mobile advertising

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

MOBILE : 

MOBILE The Dawning of ADVERTISING

Slide 2: 

Mobile ads will become a big business.

Slide 3: 

Experts have predicted that over the next 5 years, mobile advertising will become a $2 billion business.

Slide 4: 

Experts have predicted that over the next 5 years, mobile advertising will become a $2.3 billion business. LocalMobileSearch, a subsidiary of Opus Research

Slide 5: 

Experts have predicted that over the next 5 years, mobile advertising will become $2.3 billion business. LocalMobileSearch, a subsidiary of Opus Research Experts have predicted that over the next 4 years, mobile advertising will become a $6 billion business. eMarketer Experts have predicted that over the next 5 years, mobile advertising will become $2.3 billion business. LocalMobileSearch, a subsidiary of Opus Research

Slide 6: 

Experts have predicted that over the next 5 years, mobile advertising will become a $2 billion business. JupiterResearch, 2008 Experts have predicted that over the next 5 years, mobile advertising will become $2.3 billion business. LocalMobileSearch, a subsidiary of Opus Research Experts have predicted that over the next 4 years, mobile advertising will become a $6 billion business. eMarketer Experts have predicted that over the next 5 years, mobile advertising will become a $6.5 billion business. Mobile Advertising: After the Growing Pains

Slide 7: 

And everyone knows how accurate experts can be…

Slide 8: 

And everyone knows how accurate experts can be… “There is a world market for maybe five computers.”

Slide 9: 

And everyone knows how accurate experts can be… “There is a world market for maybe five computers.” Thomas Watson, chairman of IBM, 1943

Slide 10: 

And everyone knows how accurate experts can be… “There is no reason anyone would want a computer in their home.”

Slide 11: 

And everyone knows how accurate experts can be… “There is no reason anyone would want a computer in their home.” Ken Olson, president, chairman, and founder of Digital Equipment Corp., 1977

Slide 12: 

And everyone knows how accurate experts can be… “No one,” he declared, “will ever need more than 640K of RAM.”

Slide 13: 

And everyone knows how accurate experts can be… “No one,” he declared, “will ever need more than 640K of RAM.” Bill Gates, ~1982

Slide 14: 

And everyone knows how accurate experts can be… “I predict the Internet will soon go spectacularly supernova, and in 1996 catastrophically collapse.”

Slide 15: 

And everyone knows how accurate experts can be… “I predict the Internet will soon go spectacularly supernova, and in 1996 catastrophically collapse.” Ethernet inventor and 3Com founder Bob Metcalfe, 1995

Slide 16: 

And everyone knows how accurate experts can be… “Everything that can be invented has been invented.”

Slide 17: 

And everyone knows how accurate experts can be… “Everything that can be invented has been invented.” Charles H. Duell, Commissioner, U.S. Office of Patents, 1899

Slide 18: 

The mobile market is growing rapidly. 40M Americans already browse on their phones. (but that’s less than 20% of users) 95M have internet access.

Slide 19: 

But, mobile ad growth has been painfully slow.

Slide 20: 

While some users have mobile web access, they don’t use it much. 6.4 sites per month vs. 100+ for fixed internet.

Slide 21: 

And, users perceive mobile ads to be an intrusion Little or no perceived value. Perception that the user is paying for the ads.

Slide 22: 

Few people claim to be interested in mobile ads.

Slide 23: 

On the other hand…

Slide 24: 

And, other studies show users are interested in mobile ads. 56% of teens. 37% of adults.

Slide 25: 

But… they want to be compensated for viewing ads.

Slide 26: 

But they want to be compensated for viewing ads. Teens want cash and freebies: Cash (80%) Downloads (61%) Music (57% ) Minutes (53%)

Slide 27: 

But they want to be compensated for viewing ads. Adults want freebies and coupons: Free minutes (49%) Coupons (37%) Free entertainment (37%)

Slide 28: 

The question for you is when to enter the fray, and how

Slide 29: 

What will determine winners and losers? What role will the carriers play? Will the political environment play a role?

Slide 30: 

How does our company invest intelligently? Should we lead or fast-follow? How do we offset the death of the mass market? How do we protect our brand? 18% of marketers are already experimenting.

Slide 31: 

What are the keys to success in mobile advertising?

Slide 32: 

Mobile ad growth has been painfully slow.. But why?

Slide 33: 

Carriers are not risk-takers. Dependent upon recurring revenue Few are willing to risk being first • Churn is their biggest enemy

Slide 34: 

Advertisers see little value. Most ads today are text/SMS Screens are typically small and resolution is poor Download speeds have been slow Video resolution has been poor • Little impact • But 69% of adults and 64% of teens claim to prefer text ads • Only 47% of teens and 35% of adults want images in ads • Acceptance of video ads dropped 10% this year

Slide 35: 

Still, growth in the past 12 months has been 104%. From a small base, too. AdMob

Slide 36: 

But, most users still do not have the right equipment.

Slide 37: 

The growth is likely to accelerate, and technology is an ally.

Slide 38: 

Mobile phones are improving. Screen quality Video capability Location capability • Matching people & places

Slide 39: 

It began with the iPhone, but is rapidly expanding.

Slide 40: 

The iPhone serves as a good case study.

Slide 41: 

>30% of iPhone users compared to 4.6% of all users watched TV or videos –

Slide 42: 

50% visited social networking sites compared to approx. 4% of all users Almost

Slide 43: 

30% visited YouTube vs. 1% of all users Of those…

Slide 44: 

59-85% of iPhone users search the web vs. 6.1% of all users

Slide 45: 

74% listened to music vs. 6.7% of all users

Slide 46: 

All of this was on a slow cellular network.

Slide 47: 

That is shifting.

Slide 48: 

Networks are improving. HSDPA/ HSUPA CDMA Rev-A WiFi WiMax LTE

Slide 49: 

What began with the iPhone, is rapidly expanding. Samsung Instinct Blackberry 9000 Treo 800 OpenMoko Neo LG Voyager

Slide 50: 

Carriers know a lot about their customers’ habits.

Slide 51: 

New techniques are available. Interstitial advertising

Slide 52: 

And there is $$$ to be made. Social networks/internet sites Ad agencies Ad placement companies Carriers Advertisers

Slide 53: 

Carriers must differentiate or die.

Slide 54: 

Majors are consolidating. Sprint / Nextel Verizon / Alltel AT&T / Cingular It’s still questionable whether all can survive. • Sprint & T-Mobile are most vulnerable

Slide 55: 

MVNOs are consolidating or disappearing as fast as they appear. Helio is saved by Virgin Mobile Amp’d & Movida disappear

Slide 56: 

Price has always been a primary differentiator. Few admit it. Verizon - The network Sprint - Sprint speed AT&T - Coverage (more bars in more places)

Slide 57: 

Price has always been a primary differentiator. But everyone subsidizes phones.

Slide 58: 

Price has always been a primary differentiator. A huge part of the spending is price-based ads.

Slide 59: 

Price has always been a primary differentiator. Mobile ads may allow price differentiation. Likely the first reason for carriers to get excited.

Slide 60: 

It’s happening in Europe. Blyk targets only the 16 to 24-year-old market. Profiled based on lifestyles and interests.

Slide 61: 

It’s happening in Europe. Free voice and data. 43 voice minutes and 217 texts a month per month. Provided customers accept ads.

Slide 62: 

It’s happening in Europe. Blyk claims 29% click-through. Down from the 43% they claimed last November.

Slide 63: 

It’s happening in Europe. Over 100,000 customers in the first 7 months.

Slide 64: 

Blyk claims to be cost-effective. Are people buying or just clicking?

Slide 65: 

Social trends will also drive mobile advertising.

Slide 66: 

People want to be connected. Facebook, MySpace, and about a dozen copycats every month. All are testing mobility.

Slide 67: 

Social trends will drive devices that are optimized for mobile advertisers. Driving more feature-rich phones • Picture phones • Video capability • Full keyboards and simplified text entry • Voice input

Slide 68: 

Likely to drive some location-based service.

Slide 69: 

All of this is likely to take 2-3 years to mature.

Slide 70: 

Why will people want mobile advertising?

Slide 71: 

May reduce the cost of phones / service.

Slide 72: 

Location-aware Preference-aware Real-time comparison capability Advantage vs. any other media Or, if they believe it provides real value… and it can. • E.g., buying a big-screen TV

Slide 73: 

How will people want mobile advertising?

Slide 74: 

SMS/Text Still Picture Video Appearance

Slide 75: 

Search-driven Location-based Method

Slide 76: 

Interstitial vs. featured

Slide 77: 

Mobile apps can be mobile advertising.

Slide 78: 

Free sites may drive brand awareness. But users need a relevant reason to view the site, and space is at a premium. • Straight ads are unlikely to be effective

Slide 79: 

Mobile apps can drive revenue. Used correctly, they can also drive your brand. But beware of backlash if the site is not perceived to be worthwhile.

Slide 80: 

Privacy may be a “black swan.”

Slide 81: 

Privacy may be a “black swan, or the elephant in the room.”

Slide 82: 

Is privacy a real consumer issue?

Slide 83: 

Is privacy a real consumer issue? How many passwords do you have?

Slide 84: 

Is privacy a real consumer issue? How many passwords do you have? How many of those sites have written privacy policies? How many of them have you read?

Slide 85: 

Or a political issue?

Slide 86: 

The black swan is now surfacing, and will extend the debate into the political arena. • On August 1, 2008, the FCC sent a letter to cable companies. • Demanding information on use of customer profiles to tailor advertising. • Recipients included Comcast, Cox, AOL, AT&T, Yahoo!, Microsoft and 27 others.

Slide 87: 

May delay broad adoption, but is unlikely to stop it. • Opt in/opt out But onerous restrictions could be imposed. The black swan is now surfacing, and will extend the debate into the political arena.

Slide 88: 

Why begin spending today… …if the market will not really develop for several years?

Slide 89: 

Why begin spending today? Define the key success factors before your competitors do • Make mistakes early • Radio to TV analogy Build a case for your ROI

Slide 90: 

Can you test successfully?

Slide 91: 

Can you test successfully? Testing has been challenging in the mobile market The market has moved quickly, and with seismic force • Bundled pricing • Free handsets • RF technology rollouts – 2G/ 3G Find the right partners to begin testing

Slide 92: 

Mobile advertising IS likely to allow for testing Mobile advertising is less likely to move at the speed of technology • Social trends are slower than technology trends • Bad news for mobile ad networks and agencies • Good news for advertisers who start early

Slide 93: 

Recommendations

Slide 94: 

RECOMMENDATIONS Make mistakes now!

Slide 95: 

RECOMMENDATIONS Recognize the risks.

Slide 96: 

RECOMMENDATIONS Develop an ROI model.

Slide 97: 

RECOMMENDATIONS Understand the keys to success in mobile advertising.

Slide 98: 

RECOMMENDATIONS Look for opportunities to differentiate with partners.

Slide 99: 

? Questions

authorStream Live Help