Emotions Trump GadgetsLevi Shapiro, India Gadget Expo, June 19, 2014
The Future of Digital?
Apple Thinks So
First…let’s Talk About the Glass Ceiling
Multi-modal Competition
Ecosystems Compete on Cross-Screen Experience
Global annual unit sales (m)
1,000
750
500
250
0
PCs
1,250
1997 1999 2001 2003 2005 2007 2009 2011 2013e1995
Smartphones and tablets
0
Apps are eating the world
Source Flurry
Aug ‘12Mar ’11 Jan ‘12
80%Of time on mobile is
spent in apps
140
120
60
40
20
0
100
80
160
Apps
Mobile web
Total min spent on mobile apps vs mobile web (billions of minutes per month, US)
Min
ute
s sp
ent
per
month
(b
illio
ns)
Messaging is a Mobile Ecosystem
Source: comScore Mobile Metrix, US March 2013
2011 2012 2013 2014
Dollars Follow Eyeballs- FB Mobile Revenue
Mobile Desktop
59%Mobile Revenue
in 2014
0%Mobile Revenue
in 2011
Facebook revenue by source
$2.5b
Q4
$3.0b
$1.5b
0
$1.0b
$0.5b
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Mobile
Advertising
Payments Advertising
$2.0b
Q1 Q2 Q3 Q4
2010 2011 2012 2013
$2.6b
Engagement EnableseCommerce
WeChat Ecosystem Value Capture
Hardware as a Tool to Sell Digital Content
Glide’s Technical Edge
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E0
1,000,000,0002,000,000,0003,000,000,0004,000,000,0005,000,000,0006,000,000,0007,000,000,0008,000,000,0009,000,000,000
10,000,000,000
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Smartphones
SmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphones
SmartphonesSmartphones
SmartphonesSmartphonesTablets
Tablets Tablets Tablets Tablets Tablets TabletsTablets
TabletsTablets
TabletsTablets
TabletsTablets
TabletsSmart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Wearables
WearablesWearablesWearablesWearablesWearablesWearablesWearables
WearablesWearables
Wearables
Wearables
Wearables
WearablesWearables
Global Internet Device Installed Base Forecast
# O
f Dev
ices
(In
Mill
ions
)Its Not Just Mobile (eMarketer, 2013)
The Magpie effect
Offline Economy is Becoming “Appified”
• Massively contextual- Transactions are Incremental
• Your 2nd brain knows better than you do
• Wallet accessed through your mobile and gatekeepers
Neural Measurement
Source: Professor Nathan Intrator , TAU
Hey Cookie…You Talkin’ To Me?
WelcomeLevi
Web
Mobile
Context
NEXTGEN
Hours spent watching video monthly
5
12
9
33
8
Sou
rce:
Mas
habl
e, J
uly
2012
, Li
near
TV
Nie
lsen
11/
12
NON-LINEAR VIDEO VIEWING NOW EXCEEDS LINEAR TV
BRIDGING THE GAP
What Millenials Want…In Their Employer
1.Training
2. Management style
3. Work flexibility (time is currency)
4. Staff activities
5. Non financial rewards (Activism)
6. Good salary
#1 priority: “sense of meaning”
(Career Advisory Board, Harris Interactive study, 2012)
“In 2009, there were 2.5 billion connected devices. In 2020, there will be 50 billion, most of which will be products.” (Gartner, 2013)
Millenials seek gadgets & experiences
reflecting their values: Inclusive,
Personal,Relationship-based
https://www.youtube.com/watch?v=OTwJI0f8c1s
Israeli Brand: Magisto
https://www.youtube.com/watch?v=y_7yoEUrVhw
Israeli Brand: Waze
https://www.youtube.com/watch?v=5wh6BoTBx2w
Israeli Brand: JINNI
http://www.youtube.com/watch?v=OlvjzQJGDnY
Nivea
https://www.youtube.com/watch?v=UYy1GmJgFXA
Nivea (2)
https://www.youtube.com/watch?v=iMrZmSPpIRw
Motorola
https://www.youtube.com/watch?v=IIpMtWeXCaE
Heineken
https://www.youtube.com/watch?v=yyRgQJzILus
Vittel Water
https://www.youtube.com/watch?v=sjvSqDPrjGk
This is your Moonshot
Can Your Gadget Encapsulate Noble Brand Values and Yet be Freemium?
Freemium Products
• ZERO marginal cost of distribution• Low inherent conversion rate• Large scale / large total addressable market• Continuous monetization curve• Minority of highly engaged users
Characteristics of Freemium Products
• No switching cost• LTV difficult to calculate• Much larger potential audience (everyone can afford free)• Network effects easier to achieve• Advertising not as abrasive• Multiple points of monetization
Lifetime Customer Value (LTV)
• Present value of future cash flows from user• What individual user can be expected to pay• Can be aggregated over various dimensions (demographic
characteristics / early user behavior)• Marketing metric
Misunderstanding LTVLifetime Customer Value is NOT Linear or Immediate
*usually. An LTV evolution curve could theoretically be linear.
Misunderstanding LTVLifetime Customer Value is NOT Linear or Immediate
*usually. An LTV evolution curve could theoretically be linear.
Misunderstanding LTVLifetime Customer Value is NOT Linear or Immediate
*usually. An LTV evolution curve could theoretically be linear.
v
QUESTIONS?•••
