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

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

• 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
Store
Apple App Store
2009
Revenue Share
$769 92.8%
2010
Revenue
$1,782
Share
82.7%
Growth
131.9%
BlackBerry App World
Noka Ovi Store
$36
$13
4.3%
1.5%
$165
$105
7.7%
4.9%
360.3%
719.4%
Google Android Market
Total
$11
$828
1.3%
100%
$102
$2,155
4.7%
100%
861.5%
160.2% 3

• 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

• 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
1 www.isuppli.com
5

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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-inlaw than their cell phone.” - Leger Marketing
16