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iPhone Advertising

  1. 2. iPhone Advertising Presented by CEO, Eric Litman
  2. 3. Medialets is the creative mobile advertising network . . . We are exclusively focused on native mobile applications on devices such as the iPhone and the HTC G1 (Google Android-based) + +
  3. 4. It took 74 days to sell 1 million first generation iPhones.
  4. 5. This time around it took 3 days .
  5. 6. Within 10 days, people downloaded 25 Million applications... Millions of App Downloads Source: Goldman Sachs Global Investment Research Note, 5/26/2008, Americas: Technology: Hardware. 25M
  6. 7. ...and crushed analyst download estimates within 60 days. Millions of App Downloads Source: Goldman Sachs Global Investment Research Note, 5/26/2008, Americas: Technology: Hardware. 100M
  7. 8. Source: Harris Interactive, 2008 Telecom Mobile Trends Report, 2008 Spring Technology Trends and Mobile Advertising Reports Text/SMS is still the preferred method to deliver mobile advertising content.
  8. 9. Mobile ads are reaching deeper... <ul><li>Mobile Internet extends the reach of major sites by 13% over PC traffic. </li></ul>U.S. mobile ad spending is projected to grow from $1.7 billion this year to $6.5 billion by 2012. During a recent 30-day period, 58 Million (23%) US mobile subscribers were exposed to ads. 28 million responded in some way. 1 <ul><li>Nielsen Company News Release 5/1/2008, Mobile Internet Extends the Reach of Leading Internet Sites by 13%. MediaPost Publications 3/27/2008, Mobile Ad Spending Projected to Top $19N by 2012. CellStrat 5/15/2008, Mobile Advertising and Marketing - A New Media Channel v1.0. </li></ul>2 3
  9. 10. ...and that’s just the tip of the iceberg. <ul><li>In Q1 2008, 9.2 Million US subscribers made purchases via mobile phones. </li></ul><ul><li>eMarketer, 6/26/2008. Millions Take Part in Mobile Commerce </li></ul>That’s only 3.6% of all subscribers. 1
  10. 11. Yet most mobile content is lifeless. <ul><li>Traditional delivery of mobile media is: </li></ul><ul><li>Slow </li></ul><ul><li>Hard to read </li></ul><ul><li>Proprietary </li></ul><ul><li>Boring/text-based </li></ul><ul><li>All of the above </li></ul>srsly? }
  11. 12. Mobile users want something that the advertising ecosystem could not effectively deliver…
  12. 13. … until the 3G iPhone and App Store were unveiled App Store were unveiled <ul><li>vs. </li></ul>
  13. 14. Platform People Prolific What Makes The iPhone So Interesting to Marketers?
  14. 15. The iTunes Platform <ul><li>5 Billion Songs </li></ul><ul><li>50,000 Movies/Day </li></ul>Downloading an app is as easy as downloading a song from iTunes
  15. 16. iPhone Users Demographics Skew Male 25-34 College Educated Technically Sophisticated
  16. 17. iPhone User Behavior vs. Other Smart Phones Do 50x more Google searches. Have 40% higher household income.Watch 5x more video on their handsets.Spend 10x more on mobile entertainment.
  17. 18. iPhone Users Are Highly Engaged % of Owners Any news or info via browser Listened to music on mobile phone Accessed web search Accessed Social Networking Site or Blog Watched mobile TV and/or video Watched on-demand video or TV programming
  18. 19. iPhone Users are Younger % of Owners Other Smart Phone Users (Representative)
  19. 20. Engagement = Value vs. ~$30+ CPM ~$2+ CPM Native Functionality/Engagement Metrics/Context
  20. 21. Economies of Scale in the App Store Getting in the... ...in app Downloads Top 100 Top 25 Top 10 200% Boost 500% Boost Orders of Magnitude Boost
  21. 22. Analytics Matter In-app analytics provide metrics that indicate commercial effectiveness and reach, much in the same way that developers can understand user behaviors on the Web
  22. 23. Comsumers think free is better. Millions of App Downloads
  23. 24. <ul><li>There are opportunities both for free and paid apps in the App Store, but free apps present an opportunity to sell ads. </li></ul>Free Apps Offer Ad Space
  24. 25. <ul><li>They are looking for ways to build the largest user base possible while making money. </li></ul>Developers of Free Apps are Seeking Monetization Opportunities
  25. 26. Free = 10x to 20x Downloads Payout To Developer ($1000s) <ul><li>25,000 Downloads </li></ul><ul><li>70% Payout </li></ul><ul><li>10-20x Downloads </li></ul><ul><li>60% Payout </li></ul><ul><li>$12 eCPM </li></ul><ul><li>1.8 Impressions/user/day </li></ul><ul><li>20% Daily return rate </li></ul><ul><li>40% Fill rate </li></ul>Paid Apps Ad Supported vs. Example 6 Month Revenue Comparison