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Hey Adam,
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Business
Mobile Signal
McDonald's (MCD) is scheduled to report earnings on 1/31. Downloads of its global suite of mobiles app are up 16.3% YoY but down 0.6% QoQ. Dive deeper into MCD with a free trial of our Bloomberg Terminal App.
App Acquisition
Strava has acquired Fatmap, a 3D map app designed for people doing outdoor activities. The app has been installed 3.72 million times and has generated $2 million via IAP revenue since launch in April 2018.
Like I said in a previous edition of this newsletter, Lensa AI started another photo app fad, accelerated by social networking apps, just like FaceApp and others had done before it. These fads burn bright and fade quick. There's always one leading apps and a bunch of smaller ones it takes on a ride. We're seeing that exact pattern play out here in terms of both demand (downloads) and revenue generation. There's nothing wrong with that though if you just want to make a cool $22 million in three months like Lensa has.
Hopper will end January 2023 with more downloads than it has ever had in a previous January, capping off a six month run of growth. With 6.1% of the OTA downloads market share in July, Hopper has come roaring back to now own 20.2%, more than any other app in the month. Hopper, along with other smaller players, look to have eaten away at the share of Expedia and Booking.com. Airbnb's performance has essentially been stagnant over this period of time. For Hopper, almost 100% of its advertising efforts have been focused on social video ads between Facebook and TikTok, with TikTok taking a much larger share of impressions on iOS lately. For more on Hopper's UA efforts you can listen to this interview I did with its head of UA, or check out this recent Twitter thread by him (Makoto Rheault-Kihara) speaking to creative.
Spending on Mobile ads has grown from $10B in 2015 to $276B in 2020 worldwide. It is expected to hit $495B by 2024. That’s a 4850% increase! While spending has increased exponentially, efficiency has decreased.