App Economy 2.0 Unlocking a New App Revenue Stream

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1 App Economy 2.0 Unlocking a New App Revenue Stream Huang Xu General Manager Appnext China

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

3 Appnext by the Numbers 8 Offices 95K Developers 700M DAU 50B M/Requests +80M DAU with Appnext Timeline 42k Apps Suggested Actions integrated 1B / Month Appnext SDK 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

4 Mobile has evolved and so has service consumption. There are new needs to be fulfilled.

5 New app installs are down across organic channels App Store Word of Mouth Opinion Advertising Marketing 21% 20% 16% 15% Why do users install less apps? 14% 13% 11% 10% 8% 8% 11% 10% 9% 9% 9% 6% Searched app store Featured Top List in app store Via friend family Via comment review social site Via news print review TV show Via a website Via Ad on device browser app Via Ad on TV print billboard Credit: ComScore Jun-2017 Jun-2016

6 Time spent in-app surges Apps Installed Per User Monthly, US Share of Digital Time Spent in App, US Sources: comscore, Tune, emarketer

7 Most users don t have an app for the service they need Start shopping Order a taxi 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 Book a flight Order food 0% 10% 20% 30% 40% 50%

8 People use about 10 apps per day People love using apps 2. They tend to cling on to a bunch of them 3. An app which can offer more services to its user will become a hub/ Super App Brazil India China* United States Japan UK German y Mexico South Korea France Average number of apps used a day by smartphone users, Q Credit: AppAnnie *China ios only

9 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

10 Let s see some new User- First Experience & Tech Trends Seamless Discovery Instant Usage

11 WeChat One minute on WeChat Why it is so successful One-stop-shop for users Getting lots of services without stepping out of the app Payment through the app 4,112,500 Articles are read 350 New WeChat Accounts Are Registered 1,057,500 Payment Transactions Take Place 69,584 People use WeChat shake Feature 14,206,631 Users open WeChat 7 New service or subscription accounts are registered

12 Instagram Allows brands and influencers to make an organic post shoppable by tagging a product in the same way they would tag a person in a photo

13 Facebook Messenger Allows 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

14 Google Assistant Google Assistant allows people to see the products they want to buy and order them

15 They understood early on that users want services Opportunity for a new revenue stream and a better means of marketing services

16 Service-Based Monetization Appnext Actions Monetizing your app through services A smart and engaging way to monetize users! 1. Smart - Machine learning and Timeline technology to better understand user needs 2. Engaging - A friction-less, non intrusive way to search for services rather than apps 3. Highly Monetized - A hidden revenue stream

17 Appnext Timeline - Behavioral-based service recommendations AWS Cloud A AWS Cloud B Data Data 100M DAU with Appnext Timeline 1.5B User moments created a day Responding to the users immediate needs Superior serving through Machine Learning Appnext Actions Appnext Timeline

18 Your very own personal assistant Monetizing your app through services rather than ads Dynamic Behavior-based Real-life user context Service oriented

19 Engaging - Help your users find the services they search for Available on demand A habit-forming experience

20 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

21 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

22 Service-Based Monetization Appnext Actions Turn your app into a platform Help your users easily access their favorite everyday services Generate an incremental revenue stream

23 An end-to-end marketing tool Appnext 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 3 rd -party companies

24 The Ad Products Context-driven. Scientifically optimized. Pixel perfect.

25 Native Ads Classic Native Customizable to any UI Content Recommendation User Acquisition & Re-engagement Campaigns In-feed Video Video-Enhanced Native Experiences

26 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

27 Now you can do it too Let s see some integrations and numbers

28 Appnext Actions & Drupe The key is providing more services for users A top Contacts and Caller ID app - 10M+ installs 1. Dedicated services tab - building new user habits 2. 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%)

29 Appnext Actions & TextNow The key is better user experience World s first cloud-based phone carrier - 10M+ installs 1.Keep the natural chat flow 2.Context + Double opt in: High user intent 3.Incremental revenues Results 29.13% service completion rate Vs. standard native ads (1.5%-3%) 15.4% user engagement increase in the app

30 Appnext Actions & TextNow With Appnext Actions, we've been able to bring in higher CTR than standard ads. For the publisher, we've created 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

31 Appnext Actions & DailyHunt The key is providing more services for users India s no.1 news and local language content app - 50M+ installs 1.Actual added value to readers without intrusion 2.Context + Double opt in: High user intent 3.Incremental revenues Results 12% of Dailyhunt users are repeatedly using Actions for their service. 24% service completion rate Vs. standard native ads (1.5%-3%)

32 Appnext Actions & DailyHunt Appnext s new discovery product allows us to provide additional services for our users, from within the app, driving enhanced usage of DailyHunt while generating significant new revenues Virendra Gupta, DailyHunt s Founder & CEO

33 Deploying with OEMs Worldwide Notifications Lock Screen Home Screen Assistant

34 What s in it for me? Users Search-like experience and real value proposition Advertisers Stay on top of the user s mind and at the bottom of the funnel Publishers A new non-intrusive revenue stream, increasing loyalty and time spent in app OEMs Take part in the app economy by connecting users 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!

35 THANK YOU : )