India Gadget Expo: Emotion Trumps Gadgets
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Emotions are more important than gadgets in driving technology adoption. While devices continue to proliferate, people are spending more time engaging with each other through apps and digital content than browsing online. Companies are recognizing the need to build ecosystems that facilitate engagement and commerce across multiple screens in a seamless manner. The future of technology will be about using hardware as a way to deliver digital experiences that resonate with people on an emotional level.
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India Gadget Expo: Emotion Trumps Gadgets
- 1. Emotions Trump Gadgets Levi Shapiro, India Gadget Expo, June 19, 2014
- 3. The Future of Digital?
- 5. First…let’s Talk About the Glass Ceiling
- 7. Ecosystems Compete on Cross-Screen Experience
- 8. 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
- 9. 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) Minutesspentpermonth (billions)
- 10. Messaging is a Mobile Ecosystem
- 11. 14times average number of times a user checks Facebook on their mobile daily Source: comScore Mobile Metrix, US March 2013
- 13. 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 AdvertisingPayments Advertising $2.0b Q1 Q2 Q3 Q4 2010 2011 2012 2013 $2.6b
- 15. WeChat Ecosystem Value Capture
- 17. Hardware as a Tool to Sell Digital Content
- 20. Personal Computers (Desktop And Notebook) Smartphones Tablets Smart TVs Wearables 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E #OfDevices(InMillions) Global Internet Device Installed Base Forecast Its Not Just Mobile (eMarketer, 2013)
- 26. 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
- 31. Neural Measurement Source: Professor Nathan Intrator , TAU
- 33. Hey Cookie…You Talkin’ To Me?
- 34. Welcome Levi
- 43. NEXT GEN
- 46. Hours spent watching video monthly 5 12 9 33 8 Source:Mashable,July2012,LinearTVNielsen11/12 NON-LINEAR VIDEO VIEWING NOW EXCEEDS LINEAR TV
- 47. BRIDGING THE GAP
- 48. 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)
- 49. “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
- 59. Can Your Gadget Encapsulate Noble Brand Values and Yet be Freemium?
- 60. 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
- 61. 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
- 62. 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
- 63. Misunderstanding LTV Lifetime Customer Value is NOT Linear or Immediate *usually. An LTV evolution curve could theoretically be linear.
- 64. Misunderstanding LTV Lifetime Customer Value is NOT Linear or Immediate *usually. An LTV evolution curve could theoretically be linear.
- 65. Misunderstanding LTV Lifetime Customer Value is NOT Linear or Immediate *usually. An LTV evolution curve could theoretically be linear.
- 66. v QUESTIONS? •••