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Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
Johannison
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Johannison

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    • 1. Opportunities of mobile advertising
    • 2. Agenda <ul><li>The Market </li></ul><ul><li>The Opportunities and challenges </li></ul><ul><li>Relevance and reach </li></ul><ul><li>What is Ericsson doing? </li></ul>
    • 3. 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
    • 4. The mobile - a new media channel with some unique capabilities <ul><li>Would you lend it to me? </li></ul><ul><ul><li>The mobile is Personal! </li></ul></ul><ul><li>What would you do when the cinema is over </li></ul><ul><ul><li>The mobile is Always on! </li></ul></ul><ul><li>What would you do when your company have left the table? </li></ul><ul><ul><li>The mobile is Always there! </li></ul></ul>The characteristics of the mobile is changing our daily behavior
    • 5. Mobile advertising opportunities <ul><li>Operators </li></ul><ul><ul><li>New revenue stream </li></ul></ul><ul><ul><li>Speed up initial consumer adoption for new services </li></ul></ul><ul><li>Consumers </li></ul><ul><ul><li>Subsidized content and services </li></ul></ul><ul><li>Advertisers </li></ul><ul><ul><li>Targeted - messages must be more engaging and relevant to be of interest </li></ul></ul><ul><ul><li>Interactive - orientate their values around connection and sociability </li></ul></ul><ul><li>Agencies </li></ul><ul><ul><li>New area of expertise and improved campaigns </li></ul></ul>
    • 6. Industry challenges and barriers <ul><li>Operators </li></ul><ul><ul><li>Lack of knowledge and inventory to monetize </li></ul></ul><ul><li>Consumers </li></ul><ul><ul><li>Fear of intrusiveness </li></ul></ul><ul><li>Advertisers </li></ul><ul><ul><li>Uncertainty of Return on Investment </li></ul></ul><ul><li>Agencies </li></ul><ul><ul><li>Expensive and difficult to buy mobile advertising </li></ul></ul>
    • 7. It is all about Relevance and Reach Revenues <ul><li>Delivering the right content in the right context to the right person </li></ul><ul><li>Targeted and personal, but not intrusive </li></ul><ul><li>Reach as many people as possible </li></ul><ul><li>Across media, platforms, devices and territories </li></ul>Relevance Reach
    • 8. 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 <ul><li>But we should not overplay the mobile’s USP’s… </li></ul><ul><li>Are operators the only ones able to offer targeted mobile inventory? </li></ul><ul><li>Few advertisers want micro-segmentation and targeting at this point </li></ul><ul><li>Users may not be ready for such tight targeting either </li></ul>
    • 9. 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
    • 10. 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
    • 11. Relevance of brands <ul><li>Favorite brands = friends </li></ul><ul><li>Interest related brands = accepted to certain degree </li></ul><ul><li>Any brand = not in my mobile </li></ul>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
    • 12. How can we reach them? Potential advertising bearers <ul><li>What operators do today </li></ul><ul><li>Messaging wholesale </li></ul><ul><li>Targeted Banners </li></ul><ul><li>Pushed messages </li></ul><ul><li>Mobile search </li></ul><ul><li>Idle screen ticker ` </li></ul><ul><li>Ad funded/ free content </li></ul><ul><li>Prepaid budget notifications </li></ul><ul><li>Ad sponsored MVNO </li></ul><ul><li>Mobile TV advertising </li></ul><ul><li>Location based advertising </li></ul><ul><li>Ad funded email services </li></ul>WAP RBT UGC Mobile TV Mobile search Idle screen Voice mail Portals Video Music Games MMS SMS
    • 13. 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 <ul><li>The majority of mobile advertising revenue is and has been off-portal – through internet websites and wholesale SMS </li></ul><ul><li>Mobile operators have not been active players within the mobile advertising value chain. </li></ul><ul><li>Display and search would indicate existing internet mobile advertising mechanisms and new social networking sites extending into mobile arena. </li></ul>Display, Search and Mobile TV are seen as the key Mobile Advertising vehicles of the future Source: TeliaSonera 2007, Ericsson Business Consulting Analysis
    • 14. Reach the audience thru various channels Relevant advertising formats today and tomorrow… <ul><li>100% have a mobile phone </li></ul><ul><li>Over 90% use SMS on a weekly basis </li></ul><ul><li>Over 25% send/receive pictures on a weekly basis </li></ul><ul><li>45% of professional users send/ receive emails </li></ul><ul><li>Around 20-30% browse the mobile internet regularly </li></ul><ul><li>Over 40% of Young early adopters play games on their mobile </li></ul><ul><li>Around 10-15% use Ringbacktones </li></ul><ul><li>15% is downloading full length songs monthly </li></ul><ul><li>Around 5-10% is downloading video clips to their mobile </li></ul><ul><li>They all have a very high interest in new services such as mobile TV, location, community services </li></ul>Source: Ericsson Consumer Lab survey Czech Republic 2008
    • 15. Managing Reach Operators working together…. <ul><li>4 major operators in Sweden have launched a cooperation </li></ul><ul><li>Standard for formats, measurement and reporting (GSMA) </li></ul><ul><li>One point of contact for the advertisers </li></ul><ul><li>Ability to offer campaigns across the operators networks </li></ul><ul><li>Reach. 2 Million (22% of Pop.) </li></ul><ul><li>60% of mobile internet traffic to one of the operators portal </li></ul><ul><li>Major age group: 26–34 years </li></ul><ul><li>Pricing: Depending on the place on the site </li></ul><ul><li>Revenue share between operators depending on number of views per site </li></ul>“ 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
    • 16. 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
    • 17. <ul><li>NRK – Mobile TV Interactive Advertising </li></ul><ul><li>CNN Mobile – Ad revenue supported news portal </li></ul><ul><li>Mobile TV Vodafone Spain / UK </li></ul><ul><li>Daimler Chrysler – Promo Application </li></ul><ul><li>Strategic Advice </li></ul>Ericsson experiences
    • 18. Summary <ul><li>Great interest for mobile advertising </li></ul><ul><li>The key is relevance…for all players involved </li></ul><ul><li>Awareness and education </li></ul><ul><ul><li>Innovate and develop credible trials/ proof of concept demonstrating the effectiveness of this channel </li></ul></ul><ul><ul><li>Educate the advertising community about the opportunities, capabilities and performance of the mobile channel </li></ul></ul><ul><li>Making it easier to do business should be a high priority </li></ul><ul><ul><li>Standard formats, metrics and measurements </li></ul></ul><ul><ul><li>Cross-network connectivity needs to be addressed </li></ul></ul><ul><ul><li>More clarity around business models </li></ul></ul>
    • 19.  

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