1. Shaping the Future of the Newspaper STRATEGY REPORT
ANALYSING STRATEGIC DEVELOPMENTS AND OPPORTUNITIES IN THE PRESS INDUSTRY Volume 8 N°4 APRIL 2009 © WAN
8.4 Around the world, faster
Winning mobile technological
infrastructure, multimedia
Mobile
handsets, advertising networks
and engaged users are driving
the mobile channel to become
Strategies an essential part of every
newspaper company’s media
mix
www.futureofthenewspaper.com
All the strategy reports are available to WAN members and subscribers at the SFN Web site

2. Shaping
the Future
of the Newspaper
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3. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
TABLE OF CONTENTS
Executive Summary 5
1 Global Mobile Market 7
Telecom Markets by Country 10
Global Mobile Usage 13
2G vs. 3G 14
Mobile Internet 15
Japanese Mobile Market 18
2 Mobile Marketing and Advertising 19
Successful Mobile Ad Campaigns in Japan 26
3 Mobile Tagging 29
QR Codes in Japan 30
2-D Barcodes in Europe 33
2-D Barcodes in the United States 37
4 Mobile Technologies and Platforms for Newspapers 39
Mobile – Play it all the Way 39
Mobile Analytics 41
Implementing a Mobile Strategy 43
5 Why Mobile is an Opportunity for Newspaper Companies 45
Distribution and Monetization 45
Conclusion 53
3

4. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
4

5. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
Executive Summary
Around the world, newspapers' digital soaring, with some markets reaching
strategies are finding more ways to reach saturation. In 2004, there were 1.74 billion
audiences with better, more tailored offerings mobile subscribers worldwide. That number is
for each audience member. There is no expected to reach 3.9 billion by the end of
question mobile, although currently a small 2009, and 4.9 billion in 2012, according to
slice of the digital pie, will increasingly be a Portio Research.
key platform audiences turn to, and
Mobile growth is happening in developing
newspapers must be there to meet them.
parts of the world, where handsets are cheaper
“There is no doubt a future-proof newspaper than PCs, and online access via mobile is
channel strategy means a strong mobile spreading like wildfire, bringing news and
presence. And the more browsers newspapers information to areas that previously had no
receive, the more they will gain in click- connection to the Internet. Meanwhile, in
throughs and advertising revenue,” states mobile-saturated markets like Japan, where
Anders Børde, marketing director for Oslo- mobile tagging was developed in 2003 and
based More Mobile Relations in Chapter 4. smartphone usage is high, the mobile is relied
“Newspapers that have the opportunity to talk on as a wallet, to make purchases online and
to customers (not only distributing content) on share information in real time through mobile
so many channels and several times every day Web sites, as well as for e-mailing, sending
are in a unique position to build rich relations SMS messages and voice calls – activities that
with their audiences. I believe newspapers, as are also becoming the norm elsewhere.
well as any other type of company, cannot take
Although each market around the world has its
the risk of not communicating with customers
own variables, they all have one thing in
over the mobile platform. It will simply be
common: each day, the number of people who
expected.”
cannot live without their mobile goes up. This
Indeed, mobile usage on a global scale is means newspapers not only have more
5

6. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
opportunities to reach audiences, but also to What newspapers should be thinking about is
engage them and understand them like never not only mobile ads, but how to use cell
before. phones for micro payment. We do that a lot
here, and that's the biggest driver of mobile
“It encourages users to repeat interaction. It
revenues.”
also connects what was previously
disconnected, drives specific actions, and Another interactive mobile revenue stream
embeds into greater context,” said Christopher seeing growing usage is mobile tagging. This
Billich, senior vice president of research and trend, which digitally links a 2-D barcode and
strategy at Tokyo-based Infinita, Inc., in mobile device, provides users with
Chapter 2. complementary information, such as coupons,
product details, content in other formats,
Just as newspapers launched print versions
contests and more.
hundreds of years ago, then Web sites in the
1990s, they are now developing a presence on For example, QR codes are used by
mobile. Publishers agree that, just as when McDonald's in Japan to access nutrition
they launched their first Internet sites, growth information. The fast food chain claims to
was slow, and missteps were made along the have 10 million registered users – this amounts
way to Web 2.0. They also agree there is a to 10 percent of Japan's population.
future for mobile advertising, and as adoption
In Spain, daily newspaper El País launched
rates increase, so will revenue opportunities.
several campaigns using the 2-D barcode in
“ ... the mobile advertising market seems to be 2008, one of which was a campaign that gave
heading the same way as the standard Web customers an easy way to access the mobile
advertising market. It just lags behind by a few site – by using their mobiles to scan barcodes
years, and it’s tempered by screen size and the in the paper.
functionality of the mobile phone.
In all, monetization strategies for mobile are
Smartphones like the iPhone are showing us
plentiful, ranging from advertising, to
what the future of mobile can look like, but not
micropayments to barcoding. As newspaper
everyone is going to want a big screen, and we
companies face mobile, like they did with the
will have to wait until some of the
Internet in the past, they are reminded that
functionality available on high-end phones,
above all else, as always, content is key.
like location information, and the ability to
stream video and audio filter down to the
lower-end of the market. We will also need to
wait for faster 3G connections, to get out of
the cities and into the towns, villages and
country before we can start to see video
advertising becoming more commonplace on
mobiles,” Marcus Austin, mobile product
manager for Guardian News & Media in
London, told SFN in Chapter 5.
Jo Christian Oterhals, CEO of VG Multimedia
AS in Oslo, pointed out in Chapter 5 that
mobile is ripe for advertising, as well as other
types of revenue.
“We believe eyeballs have the same value, no
matter if it's in print, online or on the cell
phone,” he said. “But today the revenues from
mobile ads aren't big. As always, what's most
important is to develop the product itself, drive
traffic to it and establish a position. When this
is in place, monetizing can start for real. I
think that the mobile Internet is just starting
up, and frankly the revenues all of us see today
is just a drop compared to what will come.
6

7. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
1. Global Mobile Market
Despite the global advertising downturn, the higher than that of other handset users. iPhone
mobile market continues to grow in the double users accessed:
digits now and projected well into the future. • News and information via their Web browser
The anticipated skyrocketing growth resembles 80 percent vs. 20 percent for all mobile users
the hockey-stick trajectory of Internet revenue • E-mail 76 percent vs. 13 percent
starting in 2001. • Mobile music, 66 percent vs. 23 percent
• Social networking, 55 percent vs. 13 percent
The burgeoning mobile ecosystem is • Web search, 55 percent vs. 12 percent
punctuated by dynamic usage patterns, • Buying a game, 19 percent vs. 3 percent
interactive content development, advertising • 23 percent of mobile media users have a
and subscription revenues and technological smartphone and 3.5 percent an iPhone. Of the
breakthroughs that signal huge potential for iPhone users 75 percent are male and mostly
newspaper companies to extend their brands aged 18-44.
and revenue-making for the future. Dozens of newspaper companies around the
world realise the potential of iPhones, and
One of the key drivers for the most recent
have developed their iPhone Web sites
spikes in usage of mobile phone functionality
accordingly. Among the newspaper companies
beyond voice usage is the surge of iPhones and
with downloadable applications from the
other smartphones sweeping the consumer
Apple iTunes App Store are:
market. The CEO of Deutsche Telecom
• Globe and Mail, Canada
reported that iPhone data usage is 30 times
• USA Today, United States
higher than from other phones. Google reports
• New York Times, United States
that iPhone search requests are 50 times higher
• O Globo, Brazil
than from any other phone.
• Straits Times, Singapore
comScore reports that iPhone multimedia data • Le Parisiene and Le Monde, France
usage in the United Kingdom is significantly • El Universal, Mexico
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8. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
Mobile Content Consumption: France, Germany and the UK, May 2008
80
Any news or info via browser 32
11
57
Accessed Web search 18 iPhone
5
Smartphone
32
15 Market
Watched mobile TV and/or video
7
42
Accessed a social networking site or blog 10
3
70
Listened to music on mobile phone 33
18
70
Used e-mail (work or personal) 26
8
% 0 10 20 30 40 50 60 70 80 90
Source: M:Metrics © World Association of Newspapers 2008-2009
• Associated Press, United States services, consulting services, and the
• Ria Novosti, Russia semiconductor industry.
• 20 Minutes, France and Germany
While mobile experts and research houses
• Aftonbladet, Sweden
agree the industry will grow quickly and
• Jakarta Globe, Indonesia
profitably, few agree how much the nascent
• Aftenposten, Norway
industry will be worth in the years ahead:
• El País, Spain
• Telegraph and Guardian, United Kingdom • According to PricewaterhouseCoopers, mobile
• Chicago Tribune, United States advertising will grow from almost $1.4 billion
According to Gartner Group, WTN News, in 2006 to $16.4 billion in 2012.
EDN, and Vault, the global mobile market • ABIResearch projects the world market for
accounted for US$718.4 billion in 2006, mobile marketing and advertising was worth
higher than many other sectors, such as IT about $3 billion in 2007, and will be valued at
services, pharmaceutical sales, financial $19 billion in 2012.
Global Advertising Market: Internet vs. Mobile
% US$ millions
140 120,000
129.1 % Change Internet Advertising (US$ millions)
% Change Mobile Advertising (US$ millions) 103,958
120
100,000
107.4 93,461
103.0
100 82,324
2008-12 80,000
CAGR 85.6
70,733
80 17.3
58,809
44.0 65.5 60,000
60 46,843
46.5
42.4 35,734 42.8 40,000
40.1 39.4
40 44.2
27.9 24,778 28.4
17,404 31.1
20 12,420 25.5 9,165 16,407 20,000
20.3 12,774
4,382 6,418 16.4 13.5
703 1,427 2,648 11.2
148 339
0 0
2003 2004 2005 2006 2007p 2008 2009 2010 2011 2012
Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates © World Association of Newspapers 2008-2009
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9. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
• Informa Telecoms & Media estimates sectors, according to Portio Research. In 2006,
worldwide mobile advertising spending at the mobile market led with a growth of more
$871 million in 2006 and projects it will reach than 16 percent, double that of the second
$11.35 billion by next year. highest pharmaceutical sector, and also beat IT
services, travel and tourism as well as financial
• Overall worldwide mobile revenue,
services.
including advertising, subscriptions and
handsets, will grow from $519.7 billion in
In 2007, the year-over-year growth of the global
2004 to $1.09 trillion in 2012, according to
mobile market is 11.9 percent, even higher than
Portio Research.
the semiconductor industry, consulting services,
The mobile market also grew faster than other or financial services, according to Portio.
Worldwide Mobile Revenue, 2004-2012(e)
US$ billion
1,200
1,094.9
1,000 1,045.7
993.6
936.0
800 874.3
803.7
718.4
600
616.4
519.7
400
200
0
2004 2005 2006 2007(e) 2008(e) 2009(e) 2010(e) 2011(e) 2012(e)
Source: Portio Research © World Association of Newspapers 2008-2009
Worldwide Mobile Market vs. Other Industries – Revenue, 2006
US$ billion
800
700
718.4
672.3
600
604.5
500
472.2
400
300
280.2
260.2
200
100
0
Semiconductor Consulting Financial Pharmaceutical IT Services Mobile Market
Industry Services Services Sales
Source: Gartner, WTN News, EDN, and Vault © World Association of Newspapers 2008-2009
9

10. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
Year-Over-Year Growth Rate, Mobile vs. Other Industries,
% 2006 and 2007(e)
18
2006 2007(e)
16 16.6
14
12
10 11.9
8
8.0 8.1
6 7.1
6.4
4 4.6 4.5
2 3.5
0
Financial Pharma- Travel & IT Mobile Financial Semi- Consulting Mobile
Services ceutical Tourism Services Market Services conductor Services Market
Industry
Source: Portio Research © World Association of Newspapers 2008-2009
According to Portio Research, in 2006, SMS
Share of Worldwide Mobile contributed the majority of overall mobile data
Data Service Revenue, services revenue, which accounted for 57.6
2006 vs. 2011(e) percent. MMS came next with a 14.5 percent
contribution.
2006
In 2011, SMS is expected to remain the
13.3
number one contributor, but its share is
1 forecast to drop dramatically from 57.6
3.9 percent to less than 40 percent. MMS is still
2.5 ranked second, with its share down slightly to
14.2 percent.
6.7
The biggest gainer is mobile video, which is
0.4
57.8 expected to increase from only 1 percent in
2006 to nearly 8 percent in 2011.
14.5
Mobile music, mobile IM and mobile e-mail
are also on the upswing, according to Portio.
2011(e)
17.5 Telecom Markets by Country
According to IDATE and data from operators
39.8 and national regulators, in 2007 the United
7.9 States reported £133 billion telecom service
revenues, the highest among all other countries
on the table. Japan ranked second with £50.4
6.0
billion.
3.5 In terms of telecom revenues per capita, the
United Kingdom, United States and Canada
9.0
are in the top three with more than £430.
2.2 14.2
Fixed line penetration is not that impressive
SMS Mobile Games
across countries – in Germany, there are 66
MMS Mobile e-mail
fixed lines per 100 people, the highest among
Mobile IM Mobile Video
Mobile Music Others
all the countries. In Japan, France, and Italy,
the penetration is even lower than 50 percent.
Source: Portio Research
© World Association of Newspapers 2008-2009 The United States and United Kingdom have
10

11. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
Telecoms Market Key Indicators, 2007
UK France Germany Italy USA Canada Japan
Telecoms service revenues £26.9bn £24.4bn £30.4bn £20.5bn £133.0bn £14.2bn £50.4bn
Telecoms revenues per capita £443 £382 £369 £353 £442 £432 £395
Fixed lines per 100 population 55.5 45.1 66.0 44.4 53.1 58.3 47.4
Monthly outbound fixed-line minutes per capita 203 138 171 122 223 182 78
Mobile connection per 100 population 121.0 86.9 117.9 154.4 85.3 61.6 78.9
Share of mobile post-pay connections 36% 66% 45% 10% 92% 78% 98%
3G connections per 100 population 20.6 9.2 10.6 41.4 14.0 0.9 65.4
Source: IDATE, operators, national regulators © World Association of Newspapers 2008-2009
the most monthly outbound fixed line minutes mobile users use text messaging. MMS is most
per capita, at more than 200 minutes. Japan, on popular in Italy – more than four out of 10
the contrary, has the least, at less than 80 users there use MMS and photo messaging. E-
minutes per capita. mailing is rarely used in most of the countries,
except for Japan, where three out of four users
3G connections per 100 people are particularly
use e-mail on their mobile phones, while text
high in Japan, at more than 65. Italy comes
messaging, MMS and photo messaging are
next with 41 connections, while France and
relatively low.
Canada lag behind with less than 10 3G
connections per 100. Through its survey of countries, Ofcom's research
also revealed that females are more likely to
Text messaging is still more popular compared
use both fixed lines and mobiles than males.
to MMS, photo messaging and e-mailing
among most of the countries surveyed for In Japan, the United States, Italy, France and
Ofcom's research, Understanding International the United Kingdom, weekly mobile usage is
Communications Behaviour, published in higher than landline, while in Canada, fixed
October 2008. In Germany, Italy, the United line usage is much higher than mobile. In
Kingdom and France, more than 70 percent of Germany, usage of the two devices almost tie.
Communication Usage of Mobile Phones
Which of the following do you use your mobile phone for?
Base: all adults aged 18+ who own a mobile phone
% (UK 929, France 914, Germany 946, Italy 952, USA 834, Canada 785, Japan 914)
100
90 Text messaging
MMS or photo messaging
86
80
79 E-mailing
78
70 74 75
60
50 55
46
40
41
30
27 26 25 27
20
14 16
10 12 13
9 10 10 8
6
0
UK France Germany Italy USA Canada Japan
Source: Ofcom’s Understanding International Communications Behaviour research, October 2008
© World Association of Newspapers 2008-2009
11

12. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
Percentage of Online Users Using Fixed Line and Mobile
on a Weekly Basis
Additional proportion of women, in addition to male proportion, claiming weekly use of a landline
Proportion of men,claiming weekly use of a landline
Additional proportion of women, in addition to male proportion, claiming weekly use of a mobile
Proportion of men, claiming weekly use of a mobile Denote a statistically significant change
%
100 1
1 96 6
4 4 3 2
88 11 88
80 7 84 86 86
8 5 81
77 76 1
72 74
5 70
60
61
14
40
41
20
0
UK France Germany Italy USA Canada Japan
Source: Ofcom’s Understanding International Communications Behaviour research, October 2008
© World Association of Newspapers 2008-2009
European Mobile Content Revenue by Country and Category, 2013
Revenues/per capita ranking:
million 1 13 3 4 11 15 10 2 9 8 16 14 5 6 12 7
1,200
1,000
Mobile Content Revenues
800
600
400
200
0
Germany
France
Italy
Spain
Netherlands
Greece
Sweden
Austria
Portugal
Belgium
Switzerland
Denmark
Norway
Ireland
Finland
UK
Other content 152 161 142 137 97 35 22 22 17 21 19 14 13 11 9 13
Video/TV 251 241 335 334 129 43 30 31 24 36 33 21 17 16 14 21
Games 218 190 169 134 111 37 25 26 21 29 20 17 15 12 8 15
Music 178 145 154 97 90 31 23 33 16 20 19 12 16 12 8 10
Logos 17 14 43 30 32 4 5 5 2 4 4 2 3 2 2 2
Ring-back tones 44 45 27 37 22 8 10 6 5 5 4 4 3 3 3 2
Ring tones 120 92 42 71 62 17 13 13 11 12 9 9 7 6 5 5
Source: Jupiter Research Mobile Forecast (Western Europe), June, 2008 © World Association of Newspapers 2008-2009
12

13. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
In 2013, the United Kingdom, Germany, Global Mobile Usage
France, Italy and Spain will represent
79 percent of the overall mobile content market Global mobile subscribers accounted for 1.74
in Europe, which accounts for 5.4 billion billion in 2004, and are expected to rise to 3.9
in total, according to Jupiter Research's Mobile billion this year, growing to 4.9 billion in
Forecast, June 2008. Video and TV revenue 2012, according to estimates by Portio
will make up the biggest chunk in the five Research. The worldwide mobile users will
countries, followed by games and music. reach 4.9 billion in 2012.
According to Informa Telecoms & Media’s
World Cellular Information Services,
Worldwide Mobile Subscribers, 2004-2012(e)
Million
6,000
5,000
4,906.9
4,589.7
4,000 4,254.3
3,901.3
3,502.2
3,000
3,080.9
2,650.2
2,000 2,169.7
1,744.5
1,000
0
2004 2005 2006 2007(e) 2008(e) 2009(e) 2010(e) 2011(e) 2012(e)
Source: Portio Research © World Association of Newspapers 2008-2009
Worldwide Mobile Phone Subscriptions, 1999-2009
Billion Million
4.00 600
Yearly Net Adds (Million)
3.75
Cumulative Subscribers (Billion)
3.50
3.25 500
3.00
2.75
400
2.50
2.25
2.00 300
1.75
1.50
1.25 200
1.00
0.75
100
0.50
0.25
0.00 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Informa Telecoms & Media’s World Cellular Information Services © World Association of Newspapers 2008-2009
13

14. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
worldwide mobile phone subscriptions only
accounted for 500 million in 1999. However, Mobile Phone Users
the numbers increase more than 200 million Who Only Use Voice Services,
every year. In 2009, the total subscriptions will
%
2001 vs. 2006
total nearly four million.
90
According to Strategy Analytics, the Asia 80 2001 2006
Pacific region has contributed the most mobile 70
users worldwide throughout the years, 60
boosting from less than 400 million in 2002 to 50
nearly two billion in 2010. North America 40
and Western Europe have increased at a flat 30
pace; users from each remained at less than 20
400 million throughout the years. 10
The rest of the world, however, grew rapidly 0
North Western Asia Rest
from less than 300 million in 2002 to nearly America Europe Pacific of World
1.5 billion in 2010, next only to the Asia Source: Strategy Analytics
© World Association of Newspapers 2008-2009
Pacific.
sales of each are expected to reach 1.1 billion
Worldwide Mobile Users in 2011. TV phones are growing from niche
by Region, 2002-2011 to an expected 150 million in 2011, according
Million Asia Pacific to Strategy Analytics.
2,500 Rest of the World
Western Europe
2,000 North America
1,500 Sales of Multimedia Handsets,
North America, Western Europe
1,000 and Asia Pacific, 2002-2011
500 Million
1,200
Camera Phone
0 1,000 Music Phone
02
03
04
05
06
07
08
09
10
11
TV Phone
20
20
20
20
20
20
20
20
20
20
800
Source: Strategy Analytics
© World Association of Newspapers 2008-2009 600
400
The number of people using mobile solely 200
for voice services have dropped, according to
0
Strategy Analytics. In 2001, more than eight
02
03
04
05
06
07
08
09
10
11
20
20
20
20
20
20
20
20
20
20
out of 10 North American users used mobile
phones solely for voice service, but that Source: Strategy Analytics
© World Association of Newspapers 2008-2009
percentage decreased to 50 percent in 2006.
In Western Europe and rest of the world,
about 60 percent of the users were using
mobile only for voice services. However, 2G vs. 3G
the percentage has dropped to less than 20 According to IDATE, the 2G network is highly
percent and about 30 percent, respectively. penetrated in all the countries surveyed, with
The Asia Pacific has the lowest percentage of 100 percent reach in the United Kingdom,
users who use mobile only for voice services – Japan and Italy, and more than 95 percent
about 50 percent in 2001 and then down penetration in other countries.
to about 10 percent in 2006. Multimedia
handsets in North America, Western Europe, 3G in Japan also has 100 percent penetration,
and the Asia Pacific have taken off since the highest in all the countries. The United
2002, especially for camera phones and Kingdom is next, with 92 percent 3G
music phones. In 2002, camera phones and penetration. In other countries, the reach is
music phones sold less than 50 million, but around 70 percent to 80 percent.
14

15. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
Mobile Network: 2G vs. 3G Availability
% 2G 3G HSPA
100
100 99 99 100 98 100 100
95
92
80 87
80 78 78 78 78
70 70 70 70
60
40
20
15
0
UK France Germany Italy USA Canada Japan
Note: Some figures estimated for the UK, Germany, Canada and Japan. HSDPA figure unavailable in Canada.
Source: IDATE, 2008 © World Association of Newspapers 2008-2009
High Speed Packet Access (HSPA), a standard
that improves the end-user experience by Global Wireless Internet Access
increasing peak data rates, is quite popular in Users through Mobile Phone,
the European countries surveyed and Japan. 2002-2008
The United Kingdom leads with 87 percent Million
reach, while in other countries reach is between 1,200 114% 107%
1,100 48% 39% 20% 19%
70 percent to 80 percent. In the United States, 1,000
reach is relatively lower, at only 15 percent. 900 920
800 Number of users
700 Growth rate % 770
Mobile Internet 600 640
500
According to iResearch, global wireless online 400 460
access users though mobile phone increased 300
310
200
from 70 million to 920 million in 2008. The 100 150
growth rate was more than 100 percent in 2003 0 70
and 2004, but dropped to double digits in the 2002 2003 2004 2005 2006e 2007e 2008e
Source: iResearch Inc.
years following. © World Association of Newspapers 2008-2009
Mobile Internet Penetration, Europe, Nov., 2007
47.2 m
+4.8%
Mobile
Internet users
21%
45.0 m
Non-mobile
Internet users
79%
August 2007 November 2007
Source: Mobiento © World Association of Newspapers 2008-2009
15

16. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
Flat Rate Monthly Pay Mobile Internet Subscribers by Country, 2013
Million %
12 50
11.7 Flat-rate mobile 11.7
Internet subscribers 11.4
(pay monthly only)
10
Share of flat-rate mobile 40
Internet subscribers (%)
8 Average 8.2 8.0 30 30
in Europe 27 28 30
6 22 23 23
20 21 21
18 19 20
17 17
4 15
12
2.8 10
2
2.0
1.3 1.5 1.5 1.3 1.3
1.1 1.1 1.1
0.7
0 0
Greece
Portugal
Belgium
Italy
Germany
Switzerland
Ireland
Spain
Netherland
Austria
France
UK
Sweden
Denmark
Finland
Norway
Source: Jupiter Research Mobile Forecast (Western Europe), June 2008 © World Association of Newspapers 2008-2009
In Europe, mobile Internet users accounted for Scandinavian countries outperform others –
21 percent of overall online users. The overall with over 27 percent. Those which lag behind
mobile Web users in Europe reached 45 the overall European average, which is 21
million in August 2007, and increased 4.8 percent, include Greece, Portugal, Belgium,
percent to 47.2 million in November 2007, Italy, Germany, Switzerland and Ireland.
according to Mobiento.
According to Nielsen, in the second quarter
According to Jupiter Research Mobile Forecast, of 2008, there were 34.3 million PC-based
in 2013, Germany and France will lead in terms Internet users and 5.8 million mobile Web
of the number of flat-rate monthly pay mobile users. The numbers went up to 35.3 million and
Internet subscribers – each with 11.7 million 7.3 million in the third quarter, respectively.
users, followed by the UK’s 11.4 million. Italy
Mobile Internet has a relatively higher
and Spain come next with 8.2 million and
quarterly growth in terms of unique audience –
eight million subscribers, respectively.
25 percent, compared to PC-based Internet,
In terms of percentage of mobile population, which is only 3 percent.
Mobile Internet and PC-based Internet Unique Audience and Growth,
UK, Q2 vs. Q3, 2008
Unique Audience (million) Unique Audience % Growth
40 30
PC-based Internet Mobile Internet
35 25
34.3 35.3 25%
30
20
25
20 15
15
10
10
5
5 7.3
5.8
0 3%
0
Q2 Q3 Q2-Q3
Source: Nielsen © World Association of Newspapers 2008-2009
16

17. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
Mobile Content Consumption: France, Germany and the UK, May 2008
80
Any news or info via browser 32
11
57
Accessed Web search 18 iPhone
5
Smartphone
32
15 Market
Watched mobile TV and/or video
7
42
Accessed a social networking site or blog 10
3
70
Listened to music on mobile phone 33
18
70
Used e-mail (work or personal) 26
8
% 0 10 20 30 40 50 60 70 80 90
Source: M:Metrics © World Association of Newspapers 2008-2009
Seventy percent of iPhone users listen to music
or use e-mail on their phone, while 33 percent Global Desktop Web Sites
and 26 percent of smartphone users do so. vs. Mobile Web Sites
The overall market average is 18 percent and Desktop Web Sites
8 percent, respectively. 200 (to reach 850M computers)
Numbers of Web Sites (million)
Mobile Web Sites
Mobile search, mobile social networking and (to reach 3.5B handsets)
150
mobile TV are relatively not that popular – 57
percent, 42 percent and 32 percent of iPhone
users do so, versus 18 percent, 10 percent and 100
15 percent of smartphone users. The average
market reach of these three activities are less 50
than 10 percent.
0
According to Whoop, the number of Internet
1995 2000 2005 2008 2009 2010
Web sites, emerging in the mid 1990s, grew to
Source: Whoop © World Association of Newspapers 2008-2009
more than 150 million and reached 850 million
computers between 2005 and 2008. Mobile Web will reach more than 150 million in number on
sites, emerging in early 2000s, by comparison, a total of 3.5 billion handsets in 2010.
U.S. Mobile Users who Accessed News and Information,
Unique users
Three-month Average Ending January 2008
(000s) and January 2009 %
70,000 120
60,000
107%
63,182 100
50,000 Jan-08 87%
Jan-09 80
40,000 % Change 71%
36,870 60
30,000
40
20,000 22,369
19,283
10,000 20
10,821 10,312
0 0
Daily Weekly Ever in the month
Source: comScore © World Association of Newspapers 2008-2009
17

18. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
In the United States, according to comScore,
the mobile users who ever accessed news and Japanese Mobile Market
information on a monthly basis were up from Statistics
36.8 million in January 2008 to 63.2 million in
Highest Average Revenue Per User (ARPU) globally
January 2009, with a 71 percent increase.
106 million mobile subscribers
The growth is even higher in the heavy-used 9 out of 10 use mobile data services
groups. Those who do so on a weekly basis 4 out of 5 on 3G
increased from 10.3 million to 19.3 million, Messaging is almost free
up 87 percent, while the daily users rose from 40% of mobile data users are on data flat rate plans
10.8 million to 22.4 million – a 107 percent Source: Infinita, Inc. and Telecom Carriers Association
increase. © World Association of Newspapers 2008-2009
Japanese Mobile Market
Japan is known as the most advanced mobile Key Mobile Operators in Japan
market in the world, with more than 106 Carrier Total 3G
million subscribers, the highest percentage of DoCoMo 53,628,700 45,199,900
3G users, the highest average revenue per user, KDDI 30,304,900 29,916,400
and the highest concentration of multimedia
SoftBank 19,111,700 15,112,700
users. Nine out of 10 mobile users use data
Total 103,045,300 90,229,000
services, while at least 80 percent are on a 3G
Source: Telecom Carriers Association, June 2008
network. Messaging is almost free in Japan, © World Association of Newspapers 2008-2009
and at least four out of 10 data users are on
data flat rate plans, according to Infitina, Inc.
and Telecom Carriers Association. The three
main operators, DoCoMo, KDDI, and Japanese Mobile Usage
SoftBank, have over 103 million mobile (% of Respondents)
subscribers, and over 90 million of these users enabled 100%
Mobile Search
are on 3G. usage 44%
enabled 55%
In addition, Japan boasts some of the most GPS
usage 23%
advanced mobile functionality used by its enabled 46%
Mobile TV
subscribers. Mobile phones in Japan are usage 36%
routinely used for boarding passes for airlines enabled 73%
Mobile NFC
usage 18%
and trains, student and employee
Base: All Respondents, N= 3,178 (2008)
identification, e-tickets and e-keys. A mobile Source: impress R&D, September 2008
can also serve as an electronic purse, which © World Association of Newspapers 2008-2009
users can use at restaurants or shops. The
accessibility of purchase history can also
frequency wireless communication technology
combine with loyalty programmes and
which enables the exchange of data between
coupons, which allow marketers to send
devices over a short distance, is enabled
relevant and customised messages to
among at least seven out of 10 handsets,
individual users. The mobile Web also allows
although only 18 percent use it. Mobile TV is
users to socialise, make purchases, or get any
available to about half of the respondents,
information they are looking for immediately.
while nearly four out of 10 use it.
According to the survey conducted by impress
R&D, many mobile functionalities have a fair
reach in Japan, although it may still need some
time for users to really adopt them.
For example, all the Japanese respondents
have access to mobile search, although only 44
percent actually use it. GPS on mobile is
available among 55 percent of users, while
only 23 percent use it. Mobile NFC , or Near
Field Communication, a short-range high
18

19. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
2. Mobile Marketing
and Advertising
Despite a downturn in overall advertising The growth of mobile advertising resembles
spending, global mobile ad spending is on the the “hockey stick” growth pattern of Internet
ascendancy, expected to grow in double digits advertising in the early 2000s. While it
worldwide for the foreseeable future. represents less than 1 percent of all interactive
Innovative newspaper companies are investing spending in most places globally in 2009,
in the development of content and business mobile advertising spending is expected to
models on the mobile channel, knowing that grow exponentially.
the mobile Web will continue to grow and
become more lucrative for the future. In the United States alone, mobile advertising
spending will grow from US$648 million in
2008 to $3.33 billion in 2013, a 2009 study by
eMarketer forecasts. Global mobile advertising
U.S. Mobile Advertising Spending spending is and will continue to be dominated
(Millions of dollars and percent change, by mobile text message advertising, dwarfing
US$ million year over year) the next two most popular types of mobile
3,500 39.3% advertising, display and directory search
3,000 3,330 advertising, a 2008 study by eMarketer states.
2,500 69.5%
2,390 Global mobile text message advertising
2,000
spending will grow from $2.56 billion in 2007
1,500 41.7% to $14.17 billion in 2012, while mobile display
30.9% 1,410 advertising will grow from $53 million to $1.2
1,000
35.0% 17.3% 995
500 760 billion, and mobile search will expand from
648
$83 million to $3.77 billion in the same period,
0
2008 2009 2010 2011 2012 2013 according to eMarketer.
Source: eMarketer, February 2009
© World Association of Newspapers 2008-2009 A number of factors are contributing to the
19

20. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER
models for the mobile channel as part of
Global Mobile Advertising newspaper companies’ mobile marketing
Spending, by Format strategies. A variety of revenue-making
(Millions of dollars, 2007-2012) campaigns have been launched, but remain a
2007 2008 2009 2010 2011 2012
small subset of the projected mobile
Mobile message advertising spend for the foreseeable future.
advertising* 2,560 4,200 6,440 9,260 11,960 14,173
Mobile display
• Global mobile subscriptions by far surpass
advertising** 52 142 338 629 945 1,203 broadband subscriptions. One-third of the
Mobile search world’s population subscribes to a mobile
advertising*** 83 244 597 1,290 2,345 3,773
Total 2,695 4,586 7,375 11,179 15,250 19,149
phone service, while only 3 percent to 4
Note: numbers may not add up to a total due to rounding. percent subscribe to broadband Internet. In
* Spending on placement in text messages, includes direct spending some countries, particularly in the developing
on message campaigns as well as spending on promotional coverage
of end-user messaging costs. world, mobile is the primary digital media.
** Spending on display banners, links or icons placed on WAP,
mobile HTML sites or embedded in mobile applications such as maps
or entertainment services (eg games or video).
A variety of agencies are riding the wave of
*** Spending on sponsored display ads and text links that appear mobile advertising and marketing demand,
alongside mobile search results, as well as spending on audio ads
played to mobile phone callers making a directory inquiry. including some agencies that have strong ties
Source: eMarketer, 2008 © World Association of Newspapers 2008-2009 to newspaper companies. These companies are
offering a variety of services to help promote
recent surge in mobile advertising growth, and newspaper company mobile services, and also
the bullish projections for the next five years handle mobile advertising campaigns.
include the wide distribution of smartphones,
improving network capabilities and attractive
MORE Mobile Marketing
mobile subscription rates.
Owned by: Telenor Group, Oslo
• Smartphones and iPhones adoption is Founded: 2008
ratcheting up the access of multimedia Countries served: Nordics
information. iPhone usage reportedly Marketing director: Anders Børde
represents 30 times more data usage and 50 www.moremobilerelations.com
times more search requests than other phones.
• Unlimited mobile data plans increase in MORE Mobile Relations, a year-old amalgam
popularity, which encourages more access to of four mobile marketing companies from each
multimedia information. of the Nordic countries, provides services to
assist clients in developing relationships with
• Mobile technologies are developing more
their customers using mobile marketing and
multimedia, geography-targeting and
advertising tactics.
demography-targeting advertising units to
reach consumers more precisely. Among MORE’s clients are newspaper
companies, including Schibsted’s Verdans
• Advertisers and agencies are increasingly
Gang, and A-Pressen, a group of regional
interested in the target-ability and acceptance
Norwegian newspapers. MORE and A-Pressen
of mobile advertising.
are both owned by Telenor Group, one of the
• Publishers are building sustainable business world’s largest telecoms. While the most
Global Smartphone Sales and Market Share, by Vendor
(In thousands of units, Q4 2007-2008)
Company 4Q08 Sales Market Share4Q08 4Q07 Sales Market Share4Q07 4Q07-4Q08 Growth
Nokia 15,561.7 40.8% 18,703.3 50.9% -16.8%
RIM 7,442.6 19.5% 4,024.7 10.9% 84.9%
Apple 4,079.4 10.7% 1,928.3 5.2% 111.6%
HTC 1,631.7 4.3% 1,361.1 3.7% 19.9%
Samsung 1,598.2 4.2% 671.5 1.8% 138.0%
Others 7,829.7 20.5% 10,077.3 27.4% -22.3%
Total 38,143.3 100% 36,766.1 100% 3.7%
Source: Gartner Group, 2008 © World Association of Newspapers 2008-2009
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21. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES
Scandinavian Consumer Study of Mobile Message Usefulness
Medium Degree of perceived usefulness
Receive special promotions from airlines 44
37 Norway
on your mobile 37
Sweden
Find more info on destination/hotel/attraction 47
48 Denmark
on mobile Web sites 38
52
Receive discount coupons to your mobile 45
40
Search via mobile closest shop, restaurant, 50
55
pharmacy 58
Receive to your mobile 10 best offers 31
34
when entering a shopping mall 30
Download film content and cinema 42
33
programme to your mobile 39
%0 10 20 30 40 50 60 70 80 90
High Degree of perceived usefulness
Receive alert from post office 80
83
on package delivery 71
Receive reminder alert for appointment 80
79
with dentist/doctor 72
Receive booking information 75
72
to your mobile 72
Receive alerts from community, school, 66
80
traffic authorities, etc on your mobile 64
%0 10 20 30 40 50 60 70 80 90
Source: More Mobile Marketing, 2008 © World Association of Newspapers 2008-2009
Scandinavian Consumer Study of Mobile Message Usefulness
Advertising Channel Intrusiveness
60
TV 60 Norway
64
Sweden
31
Newspaper 11 Denmark
25
43
Radio 50
45
25
Cinema 15
22
42
Internet 34
49
19
Boards 5
8
62
DM (traditional mail) 40
47
55
Mobile messages without permission 82
60
20
Mobile messages with permission 20
20
% 0 10 20 30 40 50 60 70 80 90
Source: More Mobile Marketing, 2008 © World Association of Newspapers 2008-2009
obvious mobile strategy is to create a mobile message alerts for sports scores, weather,
version of the newspaper, there are a variety of traffic, news, stock market on an opt-in basis,
strategies to execute, said Marketing Director developing the mobile user database through
Anders Børde, including building loyalty marketing events and giveaways, and more.
strategies, a coupon business, sending out text (See Chapter 4 for Børde’s essay on the subject).
21