The State of the Philippine Digital Market, Opportunities and Challenges delivered by Nico Nolledo, President and Chairman, Xurpas, Inc., a leading digital marketing company during the Asian Internet Congress, 2010

1. Dd Digital Trends Presented by: Nix Nolledo March 4, 2010

2. The Philippine Digital Market Source: IDC

3. Source: Nielsen Not just a Metro Manila Phenomenon

6. Several opportunities exist today to build strong web presences The Philippine web is an empty space Music Chat Schools Classifieds Toys Promos Lifestyle Games Fastfood Books Travel Kids Health Clothes Brand

7. The mobile content business is in transition New NTC rules have thrown the traditional mobile content business into a state of flux

8. Several opportunities for digital in 2010 and beyond for the enterprising

9. “ The internet is not just a medium, it’s an economy.” The big picture

10. Expanding your market 17 Million Households 10 Million Overseas Filipinos 20 Billion USD in Remittance in 2010!

11. Retailers are going e-commerce

12. There are thousands of micro entrepreneurs selling their wares online in social networks such as multiply Micro entrepreneurs online

13. Online malls such as MyAyala.com will aggregate products and services much like the physical malls do today Major commerce hubs

14. A website launching an offline store

16. Companies will allow customers to personalize their products and the overall brand experience The web offers unparalleled personalization

17. The Social Network Explosion # 1 website in the Philippines Grew from 1 million to 10.5 million Philippine registered users in 1 year # 10 website in the Philippines Wasn’t in the top 100 websites in the Philippines 1 year ago

18. Driving online sales via social networks

19. Several million dollars sold through the Dell Twitter store Driving online sales via social networks

20. The selling of virtual items

21. Crowd Sourced customer service Telcos lead the way

22. Trend: SNO as the new SEO Did I discover more content via Google or Facebook in the past 3 months? Over 1 billion clicks driven by bit.ly to web content in January alone, billions more through other URL shorteners and links

23. The consumer as a reporter

25. How we consume our news is changing “ 61 % of Americans said they read the news online, only 17% say they read a national newspaper” “ For most newspapers in the United states, we would not buy them at any price. They have the possibility of going to just unending losses.” -- Warren Buffet

26. There is light at the end of the tunnel iPad going on sale very soon could be the ray of hope for magazines

28. Blogger Events

29. The 90 – 9 – 1 Rule A majority of content in blogs, social networks, and message boards come from only 10 percent of its users

30. Winning the perception battle Influence the Influencers

31. Digital TV People will be watching more TV but not on their televisions Mobile TV numbers will only continue to grow More and more people are downloading their video media to their PCs 4 th most popular web site in the Philippines, 3rd in the world … And climbing

32. In the US, the shift is more apparent

33. The largest concert ever was watched live by over 10 million people! The internet can magnify the scale of an event a hundredfold

34. News Corp and NBC have partnered to offer FREE Ad supported TV programming to any computer around the world Traditional media companies are adjusting

35. Traditional media companies are adjusting

36. Competition and innovation continues to drive broadband penetration Broadband prices Device prices

38. Obama announced his VP candidate on text messaging FIRST! Database Building Welcome to Obama Mobile. You will now be one of the 1 st notified when the VP candidate is selected. Standard charges apply. Please forward.

42. Withdrawal from ATM Payment using credit card Mobile bank information FNB R123.20 reserved for purchase @ Woolworths from FNB card a/c..978000. Avail R2826. 3Aug 16:43 FNB R200.00 withdrawn from FNB card a/c..47658@ Sandton ATM . Avail R927. 5Apr 13:12 Amount Merchant Part of the account number Available credit card limit Date and Time of the transaction

44. M-Commerce Users text the product code found in an advert to buy the product!

45. Micro payments Turn any device into a payment card facility

46. Direct to consumer apps Building on these platforms allows any mobile content provider to go global * Stanford to offer iPhone programming course

47. Creative app implementations

48. Mobile TV Campaigns Moving Forward Buy Now! 1.99 Euro

49. Watching TV on your phone opens up a world of business opportunities Advertising “ Free TV Model” Mobile Marketing Approach “ sponsored by…” for free or low price: - get your ring tone - vote your favorite Transaction “ Ring tone Model” Interaction “ Vote & Greet Model”

50. Indonesia: Half a centavo per second or 30 Centavos per minute after the 2 nd minute India: 1 Peso per minute Philippines: 4.5 Pesos per minute Mobile adoption which is already high, will only increase with price competition

51. Diet SMS Service by Tata Docomo in India: 1 Paisa per character Per character charging

52. FUTURE TECH

53. Allows advertisers to know who is looking at their advertisements from up to 30 feet away! Pay per glance

55. TV Ads with tailored web ads WEB TV Ads when delivered to your screen will fire up web applications that viewers can interact with Sharp Aquos Net web enabled TVs

57. VOIP as the new call and mobile marketing standard? WIMAX – Broadband Everywhere

58. Full mobile shopping A full shopping experience directly on your phone

59. Invitation to join IMMAP An association of over a hundred industry leaders

60. Nix Nolledo Email: [email_address] Blog: www.digitalentrep.com The time for digital is now