The App Economy in Thailand���Echelon 2013 Thailand Satellite

Hi Everyone!

I’m Moo from OOKBEE

+ Ookbee : the Latest Numbers

Thailand’s #1 e-book store ���

90% market share

TOP10 Grossing Apps���

on Thai App Store���

everyday���for the past ���

600 days���

3,273,547 users 4.23M downloads

10,820 new users* every day

* avg last 30 days

Ookbee had delivered over

10 Million Books

Content Team

Developers

• Launched Jan 2011 / The team has grown from 5 to over 40 staff

• We are at Month 28 and have been profitable since month 7

• Sep 2012 Ookbee raised US$2 million in funding from Shin Corporation

• We made $400k in 2011 and around $3M in 2012

• We are now operating in Thailand, Vietnam and Malaysia with 3 more countries this year.

Ookbee Team�

App Store Publishing

Estimated Number of Apps

iPhone

iPad Amazon

WP

Play

BlackBerry

As of Mar 2013

800k on iOS

750k on Play

200k on WP

100k on Win8

Key trends across stores, countries and categories

iOS App Store maintained its strong lead in monetization, earning about 2.6x the app revenue of Google Play.

Q1 2013 , Google Play has achieved higher growth rates than the iOS App Store for both downloads and revenues.

Local..Local..Local..

10% local apps generate more than 50% Revenue

The overlap proportion of the top applications of the United States with other English speaking countries (Canada, Australia and the UK) is significantly higher than it is with non-English speaking countries.

My Guess is Thailand is

somewhere here! maybe 15%

+ Thailand: Monetization Case Study

Sep 2012: App Annie

Thai UI

Eng UI

Launching an App in ���South-east Asia?���

It’s now or never!

Top Countries – Downloads and Revenues

Thailand is among the global top 15

Mobile apps markets

the only country in SEA

only after China, Japan and S. Korea in Asia

Based on App Annie Worldwide Total Category, Q3 2012

Fastest Revenue Growth Countries - All Categories���(Jan-Sep 12)

Growth is higher since the base is smaller.....���

Here we are at #3!!

Hooray!!

Here too! #9

Based on App Annie, Top 25 Grossing countries of 2012 Sep, comparing Jan-Sep Growth rate

Fastest Revenue Growth countries for Games

Based on App Annie, Game Category, comparing Jan-June 12 Growth rate

Fastest Revenue Growth in the

world

#2 on Google Play

Fastest Download Growth Countries for Games

Based on App Annie, Game Category, comparing Jan-June 12 Growth rate

For Both iOS and ���Google Play, ���4 out of 5 ���

Fastest ���Revenue Growth ���

Countries ���are in SEA

Thai App Store VS ���The World

•  in the US, Based on numbers given by Distimo, about 80,000 will get you into the top 10. Huge numbers.

•  in Japan, it’s 20,000 a day to be in Top 10 and 60,000 a day to be at #1 Top Free Charts

•  in Thailand, from my personal experience, it’s only take 10,000 a day to be #1 in Top Free already

+ Case Study: Ookbee User and Application Download

"* It took Kobo 2 years to reach 5M users (Globally) before Rakuten acquired it for $315 Million in Dec 2011 ** Ookbee 2.9M users in 2 years is only in Thailand and SEA (Locally) / Our penetration rate is way higher

The 1st million took 13 months The 2nd million took 6 months

The 3rd million took less than 5 months

The 4rd million will take less than ���4 months

Successful Publishing

it will take Ookbee 4 Months for our next 1 Million

Everybody remembers the success stories of applications that gathered millions of users within a couple of days. Draw Something did it in nine days. However, with the right strategy it is possible to gain one million users much faster. Naver, one of the most successful Asian publishers, launched five applications at the end of November, all of which quickly became the most popular applications in many Asian countries. Line Pop, the most popular of those five, generated 1.75 million downloads within the first three days of its launch. Moreover, Line Pop also generated one million in estimated revenue within the first 12 days. (Line has over 80M users worldwide and over 10M users in Thailand)

Launching App in Thai Market My Personal Experience

Thai Market - Real Number���Let’s see what’s like when you launch an app

specifically for Thai market only

•  just another app in App Store

•  my Good App

•  my Very Good App

Just Another App

+ Ookbee App Eco

Out of 200K Apps, We are No.1-5 Top Grossing

for the past 500 Days!!���Beats Zinio and all

popular games! Angry Bird?

50+ of our 150+ apps on Top list!

Max around 500 downloads/day when launch..

then average around 50 per app per day

Total just around

36K download in 24 months

From almost 150 Apps, we have around 120 “Just-Another-App”

Just Another App in App Store :(

*Still 36K x 120 = 4.32 M, even if same user download several apps, I expected we have generated over a million users from

these just another apps

My Good App :) Max around 900 downloads/

day when launch..

then average around 120 per app per day

Total around

90K download in 24 months

From almost 150 Apps, we have around 25

“Good App”

My Very Good App :) Max around 6,000

downloads/day when launch..

then average around 2,000 per app per day

Total around

1.5M download in 24 months

From almost 150 Apps, we have 2

“Very Good App” *My Number was started back in 2011. I expect that it would be 15,000 per day easily first day when launched

now for a very good app.

Let’s make some money!���App Monetization

App Monetization

•  Paid App Simple game ex. Angry Bird?

•  In-App Purchase (ex. Social Game/Content - ex. HayDay, Poker) ��� * Ookbee is here

•  Apple/Google

•  Mobile

•  Other ( Ex. In our case Credit Card/ Cash via 7-11)

•  Advertisement (Simple Game/ TV-Radio Streaming/News)

In-App Purchase

+ Other Payment Channel Options in Thailand

Apple/Play Credit Card (online) or Cash at 7-11

Pay with Mobile phone bill (Pre-paid and Post-Paid)

Ad Revenue •  Free App Ad Revenue simulation.

•  Impression : 1,000,000

•  CTR 1%

•  CPC 4 THB

•  Ad revenue: 40,000 THB

•  How long to get 1M impression? A very good app maybe several days. Good App maybe a month. Just another app maybe 6-12 months.

Exactly! ���How Much Money Can I Make?

(in Thailand and the rest of the world)

How big is the whole market? All markets combined as of Nov 2012

15M USD a day for iOS 3.5M USD a day for Google Play

Japan + S.Korea + US > 70%

Game contribute > 90% in Japan And > 95% in S. Korea

US + Japan = 50% China is growing fast

and > 90% is from game

US Market

•  If you make it to the top 10 US Top Grossing Apps : around $70K ~ 2M THB per day

•  around $200K per day near the top

Slide from Samurai International Japan

Japanese Market Game Publishers like DeNA and GREE each have over a hundred of apps on each

store (many on the top list)

Game publishers are the most effective monetizers. Not only in Japan but throughout the world. It’ll be no surprise to industry insiders that 9 of the top 10 publishers by monthly revenues on iOS and Google Play are game publishers. In fact, the only exceptions to that rule are Apple on iOS and NAVER on Google Play (Maker of popular social networking app LINE).

In terms of revenue of ���Top Grossing App:

As of Jan 2013: iOS in-app Purchase

Top 1st -5th apps “each” gets 150K-300K THB per day. (5-10KUSD)

(We have 2 on the list) ���

The number are growing from ���75K - 150K per day same period last year.

How do we know? Been there done that..still there. ���

From my source, the number are almost the same for both iPad/iPhone in Thailand

Thai Market

Our two best apps at #1 and #4

The Supercell Story •  October 2012: Supercell pegged its daily revenues at

$500,000

•  The growth curve steepens: With daily revenue now at $2.4 million, representing growth of almost 400 percent.

•  They have already surpassed its 2012 revenues of $100 million, with $179 million in first quarter 2013.

•  Supercell is already at a run-rate of more than $800

million for 2013 and could reach $1 billion.

•  They only have 2 games on one platform (iOS).

And that’s what I think good companies are making on these things until:

Wanna try?��� I'm not an expert but here are

some tips from my personal experience.

Speed Wins in hiring, development, design, releases, biz dev

Be Agile and worry about scaling later

Outsource what you can Always Outsource Complexity

To all startups out there

“Respect Everyone, Fear No One”

And please don’t forget to

“Enjoy the Ride” Thank you