App Economy 2.0 – Unlocking a New App Revenue Stream · A new non-intrusive revenue stream, increasing loyalty and time spent in app. Advertisers Stay on top of the user’s mind

C O M P A N Y O V E R V I E W 2 0 1 7

App Economy 2.0 –Unlocking a New App Revenue Stream

Huang Xu | General Manager Appnext China


Our Vision Connecting people with the services they need for a better day


Appnext by the Numbers

3% of the users are using Actions every day! More than 150K users / day are browsing shopping catalogs using Actions 544,088 users started a process to book a hotel room in March using Actions

8 Offices 95K Developers

+80M DAU with Appnext Timeline 42k

Apps integrated Appnext SDK

1B Suggested Actions / Month

700M DAU 50B M/Requests


Mobile has evolved and so has service consumption.There are new needs tobe fulfilled.


New app installs are down across organic channels

Why do users install less apps?

Searchedapp store

Featured Top List

in app store

21%20%

App Store

14%13%

Via friend | family

16%15%

Word of Mouth | Opinion

11%10% 8% 8%

Via comment | review | social site

Via news | print |

review TV show

Via a website

11%10%

Advertising | Marketing

9% 9% 9%6%

Via Ad on device

browser | app

Via Ad on TV | print | billboard

Credit: ComScore Jun-2017 Jun-2016


Time spent in-app surges

Apps Installed Per User Monthly, US

Share of Digital Time Spent in App, US

Sources: comScore, Tune, eMarketer


Most users don’t have an app for the service they need

• How many potential users in Asia have an app installed for the services they need?

• A market failure in terms of mobile marketing that needs to be solved

Start shopping

0%

Order a taxi

Book a flight

Order food

10% 20% 30% 40% 50%


People use about 10 apps per day

1. People love using apps2. They tend to “cling” on to a bunch

of them3. An app which can offer more

services to its user will become a hub/ ”Super App”

Average number of apps used a day by smartphone users, Q1 2017. Credit: AppAnnie *China iOS only

Brazil India China* UnitedStates

Japan UK Germany

Mexico SouthKorea

France

0

2

4

6

8

10

12


The market has changed

Users are less and less inclined to install new

apps

They want solutions for their immediate needs that does not require them to install apps

Users prefer relevant services than ads that disrupt the user

experience


Let’s see some new User-First Experience & Tech Trends

Seamless Discovery Instant Usage


WeChatWhy it is so successful One-stop-shop for users Getting lots of services without

“stepping out” of the app Payment through the app

One minute on WeChat

350New WeChatAccounts AreRegistered

4,112,500Articles areread

14,206,631Users openWeChat

1,057,500PaymentTransactionsTake Place

69,584People useWeChat shakeFeature

7New service orsubscription accountsare registered


InstagramAllows brands and influencers to make an organic post “shoppable” by tagging aproduct in the same way they would taga person in a photo


Facebook MessengerAllows users to order food from local restaurants using the app Instead of competing directly with other food ordering services, FB partnered with several industry players such as EatStreet, Delivery.com, DoorDash and others


Google AssistantGoogle Assistant allows people to seethe products they want to buy and order them


They understood early on thatusers want services

Opportunity for a new revenue streamand a better means of marketing services


Service-Based Monetization – Appnext Actions

Monetizing your app through servicesA smart and engaging way to monetize users!1. Smart - Machine learning and Timeline technology

to better understand user needs2. Engaging - A friction-less, non intrusive way to

search for services rather than apps3. Highly Monetized - A hidden revenue stream


Appnext Timeline -Behavioral-based service recommendations

100M DAU with Appnext Timeline 1.5B User moments created a day Responding to the users’ immediate needs Superior serving through Machine Learning

AWS Cloud B

Data

Appnext Actions

Appnext Timeline

AWS Cloud A

Data


Your very own personal assistantMonetizing your app through services rather than ads

Dynamic Behavior-based Real-life user context Service oriented


Engaging - Help your users find the services they search for

Available on demand A habit-forming experience


And… no app install needed –complete orders in app cards

User clicks on the ‘Order Taxi’ Action Chooses service provider, destination and time Completes the order within the app


Or instantly book hotel rooms using Booking.com

User clicks on the book hotel Action Booking.com is displayed under hotels in the Actions results page User is redirected to the booking.com deep link app URL


Service-Based MonetizationAppnext Actions

Turn your app into a platform

Help your users easily access their favorite everyday services

Generate an incremental revenue stream


An end-to-end marketing toolAppnext Actions

Transform your app/device into a service hub,

enabling cross-marketing activities

Expose users to new services and offerings in a

non-intrusive way

Increase sales and cooperation with 3rd-party

companies


The Ad ProductsContext-driven.

Scientifically optimized.

Pixel perfect.


Native Ads

ContentRecommendationUser Acquisition & Re-engagementCampaigns

In-feed VideoVideo-Enhanced Native Experiences

Classic NativeCustomizable to any UI


And we Also Made Native Ads Smarter

Clicking on a native ad can lead the user to various offers adding more room for advertisers to offer their products and services


Now you can do it tooLet’s see some integrations and numbers


Appnext Actions & DrupeThe key is providing more services for users

A top Contacts and Caller ID app - 10M+ installs1. Dedicated services tab - building new user habits2. Users mainly from India and U.S.3. Actual added value to users without intrusion

Results

30% service completion rate Vs. standard native ads (1.5%-3%)


Appnext Actions & TextNowThe key is better user experience

World’s first cloud-based phone carrier - 10M+ installs1.Keep the natural chat flow2.Context + Double opt–in: High user intent3.Incremental revenues

Results29.13% service completion rate Vs. standard native ads (1.5%-3%)15.4% user engagement increase in the app


Appnext Actions & TextNow

“With Appnext Actions, we've been able to bring inhigher CTR than standard ads. For the publisher, we'vecreated a new revenue stream.

And for the user, we've raised engagement, and clearly see that users view it as bringing added value to their conversations”

Chas Castell, TextNow’s VP of Revenue Operations


Appnext Actions & DailyHuntThe key is providing more services for users

India’s no.1 news and local language content app - 50M+ installs1.Actual added value to readers without intrusion2.Context + Double opt–in: High user intent3.Incremental revenues

Results12% of Dailyhunt users are repeatedly using Actions for their service.24% service completion rate Vs. standard native ads (1.5%-3%)


Appnext Actions & DailyHunt

“Appnext’s new discovery product allows us to provideadditional services for our users, from within the app,driving enhanced usage of DailyHunt while generatingsignificant new revenues”

Virendra Gupta, DailyHunt’s Founder & CEO


Deploying with OEMs Worldwide

Notifications Home Screen Assistant

Lock Screen


What’s in it for me?Users

Search-like experience and realvalue proposition

Publishers

A new non-intrusive revenue stream,increasing loyalty and time spent in app

Advertisers

Stay on top of the user’s mind and at thebottom of the funnel

OEMs

Take part in the app economy by connectingusers to the services they need

Service-based Monetization is a smart and engaging way to provide your users with better experiences.

Let them search for the services they need while you unlock a new revenue stream!


THANK YOU : )

Documents

App Economy 2.0 – Unlocking a New App Revenue Stream · A new non-intrusive revenue stream, increasing loyalty and time spent in app. Advertisers Stay on top of the user’s mind