A presentation by Stijn Schuermans at WAN-IFRA 2012 (October 30 2012 @ Frankfurt). Mobile ecosystems and the new role of media publishers in the app economy

1. Media and the new app economy
30 October 2012
how telecoms business is transforming in the software era Updated 4 May 2012
Copyright VisionMobile 2012
Copyright VisionMobile 2011

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

3. Trusted by industry brands
Clients an established analyst company
from
selected clients 2009-2012
selected
VisionMobile clients
2008-2012
Page 4
Copyright VisionMobile 2012

4. We’ve taken the plunge
Mobile ecosystems herald a profound change in the basis of competition
Copyright VisionMobile 2012

5. Smartphones reached 40% market share in Q2 2012
1 billion smartphones in the market already
Smartphone shipments as a % of total handset shipments | Source: VisionMobile 100M Club infographic
Copyright VisionMobile 2012

6. iOS, Android became dominant smartphone OS
From handset/operator centric to platform centric
Smartphone market share by platform (Q2 2012) | Source: VisionMobile estimates Copyright VisionMobile 2012

7. There is an app for every need and taste
For every area of consumer spend
Application categories as percentage of the number of iOS apps
Source: 148Apps.biz, iTunes App Store (iOS), updated 2012-10-25
Copyright VisionMobile 2012

8. App gold rush shows no sign of slow-down
with ever-growing number of apps in leading platforms
? ?
Q2 2012
Number of apps per platform | Source: VisionMobile 100M Club infographic Copyright VisionMobile 2012

9. Profound turnaround in basis of competition
100%# Commodity
modular
90%#
market
80%#
LG# 70%#
Sony#Ericsson#
RIM#
60%#
Motorola#
50%# Integrated
HTC# from cloud
Nokia# 40%# to silicon
Apple#
30%#
Samsung#
20%# Integrated
across
10%# handset
supply chain
0%#
2007# 2008# 2009# 2010# 2011# 2012#
Share of profits across top-8 handset vendors | Source: Asymco, VisionMobile estimates Copyright VisionMobile 2012

10. Digital ecosystems expand in two dimensions
10 Copyright VisionMobile 2012

11. Media publishers as app developers
A profile of street-smart app makers
Copyright VisionMobile 2012

12. The brand journey through mobile
Where are media publishers?
12 Copyright VisionMobile 2012

13. Media in a multiscreen world
smartphone tablet smart TV
82% 42% <10%
Targeting Targeting Targeting
2 in 3 1 in 3
Planning Planning
Media publishers are behind the general developer population in targeting tablets,
but intend to catch up.
Still early game for OTT media on game consoles, set-top boxes or connected TVs.
13 Copyright VisionMobile 2012

14. Multiple platforms, popular first
Premium
Lowest common denominator
experiences
Media publishers are slightly more likely to use iOS (and Blackberry),
and catching up on Android and Windows Phone.
14 Platforms used by media publishers | Source: VisionMobile Developer Economics 2011 – data.visionmobile.com Copyright VisionMobile 2012

15. Reach first, money second – even more so in media
General app developer Digital media
publishers
81%
54%
57% indicates reach
as primary goal
Only 17% is primarily
after making money
15 Reasons for selecting a platform | Source: VisionMobile Developer Economics 2011 Copyright VisionMobile 2012

16. Low revenues per app compared to other segments
15% to 25% less
for major platforms
Extremely low
revenue on BlackBerry
16 Copyright VisionMobile 2012

17. Mainly indirect monetization
Advertising
Indirectly through
brand awareness
Subscriptions
17 Percentage of developers using a monetization method | Source: VisionMobile Developer Economics 2011 Copyright VisionMobile 2012

18. Engagement and revenue model are challenges
In line with most app developers
Engagement
Business model
Targeting
n = 504
18 Copyright VisionMobile 2012

19. The brand journey through mobile
How to move from street-smart to connoisseur?
19 Copyright VisionMobile 2012

20. Conclusion
Smartphones have triggered a mobile revolution
Fundamental and irreversible shift to app ecosystems, winner-takes-all market
Affecting all parts of the ecosystem, including media publishers
Dominating platforms are moving to 2D ecosystems, taking control over media
distribution
Media publishers are street-smart app makers
Multi-screen, multi-platform
Indirect monetization, intended to drive the core media business
Next step: figure out the business model for mobile media
Move from street-smart to connoisseur
Mobile becomes the core business
Copyright VisionMobile 2012

21. get in touch
Knowledge. Passion. Innovation.
stijn@visionmobile.com
@stijnschuermans
Stijn Schuermans | Product Manager | +44 2033 844 169
Updated: 12 November 2010
Copyright VisionMobile 2012
Copyright VisionMobile 2011