Current Trends in Mobile Applications

1. Current Trends in Mobile Applications Prof Janet Wesson and Bradley van Tonder Department of Computing Sciences 16 March 2011

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

3. Mobile Applications • 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

4. South Africa • 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.

5. Location-Based Services • 79.9% of phones equipped with GPS by end of 20111. • 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 1www.isuppli.com

6. Augmented Reality • 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

7. Fragmentation • 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.

8. The Mobile Web • 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

9. The Mobile Cloud • 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

10. Near-Field Communication (NFC) • 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)

11. Monetisation Strategies • 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)

12. Mobile Advertising • 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

13. Mobile App Usage • 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

14. Other Miscellaneous Trends • 3D Mobile Displays (without glasses) • App store changes: • Operator/handset manufacturer app stores • 3rd 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

15. Mobile Applications – The Future • 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

16. Any questions? • 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