Scott Jones, ChaCha - Think LA Mobile Breakfast

thinkLA Mobile Breakfast
Thursday, June 16, 2011

Event & Keynote Introduction
thinkLAMobile Breakfast
Master of Ceremonies
Paul Santello
SVP, Brand Sales & Marketing
Evolve Media

Co-Founder, Chairman, CTO
Creator of #1 voicemail technology worldwide
Sold to Comverse for $843 million
Co-Founder, Chairman, CEO
Creator of world’s largest music database
Sold to Sony for $260 million
Founder, Chairman, CEO
Definitive source of real-time answers
Provided over a billion answers so far
Fastest-growing Q&A company
Keynote Presentation: Scott A. Jones

Scott Jones: Pioneering Technologies at Work & at Home
MTV Cribs Awards: A Decade of Cribs - January 2010
WINNER: Crib of the Decade
WINNER: Best Home Theater
Visit http://on.mtv.com/JonesCrib
to see Scott’ crib!
MTV Cribs Awards Available on iTunes

Keynote Presentation
Scott A. Jones

Q: What is ChaCha anyway?

#1 Real-time Answers
25 Million
Monthly unique users
3+ Million
Answers provided to users every day
1+ Billion
Questions ChaCha’s answered

About ChaCha’s Mobile Answers
View this video here: http://bit.ly/ChaChaMobile

ChaCha Answers on Mobile
Mobile App
Mobile Web
Mobile Messaging
What was the final score of the NBA Championship game?
Win a working with…
Dallas Mavs 105, Miami Heat 95 on 6/12. ChaCha on.
9

Some of Our Brand Partners
“ChaCha was the perfect partner for our launch. Viewers want to engage with our content and talent in unique, new ways. This provided a completely immersive, cross-platform experience.”
Cameron Death, Sr. VP & GM
NBC Universal Digital Studios
10

Q: Does advertising on mobile phones matter?

280
Mobile Subscribers
Satellite TV Subscribers
20
Cable TV Subscribers
65
TV Households
125
Internet Access
221
In Millions
Source: Lifestyle Wireless, 2011
Mobile is #1 in Audience and Reach

Internet users in millions
Mobile Web will surpass ‘tethered’ usage within 3 years
Source: Morgan Stanley, April 2010, Global Projection
Mobile vs. Desktop Internet User Projection

Desktop versus Mobile: Different Animals
Solitary
Fixed location
30 minutes
Sift through results
Focused on desktop
Often Research-oriented
Social
On the go
30 seconds
Need an answer
Multi-tasking
Timely, contextual, personal topics

Mobile Users Express Immediate Intent
Vs.
Understanding Mobile Information Needs – October 2010 – Church et. Al.

Mobile Search Users Are Impatient
80% report frustration with mobile web due to speed, too many clicks, and too much irrelevant content.
-Qualcomm - 2010
80% Shorter
Search Session
&
80% Lower CTR
15 +
mins
< 3
mins
Large Scale Study of European Mobile Search Behavior – 2008 – Church et. Al.

Smartphone Users Multitask

I see search moving away from statelessness to something more resembling a conversation.
- Peter Norvig
Google Director of Research
Mobile is Conversational & Personal

Desktop Experience Does NOT Transfer to Mobile
How do over 40,000 results look on a mobile phone?

Answers vs. Results - Which Would YOU prefer?
Answers
Results
How many licks does it take to get to the center of a tootsie pop?
Engineering students from Purdue University reported that their licking machine, modeled after a human tongue, took 364 licks.
Source: Tootsie.com
vs

Share of Web Traffic Coming from Mobile Devices
Entire Web
Global StatCounter, comScoreqSearch, Google Analytics Mobile – May 2010 - May 2011

Web and Mobile are Complementary
Google Inside Search, May 2011

Mobile & Desktop Inversely Related Throughout Day
Google Inside Search, May 2011

Smartphone vs. Feature Phone Usage
comScoreMobiLens – March 2011

65%
37% of US mobile subscribers have smartphones now
Nielsen MarketSight – Q2 2011
Smartphone Penetration Accelerating

Feature
Phones
2%
Other
13%
37%
63%
4%
Smartphones
10%
9%
Smartphone Adoption Surged 12% in 6 Months

Some early-adopter smartphone users do NOT have data plans
Of mobile users who have data plans, 23% consume small amounts of data
The top 10% of ‘super users’ consume 90% of the data
Android and iPhone users consumer 2x more data than other phones
Sources: Nielsen Marketsight and
Nielsen Company, Customer Value Metrics, Single Line Accounts – May 2011
Smart? Phones

LBS has Reach Challenges
28
82%
use cell phones
71% use SMS
35% have apps
24% use apps
4% Use LBS
% of U.S. population
6/20/2011
Source: PewSeptember 2010

Only Some Apps Are Important
TechCrunch / Localytics – 3Q 2010

Smartphone Users More Likely to Text and Text More Often
“What started once as a 'teenager thing' has now reached the total population…
“Messaging is the broadestreaching communication platform
on the planet.”
~ TomiAhonen
Adoption
Adoption
705
SMS Per
Month
891
SMS Per
Month
Feature
Phones
Smart
Phones
Source: Mobile Media Marketplace Q2

Mobile Marketing Options and Adoption
31
MORE THAN 3 YEARS
1-3 YEARS
LESS THAN 1 YEAR
Mobile websites
Mobile apps
Mobile messaging/SMS
Mobile display ads (CPM or CPC)
Mobile search
Mobile rich media apps
Mobile video
2D "smart" barcodes
Mobile coupons
Location-based services
Interactive voice response
Mobile gaming
Proximity - Bluetooth, RFID
Near field communications payments
Source: Association of National Advertisers, 2010

Integrated Approach to Mobile Marketing Key
Personalize the User Experience with Context
Make sure you’re represented across all mobile media

Mobile is Outperforming Online in Every Measure
The study used norms developed in online ad testing as a benchmark to draw conclusions around the performance of advertising on mobile devices. InsightExpress compared the two using InsightNorms, the company’s normative database containing 1500 online ad effectiveness campaigns and 150 mobile ad effectiveness campaigns. Mobile InsightNorms are based on InsightExpress’ flagship mobile brand effectiveness solution, Mobile AdInsights, which employs a test/control design to measure the brand impact of mobile advertising campaigns.

Are Advertising Dollars Being Spent Wisely?
Mobile is Lagging =
GIANT Opportunity
20% of Ad $$
43% of Ad $$
5.7% of Ad $$
6.3% of Ad $$
6.3% of Ad $$
Average Weekly Hours Spent vs. % of Ad $$’s
0.8% of Ad $$
eMarketer – May 2011

Mobile Marketing: It’s Still Very Early
17%
10%
4%
Smaato, mobileSQUARED & Lightspeed Research, Nov 2010

US Mobile Ad Spending = 2.5B in 2014
CAGR = 44%
eMarketer, September 2010

Thank You!!

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Scott Jones, ChaCha - Think LA Mobile Breakfast

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