Todd BrixSenior DirectorWindows Phone Apps

October 31, 2012

Expanding Your Opportunity with Windows Phone 8 (and 7)

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More OpportunityMore MarketsMore MonetizationMore Efficient Dev CenterMore Discoverability*Fast Start*

More OpportunityWindows Phone Developer Annual Report

Community Size 54,000 171,000 + 220%

Q3-2011 Q3-2012 %

Apps Available

Downloads/User

29,000 120,000 + 310%

40.4 53.2 + 31%

Markets 34 191 + 460%

Thank You!

Over 400 unique apps included

More $ than Windows Phone 7

Big Splash with Windows 8

“A Phone for Each of Us”

The New Windows Everywhere!

Marketing to match the engineering investment

A LOT more TV ads

Windows Phone 8 Manifesto8

More OpportunityMore MarketsMore MonetizationMore Efficient Dev CenterMore Discoverability*Fast Start*

Publish to 191 markets (free or paid)

Store available for Developers and Consumers in 191 countries or regions. A subset of these countries allows developers to submit only free apps.191 consumer countries available only for Windows Phone 8. Windows Phone 7.5 is available in 63 consumer countries or regions.

Submit to all 120+ new

countries or regions!

7.5 & 8.0

http://bit.ly/T9QP9J

50 languages

Windows Phone 7.5 24 Languages

Chinese SimplifiedChinese TraditionalCzechDanishDutchEnglish (US)FinnishFrenchGermanGreekHungarianIndonesian

ItalianJapaneseKoreanLatvianLithuanianMalayPolishPortuguese (Portugal)Portuguese (Brazil)RussianSpanish (Spain)Swedish

New in Windows Phone 8 50 Languages

AlbanianArabicAzerbaijani (Latin)BelarusianBulgarianCatalanCroatianEnglish (UK)EstonianFilipinoHebrewHindiKazakh

MacedonianNorwegian (Bokmål)PersianRomanianSerbian (Latin)SlovakSlovenianSpanish (Mexico)ThaiTurkishUkrainianUzbek (Latin)Vietnamese

26 new languages were added with Windows Phone 8

More OpportunityMore MarketsMore MonetizationMore Efficient Dev CenterMore Discoverability*Fast Start*

The Monetization Equation

More BusinessModels

You create amazing apps

We simplify the monetization

MoreMarketReach

xMore

PaymentMethods

x =Higher

MonetizationPer User

New: In-App Purchase

GROWS YOUR

USER BASE

8.0

ENABLES IN-APP UPSELL

TO PAID

ENCOURAGESREPEAT

MONETIZATION

Deliver additional paid value to subset of paying

customersSell premium features and

content over and over

Make app freeMaximize Customer

Reach

The best business model for most apps

Available for Windows Phone 8 appsUse all available payment instruments

Hardened API

The IAP opportunity: 4X revenue growth

8.0

93%of top grossing apps use in-app

purchase – BusinessInsider

38%of app revenue will

be from in-app purchase by 2016

– Juniper

4xIn-App revenue

growth from 2011($1B)

>2016($4B) -eMarketer

In-app purchase fastest growing revenue source, displacing paid purchases

In-app purchase: a complete experience

Hand’s OnA test of dexterity

Coffee CupCustom hot beverages

Global ReachA strategy exercise

8.0

DurablesBuy once & own forever.

E.g. New game levels, add-on maps, game items, eBooks, music, etc. . .

ConsumablesUse once & buy over and over

E.g. Game currency, gold coins, ammunition, game credits, time services, etc. . .

1.Create In-App Item in Dev Center2.Integrate In-App Item into app3.Host Content (Azure, remote or in the app)

4.Choose Countries and Set Pricing5.Manage, Monitor and Respond

In-app purchase: simple to add & manage

8.0

We take care of payment and payout

Package with in-app purchase

Divide and

monetize

Options to retrofit IAP into your existing apps

8.0

ReimagineYourApp

Separate base functionality (free) from

premium (paid)

Keep 7.5 as is and add new capabilities in Windows Phone 8 version (high res

graphics, more levels, …)

Enable new models only available through in-

app: recurring purchases (game currency, tokens,

eBooks)

Tune when and how you show the in-app purchase to maximize conversion

Mobile ads help monetize appsImportant source of revenue

7.5 & 8.0

Easy to add the Microsoft Ad Control

Easy to add (multiple) Third Party Controls

• Half of all app revenue in Windows Phone Store today comes from advertising

• Has industry leading eCPM• Integrated Windows Phone

and Windows 8 ad reporting

• Not available in all countries• Recommended use in countries where the Microsoft Ad Control is not available

New Global Payment InstrumentsNew ways for users to pay

8.0

Microsoft gift card

Redeemable at Bing Rewards (today)http://www.bing.com/rewards/redeem/all

38 countriesPresented as option where available

Mobile operator billing = Simple process

Included in the WalletDefault Payment Instrument if availablePIN-Protected purchases (optional)Automatic backend process, no work required by Developers

Up-to-date MO list: http://msdn.microsoft.com/en-us/library/windowsphone/help/jj215902(v=vs.105).aspx

7.5 & 8.0

DazzlerBy Great Games, Inc.

The Phone Company

MO billing drives 2x purchasesEnabling MO billing increased paid downloads 2x

75% of WP users choose MO billing over Credit Card

Revenue per user is 2x higher where MO billing is available

Payment Type Mobile Operator Billing Credit Card

7.5 & 8.0

Mobile Operator 1

-21 -20 -19 -18 -17 -16 -15 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Mobile Operator 2

-27 -26 -25 -24 -23 -22 -21 -20 -19 -18 -17 -16 -15 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

A Better Monetization Equation

Business Model Market Reachx Payment Methodsx =

HigherMonetization

Per User

Download to Own

Try before you Buy

AdvertisingIn App

Purchase

63 ->191 markets

Credit CardDebit Card

Phone BillingMicrosoft Gift

CardPayPal

x x =More ModelsMore Places

More Ways to Pay

4x the revenue 3x the reach 2x the payment coverage

More OpportunityMore MarketsMore MonetizationMore Efficient Dev CenterMore Discoverability*Fast Start*

Welcome to the updated Dev Center7.5 & 8.0

New experienceNew dashboard

7.5 & 8.0

• New Name

• Clean interface

• Integrated with MSDN

• Quick access to SDK, forums, samples

New submissionprocess

New reporting

Easier to register and get paid7.5 & 8.0

• Online Tax forms

• 191 markets

• Integrated with pubCenter

• PayPal registration & payout*

• Shared account info with Windows 8 account

* Only available in some countries

Easier to submit & set price per market

7.5 & 8.0

• Option to publish to all markets except ones with additional requirements

• Thousands of beta testers for your app

• Optimize pricing in each market (free or paid by price point by market)

XAP: only one needed, many possible

7.5 & 8.0

• You need only one XAP

• You can have multiple XAPs linked to each App: • 7.1 and 8.0 • 8.0: high and low

res

• Users get the right XAP for the best experience on their phone

One AppOS 7.1 OS 8.0

XAP-3(high resscreen)

XAP-1 XAP-2(low resscreen)

In App Products

Improved reportingPoint-in-time

and low latency reporting

All reviews in a single place

Translated to your language!

Analyze Free, Trial, Beta and Paid

downloads

7.5 & 8.0

More OpportunityMore MarketsMore MonetizationMore Efficient Dev CenterMore Discoverability*Fast Start*

Solving DiscoverabilityWhat Developers Told Us• Help users find my app in more

and smarter lists• I’ve invested in Live Tiles and

Trial but its too hard to get noticed for that

• My app doesn’t show up in Search even when it should

• How can users who might like my app, but haven’t heard of it, find it?

• If my app is more niche, how does it stand out in a catalog of 100,000+

What Users Told Us• Make it easy for me to find

popular and highly rated free apps & games

• Help me find apps with a live tile or which have a free trial available

• Improve app search so I can more easily find what I’m looking for

• Show me other apps I might like based on what I (and my friends) like

• Help me find really good groups of apps based on genre, my location or seasonUsers and Developers both want the same things for Discoverability

Windows Phone 8 Store delivers.

The new store experience8.0

The new store experience8.0

demo

New ways of finding apps8 in SpotlightQuick Links

Collections For You

Smart ListsHero App

8.0

Quick Links help find ‘apps on the move’

Simple way to browser, sort and find apps by frequently used views

• Top Free• New +

Trending• Top Paid

• Best Rated• Collections• Apps for You

8.0

Collections: Find apps grouped by affinityExpertly selected high quality

apps

Seasonal InterestLocal

8.0

Spotlight drives 10x downloadsExpertly selected per market: match consumers with great apps

8.0

For You: Bing™ personalized recommendationsHelps you find apps you might

like*Constantly learns based on your downloads and app usageUses a lot of very sophisticated inputs: usage, crashes, trends and patterns by users that download similar appsReally smart: understands apps you own, data from Facebook friends, best local options

8.0

* Users can opt in or opt out of providing this information to Microsoft

Search and Smart Lists presents Bing™ powered results

Factors more elements:• Downloads, and download

‘trend’• App usage• Uninstalls• Ratings and review count• Crashes• Pin to startElements that lower ranking:Crashes, Uninstalls, Negative Ratings

7.5 & 8.0

More useful Apps details

See more info about each app• If apps have Trial• If apps have live tiles

Report problems with the app• Inappropriate content• Trademark violations• Incorrect parental rating

8.0

Last update

Smarter discovery also available on the web

Additional app discovery opportunities

• Collections (new)• Smart lists (new)• Buy and download

directly to the phone• Reinstall apps

http://www.windowsphone.com/store

More OpportunityMore MarketsMore MonetizationMore Efficient Dev CenterMore Discoverability*Fast Start*

Windows Phone Store download badges• Official Store branding

• Help you market your Windows Phone app, and help your customers find it!

• Download and use them today! http://bit.ly/Tg7NbY

Add Live Tiles and double width Tiles7.8 and 8.0

Audible CNN

ESPN PayPal

Weather Channel UrbanSpoon

Groupon

Make your app shine

Keep users informed

For 8 and soon for 7.8

256 MB

Support Low Memory

512 MB

512 MB

1 GB

or more

Windows Phone 7

Low memory = 256MB

Windows Phone 8Low memory = 512MB

or more…

New: Upped OTA Download Limit to 50MB

http://aka.ms/wpdevecosystem

Tools & libraries

UI controls

Web API

Native gaming

on board with Windows Phone 8

Leverage new Developer Partner Offers

Add in-app purchase

Add high resolution graphics

Cross submit existing app: 191 markets

8 for Windows Phone 8

Ensure app runs in low memory

Use the Badge Program

Download the Windows Phone 8 SDK

Add Live & Double-Width TilesOptimize your app price per market

Individual Developer Registration Fee

$8 for 8 days

Ends November 7

The difference between $99 and $8 will be refunded back to you within 30-60 days

High Resolution

Web

191 Markets In-App

PurchaseNext Gen

Platform

Online Tax Forms

Picks For You

Per Market Pricing

Enhanced Dev Center

BingSearch

Spotlight

MO Billin

g

Colle

ctio

ns

Quick Links

Live Tiles

WP8 SDK

Wallet

Ads

120K

Q&A

© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.