Mobile - You Just Have to Be There

Chris Downie and Dave Heilmann

March 6, 2012 MobileX Conference

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Overview

Presentation Overview
Team History: It can happen in Cincinnati
Who is SparkPeople Our mobile experience & approach get out there and keep expanding Key takeaways to be there & future of mobile

Todays Goals: Mobile is here to stay. Well provide a few tips and strategies to start capitalizing now as part of a longer terms plan

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Who is SparkPeople

Team History: It Can Happen In Cincinnati!

Personal Story -- anyone can use these techniques Anxiety shyest kid in class Trapped yo-yo fitness Corporate life: Dont be like Larry! Combine exercise and goal setting Ten Minute Fitness Streak control destiny More likely to stop at gym instead of Taco Bell Exercise tipping point more work at first vs. benefits Wanted to improve in all areas of life I can do anything!

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Who is SparkPeople

It Can Happen In Cincinnati!

Pat Story at Procter & Gamble:

Your daily actions and words impact more people than you realize!
How many people could you Spark?

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Who is SparkPeople

Team History: It Can Happen In Cincinnati!

Up4Sale.com eBays leading competitor Team = 4 UC grads & 1 UC co-op $50K on credit cards Support of small team Bootstrapping: ice storm/no brakes

eBay acquired us their first acquisition Met wife at eBay

Approximate $100 million internet exit on $100K capital

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Who is SparkPeople

Team History: It Can Happen In Cincinnati!

From shy kid to realizing my mission in life was to help other people reach their goals Started new company to SPARK millions of PEOPLE to reach their goals Added one great person at a time to our team team includes members Continuous improvement based on member feedback We LOVE being a Cincinnati-based tech company on a national stage!

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Who is SparkPeople

SparkPeople Overview
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000

SparkPeople Unique Visitor Growth (Google Analytics)

35 employees today, 25 in Cincinnati Became largest diet and fitness site in 2009 Helps members be healthy through a combination of:

May

May

November

November

May

July

July

July

September

September

September

November

Jan, 2009

Jan, 2010

Jan, 2011

Jan, 2012

March

March

March

Trackers calorie tracker, fitness logs, etc

Content articles, recipes, & more

Community teams, friends, messaging

Primary revenue driver is sponsorship sales, but also publishes books, DVDs, and more

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Our Approach & Experience

Our Original Mobile Approach

Since our founding in 2001, we monitored the overall penetration of mobile devices, especially within our target female demographic We evaluated Palm, Blackberry, Treo, etc We were not sure what to make of the iPhone when it launched in June 2007 By mid-2008, even though we were growing quickly online, we realized the potential of the iPhone and moreso the iTunes App Store and started devoting resources early to mobile We launched our first iPhone app in February 2009
We create an app with our most used tools calorie and fitness trackers We chose iPhone because it had a better app experience at the time

* Source: SparkPeople Registration Data (remaining from 2010 user survey. n=23,000)

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Our Approach & Experience

Early Learnings
In our first month we were surprised at the early adoption in our target market; with 10,000 downloads the first month we realized we were onto something The key was (and still is) the App Store
We drove our members to get the app, which raised our ranking in iTunes

Non-members then found our app and downloaded

This became a major source of new members, essentially with free marketing by the App Store

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

Our Approach & Experience

Expanding Our Offerings

After seeing our iPhone success, we launched a 2nd application (Healthy Recipes) and launched applications on more platforms
iPhone Tracker February 2009 iPhone Recipes December 2009 Android Recipes December 2009 Blackberry Recipes December 2009 Blackberry Tracker February 2010 Android Tracker March 2010 iPad Tracker September 2010 iPad Recipes April 2011 iPhone Paid Perfect Produce April 2011 iPhone Quote of the Day January 2012

We had the same success on all platforms seed app with our users, see our ranking rise in app store, get non-member downloads

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

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Our Approach & Experience

Mobile Benefits to SparkPeople

Marketing & Member Experience
Over 6MM lifetime downloads of our apps; based on how we pay to acquire members, a rough model would value our free marketing done by apps at over $10MM! Also a defensive position against diet startups Weve worked to integrate mobile with web to maximize member experience
Drive mobile registrations to web for expanded community, content, etc Offer mobile to web registrations for convenient use on the go

Monetization
Advertising is still in transformation lots of inventory, and brands figuring out what to do (we are seeing some agencies/groups specializing in mobile buys) Weve had some success with custom integrated sponsorships

Weve tested networks (Apple iAd, Google); fairly low fill rates, only $.50-$.75 eCPM
We are testing paid apps, with model of driving users from free apps to paid apps; we will likely continue to innovate with new paid apps We have had early success with driving purchase of our other products (books, DVDs)
SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

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Takeaways

How should you be there?

Chose what features and functionalities you should move mobile
What is your core functionality/product?

What works well on mobile? What can be done with less interaction/screenspace? What do people want on the go?
Think about any unique/proprietary content you have Free, paid, or freemium?

Choose a platform
Wed choose Apple or Android, since the user base and stores are so robust HTML5 is interesting to watch; however there currently is not an app store to drive downloads Check with tech team, which are they most comfortable with? Once you build on one platform, its typically easier to build same app on 2nd

Launch, learn, and expand

Drive your customers to download app; then get benefit of higher store ranking, and more free/new customers Learn from how customers use your app and decide what to do next; expand app, launch new app, launch on new platforms
SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

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Takeaways

Future of Mobile
For SparkPeople
We will invest more and more in mobile; this year mobile is 30% of our usage, last year was 20%; we will watch and adjust our strategy Keep an eye on native applications (iTunes/Android) vs browser based (HTML5/etc) Keep looking for new and different ways to monetize our mobile members

The industry
Keep an eye on the platform wars; Microsoft still has a chance

Mobile is likely not going away, but dont forsake desktop yet
YOU HAVE TO BE THERE! Dont rely exclusively on 3rd party and media research Your consumers have a unique link with you and your products; by meeting them on mobile sooner than later, you can learn what they want and will use

SparkPeople Confidential | 2011 SparkPeople All Rights Reserved.

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