A presentation by Stijn Schuermans at WAN-IFRA 2012 (October 30 2012 @ Frankfurt). Mobile ecosystems and the new role of media publishers in the app economy
Apidays New York 2024 - Scaling API-first by Ian Reasor and Radu Cotescu, Adobe
Media and the new app economy
1. Media and the new app economy
30 October 2012
how telecoms business is transforming in the software era Updated 4 May 2012
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2. VisionMobile
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3. Trusted by industry brands
Clients an established analyst company
from
selected clients 2009-2012
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VisionMobile clients
2008-2012
Page 4
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4. We’ve taken the plunge
Mobile ecosystems herald a profound change in the basis of competition
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5. Smartphones reached 40% market share in Q2 2012
1 billion smartphones in the market already
Smartphone shipments as a % of total handset shipments | Source: VisionMobile 100M Club infographic
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6. iOS, Android became dominant smartphone OS
From handset/operator centric to platform centric
Smartphone market share by platform (Q2 2012) | Source: VisionMobile estimates Copyright VisionMobile 2012
7. There is an app for every need and taste
For every area of consumer spend
Application categories as percentage of the number of iOS apps
Source: 148Apps.biz, iTunes App Store (iOS), updated 2012-10-25
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8. App gold rush shows no sign of slow-down
with ever-growing number of apps in leading platforms
? ?
Q2 2012
Number of apps per platform | Source: VisionMobile 100M Club infographic Copyright VisionMobile 2012
9. Profound turnaround in basis of competition
100%# Commodity
modular
90%#
market
80%#
LG# 70%#
Sony#Ericsson#
RIM#
60%#
Motorola#
50%# Integrated
HTC# from cloud
Nokia# 40%# to silicon
Apple#
30%#
Samsung#
20%# Integrated
across
10%# handset
supply chain
0%#
2007# 2008# 2009# 2010# 2011# 2012#
Share of profits across top-8 handset vendors | Source: Asymco, VisionMobile estimates Copyright VisionMobile 2012
11. Media publishers as app developers
A profile of street-smart app makers
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12. The brand journey through mobile
Where are media publishers?
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13. Media in a multiscreen world
smartphone tablet smart TV
82% 42% <10%
Targeting Targeting Targeting
2 in 3 1 in 3
Planning Planning
Media publishers are behind the general developer population in targeting tablets,
but intend to catch up.
Still early game for OTT media on game consoles, set-top boxes or connected TVs.
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14. Multiple platforms, popular first
Premium
Lowest common denominator
experiences
Media publishers are slightly more likely to use iOS (and Blackberry),
and catching up on Android and Windows Phone.
14 Platforms used by media publishers | Source: VisionMobile Developer Economics 2011 – data.visionmobile.com Copyright VisionMobile 2012
15. Reach first, money second – even more so in media
General app developer Digital media
publishers
81%
54%
57% indicates reach
as primary goal
Only 17% is primarily
after making money
15 Reasons for selecting a platform | Source: VisionMobile Developer Economics 2011 Copyright VisionMobile 2012
16. Low revenues per app compared to other segments
15% to 25% less
for major platforms
Extremely low
revenue on BlackBerry
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17. Mainly indirect monetization
Advertising
Indirectly through
brand awareness
Subscriptions
17 Percentage of developers using a monetization method | Source: VisionMobile Developer Economics 2011 Copyright VisionMobile 2012
18. Engagement and revenue model are challenges
In line with most app developers
Engagement
Business model
Targeting
n = 504
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19. The brand journey through mobile
How to move from street-smart to connoisseur?
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20. Conclusion
Smartphones have triggered a mobile revolution
Fundamental and irreversible shift to app ecosystems, winner-takes-all market
Affecting all parts of the ecosystem, including media publishers
Dominating platforms are moving to 2D ecosystems, taking control over media
distribution
Media publishers are street-smart app makers
Multi-screen, multi-platform
Indirect monetization, intended to drive the core media business
Next step: figure out the business model for mobile media
Move from street-smart to connoisseur
Mobile becomes the core business
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21. get in touch
Knowledge. Passion. Innovation.
stijn@visionmobile.com
@stijnschuermans
Stijn Schuermans | Product Manager | +44 2033 844 169
Updated: 12 November 2010
Copyright VisionMobile 2012
Copyright VisionMobile 2011