1.
Mobile Internet What’s app Johan Looijenga www.linkedin.com/in/johanlooijenga 11-3-2010

2.
Agenda <ul><li>Mobile Internet evolution </li></ul><ul><li>Mobile Internet value chain dominance </li></ul><ul><li>Smartphone growth and usage </li></ul><ul><li>Mobile user targeting </li></ul><ul><li>Mobile advertising </li></ul><ul><li>Media industry and mobile </li></ul><ul><li>Future thoughts </li></ul>

3.
Mobile Internet 1.0 <ul><li>2G GSM circuit switched data </li></ul><ul><li>WAP </li></ul><ul><li>Text based, simple graphics </li></ul><ul><li>No Internet browsing </li></ul><ul><li>Bad user experience </li></ul><ul><li>Data usage billing </li></ul>

4.
Mobile Internet 1.5 <ul><li>2.5G mobile infrastructure </li></ul><ul><li>DoCoMo iMode </li></ul><ul><li>Proprietary Japanese phones </li></ul><ul><li>Operator walled garden </li></ul><ul><li>Subscription based billing + data usage billing </li></ul>

5.
Mobile Internet 2.0 <ul><li>3G mobile infrastructure </li></ul><ul><li>Open Internet browsing </li></ul><ul><li>Smartphone technology </li></ul><ul><li>Intuitive user interface </li></ul><ul><li>Social networking (e.g. Facebook) </li></ul><ul><li>Video (e.g. YouTube) </li></ul><ul><li>VoIP (e.g. Skype) </li></ul><ul><li>Applications/App store </li></ul><ul><li>Flat fee data usage billing + app billing (many free) </li></ul>

6.
Mobile Internet value chain Mobile Internet 1.0 Mobile Internet 1.5 Mobile Internet 2.0 Europe Phones: Nokia Japan Operator: DoCoMo United States Apps: Apple Innovation game: New services, App stores, applications and content Challenge: attract large scale developer community Dominated by Internet giants and startups Platform game: Infrastructure and reach/economies of scale Host as many apps/services as possible Challenge: rapid growth of spectrum/bandwidth usage Dominated by Mobile operators, Handset vendors, Internet Giants

7.
Mobile bandwidth challenge

8.
More than just a phone <ul><li>Internet browsing </li></ul><ul><li>E-mail </li></ul><ul><li>Instant messaging/social media </li></ul><ul><li>Tablet </li></ul><ul><li>Bookreader/eReader </li></ul><ul><li>Music player/recorder </li></ul><ul><li>Musical instrument </li></ul><ul><li>Photo camera/editor </li></ul><ul><li>Video player/recorder </li></ul><ul><li>GPS device </li></ul><ul><li>Car electronics device </li></ul><ul><li>Home electronics device </li></ul><ul><li>Game computer </li></ul><ul><li>Lots of handy utilities </li></ul>

9.
Smartphone sales <ul><li>Smartphone sales Q4 2009 41% growth </li></ul><ul><li>Best performers Apple iPhone and Google Android </li></ul><ul><li>source Gartner feb 2010 </li></ul>

10.
Mobile App marketing/distribution

11.
Mobile fit with social networking

12.
Mobile Internet user targeting <ul><li>Commercial TV: Global user segments, global usage figures </li></ul><ul><li>Internet: Individual user behaviour, contextual advertising </li></ul><ul><li>Mobile Internet: High degree of personalization possible: - consumer value (ARPU, post-paid only) - demographics (sex, age, address, post-paid only) - handset type and brand - usage statistics - always on - location - short- and long distance journey patterns - individual contributions (blogging, twitter) - buying behaviour </li></ul>

13.
Business models mobile <ul><li>Access flat rate, time based, volume based, free </li></ul><ul><li>Free Loyalty, support existing business </li></ul><ul><li>Subscription area’s: music, films, newspapers, magazines, books </li></ul><ul><li>Advertising area’s: news, magazines, radio, TV </li></ul><ul><li>Transaction - Premium 0900, SMS Classic Internet vs. Mobile: free vs. paid services based on phone specific content and ease of billing - App one-time fee - M-commerce </li></ul>

14.
Mobile advertising <ul><li>Recent acquisitions worldwide: - Google buys AdMob ($750 M) - Apple buys Quattro Wireless ($275 M) - Opera buys Marvel ($ 8 M) </li></ul><ul><li>STIR/Nedstat lab mobiel initiative </li></ul><ul><li>Smartphone installed base drives mobile advertising </li></ul><ul><li>Mobile advertising implies mobile landing pages </li></ul><ul><li>Ad needs to be content related/context relevant </li></ul><ul><li>Different types of mobile Advertising: - SMS/MMS - Mobile search - Mobile video - Mobile game - Mobile banners - Branded content </li></ul>

15.
Newspapers and magazines <ul><li>Of all media newspapers and magazines suffer from biggest ad income decline </li></ul><ul><li>On-line shift from text to video and interactivity </li></ul><ul><li>Mobile offering starts as a copy of paper </li></ul><ul><li>Tech-based and special interest mags/sites are early adopters of new technology e.g. Wired tablet app </li></ul>

16.
Radio <ul><li>6-10% listening time online </li></ul><ul><li>Broadcast radio will loose market share to personal radio </li></ul><ul><li>Existing Radio companies well positioned to fund personal radio, however most are unable to make digital shift </li></ul><ul><li>Mobile phone: - Access to music shop downloads - CD player - Broadcast radio tuner (home, car) - Personal music streamer - Personal radio streamer </li></ul>Weekly music consumption time - Radio Next 2008 US

17.
Television <ul><li>Trends: - End of mass-media advertising growth </li></ul><ul><li>- Growth of on-line on-demand consumption </li></ul><ul><li>- TV integrated internet browsing </li></ul><ul><li>- Personal TV (e.g. using iPad) </li></ul><ul><li>Uitzending gemist - 150 million video’s in 2009 - 8 million NOS Journaal - growth 25% in 2009 - 2 M unique visitors/month </li></ul><ul><li>Uitzending gemist mobile </li></ul><ul><li>- 2,7 million video’s on mobile in 2009 - last 4 months 230.000 app downloads - last 4 months 2 million iPhone video’s </li></ul>

18.
Mobile in your marketing mix <ul><li>Mobile website: - offers better navigation than standard website - works on any smartphone </li></ul><ul><li>App: - dedicated functionality - navigation speed - good user experience - some functionality only available in app - smartphone specific - dependency app store </li></ul><ul><li>Use of dedicated Apps will migrate to mobile websites </li></ul><ul><li>Best to develop both types for leading OS’s </li></ul>Standard website Mobile website App

19.
Conclusions <ul><li>Shifting dominancy in Mobile Internet value chain </li></ul><ul><li>Mobile internet access will surpass fixed internet access soon </li></ul><ul><li>Media convergence is everywhere: it’s easier than ever to reach a large audience, but harder than ever to really connect </li></ul><ul><li>Mobile Phone unique as personal media device </li></ul><ul><li>Advertising on mobile needs to be more content related than ever (‘contvertising’) </li></ul><ul><li>Mobile becomes a must in any marketingmix </li></ul>

20.
Mobile Internet What’s app