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Global Mobile Vision 2012
How to enter the European Mobile Market
CEO & Founder Rumble Media
David An
Executive MBA HSG, M.Sc.
November 2012
Online Gaming
Rumble Media GmbHCEO: David An Foundation: 2007Major Shareholder: HoltzbrinckHQ in Karlsruhe, Germany Number of employees: 11
Mobile Gaming
About Rumble Media
Portal Business
Mobile SaaS Reseller
Mobile PublishingSolutions
Agenda
- European Mobile Market- Current Challenges - Potential Growth Strategies- Solution - Conclusion
3
European MobileMarket
4
Largest 6 European Countries
Population
Population
3G
3G
(Mio)
%
Subscriber
%
(Mio)
Germany
82
23%
38
18%
France
61
17%
30
14%
Great
62
18%
42
20%
Britain
Italy
61
17%
44
20%
Poland
39
11%
28
13%
Spain
47
13%
33
15%
Total
351
215
The top 6 countries make up 350 million inhabitants which is about ~50%
of total Europe and 70% of EU (500 M).
Source: Morgan Stanley, Wikipedia
5
How big is the market
82 Million total
38 Million Mobile 3GSubscriber
26 Million SmartphoneUsers
Germany has a ~ 68% smartphone penetration.
Source: Bitcom
6
Statistics German Market
Incumbent App Stores
In Germany, Android has become market leader. There are only 3 significant appstores
Source: Madvertise
7
OS Penetration Germany
Symbian
5%
RIM
6%
iOS
14%
Windows
5%
Android
68%
Bada
2%
Other
0%
Currently, in the top 6 European countries 2/3 of every newly sold
smartphone is an Android phone.
Source: Kantar worldpanel
8
New Smartphone Sales
0.6%
13%
19%
46%
Android apps are more advertising driven with only 0.6% pure paid apps and 13% in-
app-purchase apps.
Apple iOS paid apps still have 20% share.
Source: xyologic
9
Revenue Models Germany
Current
Challenges
1
A game on Android will make only 24% of the iOS version. Amazon is ~ 89%Lower payment conversion for Android in Europe is due to the lack of GoogleWallet accounts which Google is working on of course.
Source: Madvertise
11
New Smartphone Sales
$2.50
$2.00
$2.00
$1.50
$1.00
$0.75
$0.50
$0.00
According to Pocketgamer user acquisition costs have recently jumped
from 0.75$ to 2
$.
This is due to incumbent players currently buying themselves at a loss intothe future ( Zynga, Gree, DeNA)
12
Current Challenge: Customer Acquisition Costs
Cost per User (Cost per install)
$2
$1.86
$0.75
$0.75
Conversion Rate
5%
5%
5%
5%
Break-Even
$40
$37
$15
$15
Target Margin
30%
30%
30%
50%
Life-Time Value (LTV) Target
$57
$53
$21
$30
Buying users at 2$ equals to burning money.
Assuming a low target margin of 30%, 0.75$ CPI seems feasible. But the question is: Can you get the right audience ?
13
Current CPI Levels are not sustainable
Potential GrowthStrategies
1
Overview of Growth Strategies
1.Viral
Out of product itself (Kakaotalk, Anipang)Social media (Social graph)
2. Organic
SEO (Google)
PR (Public Relations)
Appstore Relations (Have good relations)
3. Advertising Networks
CPM (Cost per Mille)CPC (Cost per Click)CPI (Cost per Install)
4. Special Paid Networks
Incentivized (Tapjoy, Sponsorpay)Free App a Day (FAAD)
Chart Booster
5. M&A
6. Partnerships
Channelling (LTV)
Free
Pay
Share
15
Some real numbers!
Clickrate 2.5%
CPC 20cents
1 Million BannerImpressions
1 Million x 2.5% x .2= 5,000 Euro
25,000 Clicks
16
Paid Advertising - CPC
Advertise in the timeline
- high CTR
- good targeting
- however high costs
- ~1$ CPI
In addition:
- use social graph
features like requests,challenges, invitations,score API, open graph
17
Paid Advertising Facebook Ads CPI
Most deals were bought at a high premium:
- Zynga bought OMGPOP for $ 180 - 210 Million 6$ / user
- Gree bought Pokelabo ($7m revenues $2m profit 2011)for $170m by Gree 25 Price/Sales and 85 Price/Earningsmultiple
18
M&A
In addition, build your own distribution eco-system
Eco-system approach (channeling) forces you to build a good monetizinggame right from from scratch and build long-term partnerships.
You need an external solution to manage all the tracking and analytics.
19
Solution
2
TinyCo shares up to 75% of realized revenues (at least 30%needed)
Incremental revenues for app publishers Drawbacks:
Limited to apps
SDK for app publishers needed
No detailed reporting
21
First step into the right direction
Mobile PS is a solution that supports your eco-system
Game Publishers
Build a longterm global network of affiliate partners Don't waste marketing dollars & ad network fees Flexibility to mix different revenue models
22
23
Mobile PS SaaS Technology
Conclusion
2
- Don't inflate your business plan on Android
- Control your conversion funnel at any time
- Public Relations builds awareness & word-of-mouth
- Don't outspend your competition
- Hire Managers with cultural empathy
- Build a long-term distribution network & ecosystem
- Outsource solutions which are not a core competence
- Use Mobile PS as Software-as-a-service
25
Conclusion
Please visit our website forfurther information
26
Any questions?www.mobile-ps.com
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