Greg SterlingSterling Market Intelligence/Opus Research

A Few Words about Mobile Apps

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SMS: Broadest reach, platform “agnostic”

Apps: Richest experience, smaller audience

Mobile Web: PC sites rendered in browsers can be

optimized

Reach Functionality

Segments: SMS, M-Web, Apps

• The iPhone has popularized mobile applications

• Now every major smartphone platform has apps; many operators too

Apps Pre-Date the iPhone, but . . .

Apps All Around

The Major Platforms:

iPhone: 100,000 (approx); 2 billion downloads

Android: 10,000

RIM/BlackBerry: 3,040

Nokia Ovi Store: 660

Windows Mobile (Marketplace): 246

Palm: 100 official, 280 “homebrew”

Source: company reports, range of estimates

Number of Downloads (Monthly)

Source: AdMob 8/09, (US data)

Engagement: Time Spent with Apps

Source: AdMob 8/09, (US data)

Many Intentions & Uses of Apps

Branding

Zippo Lighter

Rugby (Ralph Lauren)

New Revenue

Sports Illustrated

Jimmy the Bartender

Reference Apps

Games

Advertising

Seventeen Magazine

Style.com

Commerce/Lead Gen

Amazon Mobile

eBay

Adobe

Meaningful Revenues (for Companies)

Generated US$1 million in sales since launch -- roughly 3 mos. ago

Meaningful Revenues (for Developers)

Pinch Media:

iPhone: 2B app downloads; paid apps 610M of that

Revenue earned by developers in 15 mos. approx US$900M

Hypothetical average paid app revenue to developers: $12,100 ($8.5K net) £7446 (£5230)

• No “average” (only big winners and underperformers)

Paid Apps Used More Heavily

Source: Pinch Media (10/09)

Usage of Most Apps Doesn’t Last

Most apps are downloaded but abandoned quickly