Mobile Advertising - making money from mobile

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Page 1 Copyright © 2008 mobilePeople Mobile potential for directory providers » Driving revenue from the European directory environment Martin Wilson Managing Director

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Mobile Advertising - the opportunity and how to realise value using a world leading partner like mobilePeople

Transcript of Mobile Advertising - making money from mobile

Page 1: Mobile Advertising - making money from mobile

Page 1Copyright © 2008 mobilePeople

Mobile potential for directory providers

» Driving revenue from the European directory environment

Martin WilsonManaging Director

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Page 2Copyright © 2008 mobilePeople

About mobilePeople

mobilePeople is the global leader in local mobile search & advertising solutions for publishers

•Privately held, Founded in 2002, now 50+ employees

•Investor: Via Venture Partners (VC)

•Products: Mobile Search, Maps and Advertising

•Launched with publishers in 12 markets (8 languages)

•Headquarters in Copenhagen (DK), branch offices in London (UK),

Melbourne (AUS), Denver (US)

www.mobilepeople.com

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Topics

» Directory landscape

» Products in action today

» Revenue opportunity

» European/Global opportunity

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Directory providers’ unique strengths

Directory providers typically have a set of unique strengths in the local space that sharply differentiate them from competitors. ­ The most important strength, the one that presents the highest barrier to entry to

competitors such as portals, is their highly developed and effective sales force.

In addition, it is believed that the majority have a variety of additional strengths that are also deemed to be important. These are:

­ buyer-centric search engine, that eliminates most irrelevant search results found on portals

­ well developed classification taxonomy, including thesaurus, key words, and attributes

­ sophisticated location taxonomy

­ strong position and brand recognition in the local market

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Landscape has changed, but...

» Directory providers are no longer just in the directory space­ Now will be competing in the ‘Local information’ sector

» All have brands that is both recognised and understood by consumers­ Challenge is to build a mobile presence based on core competencies, then offer utility

» Build around core strength of rich, comprehensive and structured content­ Speed and ease of use are paramount

­ Content will support the decision process and add value

­ Actionable results are essential

» Users will deliver sustained usage levels­ Mass market approach to mid and high tier devices, rather than by niches

­ Goal is to deliver penetration of the mobile Internet user base

» Directory providers are better placed to commercialise the channel than most­ Existing relationships with many SMBs

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Products in action

Customer: (UK)

Service:

Description: Client* and Browse applications

Features: - Yellow Pages style search

- Auto suggest*

- Click-to-call

- Maps and directions

- Send to friend*

- Save to contacts*

Product:

LOCAL

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Auto-suggest

» Dramatically improves usability

» Top categories included» Main cities and towns included

» Remembers user entered terms

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Products in action

Customer:

Service:

Description: Client application and browser

Features: - Yellow and White Pages search

- Media search: news, Wikipedia..

- Images, ringtones

- Maps

- Auto suggest

- - Click-to-call

»

Product:

LOCAL+

Truvo (World Directories) (BE, PT, IE)

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Products in action

Customer: (UK)

Service:

Description: Client application

Features: - Yellow Pages search

- Address and POI look-up

- Scroll and pan maps

- Over layed routes

- Auto suggest

- Click-to-call

- Send to friend

Product:

MAPs+

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» Dynamic raster tiled maps, overlayed routes­ Benchmarked on Google, out performs in no. areas

­ Some of most advanced map technology deployed

» Free form address and POI search

» Accurate street and place searching­ i.e.2 St Thomas Street , Winchester, SO23 9HE

» POI searching­ Nelson’s Column

» Additional applications for usage­ Full European/USA search offering

Dynamic raster maps, address & POI look up

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Strategic focus for Directory Providers

The core strategic focus for mobile services will be to grow service transactions (usage) to their platforms, as ultimately usage will be the supporter of monetisation.

A second strategic focus will be to maximise and to support in the delivery of commercial value from the mobile services.

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Business/service model (FR)

User acquisitioning is key to generate sustainable volumes of searches.

2007 2008 2009 2010 2011

France - regular mobile Internet users (000s) 10,758 14,750 18,462 20,722 23,124

Pages Jaunes mobile (000s)

Market capture - 7% 753 1,033 1,292 1,451 1,619

Market capture - 10% - 1,475 1,846 2,072 2,312

Market capture - 15% - 2,213 2,769 3,108 3,469

Market capture - 20% - 2,950 3,692 4,144 4,625

Market capture - 24% - 3,540 4,431 4,973 5,550

Target market capture (000s) 753 1,033 1,846 3,108 4,625

Average searches per user 18 18 36 36 36

Total searches (000s) 13,555 18,586 66,461 111,896 166,495

Source:Internet users - Forrester Research 2007 Growth and activity – Based on Internal estimates

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Revenue potential – benchmark e2010/11

Mobile Internet revenue (FR segment)

­ Reach 20% = e4.6m regular active users

­ Usage est. = 36 times per year / 63 times per year

­ E2010/11 = 166.5m visits (searches) / 291.4m visits (searches)

­ Visit value = €0.47

­ Potential E2010/11 = €78.2m / € 136.9m

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Business/service model (UK)

Again focusing on user acquisition..

2007 2008 2009 2010 2011

UK - regular mobile Internet users (000s) 20,010 23,488 25,628 27,303 27,849

Yell mobile (000s)

Market capture - 1.2% 240 282 308 328 334

Market capture - 2% 470 513 546 557

Market capture - 6% 1,538 1,638 1,671

Market capture - 12% 3,276 3,342

Market capture - 20% 5,570

Target market capture (000s) 240 470 1,538 3,276 5,570

Average searches per user 24 24 36 36 36

Total Searches (000s) 5,763 11,274 55,357 117,951 200,516

Source:Internet users - Forrester Research 2007 Growth and activity – Based on Internal estimates

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Commercial approaches

When ready to commercialise different commercial approaches can be seamlessly deployed to the services:

Presence­ based on sponsorship or tenancy

Prominence­ based on prioritised results – Content, Keyword or Location related

Performance­ based on user actions – Call, Click, Book, Buy…

All can be supported by the existing mobilePeople ad server and ad solutions.

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Real Commercial opportunity

Advertising spend€000s

Customer volumes000s

Search EngineStrong hold

Directory ProviderStrong hold

Large brandadvertisers

Mid-tier brand/MEadvertisers

Local/SMBadvertisers

Opportunity

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We offer home andoffice contracts. Wecreate beautifulBouquets and handtieds.

Corner House Parade,Epsom Road,Surrey Kt17 1NX

CallMap/directionsSave to address book

Real opportunity for partnership

Advertisers(via DP’s)

long tail

Optimised content:•Business results/Local information•Landing page/ Info page/AdSite•Rich content – Images, Videos, User gen.

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ess/

Dis

trib

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Application (MP)

Onward actions:•Call, Booking, Ordering, Buy.. •Coupons, Promotions, Surveys...•Maps, Directions…

Reach (channels)

Local Search

Search Engines

Social networks

Carriers portals

Directory Assistance

Handset manufactures

Navigation devices

Etc.

Audience

Opportunity

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Thank you

Martin Wilson mobilePeople A/S1 Liverpool Street,London,EC2M 7QDUK

e [email protected]