Why Mobile Matters & How to Take Advantage of It

Why Mobile Matters& How to Take Advantage of it

Bernard LeongCTO & Co-Founder

http://www.yourchalkboard.com1

Outline• Why Mobile Matters:

Trends and Observations of Mobile-Web in Asia Pacific.

• How to take advantage of it: Lessons on Developing Apps in the Mobile-Web Economy.

• Marketing & Advertising in the Mobile-Web Age.

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5B Mobile Subscribers in the World

Why Mobile Matters?

75%

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48%mobile users are from

China, India, US, Russia & Brazil

521Musers in Skype, making it the largest

telecommunications company

45%of an average iPhone user’s time is

spent on making calls

69%mobile traffic are coming

from videos

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Source: Morgan Stanley, 2010

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Mobile Phonesbased on World Population

Smart Phones Feature (WAP) Phones

Basic Phones

15-20%

25-40%

40-60%

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Internet Users (M) Internet Penetration (%) Mobile Subscribers (M)/(Mobile Penetration %)

China

Hong Kong

India

Indonesia

Japan

South Korea

Malaysia

Philippines

Singapore*

Taiwan

Thailand

Vietnam

420 31.6 833 / (63.4%)

4.8 69.5 11.4 /(163.1%)

81 7.1 706 / (59.5)

30 12.3 168 / (73.1)

99 78.4 127 / (84)

39.4 81.1 48 / (97.2%)

16.9 64.6 27.1 / (N/A)

29.7 19.7 92 / (73.6%)

3.7 77.8% 5 / (136%)

16.3 70.1 25 / (110%)

17.5 26.3 56 / (81%)

24.6 27.5 89 / (38.8%)

Source: Internet World StatsCIA World Book, *IDA Official StatsMobile-Web Users in Asia Pacific Markets 2009/2010

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Mobile Internet Penetration by Market

Major Trends Ongoing in the Mobile-Web Economy8

Asia Mobile Users Drive Mobile Internet Usage

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Before 9 Jan 2007...

Web Developers Mobile Developers

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Mobile-Web Developers

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After that, the iPhone changed the mobile-web landscape

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Developers

Apps Store

Consumers

TelcosContent Providers

Mobile-Web Apps Store EcoSystem©BL

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Before you want to go mobile ...

• Why is your company or organization going mobile?

• What is the value of your mobile or web app to the consumer (B2C) or user (B2B)?

• How do you attract users to your app - via localization or content?

• Which platform should your app be on?

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Types of Apps

Web App (HTML5) Native App (SDKs)

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Lesson 1

Focus on one platform before scaling it up.

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Apps Store

Handsets(Examples)

iPhone, iPad

Nokia N97, Nokia N8

HTC Desire, Lenovo OPhone,

LG, Motorola,Samsung Galaxy

Phillips

Blackberry StormBlackberry Torch

Blackberry Playbook

Motorola MC series, LG, HTC

OperatingSystem

iPhone OS 4(Mac OS X)

Symbian OS 9.4Series 60 Rel 5

Symbian^3

Google Android2.2 (Froyo),

3.0 (HoneyComb)

Blackberry OS 5,Blackberry OS 6

Windows 7 Mobile

Revenue Model

for Developers

Developer (70%), Apple (30%) for sale

of apps.

Developer (70%),Nokia (30%) in

net refunds after credit card sales, fixed operator

billing

Developer (70%),Google (30%) -

pays carriers and billing settlement

costs

Developer (80%)per sale

Developer (70%)per sale

©BL

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Apps Store

Annual Developer

Fee

Standard Program (US$99) and

Enterprise Program(US$299)

50 Euros US$25 US$200 US$99

Market CoverageApps Store in 77

CountriesGlobal

Paid Apps: Austria, France, Germany,

Netherlands, Spain, US & UK

Free Apps: Global

US, UK & Canada, Singapore,

Indonesia, Hong Kong, Thailand,

Malaysia

Global

Downloads Close to 10B3M downloaded

per day2.7B

2M downloaded per day

N/A

©BL

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Apps Store

Payment Model

Developers paid via direct deposit into

bank account (monthly)

Credit Card or Phone Bill with

telco billingGoogle Checkout PayPal Credit Card

Market Size(by 2010)

100M iPhone Subscribers

106M Ovi Subscribers

8.5M Android Market

Subscribers

55M subscribers,35M App World

usersN/A

Resources developer.apple.com publish.ovi.comdeveloper.android

.comwww.blackberry.co

m/developerscreate.msdn.co

m

©BL

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Source: Gartner, 10 August 2010

Worldwide SmartPhone OSdistributions

778K iPhonesvs 110K Android handsets

58K iPadsSource: Mobile Traffic data from Google, Oct 2010

and ST Digital Times (iPad)

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300K apps62,126 Developers

85% iPhone, 7% iPad

Average Price: $2.43

Performance of Apple Ecosystem

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200K apps

35.4% Paid, 64.6% free

65% Android 2.2 (Froyo)

34 Mobile Devices

Performance of Android Ecosystem

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Lesson 2

Don’t put your eggs on one apps store basket!

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Freeand Premium

Version(US$3.99)

Free

Premium Version(US$7.95)

Highest downloaded paid appin Ovi Store (no competitors)

Identify the Blue Ocean and Your App might make the mark

iTunes has too many twitter apps and noneof them are monetising well.

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Lesson 3

Understand the App Store Cycle & Support

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Apps & UpdatesPurchases & Downloads Status

Mobile or Desktop initiated

Payment ModelIntegrated with Telco Operator

Check out AccountRevenue Sharing

Apps DiscoveryShare/Tell a Friend (Viral

Screenshots, Rankings, Ratings and comments

Decision to Purchase

Transaction

Repeat Process

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Lesson 4

Don’t overload content & focus on design!Sharing of Interesting Apps

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Wikipedia Epicurious Currency

Apps can be global ...

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but localization of content is important

HungryGoWhere SG Events SG Malls

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Mobile Photo-Location Based & Video Services

Instagram Qik

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Sekai Camera

Buuuk

Augmented Reality + Location Based Services

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Banking Apps in Singapore

OCBC iPad Banking App DBS Banking App

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Examples of Disrupting Technology

Square utilizes iPad& iPhone to dosecure payment.

Founded by JackDorsey (Twitter)

Raised US$27.5Mfrom Sequoia,

Khosla & Angels

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Mobile Marketing & Location Based Services

Global Brands

# of companies

Mar

ketin

g b

udge

t ($

)

Mid size companies with country-wide ops

Small Medium Businesses + Mom-Pop Shops

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Global Brands

# of companies

Mar

ketin

g b

udge

t ($

)

Mid size companies with country-wide ops

Small Medium Businesses + Mom-Pop Shops

Mobile Advertising Networks vs Marketing Budgets

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Case Study: Chalkboard

Upload Promotions

Our Web Dashboard

Twitter

SMS

Distribution Channels

Web Publishersvia HTML5 Browsers

Social Media

Local Business Consumers

3rd party mobile applications

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12.5%Coverage of ALL Singaporeans

550,000Unique Users/ Month

9 millionImpressions and doubling every 3 weeks

142%Mobile Penetration In Singapore

• 1.4m people between age 15-39

• 770,000 iPhone users

• 123,000 Android phones

• 58,000 iPads

• 1 in 3 searches are local

Case Study: Chalkboard39

Case Study: Chalkboard40

Future Directions

• Mobile Apps has extended from phones to tablets/pads.

• Ubiquitous computing in different products?

• Apps Stores of the Future? Do you need one?

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http://www.bernardleong.com

Slideshare/Twitter/GMail: bleongcw

Thank You

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