
44 segments available
A few weeks ago, Apple released a stunning statistic: they’ve paid developers over $320B — yes, billion! — since the launch of the App Store in 2008, highlighting the cast opportunity in the marketplace. And around the same time, a16z Consumer Partner, Olivia Moore, compiled a list of the top apps across the US app store throughout 2022. In this episode, you’ll get to hear which apps made it to the top and what they have in common. Hint: the big winners were in social, but perhaps a new wave of social apps! We also get the scoop on what it really takes to not just hit #1, but stay there. This episode highlights numerous surprising examples ranging from a new-age Beanie Baby app, a viral talking dog, an app from 2012 that finally broke the top 10, and the Chinese app that’s been at #1 for a majority of 2023, and it’s not TIkTok! There are endless learnings about how new founders can take advantage of these opportunities. Timestamps: 00:00 - Top apps in 2022 03:23 - A new era of social? 06:55 - Hitting #1 08:57 - Staying on top 10:43 - Building a sticky product 13:29 - Growing an app in 2023 14:57 - User-generated growth 17:07 - 2022 category winners 20:00 - Anonymous social 21:37 - Early monetization 25:45 - Monetization trends 30:27 - Leveraging platform shifts 34:58 - Surprising hits 37:21 - Looking toward 2023 39:09 - Invisible AI products 41:19 - Limiting virality 44:43 - Vertical social networks 48:16 - When digital goes physical 51:19 - TikTok growth 53:01 - Geographic trends 55:33 - A decade old app 59:58 - App challenge Resources: * Follow Olivia on Twitter: https://twitter.com/omooretweets * Olivia's 2022 analysis: https://twitter.com/omooretweets/status/1605983056682045440 * Olivia's 2021 analysis: https://twitter.com/omooretweets/status/1483482099562602500 * Justine’s Boating app commentary: https://twitter.com/venturetwins/status/1616121691830390784 * Olivia’s Tinder subscription commentary: https://twitter.com/omooretweets/status/1616480480546942976 Apps mentioned: * BeReal: https://apps.apple.com/us/app/bereal-your-friends-for-real/id1459645446 * TikTok: https://apps.apple.com/us/app/tiktok/id835599320 * Gas App: https://apps.apple.com/us/app/gas/id1641791746 * Talking Ben the Dog: https://apps.apple.com/us/app/talking-ben-the-dog/id416345319 * Argo Boating Navigation: https://apps.apple.com/us/app/argo-boating-navigation/id1463869636 * NoteIt: https://apps.apple.com/us/app/noteit-widget-get-it-now/id1570369625 * Locket Widget: https://apps.apple.com/us/app/locket-widget/id1600525061 * LiveIn: https://apps.apple.com/us/app/livein-share-your-moment/id1606780589 * Slay: https://apps.apple.com/de/app/slay-komplimente-umfragen/id1645858841 * Lensa AI: https://apps.apple.com/us/app/lensa-photo-editing/id1436732536 * Starlink: https://apps.apple.com/us/app/starlink/id1537177988 * NOAA Weather: https://apps.apple.com/us/app/noaa-weather/id436760574 * Stardust Period Tracker: https://apps.apple.com/us/app/stardust-period-tracker/id1495829322 * Temu: https://apps.apple.com/us/app/temu-team-up-price-down/id1641486558 * SquadApp: https://apps.apple.com/us/app/squadapp-collection-database/id1623120952 * TravelBoast: https://apps.apple.com/us/app/travelboast-my-journey-routes/id1476504378 * Subway Surfers: https://apps.apple.com/us/app/subway-surfers/id512939461 Stay Updated: Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://twitter.com/stephsmithio Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. For more details please see a16z.com/disclosures.
In this segment, we explore the unprecedented opportunity for developers in the mobile app market, highlighted by Apple's staggering statistic of over $320 billion paid to developers since 2008. Olivia Moore joins to discuss the current state of the App Store and the potential for new apps to quickly monetize and succeed.
"I think the opportunity maybe has never been greater to build and monetize a mobile app quickly make a few million dollars and retire if that's what you want to do welcome back to the a16z podcast and..."
Olivia Moore shares insights from her analysis of the top apps in the US App Store for 2022, revealing that the leading apps were BeReal, TikTok, and Gas App. This segment discusses the significance of these apps and their rise to the top, emphasizing the shift towards new social media platforms.
"state of the App Store so look a few weeks ago Apple released a stunning statistic they said they feed developers over 320 billion dollars yes billion since the launch of the App Store in 2008 and aro..."
The conversation shifts to whether we are entering a new age of social media, as none of the traditional platforms like Facebook or Instagram made it to the top of the charts. Olivia discusses the implications of this shift and what it means for user engagement and app development.
"that day oh my gosh it took a while but the end result ended up being pretty interesting because I was able to run a bunch of numbers and analysis on the apps that did crack that number one spot first..."
This segment delves into how the top apps of 2022 reflect a broader shift towards authenticity and interactive experiences. Olivia explains how apps like BeReal and Gas App differ from traditional social media, focusing on genuine interactions rather than curated feeds.
"spot for the year overall I have to say that I'm not really very active on any of those three apps so I feel super old hearing that they are the three topping the charts but um just to reiterate so th..."
Olivia discusses the challenges new apps face in not only reaching the top of the charts but also maintaining their position. The conversation highlights the rapid turnover of popular apps and the need for strong user engagement to sustain success.
"not always the case I pulled the data for 2021 as well and the top five for that year was a mix of some social media but also fintech more utility or business apps like zoom and then traditional media..."
In this segment, Olivia shares insights on what it takes to create a 'sticky' app that retains users. She emphasizes the importance of network effects and consistent value delivery to keep users engaged beyond initial downloads.
"they're providing to the user I absolutely agree I think we've seen this broader shift towards authenticity and towards more interactive experiences on social and a way for maybe the traditional scrol..."
The discussion turns to the significance of word-of-mouth marketing in app growth. Olivia explains how organic growth through user recommendations can be more effective than traditional marketing strategies, especially for new apps.
"like a smaller group of close friends versus maybe these large feed products where you're seeing tons of posts from influencer and Brands and and larger companies and it's a very kind of curated exper..."
Olivia highlights the competitive nature of the app market, where new apps must contend with established giants. She discusses the importance of virality and the role of platforms like TikTok in helping new apps gain visibility.
"it's just me no I I absolutely agree with you um my data shows that there's kind of a lot more new number ones every year and kind of the pace of that is speeding up every year apple is a little bit s..."
This segment addresses the difficulty of retaining users in a fast-paced app environment. Olivia shares data showing that many apps only hold the number one spot for a short time, emphasizing the need for continuous engagement strategies.
"to like a hundred thousand downloads a day and you're competing against like some of the other number ones this year were like NBC's peacock streaming service Planet Fitness doordash HBO Max these big..."
Olivia discusses the importance of creating engaging user experiences that encourage daily use. She highlights how apps like BeReal and Gas App leverage unique features to foster user interaction and community.
"and more than half of the apps at number one were up there for less than five days throughout the whole year not even five consecutive days what I've seen is you know it's if you have a tick tock vira..."
In this segment, Olivia explains how the fear of missing out (FOMO) can drive user engagement. She discusses how apps create moments that encourage users to participate and share their experiences with others.
"retention when it does feel like there is this interest of again novelty like give me something new all the time I think it's largely a couple things I think it's a product question of like have you b..."
The conversation shifts to how apps can capitalize on viral moments to boost downloads. Olivia shares examples of apps that have successfully harnessed user-generated content and social media trends to achieve rapid growth.
"moment where if you don't have the be real and you see everyone get the ding and pull out their phones you're gonna check it out gas app is also has a very kind of clever hook they went in through hig..."
Olivia discusses the role of traditional media appearances in app promotion. She reflects on how coverage on platforms like the Today Show can generate significant interest, but may not always translate to substantial downloads.
"is huge like any marketing budget probably can't hit that purely through paid growth and so there does need to be this viral element what would you say about being able to do that effectively because ..."
In the final segment, Olivia shares her thoughts on the future of app growth and the evolving landscape of user acquisition. She emphasizes the need for innovative strategies to stand out in a crowded market.
"interesting to them that's kind of the ultimate to me like the peak of a great consumer product I do think we still see like Tick Tock as an organic channel is still very powerful it's probably harder..."
This segment explores the emotional connections that can drive app downloads, illustrated by a touching story about a boating app promoted by a daughter to help her father. Olivia discusses how emotional storytelling can resonate with users and lead to substantial engagement, even if the app doesn't initially reach the top rankings.
"acquisition moments that aren't at all orchestrated by the company but orchestrated by the user base and they're almost their own kind of special form of Word of Mouth but at like massive scale one of..."
Olivia reflects on the challenges of reaching the top of app store rankings, emphasizing that even viral hits may struggle to maintain their position. She discusses the significant number of downloads required to achieve and sustain a top ranking, providing context for the competitive landscape of app growth.
"app store which maybe people are like oh number seven is not that high but again you said hit number one all of these are social apps General Mass marketed apps and they require a hundred thousand dow..."
In this segment, Olivia identifies key tech shifts that influenced app trends in 2022, such as the introduction of widgets in iOS 16. She discusses how these changes enabled new consumer behaviors and led to the rise of widget-based apps, showcasing the importance of adapting to technological advancements in the app market.
"challenge it can be there have been some other apps which as you said did not hit number one but still really hit some traction and I want to talk about the different categories outside of social that..."
Olivia highlights the growing trend of AI integration in mobile apps, particularly in late 2022. She discusses how advancements in AI technology, like stable diffusion, allowed developers to create innovative user experiences, marking a significant shift in app capabilities and user engagement.
"that allowed for this another big Tech shift that became a trend in top apps was AI of course of course and that came as mostly in the fall when models like stable diffusion became available to fully ..."
This segment delves into the enduring popularity of anonymous social apps, with Olivia referencing Gas app as a prime example. She discusses the psychological factors driving user interest in anonymity and how these apps consistently capture attention across generations.
"which is anonymous social apps we see these pop up pretty consistently every year when I was a teenager it was like honesty box on Facebook and then ask FM and form spring gas app was of course probab..."
Olivia discusses the potential for founders to reinvent successful app concepts from the past, such as Yik Yak. She emphasizes the importance of understanding timeless human emotions and behaviors that can drive app success, suggesting that there is still room for innovation in familiar formats.
"this is a silly question but is that worth doing as in if you're if there's a Founder out there or potential founder should they just be combing through previous successful apps like a Yik Yak for exa..."
In this segment, Olivia explores the evolving landscape of app monetization, discussing the shift from traditional ad-based models to direct revenue generation through in-app purchases and subscriptions. She highlights successful examples like Lensa, illustrating how apps can achieve profitability early in their lifecycle.
"there's I mean Nikita himself has said this there's always going to be a question of um these apps that are based around kind of anonymous uh networks can you really build like a lasting social networ..."
Olivia reflects on the changing attitudes of consumers towards app payments, noting a growing willingness to spend money on apps and in-app purchases. She discusses how younger generations are more comfortable with online transactions, impacting the monetization strategies of new apps.
"oh absolutely I think it all comes down to what you as a Founder are wanting to build and I think the opportunity maybe has never been greater to build and monetize a mobile app quickly make a few mil..."
This segment draws parallels between app monetization and gaming strategies, particularly the concept of 'whales'—users who spend significantly more than average. Olivia discusses how understanding user behavior can inform effective monetization strategies for apps, emphasizing the importance of converting free users into paying customers.
"another really good example of this which was a number another number one from late 2022 they are an AI Avatar company and some of the external app data estimates say that they made you know upwards o..."
Olivia discusses the evolution of subscription models in consumer apps, highlighting the need for flexibility in pricing strategies. She examines how apps are adapting to market demands and consumer expectations, suggesting that innovative pricing can enhance user retention and revenue generation.
"long ago people were really resistant to even spending 99 cents on an app and I know there's a difference some of these apps are charging up front versus having in-app purchases versus monetizing in o..."
In this segment, Olivia Moore discusses the monetization strategies for apps, emphasizing the importance of acquiring a large base of free users and converting a small percentage into high-spending 'whales.' She highlights the challenges of charging for app downloads and the effectiveness of in-app purchases and subscriptions, using examples like Lensa and Tinder's pricing strategies.
"probably going to be free users or generate very minimal Revenue but then you'll have some people who spend hundreds if not thousands of dollars in in you know every month on your app and and it reall..."
Olivia explores the evolution of subscription models in consumer apps, noting how developers are adjusting pricing strategies to maximize revenue. She discusses the shift towards higher pricing tiers and the potential for B2B monetization, citing examples like Com's mental health offering that partners with insurers.
"are maybe the more classic for Consumer apps of how they monetize I wrote about this the other day but we had this first wave of consumer subscription apps that were all charging sixty dollars a year ..."
This segment delves into the concept of gamification in apps, where users are rewarded for healthy behaviors through partnerships with insurance companies. Olivia shares an example of an app that incentivizes users to complete workouts with rewards, highlighting the potential for apps to engage users without direct payments.
"because there's also you know the argument with dating apps which is that they don't have the the aligned incentives to actually want to match you because they want you on that forever so yeah that'll..."
Olivia discusses the success of widget and AI-based apps, emphasizing that being first to market isn't always necessary for success. She uses Lensa as a case study, explaining how its mobile-first approach and user-friendly design led to its rapid growth compared to earlier web-based competitors.
"idea I think we'll see more and more gamification of kind of good behavior as apps become more addictive sitting on Tick Tock and scrolling for hours we're starting to see the this rise of new Focus a..."
In this segment, Olivia reflects on how App Store data reveals consumer behavior and trends. She shares surprising examples of apps that surged in popularity due to real-world events, such as the 7-Eleven app during Slurpee Day and the NOAA app during Hurricane Ian, illustrating the connection between app usage and cultural moments.
"lensa is the perfect example of this right so there were at least I'm aware of two or three different web-based applications profile picture.ai and then Avatar AI as well which had come out first with..."
Looking ahead to 2023, Olivia highlights Temu, a new commerce app that gamifies shopping through group buying. She discusses the potential for invisible AI products that enhance user experience without being overt, drawing parallels to TikTok's algorithm-driven engagement and the importance of adapting to consumer interests.
"of the web-based Avatar products that did come out first and and have similar quality images but were just harder to use that's such a great Point even just the push notifications in the other cases t..."
In this segment, Olivia Moore discusses the concept of 'invisible AI' in apps like TikTok and Temu. She explains how these platforms utilize sophisticated algorithms to create personalized experiences that keep users engaged. The discussion highlights the importance of AI in making apps addictive and how it can evolve with user preferences over time.
"we've seen these AI first products all the Avatar and art apps but Tick Tock was actually one of the first and still best examples of invisible AI where the reason the product is so addictive is becau..."
Olivia Moore explores the challenges of virality in app development, particularly how some startups are limiting their own virality to ensure they can handle the influx of users. She shares insights on how TikTok's algorithm can lead to rapid user acquisition, but also the risks of not being prepared for that growth, emphasizing the need for a balance between reaching new users and retaining them.
"Tick Tock has been so sticky because you know I've heard people who start on Tick Tock and they listen to dancing videos but then all of a sudden Tick Tock picks up that they like power washing videos..."
In this segment, the conversation shifts to the addictive nature of apps like TikTok and the self-imposed limits users are setting to manage their usage. Olivia discusses how even popular figures are stepping back from TikTok due to its addictive qualities, and how this trend reflects a broader pushback against hyper-curated social media experiences.
"in this coming year yeah it also reminds me of something you've mentioned before which is that Tick Tock is so good that even users as well are kind of limiting themselves from the app I do this I don..."
Olivia Moore introduces the concept of vertical social networks, where the focus is on specific interests rather than broad social interaction. She uses examples like Strava and Goodreads to illustrate how these platforms foster community around shared activities, providing a healthier alternative to traditional social media.
"than ending up on a scrolling feed for hours at a time I'm trying to think of examples where they're does seem to be this healthy level of interaction between people one example that comes to mind is ..."
This segment highlights the rise of niche apps, such as those for tracking Squishmallows, which blend digital engagement with physical collecting. Olivia draws parallels to past trends like Beanie Babies, showcasing how modern technology enhances the experience of collecting and community interaction.
"saying it was like such a fun and rewarding way to both like Express their interests track their collection and then also browse the collections of other users like oh this person you know found this ..."
Olivia discusses how apps are evolving to enhance real-world relationships, using examples like Locket Widget. She emphasizes the importance of integrating technology into daily interactions to strengthen connections, illustrating how apps can facilitate meaningful engagement beyond the screen.
"question that's related to what we're discussing here which is just the interplay between digital and physical so something that's fascinating about something like a Strava is it's not just me on my p..."
In this segment, Olivia examines how platforms like TikTok are driving traffic to local businesses. She shares success stories of small businesses benefiting from viral food reviews, highlighting the potential for apps to influence physical consumer behavior and the importance of leveraging creator partnerships.
"relationships another Trend that we're seeing quite a lot of is apps and products and especially platforms like Tick Tock to be honest driving traffic and driving engagement towards real world busines..."
Olivia discusses the shift in app development trends, noting a decrease in U.S.-developed apps reaching the top charts and an increase in international apps gaining popularity. She analyzes the factors contributing to this change, including the rapid adaptation of global developers to emerging trends.
"capitalize on that platform something I want to ask you about before we close out is something you mentioned in your thread was the difference in geography and this is pretty front and center when you..."
Olivia explains how TikTok has democratized app virality, allowing apps like TravelBoast, which originated in Russia, to gain massive traction through user-generated content. This shift illustrates how social media can propel lesser-known apps into mainstream success.
"think there's a couple trends that are driving this one a lot of the number ones as we talked about this year played on themes like widgets and avatars and there's a lot of great International app Stu..."
The discussion highlights Subway Surfers, an app launched in 2012 that has maintained relevance over a decade. Olivia shares insights on its innovative strategies, including regular updates and strong social media presence, which have contributed to its continued success.
"exciting that's a great point because in the past it was really hard for an individual developer to have the budget or the connections to get the kind of traction we're seeing today but now that we ha..."
Olivia discusses how apps like Subway Surfers have adapted to changing user behaviors, particularly among Gen Z, who often engage with content in short bursts. This adaptation has allowed them to maintain user interest and drive downloads.
"App Store absolutely there's one that comes to mind that I've been fascinated with recently it's actually in the gaming category so it's an app called Subway Surfers that was first launched in 2012 ou..."
The conversation explores the implications of shortening attention spans on media consumption. Olivia and her co-host discuss how this trend affects app engagement and the potential for future content formats that cater to rapidly shifting user preferences.
"really smart moves to kind of stay top of mind for that decade they have this world tour strategy where the graphics and the location of the game changes every two weeks which is really fun they also ..."
Olivia shares her thoughts on developing an app focused on pet ownership, capitalizing on the growing trend of pet care among younger generations. She envisions a platform that allows users to showcase their pets creatively, tapping into the social sharing culture.
"think it's so interesting these examples where an app is used in ways that the developers didn't even intend yeah no and it's the downstream implications of it are also interesting in terms of what it..."
The discussion wraps up with reflections on the pet industry as a recession-proof market. Olivia and her co-host brainstorm potential app concepts that leverage the popularity of pets, emphasizing the importance of social sharing and community engagement in app development.
"because to your point pets have been taking off uh for years it's you know as some people say the recession-proof industry if you look at the pet industry growth relative to many other things like typ..."