Shaping the Future of the Newspaper                                                                      STRATEGY REPORT
A...
Shaping
 the Future
of the Newspaper




 www.wan-press.org
 A WORLD ASSOCIATION OF NEWSPAPERS PROJECT,
 SUPPORTED BY WORL...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




TABLE OF CONTENTS

    Executive Summary                               ...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




4
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




Executive Summary

Around the world, newspapers' digital              s...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




opportunities to reach audiences, but also to       What newspapers sho...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




1. Global Mobile Market

Despite the global advertising downturn, the  ...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




    Mobile Content Consumption: France, Germany and the UK, May 2008
  ...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




• Informa Telecoms & Media estimates                           sectors,...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




                  Year-Over-Year Growth Rate, Mobile vs. Other Industri...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




                                  Telecoms Market Key Indicators, 2007
...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




                                        Percentage of Online Users Usin...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




In 2013, the United Kingdom, Germany,                                  ...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




worldwide mobile phone subscriptions only
accounted for 500 million in ...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




                                 Mobile Network: 2G vs. 3G Availability...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




         Flat Rate Monthly Pay Mobile Internet Subscribers by Country, ...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




  Mobile Content Consumption: France, Germany and the UK, May 2008
    ...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




In the United States, according to comScore,
the mobile users who ever ...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




2. Mobile Marketing
   and Advertising
Despite a downturn in overall ad...
APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER




                                                                       ...
VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES




         Scandinavian Consumer Study of Mobile Message Usefulness
     ...
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
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Доклад SFN 8.4. - Эффективные мобильные стратегии / Winning Mobile Strategies

  1. 1. Shaping the Future of the Newspaper STRATEGY REPORT ANALYSING STRATEGIC DEVELOPMENTS AND OPPORTUNITIES IN THE PRESS INDUSTRY Volume 8 N°4 APRIL 2009 © WAN 8.4 Around the world, faster Winning mobile technological infrastructure, multimedia Mobile handsets, advertising networks and engaged users are driving the mobile channel to become Strategies an essential part of every newspaper company’s media mix www.futureofthenewspaper.com All the strategy reports are available to WAN members and subscribers at the SFN Web site
  2. 2. Shaping the Future of the Newspaper www.wan-press.org A WORLD ASSOCIATION OF NEWSPAPERS PROJECT, SUPPORTED BY WORLD LEADING BUSINESS PARTNERS www.atex.com/ THE LEADING SUPPLIER OF SOLUTIONS AND SERVICES FOR DIGITAL, ADVERTISING, CONTENT MANAGEMENT AND SUBSCRIPTION APPLICATIONS. www.man-roland.com/en/p0001/index.jsp A LEADING COMPANY FOR NEWSPAPER PRODUCTION SYSTEMS www.telenor.com/ THE LEADING NORWEGIAN TELECOMMUNICATIONS, IT AND MEDIA GROUP www.norskeskog.com/ A WORLD LEADING PRODUCER OF NEWSPRINT AND MAGAZINE PAPER, WITH 18 PAPER MILLS AROUND THE WORLD © WORLD ASSOCIATION OF NEWSPAPERS, 2009
  3. 3. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES TABLE OF CONTENTS Executive Summary 5 1 Global Mobile Market 7 Telecom Markets by Country 10 Global Mobile Usage 13 2G vs. 3G 14 Mobile Internet 15 Japanese Mobile Market 18 2 Mobile Marketing and Advertising 19 Successful Mobile Ad Campaigns in Japan 26 3 Mobile Tagging 29 QR Codes in Japan 30 2-D Barcodes in Europe 33 2-D Barcodes in the United States 37 4 Mobile Technologies and Platforms for Newspapers 39 Mobile – Play it all the Way 39 Mobile Analytics 41 Implementing a Mobile Strategy 43 5 Why Mobile is an Opportunity for Newspaper Companies 45 Distribution and Monetization 45 Conclusion 53 3
  4. 4. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER 4
  5. 5. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES Executive Summary Around the world, newspapers' digital soaring, with some markets reaching strategies are finding more ways to reach saturation. In 2004, there were 1.74 billion audiences with better, more tailored offerings mobile subscribers worldwide. That number is for each audience member. There is no expected to reach 3.9 billion by the end of question mobile, although currently a small 2009, and 4.9 billion in 2012, according to slice of the digital pie, will increasingly be a Portio Research. key platform audiences turn to, and Mobile growth is happening in developing newspapers must be there to meet them. parts of the world, where handsets are cheaper “There is no doubt a future-proof newspaper than PCs, and online access via mobile is channel strategy means a strong mobile spreading like wildfire, bringing news and presence. And the more browsers newspapers information to areas that previously had no receive, the more they will gain in click- connection to the Internet. Meanwhile, in throughs and advertising revenue,” states mobile-saturated markets like Japan, where Anders Børde, marketing director for Oslo- mobile tagging was developed in 2003 and based More Mobile Relations in Chapter 4. smartphone usage is high, the mobile is relied “Newspapers that have the opportunity to talk on as a wallet, to make purchases online and to customers (not only distributing content) on share information in real time through mobile so many channels and several times every day Web sites, as well as for e-mailing, sending are in a unique position to build rich relations SMS messages and voice calls – activities that with their audiences. I believe newspapers, as are also becoming the norm elsewhere. well as any other type of company, cannot take Although each market around the world has its the risk of not communicating with customers own variables, they all have one thing in over the mobile platform. It will simply be common: each day, the number of people who expected.” cannot live without their mobile goes up. This Indeed, mobile usage on a global scale is means newspapers not only have more 5
  6. 6. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER opportunities to reach audiences, but also to What newspapers should be thinking about is engage them and understand them like never not only mobile ads, but how to use cell before. phones for micro payment. We do that a lot here, and that's the biggest driver of mobile “It encourages users to repeat interaction. It revenues.” also connects what was previously disconnected, drives specific actions, and Another interactive mobile revenue stream embeds into greater context,” said Christopher seeing growing usage is mobile tagging. This Billich, senior vice president of research and trend, which digitally links a 2-D barcode and strategy at Tokyo-based Infinita, Inc., in mobile device, provides users with Chapter 2. complementary information, such as coupons, product details, content in other formats, Just as newspapers launched print versions contests and more. hundreds of years ago, then Web sites in the 1990s, they are now developing a presence on For example, QR codes are used by mobile. Publishers agree that, just as when McDonald's in Japan to access nutrition they launched their first Internet sites, growth information. The fast food chain claims to was slow, and missteps were made along the have 10 million registered users – this amounts way to Web 2.0. They also agree there is a to 10 percent of Japan's population. future for mobile advertising, and as adoption In Spain, daily newspaper El País launched rates increase, so will revenue opportunities. several campaigns using the 2-D barcode in “ ... the mobile advertising market seems to be 2008, one of which was a campaign that gave heading the same way as the standard Web customers an easy way to access the mobile advertising market. It just lags behind by a few site – by using their mobiles to scan barcodes years, and it’s tempered by screen size and the in the paper. functionality of the mobile phone. In all, monetization strategies for mobile are Smartphones like the iPhone are showing us plentiful, ranging from advertising, to what the future of mobile can look like, but not micropayments to barcoding. As newspaper everyone is going to want a big screen, and we companies face mobile, like they did with the will have to wait until some of the Internet in the past, they are reminded that functionality available on high-end phones, above all else, as always, content is key. like location information, and the ability to stream video and audio filter down to the lower-end of the market. We will also need to wait for faster 3G connections, to get out of the cities and into the towns, villages and country before we can start to see video advertising becoming more commonplace on mobiles,” Marcus Austin, mobile product manager for Guardian News & Media in London, told SFN in Chapter 5. Jo Christian Oterhals, CEO of VG Multimedia AS in Oslo, pointed out in Chapter 5 that mobile is ripe for advertising, as well as other types of revenue. “We believe eyeballs have the same value, no matter if it's in print, online or on the cell phone,” he said. “But today the revenues from mobile ads aren't big. As always, what's most important is to develop the product itself, drive traffic to it and establish a position. When this is in place, monetizing can start for real. I think that the mobile Internet is just starting up, and frankly the revenues all of us see today is just a drop compared to what will come. 6
  7. 7. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES 1. Global Mobile Market Despite the global advertising downturn, the higher than that of other handset users. iPhone mobile market continues to grow in the double users accessed: digits now and projected well into the future. • News and information via their Web browser The anticipated skyrocketing growth resembles 80 percent vs. 20 percent for all mobile users the hockey-stick trajectory of Internet revenue • E-mail 76 percent vs. 13 percent starting in 2001. • Mobile music, 66 percent vs. 23 percent • Social networking, 55 percent vs. 13 percent The burgeoning mobile ecosystem is • Web search, 55 percent vs. 12 percent punctuated by dynamic usage patterns, • Buying a game, 19 percent vs. 3 percent interactive content development, advertising • 23 percent of mobile media users have a and subscription revenues and technological smartphone and 3.5 percent an iPhone. Of the breakthroughs that signal huge potential for iPhone users 75 percent are male and mostly newspaper companies to extend their brands aged 18-44. and revenue-making for the future. Dozens of newspaper companies around the world realise the potential of iPhones, and One of the key drivers for the most recent have developed their iPhone Web sites spikes in usage of mobile phone functionality accordingly. Among the newspaper companies beyond voice usage is the surge of iPhones and with downloadable applications from the other smartphones sweeping the consumer Apple iTunes App Store are: market. The CEO of Deutsche Telecom • Globe and Mail, Canada reported that iPhone data usage is 30 times • USA Today, United States higher than from other phones. Google reports • New York Times, United States that iPhone search requests are 50 times higher • O Globo, Brazil than from any other phone. • Straits Times, Singapore comScore reports that iPhone multimedia data • Le Parisiene and Le Monde, France usage in the United Kingdom is significantly • El Universal, Mexico 7
  8. 8. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER Mobile Content Consumption: France, Germany and the UK, May 2008 80 Any news or info via browser 32 11 57 Accessed Web search 18 iPhone 5 Smartphone 32 15 Market Watched mobile TV and/or video 7 42 Accessed a social networking site or blog 10 3 70 Listened to music on mobile phone 33 18 70 Used e-mail (work or personal) 26 8 % 0 10 20 30 40 50 60 70 80 90 Source: M:Metrics © World Association of Newspapers 2008-2009 • Associated Press, United States services, consulting services, and the • Ria Novosti, Russia semiconductor industry. • 20 Minutes, France and Germany While mobile experts and research houses • Aftonbladet, Sweden agree the industry will grow quickly and • Jakarta Globe, Indonesia profitably, few agree how much the nascent • Aftenposten, Norway industry will be worth in the years ahead: • El País, Spain • Telegraph and Guardian, United Kingdom • According to PricewaterhouseCoopers, mobile • Chicago Tribune, United States advertising will grow from almost $1.4 billion According to Gartner Group, WTN News, in 2006 to $16.4 billion in 2012. EDN, and Vault, the global mobile market • ABIResearch projects the world market for accounted for US$718.4 billion in 2006, mobile marketing and advertising was worth higher than many other sectors, such as IT about $3 billion in 2007, and will be valued at services, pharmaceutical sales, financial $19 billion in 2012. Global Advertising Market: Internet vs. Mobile % US$ millions 140 120,000 129.1 % Change Internet Advertising (US$ millions) % Change Mobile Advertising (US$ millions) 103,958 120 100,000 107.4 93,461 103.0 100 82,324 2008-12 80,000 CAGR 85.6 70,733 80 17.3 58,809 44.0 65.5 60,000 60 46,843 46.5 42.4 35,734 42.8 40,000 40.1 39.4 40 44.2 27.9 24,778 28.4 17,404 31.1 20 12,420 25.5 9,165 16,407 20,000 20.3 12,774 4,382 6,418 16.4 13.5 703 1,427 2,648 11.2 148 339 0 0 2003 2004 2005 2006 2007p 2008 2009 2010 2011 2012 Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates © World Association of Newspapers 2008-2009 8
  9. 9. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES • Informa Telecoms & Media estimates sectors, according to Portio Research. In 2006, worldwide mobile advertising spending at the mobile market led with a growth of more $871 million in 2006 and projects it will reach than 16 percent, double that of the second $11.35 billion by next year. highest pharmaceutical sector, and also beat IT services, travel and tourism as well as financial • Overall worldwide mobile revenue, services. including advertising, subscriptions and handsets, will grow from $519.7 billion in In 2007, the year-over-year growth of the global 2004 to $1.09 trillion in 2012, according to mobile market is 11.9 percent, even higher than Portio Research. the semiconductor industry, consulting services, The mobile market also grew faster than other or financial services, according to Portio. Worldwide Mobile Revenue, 2004-2012(e) US$ billion 1,200 1,094.9 1,000 1,045.7 993.6 936.0 800 874.3 803.7 718.4 600 616.4 519.7 400 200 0 2004 2005 2006 2007(e) 2008(e) 2009(e) 2010(e) 2011(e) 2012(e) Source: Portio Research © World Association of Newspapers 2008-2009 Worldwide Mobile Market vs. Other Industries – Revenue, 2006 US$ billion 800 700 718.4 672.3 600 604.5 500 472.2 400 300 280.2 260.2 200 100 0 Semiconductor Consulting Financial Pharmaceutical IT Services Mobile Market Industry Services Services Sales Source: Gartner, WTN News, EDN, and Vault © World Association of Newspapers 2008-2009 9
  10. 10. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER Year-Over-Year Growth Rate, Mobile vs. Other Industries, % 2006 and 2007(e) 18 2006 2007(e) 16 16.6 14 12 10 11.9 8 8.0 8.1 6 7.1 6.4 4 4.6 4.5 2 3.5 0 Financial Pharma- Travel & IT Mobile Financial Semi- Consulting Mobile Services ceutical Tourism Services Market Services conductor Services Market Industry Source: Portio Research © World Association of Newspapers 2008-2009 According to Portio Research, in 2006, SMS Share of Worldwide Mobile contributed the majority of overall mobile data Data Service Revenue, services revenue, which accounted for 57.6 2006 vs. 2011(e) percent. MMS came next with a 14.5 percent contribution. 2006 In 2011, SMS is expected to remain the 13.3 number one contributor, but its share is 1 forecast to drop dramatically from 57.6 3.9 percent to less than 40 percent. MMS is still 2.5 ranked second, with its share down slightly to 14.2 percent. 6.7 The biggest gainer is mobile video, which is 0.4 57.8 expected to increase from only 1 percent in 2006 to nearly 8 percent in 2011. 14.5 Mobile music, mobile IM and mobile e-mail are also on the upswing, according to Portio. 2011(e) 17.5 Telecom Markets by Country According to IDATE and data from operators 39.8 and national regulators, in 2007 the United 7.9 States reported £133 billion telecom service revenues, the highest among all other countries on the table. Japan ranked second with £50.4 6.0 billion. 3.5 In terms of telecom revenues per capita, the United Kingdom, United States and Canada 9.0 are in the top three with more than £430. 2.2 14.2 Fixed line penetration is not that impressive SMS Mobile Games across countries – in Germany, there are 66 MMS Mobile e-mail fixed lines per 100 people, the highest among Mobile IM Mobile Video Mobile Music Others all the countries. In Japan, France, and Italy, the penetration is even lower than 50 percent. Source: Portio Research © World Association of Newspapers 2008-2009 The United States and United Kingdom have 10
  11. 11. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES Telecoms Market Key Indicators, 2007 UK France Germany Italy USA Canada Japan Telecoms service revenues £26.9bn £24.4bn £30.4bn £20.5bn £133.0bn £14.2bn £50.4bn Telecoms revenues per capita £443 £382 £369 £353 £442 £432 £395 Fixed lines per 100 population 55.5 45.1 66.0 44.4 53.1 58.3 47.4 Monthly outbound fixed-line minutes per capita 203 138 171 122 223 182 78 Mobile connection per 100 population 121.0 86.9 117.9 154.4 85.3 61.6 78.9 Share of mobile post-pay connections 36% 66% 45% 10% 92% 78% 98% 3G connections per 100 population 20.6 9.2 10.6 41.4 14.0 0.9 65.4 Source: IDATE, operators, national regulators © World Association of Newspapers 2008-2009 the most monthly outbound fixed line minutes mobile users use text messaging. MMS is most per capita, at more than 200 minutes. Japan, on popular in Italy – more than four out of 10 the contrary, has the least, at less than 80 users there use MMS and photo messaging. E- minutes per capita. mailing is rarely used in most of the countries, except for Japan, where three out of four users 3G connections per 100 people are particularly use e-mail on their mobile phones, while text high in Japan, at more than 65. Italy comes messaging, MMS and photo messaging are next with 41 connections, while France and relatively low. Canada lag behind with less than 10 3G connections per 100. Through its survey of countries, Ofcom's research also revealed that females are more likely to Text messaging is still more popular compared use both fixed lines and mobiles than males. to MMS, photo messaging and e-mailing among most of the countries surveyed for In Japan, the United States, Italy, France and Ofcom's research, Understanding International the United Kingdom, weekly mobile usage is Communications Behaviour, published in higher than landline, while in Canada, fixed October 2008. In Germany, Italy, the United line usage is much higher than mobile. In Kingdom and France, more than 70 percent of Germany, usage of the two devices almost tie. Communication Usage of Mobile Phones Which of the following do you use your mobile phone for? Base: all adults aged 18+ who own a mobile phone % (UK 929, France 914, Germany 946, Italy 952, USA 834, Canada 785, Japan 914) 100 90 Text messaging MMS or photo messaging 86 80 79 E-mailing 78 70 74 75 60 50 55 46 40 41 30 27 26 25 27 20 14 16 10 12 13 9 10 10 8 6 0 UK France Germany Italy USA Canada Japan Source: Ofcom’s Understanding International Communications Behaviour research, October 2008 © World Association of Newspapers 2008-2009 11
  12. 12. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER Percentage of Online Users Using Fixed Line and Mobile on a Weekly Basis Additional proportion of women, in addition to male proportion, claiming weekly use of a landline Proportion of men,claiming weekly use of a landline Additional proportion of women, in addition to male proportion, claiming weekly use of a mobile Proportion of men, claiming weekly use of a mobile Denote a statistically significant change % 100 1 1 96 6 4 4 3 2 88 11 88 80 7 84 86 86 8 5 81 77 76 1 72 74 5 70 60 61 14 40 41 20 0 UK France Germany Italy USA Canada Japan Source: Ofcom’s Understanding International Communications Behaviour research, October 2008 © World Association of Newspapers 2008-2009 European Mobile Content Revenue by Country and Category, 2013 Revenues/per capita ranking: million 1 13 3 4 11 15 10 2 9 8 16 14 5 6 12 7 1,200 1,000 Mobile Content Revenues 800 600 400 200 0 Germany France Italy Spain Netherlands Greece Sweden Austria Portugal Belgium Switzerland Denmark Norway Ireland Finland UK Other content 152 161 142 137 97 35 22 22 17 21 19 14 13 11 9 13 Video/TV 251 241 335 334 129 43 30 31 24 36 33 21 17 16 14 21 Games 218 190 169 134 111 37 25 26 21 29 20 17 15 12 8 15 Music 178 145 154 97 90 31 23 33 16 20 19 12 16 12 8 10 Logos 17 14 43 30 32 4 5 5 2 4 4 2 3 2 2 2 Ring-back tones 44 45 27 37 22 8 10 6 5 5 4 4 3 3 3 2 Ring tones 120 92 42 71 62 17 13 13 11 12 9 9 7 6 5 5 Source: Jupiter Research Mobile Forecast (Western Europe), June, 2008 © World Association of Newspapers 2008-2009 12
  13. 13. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES In 2013, the United Kingdom, Germany, Global Mobile Usage France, Italy and Spain will represent 79 percent of the overall mobile content market Global mobile subscribers accounted for 1.74 in Europe, which accounts for 5.4 billion billion in 2004, and are expected to rise to 3.9 in total, according to Jupiter Research's Mobile billion this year, growing to 4.9 billion in Forecast, June 2008. Video and TV revenue 2012, according to estimates by Portio will make up the biggest chunk in the five Research. The worldwide mobile users will countries, followed by games and music. reach 4.9 billion in 2012. According to Informa Telecoms & Media’s World Cellular Information Services, Worldwide Mobile Subscribers, 2004-2012(e) Million 6,000 5,000 4,906.9 4,589.7 4,000 4,254.3 3,901.3 3,502.2 3,000 3,080.9 2,650.2 2,000 2,169.7 1,744.5 1,000 0 2004 2005 2006 2007(e) 2008(e) 2009(e) 2010(e) 2011(e) 2012(e) Source: Portio Research © World Association of Newspapers 2008-2009 Worldwide Mobile Phone Subscriptions, 1999-2009 Billion Million 4.00 600 Yearly Net Adds (Million) 3.75 Cumulative Subscribers (Billion) 3.50 3.25 500 3.00 2.75 400 2.50 2.25 2.00 300 1.75 1.50 1.25 200 1.00 0.75 100 0.50 0.25 0.00 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Informa Telecoms & Media’s World Cellular Information Services © World Association of Newspapers 2008-2009 13
  14. 14. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER worldwide mobile phone subscriptions only accounted for 500 million in 1999. However, Mobile Phone Users the numbers increase more than 200 million Who Only Use Voice Services, every year. In 2009, the total subscriptions will % 2001 vs. 2006 total nearly four million. 90 According to Strategy Analytics, the Asia 80 2001 2006 Pacific region has contributed the most mobile 70 users worldwide throughout the years, 60 boosting from less than 400 million in 2002 to 50 nearly two billion in 2010. North America 40 and Western Europe have increased at a flat 30 pace; users from each remained at less than 20 400 million throughout the years. 10 The rest of the world, however, grew rapidly 0 North Western Asia Rest from less than 300 million in 2002 to nearly America Europe Pacific of World 1.5 billion in 2010, next only to the Asia Source: Strategy Analytics © World Association of Newspapers 2008-2009 Pacific. sales of each are expected to reach 1.1 billion Worldwide Mobile Users in 2011. TV phones are growing from niche by Region, 2002-2011 to an expected 150 million in 2011, according Million Asia Pacific to Strategy Analytics. 2,500 Rest of the World Western Europe 2,000 North America 1,500 Sales of Multimedia Handsets, North America, Western Europe 1,000 and Asia Pacific, 2002-2011 500 Million 1,200 Camera Phone 0 1,000 Music Phone 02 03 04 05 06 07 08 09 10 11 TV Phone 20 20 20 20 20 20 20 20 20 20 800 Source: Strategy Analytics © World Association of Newspapers 2008-2009 600 400 The number of people using mobile solely 200 for voice services have dropped, according to 0 Strategy Analytics. In 2001, more than eight 02 03 04 05 06 07 08 09 10 11 20 20 20 20 20 20 20 20 20 20 out of 10 North American users used mobile phones solely for voice service, but that Source: Strategy Analytics © World Association of Newspapers 2008-2009 percentage decreased to 50 percent in 2006. In Western Europe and rest of the world, about 60 percent of the users were using mobile only for voice services. However, 2G vs. 3G the percentage has dropped to less than 20 According to IDATE, the 2G network is highly percent and about 30 percent, respectively. penetrated in all the countries surveyed, with The Asia Pacific has the lowest percentage of 100 percent reach in the United Kingdom, users who use mobile only for voice services – Japan and Italy, and more than 95 percent about 50 percent in 2001 and then down penetration in other countries. to about 10 percent in 2006. Multimedia handsets in North America, Western Europe, 3G in Japan also has 100 percent penetration, and the Asia Pacific have taken off since the highest in all the countries. The United 2002, especially for camera phones and Kingdom is next, with 92 percent 3G music phones. In 2002, camera phones and penetration. In other countries, the reach is music phones sold less than 50 million, but around 70 percent to 80 percent. 14
  15. 15. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES Mobile Network: 2G vs. 3G Availability % 2G 3G HSPA 100 100 99 99 100 98 100 100 95 92 80 87 80 78 78 78 78 70 70 70 70 60 40 20 15 0 UK France Germany Italy USA Canada Japan Note: Some figures estimated for the UK, Germany, Canada and Japan. HSDPA figure unavailable in Canada. Source: IDATE, 2008 © World Association of Newspapers 2008-2009 High Speed Packet Access (HSPA), a standard that improves the end-user experience by Global Wireless Internet Access increasing peak data rates, is quite popular in Users through Mobile Phone, the European countries surveyed and Japan. 2002-2008 The United Kingdom leads with 87 percent Million reach, while in other countries reach is between 1,200 114% 107% 1,100 48% 39% 20% 19% 70 percent to 80 percent. In the United States, 1,000 reach is relatively lower, at only 15 percent. 900 920 800 Number of users 700 Growth rate % 770 Mobile Internet 600 640 500 According to iResearch, global wireless online 400 460 access users though mobile phone increased 300 310 200 from 70 million to 920 million in 2008. The 100 150 growth rate was more than 100 percent in 2003 0 70 and 2004, but dropped to double digits in the 2002 2003 2004 2005 2006e 2007e 2008e Source: iResearch Inc. years following. © World Association of Newspapers 2008-2009 Mobile Internet Penetration, Europe, Nov., 2007 47.2 m +4.8% Mobile Internet users 21% 45.0 m Non-mobile Internet users 79% August 2007 November 2007 Source: Mobiento © World Association of Newspapers 2008-2009 15
  16. 16. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER Flat Rate Monthly Pay Mobile Internet Subscribers by Country, 2013 Million % 12 50 11.7 Flat-rate mobile 11.7 Internet subscribers 11.4 (pay monthly only) 10 Share of flat-rate mobile 40 Internet subscribers (%) 8 Average 8.2 8.0 30 30 in Europe 27 28 30 6 22 23 23 20 21 21 18 19 20 17 17 4 15 12 2.8 10 2 2.0 1.3 1.5 1.5 1.3 1.3 1.1 1.1 1.1 0.7 0 0 Greece Portugal Belgium Italy Germany Switzerland Ireland Spain Netherland Austria France UK Sweden Denmark Finland Norway Source: Jupiter Research Mobile Forecast (Western Europe), June 2008 © World Association of Newspapers 2008-2009 In Europe, mobile Internet users accounted for Scandinavian countries outperform others – 21 percent of overall online users. The overall with over 27 percent. Those which lag behind mobile Web users in Europe reached 45 the overall European average, which is 21 million in August 2007, and increased 4.8 percent, include Greece, Portugal, Belgium, percent to 47.2 million in November 2007, Italy, Germany, Switzerland and Ireland. according to Mobiento. According to Nielsen, in the second quarter According to Jupiter Research Mobile Forecast, of 2008, there were 34.3 million PC-based in 2013, Germany and France will lead in terms Internet users and 5.8 million mobile Web of the number of flat-rate monthly pay mobile users. The numbers went up to 35.3 million and Internet subscribers – each with 11.7 million 7.3 million in the third quarter, respectively. users, followed by the UK’s 11.4 million. Italy Mobile Internet has a relatively higher and Spain come next with 8.2 million and quarterly growth in terms of unique audience – eight million subscribers, respectively. 25 percent, compared to PC-based Internet, In terms of percentage of mobile population, which is only 3 percent. Mobile Internet and PC-based Internet Unique Audience and Growth, UK, Q2 vs. Q3, 2008 Unique Audience (million) Unique Audience % Growth 40 30 PC-based Internet Mobile Internet 35 25 34.3 35.3 25% 30 20 25 20 15 15 10 10 5 5 7.3 5.8 0 3% 0 Q2 Q3 Q2-Q3 Source: Nielsen © World Association of Newspapers 2008-2009 16
  17. 17. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES Mobile Content Consumption: France, Germany and the UK, May 2008 80 Any news or info via browser 32 11 57 Accessed Web search 18 iPhone 5 Smartphone 32 15 Market Watched mobile TV and/or video 7 42 Accessed a social networking site or blog 10 3 70 Listened to music on mobile phone 33 18 70 Used e-mail (work or personal) 26 8 % 0 10 20 30 40 50 60 70 80 90 Source: M:Metrics © World Association of Newspapers 2008-2009 Seventy percent of iPhone users listen to music or use e-mail on their phone, while 33 percent Global Desktop Web Sites and 26 percent of smartphone users do so. vs. Mobile Web Sites The overall market average is 18 percent and Desktop Web Sites 8 percent, respectively. 200 (to reach 850M computers) Numbers of Web Sites (million) Mobile Web Sites Mobile search, mobile social networking and (to reach 3.5B handsets) 150 mobile TV are relatively not that popular – 57 percent, 42 percent and 32 percent of iPhone users do so, versus 18 percent, 10 percent and 100 15 percent of smartphone users. The average market reach of these three activities are less 50 than 10 percent. 0 According to Whoop, the number of Internet 1995 2000 2005 2008 2009 2010 Web sites, emerging in the mid 1990s, grew to Source: Whoop © World Association of Newspapers 2008-2009 more than 150 million and reached 850 million computers between 2005 and 2008. Mobile Web will reach more than 150 million in number on sites, emerging in early 2000s, by comparison, a total of 3.5 billion handsets in 2010. U.S. Mobile Users who Accessed News and Information, Unique users Three-month Average Ending January 2008 (000s) and January 2009 % 70,000 120 60,000 107% 63,182 100 50,000 Jan-08 87% Jan-09 80 40,000 % Change 71% 36,870 60 30,000 40 20,000 22,369 19,283 10,000 20 10,821 10,312 0 0 Daily Weekly Ever in the month Source: comScore © World Association of Newspapers 2008-2009 17
  18. 18. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER In the United States, according to comScore, the mobile users who ever accessed news and Japanese Mobile Market information on a monthly basis were up from Statistics 36.8 million in January 2008 to 63.2 million in Highest Average Revenue Per User (ARPU) globally January 2009, with a 71 percent increase. 106 million mobile subscribers The growth is even higher in the heavy-used 9 out of 10 use mobile data services groups. Those who do so on a weekly basis 4 out of 5 on 3G increased from 10.3 million to 19.3 million, Messaging is almost free up 87 percent, while the daily users rose from 40% of mobile data users are on data flat rate plans 10.8 million to 22.4 million – a 107 percent Source: Infinita, Inc. and Telecom Carriers Association increase. © World Association of Newspapers 2008-2009 Japanese Mobile Market Japan is known as the most advanced mobile Key Mobile Operators in Japan market in the world, with more than 106 Carrier Total 3G million subscribers, the highest percentage of DoCoMo 53,628,700 45,199,900 3G users, the highest average revenue per user, KDDI 30,304,900 29,916,400 and the highest concentration of multimedia SoftBank 19,111,700 15,112,700 users. Nine out of 10 mobile users use data Total 103,045,300 90,229,000 services, while at least 80 percent are on a 3G Source: Telecom Carriers Association, June 2008 network. Messaging is almost free in Japan, © World Association of Newspapers 2008-2009 and at least four out of 10 data users are on data flat rate plans, according to Infitina, Inc. and Telecom Carriers Association. The three main operators, DoCoMo, KDDI, and Japanese Mobile Usage SoftBank, have over 103 million mobile (% of Respondents) subscribers, and over 90 million of these users enabled 100% Mobile Search are on 3G. usage 44% enabled 55% In addition, Japan boasts some of the most GPS usage 23% advanced mobile functionality used by its enabled 46% Mobile TV subscribers. Mobile phones in Japan are usage 36% routinely used for boarding passes for airlines enabled 73% Mobile NFC usage 18% and trains, student and employee Base: All Respondents, N= 3,178 (2008) identification, e-tickets and e-keys. A mobile Source: impress R&D, September 2008 can also serve as an electronic purse, which © World Association of Newspapers 2008-2009 users can use at restaurants or shops. The accessibility of purchase history can also frequency wireless communication technology combine with loyalty programmes and which enables the exchange of data between coupons, which allow marketers to send devices over a short distance, is enabled relevant and customised messages to among at least seven out of 10 handsets, individual users. The mobile Web also allows although only 18 percent use it. Mobile TV is users to socialise, make purchases, or get any available to about half of the respondents, information they are looking for immediately. while nearly four out of 10 use it. According to the survey conducted by impress R&D, many mobile functionalities have a fair reach in Japan, although it may still need some time for users to really adopt them. For example, all the Japanese respondents have access to mobile search, although only 44 percent actually use it. GPS on mobile is available among 55 percent of users, while only 23 percent use it. Mobile NFC , or Near Field Communication, a short-range high 18
  19. 19. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES 2. Mobile Marketing and Advertising Despite a downturn in overall advertising The growth of mobile advertising resembles spending, global mobile ad spending is on the the “hockey stick” growth pattern of Internet ascendancy, expected to grow in double digits advertising in the early 2000s. While it worldwide for the foreseeable future. represents less than 1 percent of all interactive Innovative newspaper companies are investing spending in most places globally in 2009, in the development of content and business mobile advertising spending is expected to models on the mobile channel, knowing that grow exponentially. the mobile Web will continue to grow and become more lucrative for the future. In the United States alone, mobile advertising spending will grow from US$648 million in 2008 to $3.33 billion in 2013, a 2009 study by eMarketer forecasts. Global mobile advertising U.S. Mobile Advertising Spending spending is and will continue to be dominated (Millions of dollars and percent change, by mobile text message advertising, dwarfing US$ million year over year) the next two most popular types of mobile 3,500 39.3% advertising, display and directory search 3,000 3,330 advertising, a 2008 study by eMarketer states. 2,500 69.5% 2,390 Global mobile text message advertising 2,000 spending will grow from $2.56 billion in 2007 1,500 41.7% to $14.17 billion in 2012, while mobile display 30.9% 1,410 advertising will grow from $53 million to $1.2 1,000 35.0% 17.3% 995 500 760 billion, and mobile search will expand from 648 $83 million to $3.77 billion in the same period, 0 2008 2009 2010 2011 2012 2013 according to eMarketer. Source: eMarketer, February 2009 © World Association of Newspapers 2008-2009 A number of factors are contributing to the 19
  20. 20. APRIL 2009 SHAPING THE FUTURE OF THE NEWSPAPER models for the mobile channel as part of Global Mobile Advertising newspaper companies’ mobile marketing Spending, by Format strategies. A variety of revenue-making (Millions of dollars, 2007-2012) campaigns have been launched, but remain a 2007 2008 2009 2010 2011 2012 small subset of the projected mobile Mobile message advertising spend for the foreseeable future. advertising* 2,560 4,200 6,440 9,260 11,960 14,173 Mobile display • Global mobile subscriptions by far surpass advertising** 52 142 338 629 945 1,203 broadband subscriptions. One-third of the Mobile search world’s population subscribes to a mobile advertising*** 83 244 597 1,290 2,345 3,773 Total 2,695 4,586 7,375 11,179 15,250 19,149 phone service, while only 3 percent to 4 Note: numbers may not add up to a total due to rounding. percent subscribe to broadband Internet. In * Spending on placement in text messages, includes direct spending some countries, particularly in the developing on message campaigns as well as spending on promotional coverage of end-user messaging costs. world, mobile is the primary digital media. ** Spending on display banners, links or icons placed on WAP, mobile HTML sites or embedded in mobile applications such as maps or entertainment services (eg games or video). A variety of agencies are riding the wave of *** Spending on sponsored display ads and text links that appear mobile advertising and marketing demand, alongside mobile search results, as well as spending on audio ads played to mobile phone callers making a directory inquiry. including some agencies that have strong ties Source: eMarketer, 2008 © World Association of Newspapers 2008-2009 to newspaper companies. These companies are offering a variety of services to help promote recent surge in mobile advertising growth, and newspaper company mobile services, and also the bullish projections for the next five years handle mobile advertising campaigns. include the wide distribution of smartphones, improving network capabilities and attractive MORE Mobile Marketing mobile subscription rates. Owned by: Telenor Group, Oslo • Smartphones and iPhones adoption is Founded: 2008 ratcheting up the access of multimedia Countries served: Nordics information. iPhone usage reportedly Marketing director: Anders Børde represents 30 times more data usage and 50 www.moremobilerelations.com times more search requests than other phones. • Unlimited mobile data plans increase in MORE Mobile Relations, a year-old amalgam popularity, which encourages more access to of four mobile marketing companies from each multimedia information. of the Nordic countries, provides services to assist clients in developing relationships with • Mobile technologies are developing more their customers using mobile marketing and multimedia, geography-targeting and advertising tactics. demography-targeting advertising units to reach consumers more precisely. Among MORE’s clients are newspaper companies, including Schibsted’s Verdans • Advertisers and agencies are increasingly Gang, and A-Pressen, a group of regional interested in the target-ability and acceptance Norwegian newspapers. MORE and A-Pressen of mobile advertising. are both owned by Telenor Group, one of the • Publishers are building sustainable business world’s largest telecoms. While the most Global Smartphone Sales and Market Share, by Vendor (In thousands of units, Q4 2007-2008) Company 4Q08 Sales Market Share4Q08 4Q07 Sales Market Share4Q07 4Q07-4Q08 Growth Nokia 15,561.7 40.8% 18,703.3 50.9% -16.8% RIM 7,442.6 19.5% 4,024.7 10.9% 84.9% Apple 4,079.4 10.7% 1,928.3 5.2% 111.6% HTC 1,631.7 4.3% 1,361.1 3.7% 19.9% Samsung 1,598.2 4.2% 671.5 1.8% 138.0% Others 7,829.7 20.5% 10,077.3 27.4% -22.3% Total 38,143.3 100% 36,766.1 100% 3.7% Source: Gartner Group, 2008 © World Association of Newspapers 2008-2009 20
  21. 21. VOLUME 8 REPORT N° 4 WINNING MOBILE STRATEGIES Scandinavian Consumer Study of Mobile Message Usefulness Medium Degree of perceived usefulness Receive special promotions from airlines 44 37 Norway on your mobile 37 Sweden Find more info on destination/hotel/attraction 47 48 Denmark on mobile Web sites 38 52 Receive discount coupons to your mobile 45 40 Search via mobile closest shop, restaurant, 50 55 pharmacy 58 Receive to your mobile 10 best offers 31 34 when entering a shopping mall 30 Download film content and cinema 42 33 programme to your mobile 39 %0 10 20 30 40 50 60 70 80 90 High Degree of perceived usefulness Receive alert from post office 80 83 on package delivery 71 Receive reminder alert for appointment 80 79 with dentist/doctor 72 Receive booking information 75 72 to your mobile 72 Receive alerts from community, school, 66 80 traffic authorities, etc on your mobile 64 %0 10 20 30 40 50 60 70 80 90 Source: More Mobile Marketing, 2008 © World Association of Newspapers 2008-2009 Scandinavian Consumer Study of Mobile Message Usefulness Advertising Channel Intrusiveness 60 TV 60 Norway 64 Sweden 31 Newspaper 11 Denmark 25 43 Radio 50 45 25 Cinema 15 22 42 Internet 34 49 19 Boards 5 8 62 DM (traditional mail) 40 47 55 Mobile messages without permission 82 60 20 Mobile messages with permission 20 20 % 0 10 20 30 40 50 60 70 80 90 Source: More Mobile Marketing, 2008 © World Association of Newspapers 2008-2009 obvious mobile strategy is to create a mobile message alerts for sports scores, weather, version of the newspaper, there are a variety of traffic, news, stock market on an opt-in basis, strategies to execute, said Marketing Director developing the mobile user database through Anders Børde, including building loyalty marketing events and giveaways, and more. strategies, a coupon business, sending out text (See Chapter 4 for Børde’s essay on the subject). 21

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