Mobile Social Networking Research project 2008

Mobile Social NetworkingResearch project

2008

By Nick Lane, analyst partner, ITM

• Informa Telecoms & Media is the leading provider of business intelligence and strategic marketing solutions to global telecoms and media markets

• .

• Driven by constant first-hand contact with the industry our 100+ expert analysts, researchers and journalists working in 14 countries produce a range of intelligence services including news and analytical products, in-depth market reports and datasets focused on technology, strategy and content.

• Informa Telecoms & Media – Head Office• Mortimer House, 37-41 Mortimer Street• London W1T 3JH, UK

• Website: www.informatm.com

• For further information about Informa please contact: [email protected] - +44(0)2070175558

About Informa Telecoms & Media

About Direct2 Mobile• Nick Lane, chief researcher/writer for Direct2 Mobile, an outsource

company covering the mobile data industry, delivering research, analysis and consultancy

• Direct2 Mobile specializes in

• mobile social networking• mobile Internet • mobile content & entertainment• messaging• mobile marketing and advertising• operator strategy• mobile consumer behaviour

• Until August 2007, Principal Analyst for mobile content and applications at Informa Telecoms & Media

• Have tracked the mobile data market for 8 years. Covering mobilemarket for 11 years, initially as a journalist, and have adopted a more analytical and consultant role over the past 4 years.

• Direct2 Mobile is an analyst partner for ITM

Agenda

• The mobile social networking opportunity• The research• Italy• Spain• Conclusions

Why are you here?

By 2012 there will be 428 million users of mobile social networking generating €19.7 billion

Total global mobile socialnetworking users, 2007-2012

Total global mobile socialnetworking revenues, 2007-2012

Source: Informa Telecoms & Media

The playersPelago Whrrl, Rummble, KamadaSocialight, Vodacom TheGrid

Nokia, MOSH, blinko, JuiceCaster, Mig33, MOKO, LookAtMeTV, Zedges.net

Loop Mobile MOKO, aSmallWorld, MocoSpace, DeNA Mogabe-town

YouTube Mobile, Peperonity, JuiceCaster, Toxom viGloo, EZ Gree

blinko, MySpace, Bebo Mobile, FacebookMobile, Piczo Mobile, Orkut Mobile

FunkySexyCool, CyWorld, Eyeka, Itsmy.com, Mixi Mobile

Jumbuck Fast Flirting, PlutoLife MobiFlirt, Flirtomatic, myGamma

The Future

Me, My Circle and OurContent

Me, My Circle

Make me a Star

Merge My Onlinewith My Mobile

Let MeBe Me

Let MeIn

Friending: belonging to a group or groups in a community with known (or unknown) people in real/physical world

Entertainment: consuming all types of professional and UG content, and involves uploading, downloading and purchasing content.

Professional: develop and/or meet professional aspirations.

Fame: for people seeking attention to contribute their UGC.

Causes: members wanting to create social value around making the world a better place.

Social shopping: ask questions about products, obtain recommendations from friends, or can organize and negotiate low-margin purchases.

Competition: rewarding winners of mobile games with prizes and by keeping track of the user’s worldwide ranking.

Mobile community segmentation

The research

Total mobile social networking users, 2008-2013


The total number of mobile social networking users in SIBUU will be 14.86 million in 2008 rising to 96.01 million by 2013

Total mobile social networking registrations, 2008-2013


The number of mobile social networking registrations in SIBUU will be 41.30 million in 2008 growing to 161.65 million

Research from the five markets

reveals that on average, one mobile social

network user will be registered with 2.78 sites in 2008 and 1.68 sites by

2013

Total mobile social networking revenues, 2008-2013


The mobile social networking market for SIBUU will be €742.62 million in 2008, increasing to €2.1 billion by 2013 – CAGR 19%

The Italian mobile social networking market

Italian mobile social networking registrations, 2008-2013


There will be 1.81 million mobile social network users in 2008 rising to 12.99 million in 2013

Average number of registrations per user 2.96


Italian mobile social networking revenues, 2008-2013The Italian mobile social networking market will be worth €107.25 million in 2008, rising to €303.76 million by 2013


Friending, Entertainment and Fame will generate

98.1% of revenues


94% of revenues

Friending is worth €58.33 millionEntertainment is worth €35.34 millionFame is worth €11.5 million


Market drivers - Italy

• Mobile data market developing

• Flat-rate data plans to reach tipping point in 2010

• Number of 3G subscribers will increase from 25 million in 2008 to over 86 million in 2013

• 8 million mobile internet browsers in 2008, rising to 28 million in 2013

• 1.15 billion page impressions per month

• Emerging off-portal market (on-portal accounts for 20-30%)

• Mobile social networking accounts for one-third of total mobile Internet traffic in 2008

Italy findings and conclusions• Strong growth for mobile social networking services emerged during 1H08, though market remains in development phase

• Top three site: MSN Live SpacesMySpaceYouTube

• Italian mobile operators less certain about their mobile social networking strategies with limited on-portal access to mobile social networks

- TIM partnered with Shozu- Vodafone Italy launched My Communities- 3 provides links to MSN Live Spaces and Facebook off-portal

• Mobile operators capitalising on the appeal of mobile social networking to drive flat-rate data bundle adoption

• As the number of mobile social networking registrations per user falls from 2.96 to 1.43 in 2013, users will become more selective regarding which sites they access representing a mature market.

Italy findings and conclusions cont. Italian mobile subscribers willing to pay for services –

• Market acceptance of subscription up to €15 p/m to access all-you-can-eat data and traffic mobile social networking service

• Subscription model will generate 13% of total mobile social networking revenues in 2008 rising to 17% in 2013

• Access/traffic will generate 69% of total mobile social networking revenues in 2008 falling to 37% in 2013

• By 2013, advertising will contribute 36% of revenues

Acceptance of subscription services and advertising by consumers enables multiple business model opportunities

The Spanish mobile social networking market

Spanish mobile social networking registrations, 2008-2013


There will be 1.08 million mobile social network users in 2008 rising to 8.67 million in 2013



Spanish mobile social networking revenues, 2008-2013The Spanish mobile social networking market will be worth €81.60 million in 2008, rising to €210.82 million by 2013



97.9% of revenues


93.6% of revenues


Friending is worth €90 millionEntertainment is worth €71.54 millionFame is worth €35.89 million

Market drivers - Spain

• Mobile data market emerging beyond messaging

• Slow mobile Internet adoption rate

• Flat-rate data plans late to launch – compared to rest of Europe

• Number of 3G subscribers will increase from 19.07 million in 2008 to over 51 million in 2013

• On-portal accounts for 75% of total mobile Internet traffic

• 5.71 million mobile Internet browsers in 2008, rising to 21.83 million in 2013

• 750-800 million page impressions per month

Spain findings and conclusions• Advanced on-line social networking market with 75% business users – unique to Spain

• Partnerships occurring between operators and mobile social networking companies

• Telefonica Moviles has partnered with Flickr• Vodafone partnered with Tuenti, Facebook and MySpace

• High mobile social networking registrations of 3.94 communitiesrepresents an immature market. This will drop to 1.53 sites per user by 2013

• Popular online site hi5 launched a mobile version in August –expected to become one of the country’s leading mobile social networking sites for the youth demographic

Spanish findings and conclusions cont. Similarities with the Italian marketplaceSpanish market prepared to pay subscription to access services

• Subscription model will generate 11% of total mobile social networking revenues in 2008 rising to 15% in 2013

• Access/traffic will generate 72% of total mobile social networking revenues in 2008 falling to 39% in 2013

• By 2013, advertising will contribute 36% of revenues

Slow development of mobile Internet has resulted in the lack of a dominant mobile social networking player in the

Spanish market

The playersPelago Whrrl, Rummble, KamadaSocialight, Vodacom TheGrid

blinko

Loop Mobile MOKO, aSmallWorld, MocoSpace, DeNA Mogabe-town

YouTube Mobile, Peperonity, JuiceCaster, Toxom viGloo, EZ Gree

blinkoFunkySexyCool, CyWorld, Eyeka, Itsmy.com, Mixi Mobile

Jumbuck Fast Flirting, PlutoLife MobiFlirt, Flirtomatic, myGamma

The Future

Me, My Circle and OurContent

Me, My Circle

Make me a Star

Merge My Onlinewith My Mobile

Let MeBe Me

Let MeIn

addresses the categories of:

Friending

Entertainment

Fame

Mobile community segmentation

UK* 2008 2013

Mobile subs 49.40 52.45

Mobile browsers 14.36 29.93

Mobile SN users 3.53 12.93

Mobile SN page impressions

66,696 169,130

Italy* 2008 2013





53,626 81,574

Spain* 2008 2013





38,402 56,616

US* 2008 2013





93,460 261,280

Brazil* 2008 2013


Mobile browsers

5.08 37.44



8,739 57,969

The future

*All figures in millionSource: Informa Telecoms & Media

The communication prism

The conversation prism is a “way of capturing and

presenting the oft under-estimated extent, reach, and

depth of the Social Web. [This map of the Web 2.0 landscape] is a reference

tool for Social Media professionals to start

listening to the voices that define and steer your markets,” Brian Solis

Source: www.briansolis.com, Informa Telecoms & Media

• Mobile social networking has not even scratched the surface of its true potential

• Mobile operators are making it a core component of their communications strategy

• The major online brands are playing their part in what is undoubtedly a recruitment campaign for the mobile industry

• Usage (registrations) will become more streamlined and selectivein terms of the sites to which they are members and to whom theywill connect over the next five years.

• Presently, online social networks like Facebook or MySpace are more-often-than-not “connecting the disconnected”.

Conclusions

• It is Informa’s belief that the requirement to communicate between friends on social network has been overlooked on mobile • Focus has been dating or flirting with strangers • While mobile provides the power to extend a user’s social

network and connect with people potentially from anywhere in the world, the ability to increase a user with their existing and immediate social network has largely, been neglected

• Presently, the mobile social networking sector is being driven by the Internet • increasingly difficult for internet-based social networks • Creating opportunity for the mobile-only players

Conclusions

It is Informa’s belief that the most successful mobile social network players in the long term will be the pure-play companies that embrace the communication and functionality of the mobile device.

• Communication• Location• Immediacy• Relevance

Conclusion

For more information on the white paper sponsored by Buongiorno,

please contact:[email protected]

Mobile Social Networking Research project 2008

Documents