MOBILE ADVERTISING An Overview Presented at Asif Ali Chief Technology Officer Mobile-worx Inc.,

Mobile Industry 2 billion users and growing

Some Statistics 160m mobile phone subscribers 70% reside at the bottom of the pyramid with SMS as the primary channel of content 18-44 forms the largest segment which uses data services Source: IAMAI Size of the VAS market – 2850 cr Revenue Split

160m mobile phone subscribers

70% reside at the bottom of the pyramid with SMS as the primary channel of content

18-44 forms the largest segment which uses data services

The content marketplace in India The mobile VAS providers / / publishers / Mobile generally earn low revenues due to low payouts Deliver non-innovative solutions Carriers demanding exclusivity stifle innovation and growth. Few very successful players; they are forced to change business models / focus areas subsequently for better growth

The mobile VAS providers / / publishers / Mobile generally earn low revenues due to low payouts

Deliver non-innovative solutions

Carriers demanding exclusivity stifle innovation and growth.

Few very successful players; they are forced to change business models / focus areas subsequently for better growth

Mobile advertising may just change the dynamics of the market place

Wireless advertising: what people are saying Mobile Advertising Worth $10 Billion By 2010. About 50% of respondents in the US and UK and 39% in Italy would be interested in getting free content in return for being sent relevant advertising VisionGain describes 2006 as the final year of an experimental phase in the use of mobile marketing, with full mainstream status anticipated by 2008. Verizon Wireless Chief Marketing “..mobile advertising will eventually grab as much as 30% of the approximately $100 billion US Ad spend” The future of advertising, is in cell phones and handheld devices. Global Ad Agency Giant

OVERVIEW OF MOBILE ADVERTISING

Advertisement within a Game Original Game Inserted Banner Ad Can contain audio, video, banners or text Audio AD will preview Mobile advertisements can be Text Flash movies Banners Audio Video

Mobile advertisements can be

Text

Flash movies

Banners

Audio

Video

The mobile advertising ecosystem $$$$ $ $ $ $ Advertiser Publisher Carrier Subscriber

Advertising options Unused characters in SMS Opt-in SMS / WAP Services Idle screen Mobile TV / Mobile Radio / Mobcasts Callback Tones / IVR ADS Mobile search Content Decks Mobile Web Rich mobile applications Mobile Games Media Text Banners Audio Videos (MPEG and 3GP) Flash

Unused characters in SMS

Opt-in SMS / WAP Services

Idle screen

Mobile TV / Mobile Radio / Mobcasts

Callback Tones / IVR ADS

Mobile search

Content Decks

Mobile Web

Rich mobile applications

Mobile Games

Media

Text

Banners

Audio

Videos (MPEG and 3GP)

Flash

Advertising technologies SMS Java / BREW / Flash Lite / Symbian WML IP TV (DVB-H / MediaFLO) Carrier Technologies – GPRS / CDMA Data

SMS

Java / BREW / Flash Lite / Symbian

WML

IP TV (DVB-H / MediaFLO)

Carrier Technologies – GPRS / CDMA Data

Mobile advertising success factors Non intrusive, permission based ADS Contextually relevant ADS Location sensitive ADS Profile and behavior based ADS (operators generally have massive user data) Interactivity Viral nature of the technology or campaign Reach – SMS / WAP Sites / Rich Clients | Devices | Networks

Non intrusive, permission based ADS

Contextually relevant ADS

Location sensitive ADS

Profile and behavior based ADS (operators generally have massive user data)

Interactivity

Viral nature of the technology or campaign

Reach – SMS / WAP Sites / Rich Clients | Devices | Networks

Why is mobile advertising compelling? Traditional Advertising On-line Advertising Wireless Advertising One-to-one advertising Different design to different audiences Interactive advertising Location based, highly targeted Highly Interactive, viral , very personal & ubiquitous Mass advertising, large reach Limited customisation No interactivity CAPABILITIES Highly targeted, Highly relevant, Permission based and ubiquitous = Value for all stakeholders – Customers, Carriers, Publishers, Advertisers PERSONALISATION - +

One-to-one advertising

Different design to different audiences

Interactive advertising

Location based, highly targeted

Highly Interactive, viral , very

personal & ubiquitous

Mass advertising, large reach

Limited customisation

No interactivity

THE OPPORTUNITIES IN MOBILE ADVERTISING

Mobile advertising offers compelling opportunities Carriers - better revenues, increased data traffic Mobile developers – better revenues with a higher pie of the overall disbursement Advertisers – a highly targeted and a personal medium to sell their products and services. Mobile advertising enables an AD supported content model similar to what the Internet offers today Mobile advertising may benefit the subscribers the most as they will get AD-supported, free or low cost premium mobile services and content

Carriers - better revenues, increased data traffic

Mobile developers – better revenues with a higher pie of the overall disbursement

Advertisers – a highly targeted and a personal medium to sell their products and services.

Mobile advertising enables an AD supported content model similar to what the Internet offers today

Mobile advertising may benefit the subscribers the most as they will get AD-supported, free or low cost premium mobile services and content

The Mobile Advertising Market Place Is young, but witnessing a lot of action

Is young, but witnessing a lot of action

Opportunities for Mobile Developers Mobile advertising offers tremendous opportunities for content providers Mobile advertising can provide better revenues, faster ROI and give access to large markets Mobile marketing is a proven alternative option to monetizing mobile content – whether it is applications, games, or just text based services

Mobile advertising offers tremendous opportunities for content providers

Mobile advertising can provide better revenues, faster ROI and give access to large markets

Mobile marketing is a proven alternative option to monetizing mobile content – whether it is applications, games, or just text based services

Strategy for mobile developers Sign up with an mobile AD partner Most basic mobile content or apps have a 6 months max shelf life. Do think of publishing these apps or content for FREE, with the support of an mobile AD partner Do try at least one very successful mobile app, a try. Launch it off deck, for no charge with ADS embedded within it Publish them on your own, external (off deck) and Carrier Channels Publicize your content; SEO also helps

Sign up with an mobile AD partner

Most basic mobile content or apps have a 6 months max shelf life. Do think of publishing these apps or content for FREE, with the support of an mobile AD partner

Do try at least one very successful mobile app, a try. Launch it off deck, for no charge with ADS embedded within it

Publish them on your own, external (off deck) and Carrier Channels

Publicize your content; SEO also helps

Opportunity for Developers: Bottom of the pyramid Target Segment: Bottom of the pyramid; users with SMS functionality Technology: SMS Data services, IVR Solutions: Ad driven SMS Alerts eg: Breaking news alerts, Stock Alerts, Investor Alert, Doctors Appointments, Mobile Communities powered by SMSes Risk: Bulk SMS Still expensive, and a CPC model might just not deliver the right results.

Target Segment: Bottom of the pyramid; users with SMS functionality

Technology: SMS Data services, IVR

Solutions: Ad driven SMS Alerts eg: Breaking news alerts, Stock Alerts, Investor Alert, Doctors Appointments, Mobile Communities powered by SMSes

Risk: Bulk SMS Still expensive, and a CPC model might just not deliver the right results.

Users with Data Access Target Segment: Users with Data access Key Technology: WAP Push, WAP Portals etc Solutions: Mobile Web Sites, social communities, content deck alerts etc Risk: Push messages are expensive.

Target Segment: Users with Data access

Key Technology: WAP Push, WAP Portals etc

Solutions: Mobile Web Sites, social communities, content deck alerts etc

Risk: Push messages are expensive.

Smart Phone Segment Target Segment: Users with rich technologies such as Java, BREW, Flash Lite or Symbian Solutions: Mobile Games, Mobile Applications, Rich connected applications etc. Risks: Small user base, slow connectivity speeds

Target Segment: Users with rich technologies such as Java, BREW, Flash Lite or Symbian

Solutions: Mobile Games, Mobile Applications, Rich connected applications etc.

Risks: Small user base, slow connectivity speeds

High end segment Target Segment: Users with super-smart phones, touch pads, Wi-Fi, mobile TV capability, LBS / GPS etc Solutions: Mobile-TV applications, GPS or LBS apps, Business Apps etc Risks: Very small user base

Target Segment: Users with super-smart phones, touch pads, Wi-Fi, mobile TV capability, LBS / GPS etc

Solutions: Mobile-TV applications, GPS or LBS apps, Business Apps etc

Risks: Very small user base

Mobile-worx is the pioneer of mobile advertising in India

Mobile-worx is a pioneer i mobile advertising in India. Mobile-worx has recently launched ZestADZ - India’s first complete mobile marketing solution Patent-pending technology Supports SMS, WAP, and Rich media advertising Working with leading carriers and vendors Opt-in permission marketing based About mobile-worx A leading mobility solutions firm. Headquartered in LA Provide compelling VAS products and services for the carriers, MVNOs and mobile content publishers / developers Leading Asia Pac carriers have been our customers

Mobile-worx is a pioneer i mobile advertising in India.

Mobile-worx has recently launched ZestADZ - India’s first complete mobile marketing solution

Patent-pending technology

Supports SMS, WAP, and Rich media advertising

Working with leading carriers and vendors

Opt-in permission marketing based

About mobile-worx

A leading mobility solutions firm. Headquartered in LA

Provide compelling VAS products and services for the carriers, MVNOs and mobile content publishers / developers

Leading Asia Pac carriers have been our customers

[email_address] Mobile-Worx, Inc. Asif Ali 91 9840089876