1 The Mobile Media Authority The Mobile Market Authority Mobile Marketing: Key Trends The Mobile Media Authority Trusted intelligence for a mobile world Evan Neufeld VP + Sr. Analyst M:Metrics, Inc 2007 M:METRICS, INC.
2 Agenda M:Metrics In Brief The View from 10,000 Feet Current Mobile Usage Trends What Is Driving Us Forward (and Holding Us Back) Mobile Marketing: Opportunity Knocks
3 M:Metrics Measurement Approach Mobile Media Ecosystem is Complex Media Converges: Music, Television, Internet, Messaging Programming Decentralized: Operators, Off Portal, Brand Marketers Handset Technology Heterogenous: Hardware, Software, Open/Closed We Measure These Relationships Sophisticated survey techniques Direct behavioral measurement Content/ad monitoring 2007 M:METRICS, INC.
4 M:Metrics: Mobile Media Measurement Comprehensive Market Insight Topline Comprehensive market intelligence to help companies profit from mobile convergence. Direct behavioral measurement of the most active mobile media consumers. Insight on key trends and topics from thoughtleading M:Metrics analysts. Audience Media Insight Advertising Fusion into leading media planning tool for advertisers and marketers (Europe). Audience composition of mobile websites to guide ad targeting and spending. The who, what, where and when of advertising on the mobile web.
5 Agenda M:Metrics In Brief The View from 10,000 Feet Current Mobile Usage Trends What Is Driving Us Forward (and Holding Us Back) Mobile Marketing: Opportunity Knocks
6 Driven by device evolution, speed, and developing business models, the mobile phone is moving from being just a portable phone... to becoming a digital, mobile communication and media management platform.. To 4 billion consumers worldwide
7 However, There are Significant Variances in Usage by Market Place SMS - US lags, IT Leads IM -US Leads TV -ES Select consumption penetration measures, US and EU M:METRICS, INC.
8 In The US, Consumption is Showing Signs of Evolving As We Move From Mobile 1.0 to 2.0 Increase: Text Messaging (+26% YOY) ( +21% YOY) Sent Photos (+49.2% YOY) Sent Videos (+ 51.5% YOY) Watched TV (+ 19% YOY) Ringbacks ( +40.1% YOY) News & Info Via Download (+13.2% YOY) Steady, or Slight Decline: IM ( +5.5% YOY) Ringtones & Graphics (+ 8% YOY) Played Games (-16.8%) News & info via browser, text alerts (-10% YOY) Fixture Evolutionary Device Driven Disruptive Nascent 2007 M:METRICS, INC.
9 Agenda M:Metrics In Brief The View from 10,000 Feet Current Mobile Usage Trends What Is Driving Us Forward (and Holding Us Back) Mobile Marketing: Opportunity Knocks
10 Key Trend: Mobile 2.0 Services Adoption Beating Market Growth
11 Key Trend: Mobile Browsers Increasingly Active In Both the US & the UK, those who use, use more and more often Metered Smartphone Panel demonstrates browsing growth Average Daily page views + 61% YoY Average Daily time spent browsing + 48% YoY 22:35 15:14
12 Key Trend: The Rise of UGC Multimedia Sharing Continues to Surge Across Key Markets + 45% + 58% + 50% + 64% + 88% + 64% + 46% + 79%
13 Key Trend: PC to Mobile Connection Increasingly Important Sep 07 to Jan 08 44% growth in transferred from PC + 31% carrier music store + 31% friends and family Key driver of receptivity: it connecting the mobile ad experience to the PC.
14 Key Trend : News & Information Usage On Device Mirrors the Web Fast, Immediate, & On the Go Information Browsers Over indexing for use of Projected Reach % Browser access subgenre: news/info Subs Accessed women's magazine content 2,012, % non-voice services by Accessed men's magazine content 2,065, % younger demos & key Accessed horoscopes 3,414, % Accessed dating service 3,704, % Accessed comics or humor 3,737, % ethnicities Accessed shopping guides 4,280, % Accessed travel service 4,601, % Similar brands driving Traded stocks or accessed financial account 5,674, % Accessed traffic reports 5,902, % Accessed business directories 6,764, % usage Accessed restaurant information 6,932, % Accessed stock quotes or financial news 8,191, % Crackonomics of usage Accessed movie information 8,879, % Accessed entertainment news 11,074, % Accessed sports information 12,821, % Accessed news 14,735, % Accessed weather 15,924, % Accessed web search 16,123, % Any news or info 33,542,805, 14.8% Many top subgenres are location sensitive Source: M:Metrics MobiLens survey, 3 mo average ending May 2008, n=33, M:METRICS, INC.
15 Diverse, Multi-Modal Usage the Rule not the Exception Browsed (14.8%) Via SMS (9%) Via Downloadable (5%) Browser access subgenre: news/info Projected Subs Reach % Projected Subs Reach % Projected Subs Reach % Accessed travel service 4,601, % 2,112, % 1,092, % Accessed traffic reports 5,902, % 2,737, % 2,264, % Accessed restaurant information 6,932, % 2,825, % 2,102, % Accessed movie information 8,879, % 3,854, % 1,617, % Accessed maps 10,742, % 3,916, % 4,461, % Accessed weather 15,924, % 7.0% 5,380,959 24% 2.4% 3,662,433 16% 1.6% Accessed web search 16,123, % 3,669, % 1,819, % Source: M:Metrics MobiLens survey, 3 mo average ending May 2008, n=33, M:METRICS, INC.
16 Agenda M:Metrics In Brief The View from 10,000 Feet Current Mobile Usage Trends What Is Driving Us Forward (and Holding Us Back) Mobile Marketing: Opportunity Knocks
17 The 4 Laws of Mobile Phone Adoption Voice Is NOT the Killer App Pricing Impacts Adoption iphone vs. Blackberry Devices Impact Usage Better devices = more usage Bandwidth Increases Consumption Consumers want to drink from the hose 2007 M:METRICS, INC.
18 Strong Adoption of Unlimited Data Plans 35%
19 Smartphones Build an Audience: 7% & Growing 6.25% Penetration >3X Video >4X Music >4X Browsing >4X Social networking
20 Impressive 3G Growth Continues ~3X Video >2X Music 1.5X Browsing 1.4X Social networking
21 iphone Lives Up to Hype 2007 M:METRICS, INC.
22 Agenda M:Metrics In Brief The View from 10,000 Feet Current Mobile Usage Trends What Is Driving Us Forward (and Holding Us Back) Mobile Marketing: Opportunity Knocks
23 Mobile Advertising: Where On the Hype Curve Are Mobile Advertising: Where On the Hype Curve Are We?
24 Overall Mobile Marketing Opportunity by the Numbers: Many Positive Signs Emerge Consensus forecast of 16 billion globally by 2011 Averages all up Average mobile marketing budgets UP (100% YOY) Average advertiser churn DOWN (50% 07 vs.. 30% 08) Number & Diversity of Mobile Advertisers UP Average spend per campaign UP ($60 -$100k) Drive towards standards has made headway.
25 Overall Mobile Marketing Opportunity by the Numbers: A Market Place Still Largely Defined By Its Inhibitors Usage: No consensus on what key device features needed for mobile to be a dependable advertising platform User Interface: Proliferation of different designs of handheld Interface, buttons, & keypads complicate Advertising These variables multiply complexity & cost when it comes to advertising on mobile devices No clear consensus on what consumers will/ will not tolerate No definitive studies in the space around consumer acceptance of ads, nor of the effectiveness of mobile as a platform relative to other mediums Concerns around l/t decreasing effectiveness of mobile advertising Various camps seeing the handset ad model very differently, specifically As A Branding Tool: Perceived value in aggregating a quality audience for advertisers, model/ value proposition similar to magazines As A Direct Repose Tool: Perceived value as a tool to drive contextual, often location based activities As a Marketing Tool: Perceived value is the phone as an extension of other mediums, place to finish conversations started elsewhere Format Wars: Banner vs. SMS vs. Video Ad Model Issues Platform Issues Consumer Response Issues Marketplace Issues Deal Structures NOT standard Impact /effectiveness of campaigns NOT measurable enough Time to market NOT quick enough NOT enough Standards On-Deck vs... Off-Deck Carrier Lack of Flexibility (perceived)
26 Overall Mobile Marketing Opportunity by the Numbers: 5K Key Requirements For Effective Mobil biladvertising i It must lend self to targeting Permission-based advertising gains highest top-2 box response rating while relevance rated surprisingly low. It must accommodate a wide range of marketing activities and pricing / inventory models It must allow for optimization & management of campaigns It must provide clear, concise and actionable reporting Must provide value back to consumers Most respondents open to advertising i in exchange for subsidized d phone services.
27 Mobile Web Drawing Diverse Advertisers Advertiser by Sector, Oct. '07 IT Equipment 1.4% Consumer Electronics 1.6% Specialized Consumer Services 2.2% Automobile Manufacturers 2.3% Diversified Banks 2.4% Systems Software 2.8% Communications Equipment 5.3% Broadcasting & Cable TV 6.2% Application Software Wireless Telecommunication Services Internet Retail 10.8% 11.5% 13.5% Content Provider 29.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Share of 67,021 Ad Instances
28 So In Summary The cellphone is a unique platform for both consumers & marketers Evolution can be good Popular mobile content t mirrors popular web content: t immediate, necessary, & on-the-go Smarter phones & faster networks drive uptake of services Marketers must give value back to consumers to realize the full potential of the mobile advertising opportunity
29 Questions? Evan Neufeld Senior Analyst
30 Methodological Notes MobiLens Data The M:Metrics US, UK, Germany, France, Spain, and Italy panels are nationally representative samples of mobile subscribers age 13 and older. Survey fieldwork is conducted monthly, collecting responses from approximately 35,000 mobile subscribers across these six countries in each wave. New, independent samples are drawn each month to permit the continual tracking and trending of changes in mobile market behaviors. The M:Metrics survey has been carefully constructed to take advantage of M:Metrics proprietary device, operator service, and content databases. Intelligence has been built into the survey questionnaire allowing respondents to indicate handset models with an extremely high degree of accuracy. It also ensures that respondents are subsequently exposed to an appropriate series of questions related to the use of their specific mobile devices. Each month s sample is separately balanced to accurately reflect the total universe of mobile subscribers. Respondent samples are balanced a relative e to each country s Census-based demographic profiles for persons s age 13 and older as well as to operator network market shares based on each operator's quarterly reports to ensure appropriate representation of each country s mobile market. The data are projected to the total universe of subscribers using estimates of total active mobile phone subscribers derived each quarter from M:Metrics review and analysis of network operators quarterly reports. Notes: Data reflects individual users, as opposed to subscription lines or accounts. Survey respondents who use more than one mobile handset are asked to identify and base their responses upon their activity on the primary handset. Time periods are as indicated on each page. Three-month averages reflect monthly usage on a three-month moving average. 3 Month Average Ending January 2007 n= 30,567 Mobile Phone Users, US 3 Month Average Ending January 2008 n= 31,389 Mobile Phone Users, US 2007 M:METRICS, INC.
31 Subsidization : Where To Play the Ad Card in Mobile? Source: M:Metrics MobiLens survey, 3 mo average ending December , n=33,237
32 SMS Advertising Shows Results Texting proving an effective vehicle for ads and ad response 13% of people receiving text ads responded 5% of people receiving i text t ads bought (40% of responders) 9% of text users sent text in response to ad 15% of those responders bought Source: M:Metrics MobiLens survey, 3 mo average ending December , n=33,237
33 Mobile Music Audience Up 36% in 5 Months 26% listening almost every day
Key Trends in Mobile Content Usage & Mobile Advertising February 12, 2009 Kevin Muoio Agenda About comscore M:Metrics Mobile Handset Landscape Mobile Content Consumption State of Mobile Advertising Mobile
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