Advertising. Christina Bäck. Head of Advertising

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1 Advertising Christina Bäck Head of Advertising

2 Voices from the industry Reflections from industry experts Mindshare Ericsson AB

3 Why doesn t it take off? Significant Growth Potential for Ad spend on Mobile media $Bn $185 $184 90% $165 80% $145 $135 70% $125 60% $105 50% $85 $65 $62 40% $45 $40 $43 30% $25 20% $6 $5 10% -$15 TV News Magazines Radio Internet Mobile 0% Ad Spending by Media Media Exposure Global Mobile Advertising Spend (US$ Millions) Source CAGR Strategy Analytics , , , , % Strategy Analytics , , , , , % PriceWaterHouse Coopers 4, , , , , % Strategy Analytics , , , , , % emarketer , , , , ,149.0 Ericsson AB

4 Mobile Advertising study London Stockholm The main objectives of the study Understand consumers attitudes to and expectations on mobile advertising Understand the media and advertising industry s view and take on mobile advertising Understand the compliance between consumers attitudes and expectations on one hand with the industry s views and strategic aims on the other hand New York New Delhi Hong Kong Buenos Aires Ericsson ConsumerLab Mobile Advertising study 2009 Focus groups and In depth interviews with Consumers Interviews with media and advertising Industry Ericsson AB

5 Consumer findings Mobile Advertising - from Negative to Positive reaction Today, mobile advertising awakens mostly negative attitudes... Spontaneous reaction based on toady s experience NEGATIVE Imposed Intrusive Disturbing Irrelevant Costly But with the hygiene factors in place Relevance No cost for ads Agreement Immediate value Uncomplicated Consumer control..it will be POSITIVE Interesting information Convenient Entertaining Positive surprise Exclusive Save money...but has a strong potential to become a positive consumer experience in the future Source: Ericsson ConsumerLab Mobile Advertising study 2009 Ericsson AB

6 Industry view There is great ambition, but a number of market barriers must be overcome The aim for the Mobile Marketing Industry is to use the Mobile channel for CONSUMER TARGETING CONSUMER AND MEDIA ACTIVATION CONSUMER ENGAGEMENT But the Industry is currently obstructed by a number of barriers Ericsson ConsumerLab Mobile Advertising study 2009 The complexity of the mobile channel Lack of best practice cases Lack of global standards The lack of eco system The operators Lack of metrics Limited inventory Immature brands Handset limitations The media agency business model Ericsson AB

7 To make it happen Ensure consumer acceptance Remove industry barriers ACTIVATE THE OPERATORS MEDIA AGENCIES DIALOGUE by fulfilling the Consumer requirements Hygiene factors Agreement Control Relevance Immediate value Uncomplicated ESTABLISH THE CATEGORY and Activate the targeting potential Opt-in Are ads ok? Yes No Type? SMS MMS Banner Category Sports Beauty Music Ads per day? Brand Ericsson ConsumerLab Mobile Advertising study 2009 Ericsson AB

8 Details: Uncovering the trends CPM rates are holding steady, but are expected to drop over time as the advertising market matures. Typical CPM for Mobile Advertising in USA = $15 $30 Germany Vodafone $77 The CPM levels variation across regions seems to occur due to the market maturity in terms of ARPU levels. Germany O2 $123 UK O2 $20 $40 Ericsson AB

9 It is all about Relevance and Reach Relevance Delivering the right content in the right context to the right person Targeted and personal, but not intrusive Reach Reach as many people as possible Across media, platforms, service, devices and territories Revenues Ericsson AB

10 Reach users with relevant advertising 1 Media Buyers 2 Media Buyers 3 Media Buyers $$ ONE interface ONE interface Orchestration Brokering? SMS MMS WAP GW Mob TV Inventory SMS/MMS WAP Mob TV Operator X Multi-publishers Operator X Operator Y Operator Z Multiple operators Publishers Ericsson Ad Orchestrator Enablers and Enhancers Ericsson Ad Broker Ericsson AB

11 The Partnership Program Working with the Advertising industry New Ericsson initiative since Jan 2009 Knowledge sharing and cooperation Involvment from the whole value web Selected partners this far Mindshare MediaCom Optimedia MediaEdge:CIA Jack Morton Mobile Behaviour Ansible mobile Pros De La Com Vivaki Ericsson AB

12 Ericsson AB