June 11, 2015 Strategy Analytics, Inc 1 · •Offers dedicated user experience, automotive and...

June 11, 2015 Strategy Analytics, Inc 1

STRATEGY ANALYTICS

• Market Research Firm with 30+ years in the industry

• Offices in Boston, London, Paris, Munich, Tokyo, Seoul & Beijing

• Core Philosophy: Research, Experts and Analytics

• Ranked in the top ten largest global industry analyst firms according to Outsell Research

• Ranked in the top five most influential analyst firms by Apollo Analyst Rankings

• Offers dedicated user experience, automotive and consumer insights practices

June 11, 2015 Strategy Analytics, Inc 2

AppOptix A proprietary platform used to monitor the activities of our Android and iOS panelists. The opt-in panel provides a non-stop stream of user data providing compelling insights and unique segmentation possibilities. • Launched 2014 • Available on: Android and iOS • Currently launched in the US • 2,000+ current panelists • 1M+ data points collected daily

AppTRAX • Web scraped database which has collected data on

the most popular iOS, Android, Windows Phone, BlackBerry and Amazon apps

• Launched in 2010 • Millions of data points collected and harmonized

monthly • 150+ countries for iOS, 10 for Google Play

Copyright © 2015. Strategy Analytics, Inc. 3

SPEAKER – JOSH MARTIN

Chief Researcher

Application Strategies Group

Strategy Analytics

jmartin@strategyanalytics.com

@TheRogueAnalyst

Background

Industry Analyst with 10+ years of experience

History of helping companies navigate emerging markets

Launched the application research service at Strategy Analytics in 2010

Consolidated application research at Strategy Analytics in 2015

Copyright © 2015. Strategy Analytics, Inc. 4

WHY TRAVEL APPS MATTER

The app market is HUGE

Create customer loyalty

Competitive differentiator

New revenue opportunity

Reduce over the top threats

Cost reduction

CHOOSE YOUR OWN FUTURE 22

YOU’RE THE STAR OF THE STORY! CHOOSE FROM 5 POSSIBLE ENDINGS!

A-Z ON APPS

100 Billion apps downloaded in 2015 from App Store & Google Play

Image source: ROUNDED UP app

Source: Application Strategies, Strategy Analytics

If sold in boxes they would be

taller than

50 Empire State

Buildings

Image source: washingtontimes.com

Source: Application Strategies, Strategy

Analytics

49 Updates By JetBlue, American, Delta, United & Southwest in last year

Image source: thegrizzness.com

Source: Application Strategies, Strategy Analytics

BEWARE AND WARNING!

This market is not as it seems.

You and Your Company are in charge of its success as you encounter the following danger(s):

• Disinterested Users

• Fragmented Markets

• Missing Millennials

• Consolidated Leaders

• Pesky Competitors

There are dangers, choices, adventures and consequences. You must use all of your talents, marketing and data to succeed. But don’t worry, the wrong decision(s) may only result in disaster and ruin!

3%

iOS

.6%

Android

.7% Sessions

Image source: fitnessrevolution.com

Source: Application Strategies for Travel,

Strategy Analytics

77%

.6%

.14%

Source: Strategy Analytics, AppOptix

Image source: Google

50% Android owners using an OS 3+ years old

Image source: phonearena.com

Source: Google

5%+ Millenials under-index* in usage of Airline & Hotel Apps

Image source: NBC News

Source: Application Strategies for Travel, Strategy Analytics

< $50K Only over-index for OTA usage but under-index for Hotels & OTAs

Image source: skymed.com

Source: Application Strategies for Travel, Strategy Analytics

Friend or Foe?

You look out into a crowded marketplace. There is no end in sight to the competition. In the distance you see a popular caravan. You are faced with a choice. Do you seek to forge ahead alone or work with the group? Some potential partners include:

• TripAdvisor – the most well penetrated travel app

• Expedia – overindexes on usage relative to Priceline

• OpenTable – strong correlation between app owners and travelers

14%

Source: Application Strategies for Travel, Strategy Analytics

3X Hotel App

4.5x OTA App

5x Airline App

Image source: pixshark.com Source: Application Strategies for Travel,

Strategy Analytics

48% Relative Installed

Base

60% Sessions

Source: Application Strategies for Travel,

Strategy Analytics

Image source: theboardr.com

Source: Application Strategies for Travel,

Strategy Analytics

The Big Payoff

You have made wise decisions but this is a time for continued vigilance. You must convince people to use your app, become better customer or generate revenue through other means. How do you plan to proceed?

• Generate cost savings?

• Create new revenue streams?

• Get stickier customers?

Image source: WikiCommons

Source: Application Strategies for Travel,

Strategy Analytics

400% Increase in Chrome as a % of relative sessions

Image source: thedesignair.net

Source: Application Strategies for Travel,

Strategy Analytics

67% Of airline app sessions take place within 1-week of going to the airport

Image source: aubutfamily.com

Source: Application Strategies for Travel, Strategy Analytics

The Future

The future is upon you. Technology is evolving at an ever quickening pace but it is difficult to keep up. Companies want you to support glass-based computers! Smart Watches! DNA based nano-bots! Spread yourself too thin and everything suffers. Fail to support the winners and see your competition lap you.

• Support Glass?

• Support Apple Watch?

• Occulus Rift?

90% Airlines

60% OTAs

30% Hotels

Support for Apple Watch Varies Source: Application Strategies for Travel, Strategy Analytics

App Name Distinct Installed User Devices Session Count Impact

Google Maps 95% 65% High

Waze 8.6% 6.8% High

SPG – Starwood .6% 3% High

mPlaces 4.6% 6.7% Moderate

GasBuddy 13.2% 4.5% Moderate

Uber 10.1% 3.8% Moderate

Yelp 9% 3.7% Moderate

Lyft 4.1% 1% Moderate

Fly Delta 1.5% .9% Minimal Source: Application Strategies for Travel, Strategy Analytics

Copyright © 2015. Strategy Analytics, Inc. 27

APPLE WATCH SUPPORT IS STRONG

Source: Application Strategies for Travel, Strategy Analytics

Forget the TV?

Image source: Roku

Copyright © 2015. Strategy Analytics, Inc. 29

CONCLUSIONS

• Finding users is difficult but not impossible

• Your app strategy must be well defined and tie in to corporate objectives

• You should create KPIs to measure app success

• Apps should not be seen as a cost center – they can drive direct & indirect revenue

• Finding the right partners is critical to success

Josh Martin

Chief Researcher, Application Strategies Group

Strategy Analytics

1.617.614.0770

jmartin@strategyanalytics.com

@TheRogueAnalyst

www.strategyanalytics.com