1. mLab
Southern Africa
9 February 2012
Ben Zaaiman

2. mLab’s Purpose
 The mLab
encourages and
supports mobile
innovators &
entrepreneurs to
grow their ideas to
full impact.
 The mLab advocates
for and supports the
use of the mobile
channel in service
delivery.
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3. mLab’s Doors Have Been Open
Since August 2011
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4. 4

5. Mobile Has Become the Dominant
ICT Client
The Economist – 8 Oct 2011
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6. 6

7. (Smartphone Sales in the U.S.)
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8. Nokia & Samsung Ship the Bulk of
Phones in the World
Global Shipments Q4 2011
Nokia
26%
Other
42%
Apple LG Samsung
6% 5% 21%
Research & Markets – Jan 2012
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9. Global Revenue is Split Between
Apple, Samsung, Nokia
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10. Apple Takes 75% of Global Profit
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11. Why?
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12. Multisided Markets Drive
Monetisation Strategy
Users
Data
Miners You Advert-
isers
Deve-
lopers
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13. Facebook Didn’t Make Billions
Charging Users
U.S. Share of Time Spent on Platform Sites
AOL Microsoft Yahoo! Google Facebook
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Q1:08
Q2:08
Q3:06
Q4:06
Q1:07
Q2:07
Q3:07
Q4:07
Q3:08
Q4:08
Q1:09
Q2:09
Q3:09
Q4:09
Q1:10
Q2:10
Q3:10
Q4:10
Q1:11
Q2:11
Q3:11
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14. 14

15. Somebody is Going
to Make BIG Money
in This Industry...
15

16. Products
Enterprise Consumer
Solutions Apps
Contracting Proprietary
Mobile Consumer
Marketing Services
Services
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17. The Start-Up Pyramid
Scale
Optimize Monetisation
Strategy
Economics
Promise Minimum Viable Product
for “Must-Haves”
Product / Market Fit 40% of Big Market
Source: Marc Andreessen
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18. mLab Mobile App Monetisation
Framework
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19. Number of Apps in iTunes Store
(April 2011 - 30 Months after Start)
350 000
300 000
250 000
200 000
Free
150 000 Paid
100 000
50 000
0
iPhone iPad
Ben Lorica: O’Reilly Research, 2011
19

20. Games Dominate the Industry
% Games in All-Time Rankings of iTunes Store
60%
50%
40%
30% iPhone
iPad
20%
10%
0%
Top 100 Top 1 000 Top 10 000
Ben Lorica: O’Reilly Research, 2011
20

21. Sturgeon’s Law Also Applies to the
iTunes Store
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22. 22

23. But You Should Find Out Pretty
Quickly if You Have a Hit
Median Days From Launch to Hit Top 200 Lists
iPhone iPad
14
9
7
5
4 4
Top Paid Top Grossing Top Free
Ben Lorica: O’Reilly Research, 2011
23

24. And Not Many are Long-Term Hits
Hits That Spend 30+ Days on Top 200 Lists
iPhone iPad
24% 24% 24%
21%
16%
14%
Top Paid Top Grossing Top Free
Ben Lorica: O’Reilly Research, 2011
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25. Price Range Explanation
Number of Apps
Median
25% Cheapest Middle 50% 25% Most Expensive
2 3 12 price
25

26. Price Ranges for successful iPhone
Apps in Each Category
(Range Bars Exclude
25% Cheapest & 25% Most Expensive Apps)
10
9
8
7
6
5
4
3
2
1
0
Ben Lorica: O’Reilly Research, 2011
26

27. Price Ranges for successful iPad
Apps in Each Category
(Range Bars Exclude
25% Cheapest & 25% Most Expensive Apps)
10
9
8
7
6
5
4
3
2
1
0
Ben Lorica: O’Reilly Research, 2011
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28. Consolidate Free and Paid Apps
Through In-App Purchases
 Virtual goods / freemium /
subscriptions
 Freemium model, e.g. allowing the
user to unlock premium features
from within the app
 Key benefits of this:
◦ Demo to pay engagement model;
◦ Develop a single app;
◦ Market a single app (climb up charts with
single app).
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29. Free Apps Are Well-Represented
Among Top-Grossing Lists
% of Free Apps in Top-Grossing Category
iPhone iPad
36%
25%
21%
15% 14% 16%
10%
8%
Top 200 News Games Social
Grossing Networking
Ben Lorica: O’Reilly Research, 2011
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30. 30

31. 31

32. Ben Zaaiman
Join Us! www.mlab.co.za
ben@mlab.co.za
+27 83 448 4336
BZaaiman
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