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Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
Day2 1330 cook_new
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Day2 1330 cook_new

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  • 1. Mobile Monetization October 2011Confidential –CONFIDENTIAL © 2011 Not for Distribution 1
  • 2. © 2011 CONFIDENTIAL 2
  • 3. Strong Monetization © 2011 CONFIDENTIAL 3
  • 4. © 2011 CONFIDENTIAL 4
  • 5. Mobile is 44% of DAU. What Percent of Revenue? Android has 60% more DAU than iPhone. Signing Up Users 2:1 vs. iPhone © 2011 CONFIDENTIAL 5
  • 6. The myYearbook User is Addicted to Mobile © 2011 CONFIDENTIAL 6
  • 7. Majority of Activity Will Soon Be Mobile• Mobile now accounts for over 47% of all logins, up from virtually 0 in the first half of 2010. Over 60K installs per day across our network of apps. © 2011 CONFIDENTIAL 7
  • 8. Mobile Users Are Even More Engaged• Android and iPhone users visit for shorter periods of time, but much more often, resulting in more daily time spent per user than on the web – over 20 years’ worth of minutes on Android alone, every day! © 2011 CONFIDENTIAL 8
  • 9. Why Are They So Engaged?• Cross-platform games facilitate social discovery anytime, anywhere• Activity of the always-on mobile user helps drive engagement and monetization on the web © 2011 CONFIDENTIAL 9
  • 10. Mobile as a New User Acquisition Stream• 1 out of every 4 myYearbook registrations comes via mobile apps – And mobile signups are significantly less likely to churn!• In the end, about 1 out of every 3 newly engaged myYearbook users found us via the App Store or Android Market• We expect this proportion to continue growing as smartphone and tablet penetration increases in our target demographic © 2011 CONFIDENTIAL 10
  • 11. The Catch What’s a mobile user worth?About 15% of a web user, in terms of monthly ARPU WHY? © 2011 CONFIDENTIAL 11
  • 12. Mobile Display Ad Market Isn’t There Yet Advertisers Are Spending Like It’s 1997 © 2011 CONFIDENTIAL 12
  • 13. Plenty of Smart People Trying to Crack the Nut © 2011 CONFIDENTIAL 13
  • 14. So How Are Mobile Game Publishers Making Money?• In-App Purchases, Paid Apps, Advertising Up to $10.9 million last $9.4 million last quarter quarter $57 million last quarter $5.6 million last quarter $16 million last quarter Source: http://www.insidemobileapps.com/2011/08/08/quarterly-earnings-2q-1q-mobile-gaming/ © 2011 CONFIDENTIAL 14
  • 15. Source: http://techcrunch.com/2011/10/18/mary-meekers-2011-presentation-on-internet-trends-slides© 2011 CONFIDENTIAL 15
  • 16. In-App Purchases Increasingly Outperforming Paid Apps• More than 65% of iOS app revenue attributed to Freemium games Source: http://blog.flurry.com/bid/65656/Free-to-play-Revenue-Overtakes-Premium-Revenue-in-the-App-Store © 2011 CONFIDENTIAL 16
  • 17. Over Half of Top Grossing iOS Games Are Freemium Graphic showing games with in-app purchases © 2011 CONFIDENTIAL 17
  • 18. Taking Synchronous Multiplayer to Mobile Synchronous Gaming Engine Acquired Games 3M+ installs• Acquisition of Flock Multiplayer Engine paves the way for suite of synchronous 1.5M+ installs multiplayer games on mobile• Meet people in synchronous games from anywhere! 600K+ installs• Cross platform 500K+ installs © 2011 CONFIDENTIAL 18
  • 19. The Formula: One-Tap Purchase• Virtually every iPhone user has a credit card on file with iTunes, enabling a frictionless one-tap purchase flow © 2011 CONFIDENTIAL 19
  • 20. Android Can’t Compete (Yet)• Comparatively onerous payment process on Android is clearly impacting monetization rates vs. iPhone apps © 2011 CONFIDENTIAL 20
  • 21. Both Platforms Must Improve Internationally• Both iOS and Android are overly reliant on a faulty expectation that everyone has a credit card – need to support popular local payment methods, especially in countries with much smaller advertising markets Konbini © 2011 CONFIDENTIAL 21
  • 22. Mobile Offer Walls Help Drive Monetization © 2011 CONFIDENTIAL 22
  • 23. But the Pay-Per-Install Model is Unavailable on iOS © 2011 CONFIDENTIAL 23
  • 24. Incentivized Mobile Video Ads Poised for Growth• Premium placements command premium CPMs• Avoids screen size constraints• Guaranteed eyeballs• Plugs into social app ecosystem: • Facebook • Twitter • SMS• Available on all platforms © 2011 CONFIDENTIAL 24
  • 25. myYearbook’s Social Theater Goes Mobile in 2012 © 2011 CONFIDENTIAL 25
  • 26. Source: myYearbook Internal© 2011 CONFIDENTIAL 26
  • 27. Still a Huge Opportunity for “Traditional” Display Ads• Only 3% of consumers are spending their money on in-app purchases• Advertising can monetize the other 97%-- at a lower rate, but one that will improve with time © 2011 CONFIDENTIAL 27
  • 28. Mobile Potential Source: http://techcrunch.com/2011/10/18/mary-meekers-2011-presentation-on-internet-trends-slides © 2011 CONFIDENTIAL 28
  • 29. Translation: Be Mobile or Be Irrelevant Source: Survey of 3,000 myYearbook users © 2011 CONFIDENTIAL 29
  • 30. Passive Watching of Television is Over © 2011 CONFIDENTIAL 30
  • 31. But Wait – Everyone Knows Mobile Ads Don’t Convert! What’s the ROI of your mom? Hard to measure doesn’t mean nonexistent. Source: Gary Vaynerchuk © 2011 CONFIDENTIAL 31
  • 32. Advertisers Should Be Excited About Mobile• More Reach o Users are always on, always plugged in – now advertisers can reach them more often than they ever could before• More Context o Mobile is a higher-quality touch point o Target based on interests, social graph, location o Point-of-sale capabilities developing• More Expectations o Increasingly, users expect their web experience to transition seamlessly onto their mobile phones o No patience for apps and brands that aren’t available everywhere © 2011 CONFIDENTIAL 32
  • 33. The Next 12 Months• Smartphone penetration to increase• We expect mobile monetization to improve on all fronts• New platforms will emerge (e.g. Amazon Kindle Fire), forcing publishers to make tough choices about where to invest resources. • New user acquisition? Potential for monetization?• Apple and Google continue to improve their offerings around payment, especially internationally © 2011 CONFIDENTIAL 33
  • 34. Smartphone Penetration to Increase Source: myYearbook Internal © 2011 CONFIDENTIAL 34
  • 35. Android In-App Billing Will Get Easier• Expect Google to encourage users to create a billing profile on activation of a new phone or download of the first app © 2011 CONFIDENTIAL 35
  • 36. New Players Will Emerge That Solve Seamless Payments on Mobile Devices• Amazon is already working on an In-App billing SDK for mobile• 1-Click shows they understand frictionless payments• Ability to strike large deals with handset makers and market their own tablets © 2011 CONFIDENTIAL 36
  • 37. Handset Makers Will Partner with Billing Providers• Expect handset makers, carriers, and billing providers to work together to improve the payment process – Reduced friction – More options for consumers – Friendlier terms for publishers © 2011 CONFIDENTIAL 37
  • 38. Further Innovation Around Ad UnitsIn-Game Branding Premium Expandable Ad Units © 2011 CONFIDENTIAL 38
  • 39. It Will All Come Together• Smart phone proliferation continues• Mobile advertising growth explodes• Mobile payments become frictionless on all leading platforms• Location promise is realized• Marketers key in on social and location context to drive people to point of sale © 2011 CONFIDENTIAL 39
  • 40. Any Questions? @geoffcookgcook@myyearbook.com © 2011 CONFIDENTIAL Confidential – Not for Distribution 40

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