APPORTUNITY Are App Developers Encashing Globally?

ASHAY PADWAL, CTO & CO- FOUNDER, VSERV.MOBI

We Love theMOBILE ECOSYSTEM!

Mobile Internet10BN+

Mainframe1MN+

Microcomputer10MN+

PC100MN+

Desktop Internet

1BN+

Mobile Internet10X Desktop

Internet

Every Physical and Digital interaction will be “APPified”

OPPORTUNITY beyond

FACTS5

QUICK REALITY CHECK

1 75% OF MOBILE SUBSCRIBERS ARE IN EMERGING MARKETS

75%Emerging Markets

REALITY CHECK # 1

Are you targeting emerging markets with your mobile offering?

Will you leave out

75% of the global market?

REALITY CHECK #1

FEATURE PHONE DOMINATE GLOBALLYeven in Developed Markets2

37%

63%

North America32%

68%

W. Europe

2%

98%

South America10%

90%

E. Europe & Asia Pacific

Smart Phones

Feature Phones

4%

96%

Africa

… WILL CONTINUE DOMINATING IN EMERGING MARKETS

EGYPT92%

VIETNAM90%

NIGERIA90%

INDONESIA90%

SOUTH AFRICA86%

COLOMBIA85%

BRAZIL82%

INDIA82%

PREPAID SUBSCRIBER BASE

NO “CONTRACT”

WANT BEST FEATURES AT LOWEST PRICESNO HANDSET SUBSIDY

USERS PAY FULL PRICE

CAN’T AFFORD$ 400 SMARTPHONES

All this in a phone costing less than $30

SURFS THE INTERNET

MUSIC ON LOUDSPEAKERS

PLAYS VIDEOS

PLAY GAMES

RUNAPPS

SOCIAL MEDIA ACCESS

All Phones

are SMART!

… WHILE BECOMING “SMARTER”!

REALITY CHECK # 2REALITY CHECK #2Are you building Apps for Feature phones?

Or will you leave out 70-90% of the global market?

MOBILE INTERNET IS THE INTERNET IN EMERGING MARKETS

DEVELOPED MARKETS EMERGING MARKETSUSA: 25%UK: 22%RUSSIA: 19%

EGYPT: 70%INDIA: 59%NIGERIA: 50%

3

… AND MOST HAVE NEVER EXPERIENCED THE PC INTERNET!

Mobile Only Internet Generation Device Ownership

Feature Phones

Smart Phones

FEATURE PHONE USERS LEAD MOBILE ONLY INTERNET USAGE

91% NIGERIA 77% KENYA 94% INDONESIA

75% CHINA 76% BRAZIL

v/s

REALITY CHECK #3

Earlier,Just Another Screen

Now, The Primary Screen

You have an opportunity to rethink paradigms

Are you leveraging it to build

100% mobile experiences?

$0.99 PAID APP MODEL WILL NOT WORK IN EMERGING MARKETS4

CREDIT CARD PENETRATION

~ 1% MOBILE PHONE PENETRATION

72.7%

MUCH LOWER PER CAPITA GDP

REALITY CHECK #4Do you have a differentiated monetization strategy?

Different for Developed & Emerging markets?

MOBILE

7th MASS MEDIA

1500s: PRINTING 1900s: RECORDING

1910s: CINEMA 1920s: RADIO

1950s: TV 1990s: INTERNET

MOBILE IS THE 7TH MASS MEDIA5

PRINT

RADIO

TV

INTERNET

Mobile

Video

Music

Text/Image

Broadcast

+Interactive

MOST POWERFUL MASS MEDIA EVER!

MOBILE ALREADY AHEAD IN INDIA

India Internet Traffic: Desktop v/s Mobile

ADVERTISING SPENDS WILL FOLLOW USERS

REALITY CHECK #5Are you viewing mobile as a media to reach the ‘masses’ or only the ‘technology elite’?

v/s

To Leverage the Global APPortunitySMART WAYS

5

Focus efforts on 2 platforms that will give widest reach

Feature phones Smart phones

NoBrand

J2ME

#1

Localization is ideal, but even just “English” can get you quite far#2

Significant English speaking audience

Don’t be scared of trying Hybrid Monetization Models

PAID:In-App

payment via Telcom billing

FREE:Ads

based

Hybrid Monetization

Models

#3

Maximize distribution:look beyond platform App Store#4

Focus on your strengths ;find the right partners for the rest

AD BASED MONETIZATIONAd Networks

DISTRIBUTIONIndependent app stores / sites

BILLINGTelco billing payment aggregators

PAID PROMOTIONMobile focused Ad agency

#5

Focus efforts on platforms that will give widest reach

Localization is ideal, but even just “English” can get you quite far

Don’t be scared of trying Hybrid Monetization Models

Maximize distributionlook beyond platform App Store

Focus on your strengths - find the right partners for the rest

SUMMARY

1

2345

Ashay Padwal+91 9821335122

ashay@vserv.mobi

Call Now!