1. DECEMBER 2012
The State of the App Economy
Simon Khalaf, President & CEO
@FlurryMobile
@SimonKhalaf
@AppNationConf
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012

2. ONE TRILLION EVENTS PER MONTH
WW iOS & Android App Events Measured by Flurry, Billions
1,100
1,000
900
800
700
600
500
400
300
200
100
-
May 08ul 08 ep 08 08 09 09 09ul 09 ep 09 09 10 10 10ul 10 ep 10 10 11 ar 11 11ul 11 ep 11 11 12 12 12ul 12 ep 12 12
J S Nov Jan Mar May J S Nov Jan Mar May J S Nov Jan M May J S Nov Jan Mar May J S Nov
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012 Source: Flurry Analytics, May 2008 – November 2012

3. APPS PASS WEB, CHALLENGE TV
U.S. Web vs. Mobile App vs. TV Consumption, Minutes per Day
180
160
140 162 168 168
120
100
127
80
94
60
70 66 72 70
40
20
-
Dec 2010 Dec 2011 Dec 2012
Web Browsing Mobile Applications Television
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012 Sources: comScore, Alexa, U.S. Bureau of Labor Statistics, Flurry Analytics

4. BEYOND GAMING
WW iOS & Android Smart Device Time Spent per App Category
Lifestyle 1%
Health & Fitness 1%
Productivity 2% Other
News 2% 5%
Utilities
10%
Games
43%
Entertainment
10%
Social Networking
26%
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012 Source: Flurry Analytics, November 2012

5. MOBILE REVENUE GROWTH
20
Billions
18
16
14
12
10
8
6
4
2
0
2008 2009 2010 2011 2012
Virtual Goods Advertising
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012 Source: eMarketer, Mary Meeker (KPCB)

6. INVESTOR SKEPTICISM
1. It’s hard to make money in mobile and apps
2. It’s expensive to scale an app business
3. A minority is capturing the majority of revenue
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012

7. INVESTOR SKEPTICISM
1. It’s hard to make money in mobile and apps
2. It’s expensive to scale an app business
3. A minority is capturing the majority of revenue
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012

8. MOBILE REVENUE GROWTH
US Display Advertising and Virtual Goods Revenue
Billions
14
12
10
8
6
4
2
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Web (Browsing) Mobile Apps
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012 Source: eMarketer, Flurry, Comscore

9. INVESTOR SKEPTICISM
1. It’s hard to make money in mobile and apps
2. It’s expensive to scale an app business
3. A minority is capturing the majority of revenue
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012

10. APP TRAFFIC ACQUISITION
Cost per Visit, Apps versus The Web
63
22
Web Apps
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012 Source: eMarketer, Flurry

11. INVESTOR SKEPTICISM
1. It’s hard to make money in mobile and apps
2. It’s expensive to scale an app business
3. A minority is capturing the majority of revenue
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012

12. REVENUE DISTRIBUTION
Number of Companies Controlling 66% of Revenue (Ads and Apps)
248
5
Web Apps
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012 Source: eMarketer, Flurry

13. Thank you!
@FlurryMobile
@SimonKhalaf
@AppNationConf
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012