Mobile Internet
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Johan Looijengawww.linkedin.com/in/johanlooijenga
11-3-2010
Agenda
• Mobile Internet evolution• Mobile Internet value chain dominance• Smartphone growth and usage• Mobile user targeting• Mobile advertising• Media industry and mobile• Future thoughts
Mobile Internet 1.0
• 2G GSM circuit switched data• WAP• Text based, simple graphics• No Internet browsing• Bad user experience• Data usage billing
Mobile Internet 1.5
• 2.5G mobile infrastructure• DoCoMo iMode• Proprietary Japanese phones• Operator walled garden• Subscription based billing
+ data usage billing
Mobile Internet 2.0
• 3G mobile infrastructure• Open Internet browsing• Smartphone technology• Intuitive user interface• Social networking (e.g. Facebook)• Video (e.g. YouTube)• VoIP (e.g. Skype)• Applications/App store• Flat fee data usage billing
+ app billing (many free)
Mobile Internet value chainMobile 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 contentChallenge: attract large scale developer communityDominated by Internet giants and startups
Platform game:Infrastructure and reach/economies of scaleHost as many apps/services as possibleChallenge: rapid growth of spectrum/bandwidth usageDominated by Mobile operators, Handset vendors, Internet Giants
Mobile bandwidth challenge
More than just a phone
• Internet browsing• E-mail• Instant messaging/social media• Tablet• Bookreader/eReader• Music player/recorder• Musical instrument• Photo camera/editor• Video player/recorder• GPS device• Car electronics device• Home electronics device• Game computer• Lots of handy utilities
Smartphone sales
• Smartphone sales Q4 2009 41% growth• Best performers Apple iPhone and Google Android
source Gartner feb 2010
Mobile App marketing/distribution
Mobile fit with social networking
Mobile Internet user targeting
• Commercial TV:Global user segments, global usage figures
• Internet:Individual user behaviour, contextual advertising
• 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
Business models mobile
• Accessflat rate, time based, volume based, free
• FreeLoyalty, support existing business
• Subscriptionarea’s: music, films, newspapers, magazines, books
• Advertisingarea’s: news, magazines, radio, TV
• 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
Mobile advertising
• Recent acquisitions worldwide:- Google buys AdMob ($750 M)- Apple buys Quattro Wireless ($275 M)- Opera buys Marvel ($ 8 M)
• STIR/Nedstat lab mobiel initiative• Smartphone installed base drives mobile advertising• Mobile advertising implies mobile landing pages• Ad needs to be content related/context relevant• Different types of mobile Advertising:
- SMS/MMS- Mobile search- Mobile video- Mobile game- Mobile banners- Branded content
Newspapers and magazines
• Of all media newspapers and magazinessuffer from biggest ad income decline
• On-line shift fromtext to video and interactivity
• Mobile offering starts asa copy of paper
• Tech-based andspecial interest mags/sitesare early adopters ofnew technologye.g. Wired tablet app
Radio
Weekly music consumption time - Radio Next 2008 US
• 6-10% listening time online• Broadcast radio will loose
market share to personal radio• Existing Radio companies
well positioned to fundpersonal radio, however most are unableto make digital shift
• Mobile phone:- Access to music shop downloads- CD player- Broadcast radio tuner (home, car)- Personal music streamer- Personal radio streamer
Television
• Trends:- End of mass-media advertising growth- Growth of on-line on-demand consumption- TV integrated internet browsing- Personal TV (e.g. using iPad)
• Uitzending gemist- 150 million video’s in 2009- 8 million NOS Journaal- growth 25% in 2009- 2 M unique visitors/month
• Uitzending gemist mobile- 2,7 million video’s on mobile in 2009- last 4 months 230.000 app downloads- last 4 months 2 million iPhone video’s
Mobile in your marketing mix
• Mobile website:- offers better navigation than standard website- works on any smartphone
• App:- dedicated functionality- navigation speed- good user experience- some functionality only available in app- smartphone specific- dependency app store
• Use of dedicated Apps will migrate to mobile websites
• Best to develop both types for leading OS’s
Standard website Mobile website
App
Conclusions
• Shifting dominancy in Mobile Internet value chain• Mobile internet access will surpass
fixed internet access soon• Media convergence is everywhere:
it’s easier than ever to reach a large audience,but harder than ever to really connect
• Mobile Phone unique as personal media device• Advertising on mobile needs to be more
content related than ever (‘contvertising’)• Mobile becomes a must in any marketingmix
Mobile Internet
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