This presentation covers key insights across the mobile app economy including market size, addressable market, consumer trends, what non-mobile industries and categories are being disrupted by mobile apps, comparison of consumer behavior on media platforms vs. ad spending and an outlook for what's next as the industry matures.
Flurry Mobile App Industry Trends Presentation, Business Insider Mobile Advertising Conference June 2012
1. THE APP GENERATION
Peter Farago
VP Marketing
@FlurryMobile
blog.flurry.com
2. App Measurement and Advertising Platform
Flurry Analytics
Better apps on iOS, Android, BB, WP, HTML5
App Developers: 70,000
Live Applications: 190,000
Devices per month: 540M
Sessions per month: 36B
Events per month: 400B
AppCircle Ad Network
Acquisition & Monetization: iOS, Android
App Developers: 6,200
Devices per month: 250M
Daily Completed Views 3M
3. Penetration of WW Population, 5 Years After Launch
8X 3X 2X
8%
4%
3%
1%
PCs (1988) Facebook (2009) Internet (2000) iOS & Android (2012)
Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry
4. iOS & Android Addressable Market
GLOBAL
POPULATION
7 BILLION
Sources: United States Census Bureau, based on Accenture analysis
5. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE
SUBSCRIPTIONS
6 BILLION
Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis
6. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET
USERS
2.3 BILLION
Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis
7. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET USERS 2.3 BILLION
iOS & ANDROID
540 MILLION
Sources: US Census Bureau; International Telecommunication Union, Flurry; based on Accenture analysis
8. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
9%
VS
MOBILE
INTERNET USERS 2.3 BILLION
24%
VS
INTERNET
iOS & ANDROID
550 MILLION
Sources: US Census Bureau; CIA World Factbook; Flurry; based on Accenture analysis
10. Apps Disrupting the Web
U.S. MOBILE APPS VERSUS WEB CONSUMPTION
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; Smartphones & Tablets, U.S.
11. Closing in on Television
Daypart Comparison, People 15+ Using Medium, U.S.
70%
% of Audience Share
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 National People Meter; comScore Media Metrix
Mobile application daypart from analysis by Flurry (8/11); Flurry Analytics, n = 15.2M DAUs
12. ..and Changing Viewing Behavior
App Sessions Started per Second in U.S. During Super Bowl
4.5
Application Session Starts per Second, Thousands
4.0
3.5
3.0
2.5
GIANTS DRIVE
BATTLESHIP (FIELD GOAL)
2.0
MOVIE AD
COIN MADONNA
TOSS KICK HALFTIME SHOW EXCITING LAST FEW
TAX ACT
OFF MINUTES OF THE GAME
1.5 AD COCA-COLA
POLAR BEAR AD
1.0
6:45 PM
3:15 PM
3:30 PM
3:45 PM
4:00 PM
4:15 PM
4:30 PM
4:45 PM
5:00 PM
5:15 PM
5:30 PM
5:45 PM
6:00 PM
6:15 PM
6:30 PM
7:00 PM
7:15 PM
Source: Flurry Analytics
14. Apps Disrupting Video
U.S. VIDEO ENGAGEMENT, MONTHLY MINUTES PER ACTIVE USER
472
425
378
324
276
231
152
93 110
63
Mar 2011 June 2011 Sep 2011 Dec 2011 Mar 2012
iOS & Android Photo & Video Apps Google Internet Sites
Source: Flurry Analytics, comScore Video Metrix
15. The Great Mobile Ad Spending Gap
2011 U.S. Ad Spending vs. Consumer Time Spent by Media
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
16. TV vs. App Gap: Consumer Entertainment Cost
ANNUAL COST OF ENTERTAINMENT FOR EACH DAILY HOUR CONSUMED
$300
$17
CABLE TV SMART DEVICE APPS
Source: Flurry Analytics, Nielsen, Business Insider, Apple Inc
17. TV vs. App Gap: Advertiser Cost to Reach Consumer
AVERAGE MONTHLY COST TO REACH A U.S. CONSUMER
$72
$0.90
CABLE TV APPCIRCLE CLIPS
Source: Flurry Analytics, Nielsen, Business Insider
18. Changing Dynamics in Mobile App Economy
OUT IN
MOBILE EXPERIMENTAL MOBILE IMPORTANT
ROOM FOR ALL ROOM FOR MANY
INDIE PLAYGROUND HOPPERS & CONSOLIDATERS
DIY & NOVELTY DATA-DRIVEN COMPANIES
PRIMARILY U.S. STRONGLY INTERNATIONAL
ONE AUDIENCE SEGMENTATION
NEW USER ACQUISITION ACTIVE USER ACQUISTION
BUY RANKED POSITION BUY TARGETED CAMPAIGNS
FREEMIUM & PREMIUM IAP & AD REVENUE
MANUAL MEDIATION SUPPLY-SIDE PLATFORMS
19. Thank You!
Peter Farago
VP Marketing
@FlurryMobile
blog.flurry.com
Notes de l'éditeur
VS. TAM, iOS & Android only ¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVE
VS. TAM, iOS & Android only ¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVE
Andreessen wrote that every sector is being disrupted by software (e.g., telecomm by Skype, Cannon + Nikon + YouTube by Viddy and SocialCam); find your own examplesRead and reference the WSJ article, “Why Software is Eating the World” by Marc Andreessen, August 11, 2011Apps are a great form of software delivers and disrupting everything faster than anything we’ve ever seen. “And its all built on delivering valuable experiences to the consumer.”“Let me ask you all: Do you have a favorite app you can’t without?For me… give examples of some apps you now use that substitute for, or augment what you do (e.g., Uber (private car hiring disrupts cabs), Shazam (music discovery), Exec (high end exec admin help; like taskrabbit but super high quality), etc.)We meet so many new companies, and we love their ambition
Jan 2012 – 36hrs online according to comscore. Europe: Feb 2012 – 28.2hrs online according to comscore.
Advertising dollars have not followed the consumer to mobile. While we estimate 23% of media consumption is mobile, mobile only receives 1% of advertiser budgets.