1. MOBILE INDUSTRY
OVERVIEW & TRENDS
KRISTINE VAN DILLEN
POLLY LIEBERMAN
VERONIKA SONSEV
Prepared for Golden Seeds – April 12, 2012

2. Agenda
 Mobile Penetration
 Mobile Usage & Consumption
 Monetization of Mobile
 Distribution & Discovery
 Convergence
 Future of Mobile

3. Mobile Penetration

4. Mobile phones surpass shoes…
4

5. …and will dwarf PC penetration
Global Internet Device Sales
5

6. We are just starting to upgrade globally
Global Smartphone Penetration Q3 ‘11
Source: Nielsen Mobile Insights
Russia
36%
UK
38%
Germany
27%
Kuwait
Italy
US 56%
50%
46%
Egypt
37%
Indonesia
18%

7. Youth adopted first, but others
segments are catching up
Smartphone Penetration by Age and Income (US)

8. Affordability is driving US growth

9. iOS and Android are dominating

10. Tablets have become 4th screen

11. Mobile Usage & Consumption

12. A mobile phone is the Swiss Army
Knife 2.0
Camera
Mobile Web Voice
Applications GPS
Location
Messaging Social
Content

13. Regional considerations
• Network Speed
• Device Types
• Network/ Data Costs
• Local Regulations
Different capabilities result in different uses

14. Regional usage
SMS & Voice Business Transactions Content Consumption,
mBanking Mobile Web Social Media
Gaming mCommerce

15. Content consumption range
Top 20 Mobile Content Categories Reach Among Active Users
(Browsing, Apps, SMS), April 2010, US
online retail 12%
auction sites 12%
electronic payments 12%
gaming information 13%
television guides 13%
classifieds 15%
general reference 17%
business directories 18%
traffic reports 18%
restaurant information 20%
tech news 21%
bank accounts 21%
stock quotes or… 22%
movie information 24%
entertainment news 29%
sports information 31%
maps 34%
news 36%
search 44%
weather 49%
Product:comScore MobiLens
Data: Three month average ending April 2010

16. Apps are exceeding mobile
browser usage

17. Why are people using apps?
Apps provide direct connections to information
News, weather, sports or stocks
updates 74%
Learn about something you're
interested in 64%
Get info about a destination
you're visiting 53%
Help shop or make purchases
46%
Get more info about an event
you're attending 35%
Based on August 2011 Pew Internet Tracking Survey

18. Popular apps

19. Monetization of Mobile

20. Mobile business models
 Consumer Paid
 Advertising
 mCommerce

21. Consumer paid
 One-time payments
 Subscriptions
What are people buying?
 Ringtones
 Apps
 Premium Content
 Virtual Goods
Billing methods:
 iTunes
 Credit Card and Paypal
 Carrier Billing

22. Advertising
 SMS
 Display
 Performance
 Video
 Search
Pricing Models:
 CPM
 CPC
 CPI
 Sponsorships
 Paid Search/Key words

23. Mobile advertising examples
SMS tags Sponsored SMS Banner Sponsorship

24. Mobile advertising examples
Rich Media Full Screen Mobile Video Search
Expandable Interstitials

25. mCommerce
 Mobile Shopping
 Tickets
 Apparel
 Much more…
 Mobile Bookings
 Hotels
 Auto
 Flights

26. Distribution & Discovery

27. Mobile distribution and discovery
 Mobile Advertising
 App Stores
 Carriers “Ondeck” Placements
 Partnerships
 Brands leveraging existing assets –
onAir, online, magazines, inStore promos etc.

28. How are people discovering apps?
Searching the Application… 63%
Friends/Family 61%
53%
Third Party Website 21%
17%
Apps Promoting Other Apps 21%
15%
Newspaper/Magazine/Radio 17%
9%
Sync Software (iTunes, etc) 17%
3% iOS App Store
Television Advertisement 13% Android Market Store
6%
In-App Advertisement 13%
9%
8%
Device Homepage 10%
Carrier Homepage 5%
6%
Email Tips from my Carrier 5%
Source: Nielsen- The Mobile
Other 3% Media Report

29. Convergence

30. Shift to a hyper-connected world
 Not just what‟s put into a
mobile device
 Consider the mobile
devices put into other
things

31. Mobile phones are our „everything hub‟
 Our mobile phone connects us to people
 And to products

32. Mobile phones are our „everything hub‟
 And connects us to physical things

33. Mobile phones are our „everything hub‟
 And connects us to retail

34. Mobile phones are our „everything hub‟
 And devices connected to the mobile phone
can enable even more uses

35. Future of Mobile

36. Examples of mobile innovation
 Retail
 Mobile Payments
 mHealth
 Mobile Security
 Personalization

37. Mobile is transforming retail
60%
Phones are key to purchase decisions
40%
38%
25% 24%
20%
34%
22% 22%
0%
Call a friend for advice Look up prices online of Look up product
about a purchase a product you found in reviews online of a
-20%
a store product you found in a
store
% of cell owners % of cell owners
Source: Pew Internet Project 2012

38. Mobile is transforming retail
 Problem: BestBuy
has become the
showroom for
Amazon
 Innovation needs:
 Loyalty programs
 Real-life CRMs
 Social commerce

39. Your phone will be your wallet
 Problem: speed/
convenience, acces
s to
credit, managing
cash
 Innovation needs:
 Peer 2 peer
payments
 Retail transactions
 Credit/value storage

40. Security is becoming a problem
 Problem: Mobile
becoming target of
malware and security
threats
 Innovation needs:
 Personal firewalls
 Remote device
management
 Spam and malware filters
 Privacy controls

41. Mobile health has promise
 Problem: managing
care/compliance, acc
ess to records, health
information
 Innovation needs:
 Diagnostic tools
 Health data
monitoring
 Health and medical
information

42. Mobile is your life personalized
 Problem: Nobody
knows your name
anymore
 Innovation needs:
 Knowing who is
nearby
 Trusted references
 Real life targeting
and personalization

43. Mobile is…
 Your life on the go
 Real-time connection to people and info
 Bridge between the real and digital world
Mobile is connectivity,
anytime, anywhere, in your pocket

44. THANK YOU!
FOR MORE INFORMATION, PLEASE EMAIL
VERONIKA@INSPARQINC.COM

45. Appendix

46. Areas of Mobile Growth
Growth Competitors Revenue Who Pays
Areas (non-traditional) Potential
Per Month
Identity Risk Facebook, Google, Twitter, $1-2 Banks,
Management Microsoft, Financial Financial
Institutions Institutions
Commerce Amazon, eBay, Google, $1-5 Customer,
Groupon Commerce
Partners
Payments PayPal, Google, Facebook, $1-2 Customer,
Visa, Mastercard, Startups Commerce
Partners
Presence, Google, Facebook ~$1 Partners
Address
Books

47. Areas of Mobile Growth
Growth Areas Competitors Revenue Who Pays
(non-traditional) Potential
Per Month
User Profile Google, Facebook, Twitter, $1-4 Partners
Microsoft
Remittance Western Union, Visa, Banks ~$1 Customer
Commerce
Partners
Advertising/ Google, Facebook, Millennial $1-2 Advertisers
Coupons Media, Microsoft, Apple
Cloud Services Amazon, Cisco, Apple, $1-5 Customer
Microsoft, Vmware, Enterprise,
Salesforce Partners
Enhanced Skype, Facebook, Google, $1-3 Customer
Communication Microsoft, Cisco

48. Areas of Mobile Growth
Growth Competitors Revenue Who Pays
Areas (non-traditional) Potential
Per Month
Enterprise/ SIs, Vertical players $5-10 Enterprise
Vertical
Segments
In-Home Cable companies, HP, $1-3 Customer
Microsoft, Sony, Samsung,
Apple
Security Microsoft, Symantec $1-5 Customer,
Enterprise
Health Healthcare providers $20-30 Customer,
Insurance,
Hospitals

49. Areas of Mobile Growth
Growth Competitors Revenue Who Pays
Areas (non-traditional) Potential
Per Month
Wellness Startups, OEMs <$1 Customer,
Insurance,
Hospitals
Distribution Apple, Google, Amazon, $1-4 Partners
Microsoft, Facebook
M2M Hotspot providers, Google, $1-2 Consumer
Cable providers Enterprise
QoS Services N/A $1-4 Premium
Subscribers,
Enterprise
Analytics Goggle Microsoft, Facebook, $5-15 Enterprise
Amazon Partners