1. Trends in Mobile &
The Impact on Advertising
Chi-Hua Chien
Partner, Kleiner Perkins Caufield & Byers

2. KPCB Overview
540 investments 300,000 jobs 15 Funds
over 37 years created since 1972
> $100B of > $350B of total
175 IPOs market cap
annual revenue

3. Today

4. Internet vs. Mobile
4,000
PC Internet Users Mobile Phone Users
Millions of Active Users
3,000
2,000
1,000
0
2001 2002 2003 2004 2005 2006 2007 2008

5. Powerful Trends

6. Powerful Trends

7. Powerful Trends

8. Powerful Trends

9. Powerful Trends

10. Powerful Trends

11. iFund

12. iFund
$100,000,000

13. So How’s It Going?

14. iPod Became Ubiquitous

15. iPod Became Ubiquitous
1.00
iPod Sales
Millions of Devices Sold
0.75
0.50
0.25
0
0 1 2 3 4 5 6 7
Quarters after Launch
Source: Apple Inc. Public Filings & Announcements

16. ...But iPhone Dwarfs iPod

17. ...But iPhone Dwarfs iPod
20
iPod Sales iPhone Sales
Millions of Devices Sold
15
10
5
0 1 2 3 4 5 6 7
Quarters after Launch
Source: Apple Inc. Public Filings & Announcements

18. iPhone is Changing Behavior

19. iPhone is Changing Behavior
US Market iPhone
85%
% of US Mobile Subscribers
74%
70%
59%
50%
31%
13%
9%
6% 7%
5% 4%
Browsing News Web Search Mobile Video Social Networks Music Games
Sources: M:Metrics, 1/31/2008 Survey of U.S. mobile subscribers, n = 31,389 and KPCB estimates (games)

20. iTunes Is a Juggernaut...

21. iTunes Is a Juggernaut...
400
iTunes Purchases
Millions of Downloads
300
200
100
0
0 100 200 300 400 500 600 700
Days after Launch
Source: Apple Inc. Public Filings & Announcements

22. ...But AppStore Blows it Away

23. ...But AppStore Blows it Away
800
iTunes AppStore
Millions of Downloads
600
400
200
0 30 60 90 120 150 180 210 240
Days after Launch
Source: Apple Inc. Public Filings & Announcements

24. Mobile Browser Market Share
iPhone ~50% of US Usage
iPhone RIM Windows Mobile Palm Android Other
Source: AdMob Inc.; March 2009

25. 3
Ways
Mobile Will Change
Your Business

26. 1 Context Over Content

27. 1 Context Over Content
The Phone Now Knows....

28. 2 Utility Not Interruption

29. 2 Utility Not Interruption

30. 2 Utility Not Interruption

31. Perpetual Personalization
3
(aka Hyper-Fragmentation)

32. iFund Progress Report
Proposals Reviewed > 3300
Companies Met > 250
Actively Engaged >5
Funded 5

33. iFunded Companies

34. Q&A
Chi-Hua Chien
cchien@kpcb.com