June 11, 2015 Strategy Analytics, Inc 1

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1 June 11, 2015 Strategy Analytics, Inc 1

2 STRATEGY ANALYTICS Market Research Firm with 30+ years in the industry Offices in Boston, London, Paris, Munich, Tokyo, Seoul & Beijing Core Philosophy: Research, Experts and Analytics Ranked in the top ten largest global industry analyst firms according to Outsell Research Ranked in the top five most influential analyst firms by Apollo Analyst Rankings Offers dedicated user experience, automotive and consumer insights practices AppOptix A proprietary platform used to monitor the activities of our Android and ios panelists. The opt-in panel provides a non-stop stream of user data providing compelling insights and unique segmentation possibilities. Launched 2014 Available on: Android and ios Currently launched in the US 2,000+ current panelists 1M+ data points collected daily AppTRAX Web scraped database which has collected data on the most popular ios, Android, Windows Phone, BlackBerry and Amazon apps Launched in 2010 Millions of data points collected and harmonized monthly 150+ countries for ios, 10 for Google Play June 11, 2015 Strategy Analytics, Inc 2

3 SPEAKER JOSH MARTIN Chief Researcher Application Strategies Group Strategy Background Industry Analyst with 10+ years of experience History of helping companies navigate emerging markets Launched the application research service at Strategy Analytics in 2010 Consolidated application research at Strategy Analytics in 2015 Copyright Strategy Analytics, Inc. 3

4 WHY TRAVEL APPS MATTER The app market is HUGE Create customer loyalty Competitive differentiator New revenue opportunity Reduce over the top threats Cost reduction Copyright Strategy Analytics, Inc. 4

5 CHOOSE YOUR OWN FUTURE 22 YOU RE THE STAR OF THE STORY! CHOOSE FROM 5 POSSIBLE ENDINGS! A-Z ON APPS

6 Image source: ROUNDED UP app 100 Billion Source: Application Strategies, Strategy Analytics apps downloaded in 2015 from App Store & Google Play

7 Image source: washingtontimes.com If sold in boxes they would be taller than 50 Empire State Buildings Source: Application Strategies, Strategy Analytics

8 Image source: thegrizzness.com 49 Updates Source: Application Strategies, Strategy Analytics By JetBlue, American, Delta, United & Southwest in last year

9 This market is not as it seems. BEWARE AND WARNING! You and Your Company are in charge of its success as you encounter the following danger(s): Disinterested Users Fragmented Markets Missing Millennials Consolidated Leaders Pesky Competitors There are dangers, choices, adventures and consequences. You must use all of your talents, marketing and data to succeed. But don t worry, the wrong decision(s) may only result in disaster and ruin!

10 Image source: fitnessrevolution.com 3% ios.6% Android.7% Sessions Source: Application Strategies for Travel, Strategy Analytics

11 Image source: Google 77%.6%.14% Source: Strategy Analytics, AppOptix

12 Image source: phonearena.com 50% Source: Google Android owners using an OS 3+ years old

13 Image source: NBC News 5%+ Millenials under-index* in usage of Airline & Hotel Apps Source: Application Strategies for Travel, Strategy Analytics

14 Image source: skymed.com < $50K Only over-index for OTA usage but under-index for Hotels & OTAs Source: Application Strategies for Travel, Strategy Analytics

15 Friend or Foe? You look out into a crowded marketplace. There is no end in sight to the competition. In the distance you see a popular caravan. You are faced with a choice. Do you seek to forge ahead alone or work with the group? Some potential partners include: TripAdvisor the most well penetrated travel app Expedia overindexes on usage relative to Priceline OpenTable strong correlation between app owners and travelers

16 Source: Application Strategies for Travel, Strategy Analytics 14%

17 Image source: pixshark.com Source: Application Strategies for Travel, Strategy Analytics 3X Hotel App 4.5x OTA App 5x Airline App

18 48% Relative Installed Base 60% Sessions Source: Application Strategies for Travel, Strategy Analytics

19 Image source: theboardr.com Source: Application Strategies for Travel, Strategy Analytics

20 The Big Payoff You have made wise decisions but this is a time for continued vigilance. You must convince people to use your app, become better customer or generate revenue through other means. How do you plan to proceed? Generate cost savings? Create new revenue streams? Get stickier customers?

21 Image source: WikiCommons Source: Application Strategies for Travel, Strategy Analytics

22 Image source: thedesignair.net 400% Increase in Chrome as a % of relative sessions Source: Application Strategies for Travel,

23 Image source: aubutfamily.com 67% Of airline app sessions take place within 1-week of going to the airport Source: Application Strategies for Travel, Strategy Analytics

24 The Future The future is upon you. Technology is evolving at an ever quickening pace but it is difficult to keep up. Companies want you to support glass-based computers! Smart Watches! DNA based nano-bots! Spread yourself too thin and everything suffers. Fail to support the winners and see your competition lap you. Support Glass? Support Apple Watch? Occulus Rift?

25 90% 60% 30% Airlines OTAs Hotels Support for Apple Watch Varies Source: Application Strategies for Travel, Strategy Analytics

26 App Name Distinct Installed User Devices Session Count Impact Google Maps 95% 65% High Waze 8.6% 6.8% High SPG Starwood.6% 3% High mplaces 4.6% 6.7% Moderate GasBuddy 13.2% 4.5% Moderate Uber 10.1% 3.8% Moderate Yelp 9% 3.7% Moderate Lyft 4.1% 1% Moderate Fly Delta 1.5%.9% Minimal Source: Application Strategies for Travel, Strategy Analytics

27 APPLE WATCH SUPPORT IS STRONG Source: Application Strategies for Travel, Strategy Analytics Copyright Strategy Analytics, Inc. 27

28 Forget the TV? Image source: Roku

29 CONCLUSIONS Finding users is difficult but not impossible Your app strategy must be well defined and tie in to corporate objectives You should create KPIs to measure app success Apps should not be seen as a cost center they can drive direct & indirect revenue Finding the right partners is critical to success Copyright Strategy Analytics, Inc. 29

30 Josh Martin Chief Researcher, Application Strategies Group Strategy Analytics

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