MMM: Microsoft's Partnership With ChatGPT Increase Downloads

Key Takeaways:

• Microsoft’s partnership with ChatGPT accelerated download and MAU growth on the Bing-AI and Microsoft Edge mobile apps

  • Downloads of the Bing-AI and Microsoft Edge mobile apps soared 650% and 21% MoM, respectively, in Feb’23 while downloads of Google and Google Chrome mobile apps fell sequentially, down 17% and 8% MoM, respectively

  • MAUs on Bing and Microsoft Edge grew 210% YoY(160% MoM) and 47% YoY ( 16% MoM), respectively, in Feb’23, with the rate of growth holding steady in Mar’23 month-to-date

• Despite the download boost for the Microsoft services, ChatGPT is still unlikely to disrupt the loyalty of Google’s and Google Chrome’s exceptionally sticky consumers, particularly with the addition of Google’s A.I. chatbot. Google apps have had sub- 3% churn on a consistent basis, with Chrome at just over 1%, compared to nearly 27% for MS Edge in Feb’23, per ST Consumer Intelligence

• Despite the slight decline in Chewy’s reported number of active customers in 4Q22 YoY, total sales rose mid-teens YoY, benefiting from increased spend from its most loyal Autoship consumers (comprise over 70% of total sales)

  • Although MAU growth has trended downward for Chewy over the past few months, growth as of 1Q23 has held steady with MAUs currently up ~1% QoQ per Sensor Tower estimates, with positive trends in both Jan’23 and Mar’23 MTD

• The high penetration of Autoship sales provides Chewy with a less volatile sales cadence and less correlation to fluctuations in download growth, as it is not as reliant on new customers like other retailers. Per ST estimates, downloads fell 33% and 16% in 2021 and 2022, respectively, while total reported sales rose 24% and 14%, respectively, over the same period

For more information, request the full report from reports@sensortower.com.