Tor Jacobsen Director of VG Mobile. VG Mobile is a doughter company of VG, which is the largest newspaper in Norway in terms of readers both for the printed version and digitally Definition: Mobile including iPad/tablets
This graph shows the main 6 sites in Norway the last year. It shows a mobile market growing in sain, and it shows that ”the winner takes it all” – or winner is a stronger winner on mobile.. or Norway. It is so in Norway, and we also see this for a lot of other countries Our mobile traffic has been 8 times as big that it was 2,5 years ago, so things are happening very quickly.
To set this into perspective, you here see our digital traffic on christmas eve the last 3 years. It´s a good day of measuring because people tend to do the same things this day. It´s two interesting this whith this graph Mobile makes a bigger and bigger share and was last christmas eve almost 40%. We expect this year it to be higher, and allready now we see some days where mobile is bigger The total digital traffic is increasing – the cake is bigger – the user situations is more and more.
Mary meeker, one top medie analyst From the us: While 10% of the usage is on mobile, only 1% of the ad spent is. Over time – this cannot last, and mobile will have a huge growth potential. The other thing is the yellow one, it will also be growing a lot mot My guess is that mobile will be the number one digital mediaplattform in terms of revenue, in very few years
In Norway actually, we actually see this happening allready. This is VG Mobiles ad revenue development. It´s growing very fast – a lot more than the usage is growing. And: it´s a lot of money – it´s a significant share of our digital revenue
So why is mobile so great. Why is it a fantastic advertisement tool? Well it is everywhere, it´s personal and you use it from morning to evening – from dusk till dawn. And especially situations where …. But the most important thing
Salmon 36 % Gjennomsnittlig salgsvekst totalt i testperioden sammenlignet med baseperioden 55 % Gjennomsnittlig salgsvekst i region øst i testperioden sammenlignet med baseperioden
Mary meeker, one top medie analyst
You own the user situation in a higher degree than other digital plattform. It´s sofa time, it´s relaxed and it´s perfect for ads!
This is some examples on ads we have had on some of our iPad products. It don´t need to be so complicated
Poeng: the ARPU is driven 90% from ads
OK, we have a landscape where we expect mobile to gain more and more ”digital market share” and where the total digital page impressions wil grow significant.
1. Digital compass – Where are we going, who‘s leading the way?Tor JacobsenManaging DirectorVG MobileNorway
2. Monetizing on mobile platforms Tor Jacobsen, VG Mobile
3. Mobile media usage is growing very fast:VG has a clear number one position in Norway Top 6 mobile players in Norway – (page impressions) Source: TNS Gallup
4. Mobile device share of vg.no is strongly increasing.The total digital usage is growing rapidly. Share of visitorsExample: Christmas eve 2009 - 2011. Distribution of visitors to the front page of vg.no per platform
5. Time used on mobile does not reflect money spent.Should over time be more consistent. Source: Relationship Capital, Top Mobile Internet Trend, June
6. Mobile ad revenue:It used to be nothing, now it is a significant share of our revenue. Ad revenue development VG Mobil January 2009 – until now
7. Why is mobile so great? Point of purchase «Repetitive now» «Bored now» «Urgent now»
8. A Case Study: Heat Pumps
9. Result: • Cost: 85 000 NOK excl. VAT (netto) • Click: 17 554 • No. of inspections: 170 • No. of sales: 119 • Average order value: 20 000,- • Turnover: 2 380 000 NOK
10. Mobile sells goods.Example: Retailer Coop Sales development Average week 6-9 Average week 11-12 36 % sales growth in the test period, compared with the base period.
11. Advertising in VG Mobil = no.1 in App Store Tirsdag morgen Monday morning Tuesday morning
12. Mobile ad effect is high compared to other channels Source: Chetan Sharma, January 2011
13. Niche Apps make new ad possibilities:Connect your brand with relevant user situations. Pent.no
14. What about the iPad?
15. A lean-back experience gives high awareness
16. iPad ads examples:
17. ARPU is also increasing, which gives future hope! Monthly revenue per user VG Mobile
18. Summary • The future for mobile advertising seems very bright • Mobile is a powerful ad tool for all tactical, and sales driven advertisement. • The mobile device is personal, close to the point of purchase and give through apps possibilities to be very targeted on user situations and target groups. • iPad is a lean back medium, and we try to make products and ads that meet these needs. • The iPad as an ad tool give a very high effect and a new way to build brands digitally. • For mobile platforms, VG is more and more ad focused instead of user payment oriented. We think advertisement will be the main future revenue stream.