DECEMBER 2012

The State of the App EconomySimon Khalaf, President & CEO

@FlurryMobile

@SimonKhalaf

@AppNationConf

-

100,000,000,000

200,000,000,000

300,000,000,000

400,000,000,000

500,000,000,000

600,000,000,000

700,000,000,000

800,000,000,000

900,000,000,000

1,000,000,000,000

1,100,000,000,000

WW iOS & Android App Events Measured by Flurry, Billions

One Trillion Events Per Month

Source: Flurry Analytics, May 2008 – November 2012

Dec 2010 Dec 2011 Dec 2012 -

20

40

60

80

100

120

140

160

180

Sources: comScore, Alexa, U.S. Bureau of Labor Statistics, Flurry Analytics

70

162

66 72

168

9470

168

127

Mobile ApplicationsWeb Browsing Television

Apps Pass Web, Challenge TV

U.S. Web vs. Mobile App vs. TV Consumption, Minutes per Day

Games43%

Social Networking26%

Entertainment10%

Utilities10%

News 2%Productivity 2%Health & Fitness 1%

Lifestyle 1% Other5%

Source: Flurry Analytics, November 2012

Beyond Gaming

WW iOS & Android Smart Device Time Spent per App Category

2008 2009 2010 2011 20120

2

4

6

8

10

12

14

16

18

20

Mobile Revenue GrowthBi

llions

Source: eMarketer, Mary Meeker (KPCB)

129% CAGR

Virtual Goods Advertising

1. It’s hard to make money in mobile and apps

2. It’s expensive to scale an app business

3. A minority is capturing the majority of revenue

Investor Skepticism

1. It’s hard to make money in mobile and apps

2. It’s expensive to scale an app business

3. A minority is capturing the majority of revenue

Investor Skepticism

US Display Advertising and Virtual Goods Revenue

Mobile Revenue Growth

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

2

4

6

8

10

12

14

Source: eMarketer, Flurry, Comscore

Billio

ns

Web (Browsing) Mobile Apps

1. It’s hard to make money in mobile and apps

2. It’s expensive to scale an app business

3. A minority is capturing the majority of revenue

Investor Skepticism

Cost per Visit, Apps versus The Web

App Traffic Acquisition

63

22

Source: eMarketer, Flurry

Web Apps

1. It’s hard to make money in mobile and apps

2. It’s expensive to scale an app business

3. A minority is capturing the majority of revenue

Investor Skepticism

Chart TitleNumber of Companies Controlling 66% of Revenue (Ads and Apps)

Revenue Distribution

Source: eMarketer, Flurry

248

5Web Apps

Thank you!

@FlurryMobile

@SimonKhalaf

@AppNationConf