3. Experts have predicted that over the next 5 years , mobile advertising will become a $2 billion business . JupiterResearch, 2008 DEEPSPACE mobile
4. 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 a $2.3 billion business . LocalMobileSearch, a subsidiary of Opus Research DEEPSPACE mobile
5. 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 DEEPSPACE mobile
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 DEEPSPACE mobile
18. The mobile market is growing rapidly. Harris Interactive, 2008 40M Americans already browse on their phones. (but that’s less than 20% of users) 95M have internet access. DEEPSPACE mobile
19. But, mobile ad growth has been painfully slow. DEEPSPACE mobile
20. While some users have mobile web access, they don’t use it much. 6.4 sites per month vs. 100+ for fixed internet. Harris Interactive, 2008 DEEPSPACE mobile
21. And, users perceive mobile ads to be an intrusion Little or no perceived value. Perception that the user is paying for the ads. DEEPSPACE mobile
22. Few people claim to be interested in mobile ads. DEEPSPACE mobile
24. And, other studies show users are interested in mobile ads. 56% of teens. 37% of adults. Harris Interactive, 2008 DEEPSPACE mobile
25. But… they want to be compensated for viewing ads. DEEPSPACE mobile
26. But they want to be compensated for viewing ads. Teens want cash and freebies: Cash (80%) Downloads (61%) Music (57% ) Minutes (53%) Harris Interactive, 2008 DEEPSPACE mobile
27. But they want to be compensated for viewing ads. Adults want freebies and coupons: Free minutes (49%) Coupons (37%) Free entertainment (37%) Harris Interactive, 2008 DEEPSPACE mobile
28. The question for you is when to enter the fray, and how DEEPSPACE mobile
29. What will determine winners and losers? What role will the carriers play? Will the political environment play a role? DEEPSPACE mobile
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. JupiterResearch, 2008 DEEPSPACE mobile
31. What are the keys to success in mobile advertising? DEEPSPACE mobile
32. Mobile ad growth has been painfully slow.. But why? DEEPSPACE mobile
33. Carriers are not risk-takers. Dependent upon recurring revenue Few are willing to risk being first • Churn is their biggest enemy DEEPSPACE mobile
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 Harris Interactive, 2008 DEEPSPACE mobile
35. Still, growth in the past 12 months has been 104%. From a small base, too. AdMob DEEPSPACE mobile
36. But, most users still do not have the right equipment. DEEPSPACE mobile
37. The growth is likely to accelerate, and technology is an ally. DEEPSPACE mobile
38. Mobile phones are improving. Screen quality Video capability Location capability • Matching people & places DEEPSPACE mobile
39. It began with the iPhone, but is rapidly expanding. DEEPSPACE mobile
52. And there is $$$ to be made. Social networks/internet sites Ad agencies Ad placement companies Carriers Advertisers DEEPSPACE mobile
53. Carriers must differentiate or die. DEEPSPACE mobile
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 DEEPSPACE mobile
55. MVNOs are consolidating or disappearing as fast as they appear. Helio is saved by Virgin Mobile Amp’d & Movida disappear DEEPSPACE mobile
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) DEEPSPACE mobile
57. Price has always been a primary differentiator. But everyone subsidizes phones. DEEPSPACE mobile
58. Price has always been a primary differentiator. A huge part of the spending is price-based ads. DEEPSPACE mobile
59. Price has always been a primary differentiator. Mobile ads may allow price differentiation. Likely the first reason for carriers to get excited. DEEPSPACE mobile
60. It’s happening in Europe. Blyk targets only the 16 to 24-year-old market. Profiled based on lifestyles and interests. DEEPSPACE mobile
61. It’s happening in Europe. Free voice and data. 43 voice minutes and 217 texts a month per month. Provided customers accept ads. DEEPSPACE mobile
62. It’s happening in Europe. Blyk claims 29% click-through. Down from the 43% they claimed last November. DEEPSPACE mobile
63. It’s happening in Europe. Over 100,000 customers in the first 7 months. DEEPSPACE mobile
64. Blyk claims to be cost-effective. Are people buying or just clicking? Source: E-consultancy, September 2007, trade estimates , February 2008. DEEPSPACE mobile Medium Avg. Response Rate (%) Cost/Response ($) Online Advertising 0.5 3.00 E-mail 2.5 4.00 Direct Mail 2.0 25.00 SMS Push 4.5 4.45 Blyk 29.0 1.06
66. People want to be connected. Facebook, MySpace, and about a dozen copycats every month. All are testing mobility. DEEPSPACE mobile
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 DEEPSPACE mobile
68. Likely to drive some location-based service. DEEPSPACE mobile
69. All of this is likely to take 2-3 years to mature. DEEPSPACE mobile
71. May reduce the cost of phones / service. DEEPSPACE mobile
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 DEEPSPACE mobile
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 DEEPSPACE mobile
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. DEEPSPACE mobile
81. Privacy may be a “ black swan, or the elephant in the room.” DEEPSPACE mobile
82. Is privacy a real consumer issue? DEEPSPACE mobile
83. Is privacy a real consumer issue? How many passwords do you have? DEEPSPACE mobile
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? DEEPSPACE mobile
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. DEEPSPACE mobile
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. DEEPSPACE mobile
88. Why begin spending today… … if the market will not really develop for several years? DEEPSPACE mobile
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 DEEPSPACE mobile