1 | Copyright © 2006 Enpocket, Confidential and Proprietary

1 | Copyright © 2006 Enpocket, Confidential and Proprietary

Mobile Advertising: The Emerging Video Platform

Stuart HampsonVP Technical Services & Operations, Enpocket


Enpocket: Worldwide Leader in Mobile Marketing

Most widely deployed mobile advertising and promotions platform

Headquarters in Boston, with offices in London, Singapore and Mumbai – 130 staff approx

End-to-end solution includes connectivity, platform, creative, media sales

Clients include Mapquest, match.com. Sprint, Airtel, JPhone / Softbank Mobile, Interactive Corp, The Sun

Award-winning Plan, create, execute, measure, optimize Messaging, browsing, handset applications

IDC names Enpocket one of 10

wireless companies to watch in 2006

Best MobileMarketing Provider


The Mobile Advertising Challenge

Carriers need to balance advertising with an ARPU based business model

Subscribers need ads that are relevant and useful, not intrusive or annoying

Advertisers need an effective mobile solution – not just a banner


$10 $15 $20

10%

20%

30%

NTT DoCoMo

KDDI

Vodafone Japan

Sprint

Verizon

T-Mobile US

Cingular

Wireless Data ARPU (USD)

Da

taa

sa

%o

fto

tal

reve

nu

es

SK Telecom

3 UK

So

urce

:C

he

tan

Sha

rma

Con

sulti

ng,

200

6

Vodafone UK

KTF

Vodafone Spain

Vodafone Italy

Vodafone Germany

3 Australia

O2 UK

O2 Germany

SingTel

Rogers

China Unicom

China Mobile

RelianceBharti

Hutch

T-Mobile UKT-Mobile Germany

B

C

D

Asia

Europe

Americas

3 Italy

Orange France

Orange UK

Orange Spain

Copyright © 2007 Steven Kursh and Marc H. Meyer, Northeastern University

Mobile Operator APRU Increased Through Data Services


There are 40 million subscribers globally in 2006 #1

6.2 million U.S. mobile video subscribers in Q4 2006, up 145% since the first quarter of 2006

Japan has the largest market and is continuing to grow fast

3G networks at 72% coverage of the UK

UK online and mobile viewing is rising - three quarters of users said they now watched more than they did a year ago #2

Mobile Video Today: Key Market Indicators

#1 John du Pre Gauntt, ‘Mobile TV and Video: Big Dreams for the Smallest Screen’

#2 BBC News survey, November 2006


Mobile Video Today: Formats

Mobile TV available on operator portals Subscription to channel packages (e.g., Sky, MTV, etc.) Special events - World Cup, Big Brother final, etc

Video downloads Clips - e.g., The Office and Little Britain at 50-75p on Orange (> 2

minutes) Soap roundups (25p)

Made for mobile content / snackable shows ’24’ mobisodes TARDISODE

60 second prequel 3000 downloads to mobile per episode


Mobile Video Challenges

Take-up of mobile TV in the UK has been slow…

Operators looking at new business models – primarily advertising

Not easy to use – difficult on WAP to change channels, etc. Some operators looking at downloadable clients

3G network coverage not always available

Handset compatibility – number of 3G/video-enabled handsets

Users Dissatisfied With Mobile TV/Video:Top Reasons For Dissatisfaction ( U.S. )

Reason Percent Citing Reason

Low video quality 41%

Slow connection 35%

Small screen size 6%

Cost 4%

Other 14%

Source: Telephia Mobile Video Report (Q3 2006)


Mobile Video Usage

Usage habits

Commuting

Lunch breaks

Taking the TV with you at home (e.g., making a cup of tea)

Big events – major news stories, sports events, Big Brother final, etc.

Top Mobile TV Channels and Mobile Web/Internet Sites (U.K,)

Mobile TV Channel Share (%) Mobile Internet Site Share (%)

BBC 1 33% BBC 28%

Sky Sports 29% SKY Sports 23%

Discovery Channel 24% BBC Sports 22%

BBC 3 22% BBC Weather 20%

BBC 2 22% Google Search 18%

BBC 4 22% Jamster 13%

ITV 1 22% Sky 11%

Cartoon Network 21% MSN Games 10%

ITV 2 21% eBay 10%

UK TV gold 17% AA 8%

Source: Telephia Audience Measurement Report U.K. (Q3 2006)


Mobile Video Audience

Attracts coveted demographic groups:

Men 70% of current mobile video subscribers #1

Young viewers 62% of mobile video subscribers are between the ages of 18-36 #1

28% of those aged 16 to 24 saying they watched more than once each week #2

#1 Telephia, March 2007

#2 BBC News survey, November 2006


Emerging ad placement options

Sponsored video clips / downloads

Video ads Streamed Download

Within streamed content Pre-roll Mid-roll Post roll

Mobile Video Advertising – Ad Placement

#1 OPA Europe, ‘Going Mobile: An International Study of Content Use and Advertising on the Mobile Web’ March 2007

Research shows that in EU, 37% would watch ads in exchange for free mobile content #1


Mobile Video Advertising Case Study


Reach mobile consumers during the days leading up to Super Bowl to build awareness of Pepsi Promotions

Promote launch of 15 new Pepsi can designs Make Pepsi brand matter to the in-control

consumer

4 targeted mobile banner ads for 5 days prior to the Super Bowl

Innovative ad mechanics including click to download branded wallpaper, click to view video spots of new can designs and click for live video updates of the game

4.65% CTR overall, certain segments with CTR of 11.5%

175,000 downloads of Pepsi wallpaper in 5 days

50% of clicks converted to download wallpaper

60% of clicks converted to view video

Pepsi Super Bowl Enpocket Case Study

Goal

Solu

tion

Resu

lts


Summary

At present, there is limited inventory but technical advances and operator needs for new revenues are increasing the ad inventory available

Operators need to evolve to allow use of data (demographic and behavioural)

Major content providers (e.g., Sky) are building larger audiences for mobile video

Mobile Video will offer a significant channel for advertisers

Offers creative flexibility for brand building with interaction


Thank you! Stuart Hampson

VP Technical Services & Operations, Enpocket

1 | Copyright © 2006 Enpocket, Confidential and Proprietary

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