1. Prof Janet Wesson and Bradley van Tonder Department of Computing Sciences 16 March 2011

2. Mobile applications Location-Based Services Augmented Reality Mobile Web Apps The Mobile Cloud Near-Field Communication Monetisation Strategies Looking Forward 2

3. Global mobile app industry worth approximately $2.2 billion USD in 2010. 8 billion mobile apps were downloaded in 2010: 5.6 billion for iPhone/iPad Competitor app stores’ market shares dramatically increasing Popular app types vary depending on platform: E.g. Games represent 52% of iPhone market, but only 29% on Blackberry 3 Store 20092010 Growth RevenueShareRevenueShare Apple App Store$76992.8%$1,78282.7%131.9% BlackBerry App World$364.3%$1657.7%360.3% Noka Ovi Store$131.5%$1054.9%719.4% Google Android Market$111.3%$1024.7%861.5% Total$828100%$2,155100%160.2%

4. There are more mobile phones than people in South Africa. In South Africa, 57% of mobile web users only access the Internet on their phones. South Africa still responsible for a tiny fraction of mobile app buyers and developers. 4

5. 79.9% of phones equipped with GPS by end of 2011 1. Time is just as important as location: Streaming of real time content improves on static content E.g. Current traffic conditions Location-based search: Apps, tweets, multimedia and people near my current location Personalisation: Important to avoid information overload Other applications: Social networking Gaming 5 1 www.isuppli.com

6. Overlay virtual content on the real world. Enabled by improvements in mobile sensor technology: GPS positioning Digital compasses Accelerometers and gyroscopes Application examples: POIs, restaurant reviews, advertising Augmented reality platforms allow for customisation and extension: Wikitude Layar 6

7. Fragmentation across platforms: iPhone Android Windows Phone Blackberry Fragmentation within platforms: Handset maker modifications Network operator modifications Different firmware versions (e.g. Android 2.1, 2.2, 2.3…) Different device hardware capabilities The result: a testing and development nightmare! Web apps represent a partial solution. 7

8. Native apps vs. mobile apps: Does your application require access to native data, hardware (e.g. sensors or camera) or multitasking? What monetisation strategy are you using? The Trojan Horse: App is little more than a wrapper for mobile website No need to download updates Addresses fragmentation HTML 5: Allows for improved integration of multimedia content Driving improved mobile web applications 8

9. Constant Internet connectivity No more static content Data storage in the cloud Cross-platform solution Applications: Email Instant messaging Multimedia Document storage and sharing Maps Problematic in South Africa where data costs are still high 9

10. Very short-range wireless technology (< 4cm). Initiator powers a passive target NFC-equipped phones already shipping: Samsung Nexus S Possibly iPhone 5 Applications: Peer to peer: Setup Bluetooth or Wi-Fi connection Payment and ticketing: Payments via debit/credit card Mobile ticketing (public transport, sports matches, concerts) 10

11. More than one way to make money from mobile apps Direct methods: App stores – pay to download Credit card Operator billing – deducts from airtime balance/debits account In app purchases Advertising Free demo – pay to upgrade Subscription model (suited to digital content) Indirect methods: Brand extension Service provision (e.g. eBay app) 11

12. Currently many apps use simple banner ads in free versions: Very low click-through rates Mobile advertising likely to become increasingly intrusive Increasing use of multimedia to attract attention Real-time bid advertising: Mining of user activity data Algorithms used to automatically target specific types of customers Advertising therefore (in theory) reaches the target audience 12

13. Research shows that most downloaded apps are deleted the same day: Many more are only used the first few days Improving user/customer retention: Push notifications – apps are opened 228% more Releasing updated versions 13

14. 3D Mobile Displays (without glasses) App store changes: Operator/handset manufacturer app stores 3 rd party app stores (e.g. Amazon Android app store) Cross-platform app stores (e.g. GetJar.com) Improvements in the mobile web: Greater interactivity Blurring of lines between native apps and web apps Mobile money transfer Mobile banking Security 14

15. Global mobile app industry predicted to be worth $25 billion USD in 2014. Android expected to challenge Apple app market dominance in next few years. South African smartphone market predicted to grow: Enabling greater demand for mobile apps Greater need for locally relevant apps 15

16. Email: Janet.wesson@nmmu.ac.za Bradley.vantonder@nmmu.ac.za Thank you for your attention. “ 1 in 10 [survey respondents] said they’d rather lose their mother-in- law than their cell phone.” - Leger Marketing 16