Tor Jacobsen - Digital compass - Where are we going, who's leading the way?

Digital compass – Where are we going, who‘s

leading the way?

Tor JacobsenManaging DirectorVG MobileNorway

Monetizing on mobile platformsTor Jacobsen, VG Mobile

Mobile media usage is growing very fast:VG has a clear number one position in Norway

Source: TNS GallupTop 6 mobile players in Norway – (page impressions)

Example: Christmas eve 2009 - 2011. Distribution of visitors to the front page of vg.no per platform

Mobile device share of vg.no is strongly increasing. The total digital usage is growing rapidly.

Share of visitors

Source: Relationship Capital, Top Mobile Internet Trend, June 2011

Time used on mobile does not reflect money spent. Should over time be more consistent.

Mobile ad revenue: It used to be nothing, now it is a significant share of our revenue.

Ad revenue development VG Mobil January 2009 – until now

«Repetitive now» «Bored now» «Urgent now»

Point of purchase

Why is mobile so great?

A Case Study: Heat Pumps

• Cost: 85 000 NOK excl. VAT (netto)

• Click: 17 554• No. of inspections: 170• No. of sales: 119• Average order value: 20 000,-

• Turnover: 2 380 000 NOK

Result:

Mobile sells goods.Example: Retailer Coop

36 % sales growth in the test period, compared with the base period.

Sales development

Average week 6-9 Average week 11-12

Monday morning

Tirsdag morgen

Tuesday morning

Advertising in VG Mobil = no.1 in App Store

Source: Chetan Sharma, January 2011

Mobile ad effect is high compared to other channels

Niche Apps make new ad possibilities:Connect your brand with relevant user situations.

Pent.no

What about the iPad?

A lean-back experience gives high awareness

iPad ads examples:

ARPU is also increasing, which gives future hope!

Monthly revenue per user VG Mobile

• The future for mobile advertising seems very bright• Mobile is a powerful ad tool for all tactical, and sales driven

advertisement.• The mobile device is personal, close to the point of purchase and

give through apps possibilities to be very targeted on user situations and target groups.

• iPad is a lean back medium, and we try to make products and ads that meet these needs.

• The iPad as an ad tool give a very high effect and a new way to build brands digitally.

• For mobile platforms, VG is more and more ad focused instead of user payment oriented. We think advertisement will be the main future revenue stream.

Summary

Thank you!