1. The New Era of Mobile First
NOVEMBER 2012
The New Era of Mobile First
Peter Farago, VP Marketing

2. App Measurement & Advertising Platform
Device Reach
Monthly Unique Users
800M
Analytics
Companies
85K
Applications
260K
Daily Sessions 2B
Ad Platform
Monthly Conversions
100M

3. One Trillion Events Per Month
WW iOS & Android App Events Measured by Flurry, Billions
Source: Flurry Analytics, May 2008 – November 2012

4. History in the Making

5. The Fastest Adopted Technology. Ever.
iOS & Android devices vs. top technologies, 5 years after introduction
10X 2X 3X
FASTER than the
1980s PC REVOLUTION
FASTER than the
1990s INTERNET BOOM
FASTER than current
2000s SOCIAL NETWORKING
Smartphones are the fastest growing technology in terms of worldwide adoption.
Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry

6. Electricity

7. Radio

8. Television

9. Microwaves

10. VCRs

11. Cell Phones

12. Refrigerators

13. Dishwashers

14. Stoves

15. Why, Just This Morning…

16. New Single Day Device Activation Record Shattered
New iOS & Android Device Activations, Christmas Day 2012 (millions)
+332%
Average, Dec
December 25
Source: Flurry Analytics. December 2012

17. New Single Day App Download Record Shattered
New iOS & Android App Downloads, Christmas Day 2012 (millions)
+112%
Average, Dec
December 25
Source: Flurry Analytics. December 2012

18. It’s About Computing Not Telephony
iOS & Android Devices Activated, Smartphones vs. Tablets
Tablets
20%
Tablets
51%
Smartphones
49%
Smartphones
80%
December 1 – 20
December 25
Source: Flurry Analytics, December 2012

19. The New Global Village

20. A Global Phenomenon
Top Countries by Active iOS & Android Devices (millions)
487 in Feb
519 in March
529 in April
Source: Flurry Analytics active devices Oct 2012

21. More than 30 Countries Doubled in Last 12 Months
Fastest Growing iOS & Android Markets by Active Devices
Source: Flurry Analytics, Oct 2011 – Oct 2012, countries with at least 500k active devices as of Oct 2011

22. The Disruption Juggernaut

23. Apps Disrupting Gaming
U.S. portable game software by revenue
2009
2010
2011
iOS & Android
Sony PSP
Nintendo DS
Source: Flurry Analytics, The NPD Group; Flurry analysis & estimates

24. But We’re Moving Beyond Gaming
WW iOS & Android Smart Device Time Spent per App Category
Source: Flurry Analytics, November 2012

25. (Pandora, Spotify, Amazon, etc.)
Apps Disrupting Music
2011 Album Sales Up, First Time Since 2004
iTunes
Physical
Sales
Digital
Sales
Others
(Pandora, Spotify, Amazon, etc.)
Source: Nielsen/Billboard- SoundScan for CY 2011

26. Apps Disrupting Social
Average daily time spent in minutes 25 22
MINUTES
MINUTES
Facebook
Social Mobile Apps
Source: Flurry Analytics, Nielsen; Worldwide July 2012

27. Lean Forward? Lean Back?
Who the Hell Knows?

28. Apps Passed The Web, Approaching TV
U.S. Web vs. Mobile App vs. TV Consumption, Minutes per Day
168
168
162
127 94 70 72 70 66
Web Browsing
Mobile Applications
Television
Sources: comScore, Alexa, U.S. Bureau of Labor Statistics, Flurry Analytics

29. Apps Impact Television
App Sessions Started per Second in U.S. During Super Bowl
RETURN FROM COMMERCIAL BREAK
RETURN FROM COMMERCIAL BREAK
GIANTS DRIVE (FIELD GOAL)
BATTLESHIP MOVIE AD
COIN
TOSS
MADONNA
HALFTIME SHOW
KICK
OFF
EXCITING LAST FEW
MINUTES OF THE GAME
TAX ACT AD
COCA-COLA POLAR BEAR AD
Source: Flurry Analytics

30. There’s Money in Them Thar Hills

31. 129% CAGR App Revenue is Scaling Billions Virtual Goods Advertising
Source: eMarketer, Mary Meeker (KPCB)

32. Consumers Migrating to Mobile Apps
2011 U.S. ad spend versus time spend per media
Ad Spend per Media
Time Spent per Media
Sources: VSS, Mary Meeker (KPCB), comScore, Alexa, Flurry Analytics

33. There Will Be Naysayers

34. Investor Skepticism
It’s hard to make money in mobile and apps
It’s expensive to scale an app business
A minority is capturing the majority of revenue

35. Investor Skepticism
It’s hard to make money in mobile and apps
It’s expensive to scale an app business
A minority is capturing the majority of revenue

36. Mobile Revenue Growth US Display Advertising and Virtual Goods Revenue
Billions
Web (Browsing)
Mobile Apps
Source: eMarketer, Flurry, Comscore

37. Investor Skepticism
It’s hard to make money in mobile and apps
It’s expensive to scale an app business
A minority is capturing the majority of revenue

38. App Traffic Acquisition
Cost per Visit, Apps versus The Web
Web
Apps
Source: eMarketer, Flurry

39. Investor Skepticism
It’s hard to make money in mobile and apps
It’s expensive to scale an app business
A minority is capturing the majority of revenue

40. Revenue Distribution
Number of Companies Controlling 66% of Revenue (Ads and Apps)
248 5
Web
Apps
Source: eMarketer, Flurry

41. FIRST ^
SHOULD YOU HAVE A MOBILE
STRATEGY?

42. DECEMBER 2012
Thank You

43. How You Touch Me Matters

44. Loyalty by Application Category

45. Tablet Users Trend Older
Age Distribution, Smartphones versus Tablets
Average Age
Smartphones: 30
Tablets: 34
55+
Smartphones
Tablets
Source: Flurry Analytics, Sep 2012

46. Tablet Usage is More Gender Balanced
Gender Comparison, Smartphones versus Tablets
44%
56%
49%
51%
Smartphones
Tablets
Source: Flurry Analytics, Sep 2012

47. Tablet Usage Is More Concentrated during Primetime
Usage by Hour, Smartphones versus Tablets
Smartphones
% of Audience Using
Tablets
Hour of Day
Source: Flurry Analytics, Sep 2012

48. Tablet Usage More Media & Entertainment Oriented
Time Spent per Category, Smartphones versus Tablets
Smartphones
Tablets

49. Tablet Usage is Longer but Less Often
App Engagement, Smartphones versus Tablets
Weekly Frequency of Use
Minutes per Session
Smartphones
Tablets

50. DECEMBER 2012
Thank You