Innovating in the mobile market - Andrew Bud, iProov
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Transcript of Innovating in the mobile market - Andrew Bud, iProov
Innovating in Mobile
Lessons learned from a decade of mobile content
Andrew BudGlobal Chair, MEF
Founder & CEO iProov
Tel Aviv, 10th June 2013
A Dozen Years of Mobile Content
• 1997 First ringtone services in Finland
• 2000: Yourmobile.com creates global ringtone demand• 2001: First premium rate services in Sweden• 2003: Ringtone business explodes in Europe• 2004: $12bn industry; US off-portal begins, Crazy Frog !• 2005: Crazy Frog scandals and No 1 hit• 2006: First Class Action suit in US• 2007: $35bn industry; iPhone launch• 2008: Apple App Store Launch• 2009: Android Market Launch• 2010: Angry Birds phenomenon
What did we learn?
• Consumers define markets
• Scalable Iteration discover markets
• Simplicity drives markets
• Greed destroys markets
Consumers Define Markets
Cute intersection of
two great industries
Entertainment ($500bn)
Mobile ($1000bn)How the suppliers saw it…….
Consumers Define Markets
How the consumers saw it…….
$35 billion
Consumers Define Markets
WHY DID YOU PURCHASE ITEMS ON YOUR MOBILE PHONE?
The market is changing….
MEF Global Consumer Survey 2013: 9,500 consumers in 10 countries
Scalable Iteration Discovers Markets
Consumer response
$$$$
48 hour response to experiment results
Content, pricing, promotion, design
Scalable iteration created an industry
Simplicity Drives Markets
• Six clicks from desire to purchase….
• …enabled by one-click billing
• Make it simple, make it easy…
• ….and charge for it
Italian Mobile Content Market
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2001 2002 2003 2004 2005 2006 2007
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Source:Politecnico di MilanoOsservatorio Mobile Content & Internet
…but not too simple!
Comfortable transaction complexity
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Transaction value £$€
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Too simple
Too complicated
Ringtone subscriptionsKids' In-app purchases
Mobile content before operator billing
Greed Destroys Markets
• This is what happened next….
• Some people made lots of money very fast even after the market declined
• Destruction of consumer confidence was swift and fatal
• UK, Italy, US, Indonesia, Brazil – retribution followed complicity
• Is it about to happen again?
Italian Mobile Content Market
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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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m)
Subscription business model begins
Bad practices emerge
MEF Global Privacy ReportConsumer Trust & Confidence is a Key Issue
MEF Global Privacy ReportConsumer Trust & Confidence is a Key Issue
33%
MEF Global Privacy ReportConsumer Trust & Confidence is a Key Issue
A near-miss:this time….
…but it’s not going away
$ 00,000,000s
Join us in solving this!
Lessons from Mobile Content
Winners win because they:
• Meet consumers’ desires• Make it super simple to transact• Scale by charging and promoting• Adapt and innovate fast• Don’t cheat the customers