india gadget expo: emotion trumps gadgets
DESCRIPTION
Keynote presentation by Levi Shapiro at the 2014 India Gadget Expo. The audience is invited to look beyond the spec war and create experiences with emotional resonance that capture lifetime value through "Freemium" pricing strategies. Examples include digital icons such as Lady Gaga and Jimmy Iovine, messaging apps like Facebook and WeChat, consumer brands like Nivea, Heineken, Vittel Water, Motorola as well as Israeli startups Waze, Magisto and JINNI.TRANSCRIPT
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Emotions Trump GadgetsLevi Shapiro, India Gadget Expo, June 19, 2014
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The Future of Digital?
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Apple Thinks So
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First…let’s Talk About the Glass Ceiling
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Multi-modal Competition
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Ecosystems Compete on Cross-Screen Experience
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Global annual unit sales (m)
1,000
750
500
250
0
PCs
1,250
1997 1999 2001 2003 2005 2007 2009 2011 2013e1995
Smartphones and tablets
0
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Apps are eating the world
Source Flurry
Aug ‘12Mar ’11 Jan ‘12
80%Of time on mobile is
spent in apps
140
120
60
40
20
0
100
80
160
Apps
Mobile web
Total min spent on mobile apps vs mobile web (billions of minutes per month, US)
Min
ute
s sp
ent
per
month
(b
illio
ns)
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Messaging is a Mobile Ecosystem
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Source: comScore Mobile Metrix, US March 2013
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2011 2012 2013 2014
Dollars Follow Eyeballs- FB Mobile Revenue
Mobile Desktop
59%Mobile Revenue
in 2014
0%Mobile Revenue
in 2011
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Facebook revenue by source
$2.5b
Q4
$3.0b
$1.5b
0
$1.0b
$0.5b
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Mobile
Advertising
Payments Advertising
$2.0b
Q1 Q2 Q3 Q4
2010 2011 2012 2013
$2.6b
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Engagement EnableseCommerce
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WeChat Ecosystem Value Capture
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Hardware as a Tool to Sell Digital Content
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Glide’s Technical Edge
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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E0
1,000,000,0002,000,000,0003,000,000,0004,000,000,0005,000,000,0006,000,000,0007,000,000,0008,000,000,0009,000,000,000
10,000,000,000
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Personal Computers (Desktop And Note-
book)
Smartphones
SmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphonesSmartphones
SmartphonesSmartphones
SmartphonesSmartphonesTablets
Tablets Tablets Tablets Tablets Tablets TabletsTablets
TabletsTablets
TabletsTablets
TabletsTablets
TabletsSmart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Connected/Smart TVs
Wearables
WearablesWearablesWearablesWearablesWearablesWearablesWearables
WearablesWearables
Wearables
Wearables
Wearables
WearablesWearables
Global Internet Device Installed Base Forecast
# O
f Dev
ices
(In
Mill
ions
)Its Not Just Mobile (eMarketer, 2013)
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The Magpie effect
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Offline Economy is Becoming “Appified”
• Massively contextual- Transactions are Incremental
• Your 2nd brain knows better than you do
• Wallet accessed through your mobile and gatekeepers
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Neural Measurement
Source: Professor Nathan Intrator , TAU
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Hey Cookie…You Talkin’ To Me?
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WelcomeLevi
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Web
Mobile
Context
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NEXTGEN
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Hours spent watching video monthly
5
12
9
33
8
Sou
rce:
Mas
habl
e, J
uly
2012
, Li
near
TV
Nie
lsen
11/
12
NON-LINEAR VIDEO VIEWING NOW EXCEEDS LINEAR TV
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BRIDGING THE GAP
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What Millenials Want…In Their Employer
1.Training
2. Management style
3. Work flexibility (time is currency)
4. Staff activities
5. Non financial rewards (Activism)
6. Good salary
#1 priority: “sense of meaning”
(Career Advisory Board, Harris Interactive study, 2012)
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“In 2009, there were 2.5 billion connected devices. In 2020, there will be 50 billion, most of which will be products.” (Gartner, 2013)
Millenials seek gadgets & experiences
reflecting their values: Inclusive,
Personal,Relationship-based
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https://www.youtube.com/watch?v=OTwJI0f8c1s
Israeli Brand: Magisto
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https://www.youtube.com/watch?v=y_7yoEUrVhw
Israeli Brand: Waze
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https://www.youtube.com/watch?v=5wh6BoTBx2w
Israeli Brand: JINNI
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http://www.youtube.com/watch?v=OlvjzQJGDnY
Nivea
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https://www.youtube.com/watch?v=UYy1GmJgFXA
Nivea (2)
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https://www.youtube.com/watch?v=iMrZmSPpIRw
Motorola
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https://www.youtube.com/watch?v=IIpMtWeXCaE
Heineken
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https://www.youtube.com/watch?v=yyRgQJzILus
Vittel Water
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https://www.youtube.com/watch?v=sjvSqDPrjGk
This is your Moonshot
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Can Your Gadget Encapsulate Noble Brand Values and Yet be Freemium?
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Freemium Products
• ZERO marginal cost of distribution• Low inherent conversion rate• Large scale / large total addressable market• Continuous monetization curve• Minority of highly engaged users
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Characteristics of Freemium Products
• No switching cost• LTV difficult to calculate• Much larger potential audience (everyone can afford free)• Network effects easier to achieve• Advertising not as abrasive• Multiple points of monetization
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Lifetime Customer Value (LTV)
• Present value of future cash flows from user• What individual user can be expected to pay• Can be aggregated over various dimensions (demographic
characteristics / early user behavior)• Marketing metric
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Misunderstanding LTVLifetime Customer Value is NOT Linear or Immediate
*usually. An LTV evolution curve could theoretically be linear.
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Misunderstanding LTVLifetime Customer Value is NOT Linear or Immediate
*usually. An LTV evolution curve could theoretically be linear.
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Misunderstanding LTVLifetime Customer Value is NOT Linear or Immediate
*usually. An LTV evolution curve could theoretically be linear.
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v
QUESTIONS?•••
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