Visualizing the COVID-19 Impact on App Popularity
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The COVID-19 Impact on App Popularity

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App popularity COVID-19 in North America

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The COVID-19 Impact on App Popularity

Pandemic-induced social isolation has altered the relationship consumers have with technology.

With the physical world now slowly receding, consumers are suddenly more reliant on apps for communication, shopping, staying healthy, and entertainment.

Today’s graphic pulls data from a new report by MoEngage and Apptopia, and it plots the winners and losers of the pandemic from the app world in North America.

Embracing the App Economy with Open Arms

Consumers are looking for different ways to manage their lives while in lockdown, and in some cases, apps could provide the perfect solution.

In fact, people spent 20% more time using apps in the first quarter of 2020 compared to 2019. During that time, consumers also spent over $23 billion in app stores—the largest spend per quarter recorded to date.

While consumers across the globe lean on apps to support them in times of crisis, what exactly are consumers in North America using?

Climbing to the Top

Given the sheer volume of people working remotely, it’s no surprise to see video chat and online conference apps experiencing explosive growth. In North America, these apps witnessed an astronomical 627% increase in downloads, and a 121% increase in daily active users (DAUs).

Video conferencing app Zoom expanded its worldwide user base by 300% in just under a month. Upwards of 500 participants can attend a meeting at any one time, hence why it has become a popular option for virtual conferences, festivals and even religious sermons. As we adapt to life indoors, the Zoom boom shows no signs of slowing, even despite the app’s recent data privacy and security scandal.

Slowing to a Standstill

Unfortunately, indoor living is not conducive to globetrotting. As travel and hospitality app downloads in North America decline by 12%, this is the harsh reality that the industry needs to come to terms with for the foreseeable future.

Interestingly, airlines in the U.S. did not see a reduction in app downloads until early March, which may be attributed to the later timing of the COVID-19 shutdowns as in comparison to other countries around the world.

In the short-term rentals space, Airbnb has experienced a drastic decline in bookings, and is adopting new cleaning protocols in an attempt to appease both hosts and guests. The tech company has since lowered its internal evaluation, from $31 billion to $26 billion, which could disrupt the company’s plan to go public in 2020.

Emerging Victorious

Because the largest social media networks already boast a significantly large audience, new downloads is not necessarily a metric that could make or break this cohort. Instead, DAUs are a much better indicator of success, and from what the report suggests, people have become more devoted to these platforms.

For U.S. adults, social media usage jumped from 20% of total mobile app usage in the early part of the year, to 25% in mid-March. In fact, between January and March, daily active users on Instagram and Facebook rose to 127 million and 195 million, respectively.

Measuring the Global Impact

When we look at the popularity of apps across different parts of the world, some interesting observations appear. First of all, healthcare apps in South East Asia are categorized as emerging—meaning they show promise, but have minimal active users.

App popularity COVID-19 Globally

Although DAUs of healthcare apps in South East Asia are declining, fascinatingly, there has been a 110% increase in spend on these apps during the outbreak. The report suggests that this could be attributed to the user base becoming more loyal as a result of trust-building advertising campaigns in this space.

Real estate is a sector seeing a simultaneous increase and decrease in users worldwide. In Middle-East Asia for instance, these apps are exploding in popularity, but in other parts of the world they are experiencing a slowdown. This could be due to restrictions in certain parts of the world slowly starting to lift.

An Unsung Hero

Technology is becoming an increasingly divisive topic. Data security scandals, the spread of false information, and its impact on mental health are just some of the reasons why technology’s role in society regularly comes into question.

However, it has allowed us to remain connected in a time of crisis, and has also been pivotal in facilitating the spread of reliable information during lockdown.

If anything, the pandemic has shown us how vulnerable we are without technology—and how instrumental apps are in keeping us busy, informed, and sane.

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Technology

How Big Tech Revenue and Profit Breaks Down, by Company

How do the big tech giants make their money? This series of graphics shows a breakdown of big tech revenue, using Q2 2022 income statements.

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In the media and public discourse, companies like Alphabet, Apple, and Microsoft are often lumped together into the same “Big Tech” category. After all, they constitute the world’s largest companies by market capitalization.

And because of this, it’s easy to assume they’re in direct competition with each other, fiercely battling for a bigger piece of the “Big Tech” pie. But while there is certainly competition between the world’s tech giants, it’s a lot less drastic than you might imagine.

This is apparent when you look into their various revenue streams, and this series of graphics by Truman Du provides a revenue breakdown of Alphabet, Amazon, Apple, and Microsoft.

How Big Tech Companies Generate Revenue

So how does each big tech firm make money? Let’s explore using data from each company’s June 2022 quarterly income statements.

Alphabet

breakdown of Alphabet's revenue streams and profit

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In Q2 2022, about 72% of Alphabet’s revenue came from search advertising. This makes sense considering Google and YouTube get a lot of eyeballs. Google dominates the search market—about 90% of all internet searches are done on Google platforms.

Amazon

breakdown of amazon's revenue streams and profit

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Perhaps unsurprisingly, Amazon’s biggest revenue driver is e-commerce. However, as the graphic above shows, the costs of e-commerce are so steep, that it actually reported a net loss in Q2 2022.

As it often is, Amazon Web Services (AWS) was the company’s main profit-earner this quarter.

Apple

breakdown of Apple's revenue streams and profit

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Apple’s biggest revenue driver is consumer electronics sales, particularly from the iPhone which accounts for nearly half of overall revenue. iPhones are particularly popular in the U.S., where they make up around 50% of smartphone sales across the country.

Besides devices, services like Apple Music, Apple Pay, and Apple TV+ also generate revenue for the company. But in Q2 2022, Apple’s services branch accounted for only 24% of the company’s overall revenue.

Microsoft

breakdown of Microsoft's revenue streams and profit

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Microsoft has a fairly even split between its various revenue sources, but similarly to Amazon its biggest revenue driver is its cloud services platform, Azure.

After AWS, Azure is the second largest cloud server in the world, capturing 21% of the global cloud infrastructure market.

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Animation: The Most Popular Websites by Web Traffic (1993-2022)

This video shows the evolution of the internet, highlighting the most popular websites from 1993 until 2022.

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ranking websites by page views 1993-2022

The Most Popular Websites Since 1993

Over the last three decades, the internet has grown at a mind-bending pace.

In 1993, there were fewer than 200 websites available on the World Wide Web. Fast forward to 2022, and that figure has grown to 2 billion.

This animated graphic by James Eagle provides a historical look at the evolution of the internet, showing the most popular websites over the years from 1993 to 2022.

The 90s to Early 2000s: Dial-Up Internet

It was possible to go on the proto-internet as early as the 1970s, but the more user-centric and widely accessible version we think of today didn’t really materialize until the early 1990s using dial-up modems.

Dial-up gave users access to the web through a modem that was connected to an active telephone line. There were several different portals in the 1990s for internet use, such as Prodigy and CompuServe, but AOL quickly became the most popular.

AOL held its top spot as the most visited website for nearly a decade. By June 2000, the online portal was getting over 400 million monthly visits. For context, there were about 413 million internet users around the world at that time.

RankWebsiteMonthly Visits (May 2000)
1AOL400,891,812
2Yahoo387,573,587
3MSN354,239,803
4eBay116,101,785
5Lycos116,064,930

But when broadband internet hit the market and made dial-up obsolete, AOL lost its footing, and a new website took the top spot—Yahoo.

The Mid 2000s: Yahoo vs. Google

Founded in 1994, Yahoo started off as a web directory that was originally called “Jerry and David’s Guide to the World Wide Web.”

When the company started to pick up steam, its name changed to Yahoo, which became a backronym that stands for “Yet Another Hierarchical Officious Oracle.”

Yahoo grew fast and by the early 2000s, it became the most popular website on the internet. It held its top spot for several years—by April 2004, Yahoo was receiving 5.6 billion monthly visits.

RankWebsiteMonthly Visits (April 2004)
1Yahoo5,658,032,268
2MSN1,838,700,057
3Google1,318,276,780
4AOL905,009,947
5eBay805,474,705

But Google was close on its heels. Founded in 1998, Google started out as a simpler and more efficient search engine, and the website quickly gained traction.

Funny enough, Google was actually Yahoo’s default search engine in the early 2000s until Yahoo dropped Google so it could use its own search engine technology in 2004.

For the next few years, Google and Yahoo competed fiercely, and both names took turns at the top of the most popular websites list. Then, in the 2010s, Yahoo’s trajectory started to head south after a series of missed opportunities and unsuccessful moves.

This cemented Google’s place at the top, and the website is still the most popular website as of January 2022.

The Late 2000s, Early 2010s: Social Media Enters the Chat

While Google has held its spot at the top for nearly two decades, it’s worth highlighting the emergence of social media platforms like YouTube and Facebook.

YouTube and Facebook certainly weren’t the first social media platforms to gain traction. MySpace had a successful run back in 2007—at one point, it was the third most popular website on the World Wide Web.

RankWebsiteMonthly Visits (Jan 2007)
1Google7,349,521,929
2Yahoo5,169,762,311
3MySpace1,276,515,128
4MSN1,259,467,102
5eBay957,928,554

But YouTube and Facebook marked a new era for social media platforms, partly because of their ​​impeccable timing. Both platforms entered the scene around the same time that smartphone innovations were turning the mobile phone industry on its head. The iPhone’s design, and the introduction of the App store in 2008, made it easier than ever to access the internet via your mobile device.

As of January 2022, YouTube and Facebook are still the second and third most visited websites on the internet.

The 2020s: Google is Now Synonymous With the Internet

Google is the leading search engine by far, making up about 90% of all web, mobile, and in-app searches.

What will the most popular websites be in a few years? Will Google continue to hold the top spot? There are no signs of the internet giant slowing down anytime soon, but if history has taught us anything, it’s that things change. And no one should get too comfortable at the top.

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