2. We’re a Mobile Ad Network
London
Seoul
Berlin
Chicago
Paris
Shanghai
San
Francisco
New
York
Mumbai
Tokyo
Bangalore
Nairobi
Singapore
Johannesburg
Sydney
• 47 Billion Impressions per month • 314 Million Monthly Unique Users
• Mobile Dedicated • 350 Employees
• 12,000+ Partners • 165 countries; 15 Offices; 12 Countries
5. Mobile dwarfs every medium
GLOBALLY
480 mn newspapers
1.0 bn active PCs
1.6 bn TV sets
4.2 bn mobile phones
Source:
Gartner,
IDC,
BSN
Source:
KPCB
2011
9/27/11 5
6. Impact of the medium
SPEED REACH CAPABILITY
Grown faster than
print, TV and radio
> 70% penetration
in India
Smartest advertising
medium
• Most personal
• Always on
• Most interactive
• CPU, Touchscreen, Sensors,
GPS, NFC…
9/27/11 6
12. Many promises
Source:
RespecJve
Brands.
Copyright:
Owned
by
respecJve
brands
9/27/11 12
13. The reality is
Service rollouts have been delayed Coverage is spotty within a circle
Can
you
hear
me
now?
Hello?
Data speeds are slow Data plans are still unaffordable
1.10
0.93
0.87
Average 3G
speed in Mbps
0.27
0.20
Most data plans
are more than
Rs. 600 pm
Airtel
Vodafone
Reliance
BSNL
MTNL
Source:
CIOL,
based
on
test
done
in
Gurgaon
region
Source:
3Gsimplified.com
9/27/11 13
14. Affordability of data plans in India
1%
3%
10%
15%
42%
43%
59%
60%
76%
Russia
India
Brazil
China
Italy
Germany
UK
Spain
US
Prepaid
Postpaid
Source:
AC
Nielsen
Most Indian consumers cannot afford expensive data plans…
9/27/11 14
15. Wide gaps in coverage
%
of
customers
covered
under
3G
license
%
of
3G
market
share
100%
100%
100%
90%
77%
67%
65%
60%
49%
48%
10%
3%
3%
6%
4%
3%
0.2%
2%
BSNL
S
Tel
MTNL
Aircel
Idea
Airtel
Vodafone
Reliance
Tata
Teleservices
Source:
Telcoma
9/27/11 15
16. Challenges in Mobile Ecosystem
1 Connectivity
2 Devices
3 Content/Apps
4 Payments
9/27/11 16
17. Factors driving mobile purchase
Price is top ranked purchase driver in all countries
Source: The Nielsen Company
Source:
AC
Nielsen
Purchase Drivers Prepaid/Postpaid among youth is comparable to general population
rice was the most common consideration
Consumers in India
n selecting a mobile phone for young are extremely price sensitive for mobile devices …
eople, though that is true among
ther age groups, too. Adult s in these
9/27/11 17
ountries rated price the most important
onsideration, too. Youth aged 15 to 24
ut price as the first purchase driver, with
he exception of Russian youth, 21 percent
18. Price of mobile devices in India
Price
in
Rs
‘000
49% of mobile phones in retail
<4.5
4.5
-‐
15
>15
stores cost more than $100
30%
19%
33%
51%
16%
14%
8%
8%
9%
6%
5%
2%
0
-‐
1
1
-‐
2
2
-‐
4.5
4.5
-‐
7.5
7.5
-‐
10
10
-‐
15
15
-‐
20
20
-‐
25
25-‐
40
Price
in
Rs
‘000
Source:
fonearea.com
9/27/11 18
19. Smartphone penetration as a % of phones
63%
45%
40%
36%
29%
30%
22%
14%
9%
India
Sub-‐Sahara
South
East
China
Brazil
Russia
US
UK
Germany
Africa
Asia
Source:
GFK
Retail,
AC
Nielsen
India’s smartphone penetration rates are lower than Sub-Sahara Africa
9/27/11 19
21. Challenges in Mobile Ecosystem
1 Connectivity
2 Devices
3 Content/Apps
4 Payments
9/27/11 21
22. Cost of app development is high
OPERATING
SYSTEMS
DEVICE
TYPE
UPGRADS
Hardware
OS
9/27/11 22
23. Applications - the problem of many
Can the mobile web standardize experience and
increase content consumption
9/27/11 23
24. Content / app innovation
Presence and
not innovation is the focus
9/27/11 24
25. Challenges in Mobile Ecosystem
1 Connectivity
2 Devices
3 Content/Apps
4 Payments
9/27/11 25
26. Remote mobile payments by region
Figures
in
$mn
$350,000
Africa
&
Middle
East
Rest
of
APAC
Indian
Sub
ConJnent
Far
East
&
China
$300,000
Eastern
Europe
Western
Europe
South
America
North
America
$250,000
$8,149
$6,605
$200,000
$4,845
$150,000
$3,457
$2,359
$100,000
$50,000
$28,297
$54,047
$71,741
$0
$89,333
$108,282
2010
2011
2012
2013
2014
Remote
mobile
payments
includes
purchase
of
virtual
&
physical
goods,
and
cash
&
credit
transfers
Source:
Juniper
Research
9/27/11 26
28. Direct operator billing
• Integration a major challenge
– Dominant strategy for non-voice revenue still missing
• Only 11% of revenue is non-voice
– Integration cycles are very long
• It may take months for the most persistent merchants
• Low payout for the merchant
– Paypal (92%)
– Credit card/online (85% - 86%)
– Direct operator billing (10% - 40%)
• Negative impact on mobile ecosystem
– Merchants wary of adoption
9/27/11 28
30. Evolution of mobile phones
2. Screens INTERACT
3. Touchscreen
Have
grown
from
1”
Now
even
feature
to
4.3”
and
beyond
phones
have
them
VIEW
IMMERSE
1. Horsepower 4. Sensors
Commercial
PCs
broke
the
Accelerometers
1Ghz
barrier
in
1999
9/27/11 30
31. Evolution of mobile advertising
Banner
ads
Rich
media
SMS
ads
Rich
media
Text
News
Games
&
2 Data
3 MulJmedia
Movies
Immersive
3D
1 Voice
4 Touchscreen
&
Sensors
Ads
Content
9/27/11 Technology 31
32. Making mobile advertising work
Device
Content
&
Apps
AdverJsers
Consumers
CREATIVE
IDEAS
PEOPLE
TOOLS
9/27/11 32
36. 1 INDIA:
Mobile internet > desktop internet
• In terms of users within 12 mths and in usage within 24 months
• One of the first countries globally to get there
9/27/11 36
37. 2 INDIA:
Top 3 largest Android+iOS market globally
within 24 months
9/27/11 37
38. 3 INDIA:
iOS+Android mobile internet usage > all other
devices’ usage put together within 24 months
• Price points dropping into volume bracket
• Higher usage per device
9/27/11 38
39. 4 INDIA:
First $1B rev company to come from mobile
internet, not desktop
• Any guesses?
9/27/11 39
