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Women Powering Technology Summit
  Technical Workshop: Mobile Development


   Mobile Trends
             Bess Ho @bess
            Archimedes Labs
                  Jun 5, 2012
                Santa Clara CA
About Me         @bess

 Book      Startup       Startup
Author    Incubator      Adviser
          Archimedes
             Labs



  m ing          Mobile Workshops
Co
                     Technical
                   IP for Startup
Mobile First
Web Second
           Fred Wilson
              2010
Mobile First
Mobile First

      Your SMS Message:

“   follow fredwilson to 40404
                                   ”
In 2010 46% Twitter active users use
mobile regularly
Mobile First




Foursquare has little value on its web app
Foursquare delivers key values on mobile
Mobile First




Kleiner Partner Mary Meeker’s 2012 May Report
Desktop vs Mobile




Kleiner Partner Mary Meeker’s 2012 May Report
eCommerce vs mCommerce




Kleiner Partner Mary Meeker’s 2012 May Report
iPhone vs Tablet




Kleiner Partner Mary Meeker’s 2012 May Report
Desktop Laptop vs Tablet




Kleiner Partner Mary Meeker’s 2012 May Report
iPad
IDC reported 17.4 Million Tablets were
shipped worldwide in 1st QTR in 2012
34 Million Tablets
Tablet generates 3.4 times more traffic
than smartphone 517 MB/month vs 150
MB/month
By 2016 Tablets is 10% of global mobile
data traffic
68% are iPads
iPad
By 2016 Tablet generates the same traffic
as mobile traffic in 2012
Big Data


                   In 2011 Mobile data was 8x the size of
                   web data in 2000
                   No. of mobile devices exceeds no. of
                   worldwide population by 2013




Cisco’s Visual Networking Index (VNI) Mobile Report 2012
Big Data
                                              More




Cisco’s Visual Networking Index (VNI) Mobile Report 2012
Big Data


                   More Data
                   More Connectivity
                   More Bandwidth

Cisco’s Visual Networking Index (VNI) Mobile Report 2012
Mobile Usage




Sandvine 2012 Report
mVideo
               52% of mobile traffic is Video
               Mobile video is Top activities for mobile users
               By 2016 70+% mobile traffic will be Video




Cisco’s Visual Networking Index (VNI) Mobile Report 2012
Audio Video Streaming
            YouTube is the largest source of mobile web
            traffic 12-25%
            Netflix 2%
            Pandora 6%




Sandvine 2012 Report
Mobile Monetization


  “Biggest Mistake”


Web = Mobile
Mobile Monetization
Freemium Business Model

                  56%
   44%
               App Sales
 Avg IAP       Avg $3.77
   $14

FREE APP       PAID APP
In-App Purchase

                 30% of iOS revenue comes from in-app
                 purchases in 2010
                 34 of Top 100 Grossing apps are free
                 monetized by in-app purchases
                 Epic Games made $10 Million in 2011 from
                 Infinity Blade 40+% from in-app
                 purchases


Gamesbrief.com 2011
In-App Purchase (IAP)

                 Average transaction in-app purchase $14
                 (iOS or Android)
                 14x revenue than Freemium
                 51% Revenue from in-app purchases
                 comes from transactions of over $20
                 Of that 51%, 30% comes from $50+
                 transactions


Gamesbrief.com 2011
IAP is Addictive

                      Spending is a habit
                 56% of game player that spend a dollar
                 come back to spend a 2nd time
                 25% spend 3 or more times




Gamesbrief.com 2011
Dogs vs Cats

                      Loyalty is GOLD
                          20 : 1
Loyal Purchaser = 20 x One-time Purchaser
    Top Purchaser = 100 x Loyal Purchaser



Gamesbrief.com 2011
Profit

                      Courting Rule


  80-90% of Profit
  comes from              0.5%        of User




Gamesbrief.com 2011
Mobile Monetization




Gamesbrief.com 2011
Life Before & After




Gamesbrief.com 2011
Mobile Monetization

      IAP vs Freemium


IAP > Advertised Free App

IAP > Pay-to-play (Paid App)
Mobile Monetization
     “Bigger Mistake”




iPad = iPhone
Big Trends
                      It’s about PAYING




Gamesbrief.com 2011
Mobile Strategy
           “Mobile First Web Second”
                         Fred Wilson
                   VC, Union Square Ventures
  Early Days
                            Native
                             App
Native   Mobile
 App     Web App
                            Web
                            App
Mobile Strategy
   “App Design Should be
  Mobile First, Web Second”

                   Fred Wilson
Native       VC, Union Square Ventures
 App


Web
App
Mobile Strategy
   Facebook CTO Bret Taylor

Problems           Solution
   B
A     C
   D               HTML5
 E     G    2011
    F
Mobile Strategy




                  Gigaom
                  Nov 2011
Strategy I
Native App                        Cloud
using
Objective-C             REST API          HTTP
                        XML / JSON        GET / POST

                                 iOS SDK
• UIWebView is a lite version
    of Safari browser            UIWebView
•   Update without approval
    process
•   Content is layout in HTML5
•   Share same content
•   Update using CSS template
Strategy II
Native app                     Cloud
using
HTML5                REST API          HTTP
framework            XML / JSON        GET / POST

• Appcelerator Titanium -       HTML5
    HTML/JS/CSS (iOS /        Framework
    Android / BlackBerry in
    beta)
•   PhoneGap - HTML/JS/CSS
    (iOS / Android /
    BlackBerry / WebOS /
    Window Phone / Bada /
    Symbian)
Strategy III
Native app
using
cross-
platform
framework
                               Cross Platform
• Conrona - Lua                 Framework
• Adobe AIR - ActionScript 3
    & Flash
•   Rhodes - Ruby                   Lua,
•   Unity - UnityScript(JS),      Ruby, AS,
    C#, Boo(Python)                  C#
•   Mono - C# .NET
Mobile Strategy
        “Bigger Mistake”


MySQL = No SQL
 RSDB                  No JOIN
                 Not ACID Guarantees
              Distributed & Fault-tolerant
                      Architecture
                   Horizontally Scale
Heavy Lifting: No SQL




MongoDB        Hadoop
Mobile Strategy
       “Bigger Mistake”

Server-side
Frameworks    =    Server-side
                       API

                         I/O API
                     Non-Blocking
                     Asynchronous
                      Event-driven
                       JavaScript
Mobile Strategy
     “Bigger Mistake”
Thin                    Thick
Client                  Client



           =
Thick
Cloud                   Thin
                        Cloud
Mobile First
          Archimedes Labs
     Social | Consumer | Mobile

              @Bess
     bess@archimedeslabs.com
http://www.slideshare.net/bess.ho

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WITI.ORG Women Technology Summit 2012

  • 1. Women Powering Technology Summit Technical Workshop: Mobile Development Mobile Trends Bess Ho @bess Archimedes Labs Jun 5, 2012 Santa Clara CA
  • 2. About Me @bess Book Startup Startup Author Incubator Adviser Archimedes Labs m ing Mobile Workshops Co Technical IP for Startup
  • 3. Mobile First Web Second Fred Wilson 2010
  • 5. Mobile First Your SMS Message: “ follow fredwilson to 40404 ” In 2010 46% Twitter active users use mobile regularly
  • 6. Mobile First Foursquare has little value on its web app Foursquare delivers key values on mobile
  • 7. Mobile First Kleiner Partner Mary Meeker’s 2012 May Report
  • 8. Desktop vs Mobile Kleiner Partner Mary Meeker’s 2012 May Report
  • 9. eCommerce vs mCommerce Kleiner Partner Mary Meeker’s 2012 May Report
  • 10. iPhone vs Tablet Kleiner Partner Mary Meeker’s 2012 May Report
  • 11. Desktop Laptop vs Tablet Kleiner Partner Mary Meeker’s 2012 May Report
  • 12. iPad IDC reported 17.4 Million Tablets were shipped worldwide in 1st QTR in 2012 34 Million Tablets Tablet generates 3.4 times more traffic than smartphone 517 MB/month vs 150 MB/month By 2016 Tablets is 10% of global mobile data traffic 68% are iPads
  • 13. iPad By 2016 Tablet generates the same traffic as mobile traffic in 2012
  • 14. Big Data In 2011 Mobile data was 8x the size of web data in 2000 No. of mobile devices exceeds no. of worldwide population by 2013 Cisco’s Visual Networking Index (VNI) Mobile Report 2012
  • 15. Big Data More Cisco’s Visual Networking Index (VNI) Mobile Report 2012
  • 16. Big Data More Data More Connectivity More Bandwidth Cisco’s Visual Networking Index (VNI) Mobile Report 2012
  • 18. mVideo 52% of mobile traffic is Video Mobile video is Top activities for mobile users By 2016 70+% mobile traffic will be Video Cisco’s Visual Networking Index (VNI) Mobile Report 2012
  • 19. Audio Video Streaming YouTube is the largest source of mobile web traffic 12-25% Netflix 2% Pandora 6% Sandvine 2012 Report
  • 20. Mobile Monetization “Biggest Mistake” Web = Mobile
  • 21. Mobile Monetization Freemium Business Model 56% 44% App Sales Avg IAP Avg $3.77 $14 FREE APP PAID APP
  • 22. In-App Purchase 30% of iOS revenue comes from in-app purchases in 2010 34 of Top 100 Grossing apps are free monetized by in-app purchases Epic Games made $10 Million in 2011 from Infinity Blade 40+% from in-app purchases Gamesbrief.com 2011
  • 23. In-App Purchase (IAP) Average transaction in-app purchase $14 (iOS or Android) 14x revenue than Freemium 51% Revenue from in-app purchases comes from transactions of over $20 Of that 51%, 30% comes from $50+ transactions Gamesbrief.com 2011
  • 24. IAP is Addictive Spending is a habit 56% of game player that spend a dollar come back to spend a 2nd time 25% spend 3 or more times Gamesbrief.com 2011
  • 25. Dogs vs Cats Loyalty is GOLD 20 : 1 Loyal Purchaser = 20 x One-time Purchaser Top Purchaser = 100 x Loyal Purchaser Gamesbrief.com 2011
  • 26. Profit Courting Rule 80-90% of Profit comes from 0.5% of User Gamesbrief.com 2011
  • 28. Life Before & After Gamesbrief.com 2011
  • 29. Mobile Monetization IAP vs Freemium IAP > Advertised Free App IAP > Pay-to-play (Paid App)
  • 30. Mobile Monetization “Bigger Mistake” iPad = iPhone
  • 31. Big Trends It’s about PAYING Gamesbrief.com 2011
  • 32. Mobile Strategy “Mobile First Web Second” Fred Wilson VC, Union Square Ventures Early Days Native App Native Mobile App Web App Web App
  • 33. Mobile Strategy “App Design Should be Mobile First, Web Second” Fred Wilson Native VC, Union Square Ventures App Web App
  • 34. Mobile Strategy Facebook CTO Bret Taylor Problems Solution B A C D HTML5 E G 2011 F
  • 35. Mobile Strategy Gigaom Nov 2011
  • 36. Strategy I Native App Cloud using Objective-C REST API HTTP XML / JSON GET / POST iOS SDK • UIWebView is a lite version of Safari browser UIWebView • Update without approval process • Content is layout in HTML5 • Share same content • Update using CSS template
  • 37. Strategy II Native app Cloud using HTML5 REST API HTTP framework XML / JSON GET / POST • Appcelerator Titanium - HTML5 HTML/JS/CSS (iOS / Framework Android / BlackBerry in beta) • PhoneGap - HTML/JS/CSS (iOS / Android / BlackBerry / WebOS / Window Phone / Bada / Symbian)
  • 38. Strategy III Native app using cross- platform framework Cross Platform • Conrona - Lua Framework • Adobe AIR - ActionScript 3 & Flash • Rhodes - Ruby Lua, • Unity - UnityScript(JS), Ruby, AS, C#, Boo(Python) C# • Mono - C# .NET
  • 39. Mobile Strategy “Bigger Mistake” MySQL = No SQL RSDB No JOIN Not ACID Guarantees Distributed & Fault-tolerant Architecture Horizontally Scale
  • 40. Heavy Lifting: No SQL MongoDB Hadoop
  • 41. Mobile Strategy “Bigger Mistake” Server-side Frameworks = Server-side API I/O API Non-Blocking Asynchronous Event-driven JavaScript
  • 42. Mobile Strategy “Bigger Mistake” Thin Thick Client Client = Thick Cloud Thin Cloud
  • 43. Mobile First Archimedes Labs Social | Consumer | Mobile @Bess bess@archimedeslabs.com http://www.slideshare.net/bess.ho

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  21. $12 Billion revenue in mobile apps & advertising\nApple paid out $2 Billion in-app purchases & paid app in 2011\nGoogle has higher mobile display ad revenue than Apple\nPandora gains $3.87 per user. Monthly subscription $3.99 via app on iOS\nGoogle cost per click is down b/c mobile ads generate lower revenue than desktop search ads\nFB increasing mobile usage drag down its revenue per user\n\n
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