THE APP GENERATION

Peter FaragoVP Marketing @FlurryMobileblog.flurry.com

App Measurement and Advertising Platform

70,000

190,000

App Developers:

Live Applications:

Flurry Analytics Better apps on iOS, Android, BB, WP, HTML5

540MDevices per month:

36BSessions per month:

AppCircle Ad NetworkAcquisition & Monetization: iOS, Android

6,200App Developers:

250MDevices per month:

400BEvents per month:

3MDaily Completed Views

Penetration of WW Population, 5 Years After Launch

PCs (1988) Facebook (2009) Internet (2000) iOS & Android (2012)

1%

3%4%

8%

8X 3X 2X

Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry

iOS & Android Addressable Market

GLOBAL POPULATION

7 BILLIONSources: United States Census Bureau, based on Accenture analysis

iOS & Android Addressable Market

MOBILE PHONE SUBSCRIPTIONS

6 BILLIONSources: US Census Bureau; International Telecommunication Union; based on Accenture analysis

GLOBAL POPULATION 7 BILLION

iOS & Android Addressable Market

INTERNET USERS

2.3 BILLION

GLOBAL POPULATION 7 BILLION

MOBILE PHONE SUBSCRIPTIONS 6 BILLION

Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis

iOS & Android Addressable Market

GLOBAL POPULATION 7 BILLION

MOBILE PHONE SUBSCRIPTIONS 6 BILLION

iOS & ANDROID

540 MILLION

INTERNET USERS 2.3 BILLION

Sources: US Census Bureau; International Telecommunication Union, Flurry; based on Accenture analysis

iOS & Android Addressable Market

GLOBAL POPULATION 7 BILLION

MOBILE PHONE SUBSCRIPTIONS 6 BILLION

INTERNET USERS 2.3 BILLION

Sources: US Census Bureau; CIA World Factbook; Flurry; based on Accenture analysis

iOS & ANDROID

550 MILLION

9% VS

MOBILE

24% VS

INTERNET

“Software is Eating the World” – Andreessen in WSJ

Apps Disrupting the Web

June 2010 Dec 2010 June 2011 Dec 2011

Sources: comScore, Alexa, Flurry Analytics; Smartphones & Tablets, U.S.

MINUTES

70MINUTES

66 MINUTES

74 MINUTES

81

MINUTES

64

MINUTES

43

WEB BROWSING MOBILE APPS

MINUTES

72MINUTES

94

U.S. MOBILE APPS VERSUS WEB CONSUMPTION

Sources: TV & Internet dayparts from analysis by Michael Zimbalist (2/10); Nielsen National People Meter; comScore Media Metrix Mobile application daypart from analysis by Flurry (8/11); Flurry Analytics, n = 15.2M DAUs

Daypart Comparison, People 15+ Using Medium, U.S.

5am 6am 7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm 12am 1am 2am 3am 4am 0%

10%

20%

30%

40%

50%

60%

70%

% o

f Aud

ienc

e Sh

are

Hour of Day

Closing in on Television

TELEVISION INTERNET iOS & ANDROID APPS

03:1

4:59

PM

03:1

9:29

PM

03:2

3:59

PM

03:2

8:29

PM

03:3

2:59

PM

03:3

7:29

PM

03:4

1:59

PM

03:4

6:30

PM

03:5

0:59

PM

03:5

5:29

PM

03:5

9:59

PM

04:0

4:29

PM

04:0

9:00

PM

04:1

3:29

PM

04:1

7:59

PM

04:2

2:30

PM

04:2

6:59

PM

04:3

1:30

PM

04:3

5:59

PM

04:4

0:29

PM

04:4

4:59

PM

04:4

9:29

PM

04:5

3:59

PM

04:5

8:29

PM

05:0

2:59

PM

05:0

7:29

PM

05:1

1:59

PM

05:1

6:29

PM

05:2

0:59

PM

05:2

5:29

PM

05:2

9:59

PM

05:3

4:29

PM

05:3

8:59

PM

05:4

3:29

PM

05:4

7:59

PM

05:5

2:29

PM

05:5

6:59

PM

06:0

1:29

PM

06:0

5:59

PM

06:1

0:29

PM

06:1

4:59

PM

06:1

9:29

PM

06:2

3:59

PM

06:2

8:29

PM

06:3

2:59

PM

06:3

7:29

PM

06:4

1:59

PM

06:4

6:30

PM

06:5

0:59

PM

06:5

5:29

PM

06:5

9:59

PM

07:0

4:29

PM

07:0

8:59

PM

07:1

3:29

PM

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.0

COIN TOSS

MADONNAHALFTIME SHOW EXCITING LAST FEW

MINUTES OF THE GAMEKICKOFF

BATTLESHIP MOVIE AD

TAX ACTAD COCA-COLA

POLAR BEAR AD

GIANTS DRIVE (FIELD GOAL)

Source: Flurry Analytics

App Sessions Started per Second in U.S. During Super Bowl

..and Changing Viewing Behavior

Apps Disrupting Search

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

7%4% 3%

5%8%

18%

5%

-7%

-13%

GOOGLE AVERAGE CPC, YEAR-OVER-YEAR % CHANGE

-13%

Q1 2012

Q4 2011

Source: Google, Inc.

Apps Disrupting Video

U.S. VIDEO ENGAGEMENT, MONTHLY MINUTES PER ACTIVE USER

Mar 2011 June 2011 Sep 2011 Dec 2011 Mar 2012

63 93 110 152

231 276

324 378

472 425

Source: Flurry Analytics, comScore Video Metrix

Google Internet SitesiOS & Android Photo & Video Apps

TV Print Web Radio Mobile

43%

29%

16%

11%

1%

40%

6%

22%

9%

23%

2011 U.S. Ad Spending vs. Consumer Time Spent by Media

Sources: VSS, Mary Meeker (KPCB), comScore, Alexa, Flurry Analytics

TIME SPENT PER MEDIAAD SPEND PER MEDIA

The Great Mobile Ad Spending Gap

TV vs. App Gap: Consumer Entertainment Cost

Source: Flurry Analytics, Nielsen, Business Insider, Apple Inc

$17

$300

ANNUAL COST OF ENTERTAINMENT FOR EACH DAILY HOUR CONSUMED

CABLE TV SMART DEVICE APPS

TV vs. App Gap: Advertiser Cost to Reach Consumer

Source: Flurry Analytics, Nielsen, Business Insider

AVERAGE MONTHLY COST TO REACH A U.S. CONSUMER

$72

$0.90

CABLE TV APPCIRCLE CLIPS

Changing Dynamics in Mobile App Economy

OUT IN

MOBILE EXPERIMENTAL MOBILE IMPORTANT

ROOM FOR ALL ROOM FOR MANY

INDIE PLAYGROUND HOPPERS & CONSOLIDATERS

DIY & NOVELTY DATA-DRIVEN COMPANIES

ONE AUDIENCE SEGMENTATION

NEW USER ACQUISITION ACTIVE USER ACQUISTION

BUY RANKED POSITION BUY TARGETED CAMPAIGNS

FREEMIUM & PREMIUM IAP & AD REVENUE

MANUAL MEDIATION SUPPLY-SIDE PLATFORMS

PRIMARILY U.S. STRONGLY INTERNATIONAL

Thank You!

Peter FaragoVP Marketing @FlurryMobileblog.flurry.com