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Phones or shoes?
                        Double the 2-5 year olds
                 can play with a smartphone app (19%)…




                      …than can tie their shoes (9%)
2010 AVG study
Mobile Marketing
A new interaction and revenue stream … lessons from the news publishing industry




           Mark Challinor, Director of Mobile and Interactive Services, Telegraph Media Group
1
UK quality newspaper market
                                                                   Average Daily Readership (000's)


                              2,000
                              1,800
                                                    1,751
                              1,600
                                                                    1613
                              1,400
                              1,200
                   (000's)




                              1,000                                                        1130

                               800
                               600
                                                                                                                 556
                               400
                                                                                                                                  391
                               200
                                 0
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Source: NRS Oct 09 – Sep 10
Europe
                               Newspapers: 2,398
North America
Newspapers: 1,577



                                               Middle East
                                              Newspapers: 272        Asia
                                                                Newspapers: 5,071




                               Africa
                            Newspapers: 400
        Latin America                                                    South Pacific
        Newspapers: 1,400
                                                                          Newspapers: 89




                                                                                           2
INMA: Our focus in 2011
Theme: practicalities of transition from “news on paper” to multi-media

                                          1.   Culture change,
                                               processes to support
                                               transition
                                          2.   Paid content
                                               opportunities in
                                               “passion niches”
                                          3.   Integrating advertising
                                               sales
                                          4.   Reallocation of
                                               marketing
                                          5.   Revenue opportunities
                                               with mobiles/tablets
Are we aware of where our customers
are or are moving to?

We envision literally, a billion people
getting inexpensive, browser-based
touch-screen devices over the next
few years”




       Eric Schmidt, CEO, Google, 2011
Environment: Mass Market Factors?
• Individual mobility up

• Sense of community changes: change from geography to
  interests (25 yr old London/NYC)

• Consuming more media, but in smaller bites

• Multi-task activities more than ever

• Technology transforming the market
  esp. net, mobile
Mobile Attributes
•   Ubiquitous “Always On” Access - Reach your
    audience in the right place at the right time – they
    always have their mobile phone with them
•   Viral – 1 in 4 forward campaign participants “refer a
    friend”


•   Actionability/ Interactivity
    – adds a level of interactivity to marketing,
    regardless of the media, that no other technology
    can…and allows the consumer to act on impulse – no
    need to make a call, tear something out, go online
    etc.
•   Measurability
    – campaigns can be tracked
    and monitored
Mobile Attributes
•   Qualified Respondents – by “texting in,
    consumers are expressing a clear interest in
    your product or brand – these lists if used
    creatively and responsibly will be an
    extremely valuable and effective way to
    reach your audience for years. (With
    number portability people may very well
    keep the same mobile number for their
    entire lives).
•   Low Cost – given the high conversion rates
    and the relative low cost of using mobile,
    consumer acquisition costs can be much
    lower in the mobile space
•   High Conversion Rates – we have seen
    conversion rates on text campaigns as high
    as 80% . On average, conversion rates for
    text have been dramatically higher than print
    or online (up to 10% )
Telegraph mobile strategy

                              Build customer interaction

                             Data collection opportunity

 Objectives/Advantages to        Generate new revenue
 mobile marketing strategy   Facilitate content collection & distribution


                             Added value to advertisers

                             Provide bridge to younger audiences


                             Brand association new technology
Mobile at The Telegraph 2010 into 2011



  Free mobile internet site      2m unique users a month
  (Telegraph.co.uk)
                                 300,000+ News app downloads
  Free iPhone apps (e.g. News,
  World Cup, Crosswords Lite)    280,000+ World Cup app downloads

  Paid apps (e.g. Fantasy        Fantasy Football app #2 in the paid
  Football, Crosswords Full)     download chart (250,000+ teams)

  Sponsored apps (e.g. F1,
  TaylorMade Golf, Jaguar)       Commercially-lucrative potential

  Tablets: iPad v1               Free. 126,000 downloads. Sponsored
Tablets (esp. iPad): next mobile frontier

  iPad launched in the UK in         "iPads will save
   June 2010 (not years ago!)         newspapers, they
                                      really will.”
  +500k in market now…
   growing fast
  Telegraph v.1 app launched in
   Sep 2010 (free…now!)
  Strategy for iPad is core to our
   future business model                 - Keith Weed, CMO, Unilever
6x longer ad interactions


30 seconds: the average time a
user is interacting with an
online ad on the iPad



6x: it‟s six times longer than
he/she is spending on the same
ad on a desktop pc.



Pintroll & Ad Marvel Report via BizReport.com 2010
Compare the no. of days it took to
reach 1m units sold!




                      iPad 2 sold ½m in first weekend!
Further measurement:
analytics package
• 1. About   the User
• Visits, sessions, visitors
• 2. About the App
• Article or views and product
  type,
  outbound links, conversions,
  media plays by media type
  (ie video) and title
• 3. About the Device
• Device O.S., connection type
Results and feedback


      iPad consumers don‟t just want the web
               Consumers want a highly-
                curated experience on their
                tablet devices
                          Not just a website
               Real-time news is not important
                          Will go to other sources for
                           that
               There are some „newspaper‟
                essentials before they will pay
                e.g. crossword
               Personalisation is perceived as
                an added benefit
August 2010 data: IAB.
So what now?
Telegraph iPad v2
 iPad Version 2, out now.
   – deeper, much more of the
     newspaper
   – Interactive graphics and
     video
   – include crossword and
     other essentials
   – paid-for…or free…
The product…
• £9.99 per month for new App Store customers

  – „Bedrock‟ of digital subscriptions

• £1.19 for a daily edition

  – First paper to offer this




• The Telegraph iPad edition

  – Not the newspaper

• FREE for print subscribers
The key issues
• Learning from V.1 has informed product development
  – We have taken the time to get this right; our free app has been a great asset

  – Daily edition makes app accessible and provides a great sampling opportunity

• App is added value for existing subscribers
  – We‟re committed to giving subscribers access to Telegraph when/how they want it

  – Builds upon value strategy started with our loyalty programme last year

• Research indicates that the iPad is complementary to the newspaper, not
  a substitute
  – We have an iPad edition with digital features e.g. video, animation

  – Supplements, lifestyle content not in the iPad edition: print completes package at
    weekend
Some proof points
• There are more over 55s with iPads than under 35s

   – Resonates with Telegraph audience

• 25% of iPad owners say their iPad usage has been additional to
  their current media consumption i.e. not at the expense of other
  media

   – The iPad generates more reading occasions.

• 50% of owners share their iPad with other members of their family

   – Understanding household consumption patterns is vital (2 per h/hold).
     “Fair use policy”




Source: YouGov survey of iPad owners, Feb 2011
Already popular feature

• Night Reading Mode…
Normal Reading Mode
Night Reading Mode
But let‟s not forget the basics…
e.g. the importance of SMS still!

• The first commercial text message
  was sent in December 1992.




• Today, the number of text messages
  sent and received everyday, exceeds
  the population of the planet!
Sponsored ads by SMS
 MiD DAY provides content via
 news alerts to subscriber base
 (twice a day).
• Challenge: to create subscriber
  base for news alerts, marketable
  to advertisers for rev gen.
• Revenue is generated via
  advertiser messages at the end
  of every news alert sent.
• The service was extensively
  promoted by MiD DAY through
  print, radio, online.
When would you expect mobile usage?

                             office               after work



                Travel to
               way to work
    get up       work
                                                          at home




  Relevance for mobile advertisers
     morning      forenoon            afternoon                evening


                 SMS push messaging
Reality!
• Big Brother

• X-Factor

• Dancing with the Stars

• I‟m a Celebrity…

• Soapstar Superstar!

• Etc.
ABOVE THE
            LINE
                       PR &
ON-
PACK                   PROMOS

         PROSPECTS &
         CUSTOMERS
                        DIGITAL
MOBILE

         PARTNERSHIP
          MARKETING




    360 degree approach
Four Stage Process

 • INTERACTION
 • DATABASE
 • CONTENT
 • REVENUE


 • USUALLY IN THIS
   ORDER!
What Other Mobile Services will we
be able to Offer in the Future?
The Mobile Future!
• Location based services (www.socialight.com)
• Couponing/ticketing/bar coding
• 3G/4G development (LTE…faster web, video,
  voice)
• Enhanced Ad services (“click to call” ads etc)
• Augmented Reality (CGI v reality)
• “Pay for it” services (www.buymeabeer.com)
• Mobile social
• Mobile payment systems…
The Mobile Opportunity
• Mobile can add a new dimension to your marketing
• It can rejuvenate products and markets
• It can enhance positioning, brand or service
• It can provide a new, modern way, for customers to interact
• It can generate a powerful segmented, usable database
• It can be an excellent content
  distribution method
• It can be a revenue stream




• But…do have a strategy!
The Telegraph media family

    SMARTPHONE       Breaking news, utility or fun




                     Luxurious, complete, older
    NEWSPAPER         demographic (weekday),
                        lifestyle (weekend)



                     Highly curated, once-a-day,
     TABLET              aimed at time-poor,
                        younger demographic




     WEB             Search-driven; archive and
                            multi-media
Key takeaways/lessons?
• Think about your future audiences and where they will be.

• Talk to mobile experts who can guide you. Remember it‟s a new
  space for everyone. Don‟t be afraid to experiment.

• Have a mobile strategy!

• Keep abreast of new developments: new ideas/trends

• Dominate your market with relevant apps/mobile services

• Focus on mobile optimisation of all the content in your ecosystem.

• Be relevant!

• Do something!
Thanks for listening!




mark.challinor@telegraph.co.uk
      Twitter: @challinor

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Mobile Marketing May 2011

  • 1. Phones or shoes? Double the 2-5 year olds can play with a smartphone app (19%)… …than can tie their shoes (9%) 2010 AVG study
  • 2. Mobile Marketing A new interaction and revenue stream … lessons from the news publishing industry Mark Challinor, Director of Mobile and Interactive Services, Telegraph Media Group
  • 3. 1
  • 4. UK quality newspaper market Average Daily Readership (000's) 2,000 1,800 1,751 1,600 1613 1,400 1,200 (000's) 1,000 1130 800 600 556 400 391 200 0 es ph es n t en ia m m ra rd nd Ti Ti g a le pe e Gu l ia Te Th de nc e ily In Th na Da e Fi Th Source: NRS Oct 09 – Sep 10
  • 5. Europe Newspapers: 2,398 North America Newspapers: 1,577 Middle East Newspapers: 272 Asia Newspapers: 5,071 Africa Newspapers: 400 Latin America South Pacific Newspapers: 1,400 Newspapers: 89 2
  • 6. INMA: Our focus in 2011 Theme: practicalities of transition from “news on paper” to multi-media 1. Culture change, processes to support transition 2. Paid content opportunities in “passion niches” 3. Integrating advertising sales 4. Reallocation of marketing 5. Revenue opportunities with mobiles/tablets
  • 7. Are we aware of where our customers are or are moving to? We envision literally, a billion people getting inexpensive, browser-based touch-screen devices over the next few years” Eric Schmidt, CEO, Google, 2011
  • 8. Environment: Mass Market Factors? • Individual mobility up • Sense of community changes: change from geography to interests (25 yr old London/NYC) • Consuming more media, but in smaller bites • Multi-task activities more than ever • Technology transforming the market esp. net, mobile
  • 9. Mobile Attributes • Ubiquitous “Always On” Access - Reach your audience in the right place at the right time – they always have their mobile phone with them • Viral – 1 in 4 forward campaign participants “refer a friend” • Actionability/ Interactivity – adds a level of interactivity to marketing, regardless of the media, that no other technology can…and allows the consumer to act on impulse – no need to make a call, tear something out, go online etc. • Measurability – campaigns can be tracked and monitored
  • 10. Mobile Attributes • Qualified Respondents – by “texting in, consumers are expressing a clear interest in your product or brand – these lists if used creatively and responsibly will be an extremely valuable and effective way to reach your audience for years. (With number portability people may very well keep the same mobile number for their entire lives). • Low Cost – given the high conversion rates and the relative low cost of using mobile, consumer acquisition costs can be much lower in the mobile space • High Conversion Rates – we have seen conversion rates on text campaigns as high as 80% . On average, conversion rates for text have been dramatically higher than print or online (up to 10% )
  • 11. Telegraph mobile strategy Build customer interaction Data collection opportunity Objectives/Advantages to Generate new revenue mobile marketing strategy Facilitate content collection & distribution Added value to advertisers Provide bridge to younger audiences Brand association new technology
  • 12. Mobile at The Telegraph 2010 into 2011 Free mobile internet site 2m unique users a month (Telegraph.co.uk) 300,000+ News app downloads Free iPhone apps (e.g. News, World Cup, Crosswords Lite) 280,000+ World Cup app downloads Paid apps (e.g. Fantasy Fantasy Football app #2 in the paid Football, Crosswords Full) download chart (250,000+ teams) Sponsored apps (e.g. F1, TaylorMade Golf, Jaguar) Commercially-lucrative potential Tablets: iPad v1 Free. 126,000 downloads. Sponsored
  • 13. Tablets (esp. iPad): next mobile frontier  iPad launched in the UK in "iPads will save June 2010 (not years ago!) newspapers, they really will.”  +500k in market now… growing fast  Telegraph v.1 app launched in Sep 2010 (free…now!)  Strategy for iPad is core to our future business model - Keith Weed, CMO, Unilever
  • 14. 6x longer ad interactions 30 seconds: the average time a user is interacting with an online ad on the iPad 6x: it‟s six times longer than he/she is spending on the same ad on a desktop pc. Pintroll & Ad Marvel Report via BizReport.com 2010
  • 15. Compare the no. of days it took to reach 1m units sold! iPad 2 sold ½m in first weekend!
  • 16. Further measurement: analytics package • 1. About the User • Visits, sessions, visitors • 2. About the App • Article or views and product type, outbound links, conversions, media plays by media type (ie video) and title • 3. About the Device • Device O.S., connection type
  • 17. Results and feedback iPad consumers don‟t just want the web  Consumers want a highly- curated experience on their tablet devices  Not just a website  Real-time news is not important  Will go to other sources for that  There are some „newspaper‟ essentials before they will pay e.g. crossword  Personalisation is perceived as an added benefit August 2010 data: IAB.
  • 19. Telegraph iPad v2  iPad Version 2, out now. – deeper, much more of the newspaper – Interactive graphics and video – include crossword and other essentials – paid-for…or free…
  • 20. The product… • ÂŁ9.99 per month for new App Store customers – „Bedrock‟ of digital subscriptions • ÂŁ1.19 for a daily edition – First paper to offer this • The Telegraph iPad edition – Not the newspaper • FREE for print subscribers
  • 21. The key issues • Learning from V.1 has informed product development – We have taken the time to get this right; our free app has been a great asset – Daily edition makes app accessible and provides a great sampling opportunity • App is added value for existing subscribers – We‟re committed to giving subscribers access to Telegraph when/how they want it – Builds upon value strategy started with our loyalty programme last year • Research indicates that the iPad is complementary to the newspaper, not a substitute – We have an iPad edition with digital features e.g. video, animation – Supplements, lifestyle content not in the iPad edition: print completes package at weekend
  • 22. Some proof points • There are more over 55s with iPads than under 35s – Resonates with Telegraph audience • 25% of iPad owners say their iPad usage has been additional to their current media consumption i.e. not at the expense of other media – The iPad generates more reading occasions. • 50% of owners share their iPad with other members of their family – Understanding household consumption patterns is vital (2 per h/hold). “Fair use policy” Source: YouGov survey of iPad owners, Feb 2011
  • 23. Already popular feature • Night Reading Mode…
  • 26. But let‟s not forget the basics… e.g. the importance of SMS still! • The first commercial text message was sent in December 1992. • Today, the number of text messages sent and received everyday, exceeds the population of the planet!
  • 27. Sponsored ads by SMS MiD DAY provides content via news alerts to subscriber base (twice a day). • Challenge: to create subscriber base for news alerts, marketable to advertisers for rev gen. • Revenue is generated via advertiser messages at the end of every news alert sent. • The service was extensively promoted by MiD DAY through print, radio, online.
  • 28. When would you expect mobile usage? office after work Travel to way to work get up work at home Relevance for mobile advertisers morning forenoon afternoon evening SMS push messaging
  • 29. Reality! • Big Brother • X-Factor • Dancing with the Stars • I‟m a Celebrity… • Soapstar Superstar! • Etc.
  • 30.
  • 31. ABOVE THE LINE PR & ON- PACK PROMOS PROSPECTS & CUSTOMERS DIGITAL MOBILE PARTNERSHIP MARKETING 360 degree approach
  • 32. Four Stage Process • INTERACTION • DATABASE • CONTENT • REVENUE • USUALLY IN THIS ORDER!
  • 33. What Other Mobile Services will we be able to Offer in the Future?
  • 34. The Mobile Future! • Location based services (www.socialight.com) • Couponing/ticketing/bar coding • 3G/4G development (LTE…faster web, video, voice) • Enhanced Ad services (“click to call” ads etc) • Augmented Reality (CGI v reality) • “Pay for it” services (www.buymeabeer.com) • Mobile social • Mobile payment systems…
  • 35.
  • 36. The Mobile Opportunity • Mobile can add a new dimension to your marketing • It can rejuvenate products and markets • It can enhance positioning, brand or service • It can provide a new, modern way, for customers to interact • It can generate a powerful segmented, usable database • It can be an excellent content distribution method • It can be a revenue stream • But…do have a strategy!
  • 37. The Telegraph media family SMARTPHONE Breaking news, utility or fun Luxurious, complete, older NEWSPAPER demographic (weekday), lifestyle (weekend) Highly curated, once-a-day, TABLET aimed at time-poor, younger demographic WEB Search-driven; archive and multi-media
  • 38. Key takeaways/lessons? • Think about your future audiences and where they will be. • Talk to mobile experts who can guide you. Remember it‟s a new space for everyone. Don‟t be afraid to experiment. • Have a mobile strategy! • Keep abreast of new developments: new ideas/trends • Dominate your market with relevant apps/mobile services • Focus on mobile optimisation of all the content in your ecosystem. • Be relevant! • Do something!