Paul Barnes, Northern Europe and Middle East Territory Director, App Annie
Automatically Generated Transcript (may not be 100% accurate)
Right thank you also mines fall as well I'm Paul Barnes on director for. And Northern Europe and Middle East for at Fannie and my mission for the next thirty minutes or so is talk you about the world of that so generally what's going Annan. Why that's relevant in travel sector and particularly what you can do about it. So I thought ID in in this structure here you can see on the screen or word or two about who's out Fannie. Some broad us high level views about the out markets. Guinean and an idea what's happening. Talk specifically about travel absent some analysis on their. Looking at the customer Jenny source a customer perspective although I think we've had a few talks around yeah hit just just now on who owns a customer so it's important to take. That view of that and maybe most importantly a few lessons at the end of things that perhaps you can take away yeast. As you consider what you do with mobile apps in your own particular businesses. So first of all he's out Fannie. Kind of an interesting alternative quick show of hands actually he's heard about Fannie inner rim. Care it's pretty good maybe 20% something like that. I struggle a bit to to be honest sometimes explaining its family and friends who may be T jobs completely unrelated to technology. What's that Ani does I had a bit of a boost on Saturday night. In the Klitschko Josh fewer flights if this guy bet your advertising very heavily through the fighters is you may have seen and that whole premise of their advisors. Betting is gone mobile and sky bet has the best mobile. And those very facts and figures on the screen to support that claim and whenever those are on the screen at the bottom of the screen it said data according to lap band. And that's it from one point aviva simplistic pointed is what we do we are the reference points for anything to do with market data and analysis in the mobile market. An bet we sky bet might put my money on the fight going the distance though some consolation in the eleventh round when. Clicks go hit the debt or at least my company was being well promoted through the five. But in this is really important stuff has really relevant stuff if you think about mobile is its unique is uniquely difficult to get data about what's going on. If you compare it into normal chattel either channel do you have the customer interaction face to face. Online whatever it maybe you can get market resets you can understand competitive what your competitors are doing you can get data to make good decisions. Mobile is uniquely difficult for that because of the app stores. Everything all the data you have is hidden behind those apps all walls in most markets behind Google and apple. And you can't get to see somewhat in the dark trying to understand what's happening that's a single reason Andy exists to solve that problem. What we do is we've got to a model where we did software to wrap publishes and in some cases slap uses. We give that for free it's fantastic software it's almost ubiquitous in the mobile market so. More than those by 94 of the top 100 publishers use our software to analyse their right now as we charge them for that we're in return we get the anonymous data. And that's the value value that we have so our software just give your census Gail. Tracks more than half of all the downloads could go on globally and put a number on that about ninety billion down. That means we tend to work with the kind of who's who. Tech and mobile companies you can do better being go on now on who the people on the screen now they're all them all at Ani customers. And it you can imagine if you're in inner and mobile first business whether it's gaming liking or roe VO a social networks FaceBook. Do core. Interest snaps at a into U verse spotted by Amazon's all of these companies use and dated data helped inform the decisions they make. Now the changes that over the last you would see. It's become mobile become much more mainstream. So into industries like retail retail banking in the course of today travel. Mobile is becoming prevalent. Ryanair have gone out and said in rhino do great job in the airline industry I'll talk about that bit later and got added we are on mobile first business. And EM unit that the applicability in travel it's obvious. That's really what so what we're about helping and why we expect. We are sort of global company when a U too much more on that. So let's talk about the apple market in general I'm sure you all know they're actually increasing inmate uses but that's trying quantify a little bit. There's a figured there 900 billion. So that's 900 billion hours that we spend. In the last year resist PCs using acts and you can see this split by region you can see it's pretty broad cross across the across the world. And you know you can see the rate of growth there it's about a 100%. Over two year period doubling. From 34 to twenty sixteenths at this rate of growth is incredible. And it's global. Now that comes from two areas that comes from more people using at and if you look at markets like India there's this. You know. In crazy acceleration in the number of people who have accessed at. But also comes from the amount of time we spend as individuals and that so let's take a look at that and you can see some things from here this is. Different countries hope you can you can see here the countries from from the back there this now lies like South Korea. Over on the left and you can see you know on average I'm this is just looking at the Mandarin data but on average last year. And at a user with a with a smart and spent more than three hours a day in South Korea in. And in morning European markets over towards the right hand side here we've got UK France Germany more like two out today that we're spending that. But the key thing if you look at that graph. In every country. In every year. There's an increase in the amount of time the average eases spending that do you see this constant shift. Towards apps as a way of engaging and way of running our lives whether it you know anything from health and fitness shopping so personal finance. And etc. OK so that's. That that's at a high level view let's start to look a little bit more on absence say well where are we spending that cross apps. So this is looking at the number of apps we use today namely being compared to how you how you operate yourself. But you can see it's more consistent across countries you've got I guess. Not not outline above one end of the spectrum Brazil. Pushing up towards twelve apps that use today by on average it's this kind of 810. Apps that will ease. Every day. And the flip side of that if you look at two a monthly usage there's about. On average if you look at the apps we have one offline we generally use between third and half of them. Wants a month at least. So there's an awful lot that some people's fines that generally aren't used to have been downloaded. Maybe used once may be using never and four for whatever reason around the engagement around the way it works the value it brings just never get. So that the though that the concentration. That EC it is is pretty low of around ten. Her some sort of broad high level high level view let's take a bit of the drill down into travel and or something really remarkable has happened in travel. Over the last two years and that's a shift in mobile continue to be in become important. But there's been huge shift in the last 34 to 36. In what mobile means in travel. And two years ago what mobile meant mostly was mobile where. So if you look at smart phone bookings items of the travel bookings two years ago it was around. 12% on a small amount right now most of those two years ago or unasked mark finds tapping away. On web forms kind of fill in all I details infant and go through this arduous process. That's radically shifted in the last two years the majority of smart phone bookings or so 5560%. Something like that an increasing dramatically. I'm now app rather mobile where. So there's been this transform our transformational change in the last two years in the travel sector which you see in that the data underpins it you can see here this. This shift in downloads in you're seeing this. You know 50% increase in in downloads that people acquiring new travel. Across the market. And so that's our people adopting it is a question about either using as well when when they actually have these apps on their phones. And you can see that it says is similar kind of story so looking across just a focus on European markets in the there's a bit of a bit of variety there but it's. Broadly between a 10050%. Increase. In the amount of time that we're spending. And within the travel category so again it's that story of the shift into apps. More time more engagement and more people using. And if you look at the apps that that people use. It's pretty broad now. So there's. You can segmented different ways but I think if you take a fairly typical kind of industry view you've got online travel agencies you've got their you know their efforts to ease to a booking dot com. In sees guy scanner sort of the that met a search for level and then you've got plenty of direct. Distribution so the airlines we talked about a bit today in the stands. Hotels. And and so one. Peer to peer marketplace is of course the you know wind do AB NB. As well as other travel plays a mean Hoover you may not you may not. Think comment that space but if you look at where they're headed and how they operate very much it appeared travel marketplace. And then finally the Mattson and navigation is local so you see when you look at this what it says is this is Mitchell. So if you look at other sectors in you look at the app. Ecosystem and and and how it works. Applying it to this it's saying that the travel with them the the app market for travel is now getting to a point where it's pretty mature. But of course the end nobody is gonna have always act on their phone. So I talked a few minutes ago about there being ten apps that we ease broadly like that at every day. And the different way to look at is how many apps to people have on F five. So if we take yet taken view of that and we look at it year on year you can see it's increasing OK so they almost all of these markets. And people borrow at current adopting more more travel that thing getting more travel apps on their phone. But it's it looks a little bit like it is capping out of Germany's five interesting market where it's it's flat right now six. See Franz pushing up towards seven. But obviously going to be limit on the amount of travel apps that people don't have gone on fun to the question is. From that from a travel provider issued your app V one of those gaps in the so. What do you do to actually make sure really is one of the 567 apps that people are going to have from the travel for from a travel. The main. Operating on the Smartphone. And I wanted to call out airlines. I think our time who early on was talking about easy jet being. Being a good example a banner and I completely support that. You see that the budget travel sector that this really taken the lead on this is airlines. The Graff on the right hand side there is looking at monthly active users. So the number of people who have react on the phone and usage at least once a month. And you can see that 150%. Increase over disturbed that two year period we've been looking which is pretty dramatic. And it's kind of across the board I talked about Ryanair hit with the the highest in terms of their monthly active users of the made that the verbal strategic commitment about being mobile ferts. But it's pretty broadly look at some Air France on their so so the majority. Of Air France customers now engage with them through mobile. Which is a real tipping point I think when you see your main. So traditional perhaps airlines like Air France. And easy jet. Easy jet now it is almost one in four. Bookings so this isn't just the kind of the service the ads in the the check in boarding cards inside the actual bookings. Around one in four booking. Three to get go through the mobile. And that's a huge increases something like four or five times increase from where was two years ago. I think there's a lot to learn for a from the airline industry and and and some of the things they've been doing right. I'd wanted to if I'm gonna come on the talk about things you can learn and maybe some of the things you can do in the manner but just one slide before that which is to flip it around the debt and look at that. Market segmentation the idea that a second ago but look at it from a customer point of view rather than from as an industry saying what which boxes do we fall into. And if you think about how that play a part in in in Jenin in holiday in the trip whatever might be. From a customer point of view from a travel a passenger point of view it's very much you know before during and after an if you look at the apps. That they use on their phone for them through that customer experience it starts with this kind of inspired dream where am I gonna go watch and I do states. Which is. FaceBook instant brand you achieve maybe interest or in snapped at depending on which the demographic you're talking about. Then into the booking which you know from a customer pointed out really care if it. In aggregated direct peer to peer whenever it is I'm like its sister booking point for me. And then during moving backwards and forwards between transit explored navigates. All is that going backwards and forwards through the period that on their. And then there's cross over into Africa where you start to see messaging apps as well whether it's what's that for. For again was flat at five whatever it might be for posting. Messages along the way. And then back out the other side into photo sharing and and FaceBook in interest and obviously background. Now the interesting thing is you look at that. Half those that's something like that we say influence in the part of the travel experience on not travel. Their social ill their messaging. That there are other things so if you think about it's really really important to understand that from a customer point of view. Their expectations. Of how your apps should work. And what services they should they should get from met and had waited interactive is not set by the travel its set by this journey. By the time they come into your booking happen they come to your. You're viewing the services provided during their expectation mindset is it is driven by. FaceBook interest do you achieve whatever realistically using more prudently and I'll talk about that a little bit more in the second. So final bet let's talk about lessons lessons we can learn what we can take. I think. I'm actually going to just go back I think there's some to recognise with with switches. Thanks really important philosophically to see this as a privilege. If you look Smartphones have hub of people's lives these steps as this statement about your most people will. Not what we're going home if they leave their walloped by the we'll go home get their mobile phone if they've left they can't operate that. And yet if you have to see it as a privileged to have a presence on some really smart if you aren't one of those apps they're using it is something you need to respect. So part of it is don't do bad things don't then there battery life don't send into many notifications. You look at the data that kind of thing but with that in mind I think it is a privilege and it's an opportunity. To strengthen would deepen that relationship you have with. So just think about how you can take that relationship to the next stage because of that presence you have all time their pocket. Eddie in these doing that very well with their trips functionality now turning a step in too inexperienced. Obviously they have some unique parts of their business model you can't replicate but I really like the partnership. We trick me. In Vietnam and booking dot com so trip may if you don't know that have. You know there kind of aggregate a frontal front end see lots of local tourist guides. So if you want to connected tourist guides trip may happen this data to do that the network to be able to do it. By partnering booking dot com you get that same kind of accommodation lacks experience packaged in one was becomes a much deeper. Relationship thing that he would otherwise at. I think some hotels do this well marry it to call out I think they're doing mobile well erupted. Because one point seven billion dollars transact in an annually now through their mobile app but there get their act quite simply shifts when it knows you're staying in the hotel. The wave react interact with you becomes different is becomes more about what things you want to doing it was day. Rather than what you might want to do before you pre book so fairly simple but it's just about. A deeper relationship you have. Second thing is again a tough summer little bit about the expectations that get set for like that but if you look at retail now something like the Amazon's experience. You expected to be stain that you expected to go three went away. And travel apps are proving to be successful by embracing that so easy jet its example with the flight tracker. We're talking about that from the airports I think forty you can see where your plane is before it gets C. Notifications before hand directions to the airport all of those kinds of extending out before and after the particular particular turning points. A trip advisor did pretty well we've then using the location and the and the and and the and timeline to pull together your photos into the right order. United travel OK I guess notifications around. You know payment change prices that kind of ongoing relationship that now have we knew alerting you owe their. Prices change now on the flights. And I think even you know hotels again indeed do some of these things pretty well I like the key functionality. So the idea of using the gap as big as the hotel room key that marry have. Is greatly just do you see that streamlined process you can go from Czech industry to opening the door. I think it's Hilton now have got the enact messaging so if I want to. Have a and human interaction with somebody else might indeed happen within they have I don't need to step up so. So that just thinking about that's benign side is important. Yeah I mentioned that data is opaque in mobile actually once you get into it you have access to the data becomes very rich. So this is just an example one of the data points we used most often we're without customers around. Understanding your customer and what other wraps they have on what other apps they're using. So this is just a fairly obvious point. And we say in the UK in February if you had trip advisor like your phone. You were four point five times more likely than the average person to have Expedia news that your funds well witted maybe pretty likely consider the ownership. But it starts to be more relevant if you look at open tables at four point nine times and you start to see the other apps that people use in that gives you the chance to. Understand the expectations people have source incredibly useful for things like partnerships as well can now can promote. The social point I've kind of talked about how we're doing on on time on May be pushed through this. So distinctive. To give you a sense of what people do. What would be what kind of backs they use on the chart there over the for the kind of top right hand that the 12 o'clock three to four maybe it's communication sector messaging what's that. Whatever it might be faced the message we use the 4 o'clock three to seven essential. So again if you if you think about back to that customer experience park. Just recognising how much of both your customers time and that they spend and so sure. Is really important and doing something about it. And you know it's not easy it's not and novices if it is more than just connecting to FaceBook though I think it's about taking unit in inability. And if you want to look at other sectors outside of travel for some inspiration on map. If you look at sectors like retail so pace jobs a pretty good pretty good example in the UK. So await a source T social now is linked to their loyalty scheme. So if you or and tagging a source in photos that you have gone on social sharing maybe something you bought from a sorcery with some. Terms of friends in both profits whatever might be the more you tag Asus in their memorial drive loyalty points. In your in your loyalty scheme with race so it's just trying to find. Innovative ways of bringing that together and bring in that that merge with in your lap. But what that whichever way you look at I think in the sector you cannot ignore such intensity at easyJet and an experienced an expectation. And then finally. You know at markets are incredibly competitive fairer over five million absent. On the apps thought this is really not a case of build it and they will come. It's building and there probably still gonna struggle to find your app unless they there's searching directly for and sometimes then it can be difficult. So just. You you know recognise that there are some basic things you can do around that a optimisation. To make sure that it if people looking for your specific gap at least they can find that. Fairly quickly. There's other things around featuring so if you if you are being innovative and you're investing in mobile. Get your right relationships with apple and Google so that will get your rap and featured more often. And that's going to build confidence is going to attract more people to come and cumin converted using your at probably existing customers. But potentially new customers as well and that integration of mobile and your investment in apple with the rest of your marketing strategy I think is something that's still overlooked. Quite a bit in the in the travel sector of the month. OK so those of the five things I want to say. Just really a conclusion side. You customers have embraced traveller there's been a shift if there's been this. Just swing from mobile where into axiom that that happen it there and you need extract any travel by need to strategy. That does app based around that. It is an opportunity to engage with different level probably didn't really have we we many of your customers depending on your business model. But that presence that you have on this marked by. Is is an incredibly valuable and precious opportunity to accept have a different relationship with them. The lack react landscape changes all the time nominee you may not even relevant just think it apps always did not exist ten years ago. Everything that we do that has happened in the last you know technically in the last nine years or more intended uses of that 45. So it changes so quickly you have to beware beware those trends another rap sectors and how they influence you. Obviously be clear about the value you want to bring you can't do everything but if you have a streamlined. And service you can extend indeed do certain points that the revival this examples of that we've talked about. And finally enter that partnerships side that I really liked the comment at the opening of today about. The travel industry is always about partnerships I see you looking into the world of mobile. Because of the of how it operates partnerships are incredibly important and looking at those whether it's within travel whether it's potentially with other sectors which might be entertainment. Food and drink you know what whatever could be understand the absolutely customers easing and look for those potential partnerships. So that was. It I think for me.