1. Mobile Monetization
October 2011
Confidential –CONFIDENTIAL
© 2011 Not for Distribution 1

2. © 2011 CONFIDENTIAL 2

3. Strong Monetization
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5. Mobile is 44% of DAU. What Percent of Revenue?
Android has 60% more DAU than iPhone. Signing Up Users 2:1 vs. iPhone
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6. The myYearbook User is Addicted to Mobile
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7. Majority of Activity Will Soon Be Mobile
• Mobile now accounts for over 47% of all logins, up from virtually 0 in the first
half of 2010. Over 60K installs per day across our network of apps.
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8. Mobile Users Are Even More Engaged
• Android and iPhone users visit for shorter periods of time, but much more
often, resulting in more daily time spent per user than on the web – over 20
years’ worth of minutes on Android alone, every day!
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9. Why Are They So Engaged?
• Cross-platform games facilitate social discovery anytime, anywhere
• Activity of the always-on mobile user helps drive engagement and
monetization on the web
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10. Mobile as a New User Acquisition Stream
• 1 out of every 4 myYearbook registrations comes via mobile apps
– And mobile signups are significantly less likely to churn!
• In the end, about 1 out of every 3 newly engaged myYearbook
users found us via the App Store or Android Market
• We expect this proportion to continue growing as smartphone
and tablet penetration increases in our target demographic
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11. The Catch
What’s a mobile user worth?
About 15% of a web user, in terms of monthly ARPU
WHY?
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12. Mobile Display Ad Market Isn’t There Yet
Advertisers Are Spending Like It’s 1997
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13. Plenty of Smart People Trying to Crack the Nut
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14. So How Are Mobile Game Publishers Making Money?
• In-App Purchases, Paid Apps, Advertising
Up to $10.9 million last $9.4 million last quarter
quarter
$57 million last quarter
$5.6 million last quarter $16 million last quarter
Source: http://www.insidemobileapps.com/2011/08/08/quarterly-earnings-2q-1q-mobile-gaming/
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15. Source: http://techcrunch.com/2011/10/18/mary-meekers-2011-presentation-on-internet-trends-slides
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16. In-App Purchases Increasingly Outperforming Paid Apps
• More than 65% of iOS app revenue attributed to Freemium games
Source: http://blog.flurry.com/bid/65656/Free-to-play-Revenue-Overtakes-Premium-Revenue-in-the-App-Store
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17. Over Half of Top Grossing iOS Games Are Freemium
Graphic showing games with in-app purchases
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18. Taking Synchronous Multiplayer to Mobile
Synchronous Gaming Engine Acquired Games
3M+ installs
• Acquisition of Flock
Multiplayer Engine paves the
way for suite of synchronous 1.5M+ installs
multiplayer games on mobile
• Meet people in synchronous
games from anywhere! 600K+ installs
• Cross platform
500K+ installs
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19. The Formula: One-Tap Purchase
• Virtually every iPhone user has a credit card on file with iTunes, enabling a
frictionless one-tap purchase flow
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20. Android Can’t Compete (Yet)
• Comparatively onerous payment process on Android is clearly impacting
monetization rates vs. iPhone apps
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21. Both Platforms Must Improve Internationally
• Both iOS and Android are overly reliant on a faulty expectation that everyone
has a credit card – need to support popular local payment methods, especially
in countries with much smaller advertising markets
Konbini
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22. Mobile Offer Walls Help Drive Monetization
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23. But the Pay-Per-Install Model is Unavailable on iOS
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24. Incentivized Mobile Video Ads Poised for Growth
• Premium placements command
premium CPMs
• Avoids screen size constraints
• Guaranteed eyeballs
• Plugs into social app ecosystem:
• Facebook
• Twitter
• SMS
• Available on all platforms
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25. myYearbook’s Social Theater Goes Mobile in 2012
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26. Source: myYearbook Internal
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27. Still a Huge Opportunity for “Traditional” Display Ads
• Only 3% of consumers are spending their money on in-app purchases
• Advertising can monetize the other 97%-- at a lower rate, but one that will
improve with time
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28. Mobile Potential
Source: http://techcrunch.com/2011/10/18/mary-meekers-2011-presentation-on-internet-trends-slides
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29. Translation: Be Mobile or Be Irrelevant
Source: Survey of 3,000 myYearbook users
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30. Passive Watching of Television is Over
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31. But Wait – Everyone Knows Mobile Ads Don’t Convert!
What’s the ROI of your mom?
Hard to measure doesn’t mean nonexistent.
Source: Gary Vaynerchuk
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32. Advertisers Should Be Excited About Mobile
• More Reach
o Users are always on, always plugged in – now advertisers can reach them
more often than they ever could before
• More Context
o Mobile is a higher-quality touch point
o Target based on interests, social graph, location
o Point-of-sale capabilities developing
• More Expectations
o Increasingly, users expect their web experience to transition seamlessly
onto their mobile phones
o No patience for apps and brands that aren’t available everywhere
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33. The Next 12 Months
• Smartphone penetration to increase
• We expect mobile monetization to improve on all fronts
• New platforms will emerge (e.g. Amazon Kindle Fire), forcing
publishers to make tough choices about where to invest
resources.
• New user acquisition? Potential for monetization?
• Apple and Google continue to improve their offerings around
payment, especially internationally
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34. Smartphone Penetration to Increase
Source: myYearbook Internal
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35. Android In-App Billing Will Get Easier
• Expect Google to encourage users to create a billing profile on activation of a
new phone or download of the first app
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36. New Players Will Emerge That Solve Seamless Payments
on Mobile Devices
• Amazon is already working on an In-App billing SDK for mobile
• 1-Click shows they understand frictionless payments
• Ability to strike large deals with handset makers and market their own tablets
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37. Handset Makers Will Partner with Billing Providers
• Expect handset makers, carriers, and
billing providers to work together to
improve the payment process
– Reduced friction
– More options for consumers
– Friendlier terms for publishers
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38. Further Innovation Around Ad Units
In-Game Branding
Premium Expandable Ad Units
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39. It Will All Come Together
• Smart phone proliferation continues
• Mobile advertising growth explodes
• Mobile payments become frictionless on all leading platforms
• Location promise is realized
• Marketers key in on social and location context to drive people to
point of sale
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40. Any Questions?
@geoffcook
gcook@myyearbook.com
© 2011 CONFIDENTIAL
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