Trends in Mobile Marketing… Local (South Africa) and International. October 2010

1. Trends in Mobile
Marketing…
Local and International
AMASA October 2010
Raymond Buckle / Brett StClair
Co Chairman SA
Mobile Marketing Association

2. Agenda
We‟ll cover…
• The Channel
• The Audience
• Trends
• What does this mean for you
• Real world Examples
• The Mobile Marketing Association

3. What separates the Mobile Phone
from other Marketing Channels?
Can you imagine living without it?

4. Experiment
• SMS to 38268
1: Have used mobile advertising
2: Have not used mobile
advertising
3: Planning to in the near future

6. 12 to 14 interactive screens

7. Mobile as a Medium - the 7th Mass Media
Print
Outdoor
Cinema
Radio
Television
Internet
Mobile
1500’s 1800’s 1910’s 1920’s 1950’s 1990’s 2000’s

8. The drivers for growth
• Convergence
• Economy
• Marketing challenges
• Speed
• Handsets
• Data tariffs
• Industry promotion
• Consumer behaviour

9. Worldwide growth but…….

10. Who are the SA Mobile Consumers?
General take…
Mobile Internet

11. 22%
30%
23% 23%
3%
R 1 523
R 2 838
R 5 904
R 14 781
R 25 519
R 0
R 5 000
R 10 000
R 15 000
R 20 000
R 25 000
R 30 000
0%
5%
10%
15%
20%
25%
30%
35% TraditionalMarket
LSM1-3
Rural
TransitionalMarket
LSM4-5
Rural/Peri-Urban
MiddleClass
LSM6–7Low
Peri-Urban/Urban
UpperMiddleClass
LSM7High–10Low
Metros
Elite
LSM10High
Metros
Interactive Reach and the Muller Cluster Model...
90% Mobile Phone
60-70% MMS / Mobile Internet
10-20% Email & Internet

12. Meet the most popular phone in the
world…

13. G fK R e ta il a nd T e chno logy 2/2010
M O BILE P H O N E S,SM A R T P H O N E S
S ale s U n its %
JA N 09 - JA N 10
So uth Africa
© b y G fK -RT , w w w .g fkrt.c o m P RJ 4 1 3 4 - RG 1 6 7 0 9 6 9 - RP 6 9 4 5 2 0 8 - ID 2 2 8 7 3 6 4 1 5
T EL M o bile ph on e s ZA
T EL S m artp ho n es Z A
JA N 09 FEB 09 M A R 0 9 A P R0 9 M A Y0 9 JUN 09 JUL0 9 A U G0 9 S EP 09 O CT09 N O V0 9 D EC09 JA N 10
87 6
18
68 9
20
88 7
30
74 6
32
67 5
27
70 9
42
89 1
65
70 6
47
69 1
62
85 1
84
76 7
70
1.188
95
93 2
10 4
T E L M ob ile p h o n e s Z A S a les T h s. U n its
T E L S m artp h on es Z A S ale s T h s. U n its
9 8
2
9 7
3
9 7
3
9 6
4
9 6
4
9 4
6
9 3
7
9 4
6
9 2
8
9 1
9
9 2
8
9 3
7
9 0
1 0

14. Mobile Internet Users: Nov 2009
Source: Nielsen c/o Admob
1%
2%
2%
5%
8%
9%
37%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
HTC
Apple
Blackberry
Motorola
LG
Sony Ericsson
Nokia
Samsung
SA's Favourite Manufacturers

15. 0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
AdMob – South Africa - July 2010
Source: Admob
Of 275m ads served through
16,000 publishers…

16. 22%
25%
30%
23%
0%
5%
10%
15%
20%
25%
30%
35%
16 - 24 Yrs 25 - 34 Yrs 35 - 49 Yrs 50 +
Mobile Internet users: Nov 2009
Source: Nielsen c/o Admob
SA User by Age Group

17. Mobile Internet Users: Nov 2009
Source: Nielsen c/o Admob
SA's Users by Race and Gender
Indian,
4% Coloured,
8%
White,
22%
Black,
67%
Male
51%
Female
49%

18. 3%
7%
19%
27%
15%
11% 11%
7%
0%
5%
10%
15%
20%
25%
30%
LSM 1 -3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10
Mobile Internet Users: Nov 2009
Source: Nielsen c/o Admob
SA's Mobile Internet Users by LSM

19. Mobile is about…
• Service
• Loyalty
• mCRM
• Up-sell
• Cross Sell
• Mobile Advertising
• Direct Response
• Permission
Marketing
• Mobile Internet
• Games
• Branded Utilities
• Community
Brand
Building
Acquisition
RetentionGrowth

20. Brand Building
• Instant interaction with consumers
• Consumer expectation
• Permanent brand presence
• New formats – richer experience
• Better understanding of the advantages
of mobile
• Commercial success

21. Acquisition: through mobile
advertising
• Increased use of mobile internet
• Increase in available inventory
• Pressure on marketing budgets
• New formats – richer experience
• Commercial success

22. Retention & Growth
• Growing consumer acceptance
and expectation
• The „on-demand‟ consumer
• Mobile as an access point
• Cost effectiveness

23. The journey to loyalty…

24. 150,000 mobile
boarding passes per
month or 15% of all
check-ins
Retention/Growth…
Lufthansa

25. “The 3rd wave of technological
innovation….”
John Doer, Kleiner Perkens VCs
1. Micro-chip and PC in 80‟s
2. Internet – 90‟s
3. Mobile, Social and Cloud Computing

26. What does this mean for…
• Media owners
• Advertisers
• Brands
• Marketers
• Agencies
• Business
“Mobile has been over-
hyped in the short term
but under-hyped in the
medium term to long
term”
Sir Martin Sorrell, 2009

27. Media Owners

28. Issues for marketers
• Understanding the role of mobile in the
marketing mix
• Take advantages of the new contextual
benefits of mobile; need, location & time
• Dealing with consumers as individuals
• Ensuring relevance

29. Test and
Learn
Think
Mobile
from the
outset
Know your
audience
It‟s a value
exchange
Its still all
about the
idea
Golden rules for mobile strategies…

32. But what about…
The Future?

33. Mobile Marketing Association‟s focus…
Promote
Events
Publications
Awards
PR
Partnerships
Educate
Events
Training
Certification
Measure
Industry
Research
Partner
Program
MMA Data
Guide
Standards
Guidelines
Best
Practice
Guides
Protect
Consumers
Members

34. 5 conclusions
1. Mobile is about customer acquisition, retention and
brand building.
2. Mobile is here, not on the way…
3. The phone is not mobile, its the audience
4. Mobile works best when integrated into campaigns
from the start
5. We will all be mobile marketers

35. Next steps?
• Join the MMA – it‟s a global best practice
industry organisation with local relevance
• The MMA SA will be hosting a forum where
local brands, agencies and media owners will
share their experiences
• Whatever you do, get into mobile
Confidential

36. Confidential
Questions?
www.mmaglobal.com
Raymond Buckle
CEO Silverstone CIS
raymond@silverstonecis.com
Brett St Clair
Country Manager
Admob Google
bstclair@google.com