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19/08/13

FRESH THINKINGGETTING TO KNOW APPS

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AGENDA

• Definition and evolution• Snapshot of current market• What does the future hold?• Money makers• App usage• Examples• Challenge

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DEFINITION – APP

An app is a computer programme designed to help people perform an activity

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DEFINITION – MOBILE APP

“A type of application software designed to run

on a mobile device such as a smartphone or tablet.”

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QUICK QUESTION…

What was the first mobile app you owned?

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EVOLUTION

Early 90s Present day

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EVOLUTION

Early 90s Present day

July 10th 2008Advanced Packaging Tool - 1998

Click n Run - 2003

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THE APP STORE

550,000

900,000

500

Brandon Ashmore820

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MAIN PLAYERS

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MAIN PLAYERS

1000,000July 2013

145,000May 2013

120,000May 2013

120,000August 2012

................................................................................................................................................CURRENT SNAPSHOT

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APPS ARE BIG BUSINESS

56 billion downloads in 2013 ABI Research

Expected to make $25 billion in revenue, up 62% Gartner

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ANDROID GETS MORE HITS

www.canalys.com/newsroom/11-quarterly-growth-downloads-leading-app-stores#sthash.pAbZCqrL.dpuf

MORE DEVICES, MORE DOWNLOADS

Apple Vs Android – Monthly App downloads 2010-2013

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IOS GETS MORE MONEY

www.canalys.com/newsroom/11-quarterly-growth-downloads-leading-app-stores#sthash.pAbZCqrL.dpuf

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HOW DOES IOS GENERATE MORE REVENUE?

• iOS users already have a greater affinity for apps

• iOS users spend more time on their apps

• The more time people spend in apps, the more money they’re likely to spend

• Apple has high standards and consumers like (and will pay for) quality

• Developers more likely to develop for the platform where the money is

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POWER OF APPLE

................................................................................................................................................WHAT DOES THE FUTURE HOLD?

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A BIG MARKET THAT’S ONLY GOING TO GET BIGGER

$ $ $ $

More than 200 billion downloads per year by 2017Portio Research

6.8 billion mobile subscriptions worldwide – but only 17% of mobile subscribers use appshttp://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/e

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SMARTPHONE GROWTH CONTINUES UPWARDS

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INCREASE IN TABLET USAGE INCREASES ITS INFLUENCE TOO

Users in the UK are more likely to browse via tablet than smartphone.

................................................................................................................................................MONEY MAKERS

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SUCCESS STORIES

$250K in first two months

$600K in a month in 2009

$2.4m every day from two gamesReleased first mobile game in July 2012, now valued at $770m

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WORLD’S MOST EXPENSIVE APPS

Reyburn CyberTuner: piano tuning app

iVIP Black: "the millionaire's app"

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WHAT CUT DO DEVELOPERS GET?

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WHAT CUT DO DEVELOPERS GET?

70%

70%

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WHAT CUT DO DEVELOPERS GET?

56-70% depending on developer’s country70%

70%

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PROFILE OF AN APP DEVELOPER

................................................................................................................................................RISE OF THE FREE APP

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CHOICE & EMERGING MARKETS INFLUENCING COST

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MAKING MONEY FROM FREE APPS

The Freemium UpsellSecond version of your app that’s paid.

In-App PurchasesIn-app purchases allow users to unlock features or purchase more of something

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MAKING MONEY FROM FREE APPS

CPI Networks (Cost Per Install)A “pop-up” in games and apps, prompting people to look at another game – pay a 3rd party for every installSponsorshipWhite label an app for $XXX.”, or update an existing app with brand nameAdsRequire a sizable amount of traffic...

“It's time to shift the conversation away from whether there should be ads in apps at all, and instead determine how to make ads in

apps as interesting and relevant as possible for consumers, and as efficient and effective as possible for advertisers and developers."

................................................................................................................................................APP USAGE

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QUICK QUESTION…

How many apps do you have?

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AVERAGE USER

30-4082hrs

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QUICK QUESTION…

What apps do you use?

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AVERAGE USER

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AVERAGE USER

TOP 3 MOST DOWNLOADED PAID IPHONE APPS OF ALL TIME

TOP 3 MOST DOWNLOADED FREE IPHONE APPS OF ALL TIME

TOP 25 MOST DOWNLOADED PAID IPAD APPS OF ALL TIME

TOP 25 MOST DOWNLOADED FREE IPAD APPS OF ALL TIME

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NEED STATES

• Entertain me• Games• Video• Music• Books

• Keep me connected• Facebook• Twitter

• Help me do something• Organising (banks,

utilities)• Booking (trains)• Buying (amazon, ebay)

• Make me more informed• News• Weather

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MOST POPULAR APPS – IOSTOP 25 MOST DOWNLOADED PAID IPHONE APPS OF ALL TIME

TOP 25 MOST DOWNLOADED FREE IPHONE APPS OF ALL TIME

TOP 25 MOST DOWNLOADED PAID IPAD APPS OF ALL TIME

TOP 25 MOST DOWNLOADED FREE IPAD APPS OF ALL TIME

1. Angry Birds2. Fruit Ninja3. Doodle Jump4. Cut the Rope5. Angry Birds Seasons6. WhatsApp Messenger7. Camera+8. Words With Friends9. Tiny Wings10.. Angry Birds Space11. Pocket God12. Plants vs. Zombies13. The Game of Life Classic Edition14. The Moron Test15. Where’s My Water?16. Draw Something17. Monopoly18. Angry Birds Star Wars19. MotionX GPS Drive20. Skee-Ball21. Scrabble22. UNO23. Minecraft – Pocket Edition24. Color Splash25. The Sims 3

1. Facebook2. Pandora Radio3. Instagram4. YouTube5. Skype6. Words With Friends Free7. The Weather Channel8. Twitter9. Temple Run10. Google Search11. Netflix12. Shazam13. Angry Birds Free14. Draw Something Free15. Flashlight16. Facebook Messenger17. Google Earth18. Fruit Ninja Free19. iHeartRadio20. Movies by Flixster, with Rotten Tomatoes21. Bump22. eBay23. PAC-MAN Lite24. Groupon25. Google Maps

1. Pages2. Angry Birds HD3. Angry Birds Seasons HD4. Where’s My Water?5. Fruit Ninja HD6. Angry Birds Space HD7. GarageBand8. Words With Friends HD9. Cut the Rope HD10. Keynote11. Numbers12. Angry Birds Star Wars HD13. GoodReader for iPad14. Scrabble HD for iPad15. Minecraft – Pocket Edition16. Plants vs. Zombies HD17. Notability18. Monopoly for iPad19. Quickoffice Pro HD20. Star Walk HD21. Draw Something22. iMovie23. iPhoto24. Where’s My Perry?25. Bad Piggies HD

1. Skype for iPad2. The Weather Channel for iPad3. Netflix4. Angry Birds HD Free5. Kindle6. Facebook7. Pandora Radio8. Calculator for iPad Free9. Fruit Ninja HD Free10. Words With Friends HD Free11. Google Earth12. ABC Player13. Calculator Pro for iPad Free14. Temple Run15. YouTube16. eBay for iPad17. CNN App for iPad18. Dropbox19. Adobe Reader20. Twitter21. Solitaire22. NYTimes for iPad23. Temple Run 224. Hulu Plus25. Draw Something Free

Entertain me Keep me connected Help me do something Make me more informed

................................................................................................................................................EXAMPLES

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ENTERTAIN ME

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KEEP ME CONNECTED

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HELP ME DO SOMETHING

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MAKE ME MORE INFORMED

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CREATING RICHER EXPERIENCES

................................................................................................................................................WHAT MAKES A GOOD APP?

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COMPONENTS OF A GOOD APP

• Useful• Understands the context in which it is being used

• Location• Audio• Video

• Easy to use• Makes life simpler/easier/better• Quick to download• Entertaining• Minimal text• Offers something only an app can offer

Over 30% of apps available in the App store are unused a day after downloading, either being deleted or left wasting space on the dashboard.

................................................................................................................................................THANKS FOR LISTENING!