The company J'son & Partners Consulting presents main findings of the research "Mobile marketing main market drivers." To determine the boundaries of mobile marketing J'son & Partners Consulting experts included in the concept of mobile marketing the following segments: Mobile advertising a set of measures aimed at attracting customers via mobile phone: OnScreen advertising in online applications, video advertising, media advertising; messages Promotional SMS-and MMS-mailing, «SMS-tails», ICB, USSD 1 ; context advertising advertisement displayed when searching in the phone, and its partner sites. others specialized advertising in applications, SMS-marketing BTL-actions, system of informing customers via SMS; loyalty programs discount programs, mobile loyalty cards; promo applications development of applications for direct brand promotion; msmm (mobile social media marketing) mobile marketing in social networks. The notion of mobile marketing doesn t include: the market of application development (only a small segment associated with the promotional applications is considered in the report); the market of mobile commerce; the market of mobile content. Fig. 1. The structure if mobile marketing 1 SMS-tails advertising message at the end of service SMS, ICB (Interactive Cell Broadcast) is a technology that allows to to send GSM subscribers through Cell Broadcast channels short message, periodically appearing on the phone's screen in the form of short messages (teasers) USSD standard service in GSM, allowing to organize interactive communication between the network subscribers and service application in the mode of transmission of short messages. [registered trademark]. 1
J'son & Partners Consulting considers a detailed structure of participants of the Russian mobile marketing and advertising market in the context of the following players: mobile operators; players of media and contextual online advertising; service and content providers; advertising and BTL-agencies; mobile advertising agencies; payment aggregators and system. The global market of mobile marketing Fig. 2. The global market of mobile marketing in monetary terms, billion USD, 2012-2016 The study conducted by J'son & Partners Consulting considers main drivers and trends of the global market of mobile marketing in 2010-2016. According to J'son & Partners Consulting estimations, in 2012 the total global market of mobile marketing was about $ 13.9 billion. The Asian market of mobile marketing in 2012 will remain the largest, but according to J'son & Partners Consulting estimations, in 2013 the first position in terms of size will be held by the market in North America. Trends in the global market of mobile marketing J'son & Partners Consulting experts thoroughly considered the main trends of the world market of mobile marketing: increase in the number of mobile devices and increase in the share of smartphones; increase in the influence of mobile social networking in the market of mobile marketing; spread of new operating systems: Android, ios, Windows; increase in the number of tablet computers; development of mobile payment systems and mobile banking. [registered trademark]. 2
The Russian market of mobile marketing The size of mobile marketing in Russia, according to J'son & Partners Consulting, in 2012 will be $ 114 million, and by 2015 the market will grow by more than twice, to $ 404 million. Fig. 3. Market size of mobile marketing in Russia in monetary terms, 2012-2015 The largest segments of mobile marketing are: mobile advertising, loyalty programs, SMS-marketing, mobile applications, social networks marketing. Fig. 4. Market structure of mobile marketing in Russia, 2012 Mobile advertising 11% 2% 4% SMS-marketing (actions) Loyalty programms 21% 53% Mobile applications 9% Integrated companies Mobile social Media Marketing [registered trademark]. 3
Trends, drivers and barriers of the Russian market of mobile marketing J'son & Partners Consulting experts thoroughly examined key trends, drivers and barriers of the Russian market of mobile marketing: Drivers 3G, LTE, NFC expansion; increase in channel capacity Expansion of smartphones and the wide spread of mobile devices Technological perfection of smartphones; ecommerce Barriers Limitations and challenges of SMS mailings Lack of market statistics; advertisers' inactivity Lack of experience using Mobile marketing tools Insufficient quality and penetration of fast data networks Trends Popularity of App advertising Development of mobile ad networks Emergence of mobile loyalty programs Growing popularity of LBS and geotergeting advertising Growing impact of social networks In the study of mobile marketing J'son & Partners Consulting experts considered successful cases of mobile marketing in both Russian and foreign markets. Table. 1. Successful business cases examples Client: company Alkor and Co Product: L etual Mechanics: placing banner ads on mobile network sites Plus 1 WapStart The number of views: 2,9 million The number of clicks: 3 333 Average CTR: 0,12% Client: KIA Mission: attraction of new customers Solution: technical support of actions, SMS-service Objective: announcement of special conditions of KIA 2012 new models Mechanics: sms-sending targeted by age and income through the Moscow subscriber based of mobile companies The number of contacts: 50 000 unique subscribers Conversion in calls: 0,25% * The table above reflects only a part of the business cases studied in the full report [registered trademark]. 4
Adjacent markets The study of mobile marketing J'son & Partners Consulting provides a detailed analysis of adjacent markets: the sales market of mobile phones, smartphones and tablet computers market. According to J'son & Partners Consulting, the amount of personal tablet PCs in Russia will reach 3.2 million units by the end of 2012. Fig. 6. The total number of personal tablets and smartphones in Russia, mln, 2012. According to J'son & Partners Consulting, cash Park smartphones in 2012 will be equal to 27.2 million units., And cash park tablet PC in Russia will be about 3.2 million units. According to J'son & Partners Consulting, the number of Android tablet users in Russia will exceed the number of Tablet PC users running ios in 2012. Smartphone s and tablet PCs sales show rapid growth allowing to involve a higher percentage of the audience in the sphere of influence of mobile marketing. [registered trademark]. 5
Fig. 7. Total mobile data traffic in Russia, billion MB, 1Q 2010 2Q 2012 140 120 100 80 60 40 20 0 125,8 110,7 86,5 62,9 45,3 52,3 31,7 10,0 13,8 19,0 1Q 2010 2Q2010 3Q 2010 4Q 2010 1Q 2011 2Q2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 According to J'son & Partners Consulting, Russia has experienced a rapid growth of mobile data traffic showing a steady increase in the consumption of mobile Internet and creating favorable conditions for the growth of mobile marketing in Russia. Conclusion Mobile marketing is one of the fastest growing segments of global telecommunications market. The market volume will reach $13.9 billion in 2012 increasing to $56.2 billion by 2016, according to J'son & Partners Consulting. The volume of Mobile marketing market in Russia, according to J'son & Partners Consulting, will reach $114 million in 2012 increasing to $ 404 million by 2015. According to J'son & Partners Consulting, Russia has experienced a rapid growth of mobile data traffic, showing a steady increase in the consumption of mobile Internet and creating favorable conditions for Mobile Marketing market development in Russia. The share of smartphones will reach 45% of the total amount of personal cellular phones in 2014, it is a key indicator in predicting the positive dynamics of the Mobile Marketing market in Russia until 2016. The main trend of the Market of mobile marketing in Russia in 2012 are: the popularity of advertising in mobile applications, the emergence of advertising campaigns using "augmented reality", the emergence of mobile loyalty programs, the growing popularity of LBS and geotargeting advertising, growing impact of social networks on the market for mobile marketing. [registered trademark]. 6
Contents of the full report «The Russian market of mobile marketing, 2010-2016» 1. Introduction. Definitions, Information sources and methodology of the research Classification and terminology of the market of mobile marketing 2. Review of the global market of mobile marketing 2.1. Global market size of mobile marketing 2.1.1. Global market size of mobile marketing in monetary terms, 2010 2Q2012 2.1.2. Global market structure of mobile marketing by macro regions, 2010 2Q2012 2.1.3. Adjacent markets size 2.1.3.1. Global market of mobile communication The number of mobile subscribers in the world, 2010 2Q2012 The total mobile data traffic, 2010 2Q2012 Analysis of 3G/4G network coverage, 2Q2012 2.1.3.2. Global market of mobile devices sales Total sales of mobile phones in natural terms, 2010-2Q2012 Total sales of smartphones in natural terms, 2010-2Q2012 Total sales of Tablet PCs in natural terms, 2010-2Q2012 2.2. The park of mobile devices 2.2.1. Smartphones Total park of smartphones, 2010 2Q2012 Distribution by platform, 2010 2Q2012 2.2.2. Tablet PCs Total park of tablets, 2010 2Q2012 Distribution by platform, 2010-2Q2012 2.2.3. Other mobile devices 2.3. Trends and tendencies of the global market of mobile marketing 2.3.1. Global trends of mobile marketing 2.3.2. Changing in the consumption patterns - "global mobilization" 2.3.3. Use of geopositioning in mobile marketing 2.3.4. Video services and video advertising 2.3.5. LTE penetration and its influence on mobile marketing 2.3.6. E-Commerce - driver of the mobile consumption 2.3.7. Mobile social networks and their role in mobile marketing 2.3.8. The use of QR-codes in mobile marketing 2.4. Cases of mobile marketing in the global markets 2.4.1. Cases of mobile advertising 2.4.2. Cases of geoservices 2.4.3. Cases of video advertising 2.4.4. Examples of e-commerce services 2.4.5. Examples of branded mobile content 2.4.6. Other types of mobile marketing 2.5. Forecasts of the global market of mobile marketing, 2012-2015 3. Overview of the Russian Market of Mobile Marketing 3.1. Description of the market of mobile marketing in Russia [registered trademark]. 7
3.1.1. Size of the mobile advertising market in Russia in monetary terms, 2010-2 Q 2012 3.1.2. Overview of Russian mobile advertising networks 3.1.3. Overview of independent mobile advertising sales agencies 3.1.4. Size of adjacent markets 3.1.4.1. Russian mobile communication market The number of mobile subscribers, 2010 2Q2012 The total mobile data traffic, 2010 2Q2012 Analysis of 3G/4G network coverage, 2Q2012 3.1.4.2. The Russian market of mobile devices sales Total sales of mobile phones in natural terms, 2010-2Q2012 Total sales of smartphones in natural terms, 2010-2Q2012 Total sales of Tablet PCs in natural terms, 2010-2Q2012 3.2. Park of mobile devices 3.2.1. Smartphones Total park of smartphones, 2010 2Q2012 Distribution by platform, 2010 2Q2012 3.2.2. Tablet PCs Total park of tablets, 2010 2Q2012 Distribution by platform, 2010-2Q2012 3.2.3. Other mobile devices 3.3. Trends and tendencies of the Russian market of mobile marketing 3.3.1. Trends of mobile marketing in Russia 3.3.2. Trends of mobile advertising in Russia 3.4. Cases of mobile marketing in the Russian market 3.4.1. Description of successful Russian cases of mobile advertising and marketing 3.5. Forecasts of the Russian market of mobile marketing, 2012-2015 4. Conclusion [registered trademark]. 8
List of figures Figure 1. Mobile marketing structure Figure 2. Global market size of mobile marketing in monetary terms, billion USD 2010 2016 Figure 3. Global market structure of mobile marketing by macro regions, 2010 2016 Figure 4. Total active mobile subscriber base in the world Figure 5. Total mobile data traffic in the world, EB, 2010-2016 Figure 6. Global mobile phones market size in natural terms Figure 7. Global smartphones market size in natural terms Figure 8. Global tablets market size in natural terms Figure 9. Total park of smartphones in the world Figure 10. Total park of smartphones in the world Figure 11. Total park of tablet PCs in the world, million units, 2010-2012 Figure 12. Total park of tablet PCs in the world by operating system, % Figure 13. Frequency of mobile internet use Figure 14. Frequency of video applications use Figure 15. The number of launches of new LTE networks in the world Figure 16. LTE penetration in various countries Figure 17. The distribution of mobile marketing by macro-regions: Eastern Europe and Russia, $ billion Figure 18. The distribution of mobile marketing by macro-regions: Western Europe, Asia, USA Figure 19. Growth rates of mobile marketing in the world, 2011-2015 Figure 20. The size of mobile marketing in Russia in monetary terms, 2012-2015's Figure 21. The structure of the Russian market of mobile marketing, 2012-2015 Figure 22. The structure of the mobile advertising market in monetary terms Figure 23. The total active subscriber base of mobile operators in Russia, million subscribers, 1Q2010-2Q2012 Figure 24. Total mobile data traffic, billion MB, 1Q2010-2Q2012 Figure 25. Total sales of mobile terminal in natural terms, 1Q2010-2Q2012 Figure 26. Forecast of the mobile phone market in natural terms Figure 27. Total sales of the smartphones in natural terms, 1Q2010-2Q2012 Figure 28. Structure of the market of mobile terminals sales in natural terms: smart phones - mobile phones, 2010-2014 Figure 29. Total park of smartphones in Russia, mln units, 2010-2012. Figure 30. The total park of smartphones available in Russia by the operating systems, million units, 2010-2012 Figure 31. The total park tablet PCs in Russia, mln units, 2010-2012. Figure 32. Total park of tablet PCs in Russia by the installed OS, million units, 2010-2012 Figure 33. Park of 3G-modems by operators, Russia Figure 34. Growth rates forecast of mobile advertising market in Russia 2013-2015 This information bulletin has been prepared by J'son & Partners Consulting Co. We make every effort to ensure that information and forests contained in our market reviews are accurate and up-to-date. J'son & Partners Consulting reserves the right to revise the data following the publication of new official information by companies. FOR ADDITIONAL INFORMATION PLEASE CONTACT: Pavel Ermolich Commercial Director Pavel@json.ru www.json.ru [registered trademark]. 9