The App Economy in Thailand


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"The App Economy in Thailand"

by Moo Natavudh, CEO, Ookbee

Presented at ThailandSatellite 2013

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The App Economy in Thailand

  1. 1. The App Economy in ThailandEchelon 2013 Thailand Satellite
  2. 2. Hi Everyone!I’m Moo from OOKBEE
  3. 3. + Ookbee : the Latest Numbers Thailand’s #1 e-book store 90% market share TOP10Grossing Appson Thai App Store everydayfor the past 600 days 3,273,547 users 4.23M downloads 10,820 new users* every day * avg last 30 days Ookbee had delivered over 10 Million Books
  4. 4. Content Team Developers • Launched Jan 2011 / The team has grown from 5 to over 40 staff • We are at Month 28 and have been profitable since month 7 • Sep 2012 Ookbee raised US$2 million in funding from Shin Corporation • We made $400k in 2011 and around $3M in 2012 • We are now operating in Thailand,Vietnam and Malaysia with 3 morecountries this year. Ookbee Team
  5. 5. App Store Publishing
  6. 6. Estimated Number of AppsiPhone iPad Amazon WP Play BlackBerry As of Mar 2013 800k on iOS 750k on Play 200k on WP 100k on Win8
  7. 7. Key trends across stores, countries and categories iOS App Store maintained its strong lead in monetization, earning about 2.6x the app revenue of Google Play. Q1 2013 , Google Play has achieved higher growth rates than the iOS App Store for both downloads and revenues.
  8. 8. Local..Local..Local.. 10% local apps generate more than 50% Revenue
  9. 9. The overlap proportion of the top applications of the UnitedStates with other English speaking countries (Canada, Australiaand the UK) is significantly higher than it is with non-Englishspeaking countries.My Guess isThailand issomewhere here! maybe 15%
  10. 10. + Thailand: Monetization Case StudySep 2012: App Annie Thai UI Eng UI
  11. 11. Launching an App in South-east Asia?It’s now or never!
  12. 12. Top Countries – Downloads and RevenuesThailand is among theglobal top 15 Mobile apps markets the only country inSEA only after China, Japanand S. Korea in Asia Based on App Annie Worldwide Total Category, Q3 2012
  13. 13. Fastest Revenue Growth Countries - All Categories(Jan-Sep 12) Growth is higher since the base is smaller..... Here we are at#3!! Hooray!! Here too! #9 Based on App Annie, Top 25 Grossing countries of 2012 Sep, comparing Jan-Sep Growth rate
  14. 14. Fastest Revenue Growth countries for Games Based on App Annie, Game Category, comparing Jan-June 12 Growth rate Fastest RevenueGrowth in theworld #2 onGoogle Play
  15. 15. Fastest Download Growth Countries for GamesBased on App Annie, Game Category, comparing Jan-June 12 Growth rate For Both iOS and Google Play, 4 out of 5 Fastest Revenue Growth Countries are in SEA
  16. 16. Thai App Store VS The World•  in the US, Based on numbers given by Distimo, about 80,000will get you into the top 10. Huge numbers. •  in Japan, it’s 20,000 a day to be in Top 10 and 60,000 a dayto be at #1 Top Free Charts •  in Thailand, from my personal experience, it’s only take10,000 a day to be #1 in Top Free already
  17. 17. + Case Study: Ookbee User and Application Download* It took Kobo 2 years to reach 5M users (Globally) before Rakuten acquired it for $315 Million in Dec 2011
** Ookbee 2.9M users in 2 years is only in Thailand and SEA (Locally) / Our penetration rate is way higher The 1st million took 13 months The 2nd million took 6 months The 3rd million took less than 5 months The 4rd million will take less than 4 months
  18. 18. Successful Publishingit will take Ookbee 4 Months for our next 1 Million Everybody remembers the success stories of applications thatgathered millions of users within a couple of days. Draw Something did it in nine days. However, with the right strategy it is possible to gain one millionusers much faster. Naver, one of the most successful Asian publishers, launched five applications atthe end of November, all of which quickly became the most popular applications in many Asiancountries. Line Pop, the most popular of those five, generated 1.75 million downloads within the firstthree days of its launch. Moreover, Line Pop also generated one million in estimated revenue withinthe first 12 days. (Line has over 80M users worldwide and over 10M users in Thailand)
  19. 19. Launching App in Thai MarketMy Personal Experience
  20. 20. Thai Market - Real NumberLet’s see what’s like when you launch an appspecifically for Thai market only•  just another app in App Store •  my Good App •  my Very Good AppJust Another App
  21. 21. + Ookbee App EcoOut of 200K Apps, Weare No.1-5 Top Grossingfor the past 500 Days!!Beats Zinio and allpopular games! AngryBird? 50+ of our 150+ apps onTop list!
  22. 22. Max around 500 downloads/day when launch.. then average around 50 per app per day Total just around 36K download in 24 months From almost 150 Apps, we have around 120 “Just-Another-App” Just Another App in App Store :(*Still 36K x 120 = 4.32 M, even if same user download severalapps, I expected we have generated over a million users fromthese just another apps
  23. 23. My Good App :)Max around 900 downloads/day when launch.. then average around 120 per app per day Total around 90K download in 24 months From almost 150 Apps, we have around 25 “Good App”
  24. 24. My Very Good App :)Max around 6,000downloads/day when launch.. then average around 2,000 per app per day Total around 1.5M download in 24 months From almost 150 Apps, we have 2 “Very Good App” *My Number was started back in 2011. I expect that itwould be 15,000 per day easily first day when launchednow for a very good app.
  25. 25. Let’s make some money!App Monetization
  26. 26. App Monetization•  Paid App Simple game ex. Angry Bird? •  In-App Purchase (ex. Social Game/Content - ex. HayDay, Poker) * Ookbee is here •  Apple/Google •  Mobile •  Other ( Ex. In our case Credit Card/ Cash via 7-11) •  Advertisement (Simple Game/ TV-Radio Streaming/News)
  27. 27. In-App Purchase
  28. 28. + Other Payment Channel Options in ThailandApple/Play Credit Card (online) 
or Cash at 7-11 Pay with Mobile phone bill 
(Pre-paid and Post-Paid)
  29. 29. Ad Revenue•  Free App Ad Revenue simulation. •  Impression : 1,000,000 •  CTR 1% •  CPC 4 THB •  Ad revenue: 40,000 THB •  How long to get 1M impression? A very good app maybeseveral days. Good App maybe a month. Just another appmaybe 6-12 months.
  30. 30. Exactly! How Much Money Can I Make?(in Thailand and the rest of the world)
  31. 31. How big is the whole market?All markets combined as of Nov 201215M USD a day for iOS3.5M USD a day for Google Play Japan + S.Korea + US 70% Game contribute 90% in Japan And 95% in S. Korea US + Japan = 50% China is growing fast and 90% is from game
  32. 32. US Market•  If you make it to the top 10 US TopGrossing Apps : around $70K ~ 2MTHB per day •  around $200K per day near the top
  33. 33. Slide from Samurai International Japan Japanese MarketGame Publishers like DeNAand GREE each have over ahundred of apps on eachstore (many on the top list) Game publishers are the most effectivemonetizers. Not only in Japan butthroughout the world. It’ll be no surpriseto industry insiders that 9 of the top 10publishers by monthly revenues on iOS andGoogle Play are game publishers. In fact,the only exceptions to that rule are Appleon iOS and NAVER on Google Play (Makerof popular social networking app LINE).
  34. 34. In terms of revenue of Top Grossing App: As of Jan 2013: iOS in-app Purchase Top 1st -5th apps “each” gets150K-300K THB per day. (5-10KUSD) (We have 2 on the list) The number are growing from 75K - 150K per day same period last year. How do we know? Been there done that..still there. From my source, the number are almost the same for both iPad/iPhone inThailand Thai MarketOur two best apps at #1 and #4
  35. 35. The Supercell Story•  October 2012: Supercell pegged its daily revenues at$500,000•  The growth curve steepens: With daily revenue now at$2.4 million, representing growth of almost 400 percent.•  They have already surpassed its 2012 revenues of $100million, with $179 million in first quarter 2013.•  Supercell is already at a run-rate of more than $800million for 2013 and could reach $1 billion.•  They only have 2 games on one platform (iOS).And that’s what I think good companies are making on these things until:
  36. 36. Wanna try?Im not an expert but here aresome tips from my personalexperience.
  37. 37. Speed Wins in hiring, development, design, releases, biz dev Be Agile and worry about scaling later
  38. 38. Outsource what you can Always Outsource Complexity
  39. 39. To all startups out there “Respect Everyone, Fear No One”
  40. 40. And please don’t forget to “Enjoy the Ride” Thank you