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November 2012!

Marketing in the Mobile First Era!

Richard Firminger, GM, EMEA!
Flurry Track Record!



Number 1 Mobile Reach !
Monthly Unique Users!     720M!



Number 1 Analytics!
Application Developers!    85K!
Applications!             240K!

Monthly Unique             60B!
Sessions!


Number 2 Ad Network !
Monthly Clips!            120M!
The Rise of Mobile Apps!

 Flurry Sessions per Month!
                                                                         Facebook vs. Social Apps
Billions




           50
                                                                                         26
                                                                             21          MINS
                                                                            MINS
           40
                                                                             Web          Apps


           30                                   Web Browsing vs. Apps



           20                                      74           81
                                                  MINS         MINS


                                                   Web          Apps
           10



           -
                Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul
                08 08 08 09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 11 11 12 12 12 12
The Fastest Adopted Technology. Ever.!

iOS & Android devices vs. top technologies, 5 years after introduction!
!



                                  2X                                               3X
!


10XFASTER than the             FASTER than the                             FASTER than current
1980s PC REVOLUTION         1990s INTERNET BOOM                         2000s SOCIAL NETWORKING




                       Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry!
Addressable Market to Surpass 1 Billion Next Year!

Active smartphone & tablet devices!
 Total Addressable Market!
 Aggressive: 5B WW Mobile Device Owners!
 Conservative: 2B WW Adults, Middle Class or higher!
                                                                      1.1 B
 Upside: !
 Smartphones – dropping prices, especially Android!
 Tablets – little replacement, mainly new; sub for PCs!
 Connected TVs – to be shipped!
 Reference:!
                                                          660 M
 2.3 Billion Internet Subscribers today!



                                                331 M

                            76 M
       23 M
     Aug 2009             Aug 2010             Aug 2011   Aug 2012   Aug 2013E

                                                                        Source: Flurry Analytics!
Apps Are Disrupting the World!

Top Countries by Active iOS & Android Devices (millions)!

 165

       128




               31     28       22       19        17          16            13             13

  US   China   UK   S. Korea   Japan   Germany   France     Canada          Spain         Brazil

                                                     Source: Flurry Analytics active devices July 2012!
Apps Are Disrupting Emerging Markets!

Fastest Growing iOS & Android Markets by Active Devices!

401%



         279%

                 220%        217%
                                            196%          193%          193%           189%          185%           171%




 China   Chile   Brazil     Argentina         Iran        Vietnam        Mexico         Russia        Turkey         India

                     Source: Flurry Analytics, July 2011 – July 2012, countries with at least 500k active devices as of July 2011!
Microsoft Blows by a Beleaguered Research in Motion!

Flurry New Project Starts, RIM vs. Microsoft!
!
                                                                                                                         6%
6%
             WINDOWS PHONE                  BLACKBERRY

5%


                                                                                                         4%
4%
                                                                                                 3%

3%                                                                    3%                3%
                                                                               2%
                                                             2%
                                                   2%
2%
              1%                           1%
      1%               1%        1%                 1%                         1%                      1%
                                                             1%       1%                         1%                     1%
1%                                         2%                                           1%
      1%       1%                1%
                       1%
0%
     Jun 2011 Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012


                                                                                                        Source:	
  Flurry	
  Analy/cs	
  
Microsoft Sets Its Sights on Android!

Flurry New Project Starts Q2 2011 vs. Q2 2012!
                  1%   1%                      3%     1%




          27%
                                         28%




                               71%                            68%




                   Q2 2011                       Q2 2012

            iOS             Android   Windows Phone        BlackBerry

                                                                    Source:	
  Flurry	
  Analy/cs	
  
Revenue Is Scaling!

               WW iOS & Android App Revenue by Source!
               !
Billions	
  




                 $9
               !       ADVERTISING REVENUE
               $8
                        PREMIUM & IAP REVENUE                 23%
               $7

               $6

               $5                18%
               $4                                             77%
               $3
                                 82%
               $2

               $1

               $-
                                 2010                         2012E
                                                  Source: Flurry Analytics, forecast based on Flurry analysis!
Mobile App Usage Overtook Online in 2011!

U.S. mobile apps vs. web consumption, minutes per day!
!
    WEB BROWSING              MOBILE APPS
                                                                                                        94	
  
                                                                          81	
                         MINUTES	
  


                               70	
   66	
                  74	
         MINUTES	
        72	
  
   64	
                       MINUTES	
  
                                            MINUTES	
  
                                                           MINUTES	
                     MINUTES	
  
  MINUTES	
  


                 43	
  
                MINUTES	
  




       June 2010                   Dec 2010                     June 2011                      Dec 2011
                               Sources: comScore, Alexa, Flurry Analytics; data includes Smartphones & Tablets, U.S. only!
Mobile Apps Dominate Time Spent on Smartphones!

Share of time spent on smartphones!
!

                                         More than
        18.5%
        Browser
                                       80%
                                      of mobile minutes
                  81.5%               are spent in apps
                   Apps



                                                Source: comScore, March 2012!
The App Audience Behaviour & Growth!
Mobile App Usage Is “Prime Time All the Time”!

                                   Daypart comparison, people 15+ using medium in U.S.!
                                   !
%	
  of	
  Audience	
  Share	
  




                                   70%

                                             TELEVISION           INTERNET                  iOS & ANDROID APPS

                                   60%




                                   50%




                                   40%




                                   30%




                                   20%




                                   10%




                                   0%
                                     5am   6am   7am   8am   9am 10am 11am 12pm 1pm               2pm        3pm        4pm        5pm        6pm        7pm        8pm         9pm 10pm 11pm 12am 1am                                 2am        3am         4am

                                                                                                                                                                                                                                         Hour	
  of	
  Day	
  
                                                                          Sources:	
  TV	
  &	
  Internet	
  dayparts	
  from	
  analysis	
  by	
  Michael	
  Zimbalist	
  (2/10);	
  Nielsen	
  Na/onal	
  People	
  Meter;	
  comScore	
  Media	
  Metrix	
  	
  	
  
                                                                                                                                   Mobile	
  applica/on	
  daypart	
  from	
  analysis	
  by	
  Flurry	
  (8/11);	
  Flurry	
  Analy/cs,	
  n	
  =	
  15.2M	
  DAUs	
  	
  
Even Canabilising Prime Time TV Viewing!

Time spent using smart devices while watching TV!




    1.61.6	
  
       HRS	
  
    HOURS
                                 1.7
                                HOURS
                                                                                                                84%
                                                                                                            of mobile device
                                                                                                            owners spend over

                                                                                                       1.6 hours 	
  
                                                                                                  per day using mobile
                                                                                                devices while watching TV

      TABLET               SMARTPHONE
     OWNERS                  OWNERS

               Sources:	
  OPA	
  /	
  Magid	
  Portrait	
  of	
  Today’s	
  Tablet	
  User	
  Wave	
  II,	
  July	
  2012;	
  Portrait	
  of	
  Today’s	
  Smartphone	
  User,	
  August	
  2012	
  
Mobile Ad Spends Are Taking Off!
A Shift in Ad Spending Is Inevitable!

2011 U.S. ad spending vs. consumer time spent!
!
 43%
         40%
                                                    AD	
  SPEND	
  PER	
  MEDIA	
  
                                                                 TIME	
  SPENT	
  PER	
  MEDIA	
  

                29%

                                       22%
                                                 23%

                               16%
                                                      11%
                                                                  9%
                         6%
                                                                                 1%

    TV	
          Print	
        Web	
                     Radio	
                  Mobile	
  

                                      Sources: VSS, Mary Meeker (KPCB), comScore, Alexa, Flurry Analytics!
Marketers Are Already Committed!

% of marketers in 2011 that planned to:!




   Increase 2012 Mobile Ad Budget!                                             72%!
  Increase Mobile Ad Budget!

  BY OVER 50%!                 35%!


                                Source: IAB / Ovum Marketer Perceptions Of Mobile Advertising July 2011!
Expect a Flood of Mobile Ad Spending!

Projection of U.S. mobile ad spending!
!

                                                                     $10.9B	
  	
  

                                                  $8.7B	
  	
  

                                  $6.5B	
  	
  

                  $4.3B	
  	
  
  $2.6B	
  	
  
    2011            2012            2013            2014                    2015
                                                                  Source:	
  eMarketer	
  Jan	
  2012	
  
Mobile App Media Maturing

       TODAY                    OVER NEXT 12 MONTHS

Loosely-­‐targeted	
            Target	
  User	
  Interest,	
  Age,	
  
Campaigns	
                     Gender	
  and	
  Loca/on	
  

Unable	
  to	
  Measure	
       Track	
  Conversion	
  Quality	
  and	
  
Campaign	
  Effec/veness	
       Brand	
  Metrics	
  Impact	
  

Fragmented	
  Media	
  Is	
     Purchase	
  at	
  Scale	
  via	
  Agency	
  
Hard	
  to	
  Buy	
             Trading	
  Desks	
  and	
  Premium	
  
                                Media	
  Representa/ves	
  
Building a Successful App Is Hard




91%	
                         %	
  of	
  Interbrand	
  Top	
  100	
  brands	
  
                              	
  with	
  apps	
  
                              	
  
                              	
  



 4%	
                         %	
  of	
  Interbrand	
  Top	
  100	
  brands	
  	
  
                              in	
  top	
  100	
  app	
  ranking	
  (App	
  Store	
  UK)	
  




       Source:	
  App	
  Store	
  “Free”	
  Ranking	
  May	
  6,	
  2012,	
  Interbrand	
  Top	
  100	
  Global	
  Brands	
  of	
  2011,	
  Dis/mo	
  
The App Download Is Only The First Battle!




                    Consumers	
  download	
  an	
  average	
  of	
  85	
  apps	
  
                         But	
  use	
  only	
  5-­‐10	
  apps	
  in	
  a	
  given	
  week	
  


                                                    Source:	
  Flurry	
  Analy/cs,	
  Jan	
  2012	
  –	
  March	
  2012	
  
What Does App Retention Look Like?
        iOS & Android App User Retention, Months Since Acquisition (%)
100%




       38%
             29%
                   24%
                         20%
                               16% 14%
                                       11%      9%    7%        6%            5%             4%

 0      1     2     3     4     5    6     7     8     9         10            11             12

                                                           Source:	
  Flurry	
  Analy/cs	
  &	
  Es/mates	
  
The App Marketing Virtuous Cycle!
The New App Marketing Virtuous Cycle!

1.  The	
  Current	
  State	
  of	
  App	
  Marke/ng	
  

2.  Can	
  We	
  Find	
  Another	
  Way?	
  

3.  The	
  New	
  App	
  Marke/ng	
  Virtuous	
  Cycle	
  
Today App Marketing = App Store Rank!

•  Buy	
  enough	
  thrust	
  to	
  get	
  into	
  orbit	
  (downloads	
  in	
  24	
  hours)	
  

•  Don’t	
  worry	
  about	
  the	
  quality	
  of	
  users	
  you’re	
  using	
  as	
  thrust	
  

•  Once	
  you	
  rank,	
  your	
  app	
  gets	
  an	
  organic	
  lio	
  

•  And	
  then,	
  when	
  you	
  run	
  the	
  numbers,	
  blended	
  CPA	
  is	
  “cheap”	
  

•  What’s	
  wrong	
  with	
  this	
  picture?	
  
Fuel Prices Are Going Up!
Itʼs Already Expensive!


      Rank	
                         Required	
                            Subsequent	
  
        1	
                          150,000	
                               180,000	
  
      Top	
  5	
                     125,000	
                               150,000	
  
     Top	
  10	
                     100,000	
                               125,000	
  
     Top	
  15	
                      75,000	
                               100,000	
  
     Top	
  25	
                      50,000	
                                75,000	
  
     Top	
  50	
                      30,000	
                                45,000	
  
     Required	
  =	
  number	
  of	
  downloads	
  required	
  in	
  24	
  hours	
  to	
  reach	
  posi9on	
  
       Subsequent	
  =	
  number	
  of	
  downloads	
  per	
  day	
  once	
  posi9on	
  is	
  reached	
  
Competition for Consumers Continues to Increase!

Over 1 million available apps on iOS and Android!
                                                                                           600
     GOOGLE PLAY          iTUNES APP STORE

                                                                             500
                                                                                     460
                                                               425
                                                   400
                                                                      350

                                   250                   250
                                             200
                    160

                              80
       28     20
 2
March 2009   December 2009   August 2010      May 2011    July 2011   October 2011   April 2012
Thanks!
richard@flurry.com!
- w . a-o f ec. m
 w wn hc n r e o
      o    en c
- wt ro n ac n r c
 ti . m/o ho f e e
   tc
    e         en
- w .cb o. m/O H o f ec
 w wf e o k o N A C n r e
     a     c         en
- w . a-o f ec. m
 w wn hc n r e o
      o    en c
- wt ro n ac n r c
 ti . m/o ho f e e
   tc
    e         en
- w .cb o. m/O H o f ec
 w wf e o k o N A C n r e
     a     c         en

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Flurry Analytics - NOAH12 London

  • 1. November 2012! Marketing in the Mobile First Era! Richard Firminger, GM, EMEA!
  • 2. Flurry Track Record! Number 1 Mobile Reach ! Monthly Unique Users! 720M! Number 1 Analytics! Application Developers! 85K! Applications! 240K! Monthly Unique 60B! Sessions! Number 2 Ad Network ! Monthly Clips! 120M!
  • 3. The Rise of Mobile Apps! Flurry Sessions per Month! Facebook vs. Social Apps Billions 50 26 21 MINS MINS 40 Web Apps 30 Web Browsing vs. Apps 20 74 81 MINS MINS Web Apps 10 - Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 08 08 08 09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 11 11 12 12 12 12
  • 4. The Fastest Adopted Technology. Ever.! iOS & Android devices vs. top technologies, 5 years after introduction! ! 2X 3X ! 10XFASTER than the FASTER than the FASTER than current 1980s PC REVOLUTION 1990s INTERNET BOOM 2000s SOCIAL NETWORKING Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry!
  • 5. Addressable Market to Surpass 1 Billion Next Year! Active smartphone & tablet devices! Total Addressable Market! Aggressive: 5B WW Mobile Device Owners! Conservative: 2B WW Adults, Middle Class or higher! 1.1 B Upside: ! Smartphones – dropping prices, especially Android! Tablets – little replacement, mainly new; sub for PCs! Connected TVs – to be shipped! Reference:! 660 M 2.3 Billion Internet Subscribers today! 331 M 76 M 23 M Aug 2009 Aug 2010 Aug 2011 Aug 2012 Aug 2013E Source: Flurry Analytics!
  • 6. Apps Are Disrupting the World! Top Countries by Active iOS & Android Devices (millions)! 165 128 31 28 22 19 17 16 13 13 US China UK S. Korea Japan Germany France Canada Spain Brazil Source: Flurry Analytics active devices July 2012!
  • 7. Apps Are Disrupting Emerging Markets! Fastest Growing iOS & Android Markets by Active Devices! 401% 279% 220% 217% 196% 193% 193% 189% 185% 171% China Chile Brazil Argentina Iran Vietnam Mexico Russia Turkey India Source: Flurry Analytics, July 2011 – July 2012, countries with at least 500k active devices as of July 2011!
  • 8. Microsoft Blows by a Beleaguered Research in Motion! Flurry New Project Starts, RIM vs. Microsoft! ! 6% 6% WINDOWS PHONE BLACKBERRY 5% 4% 4% 3% 3% 3% 3% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 2% 1% 1% 1% 1% 1% 0% Jun 2011 Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Source:  Flurry  Analy/cs  
  • 9. Microsoft Sets Its Sights on Android! Flurry New Project Starts Q2 2011 vs. Q2 2012! 1% 1% 3% 1% 27% 28% 71% 68% Q2 2011 Q2 2012 iOS Android Windows Phone BlackBerry Source:  Flurry  Analy/cs  
  • 10. Revenue Is Scaling! WW iOS & Android App Revenue by Source! ! Billions   $9 ! ADVERTISING REVENUE $8 PREMIUM & IAP REVENUE 23% $7 $6 $5 18% $4 77% $3 82% $2 $1 $- 2010 2012E Source: Flurry Analytics, forecast based on Flurry analysis!
  • 11. Mobile App Usage Overtook Online in 2011! U.S. mobile apps vs. web consumption, minutes per day! ! WEB BROWSING MOBILE APPS 94   81   MINUTES   70   66   74   MINUTES   72   64   MINUTES   MINUTES   MINUTES   MINUTES   MINUTES   43   MINUTES   June 2010 Dec 2010 June 2011 Dec 2011 Sources: comScore, Alexa, Flurry Analytics; data includes Smartphones & Tablets, U.S. only!
  • 12. Mobile Apps Dominate Time Spent on Smartphones! Share of time spent on smartphones! ! More than 18.5% Browser 80% of mobile minutes 81.5% are spent in apps Apps Source: comScore, March 2012!
  • 13. The App Audience Behaviour & Growth!
  • 14. Mobile App Usage Is “Prime Time All the Time”! Daypart comparison, people 15+ using medium in U.S.! ! %  of  Audience  Share   70% TELEVISION INTERNET iOS & ANDROID APPS 60% 50% 40% 30% 20% 10% 0% 5am 6am 7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm 12am 1am 2am 3am 4am Hour  of  Day   Sources:  TV  &  Internet  dayparts  from  analysis  by  Michael  Zimbalist  (2/10);  Nielsen  Na/onal  People  Meter;  comScore  Media  Metrix       Mobile  applica/on  daypart  from  analysis  by  Flurry  (8/11);  Flurry  Analy/cs,  n  =  15.2M  DAUs    
  • 15. Even Canabilising Prime Time TV Viewing! Time spent using smart devices while watching TV! 1.61.6   HRS   HOURS 1.7 HOURS 84% of mobile device owners spend over 1.6 hours   per day using mobile devices while watching TV TABLET SMARTPHONE OWNERS OWNERS Sources:  OPA  /  Magid  Portrait  of  Today’s  Tablet  User  Wave  II,  July  2012;  Portrait  of  Today’s  Smartphone  User,  August  2012  
  • 16. Mobile Ad Spends Are Taking Off!
  • 17. A Shift in Ad Spending Is Inevitable! 2011 U.S. ad spending vs. consumer time spent! ! 43% 40% AD  SPEND  PER  MEDIA   TIME  SPENT  PER  MEDIA   29% 22% 23% 16% 11% 9% 6% 1% TV   Print   Web   Radio   Mobile   Sources: VSS, Mary Meeker (KPCB), comScore, Alexa, Flurry Analytics!
  • 18. Marketers Are Already Committed! % of marketers in 2011 that planned to:! Increase 2012 Mobile Ad Budget! 72%! Increase Mobile Ad Budget! BY OVER 50%! 35%! Source: IAB / Ovum Marketer Perceptions Of Mobile Advertising July 2011!
  • 19. Expect a Flood of Mobile Ad Spending! Projection of U.S. mobile ad spending! ! $10.9B     $8.7B     $6.5B     $4.3B     $2.6B     2011 2012 2013 2014 2015 Source:  eMarketer  Jan  2012  
  • 20. Mobile App Media Maturing TODAY OVER NEXT 12 MONTHS Loosely-­‐targeted   Target  User  Interest,  Age,   Campaigns   Gender  and  Loca/on   Unable  to  Measure   Track  Conversion  Quality  and   Campaign  Effec/veness   Brand  Metrics  Impact   Fragmented  Media  Is   Purchase  at  Scale  via  Agency   Hard  to  Buy   Trading  Desks  and  Premium   Media  Representa/ves  
  • 21. Building a Successful App Is Hard 91%   %  of  Interbrand  Top  100  brands    with  apps       4%   %  of  Interbrand  Top  100  brands     in  top  100  app  ranking  (App  Store  UK)   Source:  App  Store  “Free”  Ranking  May  6,  2012,  Interbrand  Top  100  Global  Brands  of  2011,  Dis/mo  
  • 22. The App Download Is Only The First Battle! Consumers  download  an  average  of  85  apps   But  use  only  5-­‐10  apps  in  a  given  week   Source:  Flurry  Analy/cs,  Jan  2012  –  March  2012  
  • 23. What Does App Retention Look Like? iOS & Android App User Retention, Months Since Acquisition (%) 100% 38% 29% 24% 20% 16% 14% 11% 9% 7% 6% 5% 4% 0 1 2 3 4 5 6 7 8 9 10 11 12 Source:  Flurry  Analy/cs  &  Es/mates  
  • 24. The App Marketing Virtuous Cycle!
  • 25. The New App Marketing Virtuous Cycle! 1.  The  Current  State  of  App  Marke/ng   2.  Can  We  Find  Another  Way?   3.  The  New  App  Marke/ng  Virtuous  Cycle  
  • 26. Today App Marketing = App Store Rank! •  Buy  enough  thrust  to  get  into  orbit  (downloads  in  24  hours)   •  Don’t  worry  about  the  quality  of  users  you’re  using  as  thrust   •  Once  you  rank,  your  app  gets  an  organic  lio   •  And  then,  when  you  run  the  numbers,  blended  CPA  is  “cheap”   •  What’s  wrong  with  this  picture?  
  • 27. Fuel Prices Are Going Up!
  • 28. Itʼs Already Expensive! Rank   Required   Subsequent   1   150,000   180,000   Top  5   125,000   150,000   Top  10   100,000   125,000   Top  15   75,000   100,000   Top  25   50,000   75,000   Top  50   30,000   45,000   Required  =  number  of  downloads  required  in  24  hours  to  reach  posi9on   Subsequent  =  number  of  downloads  per  day  once  posi9on  is  reached  
  • 29. Competition for Consumers Continues to Increase! Over 1 million available apps on iOS and Android! 600 GOOGLE PLAY iTUNES APP STORE 500 460 425 400 350 250 250 200 160 80 28 20 2 March 2009 December 2009 August 2010 May 2011 July 2011 October 2011 April 2012
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  • 32. - w . a-o f ec. m w wn hc n r e o o en c - wt ro n ac n r c ti . m/o ho f e e tc e en - w .cb o. m/O H o f ec w wf e o k o N A C n r e a c en