Pub Products: 2016 Strategy

Title Text

State of App Nation 2016

Chris Klotzbach, Head of Product Marketing, Yahoo Mobile Developer Suite @flurrymobile AppNation: January 7, 2016

Flurry from Yahoo

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APPS

785,000

DEVICES PER MONTH

2.1BSESSIONS PER DAY

10B

Source: Flurry Analytics

FLURRY: BY THE NUMBERS

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300B

225B

150B

75B

2011 2012 2013 2014 20152009 20102008

MUSIC

GAMING

ENTERTAINMENT

SOCIALNETWORKING

TRAVEL

RETAIL

MESSAGING

TV

MEDIA

Source: Flurry Analytics

MONTHLY FLURRY SESSIONS

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2015: ANOTHER STUNNING GROWTH YEARMedia, Productivity & Emojis Give Mobile 58% YoY Growth

Source Flurry Analytics, 2014-2015

0

1

2

3

4

Personalization Untitled 1 Untitled 3 Untitled 4 Untitled 7 Untitled 8

-1%21%

51%52%53%54%81%

125%135%

332%

0.58Custom

-1%Personalization News &

MagazinesUtilities &

ProductivityLifestyle & Shopping

Travel & Navigation

Sports Health & Fitness

Messaging & Social

Music, Media & Entertaiment

Games

Average 58%

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280

590

985

176

440

784

MOBILE ADDICTION CONTINUES TO RISEWorldwide Daily App Usage Distribution (Millions)

REGULAR USERS SUPER USERS MOBILE ADDICTS

Under 16 Times 16 to 60 Times 60+ Times

+34%

+26%

+59%

Q2 2014 Q2 2015

Source: Flurry Analytics

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MOBILE ADDICTS

1 CHINA 1,305

2 INDIA 1,216

3 UNITED STATES 319

4 INDONESIA 248

5 BRAZIL 202

6 PAKISTAN 182

7 NIGERIA 177

8 MOBILE ADDICTS 176

9 BANGLADESH 152

10 RUSSIA 141

2014

Compared to World Population Rank

8 MOBILE ADDICTS 176

1 CHINA 1,320

2 INDIA 1,273

3 UNITED STATES 322

4 MOBILE ADDICTS 280

5 INDONESIA 255

6 BRAZIL 205

7 PAKISTAN 190

8 NIGERIA 183

9 BANGLADESH 158

10 RUSSIA 146

2015

4 MOBILE ADDICTS 280

Source: Flurry Analytics

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2015: YEAR OF THE PHABLET

Source: Flurry Analytics, December 19-December 25, 2015

Over 50% of Android Holiday Activations Were Phablets

0 0.25 0.5 0.75 1Full-size Tablets Small Tablets Phablets Medium Phones Small Phones

Android

iOS

2% 10% 50% 35% 3%

14% 9% 12% 65%

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2015: YEAR OF THE PHABLET

Source: Flurry Analytics, 2015

27% of All Activations were Phablets

0 0.25 0.5 0.75 1Full-size Tablets Small Tablets Phablets Medium Phones Small Phones

2015

2014

9% 9% 27% 54% 1%

11% 11% 13% 63% 2%

17% 12% 4% 64% 3%2013

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News & Magazines Sports Music, Media & Entertainment

21%53%135%

88%

274%

721%

PHABLETS: GREAT FORM FACTOR FOR MEDIAGrowth Rate of Media Apps Over Indexes on Phablets

5.16x

5.34x

4.19x

PHABLET ALL DEVICES

Source: Flurry Analytics, 2014-2015 YoY Growth Rate

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1

2

3

4

Small Phones Medium Phones Phablets Small Tablets Full-size Tablet26%

81%

334%

85%

8%

1.17Custom

WORLDWIDE TIMESPENT SKYROCKETS IN APPSOver Indexes on Phablets Almost 3 to 1

Source: Time Spent on Mobile by Form Factor, Flurry Analytics, 2014 to 2015

Average 117%

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220

162158

US: 3 HOURS AND 40 MINUTES A DAYOn Mobile Devices in the US

Q1 2013 Q2 2014 Q2 2015

+35%MOBILE TIME SPENT (MINUTES)

20% BROWSER BROWSER

10%

TIME IN BROWSER

DECREASED BY HALF

-50%14% BROWSER

Source: Flurry Analytics, comScore, Pandora, Facebook, NetMarketShare. Note: US, June 2015

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US TIME SPENT ON MOBILE

Source: Flurry Analytics, comScore, Pandora, Facebook, NetMarketShare. Note: US, June 2015

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US TIME SPENT

33

52

Q2 2014 Q2 2015

On Gaming (Minutes)

GAMING

-36%

Source: comScore, Flurry Analytics, June 2015

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US TIME SPENT

68

45Q2 2014 Q2 2015

On Messaging & Social (Minutes)

MESSAGING & SOCIAL

+50%

including FacebookSource: comScore, Facebook, Flurry Analytics, June 2015

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US TIME SPENT

44

13

Q2 2014 Q2 2015

On Entertainment (Minutes)

ENTERTAINMENT

+240%

including YouTubeSource: comScore, Pandora, Flurry Analytics, June 2015

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MEDIA CONSUMPTION IN APPS

Source: Pew Research, Added Value & Millward Brown Digital. Tumblr Content Engagement Study, October 2014., Flurry Analytics

96

46Q2 2014 Q2 2015

Including Social & Messaging (Minutes)

DAILY MINUTES/US CONSUMER

+108%

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… BUT NOT ON TRADITIONAL TV-50

-37.5

-25

-12.5

012.5

25

65+ 50-64 35-49 25-34 18-24 12-17 2-11

-18

-36

-46-42

-15

3

18

Change in hours spent watching traditional TV per month by age group

Source: MediaRedef/Neilsen, Live + VOD + DVR, Q2 2015 v. Q2 2010

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CONTENT IS KING (AGAIN)

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BECAUSE MOBILE IS ABSORBING ITS MINUTES

2Q 2013 2Q 2014 2Q 2015

198

139126

168168168

TV APPS

Source: Flurry Analytics, US Department of Labor Statistics

Time Spent in Mobile Apps and on TV (US, Minutes)

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$31

$23

$33

$21

AND SOME OF ITS REVENUESGlobal Mobile Revenues (Billions)

2014 2015

IN-APP PURCHASES MOBILE ADS (EX. SEARCH)

Source: Flurry Analytics, eMarketer, AppAnnie, Apple

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5 TRENDS TO WATCH IN 2016

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APPIFICATION OF THE WEB AND TV

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BROADCAST BECOMES MULTICAST

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distribution channel

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distribution channel

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PHABLETS BECOME DOMINANT

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QUARTERLY FORM FACTOR DISTRIBUTION FORECAST

Source: Flurry Analytics, 2016: Note: Form factor distribution projections based on linear and second degree polynomial regression models

0% 25% 50% 75% 100%Full-size Tablets Small Tablets Phablets Medium Phones Small Phones

2Q 2017 3% 9% 59%

35%

1%

29%

4% 9% 52%

39%6% 9% 46%

1Q 2017

4Q 2016

3Q 2016

2Q 2016

1Q 2016

4Q 2015

43%7% 9% 41%

47%8% 9% 36%

49%8% 9% 32%

1%51%9% 10% 29%

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RISE OF MESSAGING CENTERS

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• Decline of Call Centers and rise of the bot • Rise of Chat Commerce • Emergence of the AI Concierge

RISE OF MESSAGING CENTERS

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BATTLE ROYALE FOR LOCAL LOGISTICS

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• Uber • Doordash • Postmates • Thumbtack • Amazon

Battle Royale for Local Logistics

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We can’t wait to see what’s next!