Presented by Sri Saraswati (BPPT) ID IGF 2016 Sesi Ekonomi 3 - Ada Apa di Balik Layanan Gratis? Jakarta, 15 November 2016

1. FREE MOBILE APPLICATIONS & CONSUMER DATAFREE MOBILE APPLICATIONS & CONSUMER DATA
2016 NATIONAL ID2016 NATIONAL ID--IGF DIALOGUEIGF DIALOGUE2016 NATIONAL ID2016 NATIONAL ID--IGF DIALOGUEIGF DIALOGUE
JakartaJakarta , November 2016, November 2016
PUSAT TEKNOLOGI INFORMASI DANPUSAT TEKNOLOGI INFORMASI DAN KOMUNIKASI, BPPTKOMUNIKASI, BPPT
SriSri SaraswatiSaraswati W.W.W.W.

2. Mobile Applications
• Indonesian Mobile & Internet penetrations
• Numbers/percentages of free Mobile Apps increasing
over time
– On IOS platform >90% mobile apps were free
– Other platform, like Android … >>– Other platform, like Android … >>
• “Free content” or “No advertisement” ?
– Like TV, Radio or online brouwsing, app users prefered free
contents even if they had to endure advertisement
• Mobile apps revenue generation
– Indirect revenue

3. How Mobile Apps Make Money?
From application developers & marketers point of view :
• In-app Advertisement
– Screen pop-ups, Banners, Video ads
• Sponsorship
– Sponsored mobile app. E.g. sponsored sport apps …
• Subscriptions
– Free download, free initial content, needs (monthly) subscriptions for more contents. E,.g.
music/video streaming
• Premium/upgraded Functionality• Premium/upgraded Functionality
– Free download of limited functionality , usually for ‘tester’. Upgrade for more func. (or for
removing ads)
• Payed per minute of use
– Amazone Underground Listed App
• Selling merchandise alongside apps.
• Promoting products, or even other apps
• In-app Purchases (IAP)
– Items to buy inside apps. E.g.. extra weapons, tools or boosters on games
• Email Marketing
– Collecting email address in app, for marketing offers later via email
• …

4. How about Free Messenger Apps?
• Line, Kakao Talk
– Free-to-play video games with in-game
purchases
– Sell “stickers” to send as messages
– Fees for official accounts for businesses and
celebrities to send promotional messages
• We Chat• We Chat
– All of the above
– .. plus e-payment feature
• Whatsapp
– None of the above no in app advertisement
– but … partnering with Facebook, with
changing T&C for users to share their contact
numbers with Facebook and FB family of
companies, for better/refined targeted ad.
– Privacy policy.

5. The Value of Data
• Statistic Bureau
– National Statistic Bureau for collecting statistical data
mostly for national development planning etc.
– Market & social research institutions.
– Data brokers : company that collects and sells
data/information through public or private sourcesdata/information through public or private sources
• Values proposition : Identity verification, Fraud prevention,
Marketing
• Data processing & analysis
– Statistical tools, datamining …
• Index, Indicators …
• Classification, Clustering …

6. Pros & Cons of Data Usage in Marketing
• Pros :
– Location base advertisement.
– More personalised advertisement is good!? No ads we
don’t like/need.
• Cons :
– Credit application, Job application turned down because– Credit application, Job application turned down because
some ‘data’ indicated negatives
– “InfoUSA sold a list of 19,000 verified elderly sweepstakes
players to a group of experienced scam artists, who stole
over $100 million by calling people on the list and
pretending to be government or insurance workers who
needed bank account information to ensure their pill
prescriptions.”

7. Data Sources
• Consumer Data Collections :
– Demographic, finance, spending, interests …
• Data Brokerages sources :
– Offline (some have been made online) : Open /public– Offline (some have been made online) : Open /public
documents (gov. documents)
– Online : Personal web brouwsing data
– Retail store owners.

8. Data Processing
• Consumer score unregulated/no regulation for
accuracy, transparancy and fairness
– Likelihood of s.o. to get sick, pay tuition or pay debtsLikelihood of s.o. to get sick, pay tuition or pay debts
– To make a “blacklist”
– To determine “amount of charging” (insurance
company)
– Use proxy or surrogates for protected data.

9. What next
• Technology Development and Innovation
– Broad band (bigger storage, more processing speed..), Internet
of Things (camera data, thermostat, health monitor bracelet..)
– Advanced business model..
Information system and data protection regulations.• Information system and data protection regulations.
– Regulations :
• Information system security,
• Protection of data usage, right and means to correct data or rectify the
‘information’
– Instrument of regulation
– Consumer awareness and education.

10. THANK YOU