Mobile Content –
Discovery & Monetization


          access.mobile
       Nov 2011, London




              KF Lai
    CEO & Co-Founder, BuzzCity
If you build it, will they come?




                                   1
A-1. Building Traffic – Understanding User Preference

 Some lessons from Games:
 • 42% of UK consumers use smartphone
 • Only 9% users claim they have never played games on mobile


1.   Changing Demographics : typical gamers are between 20-25 and
     more mature gamers (above 40) are emerging
2.   Female gamers make up 29% globally, 49% in US/Thailand,
     47% in South Africa
3.   Regular engagement: 46% download weekly or fortnightly and
     40% gamers play every day
4.   Recreational time-fillers : 32% users claim they play a mobile
     game at every chance they get.
5.   Most mobile users prefer sophisticated plotlines beyond
     traditional casual games
6.   Feature phones still form a significant part of the market



                                                                  2
A-2. Distribution is Crucial


 12% of users claim they cannot find what they
 want
 1. Collaborate with platforms that encourage discovery
 2. Make use of every media opportunity to build
    consumer awareness prior to download


 Media Type
 • Own Media
 • Paid Media
 • Earn Media



                                                      3
A-3. Paid Media : eg. Recent Campaign




                                        4
A-4. Earn Media

 When fans are not .....




                           5
B. The Challenge of Monetization




                                   6
B-1. Monetization Models


Methods                    Considerations
1. Try and Buy             1. Time
2. Virtual Goods           2. Culture
3. Mobile Ads              3. Payment Options
4. Mobile Rewards          4. CPM
5. Upgrades/Updates
6. Cross Selling
7. Mix & Match
                                        Apps Monetization Secrets
                                        http://blog.buzzcity.com/



                                                               7
B-2. Examples
                                                         Tencent QQ
                                                         •   Largest Social Network
                                                             in China
                                                         •   U$3B virtual goods
                                                             revenue in 2011,
                                                             ~50% Y/Y




       Angry Bird : A Hit




                    Indonesia + South Asia
                                                Turkish Mobile Publisher
                    •   Virtual Items           •   100M daily pageviews (SA, ID)
                    •   Issues in payment       •   ~U$15M annual revenue
                        collection              •   But watch those CPM!
                    •   Set up “Resellers” to
                        bypass carriers




                                                                                      8
B-3. DJuzz Example


                         Ibibo Browser
                         • CPD campaign (3-31 Oct), $100/day India
                         • Before campaign (Sep) : 10,763 downloads
                         • After CPD campaign (Oct): 57,939 downloads
                         • Monetization: Free App / Ad Supported




                         Need for Speed Underground (EA Mobile)
                         • Promoted on Landing Page
FREE ad-supported free   • Uploaded Sep – to date > 500K downloads
                         • Monetization: Try and Buy
mobile games portal @
     m.djuzz.com




                                                                     9
B-4. DJuzz Example (2)

                         Monster Flight (The Mobile Gamer)
                         • Promoted on the Landing Page
                         • Uploaded Oct 17, ~30K downloads to date
                         • Monetization: Freemium




                                       GluGames
                                       • Promoted on Landing Page
                                       • Live on Djuzz from Nov, 16 games, >40K downloads
                                       • Monetization: Free App / Ad Supported




                                         Shufflr – where videos find you! (Althea Systems)
                                         • Promoted in the What’s hot category
                                         • Live on Djuzz from Aug, >35K downloads
                                         • Monetization: Try and Buy




                                                                                             10
B-5. Device Fragmentation
Comscore (Oct 2011, USA)
   •  Mobile devices account for 7% of web traffic (2/3 cell phone, 1/3 tablet)
   •  37% of cell phone traffic originates from WiFi
   •  iPad accounts for 97% of tablet traffic


 Gartner:
                              2Q11     2Q11 Market          2Q10    2Q10 Market
     Company                  Units       Share (%)         Units      Share (%)
     Nokia                   97,869            22.8       114,473           30.3
     Samsung                 69,827            16.3        65,328           17.8
     LG                      24,420             5.7        29,366            8.0
     Apple                   19,628             4.6         8,743            2.4
     ZTE                     13,070             3.0         6,730            1.8
     RIM                     12,652             3.0        11,628            3.2
     HTC                     11,016             2.6         5,908            1.6
     Motorola                10,221             2.4         9,109            2.5
     Huawei                   9,026             2.1         5,276            1.4
     Sony Ericsson            7,266             1.7        11,008            3.0
     Others                 153,662            35.8       103,412           28.1
     Total                  428,661          100.0        367,987         100.0


                                                                                   11
B-6. Internet / Music Phone for Under U$40?




                                              12
B-7. BuzzCity

BuzzCity is a mobile media company offering                              Advertisers

  brands and agencies access to a global
advertising network on the mobile Internet
                                                                                                             Agencies
                                               Campaign
                                              Development




                                                 Media




                                                                  Internet       Outdoor,         Print                TV
                                                   Mobile                       Radio, etc.
                                                                    (PC)




                                                    Publishers
                                                         (5000)
                                                                        Community        Portal       News       ... more categories
                           Graphical or
                           Text Banners
                                                     Targeting                                     By
                                                                                                   Handset
                                                                                                   Operating Systems
                                                                                                   ……


                                                     Spending
                                                                       Cost-per-Click (CPC), Daily Budget, …


                                                                                                                        13
C. Take-Away




               14
C-1. Conclusions

The Challenge of M-Commerce lies in Sustainable
Recovery


Brands / Companies
• Get Your Mobile Sites Up Now
• Your customers are on mobile Internet. Are you?
• Build apps for specific platform if you know your
   customers are there. Otherwise, watch for HTML5


Media Companies / Publishers
• Capture the audience before loyalty shifts
• Figure out your monetization strategy

                                                      15
Thank You
            http://www.buzzcity.com/




                                   16

Roadshow Europe Buzz City - KF Lai

  • 1.
    Mobile Content – Discovery& Monetization access.mobile Nov 2011, London KF Lai CEO & Co-Founder, BuzzCity
  • 2.
    If you buildit, will they come? 1
  • 3.
    A-1. Building Traffic– Understanding User Preference Some lessons from Games: • 42% of UK consumers use smartphone • Only 9% users claim they have never played games on mobile 1. Changing Demographics : typical gamers are between 20-25 and more mature gamers (above 40) are emerging 2. Female gamers make up 29% globally, 49% in US/Thailand, 47% in South Africa 3. Regular engagement: 46% download weekly or fortnightly and 40% gamers play every day 4. Recreational time-fillers : 32% users claim they play a mobile game at every chance they get. 5. Most mobile users prefer sophisticated plotlines beyond traditional casual games 6. Feature phones still form a significant part of the market 2
  • 4.
    A-2. Distribution isCrucial 12% of users claim they cannot find what they want 1. Collaborate with platforms that encourage discovery 2. Make use of every media opportunity to build consumer awareness prior to download Media Type • Own Media • Paid Media • Earn Media 3
  • 5.
    A-3. Paid Media: eg. Recent Campaign 4
  • 6.
    A-4. Earn Media When fans are not ..... 5
  • 7.
    B. The Challengeof Monetization 6
  • 8.
    B-1. Monetization Models Methods Considerations 1. Try and Buy 1. Time 2. Virtual Goods 2. Culture 3. Mobile Ads 3. Payment Options 4. Mobile Rewards 4. CPM 5. Upgrades/Updates 6. Cross Selling 7. Mix & Match Apps Monetization Secrets http://blog.buzzcity.com/ 7
  • 9.
    B-2. Examples Tencent QQ • Largest Social Network in China • U$3B virtual goods revenue in 2011, ~50% Y/Y Angry Bird : A Hit Indonesia + South Asia Turkish Mobile Publisher • Virtual Items • 100M daily pageviews (SA, ID) • Issues in payment • ~U$15M annual revenue collection • But watch those CPM! • Set up “Resellers” to bypass carriers 8
  • 10.
    B-3. DJuzz Example Ibibo Browser • CPD campaign (3-31 Oct), $100/day India • Before campaign (Sep) : 10,763 downloads • After CPD campaign (Oct): 57,939 downloads • Monetization: Free App / Ad Supported Need for Speed Underground (EA Mobile) • Promoted on Landing Page FREE ad-supported free • Uploaded Sep – to date > 500K downloads • Monetization: Try and Buy mobile games portal @ m.djuzz.com 9
  • 11.
    B-4. DJuzz Example(2) Monster Flight (The Mobile Gamer) • Promoted on the Landing Page • Uploaded Oct 17, ~30K downloads to date • Monetization: Freemium GluGames • Promoted on Landing Page • Live on Djuzz from Nov, 16 games, >40K downloads • Monetization: Free App / Ad Supported Shufflr – where videos find you! (Althea Systems) • Promoted in the What’s hot category • Live on Djuzz from Aug, >35K downloads • Monetization: Try and Buy 10
  • 12.
    B-5. Device Fragmentation Comscore(Oct 2011, USA) • Mobile devices account for 7% of web traffic (2/3 cell phone, 1/3 tablet) • 37% of cell phone traffic originates from WiFi • iPad accounts for 97% of tablet traffic Gartner: 2Q11 2Q11 Market 2Q10 2Q10 Market Company Units Share (%) Units Share (%) Nokia 97,869 22.8 114,473 30.3 Samsung 69,827 16.3 65,328 17.8 LG 24,420 5.7 29,366 8.0 Apple 19,628 4.6 8,743 2.4 ZTE 13,070 3.0 6,730 1.8 RIM 12,652 3.0 11,628 3.2 HTC 11,016 2.6 5,908 1.6 Motorola 10,221 2.4 9,109 2.5 Huawei 9,026 2.1 5,276 1.4 Sony Ericsson 7,266 1.7 11,008 3.0 Others 153,662 35.8 103,412 28.1 Total 428,661 100.0 367,987 100.0 11
  • 13.
    B-6. Internet /Music Phone for Under U$40? 12
  • 14.
    B-7. BuzzCity BuzzCity isa mobile media company offering Advertisers brands and agencies access to a global advertising network on the mobile Internet Agencies Campaign Development Media Internet Outdoor, Print TV Mobile Radio, etc. (PC) Publishers (5000) Community Portal News ... more categories Graphical or Text Banners Targeting By Handset Operating Systems …… Spending Cost-per-Click (CPC), Daily Budget, … 13
  • 15.
  • 16.
    C-1. Conclusions The Challengeof M-Commerce lies in Sustainable Recovery Brands / Companies • Get Your Mobile Sites Up Now • Your customers are on mobile Internet. Are you? • Build apps for specific platform if you know your customers are there. Otherwise, watch for HTML5 Media Companies / Publishers • Capture the audience before loyalty shifts • Figure out your monetization strategy 15
  • 17.
    Thank You http://www.buzzcity.com/ 16