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James Hilton – CEO | james@mcsaatchimobile.com
Welcome to
M&C Saatchi
Mobile
The worlds largest specialist mobile
marketing agency

Access to M&C Saatchi’s full strategic
resources

Over 80 full-time mobile experts

Multi-award winning
Local
knowledge
& a unique
global reach
Our core mobile offering




 Strategy	
     Mobile advertising   production
agenda
Introduction – overview of the market
TRENDS
1. Smartphone penetration is slowing in established markets –
while emerging markets are on the rise
2. The platform shift
3. Mobile ad spend to skyrocket in 2013
4. The year of the tablet
5. Mobile retail to explode
6. The evolution of the ad network, DSP’s & RTB
7. 4g to accelerate the rich media ad space
8. The rise of social and facebook on mobile
9. Apps vs. mobile web
10. The market is constantly changing
The future of digital
The medium is now 20
years old.
So, how does
the market look?
2+ billion people online
 Global internet population




     (millions)




Source:	
  Interna-onal	
  Communica-on	
  Union.	
  Google	
  	
  
2/3 of the world left to go
 Global internet population




(millions)




Source:	
  Interna-onal	
  Communica-on	
  Union.	
  Google	
  	
  
HOWEVER…
Most of the affluent community are
 already online
 Distribution of global income




Source:	
  UN	
  Human	
  Development	
  Report,	
  Trends	
  In	
  Global	
  Income	
  Distribu-on	
  
So the market’s more
mature than you think.
Meanwhile, something
profound happened last
year…
PC growth started to slow
 Global PC shipments by manufacturer




Source:	
  Gartner.	
  IDC	
  	
  
Smartphone sales grew past pc sales
 Global internet device sales




    Units




Source:	
  Gartner.	
  IDC.	
  Strategy	
  Analy-cs,	
  company	
  fillings.	
  BI	
  Intelligence	
  es-mates	
  
Tablets are starting to take over
 Global computer shipments




(thousands)




Source:	
  Gartner.	
  IDC.	
  Strategy	
  Analy-cs	
  company	
  releases	
  
So the future is mobile
 G-20 internet access




   Consumer
  Broadband
  Connections
   (millions)




Source:	
  Boston	
  Consul-ng	
  Group,	
  Mary	
  Meeker,	
  Kleiner	
  Perkins,	
  Morgan	
  Stanley	
  Research,	
  Berg	
  Insight	
  	
  	
  
Where are we in the
mobile revolution?
& what are the essentials
you need to know?
Trend 1.
Smartphone penetration is
slowing in established markets
while emerging markets are
on the rise
Globally, we’re still early…
 Global smartphones vs. mobile phone users 2012




 Global Users
   (millions)




Source:	
  Strategy	
  Analy-cs,	
  interna-onal	
  Telecommunica-ons	
  Union.	
  Note:	
  Some	
  users	
  own	
  more	
  than	
  one	
  device	
  	
  
But growth tends to
slow after 50%
penetration
US & other markets are past halfway
 US smartphone penetration




Source:	
  Nielsen	
  
Most mature markets
       are now over 50%

       France                                 51.4%
       Germany                                48.4%
       Italy                                  51.2%
       Spain                                  63.2%
       UK                                     62.3%


Source:	
  Comscore:	
  October	
  2012	
  MobiLens	
  report	
  
smartphone growth is slowing
 US smartphone Market: year over year net adds




      Users
      Added
     (million)




Source:	
  comScore.	
  Nielsen	
  
Most future US & UK smartphone
 buyers will be older & less affluent
 Smartphone penetration by age & income




Source:	
  Nielsen	
  
the focus is now on markets like china
 who now account for 25% of sales
 Global smartphone shipments



  (thousands)




Source:	
  Gartner.	
  IDC.	
  Strategy	
  Analy-cs,	
  Canalys,	
  BII	
  es-mates	
  
developing markets such as
              brazil, Russia, Indonesia and
              China will drive much of the
              volume of growth in 2013.
              They will generate 70-80%
              of additional shipments this year –
              38% of the global total.


Source:	
  Canalys	
  
Trend 2.
The platform shift
Right now, mobile is a two-horse race
 Global mobile OS market breakdown




Source:	
  Gartner.	
  IDC.	
  Strategy	
  Analy-cs.	
  BII	
  Intelligence	
  es-mates,	
  and	
  company	
  fillings	
  
Android is the largest
 platform globally
 Smartphone Market Share by OS (global)



 Share of
Global Unit
   Sales




Source:	
  Gartner	
  
Partly because of high
 adoption in china
 Chinese smartphone market share by platform




Source:	
  Analysys	
  Interna-onal	
  
And it’s the same two horse
 Race in tablets
 Tablet market share by platform




Source:	
  Es-mates	
  based	
  on	
  informa-on	
  from	
  IDC,	
  Strategy	
  Analy-cs	
  and	
  company	
  filings	
  
However Apple is still dominating
 app revenue
 Mobile app revenue by platform



   (millions)




Source:	
  iSuppli.	
  Forrester	
  Research.	
  Company	
  releases.	
  BII	
  es-mates	
  
And ecommerce & web traffic




Source:	
  Monetate	
  
What will happen in 2013
1.    Android is on the offensive and will be picking off
      individual territories

2.  Google says it’s activating 1.3M devices a day

3.  By the end of 2013 Google shipments of android devices
    should pass 1 Billion

4.  android will account for up to 70% of devices shipped
Trend 3.
Mobile ad spend to
Skyrocket in 2013
The global mobile advertising
                 market was worth
                 $6.43B in 2012
                 it’s forecasted to hit
                 $23B by 2016

Source:	
  Berg	
  Insight	
  
In the UK mobile advertising
                grew by 120% during 2012.
                growth on 2013 is estimated
                at 56%

Source:	
  Flurry	
  Analy-cs	
  
However Mobile Is still the highest
under indexing channel
Ad spend vs. consumer time spent by media (2012)
What has been holding
mobile back & why is it
not going to anymore?
The belief that the audience
is too fragmented to be
reached effectively
WE can now directly target consumers more accurately than
ever before:

age                  location           past location
connection           handset            device
content consumed     language
The belief that
Data And tracking
is elusive
Sophisticated tracking is now up to 99% accurate
We can track beyond the download – deposits, purchase,
usage etc.
DSP’s and RTB changing the landscape
The small screen
Constraining
Creative sizes
360 imagery
Location
services,
maps
And gps
video
Trend 4.
The year of the tablet
ios has dominated
the mid to high
end tier of the
landscape
Android is now
gaining market
share with
multiple
tablets
Windows is not
yet out of
the running
The 7 inch is
reaching a new
tablet market and
becoming a more
genuinely mobile
device than than
it’s larger cousin
Who is going to use the tablets?
 Device users plan to use as primary source of news &
 entertainment in 2013




Source:	
  Belkin	
  Survey	
  conducted	
  by	
  Harris	
  Interac-ve,	
  Jan	
  16,	
  2013	
  
Our
predictions
android will continue to take market share from APPLE
Windows to stay a marginal player
There will be more smartphone / tablet hybrid releases
This year will be the year of the 7 inch
Trend 5.
Mobile retail to explode
Almost ½ of all
               smartphone owners have
               purchased via their device
               In the last 12 months


Source:	
  Mintel’s	
  ‘Smartphone	
  Purchasing	
  Habits’	
  report	
  from	
  Nov.2012	
  (UK	
  only)	
  
Purchases via a smartphone
 internet users aged 16+ who personally own a smartphone




Source:	
  GMI/Mintel	
  
47% of consumers use
         their smartphone to
         search for local
         information such as a
         store they want to
         visit


Source:	
  Local	
  and	
  the	
  e-­‐tailing	
  group,	
  2012	
  
46% look up a store’s
         mobile site &
         42% check inventory
         prior to visiting a
         store



Source:	
  Local	
  and	
  the	
  e-­‐tailing	
  group,	
  2012	
  
Tablet shoppers
have a higher
propensity to
purchase on the
device
What you need to consider?
Tablet customers are worth more to brands
Know your brands mobile touch points – then research,
prioritize & start testing
Ensure you are mobile optimized
Develop a multichannel acquisition strategy on mobile
Include mobile search and local in your mobile strategy
Trend 6.
The evolution of the ad network,
The rise of demand side platforms,
& the arrival of Real time bidding
The way brands and agencies
buy mobile inventory is
changing
We’re taking control of the
buying process
ad networks are changing
Traditional networks (inMobi,
Millenial, Adfonic) are changing
their service offering to become
more sophisticated

…Or being bought by larger telcos
(AdMob / google, Quattro / Apple)
which ads more precision to their
data
How?
Bidding directly on inventory via ‘exchanges’
Developing new tools that let buyers target
consumers more accurately
Developing their own ‘bidder’ or using white labeled
DSP’s
Now, a new orthodoxy
Is emerging based on
demand side platforms
What is a demand side platform?
DSP Enables advertisers / agencies to
buy ads and target consumers in real time

    Identify                                Serve ad
                DSP locates
   consumer                   Place bid     based on
                   them
      type                                   value
DSP for mobile
Lack of cookies has forced DSP’s to come up with
alternative methods for delivering critical data
If an advertiser chooses to increase downloads of a
particular app the DSP:
    Learns        Creates         Auto adjusts
                                                 Maximizes
  patterns of    profile of          bidding
                                                 downloads
    traffic     traffic type        strategy

                  All refined in real time
The old system of
bidding on blind inventory will
become outmoded & inefficient
What will real time bidding
bring to mobile?
A system in which data on the bids, available inventory & the
behaviour of consumers is crunched in real time

Instantaneous bids for each impression based on data &
smart algorithms that change constantly in response to
audience changes

Transparency
How will this effect marketers?
        The mobile DSP will transform the efficiency & effectiveness of
        buying mobile inventory.

        RTB can improve ad effectiveness by 20-150%*

        More & more agencies will have their own DSP

        Only knowledgeable specialists can handle these transactions
        successfully



*Source:	
  ICD	
  
Trend 7.
4g will accelerate the rich media
space, but not that fast
It has been nearly a decade
since the first 3g networks
were launched
Now we’re seeing
that excitement
again with
LTE or 4g
Everything everywhere launched 4G in
the UK in 2012 – tests showed it to be 5
times faster than 3G
By may 2013
vodafone, o2 and
3UK will be able to
launch their own
4g services
Who will be using it?
                The Early
                adopters
                due to high Pricing
                The vast majority will be
                unwilling to break long
                contracts to get 4g
How will 4g effect
advertising on mobile?
More rich media campaigns
Currently most are run across wifi

4G will accelerate consumption – speed and more portable
than wifi hotspots
WE will see more:
• Pre roll video advertising
• Ads combining video, audio & interactive elements
• Gamification ads
• Ads utilizing APS’s
Trend 8.
The rise of facebook
& social on mobile
Until recently facebook’s
problem with mobile has
been well documented.
Their audience was
migrating to the small
screen but ad revenue
wasn’t.
In 2012 facebook started the
change – declaring itself a
mobile first company
launched promoted posts that appear in users news
feeds and was soon making $500,000 a day

Mobile accounted for 23% of Facebook’s $1.33B of
advertising revenue in Q4 2012 - $305M mobile ads sold

Their mobile app-install ads are now being used by 20%
of the 100 top grossing ios apps to attract new users
In 2013 Facebook is rolling
out it’s own mobile ad
network
Giving networks the ability to serve ads placed
with FB on 3rd party sites & aps
What you need to know for 2013
Social networks will invest in deeper insight to enhance targeting
on mobile

Advancements will be predominantly Facebook & Twitter, but sites
such as google & pinterest will be monitored for new
opportunities

Positive results have been seen though advertising on facebook’s
app – set to improve with investment in targeting & consumer
insight
Trend 9.
Apps vs. mobile web
In 2012 many expected the
resurgence of mobile web.
But is hasn’t panned out that way.
Android app revenues has doubled Q3-Q4
Facebook and others realized HTML5 was not the solution
The pendulum is swinging back to apps staying for 2012
Apple store downloads on pace to hit
 60B by mid 2013
 Apple app store downloads




Source:	
  BI	
  Intelligence	
  
Smartphone users spend more time on
 apps than web
 Total time spent using mobile web vs. apps




Minutes Spent
 Per Month
  (billions)




Source:	
  Nielsen	
  Smartphone	
  Analy-cs	
  
Mobile app revenue is still
 growing fast
 Mobile app revenue




         (millions)




                                               2008               	
  	
  	
  	
  	
  	
  2009 	
  	
  	
  	
  	
  	
  	
  2010 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2011	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1012	
  

Source:	
  iSuppli,	
  Forrester	
  Research,	
  company	
  releases,	
  BII	
  es-mates	
  
Because Most downloads are free
 Mobile app store downloads, free vs. paid 2012




Source:	
  Garner,	
  September	
  2012	
  
‘Fremium’ is the dominant model
   Two-thirds of the 100 iphone apps that make the most
   money are free to download and generate 100% of
   their itunes revenue through in-app commerce

             % of free and paid apps                                         % of the top 100 grossing iphone   % of top 100 grossing iphone
            In iphone top 100 grossing                                       Apps that use in-app commerce         Apps that are games




Source:	
  BI	
  intelligence	
  analysis	
  of	
  App	
  Store	
  data,	
  Jul.	
  2012	
  
Trend 10.
The market is constantly
changing
Stay informed
Questions?

info@mcsaatchimobile.com

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FDG 2014 PredictionsFDG 2014 Predictions
FDG 2014 Predictions
 

Mobile in 2013: Our Take On The Top Trends & Insights

  • 1. James Hilton – CEO | james@mcsaatchimobile.com
  • 2. Welcome to M&C Saatchi Mobile The worlds largest specialist mobile marketing agency Access to M&C Saatchi’s full strategic resources Over 80 full-time mobile experts Multi-award winning
  • 4. Our core mobile offering Strategy   Mobile advertising production
  • 5. agenda Introduction – overview of the market TRENDS 1. Smartphone penetration is slowing in established markets – while emerging markets are on the rise 2. The platform shift 3. Mobile ad spend to skyrocket in 2013 4. The year of the tablet 5. Mobile retail to explode 6. The evolution of the ad network, DSP’s & RTB 7. 4g to accelerate the rich media ad space 8. The rise of social and facebook on mobile 9. Apps vs. mobile web 10. The market is constantly changing
  • 6. The future of digital
  • 7. The medium is now 20 years old.
  • 8. So, how does the market look?
  • 9. 2+ billion people online Global internet population (millions) Source:  Interna-onal  Communica-on  Union.  Google    
  • 10. 2/3 of the world left to go Global internet population (millions) Source:  Interna-onal  Communica-on  Union.  Google    
  • 12. Most of the affluent community are already online Distribution of global income Source:  UN  Human  Development  Report,  Trends  In  Global  Income  Distribu-on  
  • 13. So the market’s more mature than you think. Meanwhile, something profound happened last year…
  • 14. PC growth started to slow Global PC shipments by manufacturer Source:  Gartner.  IDC    
  • 15. Smartphone sales grew past pc sales Global internet device sales Units Source:  Gartner.  IDC.  Strategy  Analy-cs,  company  fillings.  BI  Intelligence  es-mates  
  • 16. Tablets are starting to take over Global computer shipments (thousands) Source:  Gartner.  IDC.  Strategy  Analy-cs  company  releases  
  • 17. So the future is mobile G-20 internet access Consumer Broadband Connections (millions) Source:  Boston  Consul-ng  Group,  Mary  Meeker,  Kleiner  Perkins,  Morgan  Stanley  Research,  Berg  Insight      
  • 18. Where are we in the mobile revolution? & what are the essentials you need to know?
  • 19. Trend 1. Smartphone penetration is slowing in established markets while emerging markets are on the rise
  • 20. Globally, we’re still early… Global smartphones vs. mobile phone users 2012 Global Users (millions) Source:  Strategy  Analy-cs,  interna-onal  Telecommunica-ons  Union.  Note:  Some  users  own  more  than  one  device    
  • 21. But growth tends to slow after 50% penetration
  • 22. US & other markets are past halfway US smartphone penetration Source:  Nielsen  
  • 23. Most mature markets are now over 50% France 51.4% Germany 48.4% Italy 51.2% Spain 63.2% UK 62.3% Source:  Comscore:  October  2012  MobiLens  report  
  • 24. smartphone growth is slowing US smartphone Market: year over year net adds Users Added (million) Source:  comScore.  Nielsen  
  • 25. Most future US & UK smartphone buyers will be older & less affluent Smartphone penetration by age & income Source:  Nielsen  
  • 26. the focus is now on markets like china who now account for 25% of sales Global smartphone shipments (thousands) Source:  Gartner.  IDC.  Strategy  Analy-cs,  Canalys,  BII  es-mates  
  • 27. developing markets such as brazil, Russia, Indonesia and China will drive much of the volume of growth in 2013. They will generate 70-80% of additional shipments this year – 38% of the global total. Source:  Canalys  
  • 29. Right now, mobile is a two-horse race Global mobile OS market breakdown Source:  Gartner.  IDC.  Strategy  Analy-cs.  BII  Intelligence  es-mates,  and  company  fillings  
  • 30. Android is the largest platform globally Smartphone Market Share by OS (global) Share of Global Unit Sales Source:  Gartner  
  • 31. Partly because of high adoption in china Chinese smartphone market share by platform Source:  Analysys  Interna-onal  
  • 32. And it’s the same two horse Race in tablets Tablet market share by platform Source:  Es-mates  based  on  informa-on  from  IDC,  Strategy  Analy-cs  and  company  filings  
  • 33. However Apple is still dominating app revenue Mobile app revenue by platform (millions) Source:  iSuppli.  Forrester  Research.  Company  releases.  BII  es-mates  
  • 34. And ecommerce & web traffic Source:  Monetate  
  • 35. What will happen in 2013 1.  Android is on the offensive and will be picking off individual territories 2.  Google says it’s activating 1.3M devices a day 3.  By the end of 2013 Google shipments of android devices should pass 1 Billion 4.  android will account for up to 70% of devices shipped
  • 36. Trend 3. Mobile ad spend to Skyrocket in 2013
  • 37. The global mobile advertising market was worth $6.43B in 2012 it’s forecasted to hit $23B by 2016 Source:  Berg  Insight  
  • 38. In the UK mobile advertising grew by 120% during 2012. growth on 2013 is estimated at 56% Source:  Flurry  Analy-cs  
  • 39. However Mobile Is still the highest under indexing channel Ad spend vs. consumer time spent by media (2012)
  • 40. What has been holding mobile back & why is it not going to anymore?
  • 41. The belief that the audience is too fragmented to be reached effectively WE can now directly target consumers more accurately than ever before: age location past location connection handset device content consumed language
  • 42. The belief that Data And tracking is elusive Sophisticated tracking is now up to 99% accurate We can track beyond the download – deposits, purchase, usage etc. DSP’s and RTB changing the landscape
  • 46. video
  • 47. Trend 4. The year of the tablet
  • 48. ios has dominated the mid to high end tier of the landscape
  • 49. Android is now gaining market share with multiple tablets
  • 50. Windows is not yet out of the running
  • 51. The 7 inch is reaching a new tablet market and becoming a more genuinely mobile device than than it’s larger cousin
  • 52. Who is going to use the tablets? Device users plan to use as primary source of news & entertainment in 2013 Source:  Belkin  Survey  conducted  by  Harris  Interac-ve,  Jan  16,  2013  
  • 53. Our predictions android will continue to take market share from APPLE Windows to stay a marginal player There will be more smartphone / tablet hybrid releases This year will be the year of the 7 inch
  • 55. Almost ½ of all smartphone owners have purchased via their device In the last 12 months Source:  Mintel’s  ‘Smartphone  Purchasing  Habits’  report  from  Nov.2012  (UK  only)  
  • 56. Purchases via a smartphone internet users aged 16+ who personally own a smartphone Source:  GMI/Mintel  
  • 57. 47% of consumers use their smartphone to search for local information such as a store they want to visit Source:  Local  and  the  e-­‐tailing  group,  2012  
  • 58. 46% look up a store’s mobile site & 42% check inventory prior to visiting a store Source:  Local  and  the  e-­‐tailing  group,  2012  
  • 59. Tablet shoppers have a higher propensity to purchase on the device
  • 60. What you need to consider? Tablet customers are worth more to brands Know your brands mobile touch points – then research, prioritize & start testing Ensure you are mobile optimized Develop a multichannel acquisition strategy on mobile Include mobile search and local in your mobile strategy
  • 61. Trend 6. The evolution of the ad network, The rise of demand side platforms, & the arrival of Real time bidding
  • 62. The way brands and agencies buy mobile inventory is changing We’re taking control of the buying process
  • 63. ad networks are changing Traditional networks (inMobi, Millenial, Adfonic) are changing their service offering to become more sophisticated …Or being bought by larger telcos (AdMob / google, Quattro / Apple) which ads more precision to their data
  • 64. How? Bidding directly on inventory via ‘exchanges’ Developing new tools that let buyers target consumers more accurately Developing their own ‘bidder’ or using white labeled DSP’s
  • 65. Now, a new orthodoxy Is emerging based on demand side platforms
  • 66. What is a demand side platform? DSP Enables advertisers / agencies to buy ads and target consumers in real time Identify Serve ad DSP locates consumer Place bid based on them type value
  • 67. DSP for mobile Lack of cookies has forced DSP’s to come up with alternative methods for delivering critical data If an advertiser chooses to increase downloads of a particular app the DSP: Learns Creates Auto adjusts Maximizes patterns of profile of bidding downloads traffic traffic type strategy All refined in real time
  • 68. The old system of bidding on blind inventory will become outmoded & inefficient
  • 69. What will real time bidding bring to mobile? A system in which data on the bids, available inventory & the behaviour of consumers is crunched in real time Instantaneous bids for each impression based on data & smart algorithms that change constantly in response to audience changes Transparency
  • 70. How will this effect marketers? The mobile DSP will transform the efficiency & effectiveness of buying mobile inventory. RTB can improve ad effectiveness by 20-150%* More & more agencies will have their own DSP Only knowledgeable specialists can handle these transactions successfully *Source:  ICD  
  • 71. Trend 7. 4g will accelerate the rich media space, but not that fast
  • 72. It has been nearly a decade since the first 3g networks were launched
  • 73. Now we’re seeing that excitement again with LTE or 4g
  • 74. Everything everywhere launched 4G in the UK in 2012 – tests showed it to be 5 times faster than 3G
  • 75. By may 2013 vodafone, o2 and 3UK will be able to launch their own 4g services
  • 76. Who will be using it? The Early adopters due to high Pricing The vast majority will be unwilling to break long contracts to get 4g
  • 77. How will 4g effect advertising on mobile?
  • 78. More rich media campaigns Currently most are run across wifi 4G will accelerate consumption – speed and more portable than wifi hotspots WE will see more: • Pre roll video advertising • Ads combining video, audio & interactive elements • Gamification ads • Ads utilizing APS’s
  • 79. Trend 8. The rise of facebook & social on mobile
  • 80. Until recently facebook’s problem with mobile has been well documented. Their audience was migrating to the small screen but ad revenue wasn’t.
  • 81. In 2012 facebook started the change – declaring itself a mobile first company launched promoted posts that appear in users news feeds and was soon making $500,000 a day Mobile accounted for 23% of Facebook’s $1.33B of advertising revenue in Q4 2012 - $305M mobile ads sold Their mobile app-install ads are now being used by 20% of the 100 top grossing ios apps to attract new users
  • 82. In 2013 Facebook is rolling out it’s own mobile ad network Giving networks the ability to serve ads placed with FB on 3rd party sites & aps
  • 83. What you need to know for 2013 Social networks will invest in deeper insight to enhance targeting on mobile Advancements will be predominantly Facebook & Twitter, but sites such as google & pinterest will be monitored for new opportunities Positive results have been seen though advertising on facebook’s app – set to improve with investment in targeting & consumer insight
  • 84. Trend 9. Apps vs. mobile web
  • 85. In 2012 many expected the resurgence of mobile web. But is hasn’t panned out that way. Android app revenues has doubled Q3-Q4 Facebook and others realized HTML5 was not the solution The pendulum is swinging back to apps staying for 2012
  • 86. Apple store downloads on pace to hit 60B by mid 2013 Apple app store downloads Source:  BI  Intelligence  
  • 87. Smartphone users spend more time on apps than web Total time spent using mobile web vs. apps Minutes Spent Per Month (billions) Source:  Nielsen  Smartphone  Analy-cs  
  • 88. Mobile app revenue is still growing fast Mobile app revenue (millions) 2008            2009              2010                      2011                              1012   Source:  iSuppli,  Forrester  Research,  company  releases,  BII  es-mates  
  • 89. Because Most downloads are free Mobile app store downloads, free vs. paid 2012 Source:  Garner,  September  2012  
  • 90. ‘Fremium’ is the dominant model Two-thirds of the 100 iphone apps that make the most money are free to download and generate 100% of their itunes revenue through in-app commerce % of free and paid apps % of the top 100 grossing iphone % of top 100 grossing iphone In iphone top 100 grossing Apps that use in-app commerce Apps that are games Source:  BI  intelligence  analysis  of  App  Store  data,  Jul.  2012  
  • 91. Trend 10. The market is constantly changing