10. The State of the App Economy
Macro factors that have changed mobile content
consumption:
11. The State of the App Economy
Macro factors that have changed mobile content
consumption:
● Cheaper access to quality hardware /
increased smartphone penetration;
12. The State of the App Economy
● Apple’s device install base reached 1.3BN in early 2018 (30% growth in
two years);
● Much of this is driven by second-hand resales as high-end price points
grow (eg. upcoming iPhone XS Max at >$1400). Source: BI Intelligence
13. The State of the App Economy
● Resale market is also robust for high-end Android smartphones;
● Programs like Android Go are designed to give low-end devices access to
computationally-intensive activities (eg. streaming);
Source: Android Authority, Flurry
14. The State of the App Economy
● Chinese demand for smartphones is evaporating;
● Smartphone penetration is reaching its natural limit globally.
Source: GSMA, Canalys, Chase
15. The State of the App Economy
Macro factors that have changed mobile content
consumption:
● Cheaper access to quality hardware /
increased smartphone penetration;
● Cheaper mobile data;
16. The State of the App Economy
● The price of mobile data worldwide, but especially in the US and India, is
plummeting.
Source: Mary Meeker / KPCB, The Motley Fool
17. The State of the App Economy
Macro factors that have changed mobile content
consumption:
● Cheaper access to quality hardware /
increased smartphone penetration;
● Cheaper mobile data;
● Changing platform incentives / new revenue
models;
18. The State of the App Economy
● The success of streaming video and music services forced Apple and
Google to change the economics of subscriptions on their platforms.
Source: Variety, Re/Code, Apple
21. What’s Now and What’s Next?
● The adoption of high-fidelity mobile advertising
formats has created new business models;
22. What’s Now and What’s Next?
● Advertising-reliant businesses (eg. hypercasual games) are viable as a
result of the availability of rich media advertising formats.
Source: Bloomberg, VentureBeat, Re/Code
23. What’s Now and What’s Next?
● The adoption of high-fidelity mobile
advertising formats has created new business
models;
● The Top Grossing charts are “thawing” and
are no longer the exclusive domain of games;
24. What’s Now and What’s Next?
https://mobiledevmemo.com/the-mobile-app-economys-second-act/
25. What’s Now and What’s Next?
https://mobiledevmemo.com/the-mobile-app-economys-second-act/
26. What’s Now and What’s Next?
https://mobiledevmemo.com/the-mobile-app-economys-second-act/
27. What’s Now and What’s Next?
● Pressure is being applied to platform owners as
subscription revenues increase and mobile
gaming participation spans multiple platforms;
28. What’s Now and What’s Next?
● As mobile gaming goes mainstream, streaming revenues on mobile explode, and
mobile apps become genuine platforms, the Platforms’ grip on distribution and
transaction oversight fractures. Source: BGR, Techcrunch, The Verge, Business Insider, ArsTechnica, Facebook.com
29. What’s Now and What’s Next?
https://mobiledevmemo.com/fortnite-skipping-google-play-wont-disrupt-the-status-quo-on-mobile/
But can you
really afford to
bypass the App
Store / Google
Play?
30. What’s Now and What’s Next?
● As credible targeting data becomes ever more
valuable on mobile, consolidation intensifies
and the Duopoly entrenches / reinforces its
walled gardens.
31. What’s Now and What’s Next?
● Consolidation is accelerating in the mobile AdTech / MarTech space as smaller
companies struggle to compete with the Duopoly and larger providers seek vertical
integration. Source: Branch, VentureBeat, AdExchanger, InMobi
32. What’s Now and What’s Next?
● The Duopoly is cordoning off advertiser data and insights with its focus on
algorithmic bidding strategies, creating a virtuous cycle of budget concentration and
data segregation. Source: eConsultancy, Tech Crunch, Mobile Dev Memo
38. 2013 - 2015
LTV
UA Team
Users
“UA”
Purchase signals /
Conversion
optimization
ROAS
milestones
What is mobile user acquisition?
39. 3 Thoughts on Navigating 2019
1) Lean into algorithmic campaign management;
○ Team structure / composition;
40. 3 Thoughts on Navigating 2019
1) Lean into algorithmic campaign management;
○ Team structure / composition;
○ Creative experimentation;
41. 3 Thoughts on Navigating 2019
1) Lean into algorithmic campaign management;
○ Team structure / composition;
○ Creative experimentation;
○ Monetization signaling;
42. 3 Thoughts on Navigating 2019
2) Be creative with monetization;
43. 3 Thoughts on Navigating 2019
Source: TechCrunch, Variety, New York Times, CNBC, Variety
● Exclusively focusing on IAPs forces an unnecessary monetization constraint and
doesn’t exploit the new business models that have been unlocked on mobile over the
past 12-24 months.
44. 3 Thoughts on Navigating 2019
3) Be prepared to face a changing regulatory
landscape.
45. 3 Thoughts on Navigating 2019
Source: AdExchanger, Reuters, The Verge, CNBC
● Increased regulatory scrutiny of social networks and other companies operating
data-intensive applications feels inevitable. Be prepared to operate in a more
restrictive environment.