Mobile Advertising IAB

Mobile Advertising as seen by ‘The Analyst’ March 16, 2009 Julien Theys Monday, March 16, 2009

We cover Media • Cinema • Video • TV • Games • Broadband • ... and Mobile Monday, March 16, 2009

‘The Analyst’ Monday, March 16, 2009

You already know this Monday, March 16, 2009

You already know this More mobiles than PCs Personal Always-on Targeted / Relevant Location-aware One day it will get bigger than online (the Google guy said so) Mobile advertising is amazing Monday, March 16, 2009

But it’s one big mess... Monday, March 16, 2009

Monday, March 16, 2009

Push Please Banners Editorial Alerts Games Video Online Print MMS call me Monday, March 16, 2009

Mobile Media Advertising Monday, March 16, 2009

Mobile Media Advertising Mobile Monday, March 16, 2009

Mobile Media Advertising Mobile Content Premium Monday, March 16, 2009

Mobile Media Advertising Mobile Content Advertising Premium Display Search Monday, March 16, 2009

Mobile Media Advertising Mobile Content Advertising Ad-supported Premium Display Search content Monday, March 16, 2009

Ad-supported content Worldwide Mobile Media Advertising Market (€m) 2,000 1,500 1,000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Monday, March 16, 2009

Ad-supported content European Mobile Media Advertising Market (€m) 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 TV VoD Monday, March 16, 2009

Mobile TV advertising 81% of Europe’s mobile content advertising market by 2012 Metrics needed Spectrum Competing standards DVB-T chipsets Mobile TV in search for a revenue model Monday, March 16, 2009

Worldwide Mobile TV Market (€m) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Subscription Revenue Ad Market Monday, March 16, 2009

One drop in the ocean 2012 European TV advertising market 1% TV advertising Mobile TV advertising 99% Monday, March 16, 2009

Games & apps Monday, March 16, 2009

Games & apps Games enjoy a longer life Monday, March 16, 2009

Games & apps Games enjoy a longer life Advertising remains a marginal revenue stream Monday, March 16, 2009

Games & apps Games enjoy a longer life Advertising remains a marginal revenue stream Higher engagement with paid apps Monday, March 16, 2009

Games & apps Games enjoy a longer life Advertising remains a marginal revenue stream Higher engagement with paid apps Too few sessions, too low CPMs Assuming the volume of ads is tolerable Monday, March 16, 2009

Games & apps Games enjoy a longer life Advertising remains a marginal revenue stream Higher engagement with paid apps Too few sessions, too low CPMs Assuming the volume of ads is tolerable But some apps are the ad No direct revenue Monday, March 16, 2009

And the operator ? Monday, March 16, 2009

Towards a ‘Smart pipe’ ? Monday, March 16, 2009

Towards a ‘Smart pipe’ ? Brands Media buyers Sales Serving Operators Monday, March 16, 2009

Towards a ‘Smart pipe’ ? Brands Media buyers Sales Serving Operators Trust Monday, March 16, 2009

Towards a ‘Smart pipe’ ? Brands Media buyers Sales Serving Operators Trust Customer data Monday, March 16, 2009

Towards a ‘Smart pipe’ ? Brands Media buyers Sales Serving Operators Trust Customer data Core competencies Monday, March 16, 2009

Towards a ‘Smart pipe’ ? Brands Media buyers Sales Serving Operators Trust Customer data Core competencies A media company or an access provider? Monday, March 16, 2009

Opportunities in targeting Monday, March 16, 2009

Opportunities in targeting Proﬁle Proﬁle Basic Context Behavioral Dynamic (submitted) (inferred) Monday, March 16, 2009

Opportunities in targeting Proﬁle Proﬁle Basic Context Behavioral Dynamic (submitted) (inferred) Given Monday, March 16, 2009

Opportunities in targeting Proﬁle Proﬁle Basic Context Behavioral Dynamic (submitted) (inferred) Given OK Monday, March 16, 2009

Opportunities in targeting Proﬁle Proﬁle Basic Context Behavioral Dynamic (submitted) (inferred) Given OK Delicate Monday, March 16, 2009

Opportunities in targeting Proﬁle Proﬁle Basic Context Behavioral Dynamic (submitted) (inferred) Given OK Delicate Being the ideal candidate on the technical front doesn’t mean it will be tolerated Monday, March 16, 2009

Entering a platform play And yet the mobile OS is not the cash cow Monday, March 16, 2009

There is no such thing * or every phone is a Google phone as a Google phone Monday, March 16, 2009

Worldwide Quarterly Smartphone shipments by OS (m) 50 40 30 20 10 0 02Q2 02Q4 03Q2 03Q4 04Q2 04Q4 05Q2 05Q4 06Q2 06Q4 07Q2 07Q4 08Q2 08Q4 Symbian Windows Mobile Blackberry Mac OSX iPhone Palm Android Other Linux' Monday, March 16, 2009

Experience matters Monday, March 16, 2009

Experience matters iTunes: days to 200m downloads Videos Songs iPhone Apps 0 200 400 600 800 1000 1200 Monday, March 16, 2009

The end of a funding cycle Monday, March 16, 2009

Mobile VC funding deals 90 80 70 60 50 40 30 20 10 0 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Advertising Total funding deals Monday, March 16, 2009

Mobile VC funding volume (€m) 700 600 500 400 300 200 100 0 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Advertising Total funding volume Monday, March 16, 2009

Mobile M&A deals 50 40 30 20 10 0 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Advertising Total M&A deals Monday, March 16, 2009

Over-hyped concepts will be hit the hardest Monday, March 16, 2009

Over-hyped concepts will be hit the hardest Low barriers to entry User-generated content Location-based services Monday, March 16, 2009

Over-hyped concepts will be hit the hardest Low barriers to entry User-generated content Location-based services Failure to replicate App stores Monday, March 16, 2009

Over-hyped concepts will be hit the hardest Low barriers to entry User-generated content Location-based services Failure to replicate App stores Lack of IP Mobile social networks Monday, March 16, 2009

Clash of the titans Monday, March 16, 2009

Clash of the titans Hardware Danger Nokia OS Android Windows Symbian Search Google OneSearch Live Search AOL Ad unit Mail, maps, Services Mail, maps MSN AOL OVI YouTube Monday, March 16, 2009

Vying for search Monday, March 16, 2009

Vying for search US search deals Operator Search Provider Subscribers (m) 84 77 49 33 Monday, March 16, 2009

Forward-looking trends Monday, March 16, 2009

Forward-looking trends Emerging markets to lead the way Culture Regulation Primary connection Monday, March 16, 2009

Forward-looking trends Emerging markets to lead the way Culture Regulation Primary connection The social network becomes the address book Monday, March 16, 2009

Forward-looking trends Emerging markets to lead the way Culture Regulation Primary connection The social network becomes the address book Search becomes real time Monday, March 16, 2009

Forward-looking trends Emerging markets to lead the way Culture Regulation Primary connection The social network becomes the address book Search becomes real time Operators monetise market research Monday, March 16, 2009

Please contact me Thanks julien.theys@screendigest.com www.screendigest.com Monday, March 16, 2009

Mobile Advertising IAB

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