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Mobile Trends:
Q3 2013
Monday, 23 September, 13
Adam Epstein
Lawyer - Founder
Consumer Mobile Technology
Mobile, Startups, Design Thoughts:
Twitter -- @aepstein32
Mobile Culture:
Medium: medium/@aepstein32
Monday, 23 September, 13
Mobile Sports Scheduling for Recreational Athletes
Leveraged: Location, Calendar,
Contacts ... Camera, Payments
+3000 Users, Featured by Apple App
Store in 3 Countries
Featured by: Globe and Mail, Financial
Post, Inspired UI,
The Next Web, BetaKit, New Startups
Head of Product and Business
Development
Monday, 23 September, 13
“Mobile is the only thing bigger than
its own hype in tech” -
Rohit Sharma
Partner True Ventures
Monday, 23 September, 13
Monday, 23 September, 13
Monday, 23 September, 13
3 Themes
•Mobile App Distribution
•Mobile Messaging Apps
•Mobile Retail: Online/Offline
Monday, 23 September, 13
Mobile App Distribution
• 2 billion iOS apps downloaded each month
• 2.5 billion Android apps downloaded each
month
People Want Apps!
Monday, 23 September, 13
Mobile App Distribution
•1,000,000 iOS Apps
•800,000 Android Apps
Developers Are Building Lots of Mobile Apps!
Monday, 23 September, 13
Distribution of Apps is the #1
Problem for Mobile
App Developers
Right Now
For Developers: Gold Rush Mentality
For Consumers: Overwhelmed by Choice
Monday, 23 September, 13
How do people
find apps?
•App Stores ....
•Facebook Mobile App Installs
Monday, 23 September, 13
Facebook Mobile App Installs
• Launched in October 2012
• Revamped in March 2013
• seamless
• one-click experience
Monday, 23 September, 13
Facebook Mobile App Installs
•The first way to target distribution of a
mobile app at scale:
•interests,
•social graph + social context
•location
•wifi or no wifi
Monday, 23 September, 13
Facebook Mobile App Installs
• Cost Per Install: ~<$1.00 Conversion Rate: ~5%
• Facebook’s Q2 Earnings:
• 15.8% of Global Mobile Ad Revenue
• 41% of FB Ad Rev from Mobile
• “Incredibly Cost Effective” ... “No behavioural differences than organic
users” - Founder of Poshmark
• vs. a one time purchase, App installs = “long term user acquisition
tactic” - CEO of 1-800 Flowers
Monday, 23 September, 13
Mobile App Installs =
Massive Opportunity
• July 2013: Twitter launches mobile app installs
• Who’s Next?
• LinkedIN for professional apps?
• Yelp for local apps?
• Tumblr for creatives?
Monday, 23 September, 13
How will distribution change?
• Distribution partnerships between mobile apps:
• Most prevalent in games
• TapJoy, and AppFuel
• Any mobile social app with scale can provide
mobile app installs targeted to their specific
demographic
Monday, 23 September, 13
Mobile Messaging Apps:
The True Mobile Social Applications
Monday, 23 September, 13
• January 2013 - Boomaling Studio (two angry
bird founders) launch their first game: Nutlings
Tournament
• First Week: 600,000 downloads
• Lackluster Retention and Monetization
Monday, 23 September, 13
250 Million Users (primarily Asia)
Gaming Platform: 150 Million Users
33 Hand Picked Games
Q2 Revenue: $132,000,000 -
1/2 Gaming Platform
45.3% Increase from Q1
350% increase YOY
Monday, 23 September, 13
“This is a way to solve the discovery problem,
because instead of being in the same store, they’ve
created a substore with their own customers, and
can filter the games put out there”
“They have this huge userbase and with relatively
low effort we can get another game launched”
Monday, 23 September, 13
Mobile Messaging Market
•Line - +230 Million Users (Asia, Spain)
•Whatsapp - +300 Million Users
•WeChat (TenCent)- +230 Million
•Viber - +200 Million Users
•Kik - +80 Million Users
•KakaoTalk, MessageME, Relay, FB, Path
Monday, 23 September, 13
Why Are Messaging
Apps So Powerful?
•Mobile First Experience
•High Ratio of DAU’s: Registered Users
•Engaged Audience
•Small Network Effects Required
Monday, 23 September, 13
Messaging Apps =
The New FB OpenGraph
•2010-2012 - Open Graph was #1
mechanism for growth and distribution
•Last 18 months:
•dubious developer relationship
•no transparency / product changes
•not mobile
Monday, 23 September, 13
3rd Party Apps in Messaging Apps
• Primarily Games -- other:
productivity, social
• Line, Kik, KakaoTalk
• Mobile First Targeted
Distribution
• Hand Picked + High Quality
= Consumer Trust
Monday, 23 September, 13
Mobile Messaging Apps are not
replacements of text/phone
They are mobile first Entertainment Platforms
Monday, 23 September, 13
Stickers!
Monday, 23 September, 13
Stickers are a native
mobile language with
branded dialects
Monday, 23 September, 13
What are stickers?
•Emoticons are a mobile texting language
•Stickers are supercharged emoticons
•Each sticker pack is a different dialect
•Each dialect is represented by a brand
Monday, 23 September, 13
Who’s Using Stickers
• First Mover: Line
• $10 mil/per month rev in stickers
• 1 billion stickers sent/per day
• Everyone Followed After:
• FB, Path, MessageMe, Kik, WeChat
Monday, 23 September, 13
Brand Partnerships
•Line: FC Barca,
Real Madrid,
Disney
•Path: NFLPA,
Breaking Bad
•Facebook:
Despicable me
Monday, 23 September, 13
"If you post something on Facebook, it’s only going
to show up on your specific network, whereas here
we can get something in front of +125 million
users.”
-Michael Parisi
SVP Marketing at RadiumOne
Monday, 23 September, 13
The Power of
Branded Stickers
• Efficient advertising mechanism on mobile
• Measurable distribution and engagement at low cost:
• supply of merchandise
• creative decision
• marketing materials
• First native mobile experience between brand and fan
Monday, 23 September, 13
“What we’re looking for is how much interaction is
going on, what are people sharing and other data
like that. This gives us a new chance to observe
and measure our interactions [with consumers],”
Michael Parisi
On finding preferred flavours for
PopChips Sticker Campaign
Monday, 23 September, 13
Line =
Stickers Done Right
•Free
•Must Add the Brand as a Friend
•Brand can now send you exclusive
promotions, videos, and messages
•Personalized Experience
Monday, 23 September, 13
Mobile Retail:
Bridging Online and Offline
Monday, 23 September, 13
Monday, 23 September, 13
Monday, 23 September, 13
Bluetooth LE
•1 year single charge
•no pairing required
•within 50m
•limited to no drain on battery
•iBeacon --> iOS7
Monday, 23 September, 13
End of NFC
End of Bumping Phones
Monday, 23 September, 13
Contextual Retail
Monday, 23 September, 13
Contextual Retail
•iOS7 sophisticated indoor mapping
•Supports “Enter” and “Exit” events
•Customized Coupons
•Recommendations based on history
•Personalized alerts and notifications
Monday, 23 September, 13
Macy’s Example
•Average Area: 16,258 sq metres
•Average iBeacon range: 50 sq metres
•Store only requires 7 iBeacon devices
Monday, 23 September, 13
Estimote
• YCombinator
Summer 2013
• 3 Beacons for $99
• SDK to build into
3rd party
applications
Monday, 23 September, 13
PayPal
Beacon
•Download Revamped PayPal app
•Auto Check-In to Store
•Integrates with POS
•Just Walk Out - And You’ve Paid
Monday, 23 September, 13
Is Retail Doomed?
•Selection
•Speed of Purchase
•Price
Monday, 23 September, 13
The Only Competitve Advantage of Retail:
Experience
Monday, 23 September, 13
Wrap-Up
•Distribution of Mobile Apps is a HUGE
problem - developers are desperate for a
solution
•Messaging Apps are the Mobile Social
Network - massive opportunity
•Contextual Retail is Here - New
Experience
Monday, 23 September, 13
Questions?
Monday, 23 September, 13

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Trends in Mobile Consumer Technology Q3 2013

  • 2. Adam Epstein Lawyer - Founder Consumer Mobile Technology Mobile, Startups, Design Thoughts: Twitter -- @aepstein32 Mobile Culture: Medium: medium/@aepstein32 Monday, 23 September, 13
  • 3. Mobile Sports Scheduling for Recreational Athletes Leveraged: Location, Calendar, Contacts ... Camera, Payments +3000 Users, Featured by Apple App Store in 3 Countries Featured by: Globe and Mail, Financial Post, Inspired UI, The Next Web, BetaKit, New Startups Head of Product and Business Development Monday, 23 September, 13
  • 4. “Mobile is the only thing bigger than its own hype in tech” - Rohit Sharma Partner True Ventures Monday, 23 September, 13
  • 7. 3 Themes •Mobile App Distribution •Mobile Messaging Apps •Mobile Retail: Online/Offline Monday, 23 September, 13
  • 8. Mobile App Distribution • 2 billion iOS apps downloaded each month • 2.5 billion Android apps downloaded each month People Want Apps! Monday, 23 September, 13
  • 9. Mobile App Distribution •1,000,000 iOS Apps •800,000 Android Apps Developers Are Building Lots of Mobile Apps! Monday, 23 September, 13
  • 10. Distribution of Apps is the #1 Problem for Mobile App Developers Right Now For Developers: Gold Rush Mentality For Consumers: Overwhelmed by Choice Monday, 23 September, 13
  • 11. How do people find apps? •App Stores .... •Facebook Mobile App Installs Monday, 23 September, 13
  • 12. Facebook Mobile App Installs • Launched in October 2012 • Revamped in March 2013 • seamless • one-click experience Monday, 23 September, 13
  • 13. Facebook Mobile App Installs •The first way to target distribution of a mobile app at scale: •interests, •social graph + social context •location •wifi or no wifi Monday, 23 September, 13
  • 14. Facebook Mobile App Installs • Cost Per Install: ~<$1.00 Conversion Rate: ~5% • Facebook’s Q2 Earnings: • 15.8% of Global Mobile Ad Revenue • 41% of FB Ad Rev from Mobile • “Incredibly Cost Effective” ... “No behavioural differences than organic users” - Founder of Poshmark • vs. a one time purchase, App installs = “long term user acquisition tactic” - CEO of 1-800 Flowers Monday, 23 September, 13
  • 15. Mobile App Installs = Massive Opportunity • July 2013: Twitter launches mobile app installs • Who’s Next? • LinkedIN for professional apps? • Yelp for local apps? • Tumblr for creatives? Monday, 23 September, 13
  • 16. How will distribution change? • Distribution partnerships between mobile apps: • Most prevalent in games • TapJoy, and AppFuel • Any mobile social app with scale can provide mobile app installs targeted to their specific demographic Monday, 23 September, 13
  • 17. Mobile Messaging Apps: The True Mobile Social Applications Monday, 23 September, 13
  • 18. • January 2013 - Boomaling Studio (two angry bird founders) launch their first game: Nutlings Tournament • First Week: 600,000 downloads • Lackluster Retention and Monetization Monday, 23 September, 13
  • 19. 250 Million Users (primarily Asia) Gaming Platform: 150 Million Users 33 Hand Picked Games Q2 Revenue: $132,000,000 - 1/2 Gaming Platform 45.3% Increase from Q1 350% increase YOY Monday, 23 September, 13
  • 20. “This is a way to solve the discovery problem, because instead of being in the same store, they’ve created a substore with their own customers, and can filter the games put out there” “They have this huge userbase and with relatively low effort we can get another game launched” Monday, 23 September, 13
  • 21. Mobile Messaging Market •Line - +230 Million Users (Asia, Spain) •Whatsapp - +300 Million Users •WeChat (TenCent)- +230 Million •Viber - +200 Million Users •Kik - +80 Million Users •KakaoTalk, MessageME, Relay, FB, Path Monday, 23 September, 13
  • 22. Why Are Messaging Apps So Powerful? •Mobile First Experience •High Ratio of DAU’s: Registered Users •Engaged Audience •Small Network Effects Required Monday, 23 September, 13
  • 23. Messaging Apps = The New FB OpenGraph •2010-2012 - Open Graph was #1 mechanism for growth and distribution •Last 18 months: •dubious developer relationship •no transparency / product changes •not mobile Monday, 23 September, 13
  • 24. 3rd Party Apps in Messaging Apps • Primarily Games -- other: productivity, social • Line, Kik, KakaoTalk • Mobile First Targeted Distribution • Hand Picked + High Quality = Consumer Trust Monday, 23 September, 13
  • 25. Mobile Messaging Apps are not replacements of text/phone They are mobile first Entertainment Platforms Monday, 23 September, 13
  • 27. Stickers are a native mobile language with branded dialects Monday, 23 September, 13
  • 28. What are stickers? •Emoticons are a mobile texting language •Stickers are supercharged emoticons •Each sticker pack is a different dialect •Each dialect is represented by a brand Monday, 23 September, 13
  • 29. Who’s Using Stickers • First Mover: Line • $10 mil/per month rev in stickers • 1 billion stickers sent/per day • Everyone Followed After: • FB, Path, MessageMe, Kik, WeChat Monday, 23 September, 13
  • 30. Brand Partnerships •Line: FC Barca, Real Madrid, Disney •Path: NFLPA, Breaking Bad •Facebook: Despicable me Monday, 23 September, 13
  • 31. "If you post something on Facebook, it’s only going to show up on your specific network, whereas here we can get something in front of +125 million users.” -Michael Parisi SVP Marketing at RadiumOne Monday, 23 September, 13
  • 32. The Power of Branded Stickers • Efficient advertising mechanism on mobile • Measurable distribution and engagement at low cost: • supply of merchandise • creative decision • marketing materials • First native mobile experience between brand and fan Monday, 23 September, 13
  • 33. “What we’re looking for is how much interaction is going on, what are people sharing and other data like that. This gives us a new chance to observe and measure our interactions [with consumers],” Michael Parisi On finding preferred flavours for PopChips Sticker Campaign Monday, 23 September, 13
  • 34. Line = Stickers Done Right •Free •Must Add the Brand as a Friend •Brand can now send you exclusive promotions, videos, and messages •Personalized Experience Monday, 23 September, 13
  • 35. Mobile Retail: Bridging Online and Offline Monday, 23 September, 13
  • 38. Bluetooth LE •1 year single charge •no pairing required •within 50m •limited to no drain on battery •iBeacon --> iOS7 Monday, 23 September, 13
  • 39. End of NFC End of Bumping Phones Monday, 23 September, 13
  • 41. Contextual Retail •iOS7 sophisticated indoor mapping •Supports “Enter” and “Exit” events •Customized Coupons •Recommendations based on history •Personalized alerts and notifications Monday, 23 September, 13
  • 42. Macy’s Example •Average Area: 16,258 sq metres •Average iBeacon range: 50 sq metres •Store only requires 7 iBeacon devices Monday, 23 September, 13
  • 43. Estimote • YCombinator Summer 2013 • 3 Beacons for $99 • SDK to build into 3rd party applications Monday, 23 September, 13
  • 44. PayPal Beacon •Download Revamped PayPal app •Auto Check-In to Store •Integrates with POS •Just Walk Out - And You’ve Paid Monday, 23 September, 13
  • 45. Is Retail Doomed? •Selection •Speed of Purchase •Price Monday, 23 September, 13
  • 46. The Only Competitve Advantage of Retail: Experience Monday, 23 September, 13
  • 47. Wrap-Up •Distribution of Mobile Apps is a HUGE problem - developers are desperate for a solution •Messaging Apps are the Mobile Social Network - massive opportunity •Contextual Retail is Here - New Experience Monday, 23 September, 13