Gregg Hano, CEO Mag+ · September 10-11, 2013 · Stockholm

Profitable Digital Publishing Developing Your App Strategy

Thursday, September 26, 13

Mobile devices are the future of computing.

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Tomorrow’s Consumer

By the end of 2013 there will be 5.9 billion mobile devices in use globally.

Source CSS Insights, IB Times June, 2013

By 2017 there will be more mobile devices in use than people on the planet!

Thursday, September 26, 13

Tomorrow’s Consumer

By the end of 2013 there will be 5.9 billion mobile devices in use

Source CSS Insights, IB Times June, 2013

By 2017 there will be more mobile devices in use than people on the planet!

Global shipments of smart mobile devices (phones & tablets) will

increase 2.5 times between 2012 and 2017

Thursday, September 26, 13

Gregg Hano, CEO Mag+

• Advocate of magazines on the iPad

• SVP of Bonnier Corporate Sales & Technology Group

• Publisher of Popular Science

• Member of The Association of Magazine Media’s Tablet Metrics Task Force

Profitable Digital Publishing

Thursday, September 26, 13

Mag+ is the most flexible and efficient digital publishing platform in the world. We enable publishers, businesses and content owners of all types to design stunning digital content

and distribute it to apps on tablets and smartphones worldwide.

What is Mag+?

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How It Works

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History of Mag+

2009• Started four months of research & testing

2010• Launch Popular Science+

2011• Became independent company, active

licensing platform

2013• 1,500+ Apps w/offices in New York,

Stockholm and San Diego • More than 700 clients in 80+ countries• More than 9.5 million app installs• 600,000+ users have used a Mag+ app

in the last 30 days

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Today: 1,500+ Apps

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Why do you need a digital publishing strategy?

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Digital Publishing is Your Future

• It’s Business Progressive: Companies staying ahead of the technology curve are using mobile apps.

• It’s Engaging: The infinite canvas has a host of new creative opportunities.

• It’s Cost Effective: Paper manufacturing and distribution costs add up quickly.

• It’s Easy: Anyone able to use InDesign can create an engaging app.

• It’s Measurable: App publishing platforms make it easy to deploy analytics.

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How are people

consuming content today?

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Content Consumption

Adults spend more time on mobile media than they do on

newspapers and magazines combined.

*Nielsen 2013

36% of adults read news or current events on their mobile phone at least twice a week.

*Statistic Brain 2013

57% of people say that the tablet is their favorite

place to consume content.

*Mequoda Tablet Study 2013

91% of adults have their mobile phone

within arms reach 24/7.*Neilsen 2013

33 Million consumer-owned tablets in

Western Europe in 2012*Forrester Research

The Apple iPad is the dominant tablet in Western Europe - 83% of Europeans that

have an iPhone AND a tablet, selected an iPad tablet.

*Forrester Research 2013

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What is the market opportunity?

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A Growing Audience

Source: Apple, Mashable 2013

Cumulative number of apps downloaded from the Apple App Store from June 2008 to January 2013 (in billions)

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A Growing Audience

Source: Apple, Mashable 2013

Cumulative number of apps downloaded from the Apple App Store from June 2008 to January 2013 (in billions)

Nearly 20 Billion of these app downloads occurred in 2012 alone.

*Apple Press Info 2013

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Customers are downloading more than 800 apps per second at a rate of over two billion apps per month in the App Store.

*Apple Press Info, May 2013

A Growing Audience

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A Growing Audience

Source: Apple, Techcrunch 2013

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A Growing Audience

US Digital Audiences(monthly active users as of February 2013)

Source:: Flurry, Comsccore Media Metrix Report 2013

224 MillionApp Users

221 Million Laptop & Desktop Users

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An Engaged Audience

Flurry: April 2013

80% of a mobile users time is spent in Apps rather than mobile web.

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App developers have been paid over $11 billion for their sales in the App Store. Half of this was earned in the last four quarters.

*ASYMCO, August 2013

Money Around Apps

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App developers have been paid over $11 billion for their sales in the App Store. Half of this was earned in the last four quarters.

*ASYMCO, August 2013

Money Around Apps

App developers are currently being paid at the rate of $1 billion

per quarter.*ASYMCO, August 2013

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App Store has 575 million credit cards on file.

*Apple Intelligence, 9to5mac.com, June 2013

Money Around Apps

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Your Competition

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Your Competition

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Your Competition

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Your Competition

Other apps in the space set a very high standard. To compete

you MUST customize your content for the device.

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How do you do it?

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Customized Content

Comment From User chocojoe on Sept 18. 2012; Customer Ratings Dated: 09/20/12

Delivering what your audience wants

• Fully enhanced apps consistently rate higher in app stores

• Engagement levels increase when interactive design is integrated correctly

• Each device has both a form and functionality that allows it to do a specific job in a users life. Build with this in mind.

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Customized Content for Specific Devices British Journal of Photography iPad App

• 16,000 subscribers

• 200,000+ downloads (7,846 print readers)

• Phenomenal growth overseas with 2,000 downloads a day in the US alone

• Average session length is 5 minutes, but over 10,000 sessions lasted longer than 10 minutes

• Live news function doubled the number of iPad users to BJP - online

• Won ‘Best Use of Mobile’ award at British Media Awards, April 2012

• Nominated for ‘App of the Year’ and ‘Best Digital Magazine of the Year’ for 2013 PPA Digital Publishing Awards

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•

WeSC - WeAreTheSuperlative Conspiracy

• Swedish street fashion brand that has extended into the digital world to create a richer experience for their clothing line

• Allows WeSC to be more interactive with their customers

• WeSC clothes are showcased and consumers are able to directly purchase products from this app.

• The app is made to inspire their core audience to purchase their products and share the creativity and individuality which is what the brand is all about.

Customized Content for Specific Devices

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There is money to be made

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Revenue Streams

There are many ways to make money with digital publishing

• Single Issues

• Subscriptions

• Advertising

• Sponsorship

• In-App Purchasing

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Revenue Opportunities

Source: Strategy Analytics, App Revenue Forecast, November 2012

Global App Revenue Forecast 2008 - 2017 ($M)

Tablets Phones

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Revenue Opportunities

Source: Mequoda 2013 Tablet Study

39% of tablet users spent $100+ on their tablet in the last 12 months (apps, books, magazines, videos or subscriptions)

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Revenue Opportunities

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Source: eMarketer, Dec 2012

Revenue Opportunities

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In-app purchases are a powerful money-making mechanism. In January 2012, 53% of iPhone App Store revenue in the U.S. was attributed to in-app purchases. That number has now climbed to 76%.

*TechCrunch, April 2013

Revenue Opportunities

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Revenue Opportunities

*Source TechCrunch, April 2013 Thursday, September 26, 13

Revenue Opportunities

iPhone App Store revenue percentage attributed to in-app purchases by country.

• U.S.A 76%

• Germany 61%

• Hong Kong over 90%

• Japan over 90%

*Source TechCrunch, April 2013

Thursday, September 26, 13

Publishing Reinvented

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Think Beyond the Magazine

This is a new channel, not just a replacement for print.

Thursday, September 26, 13

Think Beyond the Magazine

Be creative with issues.

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Think Beyond the Magazine

Remember what you do well: delivering curated content to focused audiences.

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New York Magazine

• Blending weekly magazine content with daily website content ‘window shade’

• Keeps users coming back on a daily basis

• Launched April, 1 2013

Think Beyond the Magazine

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The Atlantic Magazine

The Atlantic Weekly Digital Editions

The Atlantic Web Properties

The Atlantic Daily Photo Blog - In Focus

Theatlantic.com

The Atlantic Wire

The Atlantic Quartz

The Atlantic Cities

Think Beyond the Magazine

Thursday, September 26, 13

Source: PopularScience+

August Home Publishing

• ‘Packet Publishing’ approach

• Demizine - short interactive magazine published every two weeks (replacing a print publication released every two months)

• eNotes - free decorating tips, delivered weekly, offered for free before user must subscribe

• eBooks - series of theme-based eBooks sold as singles

Think Beyond the Magazine

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Think Beyond the MagazineCommunity Membership Model

• Offer multiple ways for consumers to connect with your brand and charge them

• What if it were an “issue”?

• Automatic delivery BEFORE you could see it on TV

• Exclusive Sponsor

• Include: slideshows of behind-the-scene content, interviews, plot summaries of previous episodes, and the actual show!

• It’s about bundles of content

Thursday, September 26, 13

Your Incubator Moment

LEARN

FAIL/SUCCEED(just fail quickly)

TEST

Thursday, September 26, 13

Thank you!magplus.com

Profitable Digital Publishing Developing Your App Strategy

Thursday, September 26, 13