1. 1. Presented by: Raul Vielma Director of Digital The Palm Beach Post rvielma@pbpost.com Shifting to Mobile September 20, 2011 RealSolutions.PalmBeachPost.com Bill Ganon GM Local Markets Verve Wireless bill@vervewireless.com.com Not sure of visual yet Not sure of visual yet
2. 2. What you can expect from this workshop The evolution of media consumption The rapid adoption of mobile devices Mobile Market Overview Mobilizing for Success Whats selling today? The mobile Ad buy Pricing the Deal 2 2
3. 3. Increase in media choices continues to evolve 3 In the beginning there was only one vehicle to reach consumers Now there are almost too many to count 3
4. 4. 2011 not stopping media expansion 4 Widgets and Apps Average number of apps downloaded to a smart phone 271 Mobile as an ad platform Mass adoption of smart phones in the U.S. 70.4 million in 20101 Boom in tablet market 15.5 million units sold forecasted in 20112 Increase in social use and time spent Nearly 154 million UVs on Facebook Dec. 20103 Tweeter and social media as ad vehicles Augmented Reality Mass adoption of QR codes Social Coupons Source: 1Nielsen State of Media 2010; 2The State Of Consumers and Technology: Benchmark 2010, US; 3 ComScore, Dec. 2010
5. 5. The Advertising Challenge "Half the money I spend on advertising is wasted. Trouble is, I don't know which half." John Wanamaker legendary Philadelphia retailer 5
6. 6. What if we could change the dynamic? Interruptive Non-personalized Mass audience One-way Impression / click metrics ADVERTISING MARKETING Conversational Tailored / Relevant 1:1 2 way relationship Engagement metrics 6
7. 7. Local media will own mobile News and local info key mobile web driver (Borrell Assoc.) 65% of mobile content consumed is local Mobile news generate highest frequency of use Breaking News a mobile killer app New media to generate 22% of local advertising revenue by 2013 Trusted local brands Leading source of news and information Local ad sales force 150,000 in US 80% of local content providers believe that mobile will be their main distribution channel within 3 years.09 (Center for Media Research Annual Study) 40% of local content providers believe that mobile may be significant some day08 Sept. 7 Mobile Offers New Audiences
8. 8. 8 Mobile Offers New Audiences
9. 9. 9 Mobile Offers New Audiences
10. 10. Mobile Offers New Audiences Dec. 1, 2010 A majority of the growth mobile ads will experience over the next few years will come from an area all of the web is turning to: local. BIA/Kelsey is calling for U.S. mobile local ad dollars to rise from $213 million in 09 to $2.03 billion in 2014 (57 percent CAGR). For the past year, local was just getting started, as it represented only 44 percent of total U.S. mobile ad revenues last year. But by 2014, it will have a 69 percent share of the mobile ad market. As of 6/23/11: BIA Kelsey increased forecast to $2.8B! 10
11. 11. Mobile Offers New Audiences Smartphones Outsell PCs By SARAH PEREZ of ReadWriteWeb According to IDC, smartphone manufacturers shipped 100.9 million devices in the fourth quarter of 2010, while PC manufacturers shipped 92.1 million units worldwide. Or, more simply put, smartphones just outsold PCs for the first time ever. February 8, 2011 11
12. 12. Smartphones Outsell Feature Phones 12
13. 13. Mobile is Huge for Local Information Seekers 95% of smartphone users have looked for local information 77% have contacted a business after seeing an ad 44% actually purchased something. Google Ipsos Think Insights 13
14. 14. Fastest growing technology in modern times - Mary Meeker, Sr. Internet Analyst, Morgan Stanley (Spring 10) Mobile Offers New Audiences 14
15. 15. Currently own a mobile phone: 1,271,100 Source: 2010 Scarborough Report, Release 2 15 Top 5 ways mobile phone users use their phone: 1. Make local and long distance calls (75%) 2. Text (49%) 3. E-mail (19%) 4. News/Traffic (15%) 5. Search (14%) More than 1,271,100 mobile phone users in our market. Some of the demographic characteristics of mobile phone users are: Adults 18 to 44 (41%) College educated (57%) Have children (32%) Employed (54%) Household income of $75,000 or more (41%)
16. 16. Fact or Fiction: Only young people use smart phones. 24% 18% 25% 15% 0% 25% 50% Adults 45 to 54 Adults 35 to 44 Adults 25 to 34 Adults 18 to 24 Fact or Fiction: Smart phone users are just a bunch of single guys looking to hook up. 3% 6% 30% 61% 0% 25% 50% 75% 100% Widowed Divorced/Legally Never married (single) Married Male, 5 2% Female, 48% Total Palm Beach County Adults: 1,025,700 Source: 2010 Scarborough Report, Release 1 18% 82% 0% 50% 100% Adults 55+ Adults 18 to 54 Fact or Fiction: Smart phone users Source: 2010 Scarborough Report, Release 2 16
17. 17. Fact or Fiction: Smart phone users make money. 40% 60% 0% 50% 100% Less than $75,000 $75,000 or more 7% 71% 49% 67% 0% 25% 50% 75% 100% Retired Employed Children under 18 College educated Fact or Fiction: Smart phone users are educated. Total Smart Phone Users: 541,600 Source: 2010 Scarborough Report, Release 2 20% 23% 17% 0% 25% 50% $150,000 or more $100,000 to $149,999 $75,000 to $99,999 13% 14% 16% 22% 0% 25% 50% Service Management Professional Sales & Office Fact or Fiction: Smart phone users Source: 2010 Scarborough Report, Release 2 17
18. 18. Mobile 101 Smart phone: An advanced phone with an operating system; runs apps, requires data plan. Feature phone: A low-end phone for calling, text messaging or basic Web activities SMS (Short Messaging Service)/MMS (Multimedia Messaging Service): Text messages and picture/video messages. Native apps vs. web apps: Native apps are downloaded/stored on the device; web apps live on the Web and are viewed via the Internet. Short codes: 4-6 digit numbers often used to run advertising campaigns or subscription services; The Posts shortcode is 72411 (PB411).
19. 19. Mobilizing for Success 19
20. 20. Shorter Loading Time 20 Mobilizing for Success Longer Loading Time
21. 21. a) Extend your online digital ad sale to the mobile device 21 Mobilizing for Success
22. 22. Highest engagement apps in the industry Fastest download speeds Full offline usage and reporting of offline activity Optimized for revenue generation Publishing Solutions: Mobile Apps 22
23. 23. Post Mobile Efforts 23 The Palm Beach Post mobile site (m.palmbeachpost.com) receives more than 1 million page views each month. The Post iPhone app has been downloaded more than 20,0000 times. Receiving more than 200,000 page views a week. The Posts iPad launched in August! 23
24. 24. Mobile Applications = More Engagement Mobile applications drive 8 -10X page views v. mobile web Click through rates 4-5X higher (ad stays anchored at bottom) 24
25. 25. Web + Apps: Work Better Together Page Views UniqueUsers High Low Low High Mobile Apps Mobile Web 25
26. 26. Benefits of having a Mobile Strategy 1. Highly personal media channel Look At vs. Listen To environment 2. Strengthen media reach against younger demos 3. Clean, exclusive, Leaderboard on page presence for advertiser message 4. Custom landing pages ensure clarity of advertiser offer 5. Engagement tools offer unparalleled connection options for users 6. Click through rates higher than basic online: avg. btwn .30 -.50. Apps higher. 26
27. 27. Local Publisher Accounts and Categories Verve Network Final 2010 Local Advertising by Categories #1 Auto Dealers #2 Real Estate #3 Education #4 Banking #5 Entertainment #6 Retail #7 Restaurants/Groc #8 Home Services #9 Local Services #10 All Other
28. 28. Automotive Tier Banner Ad Spend CPM CTR % 1 $2, 400 $600 (R) $16,185 (R) $15 $15 $15 .31 .34 .34 1 $85,000 (6 dealer co- op buy in market) $15 .57 to .70 1 $1,000 $1,000 (R) $4,500 (R) $20 .14 1 $1,800 $900 (R) $2,700 (R) $18 $18 $18 .18 .19 .22 2 $680 $20 .62 2 $2,450 $2,450 (R) $15,000 (R) $15 1.18 28
29. 29. Real Estate Tier Category Banner Ad Spend CPM CTR % 1 Broker iPhone app $ 6,000 $24,000 (R) $20 $20 .25 1 Builder $7,800 $15 .47 1 Senior Living $7,500 $15 .20 1 Builder $1,950 $1,950 (R) $15 .24 2 Builder $5,500 $15 .15 3 Agent $4,000 $16 .40 29
30. 30. Education Tier Category Banner Ad Spend CPM CTR % 1 (Online Masters) $3,855 $20 .33% 1 Graduate School $5,100 SOV .17 2 Technical / Vocational $18,000 SOV .23 2 K-12 Private $54,000 $15 .21 1 Summer Classes $5,000 $20 .18 1 Grad School $1,503 $15 .31 30
31. 31. Bank / Finance Tier Category Banner Ad Spend CPM CTR % 3 Bank $2,244 $17 .42 2 Bank $6,000 $7,500 (R) 75% SOV .98 1 Bank $24,000 SOV .17 2 Bank $1,000 $25 1.07 1 Credit Union $3,800 $20 .37 2 Credit Union $17,280 $18 .15 31
32. 32. Bank / Finance Tier Category Banner Ad Spend CPM CTR % 1 Beneficial $15,000 $15,000 $15 $15 .65 .45 1 Hyperion $2,400 $15 .22 1 Dollar $17,200 (R) $15 .33 1 Conestoga $5,000 $3,333 $15 1.3 2 Geico $1,800 $18 .48 2 Savings Inst. $1,500 $5,250 $30 $30 .51 .66 32
33. 33. Bank / Finance Tier Category Banner Ad Spend CPM CTR % 3 Sec. Natl. Bank Enid $1,350 $15 .52 3 Dover Philad Gthse Tms Rep $1,500 $15 .74 2 FNCB Times Leader $2,625 $15 1.2 1 State Bank The Telegraph $14,400 $15 .56 1 Jefferson Fin CU $5,400 $15 .46 1 National Penn $9,000 $15 .23 33
34. 34. Events / Entertainment Tier Category Banner Ad Spend CPM CTR % 2 Casino $7,500 $17.50 .27 2 Casino $500 $500 (R) $2,000 (R) $15 .17 3 Jazz Festival $500 $30 .68 1 Boat Show $5,000 $20 .11 1 Rodeo $2,000 $16 .33 2 County Fair $1,250 $16.50 .32 34
35. 35. Retail Tier Category Banner Ad Spend CPM CTR % 1 Crafts / Hobby $15,000 $15 .36 2 Local Jewelry $4,500 $15 .39 3 Local Dept. Store $300 $10 .43 2 Katy Mills (Shoes) $1050 $15 .43 2 Furniture $2,200 $2,200 (R) $20 .32 1 Mattress $8,325 $3,975 $15 .31 35
36. 36. Recruitment Tier Category Banner Ad Spend CPM CTR % 2 Bank $600 $15 .56 1 Aerospace Eng. $600 $15 .28 2 Hospice Care $3,600 $12 .12 2 Oil Drilling $725 $15 .48 36
37. 37. Restaurants / QSRs Tier Category Banner Ad Spend CPM CTR % 1 Family Style Restaurants $18,000 $15 .51 1 National Pizza Franchise $13,500 $47,250 (R) $15 $15 .13 .20 2 National Fast Food $30,000 $72,000 (R) $24 .20 2 Conv. Store $16,000 $15 .89 3 Reg. Pizza Chain $680 $20 .54 37
38. 38. Grocery Tier Category Banner Ad Spend CPM CTR % 1 Schnucks (various $24,000 $19.50 .67 2 Publix (contest) $ 558 $ 3,780 (R) $ 2,880 (R) $12.50 $17 $18 .11 .19 2 Food City (gas coupon) $510 $15 .34 1 Piggly Wiggly (recipe) $21,600 $15 - 1 Shop Rite (gas coupon) $550 $15 .32-.56 38
39. 39. Hospitals / Health Care Tier Category Banner Ad Spend CPM CTR % 1 St. Lukes $3,168 $15 .12 2 Roper St. Francis Hospital $2,000 $6,000 (R) $10 .13 2 Scott and White Clinics $40,000 SOV .16 1 Baylor College of Medicine $350 $25 .22 3 Gulf Coast Medical Center $1,500 $15 .26 39
40. 40. Home Services Tier Category / Goal Banner Ad Spend CPM CTR % 2 Cable/Internet/Phone $9,000 $15 .51 1 Locksmith $12,000 $15 .18 1 Heating / AC $2,000 $20 .35 2 High Speed Internet $10,000 $15 .31 1 Pools / Spas $300 $15 . 67 40
41. 41. Local Services Tier Category Banner Ad Spend CPM CTR % 1 Insurance Agent $6,480 $18 .26 2 Massage / Tanning $8,100 $27 .22 1 Cosmetic $7,500 $50 .29 1 Plumbing Svc. $1,260 $34 .23 3 Massage Franchise $2,100 $20 .33 3 Attorney $600 $17 .41 41
42. 42. The Audience The Offer The Results 42 The Verve Mobile Value Proposition
43. 43. Source: Mobile Marketer, Classic Guide to Mobile Advertising 8/5/2008, Nielsen Mobile, IAB ALWAYS ON: A typical mobile phone user carries his/her phone for an average of 14 hours a day. ENGAGED: US mobile subscribers sent and received on average 480 text messages per month in Q1 2010 Currently 100 million active mobile Web users in the US. YOUNG: Majority of mobile internet usage are 25 44 year olds Helps fill in the valuable younger age group for the media property (as age rises for traditional paper or broadcast property) 43 The Verve Mobile Value Proposition
44. 44. The Mobile Marketing Pizza 44 The Mobile Ad Buy
45. 45. Advertisers get an exclusive, uncluttered environment (only one ad banner per page). Closely associate your brand or service with quality content. Where the bulk of your ad package value is contained. Target by Daypart, Category, Device. The Mobile Marketing Pizza The Crust: Mobile Banners Mobile Web Mobile App 45
46. 46. The Mobile Marketing Pizza But Where Does the Mobile Click Go? 46
47. 47. Verve hosted web page with offer information. User clearly sees more about the advertised offer. Enables advertiser to continue the dialog with the user through various forms of engagement. Click to Action The Mobile Marketing Pizza The Sauce: The Landing Page 47
48. 48. The Toppings: Click to Action Menu The Mobile Marketing Pizza Make a direct phone call with one touch Click to Call Find a retail store near current location Click to Map Emails easily sent back to advertiser Click to Email 48
49. 49. 49 Click to Call
50. 50. 50 Click to Email
51. 51. Denver Post NAPAAuto Parts 51 Click to Map
52. 52. Deliver coupon or offers directly to customers SMS (Short Message Service) 52
53. 53. User taps the banner Banner converts to Panel - fills the page Device responds accordingly User selects click to map or call *NEW* The Stuffed Crust: Expandable Banners The Mobile Marketing Pizza 53
54. 54. DO DONT Best Practices / Techniques Keep your banner simply worded with call to action rotate the creative ~ monthly Use mobilized landing pages to give your users best possible experience Match up your most desired user action with the mobile response tool Consider developing a mobile application to give Rely on traditional Internet banner techniques (animation, wordiness) Use usual website for mobile device Settle for site visit Rely on web-only communication 54
55. 55. Bill Ganon, GM Local Markets Verve Wireless bill@vervewireless.com 760.479.0055 Questions? 55 Raul Vielma, Director of Digital The Palm Beach Post rvielma@pbpost.com 561-820-4277