Session 1:Messaging & Marketing

All about

4 billion mobile users, but only one me

#1

Cinema

Radio

TV

Print

PC/laptop

Mobile

#1

Usage

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Cinema Radio Print TV PC/laptop Mobile

Ho

urs

Media contact per annum

How to contact #1

Mobile Internet

Location UGC Social networking

Mobile advertising

Messaging Games Video TV Music Mobizines

Mobile apps

Innovation

Search

Mobile Media landscape, 2005-2007

Mobile operator

Content provider

2008: The arrival of the open Internet

Mobile Internet

Social networking

Mobile advertising

The Mobile Medium

Messaging

Mobile apps

Search

Voice

Locatio

nMo

bile

op

era

tor

Low

Pri

ori

tyh

igh

Services

Content

Next up?

Co

nte

nt p

rovid

er

APPocalypse Now – all about the OS

Mobile Internet

Social networking

Mobile advertising

The Mobile Medium

Messaging

Mobile apps

Search

Voice

Locatio

n

Mo

bile

op

era

tor

Low

Pri

ori

tyh

igh

Services

Content

Next up?

Ap

ple

No

kia/Ovi

Samsu

ng

LG

Pu

ma

An

dro

id

Blackb

erry

Son

y Ericsson

Eyjafjallajökull

Global disruption

The mobile eruption

The global picture

Everyone is going mobile

Game changer

Mobile landscape make-up

Legacy

Basic WAP functionality

Featurephone

Rich-media device, WAP with open Internet

enablement

Smartphone

Advanced capabilities with PC-like

functionality (5-10 times higher usage)

iPhone

Yardstick (20-50 times higher usage)

Device growth (mil.)*

2010 2015

Legacy 242.39 237.73

Featurephone 1,132.32 1,596

Smartphone 180.63 800.5

iPhone 10.2 45.4

* Australia, China, India, Indonesia, Japan, Philippines & Singapore

Reach

Messaging

Mobile Internet

Apps

iPhone

Actual noise

iPhone

Apps

Mobile Internet

SMS

Consumers on mobile marketing

0%

5%

10%

15%

20%

25%

30%

35%

Use your mobile phone to access the consumer

benefit

Use your mobile to find out about the consumer benefit but wait until getting back on your PC before acting

Wait until back on PC Ignore altogether

Consumers on apps

• 35% of men and 14.5% of women know what the App Store (Apple) is

• Knowledge of app stores diminishes with age

• Knowledge of app stores is higher in the south of the UK compared to the

rest of the country

• 48% of men would be interested in using an app store for content

• 44% of women would be interested in using an app store for content

Consumers on brand communication

0%

5%

10%

15%

20%

25%

30%

35%

40%

Appreciate the follow-up communication and be encouraged to spend

more

Appreciate the follow-up communication and continue spending a

similar amount at that company

Welcome the communication but it wouldn’t sway you to

keep spending with this company

Would find the communication intrusive

but would not discourage you from

spending at that company

Would find the communication intrusive and move your custom

to another company

If a company communicated with you using mobile after a purchase would you…

Source: mobileSQUARED, consumer survey 2009, 21,247 respondents

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18-24 25-34 35-44 45-54 55+

Do you make transactions over £10 using your mobile phone... by demography?

Yes

No

Consumers on mobile transactions

Source: mobileSQUARED, consumer survey 2009, 21,247 respondents

Biggest challenge?

3963

1502

4891

10891

0

2000

4000

6000

8000

10000

12000

Click on the ad to find out more

Consider clicking on the ad but do

nothing

Consider clicking on the ad but do nothing because you are worried about the cost

Ignore the ad altogether

Q.3 If an advert was served to you on your mobile phone that was 100% relevant to you at

that moment in time, based on your location and requirements, would you…?

Overcoming consumer apathy

Source: mobileSQUARED, consumer survey 2009, 21,247 respondents

Why mobile marketing?

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

0-500 Rupees 1,001-2,500 Rupees

10,000+ Rupees

2,500-10,000 Rupees

501-1,000 Rupees

I would not purchase

items using my mobile

phone

It is possible to use your mobile phone to purchase goods and services. How much are you willing to spend

on goods and services using your mobile phone?

Of those users that will use their

mobile to make a purchase :

60% (5.4 million subscribers) will

spend 500 Rupees (US$11.3)

17% (1.5 million) will spend 501-1,000

Rupees

In 2015 that 60% & 17.5% will equate

to 69 million and 19.7 million

Source: mobileSQUARED, consumer research, Apr 2010,

Value chain

… multiple permutations

Interruption?

Campaign 1

Campaign 2

Campaign 3

Campaign 1

Campaign 2

Campaign 3

Campaign 4

Campaign 5

Year 1 Year 2 Year 3

Campaign 1

Campaign 2

Campaign 3

Campaign 4

Time

Sp

en

d

Fractured approach

Development

Campaign 1

Time

Sp

en

d

Campaign 2

Campaign 3

Campaign 4

Inte

rac

tion

Brand

Consumers

Stage 1: C.R.M.

Stage 2: CRM 2.0

Stage 3: BRM

Consumer is in control

Social media removes campaign-led

dynamic from advertising

Consumers controlling who can contact

them:

BRAND RELATIONSHIP MANAGEMENT

What’s in it for me?

0%

10%

20%

30%

40%

50%

60%

70%

Which of the following would you like to receive to lower the cost of using your mobile?

5 SMS adverts per day in exchange for 250 free messages and 100 mins of voice calls per month

Free games with adverts before playing a game

Free music with ads before listening to music

Free video (such as sport clips) with ads before and during the viewing

Source: mobileSQUARED, consumer research, Apr 2010,

The truth about messaging

Getting the message

Source: mobileSQUARED, Morgan Stanley

-

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

2009 2010 2011 2012 2013 2014

Asian messaging penetration

2.39 billion

3.16 billion

• 95% of all SMSes read

• 90% read within 15 minutes

Messaging stats

SMS campaign: audience 10 million

• 9 million read within 15 mins

1 operator in India distributes

100 million “marketing”

messages per day

PBM heading to India 2H10

<25%

BMW EfficientDynamics also in mobile

The ultimate mobile marketing campaign

The BMW Winter Tyres MMS campaign generated €33.2 million in new

business to BMW from a mobile campaign based on 117,000 MMSes.

Directly (and accurately) attributable to MMS

Classic example of engagement marketing

Cost of campaign €44,000

€0.20/MMS x 117,000 = €23,400

30% click thru + transaction (35,100 customers spent on average €946).

TIME TO CONSUMER

PE

NE

TR

AT

ION

MESSAGING

Part 1: Communicating with #1

Internet & Social Media

Still all about

Now 4.0013 billion mobile users, but still only one me

#1

The users, by device category

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015

Device % of voice across selected markets

Legacy

Featurephones

Smartphones

iPhone

Source: mobileSQUARED, Asia report 2010

Mobile is same as web, only different

Delivering traffic via search – ranging from 12% for all users to 55%

for iPhone users. So it’s important but not ubiquitous (Source –

eMarekter)

Delivering traffic via display – plenty of options for ad networks and

exchanges but buying solely on price isn't wise. Users expect to be

delivered to something entertaining and valuable; they won't hang

around if they're not.

Delivering for mobile – design for screen size, browsing flexibility,

handset variants and speed. Everyone doesn’t have an iPhone (just

like a few years ago everyone didn't have Broadband or flash) .

Far from perfect

End of Honeymoon period =

behavioural change

Users congregate to iPhone-

optimised sites = known as

RAILROADS

However:

Majority of iPhone optimised

sites cannot be overridden,

but a few now are providing

access to the main web site

Users need options!

It’s an addiction

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Mobile daily phone usage, mid-2008 - mid-2009

mid-2008

mid-2009

mid-2010

Expon. (mid-2008)

Expon. (mid-2009)

Expon. (mid-2010)

users/daily usage

Source: mobileSQUARED, Asia report 2010

Who is going where?

Source: mobileSQUARED, Asia report 2010

The Top Sites

Average browsing session 10-15 mins

Site will lose 25-30% of users per click – (originally >50%)

• Based on 1 million users of site X, if they go 10 pages into site,

would previously have 977 users, now 56,314.

• Improvement of 5,764%.

Users gravitate towards 10 “favourite” sites

including: Social networking site, business networking site, news, sport,

finance, fashion, entertainment

On average a user will have up to 6 “set” sites and 4 “floating” sites.

Ambition for brands is to become a “floating” site with a goal of

becoming a “set” site.

The mobile site hierarchy

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Site 10 Site 2 Site 3 Site 4 Site 5 Site 6 Site 7 Site 8 Site 9 Site 10

#1 mobile site behaviour

Sites of uncertainty:

Target for brands

WAP landing pages

Campaign 1

Campaign 2

Campaign 3

Campaign 1

Campaign 2

Campaign 3

Campaign 4

Campaign 5

Year 1 Year 2 Year 3

Campaign 1

Campaign 2

Campaign 3

Campaign 4

Time

Sp

en

d

Fractured approach

The mobile platform

Presence

Time

Sp

en

d

Campaign 1Camp. 2

Ongoing communication

Camp. 3

Brand Consumers

+36%

38

28

+267%

311

76% that clicked on

the ad would be likely

to buy the product

Source: IAB Mobile Advertising Effectiveness Research, Base: All Respondents (609)

Mobile Internet: raising awareness

We’re a social lot

Source: mobileSQUARED, Asia report 2010, Trendstream

And we influence

Source: mobileSQUARED, Asia report 2010, Trendstream

% of buyers who researched prior to purchase (offline and online)

And we’re starting to make decisions

Source: mobileSQUARED, Asia report 2010, Trendstream

CONSUMER ATTENTION

CO

NS

UM

ER

RE

AC

H

MESSAGING

Part 2: Communicating with #1

MOBILE INTERNET

SOCIAL NETWORKING