This document discusses trends in mobile technology and their impact on advertising. It summarizes Chi-Hua Chien's presentation at KPCB on mobile trends and opportunities. The presentation shows how mobile phone adoption has surpassed PCs, with the iPhone driving major changes in user behavior. It highlights the success of the iPod, iTunes, and App Store. Chien argues that mobile will change businesses by prioritizing context over content, focusing on utility rather than interruption, and enabling perpetual personalization through hyper-fragmentation. The presentation provides an update on KPCB's iFund and the companies it has funded.

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