The State of the App Economy
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The State of the App Economy

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Flurry CEO Simon Khalaf presents growth trends in the mobile first economy on iOS and Android smartphones and tablets. Trends include time spent across: TV, Web and apps; time spent per app category ...

Flurry CEO Simon Khalaf presents growth trends in the mobile first economy on iOS and Android smartphones and tablets. Trends include time spent across: TV, Web and apps; time spent per app category and revenue growth. Simon also debunks investor skepticism about continued growth potential.

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The State of the App Economy Presentation Transcript

  • 1. DECEMBER 2012The State of the App EconomySimon Khalaf, President & CEO @FlurryMobile @SimonKhalaf @AppNationConf
  • 2. One Trillion Events Per MonthWW iOS & Android App Events Measured by Flurry, Billions1,1001,000 900 800 700 600 500 400 300 200 100 - May 08ul 08 ep 08 08 09 09 09ul 09 ep 09 09 10 10 10ul 10 ep 10 10 11 ar 11 11ul 11 ep 11 11 12 12 12ul 12 ep 12 12 J S Nov Jan Mar May J S Nov Jan Mar May J S Nov Jan M May J S Nov Jan Mar May J S Nov Source: Flurry Analytics, May 2008 – November 2012
  • 3. Apps Pass Web, Challenge TVU.S. Web vs. Mobile App vs. TV Consumption, Minutes per Day 180 160 140 162 168 168 120 100 127 80 94 60 70 66 72 70 40 20 - Dec 2010 Dec 2011 Dec 2012 Web Browsing Mobile Applications Television Sources: comScore, Alexa, U.S. Bureau of Labor Statistics, Flurry Analytics
  • 4. Beyond GamingWW iOS & Android Smart Device Time Spent per App Category Lifestyle 1% Health & Fitness 1% Productivity 2% Other News 2% 5% Utilities 10% Games 43% Entertainment 10% Social Networking 26% Source: Flurry Analytics, November 2012
  • 5. Mobile Revenue Growth 20Billions 18 16 14 12 10 8 6 4 2 0 2008 2009 2010 2011 2012 Virtual Goods Advertising Source: eMarketer, Mary Meeker (KPCB)
  • 6. Investor Skepticism1. It’s hard to make money in mobile and apps2. It’s expensive to scale an app business3. A minority is capturing the majority of revenue
  • 7. Investor Skepticism1. It’s hard to make money in mobile and apps2. It’s expensive to scale an app business3. A minority is capturing the majority of revenue
  • 8. Mobile Revenue Growth US Display Advertising and Virtual Goods RevenueBillions 14 12 10 8 6 4 2 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Web (Browsing) Mobile Apps Source: eMarketer, Flurry, Comscore
  • 9. Investor Skepticism1. It’s hard to make money in mobile and apps2. It’s expensive to scale an app business3. A minority is capturing the majority of revenue
  • 10. App Traffic AcquisitionCost per Visit, Apps versus The Web 63 22 Web Apps Source: eMarketer, Flurry
  • 11. Investor Skepticism1. It’s hard to make money in mobile and apps2. It’s expensive to scale an app business3. A minority is capturing the majority of revenue
  • 12. Revenue DistributionNumber of Companies Controlling 66% of Revenue (Ads and Apps) 248 5 Web Apps Source: eMarketer, Flurry
  • 13. Thank you! @FlurryMobile @SimonKhalaf @AppNationConf