trends in mobile consumer technology q3 2013

Mobile Trends: Q3 2013

Monday, 23 September, 13

Adam Epstein Lawyer - Founder

Consumer Mobile Technology

Mobile, Startups, Design Thoughts: Twitter -- @aepstein32

Mobile Culture: Medium: medium/@aepstein32

Monday, 23 September, 13

Mobile Sports Scheduling for Recreational Athletes

Leveraged: Location, Calendar, Contacts ... Camera, Payments

+3000 Users, Featured by Apple App Store in 3 Countries

Featured by: Globe and Mail, Financial Post, Inspired UI,

The Next Web, BetaKit, New Startups

Head of Product and Business Development

Monday, 23 September, 13

“Mobile is the only thing bigger than its own hype in tech” -

Rohit Sharma Partner True Ventures

Monday, 23 September, 13

Monday, 23 September, 13

Monday, 23 September, 13

3 Themes

• Mobile App Distribution

• Mobile Messaging Apps

• Mobile Retail: Online/Offline

Monday, 23 September, 13

Mobile App Distribution

• 2 billion iOS apps downloaded each month

• 2.5 billion Android apps downloaded each month

People Want Apps!

Monday, 23 September, 13

Mobile App Distribution

• 1,000,000 iOS Apps

• 800,000 Android Apps

Developers Are Building Lots of Mobile Apps!

Monday, 23 September, 13

Distribution of Apps is the #1 Problem for Mobile

App Developers Right Now

For Developers: Gold Rush Mentality

For Consumers: Overwhelmed by Choice

Monday, 23 September, 13

How do people find apps?

• App Stores ....

• Facebook Mobile App Installs

Monday, 23 September, 13

Facebook Mobile App Installs

• Launched in October 2012

• Revamped in March 2013

• seamless

• one-click experience

Monday, 23 September, 13

Facebook Mobile App Installs

• The first way to target distribution of a mobile app at scale:

• interests,

• social graph + social context

• location

• wifi or no wifi

Monday, 23 September, 13

Facebook Mobile App Installs

• Cost Per Install: ~<$1.00 Conversion Rate: ~5%

• Facebook’s Q2 Earnings:

• 15.8% of Global Mobile Ad Revenue

• 41% of FB Ad Rev from Mobile

• “Incredibly Cost Effective” ... “No behavioural differences than organic users” - Founder of Poshmark

• vs. a one time purchase, App installs = “long term user acquisition tactic” - CEO of 1-800 Flowers

Monday, 23 September, 13

Mobile App Installs = Massive Opportunity

• July 2013: Twitter launches mobile app installs

• Who’s Next?

• LinkedIN for professional apps?

• Yelp for local apps?

• Tumblr for creatives?

Monday, 23 September, 13

How will distribution change?

• Distribution partnerships between mobile apps:

• Most prevalent in games

• TapJoy, and AppFuel

• Any mobile social app with scale can provide mobile app installs targeted to their specific demographic

Monday, 23 September, 13

Mobile Messaging Apps:

The True Mobile Social Applications

Monday, 23 September, 13

• January 2013 - Boomaling Studio (two angry bird founders) launch their first game: Nutlings Tournament

• First Week: 600,000 downloads

• Lackluster Retention and Monetization

Monday, 23 September, 13

250 Million Users (primarily Asia)

Gaming Platform: 150 Million Users

33 Hand Picked Games

Q2 Revenue: $132,000,000 - 1/2 Gaming Platform

45.3% Increase from Q1

350% increase YOY

Monday, 23 September, 13

“This is a way to solve the discovery problem, because instead of being in the same store, they’ve created a substore with their own customers, and

can filter the games put out there”

“They have this huge userbase and with relatively low effort we can get another game launched”

Monday, 23 September, 13

Mobile Messaging Market

• Line - +230 Million Users (Asia, Spain)

• Whatsapp - +300 Million Users

• WeChat (TenCent)- +230 Million

• Viber - +200 Million Users

• Kik - +80 Million Users

• KakaoTalk, MessageME, Relay, FB, Path

Monday, 23 September, 13

Why Are Messaging Apps So Powerful?

• Mobile First Experience

• High Ratio of DAU’s: Registered Users

• Engaged Audience

• Small Network Effects Required

Monday, 23 September, 13

Messaging Apps = The New FB OpenGraph

• 2010-2012 - Open Graph was #1 mechanism for growth and distribution

• Last 18 months:

• dubious developer relationship

• no transparency / product changes

• not mobile

Monday, 23 September, 13

3rd Party Apps in Messaging Apps

• Primarily Games -- other: productivity, social

• Line, Kik, KakaoTalk

• Mobile First Targeted Distribution

• Hand Picked + High Quality = Consumer Trust

Monday, 23 September, 13

Mobile Messaging Apps are not replacements of text/phone

They are mobile first Entertainment Platforms

Monday, 23 September, 13

Stickers!

Monday, 23 September, 13

Stickers are a native mobile language with

branded dialects

Monday, 23 September, 13

What are stickers?

• Emoticons are a mobile texting language

• Stickers are supercharged emoticons

• Each sticker pack is a different dialect

• Each dialect is represented by a brand

Monday, 23 September, 13

Who’s Using Stickers

• First Mover: Line

• $10 mil/per month rev in stickers

• 1 billion stickers sent/per day

• Everyone Followed After:

• FB, Path, MessageMe, Kik, WeChat

Monday, 23 September, 13

Brand Partnerships• Line: FC Barca,

Real Madrid, Disney

• Path: NFLPA, Breaking Bad

• Facebook: Despicable me

Monday, 23 September, 13

"If you post something on Facebook, it’s only going to show up on your specific network, whereas here we can get something in front of +125 million users.”

-Michael Parisi SVP Marketing at RadiumOne

Monday, 23 September, 13

The Power of Branded Stickers

• Efficient advertising mechanism on mobile

• Measurable distribution and engagement at low cost:

• supply of merchandise

• creative decision

• marketing materials

• First native mobile experience between brand and fan

Monday, 23 September, 13

“What we’re looking for is how much interaction is going on, what are people sharing and other data like that. This gives us a new chance to observe and measure our interactions [with consumers],”

Michael Parisi On finding preferred flavours for

PopChips Sticker Campaign

Monday, 23 September, 13

Line =Stickers Done Right

• Free

• Must Add the Brand as a Friend

• Brand can now send you exclusive promotions, videos, and messages

• Personalized Experience

Monday, 23 September, 13

Mobile Retail:

Bridging Online and Offline

Monday, 23 September, 13

Monday, 23 September, 13

Monday, 23 September, 13

Bluetooth LE

• 1 year single charge

• no pairing required

• within 50m

• limited to no drain on battery

• iBeacon --> iOS7

Monday, 23 September, 13

End of NFC

End of Bumping Phones

Monday, 23 September, 13

Contextual Retail

Monday, 23 September, 13

Contextual Retail

• iOS7 sophisticated indoor mapping

• Supports “Enter” and “Exit” events

• Customized Coupons

• Recommendations based on history

• Personalized alerts and notifications

Monday, 23 September, 13

Macy’s Example

• Average Area: 16,258 sq metres

• Average iBeacon range: 50 sq metres

• Store only requires 7 iBeacon devices

Monday, 23 September, 13

Estimote

• YCombinator Summer 2013

• 3 Beacons for $99

• SDK to build into 3rd party applications

Monday, 23 September, 13

PayPal Beacon

• Download Revamped PayPal app

• Auto Check-In to Store

• Integrates with POS

• Just Walk Out - And You’ve Paid

Monday, 23 September, 13

Is Retail Doomed?

• Selection

• Speed of Purchase

• Price

Monday, 23 September, 13

The Only Competitve Advantage of Retail:

Experience

Monday, 23 September, 13

Wrap-Up • Distribution of Mobile Apps is a HUGE

problem - developers are desperate for a solution

• Messaging Apps are the Mobile Social Network - massive opportunity

• Contextual Retail is Here - New Experience

Monday, 23 September, 13

Questions?

Monday, 23 September, 13