Top Mobile Internet Trends

1Copyright2011.Allrightsreserved.Duplicationorredistributionofthispresentationareprohibitedwithoutpriorwrittenauthorization.TOPMOBILEINTERNETTRENDSMattMurphy/MaryMeeker–2/10/11–RapidGrowth+Disruption1.MobilePlatformsHitCriticalMass2.MobileisGlobal3.SocialNetworkingAcceleratingGrowthofMobile4.TimeShiftingtoMobileUsage5.MobileAdvertising–GrowingPainsButHugePromise6.mCommerce–ChangingShoppingBehavior7.EmergenceofVirtualGoods&In-AppCommerce8.NotAllPlatformsAreCreatedEqual9.ChangeWillAccelerate,NewPlayersEmergingRapidly10.SummaryTrendstoWatchMOBILEPLATFORMSHITCRITICALMASS402,0004,0006,0008,00010,00012,00014,00016,0000123QuartersAfterLaunchGlobalUnitShipments(000)iPadiPhoneiPodFirst3QuartersCumulativeUnitShipments,iPodvs.iPhonevs.iPadSource:Apple.iPodsChangedtheMediaIndustry…iPhonesRampedEvenFaster…iPadGrowthLeavesits“Siblings”intheDust50246810012345678910QuartersAfterLaunch#ofDownloads(B)AppsiTunesCumulativeNumberofDownloads,iTunesMusic/Video/Movievs.Apps,First10QuartersSource:Apple.iTunesChangedtheMediaIndustry…AppStoreGrowthLeavesitintheDust6010203040506070800123456789QuartersAfterLaunchGlobalCumulativeUnitShipments(MM)AndroidGlobalUnitsShippedAndroidhasHitCriticalMassFirst9QuartersCumulativeAndroidUnitShipmentsSource:Gartner.7Smartphone+TabletPCShipmentsSinceCQ4:10GlobalUnitShipmentsofDesktopPCs+NotebookPCsvs.Smartphones+Tablets,2005-2013ENote:NotebookPCsincludeNetbooks.Source:KatyHuberty,EhudGelblum,MorganStanleyResearch.DataandEstimatesasof2/110100,000200,000300,000400,000500,000600,000700,0002005200620072008200920102011E2012E2013EGlobalUnitShipments(MM)DesktopPCsNotebookPCsSmartphonesCQ4:10:InflectionPointSmartphones+TabletsTotalPCsTabletsMOBILEISGLOBAL95Countries=46%ofInternetUsers–China,USA,Russia,Brazil,IndiaSource:1)InternetuserstatsperInternationalTelecommunicationsUnion;2)timespentdatapercomScoreglobal12/09.2009–1.8BGlobalInternetUsers,+13%Y/Y(1);18.8TMinutesSpent,+21%Y/Y(2)USA240MMusers,+4%Y/Y76%penetration*Brazil76MMusers,+17%Y/Y39%penetration*Russia60MMusers;+31%Y/Y42%penetration*India61MMusers;+18%Y/Y5%penetration*China384MMusers;+29%Y/Y29%penetration*Note:*Penetrationisper100inhabitants.Source:1)InternetuserstatsperInternationalTelecommunicationsUnion;2)timespentdatapercomScoreglobal12/09.10Note:*Informareportsalowerglobal3Gsubscription#vs.Ovumduetotheexclusionof4Gandtheuseofdifferentsources.3GincludesCDMA1xEV-DOandRev.A/B,WCDMA,HSPA;Source:InformaWCIS+.Global3GStats:Subscribers=~726MMPenetration=14%Growth=35%35%Y/YGlobalMobile3GSubscriberGrowthto~726MM,CQ3RankCountryCQ3:103GSubs(MM)3GPenetra-tion3GSubY/YGrowthRankCountryCQ3:103GSubs(MM)3GPenetra-tion3GSubY/YGrowth1USA14147%27%16Taiwan1142%40%2Japan109951217Malaysia926233Korea40791218SaudiArabia818504Italy34402119Sweden757435UK31413220SouthAfrica715366Germany28282821Turkey6101607Spain27482122Netherlands632278Poland23503523Philippines67989Indonesia21115424Portugal635810France21333025Austria6463011China20245826Israel5521812Brazil191017727Vietnam5470713Australia18662928Singapore4594814Canada125014729Egypt473415Russia1256730Greece42628SOCIALNETWORKINGACCELERATINGGROWTHOFMOBILE12DifferentTypesofPlatforms=Facebook+Apple+Google662MMusers+41%Y/Y550K+apps500MM+downloads130MM+users+103%Y/Y350K+apps10B+downloads972MMusers+8%Y/YCQ4:CPCs+4%Q/Qpaidclicks+18%Y/YiPhone/iTouch/iPadSEARCHMOBILESOCIALSource:Companydata,comScoreglobal12/10.*GoogleAndroidmomentumespeciallystrongtoo.*13EmergingTypesofSocialNetworks…MoretoCome253MMuniquevisitors+85%Y/Y130MM+monthlyactiveusers+15%Y/Y51MMsubscribers+25xY/YCOMMERCEGAMINGINFORMATIONSHARINGSource:Groupon,Twitter,Zynga.14ZyngaProvesthatGreatNewSocialProductsfor‘Old’UsersCanRampExtremelyQuicklyDailyActiveUsers,FarmVillevs.CityVille,First60DaysSinceProductLaunch-481216201611162126313641465156DailyActiveUsers(MM)DaysAfterLaunchFarmVilleCityVilleSource:Zynga.NotethatFarmVillelaunchedin6/09,CityVillelaunchedin12/10.15Real-TimeSocialFeaturesAcceleratingMobileUsageGrowth-Sharing+Location+Friending...LocationSharingMusicSharingCommunicationFBConnectforMobile–BuiltinFriendConnectivity,Share,ViralityFourSquareWhrrlShazamSpotifyTwitterTextPlusTextFreeInviteFriendsShareFeed16KPCB’sJohnDoerrCallsIt“SoLoMo”…SoLoMoSocialLocalMobileTIMESHIFTINGTOMOBILEUSAGE171805,00010,00015,00020,00025,00030,0002Q064Q062Q074Q072Q084Q082Q094Q092Q104Q10MonthlyPageViews(MM)MobilePageViewsDesktopPageViewsCQ3:09–Platformopenedto3rd-partydevelopersMixi’s(Japan’sLeadingSocialNetwork)MonthlyPageViews,Mobilevs.PC,CQ2:06-CQ4:1085%15%86%14%JapanSocialNetworkingTrendsShowImportanceofMobile–MixiMobilePageViews=85%vs.14%4.5YearsAgoNote:MixiisoneofJapan’sleadingsocialnetworkingsitesonPCandmobilewith20MMregisteredusersasof12/31/10.Itmonetizesmobileusageviasalesofavatars,customizedhomepagesandotherpremiumservices.Source:Companyreports,NaoshiNema,MorganStanleyResearch1960%ofTimeSpentonSmartphonesisNewActivityforMobileUsers10minutes(12%)Web/WebApps40minutes(47%)AllOther•Maps•Games•Soci