September 18, 2014

Welcome to an Appified World

Mobile Gambling Summit

2

Overview

Apps and Gambling Meet 2

A Quick Intro1

3 Challenges (and Opportunities) in an Appified World

What You Can Do to Succeed4

3

We are the leading app analytics and marketing platform

Our mission is to help our customers

build great relationships with their app users

5,000C O M P A N I E S

28,000A P P S

1.5 billionD E V I C E S

50 billionM O N T H L Y D A T A P O I N T S

“Localytics Marketing

pays for itself. That

rich, personalized

communication keeps

our users coming back

to our apps.”

“In the first month of

using Localytics, we

pinpointed the key

weaknesses in our app

and identified

optimizations to

increase engagement

by 50%.”

4

Only Localytics brings app marketing and analytics together

THE LOCALYTICS SOLUTION

5

Localytics is trusted by leaders in every major category

eCommerce

& Retail

Media &

EntertainmentGamesTechnology

Travel &

Lifestyle

6

Where mobile apps meet mobile gambling

Apps Online

Gambling

$10B

App Store

revenue

Mobile

gambling

~$30B

worldwide

Throw out the

online rule book –

the world is now

appified!

New metrics,

different user

behaviour

New ways to build

relationships

Mobile

Gambling

7

Declining growth rates – 9% in

2013 vs. 21% 2012 (MECN)

Pressure on ARPU – now at

~$20 per month for online

Increasing competition globally,

and barriers to entry lowering

Today, online gambling is experiencing a squeeze

8

To reach 40% of total online gambling market by

2018 (ystats)

Users to increase by 100 million by 2018 (ystats)

Revenue to increase from $28bn

to $100bn by 2017 (Juniper)

Nearly 30% of UK survey participants

bet on mobile > 3x a week (Probability)

While mobile gambling is on a growth trajectory

9September 19, 2014

The world’s not just gone mobile, it’s gone APP

In 2008, everyone thought apps were a fad.

They couldn’t have been more wrong.

Apps have become the dominant way we interact

with information.Raj Aggarwal, Localytics CEO

48,000APPS ARE DOWNLOADEDEVERY 60 SEC FROM APP STORE.

Mashable,

2014

0.01

Jul 08 Jul 09 Jun

10

Jul

11

Jun

12

Oct

13

60

30

15

51.5

60BILLIONDOWNLOADS IN <5 YEARSBY APPLE’S APP STORE

DOWNLOADS

(in billions)

Apple, 2013

Nielsen, 2014

41APPS INSTALLED ON THE AVERAGEUS SMARTPHONE.

…Now that’s a lot of competition!

Nielsen, 2013

OUR APP- ETITE IS GROWING.

35

70

1

0

5

1

4

0

20

13

20

14

Time Spent with Apps

Time Spent with Mobile Web

2013 2014

60.3 MIN.PER DAY THE

AVERAGE TIME THE

US CONSUMER

SPENDS ON APPS.

00:22

The amount of time the average

USmobile consumer

spends per day with

apps:

22 MIN.PER DAY THE AVERAGE

TIME THE US

CONSUMER SPENDS ON

THE MOBILE WEB.

Nielsen & Comscore, 2014

ABI Research, March 2013 & Portio Research, March 2013

$92BILLIONPROJECTED GLOBALAPP REVENUE BY 2018.

$27B

2016 2017 2018

$63B

$92B

HOUSTON, WE HAVE A PROBLEM.

18

Turn the following mobile challenges into opportunities

1

2

3

4

Retention: Keep them using your app

Engagement: Segment -> Engage -> Convert

Acquisition: Cost-effectively get onto customers phones

Cross-channel: Do all of above in an cross platform world!

19

Acquisition is not just about ‘buying’ users…

…it’s about targeting the right ad sources and users so

you buy the highest value users.Mobile Marketing Magazine

Only 21% of consumers believe online

gambling companies are targeting the

right audience with their marketing.

20%OF USERS ONLYOPEN AN APP ONCE.

Localytics, 2014

Users are picky.

Engaging them

requires a data-

driven approach

50%LIKELIHOOD AN APPUSER WHO DOESN’TRETURN TO A GAME WITHIN 12 HOURSWILL NEVERRETURN.

Localytics, 2014

Users are also fickle.

Retain them by building a

relationship with marketing tools

25%INCREASE IN IN-APPPURCHASES BY LOYAL USERS VS. AVERAGEUSERS.

Localytics 2012

It’s worth investing

in these tools

TOP 7 REASONS WHY PEOPLEUNINSTALL MOBILE APPS*

*AS A % OF ALL RESPONDENTS.

EACHPARTICIPANTMENTIONED

THREEREASONS.

Appiterate, November 2013

But be smart about your marketing, especially automation!

SO WHAT’S THE SECRET

TO WINNINGIN THIS BRAVE, NEWAPP-DRIVEN WORLD?

25

Making the most of an appified world

1

2

3

4

Use mobile messaging tools to build relationships

Segment, segment, segment

Actively track ad attribution & focus on your most

profitable channels

Target the individual user to create a personalised and

contextual app experience

26

Attribute by ad source and campaign to optimise spend

Return on ad spend

needs to be justified

and optimized

• Clicks and new

users not enough

• Measure LTV and

events by ad

source and

campaign

You probably spend

LOTS on acquisition

directly and with ad

networks

93 percent of

marketers say if

they could

effectively measure

mobile ad

performance they

would run more

cross-channel

campaigns

Forrester 2014

27

Attribute, monitor LTV, optimise ad spend and target

28

Communicate directly with in-app & push messages

Push

messages

are great for

reminding

to bet again

or give the

latest score.

In-app

messages

are great

for prompting

users to

make a

purchase

29

Use Net Promoter Score (NPS) surveys to get feedback

Localytics pioneered the Net Promoter

Score (NPS)

Capture quantitative and qualitative

feedback

Segment users by NPS score to

understand drivers of Promotion vs.

Detraction

Execute further campaigns for Promoters

(e.g. Rate My App) and Detractors (e.g.

educate on feature usage)

The power of push is real!

We’ve seen gambling

apps with 110% more

app launches!

Some gambling

customers see on

average 50 app

launches per month

for Push users. Localytics 2014

Localytics 2014

Segmenting users on similar attributes and actions defines your personas &

informs marketing campaignsand has a major impact on ROI

vs. 7% of segmentedpush messages that are regularly opened.

Only 3% of broadcast push messages are opened.

Localytics 2014

54%

15%

Only 15% of

people who click

on a generic push

message convert.

A staggering 54%

of people who click

on a segmented

push message end

up converting.

Segmentation and conversion go hand-in-hand

Localytics 2014

Businesses need a cross-platform view

of their (omni-channel) usersTODAY

Create an integrated, user-centric approach to

analytics & marketing

• RICHER TARGETING

• PERSONALIZATION

• INTEGRATED

CUSTOMER

EXPERIENCE

TOMORROW

London, UK

iOS

Acquired from Facebook ad

Last bet 2 weeks ago

Segment: Users who favouritedteams

Understand your customers deeply

Male

So you can provide users with personalized, relevant and contextual app experiences…

…AND GIVE USERS WHAT THEY WANT

Personalised offers or getting users to

personalise their app experiences, e.g.

selecting their favourite football teams or

tracking horse races they are most

interested in, will create more engaged

customers.

You’ll need deep analytics and

targeting capabilities to capture and

use this data.

68% OF CONSUMERS SAY IT IS

SOMEWHAT OR VERY IMPORTANT

THAT COMPANIES THEY INTERACT

WITH ARE SEEN AS A TECHNOLOGY

LEADER.

SO …

APPS THAT

MAKE

ROCK!

MAKETHEMENGAGING

MAKE THEM

BI-DIRECTIONAL

MAKE THEMPERSONAL

APP-IFIED

WORLD?

ARE YOU READY FOR AN

4747

Let’s talk!

VISIT OUR LONDON OFFICE

25 Southampton Buildings

London WC2A 1AL, UK

Anju Aggarwal

Global Director of Product Marketing

E anju@localytics.com

M 07979 2041 79