Mobile Web East Africa, Nairobi Kenya, 3 February 2010

1. Mobile Web East Africa
3 February 2010,
Nairobi, Kenya
Rick Joubert
www.rickjoubert.com

2. The mobile phone is the most
ubiquitous consumer technology
on earth
#2 = FM Radio (3.9 Billion)

3. Business model / process impacts
1. Financial services
2. Music / Gaming
3. Photographic Industry
4. Navigation industry
5. Time piece industry
6. Hardware
7. Software
8. Web
Coming soon
1. Health care
2. Government
3. Publishing

4. Access: Population
Population in SA with entertainment / communication
technology in their household
AMPS

5. Growth of unique mobile phone access in SA
1999 2009
11% of SA adults had access to 70% of SA adults use a mobile phone.
(at least one) mobile phone.
Source: AMPS

6. Growth of unique mobile phone access in SA
among the economically active population
1999 2009
20% of SA working adults had access 82.5% of SA working adults use a mobile
to (at least one) mobile phone. phone.
Source: AMPS

7. Penetration of mobile phone ownership in SA
By expanded LSM
70% of the SA population has access to a mobile phone.
Source: AMPS 2009 A

8. In South Africa today..
There are almost twice as many There are more than four times as many
mobile phones as there are TV sets. households with a mobile phone than computer.
44% of e-mails are sent and SMS text messaging is used by almost
received from a mobile phone. four times more people than e-mail.
There are 5.3 times more homes with There are almost six times more mobile
mobile phones than landline telephones. phone subscribers than Internet users.
Source: AMPS 2009 A

9. www Web users, RSA*
5 Million unique
11%
•Arthur Goldstuck, World Wide Worx

10. Mobile Web, RSA
10.1 Million
unique mobile web users*
(less than 30% have access to the PC Web) •Strategy Analytics

12. “Mobile Web” definition tiers*
Tier 1 The WAP Internet
Tier 2 The mobile application Internet
Tier 3 Web browsing on phone
* Goldstuck/Joubert

13. Access: Population
Population in SA with entertainment / communication
technology in their household
AMPS

15. • $300 million p.a.
• 2000 films p.a.
• $30K budget per film
• Average film sells 50K disks at a price of $2

16. DVD player shipment by region
Source: “In-Stat”

17. AdMob Mobile Metrics: August 2009
(ads called from the AdMob network)
- Apple iPhone = number 1 handset on every continent in the
world…
- Except……

18. AdMob Mobile Metrics
(ads called from the AdMob network)
- Apple iPhone = number 1 handset on every continent in the
world…
- Except……
- Africa!
- Africa: no1 = Nokia 3110, no2 = Samsung E250

19. “Internet” access channels
PC Web SMS
Smartphone access to PC Web USSD
Mobile applications Voice
Mobile Web (WAP)

20. Driving forces
• Growth in data networks & coverage
• Mobile data access charges
• Content!
• + handsets - price
• Compliments – e.g. Mobile Wallets

21. Business model/monetisation
• Commerce
• Transactions / financial services
• Content
• Advertising

22. Positioning map of users of various media
Age and Income
Source: AMPS 2009 A

23. 7th Mass Medium
Print Recording Cinema Radio TV Internet Mobile

24. US Internet ad spend

25. 30 September 2009, UK

26. UK ad spend
At the end of its third year of full
commercial adoption in the UK (2000),
online ad spend amounted to £153M
That was 0.9% of UK ad spend

27. In developing markets mobile is the
FIRST screen
(and often the only screen)

28. Mobile as a medium*
1. First personal mass media
2. Permanently carried
3. Always on
4. Built-in payment mechanism
5. Available at point of creative inspiration
6. Accurate audience measurement
7. Captures social context of media consumption
* Tomi Ahonen

29. “..available at the point of creative inspiration…”

32. The consumer will press 1 for
more information and receive
an SMS back with a link to the
SA Unite portal.

33. Hero, lead or support?
• Media
Display advertising
• Direct Marketing
Push messaging, lead generation
• Integrated Marketing
Interactive response channel for other media
• Community Building and CRM

35. Suzan calls Mike Ring
She expects to hear Suzan listens to the Ring
a ringing tone superimposed
but hears an advertising ring
advertising Tone 3-8
message instead seconds
Now Playing
Mike Receives benefits for allowing ads
to be played on his ring back tone
Messages Rotate
The messages are rotated so each time the caller makes a phone call he/she hears a different A-Tone.

36. In South Africa advertising agencies are
beginning to
GET IT

37. 37
Agencies getting involved
It is an area of massive
potential in this market and we
have invested resources
because I believe OMD needs
to take a leading role as the
largest media agency in SA.”
Josh Dovey
CEO, OMD

38. Size of the prize?
Continental Africa:
$8 Billion p.a. advertising spend*
*estimate based on multiple sources including EIU, WARC and World Fact Book

39. What will be spent on rate carded
Mobile Advertising in RSA in 2010?
$50 Million*
*personal estimate (not yet validated by MMA)
* Excludes push messaging and integrated mobile response

40. Thank You
www.yonder.co.za
www.ringco.net
www.rickjoubert.com