Mobile VAS & Apps Conference, 2012, Sankt Petersburg Russian and global mobile VAS market trends The mythical mobile app developer (Michael Vakulenko, Strategy Director, VisionMobile)

1. VisionMobile
The Mythical App Developer Mobile VAS Conference
Copyright VisionMobile 2012
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2. VisionMobile
Distilling market noise into market sense
Developer Economics Telco Economics Trends watch
the de-facto research hub for the app New economic thinking for managing Tracking app and developer trends
economy disruption and reinventing the Telco
Mobile Market Sonar
Innovation a quarterly service
Developer Economics using big data to
research workshop predict app economy
reports: how Internet trends
measuring business models
developer are impacting
sentiment on telecoms
platforms, regions,
revenues and
developer tools
Mobile Insider Mobile
Mobile Insider is Megatrends
a monthly workshop
Developer publication that Public workshops
outreach & examines the on the stage of the
segmentation: most important mobile ecosystem
understand, trends in mobile
segment and
effectively reach
developers Top-100 analyst blog
4,000+ subscribers
20,000+ monthly uniques
App
ecosystems:
Research and analysis
on the state of the app
economy
Copyright VisionMobile 2012
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3. Trusted by industry brands
from an established analyst company
Clients
selected clients 2009-2012
selected
VisionMobile clients
2008-2012
Page 4
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4. Apps is just the tip of the iceberg
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5. The new rules of the game in mobile
telco need new skills to compete in the new market environment
old rules new rules
share of needs,
attention & wallet
4 apps 700,000+ apps
(voice, text, contacts, camera) (encompassing all user needs)
service
telco platforms
distribution
basis of reliability & scale choice & flexibility
competition of networks of services
business
models proven & predictable new & unpredictable
Source: VisionMobile Copyright VisionMobile 2012
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6. Duopoly in smartphone platforms
iOS and Android dominate shipments and developer mindshare
100K apps Apple
dominates
high-end
700K apps segment
700K apps
Android takes
the rest
Source: Business Insider
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7. Duopoly in smartphone shipments
two players dominate shipments and profits – both have advantage of tailored value-chain
2 players
dominate
smartphone
shipments
8 OEMs with
more than 2%
market share
Source: Asymco
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8. The 2nd wave of disruption in the handset market
hardware becomes distribution vehicle for digital services and e-commerce
traditional model emerging model
hardware = profits hardware = distribution
Take most
profits
Lose money
or break-even
No Name
Source: VisionMobile Copyright VisionMobile 2012
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9. Apps are key competitive advantage for platforms
satisfy wide spectrum of needs and use cases
700,000 apps 700,000 apps
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10. Platforms win by locking users to developers
drive exponential growth and lock-in of users and developers
users are locked by habits Platform Developers are locked
represented by apps by skills and experience
app store locks developers to users
Source: VisionMobile
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11. Developers are key resource for platforms
key challenge is sorting through the noise
plethora of dev tools telecom overlays
Developer mindshare leaders
chipset makers telco API and app stores
competing platforms handset makers
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12. www.DeveloperEconomics.com
Free research reports on app economy and developer ecosystem
help developers
build a successful
app business
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13. Copyright VisionMobile 2012
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14. Copyright VisionMobile 2012
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15. VisionMobile developer segmentation model
What is a developer?
Developers differ greatly in platform & API decisions
Motivations & drivers
Hobbyists Fun and coolness
Explorers Opportunity and ancillary income
Hunters (pro developers) Profits from apps
Guns-for-hire Probability of winning a project
Brands and verticals Brand affinity and user engagement
Digital content publishers Access to large addressable market
Venture-backed startups Attracting investment and achieving exit
Corporate IT De-risking and information security
15
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16. User reach trumps monetisation
for developers of all platforms except BlackBerry
user reach monetisation
Ranking of developer’s goal by platform
%% on 7 major platforms (n = 1,431)
Source: VisionMobile, based on data from Developer Economics 2012 survey
Copyright VisionMobile 2012
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17. Developing for clients or an employer pays better
average app/month revenue by employment type (n=995)
Source: VisionMobile, Developer Economics 2012 | www.DeveloperEconomics.com
Licensed under Creative Commons Attribution 3.0 License
Copyright VisionMobile 2012
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18. Finance & real-estate generate highest revenues
average revenue per app/month by client industry (n=665)
Source: VisionMobile, Developer Economics 2012 | www.DeveloperEconomics.com
Licensed under Creative Commons Attribution 3.0 License
Copyright VisionMobile 2012
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19. Hard work pays more - rewards vary by platform
average revenue per app/month by development time (n=695)
Source: VisionMobile, Developer Economics 2012 | www.DeveloperEconomics.com
Licensed under Creative Commons Attribution 3.0 License
Copyright VisionMobile 2012
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20. Apps developed in the US pay better
average revenue per app/month by country (n=384)
Source: VisionMobile, Developer Economics 2012 | www.DeveloperEconomics.com
Licensed under Creative Commons Attribution 3.0 License
Copyright VisionMobile 2012
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21. Developer Economics 2013 (January 2013)
2,840+ Developer
tools & services
responses Ad networks
Backend-as-a-service
Total responses 3,460 Bug tracking
Cross-platform tools
Cross-promotion networks
User analytics
Voice services
20+ marketing Translation in 6
partners languages
Marketing and Regional French, German, Korean,
partners from across the globe Portuguese, Russian, Spanish
Copyright VisionMobile 2012
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22. Developer Journey methodology
Maps full spectrum of issues facing app developers, from app conception to user support
- concept design - developer registration & certification - curation
- feature design - app signing & certification - pricing, bundles
- APIs available - app submission - advertising & promos
- prototyping tools - regional testing - cross-app promos
- audience targeting - beta testing with end users - app marketing & PR
- platform selection - localisation frameworks - app merchandising
- conferences & competitions - packaging and SKU management
application develop & market distributiion & retailing &
monetisation in-use
planning debug readiness discovery
- platform APIs - app publishing - sales analytics
- IDEs, SDKs, samples & docs - distribution agreements - usage analytics
- UI creation tools - billing providers - runtime profiling
- content creation tools - in-app advertising - user ratings mgmt
- debugging & profiling tools - paid apps - user support
- forums, sites and tech support - virtual goods - app updates
- test frameworks - revenue share - privacy compliance
- porting tools - payment settlement
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23. Usage of tools vary by platforms
Use of services and tools by primary platform (n=2,898)
Services(&(Tools(for(developers((n=2,898)(
50%$
46%$
43%$
39%$ 38%$
40%$
34%$
31%$
28%$ 29%$
30%$ 27%$
25%$ 25%$
22%$ 21%$
20%$ 19%$ 21%$
20%$ 18%$
16%$ 15%$
15%$ 15%$ 15%$
13%$
9%$ 9%$ 9%$9%$
10%$ 8%$7%$
6%$ 6%$ 7%$
5%$ 5%$ 4%$
0%$
Ad$networks$ User$analy;cs$ Cross$pla?orm$tools$ Bug$tracking$services$ BackFend$as$a$Service$ Cross$promo;on$ Voice$services$
networks$
Android$ BlackBerry$ HTML$ iOS$ Windows$Phone$
Source: VisionMobile, Developer Economics 2013 | www.DeveloperEconomics.com
Licensed under Creative Commons Attribution 3.0 License
Copyright VisionMobile 2012
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24. build.DeveloperEconomics.com {Beta}
“TripAdvisor” for building a successful app business
Which platform? Developer tools How to reach more users?
Budget planning How to reduce costs? How to engage them?
Revenue expectations How to improve time-to- How to monetize your users
Which business model? market? more effectively?
Which region/market? Lean mobile development
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25. Thanks for listening!
Knowledge. Passion. Innovation.
michael@visionmobile.com
Michael Vakulenko | Strategy Director | +44 2033 844166
Updated: 12 November 2010
Copyright VisionMobile 2012
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26. want more? http://visionmobile.com/strategy
“Mobile Innovation Economics”
learn the rules of ecosystem game
and asymmetric competition
“Telco Innovation Toolbox”
economic and strategy tools for
rethinking telco business
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