Europe’s Tech Hub #1: Mobile Monetization made in Germany - Julia Oentrich, Germany Trade & Invest
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Transcript of Europe’s Tech Hub #1: Mobile Monetization made in Germany - Julia Oentrich, Germany Trade & Invest
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Europe’s Tech Hub #1:
Mobile Monetization made in Germany
Julia Oentrich
www.gtai.com
I. Germany Trade and Invest
II. Germany’s Mobile Ecosystem
III. In-App Purchase Behavior in Germany
IV. Contact
Agenda
One Face to the Customer
Germany Trade & Invest serves as a consultant to the investing company
with German expertise, supported by the federal states
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coordination
Foreign Company
www.gtai.com
I. Germany Trade and Invest
II. Germany’s Mobile Ecosystem
III. In-App Purchase Behavior in Germany
IV. Contact
Agenda
Mobile Broadband Networks in Germany
Germany’s LTE Networks are essential for the future growth of the mobile
ecosystem
Source: http://www.lte-anbieter.info/verfuegbarkeit/lte-verfuegbarkeit-testen.php
Covered area 65% 60% 5-10%
Number of Cities ~ 180 ~ 100 ~ 12
Reach in million people
>51 >45 <1
Availability of LTE by Provider
The German Mobile Economy at a Glance
Turnover with mobile apps in
Germany (in EUR million)
Revenues with mobile apps are growing enormously in Germany
Source: MS&C
2010 2013
100
523
12
176
App sales Revenues from ads
112
700
+625 %
Turnover with mobile apps is expected
to have reached 700 million Euro (~ 3.4
bn NIS) in 2013 Most revenues come from direct app
sales followed by income generated by
ads
Mobile Operating Systems in Germany
Market share of mobile OS in
Germany (in percent; 2012)
Android is by far the most popular mobile OS in Germany
Source: Kantar Worldpanel ComTech 2013
Android is by far the most popular OS
for mobile devices in Germany iOS comes second – with a big distance Windows Phone gained market share Blackberry is not expected to recover Alternative OS such as Firefox OS, Bada
and Tizen currently only play a niche
role
Android
iOS
Windows Phone
Blackberry
Other
78%
12%
3%
2%
6%
78%
10%
9%
1%
2%
Summer 2013 Summer 2012
-0.2%
-1.5%
+6%
-3.5%
-0.7%
Mobile Phone Usage in Germany
What web-based functions do you
use your mobile phone for?
Apps are gaining increasing importance
Source: MS&C
Email is still gaining relevance Visiting websites is still more popular
than using apps Trend from paid apps to free apps Free apps are mostly freemium apps VoiP services are rather a niche market
Websites
Free Apps
Paid Apps
VoiP
18.7
22
17.9
11.1
7
23.3
28.3
25.2
9.1
6.6
23.9
30
26.7
8.7
6.2
2013 Q1 2012 Q1 2011 Q1
Motivations to download apps in Germany
What motivates you to download an
app? (in percent)
Usability and added value are key for downloading apps
Source: MS&C ; multiple answers possible
The functionality of an app is the most
important motivation for downloading
apps Pricing is important but only comes
third Recommendations of peers and media
are relevant but less crucial than
functional aspects
Usability
Added Value
Price
Technical specs
Ratings in the app store
Up-to-dateness
Recommendations
Design
Fun factor
Rating on tech websites
Rating in communities
Other
91
88.2
85.3
78.3
71.6
68.3
65.3
58.4
54.1
52.3
39
24.9
www.gtai.com
Germany is home to many mobile companies – Want to join them?
Mobile Companies in Germany
Mobile tech companies based in Germany
www.gtai.com
I. Germany Trade and Invest
II. Germany’s Mobile Ecosystem
III. In-App Purchase Behavior in Germany
IV. Contact
Agenda
www.gtai.com
The market for virtual items is
growing steadily
In-game transactions are an
effective way to monetize less
committed players
It is expected that item-selling will
expand its relevance beyond F2P
games in order to expand
monetization possibilities also for
premium games
The market for virtual goods is growing continuously
Source: PWC 2013
In-App Purchases: The Example of Games I
12
www.gtai.com
Revenues with in-game item-selling in Germany (in million Euro)
2011 2012 2013 2014 2015 2016 2017
251 256271
315
353
387
415
www.gtai.com
Extending the game, for example
by additional levels, is the biggest
motivator
A higher fun factor is also a reason
for gamers to buy additional items
Designing an own avatar or
making the game play faster is
less relevant
New game experiences and more fun are the motivations for German
gamers to purchase virtual goods
Source: PWC 2013
In-App Purchases: The Example of Games II
13
www.gtai.com
What factors motivate you to buy virtual items?
Additional levels +++
Additional ressources ++
More fun +++
Faster game play ++
Individual avatar design ++
Advertisement-free version ++
Additional features to be able to continue the game
+++
+++ 30-40% of gamers
++ 20-30% of gamers
+ 10-20% of gamers
www.gtai.com
Almost 55% of gamers in Germany
are skeptical about games
financed through in-game item-
selling
Customer friendly payment
solution are expected to bring
higher acceptance of virtual goods
Social media is important for
selling virtual goods in games
Monetization stays a challenge but social aspects and sound payment
solutions can make a difference
Source: PWC 2013
In-App Purchases: The Example of Games III
14
www.gtai.com
I post the purchase of virtual goods in my social networks
When I see on social networks that my friends bought a virtual good, I am inclined to buy it as well
I would spend more on virtual goods if the payment systems were easier and safer
I would buy virtual goods in order to pursue a common goal with friends in a game
I think the prices for virtual goods are usually fair
I already made use of a virtual currency
I consider games financed through in-game item-selling unfair
13.2%
13.9%
20.8%
22.6%
23.9%
25.8%
54.6%
In-game item-selling in Germany: Experiences and opinions
www.gtai.com
40% of all young gamers spend
money on virtual goods at least
occasionally
Young gamers are more willing to
purchase virtual goods
A big share of gamers is not yet
considering spend money on
virtual goods: Challenge to
monetize them!
For younger gamers at least occasional spending on virtual goods are
common
Source: PWC 2013
In-App Purchases: The Example of Games IV
15
www.gtai.com
Money spent on virtual goods in Germany (in percent)
18-30 yrs. old
31-45 yrs. old
46-65 yrs. old
7 746
94
9 74
18 17
105
9 8
5551
70>5 euro/month
1-5 Euro/month
<1 Euro/month
occasional purchases
no purchase but will-ingness to pay
no purchases, no willingness to pay
www.gtai.com
If you would like to grow your tech business internationally:
Come to Germany!
If you want to be part of a great digital ecosystem:
Come to Germany!
If you are looking for serious and reliable business partners:
Come to Germany!
If you need support with coming to Germany:
Contact me!
To make a long story short:
Conclusions
16
www.gtai.com
Germany offers sound business opportunities for Israeli tech companies in the field of mobile products and services
www.gtai.com
I. Germany Trade and Invest
II. Germany’s Mobile Ecosystem
III. In-App Purchase Behavior in Germany
IV. Contact
Agenda
Thank you for your attention!
Julia OentrichManager ICT
Germany Trade and Invest GmbHFriedrichstraße 60
10117 Berlin, Germany
Tel. +49 30 200 099 -306Fax +49 30 200 099 [email protected]
www.gtai.com/digital-economy
1.© 2013 Germany Trade & Invest
2.
3.All information provided by Germany Trade & Invest has been put together with the utmost care. However we assume no liability for the accuracy of the information provided.
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