO Mike Ford said “For top brands and agencies, mobile insights are simply the best way to develop user personas to use for product marketing, business intelligence andmedia planning for digital, radio and TV. The mobile personas of their car owners clearly supports Elon Musk’s vision for the Tesla brand.”
Edmunds, the California-based car-buying platform, examined registration data of all 1,600 Tesla Model S vehicles that have ever been sold in the pre-owned market in the U.S. Edmunds also found that owners of used Model S are younger. About 10% of pre-owned Model S buyers are millennials, ages 18 to 34, compared to just 6% of those who purchase a new one. An Edmunds analysis released earlier this month found millennials are leasing vehicles at higher rates than the overall car-buying population and they’re opting for more luxurious, tech-forward cars than they could otherwise afford to buy. Millennials are particularly attracted to leasing Ram, GMC, and Lexus brands. California’s share of used Model S sales is only 30.5%, compared to its 42.5% share of all new sales, according to Edmunds, which examined registration data of all 1,600 Tesla Model S vehicles have ever been sold in the pre-owned market in the U.S. The Tesla brand has migrated into different age and earning demographics. Some 36% of all used Model S buyers earn less than $100,000 a year. Only 25% of new Model S buyers have salaries under $100,000.
Video streaming and “Over the Top” OTT TV has completely changed viewing habits and the way brands will advertise. The convergence of TV with digital changes the traditional TV marketplace and opens the door for digital innovation and data targeting. Skydeo, through our mobile audience panel of over 300 million unique devices, has an interesting view of the OTT and video streaming app landscape.
For marketers looking to target cord-cutters, the best way to reach OTT viewers today may be through their mobile app interests. Skydeo data shows that cord-cutters use more mobile apps overall than traditional TV viewers and of course need to use multiple viewing apps in order to watch the content they want.
Skydeo Market Share of Video Streaming Apps – July 2017
HBO is an interesting case study. HBO’s HBO GO app is for cable subscribers to access shows on their mobile devices while HBO Now is for cord-cutters to subscribe to HBO content without a TV provider. Although installs of both apps continue to increase based on consumer mobile device usage, we can analyze if and when HBO Now installs accelerate or surpass HBO GO installs as an indicator that cord-cutting is increasing.
Tru Optik CEO and Co-Founder Andre Swanston told Real-Time Daily via email: “The biggest difference about this partnership is that legacy DMPs [data management platforms] have fallen behind the audience shift to CTV. They still rely on cookies for desktop and mobile device IDs for smart phones. Across CTV, neither cookies or device IDs are present… This partnership is a huge deal because it opens up people-based targeting abilities across CTV for Videology.”
Scott Ferber, Founder and CEO, Videology stated: “As more and more people watch content on a variety of devices, it’s important for advertisers to have a single view of their audience for holistic campaign delivery. Through this partnership with Tru Optik, our clients will benefit from more granular understanding and execution of advertising on OTT and connected TV, a quickly-growing piece of the video content ecosystem.”