Leveraging the Mobile Age

Corey PladsonSales Manager, Client Services

Presentation Outline

Ø The current state of the mobile industry

Ø The future projections of the mobile industry

Ø Developing a mobile strategy

Ø How Digital River can help

Mobile Trends

(Distimo)

Largest Mobile Application Stores

(Distimo)

Mobile Application Store Growth in 2010

(Distimo)

Top Five Growth Categories by DeviceApple App Store GrowthGrowthGrowthGrowth Blackberry App StoreBlackberry App StoreBlackberry App StoreBlackberry App Store GrowthGrowthGrowthGrowth

Business 186% Reference & eBooks

733%Medical 156% Themes 653%Lifestyle 145% Music & Audio 402%Finance 144% News 353%Music 143% Health & Wellness 243%

Google Android Market GrowthGrowthGrowthGrowth Nokia Nokia Nokia Nokia OviOviOviOvi Store Store Store Store GrowthGrowthGrowthGrowth

Comics Apps 802% News & Info 1281%Sports Apps 748% Sports 1073%Card/Casino Game

664% Business 909%Entertainment Apps

589% Music 861%Health Apps 488% City Guides & Maps 743%

(Distimo)

Internet Traffic Projection - 2013

• By 2013, 40% of all Internet traffic will come from mobile devices

Android

AND

_______________________“Android will overtake both Blackberry and iOS by

2012.”

(Gartner)

Worldwide Converged Mobile Device Operating System Market

SharesOperating SystemOperating SystemOperating SystemOperating System 2010 Market2010 Market2010 Market2010 Market 2014 2014 2014 2014 Market Market Market Market 2014/20102014/20102014/20102014/2010

Symbian 40.1% 32.9% -18.0%BlackBerry OS 17.9% 17.3% -3.5%Android 16.3% 24.6% 51.2%iOS 14.7% 10.9% -25.8%Windows Mobile 6.8% 9.8% 43.3%

(IDC Worldwide)

Android and Windows Mobile will be the fastest growing operating systems in the

next four years

Developing your Mobile Strategy

Mobile apps represent a cobranding opportunity that stamps early adopters as innovative companies. Mobile applications

allow you to extend your brand.

The POST Strategy for Mobile

Ø P – People

Ø O – Objectives

ØS – Strategy

ØT – Technology

People – Define your Target Audience

Who do you want to develop apps for?Who do you want to develop apps for?Who do you want to develop apps for?Who do you want to develop apps for?

Ø Task Workers

Ø Information Workers

ØThe Rest – The fastest growing The fastest growing The fastest growing The fastest growing targettargettargettarget

What is the Objective?

q Extend your Brand and Brand Loyalty

q Acquire new sales

q Satisfy a Need

Extend your Brand and Loyalty

Ø Look for opportunities to solve real problems for your consumers

Ø Prove to them that you can add value at every touch point

Ø Ensure that people actually use your mobile app, continue to use it, and actually recommend it to their friends and family

Ø Make sure each and every time they do use your app that they see your brand and associate it with a positive/relevant experience

Acquire New Sales

Ø 40% of Internet traffic in 2014 will come via a mobile device

Ø Gives Internet companies a new sales channel

Ø Through the use of free apps and push notifications (native apps), you can begin a dialog with a new group of customers

Ø Easier to introduce new products (both mobile and PC)

Ø By 2015, some countries cellular access will precede wired broadband

Satisfy a Need

Ø The goal of every app user is to satisfy a need.

Ø If it does not satisfy the need, then they will not use it.

Ø Recently interviewed a mobile app company CEO and found that 74% of all users use their app once or more per day

Ø Ask your current audience what they want

Ø Longevity is important. An example is the Zippo lighter app. It had millions of downloads but the novelty wore off. It was fun but didn’t satisfy a need

Strategy Questions

ü What users do you want to target? Do you want to have a cross-platform strategy or focus on one or two?

ü What is the mobile apps user experience? Key to success. Solve your customer’s problem in as few a steps as possible.

ü Do you plan to charge for the app or serve ads to drive revenue?

ü Are there on-device capabilities needed such as built-in camera, microphone, or bluetooth?

Technology- The BIG Question…..

Native apps or mobile web?

Native apps Native apps Native apps Native apps – download and install on mobile device, no Internet access needed, must download new updates, platform and hardware dependent, must develop new app for each platform

Mobile Web Mobile Web Mobile Web Mobile Web – Requires internet access, hit refresh to get new version, platform agnostic, development is written once, published once and can be view from anywhere.

Digital River’s Mobile Plan

•RegNow – add the capability for clients to setup apps for Android and WP7 operating systems and sell them through the system including delivery to the mobile phone. We will have the ability to handle micropayments, and the affiliates will be able to promote affiliates as well as the option for clients to deploy their app into the marketplace.

•SWREG – will have the enhanced order form, and we will be looking at building an Android app to manage your store regarding the basics.

•eSellerate – will be focusing on an SDK for the iphone, and iPad and iPhone mobile order forms.

*new sale fee pricing for apps (apps that cost less than $12)