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Mobile Landscape Challenges
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Mobile Landscape Challenges Mobile Landscape Challenges Presentation Transcript

  • Mobile Landscape: Challenges Atul Satija VP & MD, Asia-Pacific9/27/11 1
  • We’re a Mobile Ad Network London       Seoul   Berlin   Chicago   Paris   Shanghai   San  Francisco       New  York   Mumbai   Tokyo       Bangalore       Nairobi   Singapore   Johannesburg       Sydney   •  47 Billion Impressions per month •  314 Million Monthly Unique Users •  Mobile Dedicated •  350 Employees •  12,000+ Partners •  165 countries; 15 Offices; 12 Countries
  • Rapid Global Growth
  • Mobile dwarfs every mediumGLOBALLY480 mn newspapers1.0 bn active PCs1.6 bn TV sets4.2 bn mobile phones Source:  Gartner,  IDC,  BSN   Source:  KPCB  2011   9/27/11 5
  • Impact of the medium SPEED REACH CAPABILITY Grown faster than print, TV and radio > 70% penetration in India Smartest advertising medium •  Most personal •  Always on •  Most interactive •  CPU, Touchscreen, Sensors, GPS, NFC…9/27/11 6
  • 1. Mobile Ecosystem 2. Mobile Advertising 3. The Future9/27/11 7
  • 1. Mobile Ecosystem 2. Mobile Advertising 3. The Future9/27/11 8
  • Challenges in Mobile Ecosystem1 Connectivity2 Devices3 Content/Apps4 Payments 9/27/11 9
  • Challenges in Mobile Ecosystem1 Connectivity2 Devices3 Content/Apps4 Payments 9/27/11 10
  • Many operators, many licenses Source:  Telecomtalk.info  9/27/11 11
  • Many promises Source:  RespecJve  Brands.  Copyright:  Owned  by  respecJve  brands  9/27/11 12
  • The reality isService rollouts have been delayed Coverage is spotty within a circle Can  you   hear  me   now?   Hello?  Data speeds are slow Data plans are still unaffordable 1.10   0.93   0.87   Average 3G speed in Mbps 0.27   0.20   Most data plans are more than Rs. 600 pm Airtel   Vodafone   Reliance   BSNL   MTNL  Source:  CIOL,  based  on  test  done  in  Gurgaon  region   Source:  3Gsimplified.com  9/27/11 13
  • Affordability of data plans in India 1%   3%   10%   15%   42%   43%   59%   60%   76%   Russia   India   Brazil   China   Italy   Germany   UK   Spain   US   Prepaid   Postpaid   Source:  AC  Nielsen   Most Indian consumers cannot afford expensive data plans…9/27/11 14
  • Wide gaps in coverage %  of  customers  covered  under  3G  license   %  of  3G  market  share   100%   100%   100%   90%   77%   67%   65%   60%   49%   48%   10%   3%   3%   6%   4%   3%   0.2%   2%   BSNL   S  Tel   MTNL   Aircel   Idea   Airtel   Vodafone   Reliance   Tata   Teleservices   Source:  Telcoma  9/27/11 15
  • Challenges in Mobile Ecosystem1 Connectivity2 Devices3 Content/Apps4 Payments 9/27/11 16
  • Factors driving mobile purchase Price is top ranked purchase driver in all countries Source: The Nielsen Company Source:  AC  Nielsen  Purchase Drivers Prepaid/Postpaid among youth is comparable to general population rice was the most common consideration Consumers in Indian selecting a mobile phone for young are extremely price sensitive for mobile devices … eople, though that is true among ther age groups, too. Adult s in these 9/27/11 17ountries rated price the most importantonsideration, too. Youth aged 15 to 24 ut price as the first purchase driver, withhe exception of Russian youth, 21 percent
  • Price of mobile devices in India Price  in  Rs  ‘000  49% of mobile phones in retail    <4.5   4.5  -­‐  15        >15  stores cost more than $100 30%   19%   33%   51%   16%   14%   8%   8%   9%   6%   5%   2%   0  -­‐  1   1  -­‐  2   2  -­‐  4.5   4.5  -­‐  7.5   7.5  -­‐  10   10  -­‐  15   15  -­‐  20   20  -­‐  25   25-­‐  40   Price  in  Rs  ‘000   Source:  fonearea.com  9/27/11 18
  • Smartphone penetration as a % of phones 63%   45%   40%   36%   29%   30%   22%   14%   9%   India   Sub-­‐Sahara   South  East   China   Brazil   Russia   US   UK   Germany   Africa   Asia   Source:  GFK  Retail,  AC  Nielsen  India’s smartphone penetration rates are lower than Sub-Sahara Africa9/27/11 19
  • India’s mobile landscape – closer look9/27/11 20 Source:  InMobi  Ad  Network  
  • Challenges in Mobile Ecosystem1 Connectivity2 Devices3 Content/Apps4 Payments 9/27/11 21
  • Cost of app development is highOPERATING  SYSTEMS  DEVICE  TYPE   UPGRADS   Hardware   OS  9/27/11 22
  • Applications - the problem of many Can the mobile web standardize experience and increase content consumption9/27/11 23
  • Content / app innovation Presence and not innovation is the focus9/27/11 24
  • Challenges in Mobile Ecosystem1 Connectivity2 Devices3 Content/Apps4 Payments 9/27/11 25
  • Remote mobile payments by region Figures  in  $mn  $350,000     Africa  &  Middle  East   Rest  of  APAC   Indian  Sub  ConJnent   Far  East  &  China  $300,000     Eastern  Europe   Western  Europe   South  America   North  America   $250,000     $8,149     $6,605     $200,000     $4,845     $150,000     $3,457     $2,359     $100,000     $50,000     $28,297     $54,047     $71,741     $0     $89,333     $108,282     2010   2011   2012   2013   2014   Remote  mobile  payments  includes  purchase  of  virtual  &   physical  goods,  and  cash  &  credit  transfers   Source:  Juniper  Research  9/27/11 26
  • Credit card penetration in India Source:  Visa  9/27/11 27
  • Direct operator billing•  Integration a major challenge –  Dominant strategy for non-voice revenue still missing •  Only 11% of revenue is non-voice –  Integration cycles are very long •  It may take months for the most persistent merchants•  Low payout for the merchant –  Paypal (92%) –  Credit card/online (85% - 86%) –  Direct operator billing (10% - 40%)•  Negative impact on mobile ecosystem –  Merchants wary of adoption9/27/11 28
  • 1. Mobile Ecosystem 2. Mobile Advertising 3. The Future9/27/11 29
  • Evolution of mobile phones 2. Screens INTERACT   3. Touchscreen Have  grown  from  1”     Now  even  feature   to  4.3”  and  beyond   phones  have  them   VIEW   IMMERSE   1. Horsepower 4. Sensors Commercial  PCs  broke  the   Accelerometers   1Ghz  barrier  in  1999  9/27/11 30
  • Evolution of mobile advertising Banner  ads   Rich  media   SMS  ads   Rich  media   Text   News   Games  &   2 Data   3 MulJmedia   Movies   Immersive     3D   1 Voice   4 Touchscreen   &  Sensors   Ads Content9/27/11 Technology 31
  • Making mobile advertising work Device   Content  &  Apps   AdverJsers   Consumers   CREATIVE   IDEAS   PEOPLE   TOOLS  9/27/11 32
  • Content-Ad Gap Content Advertisement Read   Read   þ   Listen   Listen   þ   View   View   þ   Interact   Read  &  View   ý  9/27/11 33
  • Platform-Tool Gap Horsepower Screens Tools  to  create  and   ideas  to  exploit  the   Touchscreen plaiorm  capabiliJes   Sensors ý9/27/11 34
  • 1. Mobile Ecosystem 2. Mobile Advertising 3. The Future9/27/11 35
  • 1 INDIA: Mobile internet > desktop internet •  In terms of users within 12 mths and in usage within 24 months •  One of the first countries globally to get there 9/27/11 36
  • 2 INDIA: Top 3 largest Android+iOS market globally within 24 months 9/27/11 37
  • 3 INDIA: iOS+Android mobile internet usage > all other devices’ usage put together within 24 months •  Price points dropping into volume bracket •  Higher usage per device 9/27/11 38
  • 4 INDIA: First $1B rev company to come from mobile internet, not desktop •  Any guesses? 9/27/11 39
  • Q&A !