The document discusses how the overwhelming selection of apps has led to most becoming "zombie apps" with little engagement. It also notes that the cost of acquiring loyal app users continues to rise significantly year-over-year. Beacons are presented as a way to better engage customers by delivering personalized content and ads based on their location and behaviors. Initial results from beacon pilots showed coupon redemption rates that exceeded other types of promotions.

1. @ryanmcraver
Keynote Interview: Beacons
Chuck Martin & Ryan Craver – November 3, 2014

2. App selection is overwhelming making it difficult
and expensive for apps to gain scale
@ryanmcraver
Total iOS Active Apps & Games1
1 Pocketgamer.biz iOS App count by month.
2 Adjust, “Birth, life and death of an app,” July 2014.
Approximately 1.2mm
apps and games are
available in the iOS
store
Ineffective app
discovery/search and
the overwhelming
selection has led to
80%2 of apps becoming
“zombie apps”
App/Game Availability Count
2008-07
2008-09
2008-11
2009-01
2009-03
2009-05
2009-07
2009-09
2009-11
2010-01
2010-03
2010-05
2010-07
2010-09
2010-11
2011-01
2011-03
2011-05
2011-07
2011-09
2011-11
2012-01
2012-03
2012-05
2012-07
2012-09
2012-11
2013-01
2013-03
2013-05
2013-07
2013-09
2013-11
2014-01
2014-03
2014-05
Month & Year
Apps Games

3. The cost of acquiring loyal app users continues to
rise
@ryanmcraver
1 Fiksu, “Cost per Loyal User, 2012 – 2014”
Cost of acquiring a
loyal app user was up
34% YoY to $2.25
The cost of acquiring a
loyal app user
continues its upward
slope since being
tracked in 2012
Cost per Loyal iOS App User1
$2.50
$2.00
$1.50
$1.00
$0.50
$-

4. @ryanmcraver
Customer engagement continues to evolve
GEO PUSH BEACONS PERSONALIZE
Engage customers through
beacons based on
progression through store
Conversion: Medium
Geolocate customers
based on proximity to
store
Conversion: Low
Engage customers through
personalized offers using
browsing/clipping/purcha
se behavior
Conversion: High
BANNERS
Promote offering or
coupon through banner
adds or associated search
results
Conversion: Low
Beacons are driving highly personalized, intent based content
and advertisements

5. Initial results are positive and promising for the
next catalyst
5 @ryanmcraver
 Across the 10 locations in US and Canada, coupon
redemption rates exceeded all other promotions
(initial pilot drove 57% open rate and 29% offer
conversion rate)
Further Catalysts to Drive Adoption
 Educate, educate, educate
 Mega-app(s) adoption
 Brand(s) adoption
 Additional beacon use cases (social, checkout, etc.)

6. @ryanmcraver
Keynote Interview: Beacons
Chuck Martin & Ryan Craver – November 3, 2014