Turks spent almost $250 million on mobile apps in 2017
Turkey is one of the largest markets in the world for app downloads, according to App Annie, a San Francisco-based mobile app, data and insights platform. Turks spent nearly $250 million on mobile apps last year, a recent App Annie report said. The global expenditure reached $82 billion, the same report added.
Total app store consumer expenditures in Turkey have grown by 56 percent annually between 2012 and 2017, surpassing $200 million in 2016. Revenue is growing steadily but is yet to accelerate, the report noted, adding that Turkey was approaching a period of rapid engagement and expenditure growth.
Turkey is listed number eight in app downloads by Google Play and the IOS App Store, as well as other third party Android stores. China tops the list, followed by India, the U.S., Brazil and Russia.
However, the compound annual growth rate (CAGR) for downloads, which was 44 percent at the end 2017, has started to flatten out. Download growth is expected to grow by 4 percent annually over the next five years, App Annie reported.
The average daily time spent in apps continues to grow as well, the report said. Turks spent around three hours (186 minutes) using apps, representing a 14 percent annual growth over the last three years (the figure is for Android users only).
Some 82 percent of downloads are from Google Play, significantly more than in other markets when compared with IOS App Store downloads, the App Annie report said. However, it should be noted that Apple earns around twice as much in revenues than other peers globally.
Turks using android phones spent most of their time in apps for social networking, videos and games. Food and drink apps, the fastest growing category in terms of downloads, grew by 56 percent in 2017 when compared with the previous year. Health and fitness app downloads grew by 45 percent, books and reference apps by 31 percent, entertainment apps by 30 percent and shopping by 28 percent over the same period.
14 percent local downloads
International companies are making headway in the market, the report said. Only 14 percent of apps downloaded in Turkey are generated by domestic companies that have headquarters in the country, compared to 24 percent in Russia.
Whatsapp messenger is the top app in Turkey followed by Facebook, Instagram, Facebook Messenger and Twitter. Sahibinden.com is the most used Turkish app, listed 6th overall in the ranking. Other Turkish apps by Avea Online and e-devlet (Turkish state portal) are in the top 10 list. Turkcell Hesabim, Garanti Mobile Banking, Ziraat Mobil, IsCep and MEB E-Okul are others in the top 20 list. There are also three mobile games among the top 10 in terms of monthly active users.
Demand for traditional self-service apps is growing significantly and telco apps are growing with a CAGR of 90 percent over the last five years while the average sessions per user has grown by over 80 percent over the last three years, the report added.
TRY 40 millon on entertainment
Turks with Android phones spent around 500 million hours engaged on entertainment apps in 2017, representing 80 percent growth from the previous year. As expected, Youtube was the most popular video streaming app in Turkey. However, it was followed by “puhutv” of Dogus Holding and TV+ of Turkcell. Netflix is on a growth path, followed by Amazon’s Twitch, DilediginYerde of Digiturk (BeINConnect). Turk Telekom’s Tivibu and BluTV of Dogan Holding are other apps in the top 10 list.
Total entertainment app expenditure has shown a growth of CAGR 45 percent between 2014 and 2017, rising over TRY 40 million last year, the report said.
It also said a growing number of Turkish consumers are using apps to manage their finances, namely mobile bank apps, growing by 60 percent annually since 2014. Garanti Bank’s BonusFlas, Isbank’s Maximum Mobil, Yapi Kredi’s Cuzdan, Akbank’s Axcess and Ziraat’s Bankkart are the most popular financial apps in Turkey. The average open rate of wallet apps in Turkey in May 2018 was 74 percent.
Turkish customers are especially engaged users of banking apps, it said, noting that the average performance of the top five banks in Turkey exceeds their peers in the U.S. and U.K., in terms of average active users and monthly open rate.
Turks sell on Sahibinden.com
In shopping category apps, Sahibinden.com is the most popular, followed by letgo and AliExpress. Turkish apps Hepsiburada and N11 are also in the top five. GittiGidiyor of Ebay, Trendyol of Alibaba (which recently acquired a majority stake) and Hopi are others on the list. Letgo’s February 2016 TV campaign boosted its Turkish users, helping the company establish a foothold in Turkey, the App Annie report noted.
Mobile gaming apps show strong revenue growth in Turkey. Gaming expenditure is growing at a consistent rate, 65 percent CAGR, but saw a spike in 2016, the report said. The total expenditure exceeded TRY one billion in 2016 before it slowed down. Gram Games and Peak Games were the largest mobile gaming companies in Turkey.
Turkey is one of the largest app markets in the world despite being in the early stages of maturity, App Annie said. Engagement and revenue will grow significantly over the next few years and this is a big opportunity for local companies because home grown apps perform well in the market, it noted.