Coronavirus impact sends app downloads, usage and consumer spending to record highs in Q2

As the world continued to cope with the impact of the coronavirus outbreak, the second quarter of 2020 became the largest yet for mobile app downloads, usage, and consumer spending. According to new data from app store intelligence firm App Annie, mobile app usage grew 40% year-over-year in the second quarter of 2020, even hitting an all-time high of over 200 billion hours during April. Consumer spending in apps, meanwhile, hit a record high of $27 billion in the second quarter. And app downloads reached a high of nearly 35 billion.

The growth in app usage has been fueled by social distancing and lockdown measures, as countries around the world try to quell the spread of the novel coronavirus.

Image Credits:

In India, for example, time spent in apps grew 35% in Q2 2020 from Q4 2019. Italy and Indonesia saw growth of 30% and 25%, respectively. In the U.S., time spent in apps grew 15%.

App Annie says that now, the average user is spending 4 hours and 20 minutes per day on their smartphones.

Image Credits: App Annie

 

But consumers aren’t just launching apps they already have installed on their phones — they’re also downloading new ones. In the second quarter, consumers downloaded a nearly 35 billion new apps, an all-time high.

Google Play accounted for 25 billion of those downloads, representing 10% year-over-year growth. India and Brazil were the the two largest markets for Google Play in the quarter.

Image Credits: App Annie

iOS downloads grew 20% year-over-year to reach nearly 10 billion. The U.S. and China were iOS’s biggest markets for downloads, but the U.S. and Saudi Arabia saw the most quarter-over-quarter growth. The latter was likely attributed to a nationwide lockdown and school closures, driving app downloads in the country to a all-time high in April and 100% year-over-year growth on iOS.

Games were downloaded at record levels in the quarter, App Annie noted, totalling 14 billion games. In the first week of Q2, weekly mobile game downloads broke records at over 1.2 billion, and weekly download levels remained at 1 billion on average throughout the quarter, up 20% year over year.

Image Credits: App Annie

Non-gaming apps represented over half (55%) of the new downloads on Android and 70% of those on iOS.

More specifically, top categories outside of games included “Tools” and “Entertainment” on Google Play and “Photo and Video” and “Entertainment” on iOS. But other categories saw strong growth, including “Business,” “Health & Fitness” and “Education” which saw quarter-over-quarter growth in downloads of 115%, 75% and 50% respectively on Google Play.

On iOS, “Health and Fitness,” “Shopping,” and “Medical” apps saw strong quarter-over-quarter growth of 30%, 25% and 20%, meanwhile.

With record downloads and usage, consumer spending also grew significantly as a result, particularly among streaming video services.

Image Credits:

 

In the second quarter, consumers spent a record $27 billion in apps, up 15% year-over-year to $17 billion on iOS and up 25% to $10 billion on Android.

Games accounted for $19 billion of the spend, up 15% quarter-over-quarter. Google Play saw sizable growth at 25% quarter-over-quarter, which was 2x the growth rate on iOS.

Image Credits: App Annie

Non-gaming apps were 35% of the spend on iOS. The U.S. and China the largest contributors in both games and non-game apps on iOS in the quarter. However, the U.S. notably took back the top position as the largest market for consumer games — a spot previously held by China — with 30% quarter-over-quarter growth in Q2.

Non-games were 15% of the spend on Google Play. The U.S., Japan, and South Korea were the largest markets in both non-games and games alike on Google Play.

Top Google Play categories in addition to “Games” included “Social” and “Entertainment.” Growth in the “Entertainment” category was driven largely by Disney+ and Twitch, App Annie noted.

On iOS, “Entertainment” and “Photo and Video” were the largest categories by consumer spend, in addition to “Games.” Here, TikTok drove growth for the “Photo and Video” category, becoming the No. 1 top grossing app on iOS App Store globally in Q2 2020 thanks to sales of virtual gifts used to tip streamers.

Image Credits: App Annie

While much of the activity taking place on mobile devices during the pandemic is related to having fun — like watching videos or playing games, for example — several of the top apps in the quarter were work-related.

Zoom, for instance, became the No. 2 of most downloaded app globally in Q2 2020.  Google Meet was No. 7.

TikTok, meanwhile, was the top app by downloads and spending, and the No. 7 by monthly active users. That will likely change in the months ahead, due to its ban in India. A proposed U.S. ban has also recently seen TikTok rivals gaining ground. Amid this disruption, local competitors in India have seen increased usage, and elsewhere, competitors like Byte and Likee have surged.

 

 

 

 

Google expands its Swirl 3D ad format

Google is announcing the global availability of Swirl, an ad format that the company unveiled in beta just over a year ago.

The Swirl format involves banner ads that include interactive 3D product models. As the company put it in a blog post:

Swirl lets consumers engage with a product like it’s right in front of them by allowing them to rotate, zoom and expand the creative in the ad. Swirl ads allow brands to illustrate changes in behavior, new technology performance, unique product features and more.

The post went on to describe different campaigns that have already been created using the format, including Nissan Spain, which used a Swirl ad to show off the new features of its Qashaqai SUV, and adidas Latin America, which advertised the adidas Ultra Boost 2019 shoe.

Google Swirl

Image Credits: Google

The ads don’t have to be purely product-focused either — apparently Purina used Swirl to allow potential customers to play fetch with a 3D dog model, an ad that apparently saw six times the engagement of a standard 2D ad.

To create Swirl campaigns, advertisers can upload 3D assets to Google Web Designer, or edit the models using Poly.

Google reportedly cancelled a cloud project meant for countries including China

After reportedly spending a year and a half working on a cloud service meant for China and other countries, Google cancelled the project, called “Isolated Region,” in May due partly to geopolitical and pandemic-related concerns. Bloomberg reports that Isolated Region, shut down in May, would have enabled it to offer cloud services in countries that want to keep and control data within their borders.

According to two Google employees who spoke to Bloomberg, the project was part of a larger initiative called “Sharded Google” to create data and processing infrastructure that is completely separate from the rest of the company’s network. Isolated Region began in early 2018 in response to Chinese regulations that mean foreign tech companies that want to enter the country need to form a joint venture with a local company that would hold control over user data. Isolated Region was meant to help meet requirements like this in China and other countries, while also addressing U.S. national security concerns.

Bloomberg’s sources said the project was paused in China in January 2019, and focus was redirected to Europe, the Middle East and Africa instead, before Isolated Region was ultimately cancelled in May, though Google has since considered offering a smaller version of Google Cloud Platform in China.

After the story was first published, a Google representative told Bloomberg that Isolated Region wasn’t shut down because of geopolitical issues or the pandemic, and that the company “does not offer and has not offered cloud platform services inside China.”

Instead, she said Isolated Region was cancelled because “other approaches we were actively pursuing offered better outcomes. We have a comprehensive approach to addressing these requirements that covers the governance of data, operational practices and survivability of software. Isolated Region was just one of the paths we explored to address these requirements.”

Alphabet, Google’s parent company, broke out Google Cloud as its own line item for the first time in its fourth-quarter and full-year earnings report, released in February. It revealed that its run rate grew 53.6% during the last year to just over $10 billion in 2019, making it a more formidable rival to competitors Amazon and Microsoft.

Google launches the Open Usage Commons, a new organization for managing open-source trademarks

Google, in collaboration with a number of academic leaders and its consulting partner SADA Systems, today announced the launch of the Open Usage Commons, a new organization that aims to help open-source projects manage their trademarks.

To be fair, at first glance, open-source trademarks may not sound like it would be a major problem (or even a really interesting topic), but there’s more here than meets the eye. As Google’s director of open source Chris DiBona told me, trademarks have increasingly become an issue for open-source projects, not necessarily because there have been legal issues around them, but because commercial entities that want to use the logo or name of an open-source project on their websites, for example, don’t have the reassurance that they are free to use those trademarks.

“One of the things that’s been rearing its ugly head over the last couple years has been trademarks,” he told me. “There’s not a lot of trademarks in open-source software in general, but particularly at Google, and frankly the higher tier, the more popular open-source projects, you see them more and more over the last five years. If you look at open-source licensing, they don’t treat trademarks at all the way they do copyright and patents, even Apache, which is my favorite license, they basically say, nope, not touching it, not our problem, you go talk.”

Traditionally, open-source licenses didn’t cover trademarks because there simply weren’t a lot of trademarks in the ecosystem to worry about. One of the exceptions here was Linux, a trademark that is now managed by the Linux Mark Institute on behalf of Linus Torvalds.

With that, commercial companies aren’t sure how to handle this situation and developers also don’t know how to respond to these companies when they ask them questions about their trademarks.

“What we wanted to do is give guidance around how you can share trademarks in the same way that you would share patents and copyright in an open-source license […],” DiBona explained. “And the idea is to basically provide that guidance, you know, provide that trademarks file, if you will, that you include in your source code.”

Google itself is putting three of its own open-source trademarks into this new organization: the Angular web application framework for mobile, the Gerrit code review tool and the Istio service mesh. “All three of them are kind of perfect for this sort of experiment because they’re under active development at Google, they have a trademark associated with them, they have logos and, in some cases, a mascot.”

One of those mascots is Diffi, the Kung Fu Code Review Cuckoo, because, as DiBona noted, “we were trying to come up with literally the worst mascot we could possibly come up with.” It’s now up to the Open Usage Commons to manage that trademark.

DiBona also noted that all three projects have third parties shipping products based on these projects (think Gerrit as a service).

Another thing DiBona stressed is that this is an independent organization. Besides himself, Jen Phillips, a senior engineering manager for open source at Google is also on the board. But the team also brought in SADA’s CTO Miles Ward (who was previously at Google); Allison Randal, the architect of the Parrot virtual machine and member of the board of directors of the Perl Foundation and OpenStack Foundation, among others; Charles Isbel, the dean of the Georgia Institute of Technology College of Computing, and Cliff Lampe, a professor at the School of Information at the University of Michigan and a “rising star,” as DiBona pointed out.

“These are people who really have the best interests of computer science at heart, which is why we’re doing this,” DiBona noted. “Because the thing about open source — people talk about it all the time in the context of business and all the rest. The reason I got into it is because through open source we could work with other people in this sort of fertile middle space and sort of know what the deal was.”

Google launches the Open Usage Commons, a new organization for managing open-source trademarks

Google, in collaboration with a number of academic leaders and its consulting partner SADA Systems, today announced the launch of the Open Usage Commons, a new organization that aims to help open-source projects manage their trademarks.

To be fair, at first glance, open-source trademarks may not sound like it would be a major problem (or even a really interesting topic), but there’s more here than meets the eye. As Google’s director of open source Chris DiBona told me, trademarks have increasingly become an issue for open-source projects, not necessarily because there have been legal issues around them, but because commercial entities that want to use the logo or name of an open-source project on their websites, for example, don’t have the reassurance that they are free to use those trademarks.

“One of the things that’s been rearing its ugly head over the last couple years has been trademarks,” he told me. “There’s not a lot of trademarks in open-source software in general, but particularly at Google, and frankly the higher tier, the more popular open-source projects, you see them more and more over the last five years. If you look at open-source licensing, they don’t treat trademarks at all the way they do copyright and patents, even Apache, which is my favorite license, they basically say, nope, not touching it, not our problem, you go talk.”

Traditionally, open-source licenses didn’t cover trademarks because there simply weren’t a lot of trademarks in the ecosystem to worry about. One of the exceptions here was Linux, a trademark that is now managed by the Linux Mark Institute on behalf of Linus Torvalds.

With that, commercial companies aren’t sure how to handle this situation and developers also don’t know how to respond to these companies when they ask them questions about their trademarks.

“What we wanted to do is give guidance around how you can share trademarks in the same way that you would share patents and copyright in an open-source license […],” DiBona explained. “And the idea is to basically provide that guidance, you know, provide that trademarks file, if you will, that you include in your source code.”

Google itself is putting three of its own open-source trademarks into this new organization: the Angular web application framework for mobile, the Gerrit code review tool and the Istio service mesh. “All three of them are kind of perfect for this sort of experiment because they’re under active development at Google, they have a trademark associated with them, they have logos and, in some cases, a mascot.”

One of those mascots is Diffi, the Kung Fu Code Review Cuckoo, because, as DiBona noted, “we were trying to come up with literally the worst mascot we could possibly come up with.” It’s now up to the Open Usage Commons to manage that trademark.

DiBona also noted that all three projects have third parties shipping products based on these projects (think Gerrit as a service).

Another thing DiBona stressed is that this is an independent organization. Besides himself, Jen Phillips, a senior engineering manager for open source at Google is also on the board. But the team also brought in SADA’s CTO Miles Ward (who was previously at Google); Allison Randal, the architect of the Parrot virtual machine and member of the board of directors of the Perl Foundation and OpenStack Foundation, among others; Charles Isbel, the dean of the Georgia Institute of Technology College of Computing, and Cliff Lampe, a professor at the School of Information at the University of Michigan and a “rising star,” as DiBona pointed out.

“These are people who really have the best interests of computer science at heart, which is why we’re doing this,” DiBona noted. “Because the thing about open source — people talk about it all the time in the context of business and all the rest. The reason I got into it is because through open source we could work with other people in this sort of fertile middle space and sort of know what the deal was.”

This Week in Apps: India bans Chinese apps, Apple freezes game updates in China, iOS developer backlash continues

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.

This week, we’re tracking the continued ramifications of the in-app purchases incident ignited by Basecamp, which has emboldened more developers to voice their gripes with Apple publicly in the past few days. The app stores are also this week enmeshed in world of politics, ranging from the India-China border dispute to apps impacted by China’s big brother-esque regulations to the latest with Apple’s antitrust probe.

HEADLINES

Dozens of Chinese apps banned in India

In a major upset to mobile app businesses competing on a global stage, India this week blocked 59 apps developed by Chinese firms, due to concerns that the apps were engaging in activities that threatened the “national security and defense of India,” according to the Indian government.

The ban itself is a political power move as it follows deadly clashes between Indian and Chinese troops along the disputed Himalayan border in June, which led to the death of at least 20 Indian soldiers on June 16. (China didn’t disclose its casualties.) Indian government officials claimed they had received reports of the apps stealing and transmitting user data in an unauthorized manner to servers outside the country. This is what necessitated the ban, they said.

India’s move could prove to have larger repercussions, as it sets the stage for a world where Chinese internet companies are excluded from key markets. This isn’t something that’s limited to apps, of course. For instance, the  U.S. is rallying its allies to stop using Huawei technologies for 5G. But China’s policies could mean its more successful apps, like TikTok, will lose key markets and therefore, forfeit revenue and power.

  • India’s ban threatens TikTok’s growth in a key market 

The move to ban the Chinese apps in India most notably impacts TikTok. To date, India had been the app’s largest overseas market until now, with some 200M+ users across around 611M lifetime downloads. In the most recent quarter, TikTok and the 58 other banned apps combined, had been downloaded around 330M times. The ban is estimated to impact roughly one in three smartphone users in India, according to research firm Counterpoint.

Google and Apple began to comply with New Delhi’s order on Thursday, to prevent Indian users from accessing the banned apps. In addition, India’s Department of Telecommunications ordered telecom networks and ISPs to block access to those 59 apps immediately.

Kevin Mayer, the chief executive of TikTok, said on Wednesday his app was in compliance with Indian privacy and security requirements and he was looking forward to meeting with various stakeholders in the Indian government to discuss.

R&D Roundup: Tech giants unveil breakthroughs at computer vision summit

Computer vision summit CVPR has just (virtually) taken place, and like other CV-focused conferences, there are quite a few interesting papers. More than I could possibly write up individually, in fact, so I’ve collected the most promising ones from major companies here.

Facebook, Google, Amazon and Microsoft all shared papers at the conference — and others too, I’m sure — but I’m sticking to the big hitters for this column. (If you’re interested in the papers deemed most meritorious by attendees and judges, the nominees and awards are listed here.)

Microsoft

Redmond has the most interesting papers this year, in my opinion, because they cover several nonobvious real-life needs.

One is documenting that shoebox we or perhaps our parents filled with old 3x5s and other film photos. Of course there are services that help with this already, but if photos are creased, torn, or otherwise damaged, you generally just get a high-resolution scan of that damage. Microsoft has created a system to automatically repair such photos, and the results look mighty good.

Image Credits: Google

The problem is as much identifying the types of degradation a photo suffers from as it is fixing them. The solution is simple, write the authors: “We propose a novel triplet domain translation network by leveraging real photos along with massive synthetic image pairs.” Amazing no one tried it before!

R&D Roundup: Tech giants unveil breakthroughs at computer vision summit

Computer vision summit CVPR has just (virtually) taken place, and like other CV-focused conferences, there are quite a few interesting papers. More than I could possibly write up individually, in fact, so I’ve collected the most promising ones from major companies here.

Facebook, Google, Amazon and Microsoft all shared papers at the conference — and others too, I’m sure — but I’m sticking to the big hitters for this column. (If you’re interested in the papers deemed most meritorious by attendees and judges, the nominees and awards are listed here.)

Microsoft

Redmond has the most interesting papers this year, in my opinion, because they cover several nonobvious real-life needs.

One is documenting that shoebox we or perhaps our parents filled with old 3x5s and other film photos. Of course there are services that help with this already, but if photos are creased, torn, or otherwise damaged, you generally just get a high-resolution scan of that damage. Microsoft has created a system to automatically repair such photos, and the results look mighty good.

Image Credits: Google

The problem is as much identifying the types of degradation a photo suffers from as it is fixing them. The solution is simple, write the authors: “We propose a novel triplet domain translation network by leveraging real photos along with massive synthetic image pairs.” Amazing no one tried it before!

Apple and Google block dozens of Chinese apps in India

Two days after India blocked 59 apps developed by Chinese firms, Google and Apple have started to comply with New Delhi’s order and are preventing users in the world’s second largest internet market from accessing those apps.

UC Browser, Shareit, and Club Factory and other apps that India has blocked are no longer listed on Apple’s App Store and Google Play Store. In a statement, a Google spokesperson said that the company had “temporarily blocked access to the apps”on Google Play Store as it reviews New Delhi’s interim order.

Apple, which has taken a similar approach as Google in complying with New Delhi’s order, did not respond to a request for comment. Some developers including ByteDance have voluntarily made their apps inaccessible in India, a person familiar with the matter told TechCrunch.

Thursday’s move from Apple and Google, whose software power nearly every smartphone on the planet, is the latest escalation in an unprecedented tension in recent times between  China and India.

A skirmish between the two neighbouring nations at a disputed Himalayan border site last month left 20 Indian soldiers dead, stoking historical tension between them. Earlier this week, India ordered to block 59 Chinese apps including ByteDance’s TikTok citing national security concerns.

On Thursday, Indian Prime Minister Narendra Modi also shut his Weibo account.

More to follow…

AR 1.0 is dead: Here’s what it got wrong

The first wave of AR startups offering smart glasses is now over, with a few exceptions.

Google acquired North this week for an undisclosed sum. The Canadian company had raised nearly $200 million, but the release of its Focals 2.0 smart glasses has been cancelled, a bittersweet end for its soft landing.

Many AR startups before North made huge promises and raised huge amounts of capital before flaring out in a similarly dramatic fashion.

The technology was almost there in a lot of cases, but the real issue was that the stakes to beat the major players to market were so high that many entrants pushed out boring, general consumer products. In a race to be everything for everybody, the industry relied on nascent developer platforms to do the dirty work of building their early use cases, which contributed heavily to nonexistent user adoption.

A key error of this batch was thinking that an AR glasses company was hardware-first, when the reality is that the missing value is almost entirely centered on missing first-party software experiences. To succeed, the next generation of consumer AR glasses will have to nail this.

Image Credits: ODG

App ecosystems alone don’t create product-market fit