Mobile Growth & Case Studies

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PSB Academy - Mobile Boom Town Public Seminar

University : PSB Academy
Date : 29 Apr 2011 (Friday), 3pm to 5pm
Venue: PSB Academy Campus @ Delta
Speaker: Co-founder of 2359 Media, Zhou Wenhan

Want to know what it takes to develop mobile apps and its impact in the marketplace? Come down to Mobile Boom Town Public Seminar @ PSB Academy Delta Campus on 29 April 2011. Receive expert insights on Mobile Apps development!

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  • Hi, firstly, I m honoured to be here. Thank you to the staff at PSB, Ken and Piao Chun who helped to put together this talk that brought everyone togther.So I am sure everyone here has a strong interest in the mobile industry and that’s probably why you came here. Provide value by sharing expereience and some trends on the mobile industry. I would like to start off with a short introduction about myself and trends and mobile adoption rates before deep diving into 4 case studies in industries where mobile has had an impact
  • 2359 Media is Asia’s leading mobile consultancy and we help 3 main types of clients achieve business objectives through the mobile platform.For brands, we create smartphone apps that wow their customers and leave a deep lasting impression on their potential customersFor media companies, we create rich media advertising solutions that help them make money via adverting on their mobile media propertiesFor enterprise customers, we strategize and execute apps that help them increasesinternal productivity
  • To day we have create over 50 + smartphone and tablet applications from clients ranging from media companies, government to education institutes.This was all in the short span of 2 years that 2359 media has been in existence. And I mus say that we are fortunate to be right in the middle of a mobile boomSo what lead me to start this company and to answer this question, I would have to go back to about 6 years ago.
  • It started sometime around 2005 when I was just getting started in my first/second year at NUS. I noticed something interesting pop up on my phone screen below the operator name. at that time, I was think I was using a SE t610. It looks something like this and the phone was showing my approximate location. Not very accurate but it gave you a general idea of where you were. There was this day that I was on the train from Woodlands to NUS and every couple of minutes I would see below the operator name an approximate address which would say something like .“ Woodlands Ave 1, Kranji, Choa Chu Kang.”And this got me thinking to what I could do with this new information called Location.
  • So I decided that I wanted to make a ridesharing app that somehow grouped people who are nearby and going to around the same area. It really came about as a pain because if you are NUS student, you will be familiar with this scenario shown here. This is the ridicously long bus 96 queue and the queue actually streches out of the interchange.And I tot that we could have a ride sharing app to over come peoples shynessEncourage group and sharingAnd I thought that it should work on the mobile enabled because when people wanted to share a cab, the phone was always with them.So for the next 1 year, I was banging around the idea and learning what I needed to know in order to build this service. I went through books that taught me how to program a server language called JSP and J2Me and WAP and in the summer holiday of 2007, I put on the finishing touches on the site and I launched TagxeBasically what happen in the next 1 year.We did some online marketing and advertising and by dec 2007 we had about 1800 members. In the end we had to shut it down because it didn’t work outHowever after 1 year of not getting any users to share a ride even when we gave away free taxi rides., I decided to move on to the next idea since I was coming back from NOC and it was time to start my FYP.
  • But even if Tagxe didn’t work out as a product, it did help me a lot and let me tell you whyTagxe helped me get into NOCExplain NOC.Gain experience to build larger productsNOC gave me the time to think and to search for a prof for my FYPStudied computer engineeringProf in LBSTagxe help me get my FYP prof. Allowed me to self proposeProf was nice enough to let me muddle around½ of my FYP was building “NearDeals” which was a map based representation of local news and deals. Didn’t work out as a thesis project. Not hard enoughNeed improvement and shifted to mobile.2 parts of sg malls. Search and indoor navigation.Got good grades.Launches SG Malls 15K downloads, 300K in 2 years.½ was building SG Malls which lead me to being a early iPhone Dev and starting 2359 Media.Ad network play. Explain ad network. Broker the placement of ads in an automated fashion.Which lead tofirst round of funding from spring and consulting projects where other companies discovered us and ask us to make iphone app
  • Step by step progression that is only clear later on.For younger folksMorale: Take the leap to action. You build experience and at that age, learnt a lot more than. People want to talk to people who have done something. I was one of the few people who had product building and marketing experience. And it certainly helped me going forward. Builds track record with industry and investor. You have to level up stage by stage and trust that it will lead you somewhere as long as you keep working and keep on track
  • So now that you know a little about me and how I got started into this line, I would like to shift to the present and I will share a bit about how the mobile indsutry is evolving and why you should be excited about it.We will look at a few macro trends that have been driving the growth of mobile as the next IT platform. We will then transit into 4 case studies which highlight 4 specific industires that are chaning because of mobile devices and are also dear to 2359 media’s growth. Finally I will list several ideas that are waiting to for someone to build on and how a person might get started.
  • Mobile is certainly the hot topic right now. Recently I went to a advertising conference in New York called OMMA global and there were 4 tracks at the conferences. Tracks are like specific programs so that you can go to. And track consists of the sessions and speakers that that are organised around a specific interest topic.wThere were 4 tracks called Social, Display, Video and Mobile. However in every session, no matter which track the conversation always went back to Mobile and how it was affecting social or display or video.Every phone user is interested in their phone and knows what it can/cannot do. Give them a smartphone and suddenly with apps, the phones become unlimited in their abilities.People are starting understand how powerful and the effect that the phones can have on their lives.And with more people using these smartphones, the envy effect helps speed up the purchase of these devices.We just have to take a look at the sales numbers to confirm that smartphones are becoming the device of the future
  • Shipment rate of apple devices 3 quarter after their launchGreen oraange blueSpeed of adoption of mobile devices is the fastest everThis chart shows how mobile devices are being sold faster and faster. The iPod sold only a few hundred thousand whilethe iPhone sold about 2 million while the iPad sold about 15 MM in the first 3 quarters.
  • And it is just not Apple devices. Android devices, very poplar smartphone platform, kept pace with iPhone and have actually out sold the iPhone in terms of sheer manufactured devices.
  • Why si this so?Usefulness of device => Larger marketThe iPod could only play musicThe iPhone when it started was just a iPod with Phone and BrowserThe iPad came with apps!Cost will keep going down and adoption will spread from the richer countries to globally.Accessible of use. Cover even the aunties.Adoption rate will reach crtical mass.And it won’t take long because
  • Poised to overtake PC+laptop shipmentThis is an exicitying year because 2011 is the inflection point in terms that the mobile device sales will actually out number the number of desktop + notebooks soldWhat this means that more people will actually get their IT needs fufilled by their smartphone or tablet.In fact in developing countries, predicted that the smartphone will be the IT platform of choice.Similar to how developing countries skipped landlines in favor of a fully wireless telecom network, these same countries will skip desktop/laptops for smartphones and tablets.The developing countries are not left out. In developing countries where consumers have more discretionary budgets, consumers start to find that they increasingly own multiple devices and use the device that fits the use case the best.Therefore what we see if that people are increasing shifting their time to mobile platforms.
  • Right now mobile spends about 50 minutes on mobile compared with 2 and a half hour on the internet and 4 hours on TVThis is pretty good for a device that just became popular in the past few years.The growth in terms of time has also been explosive almost 30% growth year on year. This far outstripes the second contender by at least 3 times.Which brings me to the next point. In terms of technical competence, tablets and smartphones lost out to desktop and PCs. After all keyboard trumps touch based input in WPM and desktop are more powerful and can do so much more.However when new revolutionary innovation comes around, they often succeed not by being better than the incumbant in the metrics where the incumbant is strong but by offering a different metric of success.So what is driving all the growth in mobile devices?
  • Use cases that mobile is more suitableYou can split mobile application use into 2 main groups. The first group is the same app that was used on Desktop only.Then there are apps that were desktop based but will becoming increasingly dominatiantly used via MobileThe 3rd types of apps are apps users discovering new applications that they wouldn’t have want to use on the Desktop but make plenty of use on mobile.One example is social network. First used thru desktop. Mixi. Facebook #1 app on iphone and android. Convenience. 247. fast to start. Fast updates. New apps that are mobile only. SMS/ Navigation, VOIP. SG malls. Won’t make sense on desktop cause the need and solution was not connected.Photo, check intDesktop more work oreintation. Mobile more consumer based.From andectoal experience, tablets and mobile are great for Non work applications andThere are some use cases are more inclined to be time shifted from desktop to mobile mainly because of 3 main reasonsKey factor: Convivence of access[App] – [Numbers] – [Why]SG Malls – Information when you want it. Contextual use caseSocial Networking FB/Mixi – [Slides] – 24/7 access of the phoneTime Filling Games – App Store Charts – Dead Time use
  • ConclusionThe opportunity just startedDevices are just getting popular and will sell a lot more especially in developing countriesReach critical mass of devicesA lot of software will be rewritten, not windows basedA lot of new use cases arise due to new devicesIt is a platform that has it’s own use case and should be looked at different from mobile/desktop. New capabilites of device. Great time to be mobile developers and we are hiring
  • Go into 4 industry case studies that 2359 media has experience in.Case Study 1: Shopping on MobileShopping is close to my heart not because I like to shop but more because I don’t like to shop. I find it an every efficient waste of time and an inefficient activity.Which was the main reason why I did SG Malls as my first iPhone app. I want to quickly go into a shopping malls, get my purchase done and then get on with my life.Given the size of the market, retailers are highly interested in making sure they can help you transact.And the phone can really help you in shopping because it merges a offline activity with online information.Some examples of how shopping is being re-defined by mobile now.
  • Product research prior to purchasingResearch platform of choice.google search to search for products and informationResturant/Reviews reviews to gain information on whether you should make the purchaseFor ad-hoc searchNearby function helps filter list of resturantsBar code scanning reduces time to search for the correct productSo if you a retailer, you want to be able to provide all this information so that you get the consumer to make the purchase quickly and reduce purchase anxiety
  • One of the projects we worked onPrice Checking (SingTel PricePal) to reduce price http://www.youtube.com/watch?v=4BYgLV_y3bIScan a barcode and you get reviews and prices at nearby retailersReduce purchase anxiety. This is probably the best. Serious walk 10 min just to save 10-30 cents
  • And perhaps the greatest challenge right now in shopping is how to complete the entire purchase loop.All the apps above give you information on the products, how good they are, where you can buy it, how much it cost but in the end what the retailer cares about is “Do I make money on the sale”?And it is rare espcially in this part of the world.A few players have done it well and I would like to show you what eBay has done.Stop at 1:05And that is something that a player like eBay has done very well.Rather than explain what the app does, I will let Ebay demo it for youIt doesn’t look like an exciting appProcess so simpleeBay says that “nearly $2 billion” of the $53 billion in merchandise transactions took place via mobileBeing such a big player, inventory, search, purchase and fufilmentEbay App: http://www.youtube.com/watch?v=1NmQUEfZ3FkIn translating their purchasing process to mobile, they have made it easier to purchase from eBay and the results speak for themshevels.it proves that if you can make a more efficent search and browsing and tranascationexperience will buy consumers will use it because it is simply a more
  • OpportunitiesFor retailers out thereits not just mobile technology but how you get the entire supply chain into the mobile phoneGetting the data into the backendPayment and order fufilment remains the largest barrierAdapted to local marketsOpportunity exists skip e-commerce and straight to m-commerce.
  • That’s for mobile shoppingFrom earlier slides,Case Study 2: Brand Extension via App So many devices sold that And mobile has reached cirtical mass for their to considerWhen new media platform arise, Advertisers are always look for new ways to make an impressionIf done right, Lower global cost and higher reachReach a global ,affluent audienceOne hit wonders. Millions of downloads if done rightbecause to the personal connection people feel to their phones, it makes a great marketing platform for brands to connect with consumers over the phoneBrands have done Make sure of dead time to entertain Similar to sponsored shows on TVand get u to feel better
  • Coca Cola (http://www.youtube.com/watch?v=0YXw7Bgc45E)Introduce appWhat is the first number of the 4d number first prize what will open nextA lot of downloads but what is interestingProduct placement and funUsed in social settingVirality by have friends use it in a social settingBeautiful animationFun goes well with the brand for a enjoyable beverage
  • Zippo (http://www.youtube.com/watch?v=UH8QxlkfcOw)Introduce zippo. There is audioStop at 1:00Uses the phone to give you a Simple Product TrialIn marketing, trial is one of the most effective wayUse of accelerotoer to flick open and close the lighterInteraction of physical and virtual world to bring the audience closer to the real experienceVery good example of a product trial app
  • (http://www.clickz.com/clickz/news/1710980/volkswagens-iphone-app-delivers-sales) For a car companyImpressive campaignPlayEntertain, win a careSocial: race w friends, post to youtube.Smart agency Worked with exisitng developer to gain existing user baseDrove real salesExample of a very well created campaign
  • Has to look so beautiful you want to lick it (icon, graphics, bars)Superficial world where people decide to download based on your icon and screenshotsWhen you get into app, it has to be beautifilProvide fun and entertainment while increasing brand engagement so that people rememberIntegrate social and talking points so that you will show your friends share with friends to be viral.3 basic factors for a good branding app.See a lot more branding appsUp to creativity of developers and companies
  • But apps are only part of the answer becauseAlso need to promote app. Need them to start looking at your app.Reach out to new users who might be unfamilar with your brand therefore won’t download a unknow appOne of 2359 Media’s speciailiteUnfortunaly Current State of advertisingSimple banner -> app downloadsPoor, uninspring compared to what smartphone users expect of apps
  • Work with publishers to create inventory, create RM Ads that inspire both the audience and their advertisersRich media designed to get people to interact with the advertismentInterested? Click thru and actually learn more about the product through a beautiful expeience.Touch and media rich capabiltiesIntegrate branded expereiences with exposureGold standard of mobile ads in the near future
  • Benefits to all parties15x: user look at ads more foten10x: longer, deeper lasting impresison5x get paid more to support new media initiavicesUer enjoyAdvertiser have been impressionPublishers get paid moreThat’s why the foucs2359 media only compnay in APAC to push rich media adsCore and focus going forward
  • Other than trying to sell you stuff,Case Study 4: Enhancing Business productivityNot just selling you products but also increase productivity within the enterpriseExamples: Pest Control Company (get images)Problem: inspection of facilitlies like resturants and hotelsHad a army of inspectors going around a country to do inspection. Then inspectors returned and filled in paperwork. In short the process was manual and prone to missing documentation.Data entry errorsConsultant & strageize a end to end solution that can be easily implementedEnd to end solution using phone to increase productivytMake the paperwork process as short as possible. Avoid data entry by using QR code, photos and option fields
  • SolutionUse cheap devices (chinese android) with in built array of sensors. 300 downloadsGave to every inspecter3g connectedAt location, check in. customer know that you were thereChecklist of checkingTake photo of that areaInfo via tappingPhone was used to collect data and transmit to server over the 3G networkSupervisors and client would easily review and take action.Linked up different data like photos, location, time and words via a single device. Android App with a backend system.Managedispere fleet of inspector
  • [Down]Reduce inspection time from 35 min to 15 min[Down]Reduce admininstration support required[Up]Customers assured of quality[Up] More data collected[Up] Data always availableResults: Keep track of workers and ensure checking process was done via a checklistFaster inspectionMore data collected with instant retrivalA lot of use cases. Business use no longer limited to email. Use sensors to do real work.
  • 4 case studies of industires.Impressed upon you that rapid adption will change lifestyle.2011 and 2012?Areas that will be hot in a couple of monthsNext major sensor: NFC. Andorid and iphone 5.Ezlink cardNFC merge offline and onlineTablets. Pretty new. iPad only. Android coming out.Under mobile but different from smartphonesMedia consumption and productivitStory (SXSW, tradeshow, setup booth sponsored by IDA, equipment, effectiveness of iPad, business card close rate.)Developing countrisOn symbain right now. 3g not that great. Smartphones will become cheaper and people wil start buying. Serveries require are different. If from there do think of how mobile can work. Huge untappedDeveloped50% of workforce have smartphones.Esp non office workers.Company owner. Suggest where you can think of how mobile can help productivity.
  • Ending.
  • Mobile Growth & Case Studies

    1. 1.
    2. 2.
    3. 3. Developed over 50+ iPhone/Android Apps<br />
    4. 4. “Choa Chu Kang Ave 1”<br />“Kranji”<br />“Woodlands Ave 3”<br />
    5. 5.
    6. 6.
    7. 7.
    8. 8.
    9. 9.
    10. 10. Faster and faster adoption rate<br />
    11. 11. Faster and faster adoption rate<br />
    12. 12.
    13. 13.
    14. 14. Mobile <br /><ul><li>#4
    15. 15. 50 min daily
    16. 16. 28.2% growth</li></li></ul><li>Mobile<br />Desktop<br />Office Work<br />SG Malls<br />Social Network<br />Navigation<br />Gaming<br />Programming<br />Media<br />Camera Apps<br />Communication<br />Convenience & Context <br />
    17. 17. Critical Mass of Devices<br />Desktop to Mobile Migration<br />Increasing Device Capabilities<br />
    18. 18. Shopping on Mobile<br />
    19. 19. Product Reviews<br />
    20. 20. Reducing Purchase Anxiety<br />
    21. 21. $2 Billion Transacted<br />
    22. 22. Mobile Shopping 2.0<br />Need to be able to complete the value chain<br />Inventory Data<br />Purchase and Payment<br />Fulfillment<br />
    23. 23. 50 Minutes Daily | 300 Million Smartphones a year<br />
    24. 24.
    25. 25.
    26. 26.
    27. 27. Branding done right<br />Viral<br />Fun<br />Beautiful<br />
    28. 28. Advertising is poorly done now<br />
    29. 29.
    30. 30. 15x more Tap thru<br />10x longer Ad engagement<br />5x higher CPM<br />
    31. 31.
    32. 32. Mobile used for data collection<br />
    33. 33. Significant productivity gains<br />
    34. 34. <ul><li>NFC
    35. 35. Tablets
    36. 36. Developing Countries
    37. 37. Enterprise </li></li></ul><li>Zhou Wenhan<br />(+65) 9046 7340<br />wenhan.zhou@2359media.com<br />@ybother<br />

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