Presentation of Sanoma Media (Herman Kienhuis) during Mobile Convention Amsterdam.

1. Planet of the Apps
Part II - Android strikes back
Mobile Convention, April 19, 2011
Herman Kienhuis (@kienhuis), BusDev Sanoma Media

2. market developments;
mobile internet & tablets
sanoma app development program;
results, plans & learnings

3. Mobile: Always On

4. 1 in 3 people now have a smartphone;
in 2012: 1 in 2
% Smartphone adoption by market
NL
NL data: telecompaper

5. Mobile internet usage booming,
driven by proliferation of apps
NU.nl mobile pageviews
200,000,000
Android
150,000,000
100,000,000
iPhone
50,000,000
m.nu.nl
0
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Source: Sanoma Media

6. Why Apps?
•Developers community: 350.000 apps
•Easy discovery and installation: App Store
•One click payment: iTunes
•Customizable: Personal, Social
•Esthetic Experience: Apple UI
•Speed and accessibility
•Native use of device capabilities: GPS, compass,
accelerometer, tilt-sensor, microphone, camera

7. Mobile advertising growing up
US mobile advertising spend (USD mln)
3000
2000
1000
0
2009 2010 2011 2012 2013 2014
Source: eMarketer, Sep 2010

8. Mobile advertising growing up
! &
Mobile messaging Mobile search Mobile display ads Mobile video
Time targeting Device targeting Content targeting Location targeting
Click to call Click to App Store Request form Coupon Click to buy

9. http://www.flickr.com/photos/schnaars/4544419991/
Tablets: Touching

10. A new category of comfortable
computing devices
Entertainment/ Information/ Entertainment/ Communication/
Inspiration Productivity Creation Monitoring
XL form Short form Medium form XS form
Push Pull Pull Push
TV/DVD Software/ Websites Apps/Websites Apps/Widgets
Movies/ Search/Social/ Ebooks/Photos/ Music/
VideoGames Video Video CasualGames
Hours Hours Quarters Minutes

11. iPad selling faster than iPhone
15 mln iPads sold in 3 quarters*
40,000,000
30,000,000
20,000,000
10,000,000
Actual sales
Analyst projections
0
Apr-10 Jul-10 Oct-10 Dec-10 Apr-11 Jul-11 Sep-11 Dec-11
* vs. 4 mln iPhones in first 3 quarters

12. Strong uptake of iPad sales
(>300.000) and usage in NL
NU.nl iPad app downloads & pageviews
300,000 15,000,000
200,000 10,000,000
100,000 5,000,000
0 0
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Downloads Pageviews Source: Sanoma Media

13. the Dutch iPad user*
•Majority of users is male, 25-44, well
educated
•94% uses the iPad multiple times per day
•84% uses the iPad more than 30 minutes per
day, 54% uses it more than an hour per day!
•3/4 uses it in the evening on the couch, 2/3 at
breakfast, 1/2 in bed, 1/4 on the toilet
* based on NU iPad App users survey (Q3 2010, n=5000) Source: Sanoma Media

14. the Dutch iPad user:
uses it for rich media consumption
News
Browse web
Search
Email
Games
TV/video
Photos
Social networking/blogging
Reading magazines
Reading books
Notes / word processing
Music
Shopping
Business presentations
Chat / messenging
Drawing / image processing
0 25 50 75 100
Often Sometimes
Source: Sanoma Media

15. Tablets changing reading habits?
phone computer tablet
31% 62% 6%
overall overall overall
views views views
In the morning, relative People reading on computers iPad readers read more news
readership across all three consumer their greatest share of on the device at night than
platforms ramps up quickly online news that way during the day during other times of day
10%
8% Computer
7%
5% Smartphone
3%
iPad
2%
0%
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Source: NU.nl (based on sample data)

16. Future of Digital Magazines?

17. Future of Digital Magazines!
Autoweek in-app edition sales
Chart N/A
• Tablet adoption growth: +300% sales expected in 2011
• Other formats: ST: more simple; LT: more dynamic:
personalized, real-time, video
• Subscriptions: PopularScience sold 10,000 iPad subs in 5 wks
• Better in-app & subs marketing: we’re on learning curve
Source: Sanoma Media

19. market developments;
mobile internet & tablets
sanoma app development program;
results, plans & learnings

20. Part I: A New Hope
Speed up Create
investment scale
Build-up of
Learning
internal
by doing
expertise

21. Speed up Fund &
investment guide
Part I: A New DDope Create
Share
concepts scale
& code
2010:
>40 apps
Measure
& Learn Develop
Learning & market Build-up of
by doing internal
expertise

22. Apps (NL)
Q2 2010 Q3 2010 Q4 2010
Grazia Autoweek iPad (2.39) EHBO kids (2.39)
Hier.nl Kieskeurig Playboy Android
NUsport Zwanger (1.59) Viva iPad (2.39)
WK voetbal (1.59) Gamer Lekker 2011 (4.99)
NU24 Gamer iPad Weekmenu
NU iPad GameRelease Kwaak Wekker
Dnews iPad

23. Growing app downloads;
revenues getting serious
250,000
Downloads
(mobile &
200,000
tablet apps)
150,000 Sep. 2010: >1 mln downloads
100,000 March 2011: >2 mln downloads!
50,000
0
€250,000
Revenues
(mobile &
€200,000
tablet)
€150,000
€100,000
€50,000
€0
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Source: Sanoma Media

24. 2011:
Part II: Android Strikes Back
>80 Apps (int.)
Android apps
Kids apps
App directories
Shopping apps
Magazine apps
Location based
Interactive ads
Custom apps

25. Apps (NL)
Q1 2011 Q2 2011 Q3/Q4 2011
Jaar in beeld iPad (1.59) Autoweek Android Kieskeurig
Gamer Android Autotrader Android
GoeieVraag Android NUsport
Autotrader Android
GameTron
iPad NUsport iPad
Horoscoop iPad (0.79) VTwonen iPad
GameTron iPad
QRscanner.nl Linda iPad
Viva Forum
Memory+ (2.39) Playmate clock Styletoday
Woordjes+ (1.59) Margriet iPad
actief Lekker 2012
StartApp+ Delicious iPad
Tellen+ Shopping
Puzzelen+ guides
Keet iPad Shopping
Mahjong iPad catalogues+
VTwonen Styling
shopgids Gardening
NUtvgids iPad Coloring
Belegger Dieting
Ooggetuige+ DIY
Styletoday Quiz
Tijdschrift.nl Planner
iPad Walking

26. Previews !

27. Some learnings

28. Learning by
doing

29. Own property rights

31. Don’t repack
the old medium

32. Compared to a touch,
clicking is boring

33. Design for fingers,
not for eyes only

34. Provide multiple
entry and exit points

35. It’s about the App Store

36. Get feedback

37. Thank you
Applause
@kienhuis