ios 10 breakfast briefing

iOS 10 Release Workshop

New Apple mobile operating system release and related announcements

8th September 2016

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Somo accelerates mobile transformation through rapid innovation to create

products and experiences your customers and employees will love.

Transforming Live

Transforming Engagement

Transforming Content

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Everything is mobile Building Relevance in a Digital World

“It may be a hundred years before a computer beats humans at Go - maybe even longer”

New York Times 1997

“Master of Go Board Game is walloped by Google Computer Program”

New York Times 2016

1997 2097 2016

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Mobile is a behaviour not a channel


iOS 10 release key takeaways

Improved App Store discoverability

Greater user control over privacy and data tracking

Richer and deeper engagement

Greater emphasis on emerging User Interfaces

New monetisation opportunities

Mobile is the remote control to our lives

Paid search advertising and other new store features

More transparent data access for apps and stricter controls on ads

Enhanced app notifications to improve engagement

Rapid technology change is driving the adoption of new UIs

Extended subscription features and more attractive revenue splits

Integration of Home, Car and Self domains

What the new iOS release means


Growth

•  User acquisition •  Onboarding •  Retention •  Monetisation

Product •  User Journey •  Features •  Services •  Integration

Opportunities in two key areas


32%

40%

40%

62%

13%

10%

9%

1%

56%

50%

51%

37%

iOS Others Android

iOS still key to reach most valuable consumers

UK smartphone users

UK female

UK millennials 18-34

UK mCommerce orders

comScore, Mobilens data, 3 month average , June 2016

Android iOS


Average adoption rate of a new iOS

release in first 5 days

Average adoption rate in first month

iOS 9 adoption rate on August 2016

Average adoption rate of a new Android

releases in first 3 months.

Within the same time period iOS 9 reached

well over 70%

35% 50% 88% 12%

Sources: SOMO analysis on Apple and Fiksu data

New iOS release adoption is incredibly fast


1 out of 3 iOS users have used 3D touch

iOS users who ever tried Apple Pay at

least once in the last year

Smartphone users who have used Siri in the

last year

1/3 24% 36%

Phonearena.com, “How often do you use 3D Touch on your iPhone 6s or 6s Plus?”, Nov 2015 Pymnts, Apple pay adoption survey, June 2016

MindMeld, Intelligent Voice Assistants Q1 2016 User Adoption Survey Result

What we learned with iOS 9 How iOS 9 changed consumer behaviours

12

Improved App Store discoverability


Apps downloaded since 2008

Apps currently in the App Store

Of users discover new apps through app

store search

2m 65% 140bn

statista.com, June , 2016 statista.com, June , 2016

pulseheadlines.com, September, 2016 WWDC, June, 2016

Discoverability remains unsolved issue

Apps in the App Store are Zombie apps

90%


Incentive Affiliate

Brand Ambassador

Digital properties Catalog Websites

Blog Mobile

email

Embassies Facebook

Twitter Instagram

LinkedIn Pinterest Google+

Outposts Relevant message boards

Blogosphere

Advertising Banners Display Paid Endorsements

App store Clear Message/Relevance App store images App Logo Reviews Keywords Number of Downloads Uninstall Rate

Partnerships Charities Co-Branding Celebrities

Influencer Engagement Response Advocacy Loyalty

Paid media

Owned Properties

Earned Media

Social Platforms

The App Store is the centre of the universe

App Store


‘Window Shopping’ and App Store search

Key developments to your App Store Page will change the way your app is discovered

50 character limit App indexing will prevail

Clean up of iOS 4 apps & more


New Search Ads


Next steps to discoverability Don’t wait for Apple, be one step ahead

Greater user control over privacy and data tracking


Stricter controls on Ad tracking

11-14% devices affected


About this Ad


Laptop

Smartphone

Searching for info

Shopping online

Browsing the Internet

65%

iPad

Started on smartphone

Planning a trip

Watching online video

Managing finances

Social networking

60%

4%

63%

58%

5%

65%

61%

4%

47%

45%

3%

59%

56%

3%

66%

58%

8%

56%

48%

8%

Industry was in the process of moving away from IDFA trackers to tackle cross-device challenge


•  Make personal data access more transparent

•  Prevent third-party SDKs within the App from requesting access to data

Purpose strings now become mandatory Not providing a purpose string will now crash the app

Richer and deeper engagement


Mobile time is increasing and apps dominate time spend

90% 10%

App Browser

Gaming 15%

Social / Messaging 12%

YouTube 3%

Entertainment 17%

Utilities 8%

Productivity 4%

News 2%

Others 10%

Safari 6%

Google Chrome 4%

Source: comScore, Flurry Analytics, NetMarketShare, 2015

35%

Gaming & entertainment

31%

Social media & messaging

Facebook 19%

3hrs 40mins


App users are loyalists, web use is broader but infrequent

Engagement

Reach

App Audience = Loyalists

Web Audience = Infrequents


While there is distinct variation across categories, user retention and frequency are often low

But generating meaningful engagement is a challenge

Frequency of use / week

Retention over 30 days

21% 28% 14% 7% Music News

Productivity Finance

Card games 5

4

3

2

1

Word games

Weather

Business

Health & fitness

6

35%

Magazines

Action games

Utilities

Travel & navigation

Entertainment

Messaging & Social

Medical

Lifestyle

Source: Flurry Analytics, August 2016

95%

Of apps are deleted within 3

months of download


Actioning notifications presents an interruptive, time consuming and (sometimes) irritating experience

Notifications are useful…to a point

2. Opens app 1. User receives notification 3. Replies 4. Closes app, locks screen


•  Better native app experience •  Rethink your product with 3D touch •  User engagement •  Retention

Redesigned app interaction through notification centre notifications and widgets


Rich media push notifications

No more repetitive notifications – they can be updated and superceded

in iOS10


New interactive lock screen functionality

1. New lock screen control layout 2. Complex interactions with rich notifications through lock screen


Active Engagement

Prompted interaction leads to greater and more frequent active user engagement with service

Rich notifications bridge the engagement gap

App / Web Usage

Push Notifications

Passive Engagement Barrier to action


Active Engagement User

Interaction

Prompted interaction leads to greater and more frequent active user engagement with service

Rich notifications bridge the engagement gap

App / Web Usage

Rich Notifications

Push Notifications

Passive Engagement


Increased frequency can come at a cost to depth of engagement

Frequency and convenience vs depth of engagement

App / Web usage

Notification usage

Time

Surface Engagement

Deep Engagement


Increased frequency can come at a cost to depth of engagement

Frequency and convenience vs depth of engagement

App / Web usage

Rich notification usage

Notification usage

Time

Surface Engagement

Deep Engagement


User first utility Create app

functionality that focusses on utility and

user first. Emphasise service rather than

brand

Convenience Develop strategies around using rich

notifications to increase interaction

convenience, frequency and speed

Depth Create engagement mechanics drive users to deeper app usage through notifications

What does this mean for app providers? New notification strategies are required to enhance convenience but drive engagement

New monetisation opportunities


Economic activity transacted directly

through the App Store in 2015

Average App Store revenue year on year growth rate in last year

Estimated value of the other ecosystems “on

top” of iOS which transact outside the

Apple systems, including Facebook, Google,

Uber, Amazon Mobile services

$20 bn/yr +50% $250 bn/yr

Source: Apple. Asymco.com

Apple is the enabler to the majority of mobile revenues


Number of free and paid mobile app store downloads

Source: Statista

Freemium is still the main app business model adopted

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016 2017

Paid-for downloads

Free downloads

forecast

93%

7%


Subscription model

Subscription model now available to all

app categories

Auto-renewable fees

Auto-renewable subscriptions to retain

active subscribers

Flexible pricing

Unlimited number of price cohorts

More attractive revenue split

Adjusted 85/15 revenue share with

publishers

New monetisation features

Coffee Break

Greater emphasis on emerging User Interfaces


New Gestures New Interfaces New Behaviours

Google Oct 2014

Velocity of new technology change

55%

Percentage of US teens who

used voice search more than once a day

Voice, fingerprint scanners, facial

recognition, non-touch gestures

Swipe, tap, pinch, tilt, shake, zoom!

Ensuring products are relevant to consumers – as the speed of change is accelerating


Siri voice control can be integrated in any app Voice control seamlessly integrated in the user journey

Siri can interact with apps Apps can include Siri in the user journey


Source: BI Intelligence 2015

Messaging is the new social


Messages is the most frequently used iOS app

Visual and multimedia messaging

Messages: new interactions, own App Store

Richer interaction App Store within iMessage


Maps SDK allows companies to integrate their services in the platform

Maps set to become the lens to access info in mobility

Redesign of overall application, inc. traffic Contextual route search SDK opened up for developers


At the Restaurant

Travel

Booking

Research

Pay

Mobile shifts mindset and sets new expectations

Provide users what they want in the context and moment of need

Native App

Messages Siri Maps

1

2

3

We search and pick the restaurant within the chat based on group preferences

I book the table through the Siri App.

Siri updates iCal and suggests time to leave

I get the travel instructions in Maps while on the way

App provides list of restaurants

App manages the booking

App provides address and

booking time

I pay and Leave the restaurant

Restaurant booking process

4 4

2

1


Re-think your user journey across different external contexts and

touch points

Take advantage of Siri voice control in your

native app UX

Create new services in the context and moment of need

Key Takeaways Greater emphasis on alternative User Interfaces

Mobile is the remote control of our lives


Impact of Internet of Things is felt everywhere

Home Lighting, Security,

Energy monitoring, Smoke/fire alarm,

Entertainment, Refrigerator,

Appliances, Waste management

Car Telematics, Smart parking, Customer service and supply

chain, Traffic routing, Entertainment

Self Health and food monitoring, Sleep

monitoring, Remote diagnostics, Activity

tracking

Worksplace Engagement,

Communication, Collaboration,

Performance metrics, Security

Retail Footfall and tracking, Layout optimization,

Shopping personalization,

Product data, Stock control, Loyalty and

retention


New Home App

Larger number of compatible devices iPad becomes a control hub Accessories, Scenes, Rooms


tvOS 10 even more integrated with the iOS space

Redesigned Remote App Siri responds to

more natural queries Revamped Photos and Music Apps


More control over apps

CarPlay to launch a variety of small improvements

Re-designed Maps and Music

Better Siri and Siri app intergration


Car

Self

Mobile is central to the connected world

Home Commute Commute Home Work User Journey

Appliances

Light and Air

Infotainment

Fire and Water

Light and Air

Home

Diagnostics and Maintenance

Mobility Ecosystems

Smart Lock

Fitness Health and Food

Sleep

Insurance


Apple is building the front end integration layer for consumer

connected life

User experience standardisation is

through mobile and interfaces like Siri

Explore how to increase your brand’s presence and touch

points across different domains

Key Takeaways Mobile is the remote control of our lives

Conclusions


•  Engagement •  Integration •  Domains: home car,

news, messaging, etc.

•  Revenues •  Retention •  User data

•  On-boarding •  Touch points

•  Discoverability •  User acquisition and

conversion rates •  Top of mind

Loyalty Engagement Purchase

iOS 10 impact throughout the User Journey

Discovery

Improved App Store

discoverability

Greater emphasis on alternative

User Interfaces

Richer and deeper

engagement

New monetization opportunities

Mobile to become remote

control of our lives

Greater user control over privacy and

data tracking

Monetization

Data Tracking

iOS10


•  More powerful than ever with A10 Fusion Chip. 2x faster & more battery life: Apps will have greater capabilities than previously possible.

•  Big changes to audio. Analog headphone jack is gone – now connect over lightning. Wireless earbuds introduced called AirPods. Stereo sound with speakers at top and bottom.

•  Advanced home button is durable, responsive, pressure sensitive. Works with new Taptic Engine & it’s customisable!

•  Water and dust resistant •  Camera facelift. Major updates to both

phones, iPhone 7 Plus has two 12-megapixel cameras for telephoto zoom.

iPhone 7 & iPhone 7 Plus Shipping September 16


No news for Health App Series 2 pre-order Sept 9

•  Siri, apps and fitness tracking need a serious tune up

•  Some of that's coming with Watch OS 3 on September 13th

•  But more sensors and even greater waterproof guarantees are needed

•  Apple is now the #2 watch brand in the world

•  Built-in GPS for greater functionality •  Swim-proof - water resistant up to

50 metres •  Nike+ partnership special edition

available at same price •  Original watch now called Series 1

available for $269 – likely to increase overall watch adoption

Apple Watch Series 2


Released August 22nd 2016 – Rolling out to all devices over the coming months.

Android N


Samsung, HTC, LG, Xiaomi, Huawei, ZTE, Asus, and Alcatel are all on board to make Daydream-compatible phones

Google Daydream Android-powered VR platform


Amazon to host a UK press event on Wednesday 14th of September

Echo to be launched soon in the UK


Uber and Apple’s Project Titan

Cars of the future


Could the rumours be true? Are they working on a VR/AR headset?

Snapchat Smart Glasses


Come try the HTC Vive (VR) and Microsoft Hololens (AR) in our Lab

Mixed Reality

Tech F.A.Q.


5.  Does it look very different from iOS 9?

6.  iOS 10 is more open for developers to use iOS features such as maps, Siri etc, so does that mean apps are less secure?

7.  Do iOS 10 apps have to be written in Swift?

1.  When can I get it?

2.  What devices that run iOS 9 will not run iOS 10?

3.  Will I need lots of free space on my device to update to iOS 10?

4.  How much does it cost?

Technical F.A.Q.

Proof Of Concept