Mobile Marketing & Advertising: The New Eldorado?
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- Cornelius Elliott
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1 Mobile Marketing & Advertising: The New Eldorado? Marketing Event, Vienna, November 9th 2007 Thomas Husson, Senior Analyst, European Mobile
2 Jupiter Research: An International Research And Advisory Company Focusing On The Digital Economy Est Telecoms / Media / Internet Focus Headquarters in New York. 60+ Analysts in San Francisco, London, Paris, Berlin, Madrid and Scandinavia Field regular Consumer surveys / Canvass market leading executives - Build sophisticated market forecasts Client unlimited access to reports and analysts Consulting and exclusive custom projects JupiterResearch, LLC
3 2007 Research Offering Personal Technology & Access Broadband PC & Console Games Personal Technology Wi-Fi Mobility Wireless Marketing & Advertising Advertising & Branding Marketing Online Behavior & Demographics Mobile Media & Marketing *NEW Search Marketing SMB Marketing Social Marketing *NEW Media Focus Music News & Information Online Media & Programming Television & Filmed Entertainment Industry Focus Automotive Financial Services Health Retail Travel Web Technologies & Operations Customer Service & Support Payments & Transactions Site Technologies & Operations European Focus Broadband and VoIP Commerce Content & Programming Country Focus Digital Home Marketing & Advertising Market Forecasts Mobile JupiterResearch, LLC
4 European Mobile Recent Reports Mobile Social Networking Impact of the iphone in Europe Mobile Search: Finding Opportunities in a Nascent Market Fixed-Mobile Convergence: Leveraging Services to differentiate from competition Mobile Youth Consumer Survey: Targeting digital natives and keeping them loyal Multimedia Messaging: reviving MMS The future of mobile browsing: leveraging the Internet model Mobile Video: Anticipating an on-demand future European Mobile Forecast, : Identifying Main Trends in the Mobile Services Market Consumer-Created Content: Defining opportunities for mobile operators Ad-funded mobile services: emergence of a new business models JupiterResearch, LLC
5 AGENDA What's the current reality of the mobile ad market? What are the drivers and inhibitors for the uptake of this nascent market? How quickly will it grow? What is the potential of ad-funded business models in the mobile consumer space? JupiterResearch, LLC
6 10 Over-Hyped issues 3,000,000 mobile users More mobile phones than PC Penetration rate>100% Mobile Wimax is the next big thing SMS is bound to disappear Multimedia messaging is dead Mobile TV is about to be mass-market Mobile advertising ~ > 10,000,000,000 $ Click Through Rates on mobile >>> Internet Triple digit growth JupiterResearch, LLC Source: JupiterResearch, 10/2007
7 Except 3G Early Adopters & Youth, Majority of Mobile Phone Owners Do Not Use Mobile Multimedia Services Watched a short video Sent more than 10 SMS / day Shared mobile content with friends Accessed the Internet from my mobile 3G =13% In 2006 >50% in 2010 Listened to full music tracks Received and sent s Used mobile IM Watched Live TV With 3G phones with mobile phones With mobile phones None JupiterResearch, LLC 0% 20% 40% 60% 80% 100% Percentage of Consumers by Phone Type Question: During the past three months, which of the following activities have you done at least once on your mobile phone? Source: JupiterResearch/Ipsos Consumer Survey (9/06), n = 3,680 (consumers with mobile phones, UK, France, Germany, Spain, Italy, and Sweden only)
8 Create a Sticky Audience First. Monetize Second. BUSINESS MODELS HANDSETS & NETWORKS PRICE CLIENT EXPERIENCE A Holistic Approach to Build Market Foundations JupiterResearch, LLC Source: Jupiter Research (10/2007)
9 Several Business Models Are Likely To Co-Exist in an Evolving Ecosystem New Entrants impact Handset Manufacturers dilemma Operators role New Payment methods Non-cellular networks Internet Convergence Pay-per Access / Download Subscriptions Ad-funded Free JupiterResearch, LLC
10 Mobile Advertising Revenues ~240M in the Advanced Japanese Market* 3G Mobile Internet =64% penetration rate** =87% penetration rate** JupiterResearch, LLC Source: * Dentsu, ** Japanese Ministry of Internal Affairs and Communications
11 Issues to Be Ironed Out To Foster Market Uptake Overcome consumers resistance with opt in / nonintrusive, personal & relevant ads Make sure privacy concerns, best practices and guidelines are implemented Define and implement independent measurement and performance tools Acquire internal competencies and recommend mobile in the marketing mix Make the most of individual, contextual (locationbased) & behavioral targeting capabilities Have Realistic Revenue Expectations in the short term JupiterResearch, LLC Source: JupiterResearch, 10/2007
12 Key Takeaways Barriers will be removed or lessened in the next few years: more affordable data plans, good enough mobile broadband experience, compelling handsets However, today mobile multimedia services are only on their way to reach critical mass Mobile Advertising is still in its infancy and will remain in an educational / standardization phase in the next 2/3 years Advertisers should test the mobile channel by targeting the younger generation, implementing a cross-media strategy based on ROI JupiterResearch, LLC
13 Vielen Dank für Ihre Aufmersamkeit! or Gundi Schroeer, Account Manager Austria (+49)
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