2008 Thomson, a part of the Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license.

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1 Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

2 INTERNET MARKETING: INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 14 The Future -- Wireless and Convergence Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

3 3 Wireless and Converged Devices Are Undergoing the Process Of Adoption and Diffusion. More Rapidly in Europe, Asia and Pacific Rim Less Rapidly in the United States But US Accelerating

4 4 CONVERGED MULTIMEDIA

5 5 CONSUMER ADOPTION PROCESS

6 6 DIFFUSION OF INNOVATIONS

7 PRODUCT FACTORS THAT AFFECT DIFFUSION OF INNOVATIONS 7 Relative Advantage Compatibility Complexity Divisibility Communicability

8 8 GLOBAL INNOVATION Pace of Innovation Accelerating Across Product Types and National Boundaries Requires Collaboration Across Scientific and Technical Disciplines Concept of Intellectual Property Needs to Evolve From Hoarded Possession to Shared Asset

9 THE PACE OF INNOVATION IS INCREASING 9

10 10 O REILLY INNOVATION=OPEN SOURCE Open Source Software Open Platforms Including Apps Open Mobile Devices, Content Services

11 11 INNOVATIVE TECHNOLOGIES Pervasive Computing Ubiquitous Computing Wireless Internet Wireless Advertising, Mobile Marketing Digital Convergence Devices, Media

12 12 MEDIA CONVERGENCE IS HUGE

13 13 The Wireless Web

14 14 What is Meant By Pervasive/Ubiquitous Computing? What Are The Implications Of A Pervasive Computing Environment?

15 CHARACTERISTICS OF PERVASIVE COMPUTING 15 In All Areas of Daily Life Variety of Wired and Wireless Devices Chips Embedded in Everyday Articles Access to the Network Any Time, From Any Place Devices Communicate With One Another (M2M)

16 16

17 SPEEDPASS RFID-BASED PAYMENT SYSTEM 17

18 HELLO, IT S YOUR PARKING METER CALLING 18

19 19

20 20 SMART BUILDINGS

21 21

22 22 6a s OF PERVASIVE COMPUTING Authorized Access Anyone Any Time Anywhere Any Internet-Enabled Device

23 23 LOCATION-BASED

24 24 MULTIMEDIA

25 25 SUPERBOWL MOBILE TIE-INS (2009) Each week throughout the NFL s 17-week regular season, any Sprint customer who uses NFL Mobile Live will be automatically entered for a chance to win two tickets to the NFL s biggest game.

26 MORE SOCIAL NETS?

27 27 AD AGE ADVICE Capitalize on Pregame Buzz Build in Viral Buy Smart Search Terms Real-Time (Twitter, etc.) Good Call to Action EXECUTE!

28 28 EVOLUTIONARY STAGES OF WIRELESS 1G Analog Devices 2G Digital; Voice/Data; 14.4 kbps 2.5G Enhancement of & Internet Access 3G Speed Eventually Equivalent to Broadband

29 29 REASONS FOR DIFFERENCES Early/Satisfactory Adoption Of Wired Internet Lack Of Land-Line Infrastructure Compact, High Population Coverage Cultural Orientation Toward Electronics Greater Standardization Of Wireless Political Barriers To Wireless Licenses

30 30 WIRELESS STANDARDS CDMA (Code Division Multiple Access) TDMA (Time Division Multiple Access) US GSM (Global Standard for Mobil Communications) Europe i-mode Japan Wi-Fi (802.xx)

31 31 NIELSEN MOBILE wireless lines in US 57% remember seeing ads

32 UK MOBILE INTERNET GROWTH 8X GREATER THAN PC-BASED INTERNET GROWTH 32

33 M RECEIVED OBAMA VP TEXT MESSAGE

34 34 DISPLAY ADVERTISING NOT PRIMARY advertising-spending-to-surpass-65-billion-in /

35 35 TESCO MOBILE

36 36 SMARTPHONES CHANGE MOBILE USE

37 41 SNAPPLE s CELL PHONE PROMOTION Figure 14-5

38 44 WIRELESS GOING MAINSTREAM Podcasts are Attracting Sponsors More Recently Blogs are Attracting Advertising

39 45 TRANSACTIONS IN AUSTRALIA Figure 14-7

40 47 BARRIERS TO MOBILE USE

41 48 STRATEGIC DRIVERS OF WIRELESS Context Localization, Personalization Time Sensitivity High Value Voice Activation One-Click Payment Security Privacy Expanded Permission Marketing NOT ADVERTISING

42 49 BUT...ADVERTISING INCREASING 7/new-interactive-video-ad-unitsfor-iphone/

43 50 INDUSTRY SELF REGULATION Choice Control Customization Consideration Constraints Confidentiality Code of Conduct

44 51 Digital Convergence Devices and Media

45 52 What Do We Mean By Digital Convergence?

46 53 A DEFINITION the Power of Digital Media To Combine Voice, Video, Data, Text and Money In New Applications, Devices and Networks Syracuse University Convergence Center

47 54 CONVERGED DEVICES Individual Cell Phones GPS, E911, Camera, Bluetooth PDA + Tablet PCs Game Players Touch Screen Household Wireless Added To Appliances TVs Many Other Devices Connected to Internet

48 56 CONVERGED MEDIA Television Programming, Movies on PCs Video Available on All Wireless Devices Streaming Provides Access Satellite Radio Offers Choice, Access Broadcast and Print Media Go Electronic The List Will Continue To Grow

49 57 DEVICES, MEDIA OPEN PLATFORMS

50 58 The Common Theme is The Network, Not the Device.

51 59 SUMMARY Adoption Of Technological Innovations Process, Diffusion, Product Factors Pervasive Computing, Wireless Internet And Digital Convergence Are Innovative Pervasive Computing 6 a s Different Standards, Infrastructure, And Cultural Issues Differential Growth Rates Important Applications, B2C, B2B Cell Phones, ipods, Other Devices Digital Convergence Is Beginning To Occur Devices, Media Strategic Drivers Of/Barriers To Wireless Marketers Proceed With Care