5 Steps for Mobile App Competitor Analysis

Here’s what you’ll learn:

• Find Competitors: Identify direct and indirect competitors by analyzing app store rankings, user reviews, and shared audience.

• Compare Features: Examine app features, user experience, performance, and monetization strategies.

• Study ASO Tactics: Analyze keywords, descriptions, and visual content like screenshots and videos.

• Review Pricing Models: Understand free, freemium, paid, and paymium models, plus ad and subscription strategies.

• Monitor the Market: Use tools to track rankings, updates, and user sentiment for ongoing improvements.

Quick Comparison Table

Start with these steps to refine your app strategy, attract users, and stay competitive.

How to do app competitor analysis with App Radar?

Step 1: Find Your Competitors

Identifying your competitors is a crucial first step in shaping a strong mobile app strategy.

Direct vs. Indirect Competitors

Knowing the difference between direct and indirect competitors helps you better understand your market. Direct competitors are those offering similar features while targeting the same audience. For example, Uber and Lyft both compete directly in the ride-sharing industry. Indirect competitors, on the other hand, address the same problem but in a different way. For instance, Uber indirectly competes with public transportation by meeting the broader need for urban mobility.

When analyzing your competition, focus on these key aspects:

• Main features and functionality

• Shared target audience

• Core value proposition

• Market positioning

App Store Ranking Research

A great starting point for competitor research is examining app store rankings and categories. Look at both free and paid apps within your category to get a full picture of the competitive landscape. Tools for App Store Optimization (ASO) can provide detailed insights, though their costs vary widely, from free options to premium tools priced at up to $2,000 per month.

Here’s what to analyze:

• Top charts in your app category

• Keyword rankings for relevant search terms

• Suggested similar apps

• Google Play Store tags

• Apps featured in curated collections

"Identify these players easily with app store market research. Find your app's category on the relevant app store(s) and make note of the top 10 free apps as well as the top 10 paid apps in that category."

Once you’ve identified key competitors, dive deeper by examining user reviews.

Review Analysis

User reviews are a goldmine of information about your competitors. Daniel Lipton, a recognized Product Management expert, explains: "An analysis of your competitors' app store reviews can provide valuable insight into what your potential customers value, enabling you to define your positioning and strengthen your product offering."

When reviewing competitor feedback, pay close attention to:

• Common user complaints or pain points

• Features users frequently request

• Positive feedback patterns that highlight what users love

• Trends in user sentiment over time

• How features compare across different apps

These insights can help you refine your strategy and deliver a product that stands out in a crowded market.

Step 2: Compare Features and Performance

Now that you’ve identified competitors, it's time to dive into comparing their features and performance. After reviewing rankings and customer feedback, the goal is to understand how their offerings create value for users.

Feature Comparison Chart

A feature comparison chart can help you evaluate competitor apps more systematically. David Hunter, Founder of Local Falcon, shares a valuable tip:

"A competitor's website is the first stop, but it's not the only place to look. I dig into customer reviews and FAQs because they often reveal details that aren't obvious on the main site".

Here’s what to focus on when comparing key attributes:

Performance is especially critical. Research shows that 52% of users are less likely to engage with a brand after experiencing poor mobile performance. Pay close attention to metrics like loading times, resource consumption, network efficiency, and app stability.

AI and Custom Features

When it comes to AI-powered features, assess the technical depth and personalization options offered by competitors. Here’s what to look for:

Technical Implementation

• Machine learning algorithms

• Natural language processing (NLP)

• Predictive analytics

• Automated decision-making systems

Personalization Options

• Learning user preferences

• Adaptive interfaces with tailored content

• Behavioral pattern analysis

For instance, App Radar integrates AI to provide automated competitor tracking, offering live keyword search results and real-time monitoring of top charts.

"To stay ahead of the competition, you don't just need to innovate; you need to understand where others excel and where they fall short".

These comparisons will help you refine your app’s design and functionality. By focusing on performance and leveraging AI effectively, you can carve out a strategic advantage in a competitive market.

Step 3: Study ASO Tactics

Take a close look at the App Store Optimization (ASO) strategies your competitors use to increase visibility and drive conversions.

Keyword and Description Analysis

Understanding how competitors use keywords can help refine your app's rankings. Pay attention to:

• App titles and subtitles: How they incorporate primary and secondary keywords.

• Description content: Highlighted features, benefits, and calls-to-action.

• Keyword field optimization: Targeted terms and localization strategies.

• Metadata updates: How frequently competitors refresh their metadata.

Below is a breakdown of key ASO elements to focus on:

"Creative assets evaluation is in fact the most important part of our ASO competitor analysis. It has the largest scope and yields the most useful information. It can be incredibly fun, but at the same time frustratingly difficult".

Visual Content Review

Visual assets play a big role in conversion rates. By studying competitors' designs, you can identify trends and opportunities to stand out.

Screenshot Analysis

• How features are presented and in what order.

• Clarity of the value proposition.

• Consistency in design elements.

• Use of localized imagery and text.

Video Preview Assessment

• Effectiveness of the opening hook.

• Flow of feature demonstrations.

• Placement of calls-to-action.

• Optimization of video length for engagement.

User Feedback Patterns

Competitor reviews can reveal what users love and where they face challenges. It’s worth noting that 93% of consumers rely on ratings and reviews when deciding to download an app. Modern sentiment analysis tools achieve over 93% accuracy in interpreting user feedback, making them invaluable for this process.

When analyzing reviews, focus on these areas:

• Sentiment Trends: Look at overall rating patterns and shifts.

• Feature Requests: Identify commonly requested functionalities.

• Technical Issues: Track bugs and how quickly they’re resolved.

• Update Responses: Observe how competitors handle feedback and address concerns.

"App Radar's Rating & Review Management feature provides a quick and clear view of how our ratings are evolving, which helps us track performance across updates. It's valuable for marketing and customer care, as we can easily monitor and respond to user feedback. This feedback loop is essential for our product team to understand user sentiment and make informed decisions."

Next, dive into how pricing and revenue strategies set competitors apart.

Step 4: Review Pricing and Revenue Models

When analyzing how competitors monetize their apps, it’s worth noting that 95% of iOS apps and 97% of Android apps are free. This highlights how important it is to choose a pricing model that balances accessibility with revenue generation.

Price Point Analysis

Mobile apps typically follow one of four main pricing models. Here’s a breakdown:

To determine the best pricing approach, focus on key metrics like:

• Average Revenue Per User (ARPU)

• Customer Lifetime Value (CLV)

• Conversion rates from free to paid users

• Tiered pricing for various features

"An app pricing model is how you monetize active users. There are many ways to go about it and many factors to consider to achieve your business goals. It needs to be affordable for users, built on a sustainable financial model, take competitor pricing into account, and provide a higher perceived value than its cost." - Nicolas Tissier, Co-founder & CPO @ Purchasely

Once you’ve chosen a pricing model, it’s time to look at how it translates into ad and subscription strategies.

Ad and Subscription Review

Subscriptions have become a dominant force in app revenue, accounting for 82% of non-gaming app revenue. Meanwhile, in-app ad spending hit an impressive $201 billion in 2021.

Subscription Analysis Tips:

• Review how competitors structure their subscription tiers and distribute features.

• Keep an eye on promotional campaigns and discounts.

• Study retention strategies to minimize churn.

• Tailor pricing to meet the needs of different market segments.

A great example of subscription success is Spotify, which boasts a 46% upgrade rate from free to premium users. This highlights the effectiveness of a well-executed freemium model.

Ad Strategy Evaluation:

In-app ads can also be highly effective, performing 11.4 times better than mobile website banner ads. To refine your ad strategy, analyze competitors’ approaches to:

• Ad placement and frequency

• Formats like native, interstitial, and rewarded ads

• How ads integrate into the overall user experience

• Striking the right balance between ad revenue and user satisfaction

"The golden rule is that those small iterations are what you want to do once you've found a new concept that works. Then, you want to iterate that to the point where they're even better. Then at some point, you want to throw it away again to start with something new." - Patrik Wilkens, Vice President of Digital Media, Azerion

Some apps successfully combine multiple revenue models. For instance, Minecraft employs a hybrid approach, charging $6.99 for the initial download and $3.99 per month for multiplayer access. This strategy effectively integrates different revenue streams to maximize profitability.

Step 5: Set Up Regular Market Monitoring

Keeping a close eye on competitors and industry trends is essential when you're navigating a market with 4.41 million apps. Staying ahead means making monitoring a routine part of your strategy.

Tracking Tools Setup

To simplify the process, use tools designed for specific monitoring needs. Here’s a quick rundown:

Market Change Detection

With smartphone users spending 5–6 hours a day on their devices, the app market evolves at lightning speed. To keep up, monitor daily for shifts in rankings, feature rollouts, pricing updates, and new campaigns. On a monthly basis, review broader trends like customer sentiment, revenue changes, and the emergence of new competitors.

A standout example of effective market monitoring is Binance. By actively tracking market opportunities and leveraging tools like localized product pages and optimized creatives, they achieved an astounding 95,000% growth in app installs. This kind of insight-driven agility can make all the difference.

Response Planning

Use the data you gather to craft a quick and effective response plan. Here’s how:

• Set immediate triggers for action, such as competitor price cuts, major feature launches, or noticeable user migration.

• Focus on strategic adjustments like improving features, fine-tuning pricing, enhancing marketing efforts, refining user experience, pushing regular updates, and exploring new markets.

Given that users interact with an average of 10 apps daily and 30 apps monthly, staying proactive is critical. Monitor key metrics daily and review broader trends quarterly to ensure you're always a step ahead.

Conclusion: Main Points to Remember

After diving into the key steps of competitor analysis, let’s pull everything together. In a fast-moving market where over 20,000 new apps launch every month, understanding your competition is crucial. Comprehensive research not only boosts your app’s chances of success but also uncovers untapped opportunities and helps you strategically position yourself against both established competitors and emerging players.

A well-rounded, data-driven competitor analysis focuses on three main areas:

These areas highlight the importance of staying adaptable. From identifying competitors to continuously monitoring their moves, every step plays a role in shaping a winning strategy. As the market shifts, your analysis must evolve too, keeping your app ahead of the curve through regular updates and adjustments.

FAQs

What’s the best way to distinguish between direct and indirect competitors in the mobile app market?

To tell direct competitors apart from indirect competitors in the mobile app market, it's essential to understand their core differences. Direct competitors are apps that cater to the same audience and tackle the exact same problem - for instance, two ride-sharing apps vying for the same users. Indirect competitors, however, meet similar customer needs but in alternative ways, like traditional taxi services or public transportation apps offering a different solution to mobility.

To pinpoint these competitors, dive into market trends, examine user behavior, and assess app performance metrics. This kind of analysis helps clarify your market position and refine strategies to stand out. Recognizing both types of competitors allows you to spot opportunities and address gaps more effectively.

What are the best tools and strategies for tracking market trends and competitor updates in the mobile app industry?

To stay competitive in the mobile app industry, it’s crucial to leverage the right tools and strategies to keep an eye on market trends and competitor activity. One standout tool is AppTweak, which helps you monitor app performance, analyze competitors, and spot emerging trends. It offers detailed insights into app rankings, keyword strategies, and user acquisition tactics, enabling developers to make informed, data-backed decisions.

Other analytics platforms, like Flurry Analytics and Firebase, are equally valuable. They provide real-time data on user behavior, engagement, and retention. This information allows you to respond swiftly to market shifts and competitor moves. Pairing these tools with consistent practices - such as reviewing app store rankings and analyzing user feedback - can help you create a well-rounded strategy for tracking competitors and staying ahead in the market.

How can reviewing competitor app feedback improve my app's features and user experience?

Analyzing user reviews of competitor apps can reveal key insights that help refine your app's features and improve the overall experience. By diving into what users appreciate or find frustrating about similar apps, you can uncover opportunities to fill gaps or enhance features. For instance, if many users point out a missing feature in a competitor's app, incorporating that functionality into your app could draw their attention.

These reviews also highlight broader market trends and user expectations, giving you a clearer picture of what people genuinely want. This strategy not only helps your app stand out but also boosts user satisfaction and loyalty by prioritizing a more user-focused design.

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