3. STAGE 3: THE TWO-SIDED PLATFORM
3 2 3
ANALYTICS
APPSPOT
Advertisers
Publishers
AD
APPCIRCLE
APP MEASUREMENT AND
ADVERTISING PLATFOM
1 Flurry Analytics
LAUNCHED JUNE 2012- THE TWO-SIDED PLATFORM
PUBLISHERS: DIRECT, INDIRECT, DESK TRADED AD MONETIZATION
ADVERTISERS: AD EFFECTIVENESS, MEASUREMENT AND ROI ANALYSIS
BUILT IN NETWORK EFFECTS
4. The Rise of Mobile Apps
Flurry Sessions per Month
Facebook vs. Social Apps
Billions
50
26
21 MINS
40 MINS
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
5.
6. 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
7. 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
8. Apps Are Disrupting the World
Top Countries by Active iOS & Android Devices (millions)
Source: Flurry Analytics active devices July 2012
9. 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
10. 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% 2% 3%
2%
2%
2%
1% 1%
1% 1% 1%
1% 1%
1% 1% 1% 1%
1% 2% 1% 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 Analytics
11. 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 Analytics
12. 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
Sources: comScore, Alexa, Flurry Analytics; data includes Smartphones & Tablets, U.S. only
13. 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
16. Tablet Usage Is More Concentrated during Primetime
Usage by Hour, Smartphones versus Tablets
9%
% of Audience
Using
Smartphones
8%
Tablets
7%
6%
5%
4%
3%
2%
1%
0%
5am 6am 7am 8am 9am 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 1am 2am 3am 4am
Hour of Day
Source: Flurry Analytics, Sep 2012
17. Tablet Usage is Longer but Less Often
App Engagement, Smartphones versus Tablets
12.9
9.5
8.2
4.1
Weekly Frequency of Use Minutes per Session
Smartphones Tablets
19. Tablet Usage is More Gender Balanced
Gender Comparison, Smartphones versus Tablets
44% 56% 49% 51%
Smartphones Tablets
Source: Flurry Analytics, Sep 2012
20. Tablet Usage More Media & Entertainment Oriented
Time Spent per Category, Smartphones versus Tablets
Productivity
Entertainment News 1%
3% 2%
Other Other
Lifestyle Utilities
11% 7%
3% 4%
Health &
Fitness
Games Entertainment
3%
39% 9%
Social
Utilities Networking
17% 10%
Games
67%
Social
Networking
24%
Smartphones Tablets
21. 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
23. 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
24. 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
27. Mobile App Media Maturing
TODAY OVER NEXT 12 MONTHS
Loosely-targeted Target User Interest, Age,
Campaigns Gender and Location
Unable to Measure Track Conversion Quality and
Campaign Effectiveness Brand Metrics Impact
Fragmented Media Is Purchase at Scale via Agency
Hard to Buy Trading Desks and Premium
Media Representatives
29. The New App Marketing Virtuous Cycle
1. The Current State of App Marketing
2. Can We Find Another Way?
3. The New App Marketing Virtuous Cycle
30. 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 lift
• And then, when you run the numbers, blended CPA is “cheap”
• What’s wrong with this picture?
32. It’s 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 position
Subsequent = number of downloads per day once position is reached
33. Retaining Users Is a Challenge
94% of all acquired users churn out
1.9 Billion
120 Million
USERS ACQUIRED STILL USING DURING
JAN – JUN 2012 1ST WEEK OF OCTOBER
Source: Downloads and Usage Tracked Across All Acquisition Channels by Flurry Analytics
34. What if You Could Bring Back Your Best Users?
1.9 Billion Heavy Users
Used Before Last Update
In Favorable Geo
Key Target Demo
Social
Used
Influencers
More
Than
Spenders Once
120 Million
USERS ACQUIRED STILL USING DURING
JAN – JUN 2011 1ST WEEK OF OCTOBER
Source: Downloads and Usage Tracked Across All Acquisition Channels by Flurry Analytics
35. A New Approach to Break the Churn Cycle
CURRENT APPROACH: A BETTER APPROACH:
RANK DRIVEN CONSUMER LTV
RE-ENGAGE ACQUIRE
ORGANIC ACQUIRE
LIFT TO RANK
SEGMENT
36. Leverage Engaging Units and Optimized Pricing
New Re-Engagement Trailers Custom Creative
CPI basis, bidded CPR basis, bidded CPCV basis, bidded CPC basis*
$0.75 minimum bid $0.50 minimum bid $0.02 minimum bid (to App Stores)
bidded, no min bid
*Flurry Ad Analytics is required to track installs
37. Get Unmatched Reach and Targeting Options
• Reach over 250 million mobile app users through AppCircle
• Get the deepest targeting on mobile
–Device and OS
–Geography, down to the city level
–Age and gender
–Personas (over 22 to choose from)
• Re-target your valuable segments
–Based on segments and analytics events in your app
–Based on time lapsed since last use
38. Flurry Ad Analytics: Optimize User Acquisition Spending
Measure cost and quality of users by acquisition channel
• Measure the performance of all user acquisition channels
• Track the performance of quality conversions the way you define it
• Automatically create segments to track retention and churn per channel
• Absolutely no disruption to the user experience or flow
This is a big deal for mobile app developers and marketers because, currently, these folks
are buying from something like ten to fifteen ad networks, and yet have little visibility into the
types of users being returned. TechCrunch, June 2012
Buying from so many sources, brands are often left to question whether the acquisitions they
receive are of value to the brand and its success metrics. Ad Analytics automatically tracks
clicks and installations and attributes them to the correct campaigns and traffic sources. It
then allows marketers to view the behavior of users after they download. AdAge, June
2012
40. The Great Mobile Advertising Gap
2011 U.S. ad spend versus time spend per 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
42. The eCPM Impact of Attracting Premium Advertising
Mobile Publisher eCPMs
Optimizing your ad mix
$5+ can increase
ad revenues
by more than
$1.5
Today Optimized
3X
44. So What Do Brands Need?
Audience Scale Audience Targeting
You Have It You Need It
45. How to Make Your Applications Media-ready
1. Understand your audience
2. Define the advertisers you want to attract
3. Come up with an immersive, quality experience
4. Package it right
5. Get your sales team: Build or Outsource
6. Execute the campaign
