Transcript of "GMV Global Mobile Vision 2012 Seoul"
Global Mobile Vision 2012How to enter the European Mobile Market CEO & Founder Rumble Media David An Executive MBA HSG, M.Sc. November 2012
About Rumble Media Rumble Media GmbH CEO: David An 안종혁 Foundation: 2007 Major Shareholder: Holtzbrinck HQ in Karlsruhe, Germany Number of employees: 11 Mobile Portal Publishing Business Solutions Online Gaming Mobile Gaming Mobile SaaS Reseller 2
Agenda - European Mobile Market - Current Challenges - Potential Growth Strategies - Solution - Conclusion 3
How big is the market Largest 6 European Countries Population Population 3G 3G (Mio) % Subscriber % (Mio) Germany 82 23% 38 18% France 61 17% 30 14% Great 62 18% 42 20% Britain Italy 61 17% 44 20% Poland 39 11% 28 13% Spain 47 13% 33 15% Total 351 215 The top 6 countries make up 350 million inhabitants which is about ~50% of total Europe and 70% of EU (500 M).Source: Morgan Stanley, Wikipedia 5
Statistics – German Market 82 Million total 38 Million Mobile 3G Subscriber 26 Million Smartphone Users Germany has a ~ 68% smartphone penetration.Source: Bitcom 6
OS Penetration Germany Incumbent App StoresIn Germany, Android has become market leader. There are only 3 significant appstoresSource: Madvertise 7
New Smartphone Sales Symbian 5% RIM 6% iOS 14% Windows 5% Android 68% Bada 2% Other 0% Currently, in the top 6 European countries 2/3 of every newly sold smartphone is an Android phone.Source: Kantar worldpanel 8
Revenue Models Germany 0.6% 13% 19% 46% Android apps are more advertising driven with only 0.6% pure paid apps and 13% in- app-purchase apps. Apple iOS paid apps still have 20% share.Source: xyologic 9
New Smartphone Sales A game on Android will make only 24% of the iOS version. Amazon is ~ 89% Lower payment conversion for Android in Europe is due to the lack of Google Wallet accounts → which Google is working on of course.Source: Madvertise 11
Current Challenge: Customer Acquisition Costs $2.50 $2.00 $2.00 $1.50 $1.00 $0.75 $0.50 $0.00 According to Pocketgamer user acquisition costs have recently jumped from 0.75$ to 2$. This is due to incumbent players currently buying themselves at a loss into the future (→ Zynga, Gree, DeNA) 12
Current CPI Levels are not sustainable Cost per User (Cost per install) $2 $1.86 $0.75 $0.75 Conversion Rate 5% 5% 5% 5% Break-Even $40 $37 $15 $15 Target Margin 30% 30% 30% 50% Life-Time Value (LTV) Target $57 $53 $21 $30 Buying users at 2$ equals to burning money. Assuming a low target margin of 30%, 0.75$ CPI seems feasible. But the question is: Can you get the right audience ? 13
Overview of Growth Strategies1.Viral Out of product itself (Kakaotalk, Anipang) Social media (Social graph) Free2. Organic SEO (Google) PR (Public Relations) Appstore Relations (Have good relations)3. Advertising Networks CPM (Cost per Mille) CPC (Cost per Click) CPI (Cost per Install)4. Special Paid Networks Pay Incentivized (Tapjoy, Sponsorpay) Free App a Day (FAAD) Chart Booster 5. M&A 6. Partnerships Share Channelling (LTV) 15
Paid Advertising - CPC Some real numbers! Clickrate 2.5% CPC 20cents 1 Million Banner Impressions 1 Million x 2.5% x .2€ = 5,000 Euro → 25,000 Clicks 16
Paid Advertising – Facebook Ads CPI Advertise in the timeline - high CTR - good targeting - however high costs - ~1 $ CPI In addition: - use social graph features like requests, challenges, invitations, score API, open graph 17
M&A Most deals were bought at a high premium: - Zynga bought OMGPOP for $ 180 - 210 Million → 6$ / user - Gree bought Pokelabo ($7m revenues $2m profit 2011) for $170m by Gree 25 Price/Sales and 85 Price/Earnings multiple 18
In addition, build your own distribution eco-system Eco-system approach (channeling) forces you to build a good monetizing game right from from scratch and build long-term partnerships. You need an external solution to manage all the tracking and analytics. 19
First step into the right direction TinyCo shares up to 75% of realized revenues (at least 30% needed) Incremental revenues for app publishers Drawbacks: • Limited to apps • SDK for app publishers needed • No detailed reporting 21
Mobile PS is a solution that supports your eco-system Game Publishers Build a longterm global network of affiliate partners Dont waste marketing dollars & ad network fees Flexibility to mix different revenue models 22
Conclusion - Dont inflate your business plan on Android - Control your conversion funnel at any time - Public Relations builds awareness & word-of-mouth - Dont outspend your competition - Hire Managers with cultural empathy - Build a long-term distribution network & ecosystem - Outsource solutions which are not a core competence - Use Mobile PS as Software-as-a-service 25
Any questions? Please visit our website for further information www.mobile-ps.com email@example.com 26
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