Mobile AppsTrends, Marketing and Value CreationPatrick Mork - CMO
GetJar – who we areLargest open app store (’05)1.8 billion downloads144,000 apps190 countries,  2,500 handsets Distribution / AppVertising™$42M funding / Accel / TGM Silicon Valley, London, Vilnius
Some of our clients…
App usage is becoming universalOver 8 billion apps were downloaded in 2010The global industry will be worth over $30 billion by 2015*56% of users are maleLargest age demo is 25-34 year oldsFollowed by 34-44 year olds and 18-24Over 600,000 apps across the known apps storesMore then 3,500 apps are being downloaded every second*Juniper research Q4 2010** GetJar consumer poll of 2,500 consumers in Q1 2011
How do consumers engage with apps?63% download apps once / week35% using apps more then 1 hour / dayTop categories SN, Games, News, Weather, Music74% using apps more then once per day30% claim to use mobile web more then WebGJ AppMeter Survey, March 20112,500 users
Platforms: All about Android vs. iOS?100M devices vs. well over 1.8 billion web enabledConsumers don’t always distinguishWeb has innate advantagesSmart brands already leverage web
Cross platform with a touch of WEB
Geography – Apps going globalGetJar’s top market is IndiaContent consumption varies by marketLocal content starting to be seenPull of apps in EM even stronger then US / DMPhones as status symbols
Brands – Emergence of the first mobile only brands
About those Angry Birds
Money – show me the $....2010 = $2.1 bln in app store revenueApple alone 1.725% est. games47% of games IABPercent share of app store revenues 2010: IHS Screendigest
Business models – why pay-before-you play doesn’t workRace to the bottomDevalues brandsOnly for DM’sLacks trialHigher risk then in application billingIncreased cost of advertising
Monetization trend: 3 possible models
Marketing: Significant trend in marketing spend on mobileMobile ad spend in US to reach $1.1 bln in 2011 according to emarketerSet to grow by $19 billion from 2010 – 2015 according to Gartner84% of consumers have downloaded apps with ads21% purchase something after clicking a banner
Marketing: Translating into increased spend on appsKey verticals include:  Search, games, productivity, entertainment, retail, automotiveRealization that distribution alone no longer enough  only 25% of apps discovered are found in app stores*However, performance metrics are changing from CPM / CPC to CPD and CPISpend now including Android apps as natural next “big” category after iPhone – particularly in the US
…and metrics must change to reflect performanceAd NetworkCost Per ClickCost Per DownloadPay only when download starts
Quest for performance will fuel consolidation, liquidation and aggregationOptimization across multiple networksOptimizing across devicesMultiple installations (SDK’s)Reporting across multiple vendorsMultiple contracts
Marketing: Distribution trendsEcosystem fragmented with over 160 app storesDifferent stores have different merchandising / placement policiesVisibility has a massive affect on downloads  up to 10x or even 100x differenceRankings by store differ  on Apple marketing can influence rankings on Android Market it can’tDifferent stores have different levers of marketingApp stores must and will consolidate over next 24 months
20Fragmentation is inherent
Brand challengesBrands renown gives them natural advantage54% of our consumers have downloaded branded appsHowever, expectations are higher of brands80% said quality of app affects brands trustworthinessConsumers also expect a similar experience across devices / OS’s Mobile is often isolated from rest of marketingTo succeed apps must be part of marketing mix
Salvation Army: Reach, Inform, educate and galvanize young audienceDynamic RSS feed with content fed in real-time from blogForm to volunteer and participate at the community and international levelVideo, copy, images and other content Easy to usebranded interactive menuViral functionality encourages sharing content and mobile app among networksDonate options including Call-in, Mail-in, Online and special “Donate $10” now button
TSA: Marketing and resultsMarketingAggressive press campaign with mentions in USA Today and other key publications
Viral marketing campaign to TSA base via Twitter and Facebook
CRM / email campaign to TSA consumer base and regional agencies

Get jar digital now! preso

  • 2.
    Mobile AppsTrends, Marketingand Value CreationPatrick Mork - CMO
  • 3.
    GetJar – whowe areLargest open app store (’05)1.8 billion downloads144,000 apps190 countries, 2,500 handsets Distribution / AppVertising™$42M funding / Accel / TGM Silicon Valley, London, Vilnius
  • 4.
    Some of ourclients…
  • 5.
    App usage isbecoming universalOver 8 billion apps were downloaded in 2010The global industry will be worth over $30 billion by 2015*56% of users are maleLargest age demo is 25-34 year oldsFollowed by 34-44 year olds and 18-24Over 600,000 apps across the known apps storesMore then 3,500 apps are being downloaded every second*Juniper research Q4 2010** GetJar consumer poll of 2,500 consumers in Q1 2011
  • 6.
    How do consumersengage with apps?63% download apps once / week35% using apps more then 1 hour / dayTop categories SN, Games, News, Weather, Music74% using apps more then once per day30% claim to use mobile web more then WebGJ AppMeter Survey, March 20112,500 users
  • 7.
    Platforms: All aboutAndroid vs. iOS?100M devices vs. well over 1.8 billion web enabledConsumers don’t always distinguishWeb has innate advantagesSmart brands already leverage web
  • 8.
    Cross platform witha touch of WEB
  • 9.
    Geography – Appsgoing globalGetJar’s top market is IndiaContent consumption varies by marketLocal content starting to be seenPull of apps in EM even stronger then US / DMPhones as status symbols
  • 10.
    Brands – Emergenceof the first mobile only brands
  • 11.
  • 12.
    Money – showme the $....2010 = $2.1 bln in app store revenueApple alone 1.725% est. games47% of games IABPercent share of app store revenues 2010: IHS Screendigest
  • 13.
    Business models –why pay-before-you play doesn’t workRace to the bottomDevalues brandsOnly for DM’sLacks trialHigher risk then in application billingIncreased cost of advertising
  • 14.
    Monetization trend: 3possible models
  • 15.
    Marketing: Significant trendin marketing spend on mobileMobile ad spend in US to reach $1.1 bln in 2011 according to emarketerSet to grow by $19 billion from 2010 – 2015 according to Gartner84% of consumers have downloaded apps with ads21% purchase something after clicking a banner
  • 16.
    Marketing: Translating intoincreased spend on appsKey verticals include: Search, games, productivity, entertainment, retail, automotiveRealization that distribution alone no longer enough  only 25% of apps discovered are found in app stores*However, performance metrics are changing from CPM / CPC to CPD and CPISpend now including Android apps as natural next “big” category after iPhone – particularly in the US
  • 17.
    …and metrics mustchange to reflect performanceAd NetworkCost Per ClickCost Per DownloadPay only when download starts
  • 18.
    Quest for performancewill fuel consolidation, liquidation and aggregationOptimization across multiple networksOptimizing across devicesMultiple installations (SDK’s)Reporting across multiple vendorsMultiple contracts
  • 19.
    Marketing: Distribution trendsEcosystemfragmented with over 160 app storesDifferent stores have different merchandising / placement policiesVisibility has a massive affect on downloads  up to 10x or even 100x differenceRankings by store differ  on Apple marketing can influence rankings on Android Market it can’tDifferent stores have different levers of marketingApp stores must and will consolidate over next 24 months
  • 20.
  • 21.
    Brand challengesBrands renowngives them natural advantage54% of our consumers have downloaded branded appsHowever, expectations are higher of brands80% said quality of app affects brands trustworthinessConsumers also expect a similar experience across devices / OS’s Mobile is often isolated from rest of marketingTo succeed apps must be part of marketing mix
  • 22.
    Salvation Army: Reach,Inform, educate and galvanize young audienceDynamic RSS feed with content fed in real-time from blogForm to volunteer and participate at the community and international levelVideo, copy, images and other content Easy to usebranded interactive menuViral functionality encourages sharing content and mobile app among networksDonate options including Call-in, Mail-in, Online and special “Donate $10” now button
  • 23.
    TSA: Marketing andresultsMarketingAggressive press campaign with mentions in USA Today and other key publications
  • 24.
    Viral marketing campaignto TSA base via Twitter and Facebook
  • 25.
    CRM / emailcampaign to TSA consumer base and regional agencies

Editor's Notes

  • #7 App usage higher per session then Asia (30%) or EU (22%)Top categories varied with Asians being heavier users of Games then AmericansAmericans also used Sports apps (20%) more heavily then Europeans (12%)Consumers will eventually embrace mobile even more then Web  particularly in AsiaConsumers will use apps across devices  tablets, phones, cars, TV’s
  • #8 47M iphones sold last year and 55M Android phones vs. over 1 billion Internet enabled nowABI estimates 3.8 billion will be internet enabled by 2015Web is cheaper, provides reach, works across handsets, easier to maintain and easier to distributeFacebook has done over 110M downloads on GetJar of the shortcut to it’s mobile siteNOT SO MUCH ABOUT PLATFORM VS WHAT THE PHONE CAN DO
  • #9 Currently App, Android, WEB all given particularly in US. wever, Windows Mobile closing on on BB in terms of developer interest according to Appcelerator survey (32%). Symbian still applicable in non US marketsWeb still provides best reach cross OS, countries, handsets
  • #10 India – adding 10M subs to mobile market each month (= Verizon every 8 months)EM suffer from lower Internet / Broadband penetration so mobile is even more importantContent differs locally - -> Azan app in UK and Muslim worldDictionary apps in India / EMCricket Apps in India
  • #11 Ebuddy – over 80M on GetJar alone  IM, Chat, VOIP appShazam  over 75M users, allows you to identify, tag and buy songsShopkick offer rewards and bonuses just for walking into stores like Best Buy, Macy’s, Target. Earn kickbucks also for scanning products, signing up friendsFoursquare – check in geo location app. Aprox 8 million users
  • #12 Over 130 million downloads to date – last version did 10 million downloads in 10 daysActive users now outnumber FarmvilleAngry Birds, Season Hall, Season xmas, Season St. Patricks DayIpad, android, ipad…..more soon (console / facebook)Tie in with Fox on movieBecoming truly global brand
  • #13  Apple still leads market due to seamless CC ability and IABGoogle moving now more decisively with IAB announced a few weeks agoAmazon still unknown but has massive CC base as well for US market  more focus on paid apps / retail price settingBB and Ovi will suffer from quality / depth of content offering given stagnancy of platforms - Ovi to move to Windows Mobile - BB moving to Android on Playbook. Possibly phones?TREND IN FREE TO DOWNLOAD / PLAY FOLLOWED BY IAB FOR MONETIZATIONIN APP ADS ALSO CRITICAL TO MONETIZATION BUT WITH AVERAGE CPM’S BEING LOW REMAINS A CHALLENGE WITHOUT RICH MEDIARICH MEDIA MIGHT COMMAND 5-6X REVENUES ON ADS VS. STATIC BANNERSEM COUNTRIES PROVE TO PRE-PAY SO WILL BE MORE AD FOCUSED OR ALSO RETAIL / CARD FOCUSED
  • #14 This was exactly the same as the carrier model except that publishers set their own price and revenue shares are higher
  • #15 Free to download In app ads: easy to implement, multiple vendors, now allows rich media and video on certain platforms. Challenge is around CPM’s which range from $1-6 on rich mediaFree to use In app billing: bills within the app and allows for micro transactions. Challenge is around global billing and carrier revenue share which can vary from as little as 30%-70%Last model is around subscription: similar to in app billing, once the user has used the app an event prompts the consumer to pay for something for a full month / year. ideal around Security or news appsThings that need to happen though: Carrier revenue shares must come down; app stores must roll out global solutions; different markets require different approaches
  • #17 Spending by digital retailers like Amazon, Ebay, Groupon and Living Social48% of discovery now happening online. 15% between social networks and friends
  • #18 Industry increasingly moving from measuring impressions and clicks to downloads and installs
  • #19 Contracts require time, legal review and costsOver 1-2 dozen ad networks out there each with slightly different way to functionEach ad network has a slightly different Software Development Kit that must be installed in the app resulting in multiple versions needed per vendorEach network works differently and must be managed to optimize campaigns Campaigns need to be individually optimized, optimized by network and optimized by deviceReporting varies from vendor to vendor and must be comparedEventually will lead to demand side platform that enable bulk buying across multiple inventory sources to ease all this
  • #21 CC = credit card (for iOS this includes IAB)Android = Google Checkout, Carrier Billing (limited to US only with AT&T / Tmobile)
  • #25 SV : Please screen shot this again as it has the scroll over showing in a yellow box.Otherwise the imave looks great.MW. Can’t do that as this has been taken from an html email that I don’t have
  • #26 Everyone will go mobile! Don’t miss the boat!Keep in mind though US market still only about 1/3 smartphones – lots of other users out thereStay on top of changing landscape – use NPD, IDC, Comscore and other data sources to see where platforms are headingPlatforms only as strong as their content base  keep on top of which platforms have momentum