adtech SF 2012 Mobile apps creating utility and driving downloads Evan Neufeld

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Understand & Profit From the Mobile Internet1© 2011 Mobile Intelligence Solutions. Proprietary and Confidential. All Rights Reserved.

Understand & Profit From the Mobile Internet

Confidential & Proprietary

Key Trends In Mobile App Adoption & Usage In 2011 & Beyond

Evan Neufeld, CMO, Mobile Intelligence Solutions

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Agenda

1. The Past

2. The Present

3. The Future

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The Past

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Tremendous Change Over The Past Few Years

1. The Death of The Pre-Browsing Mobile Internet 1. From 1 in 10 to 4 in 10

2. Vastly Improved Speeds & Feeds3. The Birth of the Application Ecosystem

1. From 0 to 4 in 10 in 4 Years (give or take) 2. 25 billion downloads for Apple alone YTD in ‘12

4. The Shift from Dumb To Smart Phones 1. The Razr (2002) 2. Palm OS Treo (2002) 3. BlackBerry (2003)

4. The iPhone (2007)

5. From “Mobile” to “Mobility” 1. 8.5mm iPads sold in the US in 2010

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The Present

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Mobile 2.0 Behavior Is Here!

1. Tri-Modal Content Consumption• 1. Apps & Web & Tablets

2. Shopping• 1. 70% use Smartphone while shopping

2. 48% use Smartphone to get coupons

3. Search1. 20% of all searches now conducted on mobile devices

4. LBS1. 31% use mobile devices to find local restaurants or local businesses

5. News1. 50% check news daily

Source: The Mobile Movement Study, 2011

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Apps A $1O Billion Market, Growing Exponentially

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What Are We Willing to Give Up To Keep Our Smartphones?

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The Future

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Paradigm Shift In Two Years…

1.4Mobile Devices Per Human

263mmAmericans Own a Cell Phone

50% of Americans Own Smart Phones

20% of Consumers Own a Tablet

Sources: E-Marketer, PEW, Harris Interactive, Cisco

50xGrowth in Smart Phone Traffic

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All Projections Point to Exponential Growth…

Mobile Access to Rival PC Acccess by 2013/14

M-Commerce Spend to Grow 3x by 2015

Mobile Advertising Grows 2x by

2015

Mobile Searches Grow 4x by 2015

Sources: e-Marketer, Gartner, RBC Capital

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Will the Appification of the Web Come to Pass or Not?

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To Date Preferences Have Depended on Content Type…

Category Prefer apps

Prefer browser

Media and Entertainment:    Social networking 54% 46%Local info 46% 54%News 37% 63%Music 55% 45%Games 61% 39%Video 42% 58%Sports 33% 67%Blogs/blogging 25% 75%Product reviews 22% 78%

Travel and mapping:    Maps/directions 52% 48%Research travel 25% 75%Check travel reviews 23% 77%Check travel itinerary 32% 68%

Banking and finance:    Check bank account 42% 58%Conduct bank transactions 39% 61%Budgeting 44% 56%

• Consumers prefer using mobile web browsers to downloadable mobile applications except when interacting with social media, games, maps and music.

• For the Media & Entertainment and Consumer Products/Shopping categories overall, 66% of the respondents say they prefer browsers.

Source: Pew  Research  Center's   Project  for  Excellence  in   Journalism  and  Internet &   American  Life  Project 2011

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Games, Weather, Social, Maps Dominate Downloads

Source:http://www.xcubelabs.com/smartphone-mobile-app-usage.php

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Source: Insight Express Digital Consumer Portrait August 2011

Demos & Devices Type (inc Tablet) Will Continue to Be the Great Predictors of Adoption & Usage

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Still A LOT of Feature Phones Out There ….

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Tablets Have Their Own Unique Use Case: More & Frequent Usage Across Apps & Web

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Some Wildcards

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Source: Pew  Research  Center's   Project  for  Excellence  in   Journalism  and  Internet  &   American  Life  Project 2011

1. Key Challenges Remain For Apps In Terms Of Discovery & Usage

1. Average adult has JUST 18 apps on his or her phone

2. 1 in 8 users has paid to download an app

3. Vast majority of consumers < 30 mins a day using their apps

4. Time Spent on Android Apps 1. Top 10 = 43% of all usage

2. Top 50 = 61% of all usage

5. Usage skews younger, male, & affluent

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2. Web vs Apps 2.0

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3. OS Wars FAR from Over …

41 %27 %

20%

6%• Significant Demo & Usage Variance Between OS still• Android Driving Volume of New Phones• Windows Surprisingly Strong• RIM In Free-Fall

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4. How Does The Cloud Play Into All This?

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Conclusion: Learn To Love The Liger …..

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Because Evolution Is Still Happening …

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evan@mobintsol.com