Innovating in the mobile market - Andrew Bud, iProov

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Presented at the Israel Mobile Summit 2013
http://www.israelmobilesummit.com

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Innovating in the mobile market - Andrew Bud, iProov

  1. 1. Innovating in Mobile Lessons learned from a decade of mobile content Andrew Bud Global Chair, MEF Founder & CEO iProov Tel Aviv, 10th June 2013
  2. 2. A Dozen Years of Mobile Content • 1997 First ringtone services in Finland • 2000: Yourmobile.com creates global ringtone demand • 2001: First premium rate services in Sweden • 2003: Ringtone business explodes in Europe • 2004: $12bn industry; US off-portal begins, Crazy Frog ! • 2005: Crazy Frog scandals and No 1 hit • 2006: First Class Action suit in US • 2007: $35bn industry; iPhone launch • 2008: Apple App Store Launch • 2009: Android Market Launch • 2010: Angry Birds phenomenon
  3. 3. What did we learn? • Consumers define markets • Scalable Iteration discover markets • Simplicity drives markets • Greed destroys markets
  4. 4. Consumers Define Markets Cute intersection of two great industries Entertainment ($500bn) Mobile ($1000bn) How the suppliers saw it…….
  5. 5. Consumers Define Markets How the consumers saw it……. $35 billion
  6. 6. Consumers Define Markets WHY DID YOU PURCHASE ITEMS ON YOUR MOBILE PHONE? The market is changing…. MEF Global Consumer Survey 2013: 9,500 consumers in 10 countries
  7. 7. Scalable Iteration Discovers Markets Consumer response $$$$ 48 hour response to experiment results Content, pricing, promotion, design Scalable iteration created an industry
  8. 8. Simplicity Drives Markets • Six clicks from desire to purchase…. • …enabled by one-click billing • Make it simple, make it easy… • ….and charge for it Italian Mobile Content Market 0 100 200 300 400 500 600 700 800 900 1000 2001 2002 2003 2004 2005 2006 2007 Year Revenue(€m) Source: Politecnico di Milano Osservatorio Mobile Content & Internet
  9. 9. …but not too simple! Comfortable transaction complexity 0 10 20 30 40 50 60 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 Transaction value £$€ Optimumrelativecomplexity Too simple Too complicated Ringtone subscriptions Kids' In-app purchases Mobile content before operator billing
  10. 10. Greed Destroys Markets • This is what happened next…. • Some people made lots of money very fast even after the market declined • Destruction of consumer confidence was swift and fatal • UK, Italy, US, Indonesia, Brazil – retribution followed complicity • Is it about to happen again? Italian Mobile Content Market 0 100 200 300 400 500 600 700 800 900 1000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Revenue(€m) Subscription business model begins Bad practices emerge
  11. 11. MEF Global Privacy Report Consumer Trust & Confidence is a Key Issue
  12. 12. MEF Global Privacy Report Consumer Trust & Confidence is a Key Issue 33%
  13. 13. MEF Global Privacy Report Consumer Trust & Confidence is a Key Issue A near-miss: this time…. …but it’s not going away $ 00,000,000s Join us in solving this!
  14. 14. Lessons from Mobile Content Winners win because they: • Meet consumers’ desires • Make it super simple to transact • Scale by charging and promoting • Adapt and innovate fast • Don’t cheat the customers

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