nicky iapino - going mobile
DESCRIPTION
Europe 2010TRANSCRIPT
2010 – the year for Mobile!
A4expo Europe, Munich 2010Nicky Iapino – Digital marketing consultant
Contents
Background – biog Nicky Iapino UK affiliate market The Mobile Internet – why does this time feel different Research on mobile growth How iPhone is changing the way we interact with mobile Performance marketing on mobile! Brief case study and theory Summary
Background – biog Nicky Iapino I worked in affiliate/performance space for over 10 years – helped define the
sector and convinced many blue chip companies to adopt affiliate as part of their online strategy
Commission Junction – US network. Launched the European operation COO role with UK affiliates – merged this business with Webgravity Launched affilinet – established a niche business model “quality over
quantity” Took over as AdLINK UK Group MD in 2007 Worked with some of the top UK advertisers – Barclaycard, Vodafone, eBay,
O2, M&S in a total of over 500 programs Real passion for Performance marketing One time award presented at the a4u awards in 2008 for Excellence in the
sector Currently working on a project for BBC.CO.UK Non exec positions at Propel London and RO-EYE
UK affiliate market
In 2008, an estimated £227m was paid in commissions and fees to affiliates and networks!
Source: econsultancy – affiliate marketing buyers guide 2009
“Where will affiliate/performance growth come from next year”?
“Will it be mobile”?!?!
Why is the tech change in mobile different?
It’s ramping faster (based on user growth) than any other cycle It’s BIGGER based on opportunity It’s global, and every region brings something to the party based on it’s
mobile connectivity/ wants/ needs/ income level The US has grabbed the leadership after ignoring mobile for more than a
decade – thanks to the likes of Google, Apple, Amazon – including a lot of start-up’s and Silicon Valley is hotting up again
A host of relatively young, but seasoned, technology veterans are part of this cycle. They are engaged and they all have something to prove. This includes, both experienced leaders like Steve Jobs and next generation new kids on the block like Facebook’s Mark Zuckerberg
Technology cycles tend to last ten years
Mainframe
Computing
1960s
MiniComputing
1970s
PersonalComputing
1980s
Desktop Internet
Computing
1990s
Mobile Internet
Computing
2000s
> > > >
New computing cycle characteristics
Reduce usage friction via better processing power + improved user interface + smaller form factor + lower prices + expanded services = 10x more devices
Computing growth drivers over time, 1960 – 2020More than Just Phones
SmartphoneKindleTablet
MP3Cell phone / PDACar Electronics GPS, ABS, A/V
Mobile VideoHome Entertainment
GamesWireless Home Appliances
Source: ITU, Mark Lipacis, Morgan Stanley Research
Mobile Internet vs desktop Internet adoption
“Mobile is ramping faster than desktop Internet did and will be bigger” 5 Trends converging:
1/ 3G - The 3G adoption is hitting inflection points2/ Social Networking - Consumers want to connect via wired + wireless Internet3/ Video - Consumers want to find, select, watch Video via wired and wireless Internet4/ VoIP - Consumers want to chat (via Voice + Messaging + Video) via wired + wireless Internet5/ Impressive Mobile Devices - Apple’s iPhone + iTouch + App Store launches over the past 2.5 years created the spark for Mobile Internet. Liftoff as Microsoft’s launch of Windows 3.0 did for the PC in 1990 and the Netscape Browser (and its IPO) did for the desktop Internet in 1995
“Regarding pace of change, users will likely connect to the Internet via mobile devices rather than desktop PCs within 5 years”
Mobile phone usage is about data, not voice
Average cell phone = 70% voice vs iPhone = 45% voice Daily usage breakdown, % of Time Spent on Each Activity:
Average US cell phone useriPhone User
40 minutes per day60 Minutes Per Day
Source: iSuppli ConsumerTrak survey, 10/08, Morgan Stanley Research
Mobile takeaways for Western Europe
Mobile search advertising revenues in Western Europe will grow from 39 million Euros in 2008 to 2.3 billion Euros in 2013, representing a compound annual growth rate of 125.4 %
Source: THE KELSEY GROUP’S ANNUAL FORECAST; WESTERN EUROPE MOBILE SEARCH AND DISPLAY 2008 – 2013
Mobile display ad revenues will grow from 14 million Euros in 2008 to 1.1 billion Euros in 2013, a 138.3 % CAGR
Western Europe leads the United States in adoption and monetization of mobile local media, primarily due to the greater number of mobile handsets in the region — 499 million in 2008, compared with 266 million in the United States
In addition to more mobile subscribers, the rapid proliferation of smartphones is helping drive growth in mobile advertising
The number of smartphones in Western Europe will grow at a 35.7 % CAGR during the forecast period, from 32 million in 2008 to 149 million in 2013
Mobile Internet advertising spend 2004 - 2013
Mobile Internet advertising market by country in US $ millions
Source: PriceWatersCoopers LLP, Wilkofsky Gruen Associates
Western Europe Mobile display ad revenues 2008 – 2013
The countries included: France, Germany, Italy, Spain and the UK
Source: THE KELSEY GROUP’S ANNUAL FORECAST; WESTERN EUROPE MOBILE SEARCH AND DISPLAY 2008 – 2013
Western Europe Mobile search ad revenues 2008 – 2013
The countries included: France, Germany, Italy, Spain and the UK
Source: THE KELSEY GROUP’S ANNUAL FORECAST; WESTERN EUROPE MOBILE SEARCH AND DISPLAY 2008 – 2013
Wired Internet advertising spend Wired Internet advertising market by component in US$ millions
Wired Internet advertising market growth by component in %
Note: Western Europe including Austria, Belgium, Denmark, Finland, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and UK
jjjj
Source: PriceWatersCoopers LLP, Wilkofsky Gruen Associates
Mary MeekerManaging Director Morgan Stanley
"Talking mobile“
“How iPhone is changing the way we interact with mobile”
Ringtones - "the only revenue for a long time"!
How I use my iPhone
How I use my iPhone
Performance Marketing on Mobile! Education! Many Advertiser’s do not understand the potential for mobile
and have not equipped their business for the change in user behavior Some CPA trials had been done already, but due to lack of understanding
on the Advertiser’s part, these trials have failed! Mobile is important, but a learning process has to take place – a change in
payment model for example – cost per call and cost per lead models?? Even with CPC and CPL there are very few Advertisers with m-commerce
sites/apps, so this will take time and work to build. But an Advertiser doesn’t necessarily need a full m-commerce page to engage customers
There are no budget or commercial barriers – pay for performance A re-education of the market and understanding of engagement needs to
be realized I decided to do a very basic case study to test whether mobile converts
Case Study - Vodafone
Used Purely mobile traffic to drive calls to Vodafone call centre Traffic methods used:
Mobile Advertising networks Paid search Handset specific targeting
Built mobile pages on behalf of Vodafone that were user friendly for all type handsets and that would drive a clear call to action (example included overleaf)
Tracked all activity through unique telephone number’s and tried 3 different campaign types to compare activity
Case Study - Vodafone
Example landing page
News Flash!!!!
Apple patents “iTravel”, a mobile booking and ticketless check-in App for iPhone!!
Apple has filed a patent for a travel app called iTravel that books flights, hotels and car reservations, as well as providing ticketless check-in using Near Field Communications (NFC), a short-range wireless technology.
Apple has already indicated its interest in the ticketing space by filing a patent for "Concert Ticket +", an event ticketing
system linked to iTunes. But this is the first indication that the company is actively looking to target the travel vertical.
Mobile Times
Summary If you are not already thinking mobile, you should be! Mobile is ramping faster than the Internet ever did Performance on the Internet represents around 10% of online advertising
spend, mobile will follow this trend as a minimum Tests have shown mobile converts traffic to customers
“Mobile performance ad revenues will grow from 1,4 million Euros in 2008 to >110 million Euros in 2013, a 138.3 %
CAGR in Western Europe”
Thank you!
Nicky Iapino – Digital marketing consultantE-mail : [email protected] : +44 (0) 7841 143 243Skype : belfastnickyTwitter : belfastnickyLinkedIn : http://uk.linkedin.com/pub/nicky-iapino/2/50/3a3