Mobile Internet March 2010

Mobile Internet

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Johan Looijengawww.linkedin.com/in/johanlooijenga

11-3-2010

Agenda

• Mobile Internet evolution• Mobile Internet value chain dominance• Smartphone growth and usage• Mobile user targeting• Mobile advertising• Media industry and mobile• Future thoughts

Mobile Internet 1.0

• 2G GSM circuit switched data• WAP• Text based, simple graphics• No Internet browsing• Bad user experience• Data usage billing

Mobile Internet 1.5

• 2.5G mobile infrastructure• DoCoMo iMode• Proprietary Japanese phones• Operator walled garden• Subscription based billing

+ data usage billing

Mobile Internet 2.0

• 3G mobile infrastructure• Open Internet browsing• Smartphone technology• Intuitive user interface• Social networking (e.g. Facebook)• Video (e.g. YouTube)• VoIP (e.g. Skype)• Applications/App store• Flat fee data usage billing

+ app billing (many free)

Mobile Internet value chainMobile Internet 1.0 Mobile Internet 1.5 Mobile Internet 2.0

Europe

Phones: Nokia

Japan

Operator: DoCoMo

United States

Apps: Apple

Innovation game:New services, App stores, applications and contentChallenge: attract large scale developer communityDominated by Internet giants and startups

Platform game:Infrastructure and reach/economies of scaleHost as many apps/services as possibleChallenge: rapid growth of spectrum/bandwidth usageDominated by Mobile operators, Handset vendors, Internet Giants

Mobile bandwidth challenge

More than just a phone

• Internet browsing• E-mail• Instant messaging/social media• Tablet• Bookreader/eReader• Music player/recorder• Musical instrument• Photo camera/editor• Video player/recorder• GPS device• Car electronics device• Home electronics device• Game computer• Lots of handy utilities

Smartphone sales

• Smartphone sales Q4 2009 41% growth• Best performers Apple iPhone and Google Android

source Gartner feb 2010

Mobile App marketing/distribution

Mobile fit with social networking

Mobile Internet user targeting

• Commercial TV:Global user segments, global usage figures

• Internet:Individual user behaviour, contextual advertising

• Mobile Internet:High degree of personalization possible:- consumer value (ARPU, post-paid only) - demographics (sex, age, address, post-paid only)- handset type and brand- usage statistics- always on- location- short- and long distance journey patterns- individual contributions (blogging, twitter)- buying behaviour

Business models mobile

• Accessflat rate, time based, volume based, free

• FreeLoyalty, support existing business

• Subscriptionarea’s: music, films, newspapers, magazines, books

• Advertisingarea’s: news, magazines, radio, TV

• Transaction- Premium 0900, SMS Classic Internet vs. Mobile: free vs. paid services based on phone specific content and ease of billing- App one-time fee- M-commerce

Mobile advertising

• Recent acquisitions worldwide:- Google buys AdMob ($750 M)- Apple buys Quattro Wireless ($275 M)- Opera buys Marvel ($ 8 M)

• STIR/Nedstat lab mobiel initiative• Smartphone installed base drives mobile advertising• Mobile advertising implies mobile landing pages• Ad needs to be content related/context relevant• Different types of mobile Advertising:

- SMS/MMS- Mobile search- Mobile video- Mobile game- Mobile banners- Branded content

Newspapers and magazines

• Of all media newspapers and magazinessuffer from biggest ad income decline

• On-line shift fromtext to video and interactivity

• Mobile offering starts asa copy of paper

• Tech-based andspecial interest mags/sitesare early adopters ofnew technologye.g. Wired tablet app

Radio

Weekly music consumption time - Radio Next 2008 US

• 6-10% listening time online• Broadcast radio will loose

market share to personal radio• Existing Radio companies

well positioned to fundpersonal radio, however most are unableto make digital shift

• Mobile phone:- Access to music shop downloads- CD player- Broadcast radio tuner (home, car)- Personal music streamer- Personal radio streamer

Television

• Trends:- End of mass-media advertising growth- Growth of on-line on-demand consumption- TV integrated internet browsing- Personal TV (e.g. using iPad)

• Uitzending gemist- 150 million video’s in 2009- 8 million NOS Journaal- growth 25% in 2009- 2 M unique visitors/month

• Uitzending gemist mobile- 2,7 million video’s on mobile in 2009- last 4 months 230.000 app downloads- last 4 months 2 million iPhone video’s

Mobile in your marketing mix

• Mobile website:- offers better navigation than standard website- works on any smartphone

• App:- dedicated functionality- navigation speed- good user experience- some functionality only available in app- smartphone specific- dependency app store

• Use of dedicated Apps will migrate to mobile websites

• Best to develop both types for leading OS’s

Standard website Mobile website

App

Conclusions

• Shifting dominancy in Mobile Internet value chain• Mobile internet access will surpass

fixed internet access soon• Media convergence is everywhere:

it’s easier than ever to reach a large audience,but harder than ever to really connect

• Mobile Phone unique as personal media device• Advertising on mobile needs to be more

content related than ever (‘contvertising’)• Mobile becomes a must in any marketingmix

Mobile Internet

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