Mobile Apps

Trends, Marketing and Value CreationPatrick Mork - CMO

GetJar – who we are

• Largest open app store (’05)

• 1.8 billion downloads

• 144,000 apps

• 190 countries, 2,500 handsets

• Distribution / AppVertising™

• $42M funding / Accel / TGM

• Silicon Valley, London, Vilnius

Some of our clients…

App usage is becoming universal• Over 8 billion apps were downloaded in 2010

• The global industry will be worth over $30 billion by 2015*

• 56% of users are male

• Largest age demo is 25-34 year olds– Followed by 34-44 year olds and 18-24

• Over 600,000 apps across the known apps stores

• More then 3,500 apps are being downloaded every second

*Juniper research Q4 2010** GetJar consumer poll of 2,500 consumers in Q1 2011

How do consumers engage with apps?

63% download

apps once / week35% using

apps more then 1 hour /

day Top categories SN, Games, News,

Weather, Music

GJ AppMeter Survey, March 20112,500 users

74% using apps more

then once per day30% claim to

use mobile web more then Web

Platforms: All about Android vs. iOS?

• 100M devices vs. well over 1.8 billion web enabled

• Consumers don’t always distinguish

• Web has innate advantages

• Smart brands already leverage web

Cross platform with a touch of WEB

App Appl And BB Web Java Symb Win GJ DLs

Facebook X X X X X X X 110M+

Ebuddy X X X X X X X 80M+

Opera X X X X X X X 50M+

Google X X X X X X X 18M+

Yahoo! X X X X 20M+

YouTube X X X X X X 8M+

Geography – Apps going global

• GetJar’s top market is India

• Content consumption varies by market

• Local content starting to be seen

• Pull of apps in EM even stronger then US / DM

• Phones as status symbols

Brands – Emergence of the first mobile only brands

About those Angry Birds

Money – show me the $....

• 2010 = $2.1 bln in app store revenue

• Apple alone 1.7

• 25% est. games

• 47% of games IAB

0%10%20%30%40%50%60%70%80%90% 82.7%

4.7%7.7% 4.9%

iPhoneAndroidBlackberryNokia Ovi

Percent share of app store revenues 2010: IHS Screendigest

Business models – why pay-before-you play doesn’t work

• Race to the bottom

• Devalues brands

• Only for DM’s

• Lacks trial

• Higher risk then in application billing

• Increased cost of advertising

Monetization trend: 3 possible models

Marketing: Significant trend in marketing spend on mobile

• Mobile ad spend in US to reach $1.1 bln in 2011 according to emarketer

• Set to grow by $19 billion from 2010 – 2015 according to Gartner

• 84% of consumers have downloaded apps with ads

• 21% purchase something after clicking a banner

Marketing: Translating into increased spend on apps

• Key verticals include: Search, games, productivity, entertainment, retail, automotive

• Realization that distribution alone no longer enough only 25% of apps discovered are found in app stores*

• However, performance metrics are changing from CPM / CPC to CPD and CPI

• Spend now including Android apps as natural next “big” category after iPhone – particularly in the US

$0.20

$0.25

$0.50

$0.20

$0.40

$0.80

$1.00

$2.00

CLICKClicks are not targeted to only

supported phones

VISIT (50%)Visitors must read the landing

page and click to download

DOWNLOAD (50%)Download starts

INSTALL (80%)Successful

install

ACTIVATE (50%)

Ad NetworkCost Per Click

Cost Per Download

Pay only when download starts

…and metrics must change to reflect performance

Multiple installations (SDK’s)

Optimization across multiple networks

Multiple contracts

Quest for performance will fuel consolidation, liquidation and aggregation

Optimizing across devices

Reporting across

multiple vendors

Marketing: Distribution trends

• Ecosystem fragmented with over 160 app stores• Different stores have different merchandising /

placement policies• Visibility has a massive affect on downloads up

to 10x or even 100x difference• Rankings by store differ on Apple marketing can

influence rankings on Android Market it can’t• Different stores have different levers of marketing• App stores must and will consolidate over next 24

months

20

Fragmentation is inherentPlatform iOS Android Rim Win 7 Symbian Java Palm

WW mkt share (sf)

16% 33% 14% 3% 31% N/A <3%

WW base 73.5M 40M± 80M± 2M 250M+ 2B+ 500k±

Apps 300,000+ 200,000+ 12,000± 8,000+ NA 70,000± 4,000+

Stores 1 8 5 1 100+ 100+ 1

Paid/free Free, CC Free, Checkout,

CB*

Free, CC, PP, CB

Free, CC, Some CB

Free, CB, CC, PP

Free, CB, CC, PP

Free, CC

OEM’s Apple HTC, Samsung,

SE, LG, Sharp,

Tosh, ZTE, Moto

Blackberry Samsung, Nokia,

HTC, Dell

Nokia (legacy SE, Samsung)

Samsung, SE, Nokia, LG,Moto,

Shapr, Tosh, ZTE

Palm, HP

tablets

OS versions

4 6 6 1 3 NA 2

Brand challenges

• Brands renown gives them natural advantage– 54% of our consumers have downloaded branded

apps

• However, expectations are higher of brands– 80% said quality of app affects brands trustworthiness

• Consumers also expect a similar experience across devices / OS’s

• Mobile is often isolated from rest of marketing• To succeed apps must be part of marketing mix

Easy to usebranded

interactive menu

Dynamic RSS feed with content fed in real-time from blog

Video, copy, images and other

content

Form to volunteer and participate at the

community and international level

Viral functionality encourages sharing content and mobile

app among networks

Donate options including Call-in,

Mail-in, Online and special “Donate

$10” now button

Salvation Army: Reach, Inform, educate and galvanize young audience

Marketing• Aggressive press campaign with mentions in USA Today

and other key publications• Viral marketing campaign to TSA base via Twitter and

Facebook• CRM / email campaign to TSA consumer base and

regional agencies• Premium placement, PR and CRM from App store

Partner GetJar use App it! Direct response link for cross platform distribution

Success Metrics to Date• Over 211,000 downloads to date; 150,000 in first month

alone• 6.2% click through to “Donate $10 Now”• 4.1% submissions to volunteer form

TSA: Marketing and results

Zynga / GetJar game launches

• Mafia Wars and Zynga Poker launches in Dec 2010

• Integrated marketing campaign including:

– Press– CPM mobile campaigns– Online cross promotion– Email blasts– Social media (Twitter / FB)– Feature placement on

GetJar

• Results:– Mafia Wars 900,000 dl’s in 6

weeks– Zynga Poker 100,000

(Android only)

Everyone’s got a phone! What should you do?

• Identify precisely your user and what they expect of your mobile service

• Determine brand vs. performance

• Select the platforms that best suit your strategy

• Integrate mobile fully in your overall marketing plans

• Dive in, collect data, analyze and start over!