The Mobile Medium

Why You Should Care About this Presentation

Client Demand
As mobile con,nues to evolve into a more important marke,ng
channel employers and clients will increasingly ask for feedback,
strategies and tac,cal ideas leveraging the mobile channel.
?

Competition
As client demand increases so do the amount of players in the
space. If you are going to grasp digital marke,ng you can not
afford to ignore mobile ‐ as others will not.
Traditional Agencies
Mobile Specialists Digital Agencies

Drive Revenue Growth
Expecta,on is to drive revenue growth. Given current climate it
is understandable that there is heightened focus on “emerging”
opportuni,es.
Mobile projected to be the
Projected downturn in
fastest growing advertising
marketing into 2009
spend category to 2012
$25,000
$20,000
$15,000
millions $10,000
$5,000
$0
2007 2008 2009 2010 2011 2012
Mobile Messaging Mobile Display Ads Mobile Search Total

The Value of Mobile as a Medium

Mobile marketing is not about mobile technology….

It’s about an ever increasing connected & mobile consumer.

Globally there are more
mobile phones than PCs
2008: 4.1 Billion
mobile subscribers
2008: 1 Billion
Internet users
IT World Telecom Mar 2009
ComScore 2008
…

The Rate of
Growth is Staggering
2008: 4.1 Billion
mobile subscribers
2008: 1 Billion
Internet users
IT World Telecom Mar 2009
…

Over 85% of Americans
have a cell phone.
Compared to 73% who
have Internet access.
Nielsen, July 2008

Americans sent over 1 Trillion
text messages in 2008
• Almost triple the number (363 million) from 2007
• Roughly 3.5 billion texts per day
• Almost 13 messages per wireless user per day
CTIA 2009

Americans text more than they talk.
In Q2 2008, U.S. mobile user sent and received on
average 357 text messages per month, compared
with making and receiving 204 phone calls a
month.
Even more staggering is that on average,
American teens send and receive 1,742 text
messages a month.
Nielsen, 2008

Mobile Misconceptions
Nielsen, July 2008

Growth in the Mobile Channel
iPhone 3G Google G1 Palm Pre
HTC Diamond
Sprint Instinct Blackberry
Bold & Storm
ComScore, July 2008

Key Mobile Insights
Text Messaging:
• 85% of Americans are mobile subscribers
• 90%+ of US mobile subscribers have the ability to text message
• 59% use text messaging in a month
Mobile Internet:
• There are now 250 million mobile phones in the U.S.
• Over 20% have used their mobile phone to access the Internet.
• Mobile Internet penetration was 46.6 million in February 2009.
• Up from 29.7mm in 2007 & more than double the 22.4mm in 2006.
ComScore, February 2009

The Mobile Tipping Point
Device Capabilities
+ Network Speeds (3G+)
+ Affordable / Flat Data Plans
= Mass Market Adoption

The iPhone • Over 17 million sold globally / 6 million U.S.
Phenomenon • Sold over 13 million iPod Touch Devices
• In over 80 countries
• Is the most popular device for accessing news and
informaMon on the mobile web
• Has surpassed the Razr as the top handset bought
by U.S. adult consumers in the third quarter
• Approximately 30,000 applicaMons in the iTunes
App Store
• There have been 800 million total downloads on
the App Store so far
Nielsen, 2008
NPD Group, 2008
Apple, 2009

Connecting Mediums
Integra4on:
Digital
Physical 1

Value of Mobile Engagement
It is Instant:
Mobile devices are almost ubiquitous in penetraMon and use. This ensures any brand impressions,
especially those away from the computer, can iniMate an instant direct connecMon to a digital
brand experience through the device. This direct connecMon from the physical to a digital
experience is what makes it such a powerful medium.
It Can Extend Reach:
The instant nature of mobile, offers the ability to extend reach and engagement of markeMng
campaigns. Providing a seamless transiMon from passive listening/watching to acMve engagement
1
through the most personal technology device.
It Adds Measurability:
Mobile allows the ability to overlay digital tracking elements to heavy investment of tradiMonal
and in dealership markeMng
It is Unique:
Use of the mobile channel is fairly unique, uMlizing it, specifically in ways that leverages the
advantages of this plaVorm will demonstrate brand innovaMon.

Mobile Marketing Effectiveness
SMS Ads:
• 20% received an SMS ad in August 2008
• 3% responded to an SMS ad in August 2008
Short Codes:
• 4% responded to short code based poll / contest in August 2008
• 2% responded to advertisement via short code in August 2008
Mobile Display Ads:
• Averaging 3% – 5% CTR (as compared to 0.25% - 1% online)
ComScore, July 2008

Approach to Mobile

The VML Mobile Team
The VML Mobile PracMce Group (MPG) is dedicated to
leading mobile markeMng educaMon, planning and
development on behalf of VML clients.
The MPG team is focused on supporMng VML’s account,
creaMve, technology and media teams in offering clients
relevant mobile soluMons as part of their markeMng
iniMaMves. The key is in collaboraMng with the teams
already working on client accounts so that mobile is an
integrated part of the VML offering and not a separate
proposiMon.
The VML MPG also works within the mobile ecosystem
with partners such as the Mobile MarkeMng AssociaMon,
ComScore/M:Metrics and other mobile markeMng
service organizaMons to ensure that we execute best‐in‐
class programs. It is in this holisMc approach that we feel
we can best service our clients as they look to leverage
the emerging mobile channel as a means to connect
with their customers.

VML Mobile Capabilities

The Mobile Marketing Ecosystem
Publishers Mobile Services
Advertisers Ad Networks
Agencies Mobile Platforms Mobile Enablers
Insights
Organizations

SMS / Text Messaging
Dedicated Short Code:
• Work with CSCA to get a dedicated short code (mobile equivalent of domain name)
• Cost includes:
• Setup: $3,500
• Vanity Code SelecMon / Set Up: $1,000
• AddiMonal T‐Mobile Set Up Fee: $500
• One‐Time CSCA Processing: $2,000)
• Monthly: $500 (requires at least 3 month commitment)
Messaging PlaBorm:
• Allows ability to execute SMS programs such as mobile alerts, voMng and polling
• Will provide ability to integrate keywords and short codes on tradiMonal adverMsing elements
• Work with messaging aggregator to gain approval from US carriers
• Timing: 12 weeks (for campaign approval by carriers)
• Cost includes:
• Setup: Varies based on specific requirements
• Monthly: $1,000 ‐ $2,000 (+ variable cost)
• Variable costs: $0.03 ‐ $0.05 per message as standard messaging costs
• Use baseline of 10,000 messages per month = $500

Mobile Web / WAP Sites
Mobile Web / WAP Site Development:
• Allows customers to gain access to key content opMmized for their specific mobile devices
• Can act as a call to acMon from SMS message alerts and/or direct mobile traffic
• ConsideraMons:
• Managed hosMng
• Traffic data / Monthly impressions
• Data storage
• Client plaVorm access (if required)
• Service availability
• Daily backups
• SSL security
• 24‐hour email support
• Mobile device detecMon and opMmizaMon
• Includes mobile web and carrier markup
• Mobile search opMmizaMon
• ReporMng

Mobile Media
Mobile Media Campaigns:
• Allows ability to target consumers in the mobile channel
• Can include display ads on mobile web sites, in mobile
applicaMons and as part of SMS programs
• Can buy on network or direct with publishers
• Can buy at around $10 ‐ $25 CPMS
• See conversion rates around 3%
• Can target based on:
• Demographics
• Contextual
• Handset / Device Type

The VML Mobile Marketing Process
Connect & AcMvate
Consumer Behavior
Value ProposiMon
Mobile Offering
Evaluate target IdenMfy the need Determine best Assess most
consumers’ use of state opportunity means of delivering effecMve method to
the mobile channel. relevant to the client the offering via the create awareness
and the consumer. mobile channel. and drive
1 engagement.
• Device Types
• Mobile Use Profile • Audit Consumer Needs • Text Message
• Mobile EffecMveness • Audit Client Assets • Mobile Web / WAP • Keyword / Short code
• Content IdeaMon • Mobile ApplicaMon • Mobile Number
• Camera Phone

Mobile Marketing Funnel
The key value in developing the mobile markeMng strategy is in the ability to
provide a uniquely high‐touch plaVorm in synergy with other iniMaMves to
communicate with customers driving addiMonal brand awareness, transacMon
conversion and relevant customer engagement.
;Bug Workaround;

VML Overview

VML Overview
Founded in 1992, VML conceives and executes best‐in‐
class interacMve experiences for industry‐leading brands.
Ranked by AdverMsing Age as one of the Top 20 InteracMve
MarkeMng Agencies in the U.S. a full‐service digital agency;
VML provides the full breadth and depth of creaMve
ideaMon, strategic markeMng and digital soluMons.
The 700‐person VML Digital Network includes Studiocom,
with offices in Atlanta and Bogotá, Colombia; and GT, in
London and Barcelona. VML has been a member of the
WPP group of global communicaMon agencies since 2001
and is now the formal digital strategy partner to Y&R.

Client Roster

Thank you
jgrigsby@vml.com