The mobile advertising landscape Some operators estimate 1-5% of tot. revenues may come from ‘ mobile advertising’ in 5 years time MA represents a little more than 0.1% of operator revenues Mobile advertising accounts for under 1% of total advertising spend Jim Stengel, CMO, Procter & Gamble 50% of brands say they will spend 5-25% of their ad spend on mobile in 5 years time
The mobile - a new media channel with some unique capabilities
Would you lend it to me?
The mobile is Personal!
What would you do when the cinema is over
The mobile is Always on!
What would you do when your company have left the table?
The mobile is Always there!
The characteristics of the mobile is changing our daily behavior
Delivering the right content in the right context to the right person
Targeted and personal, but not intrusive
Reach as many people as possible
Across media, platforms, devices and territories
Relevance is key Relevant targeting is one of the major factors differentiating mobile media from other advertising windows Anonymous Advertising Ads are not based on any targeting Criteria. $5 CPM rate Level of targeting Contextual advertising Ad based on contextual criteria, e.g. type of content, location. $25 Personalised advertising Ad based on specific, personal criteria, e.g. preferences, location, usage, time. $50 Source: Eden Zoller, Ovum, May 2007
But we should not overplay the mobile’s USP’s…
Are operators the only ones able to offer targeted mobile inventory?
Few advertisers want micro-segmentation and targeting at this point
Users may not be ready for such tight targeting either
Relevant for who? Who would be the target for mobile advertising in CZ? Base: Main mobile phone user Source: Ericsson ConsumerLab Czech country study 2008 Consumer interest in mobile advertising in CZ
Relevant for who? Who would be the target for mobile advertising in CZ Base: Main mobile phone user Source: Ericsson ConsumerLab Czech country study 2008 These 5 segments accounts for about 50% of the population
Interest related brands = accepted to certain degree
Any brand = not in my mobile
SOCIAL SPHERE PUBLIC SPHERE Ads are accepted Ads are a part of the environment Favourite brands Interest related brands Any brands PRIVATE SPHERE Ads are intrusive Source: Ericsson ConsumerLab Largest online advertisers in CZ Jan-July 2008 Source: CIA Czech Republic, August 2008
How can we reach them? Potential advertising bearers
What operators do today
Idle screen ticker `
Ad funded/ free content
Prepaid budget notifications
Ad sponsored MVNO
Mobile TV advertising
Location based advertising
Ad funded email services
WAP RBT UGC Mobile TV Mobile search Idle screen Voice mail Portals Video Music Games MMS SMS
Operator View Mobile Ad inventory changing from Messaging today to Display, Search and Mobile TV in the future Messaging is currently the key Mobile Advertising vehicle
The majority of mobile advertising revenue is and has been off-portal – through internet websites and wholesale SMS
Mobile operators have not been active players within the mobile advertising value chain.
Display and search would indicate existing internet mobile advertising mechanisms and new social networking sites extending into mobile arena.
Display, Search and Mobile TV are seen as the key Mobile Advertising vehicles of the future Source: TeliaSonera 2007, Ericsson Business Consulting Analysis
Reach the audience thru various channels Relevant advertising formats today and tomorrow…
100% have a mobile phone
Over 90% use SMS on a weekly basis
Over 25% send/receive pictures on a weekly basis
45% of professional users send/ receive emails
Around 20-30% browse the mobile internet regularly
Over 40% of Young early adopters play games on their mobile
Around 10-15% use Ringbacktones
15% is downloading full length songs monthly
Around 5-10% is downloading video clips to their mobile
They all have a very high interest in new services such as mobile TV, location, community services
Source: Ericsson Consumer Lab survey Czech Republic 2008
4 major operators in Sweden have launched a cooperation
Standard for formats, measurement and reporting (GSMA)
One point of contact for the advertisers
Ability to offer campaigns across the operators networks
Reach. 2 Million (22% of Pop.)
60% of mobile internet traffic to one of the operators portal
Major age group: 26–34 years
Pricing: Depending on the place on the site
Revenue share between operators depending on number of views per site
“ We realized that not even with our large market shares we can create enough interest among advertisers for the mobile channel so we asked ourselves the question: How can we grow the market and make it more interesting?The answer was that we need to work together” (Johan Lindgren CEO of Telenor Sweden) Source: Svenska Dagbladet
Overview of value chain and expected percentages Advertiser Ad agency Media sales agency Service enabler Publisher/ Operator Consumer Pays 100% Gross ad rate (CPM) Retain 25% of Gross ad rate Retains 15-20% of Gross ad rate Receives 55-60% of Gross ad rate Shares 25-30% with content provider