orangerries bicby app presentation

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Orangerries Bet I Can Beat You app.

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Bey I Can beat You app presentation for We Are Squared group project: Team Oragnerries.

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Page 1: Orangerries bicby app presentation

Orangerries

Bet I Can Beat You app.

Page 2: Orangerries bicby app presentation

Executive Summary

OR

Page 3: Orangerries bicby app presentation

Elevator Pitch

Young adult males friends have an inherent competitive streak and are always competing with each other over things like sport, work, money, etc.

BICBY allows friends to set up a bet, or a wager, of any type through the app and offer an invitation to accept the bet.

The bet can be set between 2 or more friends and will involve a there being a goal to achieve to decide the winner and a forfeit for the loser.

The bet can be based on immediate events, e.g. ‘Who will score the next goal’, or long term events, e.g. ‘Who can get the fastest time in a Triathlon’.

Page 4: Orangerries bicby app presentation

Market Opportunity:This is what the experts say:

Canalys (April 2012): in Q1 2013, there were 13.4 billion downloads, up 11 percent from Q4 2012, creating revenue of US$2.2 billion (that’s before app stores take their substantial cut of the proceeds) from paid-for apps, in-app purchases and subscriptions (up 9 percent from Q4 2012).

ABI Research (March 2013) expects: apps to generate revenues of $25 billion in 2013; $16.4 billion will come from smartphone apps and $8.8 billion from tablet apps. Of this $25 billion, 65 percent will come from Apple’s iOS ecosystem, 27 percent from Google’s Android, and the remaining 8 percent from the other mobile platforms.

Portio Research (March 2013) estimates: full-year app revenues of $12 billion in 2012, forecasted to grow to $20.4 billion in 2013 and $63.5 billion in 2017.

Page 5: Orangerries bicby app presentation

Competitive Environment Betting is big business but it’s a crowded market

- BET365, William Hill, Paddy Power, Betfair, Sky Bet and Ladbrokes between them have it cornered

- Online-only Betfair has a clear leadership in sports betting, holding 23% of the total market last year.

- Sky Bet announced a 37% increase in revenues this year largely attributed to mobile

- Most are predicting mobile traffic to take over desktop in 2014

- None of them have truly embraced the mobile experience and still have clunky apps, no social layers and awkward to use

Page 6: Orangerries bicby app presentation

Competitive Environment

There are apps out there trying to disrupt the market

- Still predominantly in the sports betting market and focus on ‘real’ sports betting

- Most notable - Favourit https://www.favourit.com/

- A social layer built on top of traditional sports betting with some additional functionality

- Recently received $3.6million funding

- Uses companies like Paddy Power for the actual transactions

Page 7: Orangerries bicby app presentation

Competitive EnvironmentYou Bet Me - Our closest direct competitor“A social betting app that allows you to bet and challenge friends on anything and everything in a matter of seconds!”

- Launched their iOS app on 22nd Oct.

- Includes additional functionality- betting by sms- a ‘social betting stream’- real sports news/scores and betting

- Investors see potential in this area - You Bet Me has raised $1.2million in angel funding

- Currently US only so we can be the app to fill the European gap

Page 8: Orangerries bicby app presentation

Revenue Model Digital goods can be downloaded and consumed instantly and have neither additional production, shipping or inventory costs nor major quantity limitations.

ADVERTISEMENTSBICBY's free version will include advertisements. Hence, BICBY's free version will generate revenues through advertisements. In terms of generating revenue from advertisements, we will link up with a mobile publisher and we would be able to sell the inventory around the £0.50 CPM.

PAID VERSION WITHOUT ADVERTISEMENTS

BICBY's paid version will allow usage without advertisements. A number of users will be converted into paying customers, who will generate revenues by purchasing the paid version at a rate of £1.50.IN APP PURCHASE

BICBY will set “Global Challenges” where users will be able to play against someone in a different part of the globe. Winners of “Global Challenges” will win a prize, which will have been previously sponsored by a brand. The cost of these Global challenges has not yet been defined, but it will be in the £5.00 mark.

Page 9: Orangerries bicby app presentation

Revenue Model eMarketer forecasts the following amounts of smartphone users:

2013: 30.9 million 2014: 34.6 million 2015: 37.8 million

As per ComScore 33.3% of smartphone users played games with their smartphone in 2011.

If 10% of users played Global Challenges just once

a year at a rate of £5.00:

If 10% of users paid to use the add free app at a rate of £1.50:

With this forecast 90% of users will receive advertisements, providing even more revenue. Linking up with a mobile publisher we would be able to sell the inventory around the £0.50 CPM. As a result, per every 83k users who see an advertisement 50 times per month, we would get £25k revenue per year.

Year Total users ChallengesChallenges

Revenue

2013 10,289,700 1,028,970 £ 5,144,850.00

2014 11,521,800 1,152,180 £ 5,760,900.00

2015 12,587,400 1,258,740 £ 6,293,700.00

Year Total users Ads Free Ads Free Revenue

2013 10,289,700 1,028,970 £ 1,543,455.00

2014 11,521,800 1,152,180 £ 1,728,270.00

2015 12,587,400 1,258,740 £ 1,888,110.00

Page 10: Orangerries bicby app presentation

Our Customers

Apps are big business, and the biggest app business is games. In 2012, revenue generated from apps reached $10bn, with games accounting for 80% of this.

There is already an established customer base within the UK for online gambling :• Betting accounts for 72% of 3.7 million UK online gamblers• 2.7% of the British adult population regularly bets online• 1.3 million people bet online at least once a month

And Globally:• By 2015, the social gambling market is predicted to grow to $2.5 billion• and the mobile app market is predicted to top $38 billion. The global total spend on virtual goods is expected to reach $4.1 billion by 2016.

Page 11: Orangerries bicby app presentation

Our CustomersOur target demographic will me men 18-34. This is based on research telling us that the current mobile gambling audience is−  87% male−  62% aged 18-34

We have also found that 72% of mobile betters are ABC1 - the future of betting via mobile is now very much a middle class past-time. Betting is no longer synonymous with smoky betting shops – it now the past time of young professionals!

With the advent of social betting, betting categories will not longer be niche - such as football or horse-racing, but varied, interactive and consumer led.

Indeed the appetite for personal interactivity is best summarised by the dramatic growth of social gaming, which now accounts for 26m unique users in the US alone spending roughly 25 minutes a playing games peer to peer.

Page 12: Orangerries bicby app presentation

Our marketing and sales strategy Product to be free, but for a week only. It would contain ads. Additionally, if a user is to purchase a product/ service through our app or twitter page we get money via affiliate partnership scheme.

Compatible with iOS and Android. Available in the relevant app markets: free week-long trial, which then prompts the user to buy it either for a tweet or GBP 2.00. The idea behind this is to encourage customers tweet the app, promoting within among like-minded people. Allowing Twitter users to purchase the ad-free version of the product for the price of a Tweet would create a mass viral effect.

We will buy 100,000 Twitter followers (from, say, http://buyfollowerstwitter.co.uk/buy-twitter-followers/ ), which will cost us GBP 280. We understand most of these will be fake accounts, but it is in order to create an image of a popular product. As well as an additional, say, http://socialmediamen.co.uk/products/gold-business-package/ - 50,000 Twitter Followers, 50,000 YouTube Views, 10,000 Facebook Likes.

Launch Facebook app, which will have access to publish the results of the bet on FB wall of the organizer. With an option to create a FB page from the app just for a one-off betting event, showing results on the group’s wall, offering an option to share with all friends, even those not involved in the initial betting.

Page 13: Orangerries bicby app presentation

Our marketing and sales strategyWhy so much of a Twitter-based campaign?Twitter is booming as a social media destination for young people - according to a study about online behaviour. “The key is that there are fewer adults, fewer parents and just simply less complexity,” said Amanda Lenhart of the Pew Research Center, one of the study’s authors. More than 60 percent of the teens with Twitter accounts said their tweets were public, meaning anyone on Twitter can see what they write and publish. The entire U.S. smartphone market has just passed 50% penetration (as per Forbes, Sep 2013) so there is nothing but growth there. Same goes for UK, see below:

We chose to target primarily smartphone users aged 18-34 is because between 2011 and 2017, 18- to 34-year-olds will have the highest percentage of smartphone users among mobile phone users, as well as By 2017, smartphone user penetration among mobile phone users ages 12 to 44 will be between 94% and 98%.

Page 14: Orangerries bicby app presentation

Why is this a good investment?

Market Growth

The mobile industry is growing with smartphone handsets overtaking feature phones for the first time this year, in the UK.

By 2015, there will be an estimated 37 million smart phones in circulation in the UK alone, 33% of which will play games. With a 10% penetration in this market we would have have over 12 million users in the UK alone.

Bet I Can Beat You is a new mobile application, placed in a growing market, targeted to an existing audience group, built on previous success and delivered in an untapped market.

Existing Audience

The current gaming audience is aged 18-34, male and accounted for $8 billion turnover. In the UK alone, 2.6 million (72% of the gambling audience) UK online gamblers are betting users, with 1.3 million users betting at least once per month.

72% of mobile betting is carried out by the ABC1 demographic, our application allows us to welcome this audience whether they are located in the office, bar or home. Our applications removes the need for niche, pre-determined betting and opens the market to bets of all varieties between friends, family and colleagues..

Page 15: Orangerries bicby app presentation

Why is this a good investment?

Multiple Revenue Streams

Due to the nature of the application, revenue can be generated by both selling advertising space on a CPM or CPC basis or by removing the advertisement altogether for a set fee. Multiple revenue streams, less financial risk.

First Mover Advantage

With the recent launch of youbetme in the US we know the time is now to launch the UK equivalent.

youbetme received the financial investment of $1.2 million, the concept gained the interest from such investors as Zynga. Zynga, a Facebook games publisher now caters for over 11 million users playing social based games per day.

The combination of such credible investors and an untapped market makes this a very promising investment.