060611 omma l_gump_rr


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  • http://www.youtube.com/watch?v=Pgsw-NgDoFE Mobile web and apps are equally important
  • i) 1999 – Year of WAP in preparation for the great wireless ad revolution that was arriving (find info on founding of the Wireless Advertising Association?) (Sync-n-go services like AvantGo, 1997)ii) 2002 – Downloads change the wireless world, with Java and BREW as well as Palmiii) 2005 – Mobile web arrives on the scene with promise for adsiv) 2008 – Downloads hold great promise for the future, while mobile web seems “so 2006”v) 2011 – Mobile web returns to center stage with arrival of HTML5 and fragmentation of download marketplacevi) Hmmmm could 2014 bring a download resurgence?vii) Could 2017 bring mobile web to its rightful place in the world?
  • i) Those who think mobile web will eclipse apps(1) HTML5 will bring app-like functionality to the browser(2) Build once, serve many(3) Global in nature(4) (Like the interlinked nature of the web vs. the more balkanized nature of apps.)ii) Those who think apps will make browsing obsolete, bringing in a new paradigm(1) More powerful and tailored to device(2) Easier to personalize(3) Take advantage of native capabilitiesiii) Those who think a hybrid will emerge, such as “web apps”(1) Best of both worlds(2) Build mobile web that acts like an app(3) Build a client side app that uses HTML5(4) This is fine but still there will be a basic choice- download client-side software on the device, or not
  • So in answer to the question, which is more important, mobile web or downloads, the answer is…. For most major brands, both. A little like asking if you want your front wheel or rear wheel on a bicycle. You need both to ride, especially if you want a first rate media property
  • And the lesson for us is…i) Build a great mobile web site and treat it as the hubii) Build apps selectively based on resource availability and consumer needsiii) Give consumers choicesiv) Monetize in a way that is consumer friendly (more about that in section 3)
  • Both are happening in our industry at the same timei) Difference. At one point a few years ago, many assumed that mobile was completely different from online. For that matter, you generally had to go through a wireless carrier to get to a mobile web site or apps. Relatively few people accessed data on their phones; most people used it for voice calls; SMS penetration was growing rapidlyii) Convergence. Now, you can go directly to mobile web sites; apps are widely understood. You can build a mobile website on infrastructure that’s similar to that used for online. You can view video and images thanks to faster networks and better handsets.iii) Divergence. With the emergence of more powerful devices, it’s increasingly important to have products that are tailored for each device. We have sites for phones and sites for PCs. We have apps for phones and different apps for tablets. We have products for TVs that are great for that device but not for a PC.
  • (1) Personal-sized screen- large enough to great display, but small enough to be stashed away with you(2) Mobile(3) Immersive experience, from couch to airport
  • (1) Smaller screen(2) Mobile(3) Present with people almost always(4) Context matters(5) Snacking experience, from train to ballpark
  • (1) Where possible, make similar content available when it’s consumer friendly(2) Use shared infrastructure when possible(3) The term “TV” as we know it, changes in definition- now you can get video content on just about any device- TV Everywhere (example of HBO Go; Turner, etc.)(4) Branding conveys similar experience and messages
  • (1) While suing common infrastructure is desirable, keep in mind that the consumer experience on each platform can, and often should, be very distinct.(2) Each deserves its own experience- not only with display, but also in other selected respects, including content, personalization and functionality such as location. For example, building in major location aware capabilities in mobile devices;, tying into SMS/alerts capabilities, social integration, etc.(3) Mobile phones are as different from PCs as TV is from radio… and we’re only starting to discover many of the possibilities.
  • We’ve gotten past the question of whether mobile is really important, strategically, to media businesses. That question was largely put to bed by around 2009. However, we still have the open question as to whether mobile can generate enough revenue to matter.
  • i) Advertising (this will be the focus for today)ii) Per app fees (one time or recurring)iii) Aggregated offering, with per subscriber fees to content providers, i.e. the cable modeliv) Note: generally speaking, consumers will be reluctant to pay additional fees for the same product on a different platform. So you either need a different product, or should make the content paid only if standalone; otherwise bundle with a cross-platform subscription. So for most, if someone subscribes to a magazine, then they should get the digital subscription free of charge. There are some exceptions but this is the rule if one wants a broad audience. Note: check Time Warner to make sure we aren’t missing any major considerations with our properties here.
  • Compound Annual Growth Rate: 47.7% Growing faster than Mobile apps (19.2%) or Mobile TV and Video Revenue (23.4%)
  • Latin America: +2,217% North America: +381% EMEA: +494% Asia Pacific: +2,217%
  • i) Direct sales is an increasingly important option for publishers of mobile content, and for ad buyersii) Direct sales force allows team that best knows the brand to sell, and also to generate a cross-platform buy iii) Ad networks provide a valuable service to many who have limited sales networks. However for publishers who have dedicated sales efforts, the pool of dollars is now big enough to justify focus in this area
  • Be able to keep focus on serving consumers first… which generally leads to a conclusion that first-rate companies offer both mobile web and apps, in a mix that works best for them and their customers.
  • Get immunized to avoid either the “it’s all separate” or “it’s all the same thing” mentality; use discretion and again serve customers optimally
  • There is enough for many companies with many approached. Publishers should develop direct sales capabilities across platforms as a way to build a sustainable revenue trajectory that enables deeper investment in great products.
  • Thanks to all and we’re all privileged to be participating in the market at this time. We are part of one ecosystem that, with good stewards like many of us here, can be great for consumers and important for the growth of healthy businesses, from brand, to agency, to publisher, to service provider, and beyond.
  • 060611 omma l_gump_rr

    1. 1. Louis Gump Vice President - Mobile, CNN the Surface Beyond in Mobile A Pendulum, a Paradox and a Pie
    2. 2. Pendulum Paradox Pie
    3. 3. “ A Day in the Life,” Google, 2008
    4. 4. Industry timeline 1999 WAP 2002 Java, BREW, RIM, Symbian, MS, etc. 2005 WML, Ad promise 2008 Apple and Android arrival 2011 HTML5, Ad expansion 2014 ?? 2017 ?? MOBILE WEB 1996 Palm OS 2000 2005 2010 2015 APPS
    5. 5. We generally hear three basic predictions today: Mobile web will eclipse apps Apps will end browsing Web app hybrid will emerge
    6. 6. Which is more important? Mobile web Apps
    7. 7. Guidelines for most of us 1 ) Start with the consumer in mind 2 ) Build a mobile web site 3 ) Launch apps as appropriate 4 ) Monetize in a consumer-friendly way
    8. 8. Pendulum Paradox Pie
    9. 9. The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.” — F. SCOTT FITZGERALD “
    10. 10. Convergence The act of converging and especially moving toward union or uniformity. Divergence A drawing apart (as of the lines extending from a common center.)
    11. 11. Convergence Direct access to enhanced mobile web sites with faster networks and better handsets Divergence Emergence of individually powerful devices requires products tailored for each one * BOTH ARE HAPPENING IN OUR INDUSTRY AT THE SAME TIME
    12. 12. First-rate content companies will build first for the consumer, and second for efficiency, with appropriate balance.
    13. 13. Devices Large screen Fixed location TVs
    14. 14. Devices Medium screen Often fixed location PCs
    15. 15. Devices Personal-sized screen Mobile, immersive Tablets
    16. 16. Devices Smaller screen Mobile, snacking Phones
    17. 17. Devices Game consoles Refrigerators Others
    18. 18. Content companies need to think about consistent user experience across platforms. IMPLICATIONS
    19. 19. Similar content Shared infrastructure Cross-branding TV Everywhere
    20. 20. Content companies need to think about consistent user experience across platforms. IMPLICATIONS
    21. 21. Content companies should have a clear idea of differences for each platform. IMPLICATIONS
    22. 22. Start with the assumption that each major platform is different and then work backward into the similarities .
    23. 23. Pendulum Paradox Pie
    24. 25. Already 7 percent of major advertisers plan to spend more than $1 million on mobile advertising in 2008. Thirteen percent will spend more than $100,000.” “ 2008 2010 7% 13% 15% 31% WILL SPEND > $1M $100 - $250 K
    25. 26. Mobile can be used to reach core consumers across platforms for advertisers just as content publishers are engaging consumers across the same platforms.
    26. 27. So how big can mobile be, financially?
    27. 28. 2008 Revenue potential
    28. 29. 2011 Revenue potential
    29. 30. 2014 Revenue potential
    30. 31. Monetizing models 1 ) Advertising 2 ) Per app fees 3 ) Per subscriber fee (cable)
    31. 32. Monetizing models 1 ) Advertising 2 ) Per app fees 3 ) Per subscriber fee (cable)
    32. 33. 2008 Global Mobile Advertising 2009 2010 2011 2012 2013 CAGR 47.7% INFORMA MOBILE CONTENT & SERVICES REPORT 2009
    33. 34. Latin America North America Europe, Middle East, Africa Asia Pacific Mobile Internet Ad Revenues INFORMA, PRICEWATERHOUSE COOPERS
    34. 35. Ad sales channels Direct sales Ad networks
    35. 36. Mobile can be used to reach core consumers across platforms for advertisers just as content publishers are engaging consumers across the same platforms. WORTH REPEATING
    36. 37. Pendulum Serve customers first using an optimal mix of apps and mobile web.
    37. 38. Paradox Avoid the ‘It’s all separate’ or ‘It’s all the same thing’ mentality.
    38. 39. Pie There is enough for many companies with many approaches.
    39. 40. Questions ? Thank you .