24MAS - Corporate Broschure


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Our corporate brochure contains an overview of the mobile advertising market and discusses the benefits of partnering with 24MAS for all mobile advertising needs.

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24MAS - Corporate Broschure

  1. 1. Mobile AdvertisingThe 7th global mass medium24MAS is a mobile advertising and applicationspowerhouse specializing in fully-managedmobile marketing services.
  2. 2. Ad-wrapping technology is the future of mobile advertising 24 Mobile Advertising Solutions AB Mobile marketing is fast becoming the most in uential medium in digital commerce and 24MAS is taking full advantage of the vast opportunities in this space. We enable our partners to reach and engage consumers wherever they are through our mobile advertising, mobile publishing and application hosting capabilities. Capitalizing on mobile’s increasing in uence, we are in a prime position to cater to the growing demand for monetizing subscriber in uence and opening up new revenue streams. Our strong presence in emerging markets across the globe allows us to work with leading industry players to give them superior potential for growth. 24MAS is headquartered in Stockholm, Sweden, with operation centres in Singapore and Kuala Lumpur; as well as with representation o ces in London and Helsinki. Business in generalThere are now more mobile phones The number of reachable individuals rises Mobile advertising addresses all these needs.in the world than televisions and every day and business analysts are predicting Ad-enabling mobile content allows forcomputers combined and there are even faster growth for mobile advertising. greater success in generating additional andmore mobile Internet users than Even more compelling is that mobile marketing predictable revenue streams. Whether youPC users. As reported by Mobile is achieving greater ROI than both online and are an operator, media outlet, brand ownerMarketing Watch in March 2010, other digital media. We work with the whole or developer, 24MAS provides the solution toglobal investor interest in digital ecosystem of mobile advertising and application fuss-free mobile-enabled resources throughmedia has surpassed printed media distribution from various forms of reach, our optimized value chain. In the same way,for the rst time in history. 24MAS interactive ways to engagement and a long we o er a one-stop-shop app store hostingo ers a turn-key solution to reach, term model for retaining advertising initiatives. solution to ensure business continuity andengage and achieve high conversion This is possible via a comprehensive technical management of application portals.rates through a customizable mobile platform, large application portfolio, variouspresence. advertising formats and a strong presence for Our decade-long history gives our partners advertising reach and application distribution the added assurance of our proven expertise via global publishers. in the industry, which along with our current expansion paves the way for us to outperform Given the impact mobile has made, traditional the competitors in the mobile marketing media companies and brand owners are landscape. Being a liability-free company looking for their own mobile distribution with healthy cash ow, seasoned management channels to market their proprietary content. team, well-suited products for the mobile Similarly, developers are seeking better ways economy, and advanced technology are the to monetize their apps without compromising key qualities behind 24MAS’s positive quality. Operators, as always, welcome new business outlook. We are focused on the Asia partnerships that can raise their ARPU while Paci c and Latin American regions where the enhancing value for subscribers. products are spot on for the market needs. 1
  3. 3. 1. Mobile Advertising 3 Synergetic businessAfter surveying the mobile advertising business models prevalent in theindustry, 24MAS management graded each of these based on a frame-work focused on identifying the ones best suited to the scalable and units of 24MAS:aggressive growth in multiple markets. The result is our optimized valuechain that o ers the best revenue advantage for all its members.24MAS goes beyond serving impressions. This means our proprietary andscalable platform is designed to o er a more rewarding approach to 1. Mobile advertisingmonetizing mobile assets. We give operators, brand marketers, develop-ers and content owners a new media channel to reach their target 2. Mobile publishingaudience. Our complete range of service o erings include mobilecampaign management, ad-funded application store solutions, real-time 3. Managed Servicesanalytics tools, developer SDK, and user targeting capabilities, all of whichare applicable to all smartphone platforms. (Hosting)As owners of the ad space and user base, the value of operators in mobileadvertising cannot be overstated. With this in mind, we provide ourpartner operators the opportunity to extend their relationship withsubscribers by o ering advertising-enabled games and applications tomaximize engagement and generate new revenue streams. This alsobecomes an additional revenue stream to bolster decreasing returns fromthe traditional voice, data and SMS. On a larger scale, we can buildoperator-branded application stores to provide end-users a centralizedlocation from which to download games and apps.One recent study found that parents with young children are more recep-tive to mobile advertising. To fully bene t from this kind of information, itis important to understand end-user response to the campaign. 24MASprovides an online measurement system that presents a clear reportingand analytics tool to gather data on all critical parameters. We havedesigned this tool for quick and easy management of tasks such asrevenue sharing, campaign status, results and technical speci cationsmonitoring and reviewing usage patterns.Any successful marketing campaign must be able to reach consumerswherever they are and mobile is the one platform that can guarantee this.Initially, brand marketers were slow to react in relation to bringing theircampaigns to the mobile space. However, times have changed since asevidenced in a report published by Juniper Research. The companypredicts that ad spending for mobile games will reach $900 million by2015. It may soon be that what we now wide consider as ‘the third screen’of advertising will become ‘ rst’. Applications Reach, Targeting and Ease of Use Advertiser Distribution Awareness, Mobile Operators, Engagement and Media and Sales Online partners Consumer Improved experience and value for free Con g su in lt i n g System Integration HostOur mobile advertising ecosystem24MASs ecosystem puts the technology, content, and advertisers all inplace from the very beginning to speed up the time it takes for mobileadvertising to go live and establish itself as a new pro t centre. 2
  4. 4. Key gures that 2. Mobile Publishingunderscore growth Mobile content uptake continues to soar globally fuelled by the introduction of new smart devices that enhance the end-user experience. 24MAS’spotential in mobile mobile publishing service is a one-stop-shop solution that o ers a seamless means to create, publish, manage and monetize. This is made possible byadvertising our scalable cross-platform mobile architecture where high quality digital content reaches the widest audience. We have partnered with media companies, content owners, app developers and game studios to license content for an extensive application inventory covering the most popular categories. Through our developers program, we serve games and apps with the highest paid ads on the market to give5 Billion mobile subscribers developers better revenue opportunities and have made integration simpler through our proprietary SDK.2x as many TV sets Meanwhile, application stores have positively reduced the amount of time it takes for games and apps to reach user distribution channels. With our customizable application store solutions, we can re-brand a fully-managed app portal for any purpose, audience, operator, or advertising campaign.3x as many Internet users This product eliminates the taxing process of setting up the architecture, technology and mobile commerce transaction system. Through our subsidiary hosting services company 24 Solutions, we ensure consistent4x the number of PCs and continuous service from initial set up to back-end management. Another valuable way we enable clients to take advantage of the interest in31% of music dollars spent on mobile is through mobile websites. Currently, there are more mobile phones than PCs and it is vital to integrate existing online assets into thismobile music platform. 24MAS can deliver fast set-up of all types of mobile web solutions that adapts branding and corporate identities into the mobile world. A mobile website captures the best of the Internet with multi-functional20% of video gaming software is capabilities of both feature and smartphones.on mobile 3. Managed Services (Hosting) Accessibility, security and cost are signi cant factors in the success of mobile advertising and mobile publishing ventures. Powered by 24 Solutions, our hosting business unit, we o er best in class application hosting and data storage services that ensure stability amidst ever changing demands and needs of every client. Our vast expertise and market insight in this area enable us to achieve optimum data protection, interoperability between storage functions, and sound management of user data and inventory. We carry out continuous system management and monitoring for our application store hosting service, data storage and protection and handling of customers’ information and large data volumes. Mission- critical information is made easily accessible while ensuring that the storage and distribution processes comply with rigid security standards. Our mobile hosting unit is looking at steady revenue growth for the coming years as business becomes more predictable and achieves further sustainable growth curves for 2011 and beyond. 3
  5. 5. Optimized value chain position24MAS’s biggest competitive edge is the company’s wide reach in emergingmarkets across the globe. Our objective is to o er our partners fullymanaged Mobile Advertising and Mobile Publishing solutions withcomprehensive Mobile Hosting solutions founded on the industry’s bestpractices and an experienced management team.We can leverage on opportunities to accelerate revenue generation froman expanding subscriber base while guaranteeing the most value for eachuser experience. 24MAS is well-established to surpass its competitors withour extended o ering. While most of our competitors lack capabilities inthe hosting solutions area of the business, we can boost our advancedmobile advertising and publishing products with hosting solutions toincrease our competitive margin.Our technology is designed to maximizeROI and avoid spamOne of the key design points for 24MAS’s end-user experience is that thesubscribers decide what to look at, when and where. We designed oursolutions to avoid spamming. This is an equally important matter for advertiserswhere branding is everything. They will not invest in any media that has abad and intrusive reputation that will re ect negatively on their brands. Toaddress this concern, we have ensured that the pro les of users who usedi erent applications and download content match the business objectivesin the media briefs. This ensures targeted ads and maximized ROI (return oninvestment) and, more importantly, subscribers get what they want. Ourresearch con rms this as the most acceptable way to market on mobile and,therefore, points to the mobile advertising as the most scalable medium. Mobile advertising on games is estimated to reach $900m by 2015 Source: Juniper Research (January 2011) 4
  6. 6. Geographic markets24MAS’s marketing strategy is to establish industry leadership ingeographic regions characterized by four criteria: Large population Excellent infrastructure in place or underway Continued regional growth expected Market dominated by a small number of (two to three) large operators Markets of strategic importance for mobile advertising as stated by the media industryMarkets that match the above criteria are primarily the Asia-Pac c(APAC) and Latin American (Lat Am) regions.Many subscribers in APAC use their handset instead of a computer. Fixedbroadband connectivity is sparse and mobile networks are expanding.Also, the handset has become the most common way to access e-mailand the Internet in this region.Meanwhile, in India, the handset is replacing not only the PC but alsoradios. By using the most popular mobile application in the country, thesubscriber calls a radio station and listens to the broadcast throughloudspeakers hooked up to the mobile telephone.The 24MAS group o ers turn-key solutionsThanks to established partnerships with application developers and media houses, the 24MAS group can o er completesolutions for operators and media companies, as well as on the other side of the equation for the application developersand content owners. This means that technology, content and advertisers will be in place from the start. This minimizesthe time for the operators to establish mobile advertising as a new pro t center. By o ering the reach of mobile subscrib-ers of multiple mobile operators to the application developers and content owners they can bene t by accessing massmarket volumes with targeted advertising. Traditionally it has been very di cult for them to get access to many operatorchannels. 24MAS can provide them a faster access to reach mobile subscribers in multiple territories. 5
  7. 7. MARKET VIEWS OF MOBILE ADVERTISINGLike the Internet ten years agoToday’s market for mobile applications shows similarities to the Internetmarket ten years ago. Development is basically driven by technology Mobile applicationsadvancements. Handsets are getting cheaper yet more powerful and datatransmission rates continue to increase. The current 5 billion active mobile investments estimatedsubscriptions present enormous potential for new markets. to be $25B by 2014People turn to their handsets for a growing number of practical as well as According to Juniper Research,recreational services. Therefore, the importance of the mobile devices as a 15 February 2010channel for consumer communication is becoming more and more funda-mental to any business.Fee or for free?Mobile applications can easily be downloaded from the Internet directly intothe handset. Consumers in the western world, however, prefer to view adver-tising in exchange for free mobile content services.The combination of a growing demand but a reluctance to pay for contentservices among consumers creates welcome opportunities for advertisingfunded applications, games etc. Through this model, consumers are given thechoice whether to pay for the service or to access it free with advertising. 6
  8. 8. TrendsToday, any commercial message Operators see increasing network tra cposted on the Internet can be Mobile operators are looking positively at the anticipated increase indelivered to any mobile device. tra c volumes due to mobile advertising’s rapid growth. At the same time, this development is dependent on the availability of applicationsThe demand for and technical platforms required to combine the commercial messagesmobile with content, such as practical services, games, movies, music or interac- tive information.advertisingspace is growing! Going from minutes to xed rates Whereas they previously charged by mere call minutes, most mobile operators today o er xed-priced subscriptions that include both voice and data services. This varies regionally depending on the available infrastructure and related billing systems. GDP is also a relevant factor for each of these territories. This gives 24MAS an opportunity to o er di erent advertising funded services in di erent countries. Advertisers want to target speci c consumer pro les Advertisers often look for ways to concentrate campaign resources on strategic target groups and welcome the opportunity to maximize opera- tors’ subscriber knowledge. Previous mobile advertising campaigns, limited to a broadly distributed text message, now consist of a full-screen, individually designed ad sent only to subscribers matching a predeter- mined pro le. Hence, the biggest advantage of mobile advertising is the option of targeting. By targeting consumers, end-users can receive relevant adver- tisements directed to them personally. Advertisers can choose to target a speci c demographic group deciding on sex, age and location or even other targeting options such as positioning. Positioning is a revolutionary approach to marketing and advertising wherein relevant advertisements are given an entirely di erent meaning. Mobile advertising grows despite the economic downturn Advertising revenue has always closely followed economic trends. The economic slowdown has been and will be challenging for the advertising industry as a whole but new avenues like Internet and mobile platforms are more dynamic. We have seen a market allocation shift from traditional formats to digital; the economic downturn has indeed a ected mobile advertising but not in a negative way. Because advertisers have less money to invest, they are more interested in smaller sized campaigns. This has driven them to try out this new format which allows them to target speci c audiences far more e ectively than traditional media methods. Although there has been talk about this new format being expensive in a CPM/cost-per-thousand point-of-view, user targeting that allows adver- tisers to reach their speci c audiences still equates to cheaper campaign and more measurable results overall. 7
  9. 9. COMPETITIVE ADVANTAGES OF 24MASTop 10 reasons why 24MAS will perform well in the market in the future: 1 Mobile is the largest media channel in sion rates on mobile advertising are superior to online adver- tising. This is the reason why 24MAS can succeed in mobile EMERGING MARKETS advertising; the company has the clear advantage of having strong relationships with mobile operators, which gives24MAS is focusing on the Emerging Markets strategy. The advertisers even better results.company has a clear management focus to conquer theAsia Paci c region and Latin America. These regions arerecognized to be of high interest to advertisers due to the 4large population per country. If you look at the Emerging BIGGER BUDGETS allocated to MobileMarkets in general, it is highly evident how the mobile Advertising channeldevice is the most important communication tool. Many ofthe Emerging Markets do not have su cient infrastructure From traditional digital advertising budgeting point of view,for the xed line telephone systems or Internet so the the proportional winner is clearly mobile advertising. Evenmobile phone is the sole device people use to access the though the popularity of new media channels in general areInternet. still on the rise compared to more traditional media channels, mobile is already taking a lion’s share of budget allocations. 2 Growth in VOLUME of ad impressions And even though overall investments in terms of hard cash are still much lower than online, the percentage of growth forAAd impressions served by the largest advertising digital media budgets gives mobile advertising a verynetworks in the mobile sector have been mind blowing: positive short-term and long-term outlook for the future.billions of ad impressions per month. These numbers show Bigger budgets mean that consumer reach becomes eventhat there is big business in mobile advertising. Logically more important. This is, again, where 24MAS can demon-speaking, this is only natural since most of the consumers strate its strong position in the value chain.advertisers are targeting have mobile phones. There aremore mobile phones than TV sets, computers, otherdevices or access points put together to reach the largest 5 WELL MANAGED COMPANIES in thepossible amount of eye balls. sector with proper experience and visionThe technology 24MAS has gives leverage to both advertis-ers looking to reach more eye balls and mobile operators Due to rapid development in the mobile sector from the pastlooking at nding new revenue streams. decade, there are lots of companies that rose sky-high only to plummet in their subsequent business models, market entries, management choices and product o ering. Many companies that have survived the past year’s telecom indus- 3 Mobile Advertising is delivering try recession are on their way to a thriving future. Since the RESULTS telecoms industry has always been a world of fast-changing technology and related business models, there areSince the early stages of mobile marketing, which was enormously high levels of experience and managementmainly project-driven business for the service providers, it skills in well-performing companies. If we look at thewas obvious to everyone how data and reporting on the traditional advertising industry, it has not been as lively andmobile channel was very good and accurate. After moving technology developments have been somewhat lesson to a proper scalable advertising stage, the campaign advanced. Combining the talent in mobile technology withrelated statistics and gures are more outstanding than any the user reach capabilities of the mobile operators and digitalother media channel. The click-through rates and conver- advertising outlook with the advertisers’ vision to reach 8
  10. 10. mobile phone users with targeted advertising—it all looks how the mobile content business is presented, priced, format-very exciting. ted and delivered to the mass market. This probably is one of the main changes in the mobile business since the initial formsThe management of 24MAS has seen the early stages of of the walled-garden style operator portals were launchedcontent download services in the 1990s, the past ten years some years ago. This change has generated a lot of awarenessin the hosting business, the dawn of new media, and, and interest to mobile phone users who have never down- nally, the growth of the mobile advertising and applica- loaded anytions economy. Lessons from the past and visions for the content before from their operator content portal. Our history infuture are well in the minds of the senior management of the hosting business makes us, quite possibly, the best-suited24MAS. company for the mobile applications era in the current market development. This keeps us ahead of the competitors as we have been in the content management and serving business for 6 Mainstream HOUSEHOLD BRANDS are more than a decade. entering the sectorWhen mobile advertising started, most advertisers were 9 VIDEO ADVERTISING is gaining groundtypical content owners who wanted to grab more usersfrom the content download subscriber base. This fuelled a Mobile advertising has advance its humble beginnings as textbit more content revenue for those companies courageous message ads to becoming full-display media, there is hugeenough to put additional investments into banners and expectation that video advertising will shoot up soon as well.text campaigns. Today, big household brands are the Already, analysts are counting on the importance of videobiggest advertisers, which means that the mobile advertis- advertising, expecting it to gain the most ground over all othering industry is considered “trustworthy” and pro table. This mobile advertising formats. This, too, shall come naturally sincewill encourage media planners and buyers, ad agencies, any actual ad placed in the mobile device in its richest format,media companies and brands themselves to make their like video, will achieve maximum results due to a richer userclients aware that digital advertising budgets should have experience. Our development hub in Kuala Lumpur has beenallocation for mobile advertising as one of its key elements. working on future advertising formats and products. 24MASThe reason for the mainstream brands coming into the has a strategic position as we can collaborate on future possibili-sector is very simple: better targeted advertising and ties with our mobile operator partners. This is a key advantage inmassive user reach opportunities. 24MAS can serve these testing future products.needs very well owing to our strategy in the EmergingMarkets and the technology we harness to enable advertis-ers to reach more users. 10 Everybody has a MOBILE PHONE and ADVERTISING is never going to stop 7 Google, Apple, Yahoo!, Microsoft... Basically, everyone has a mobile phone, and advertising will not RECENT M&A ACTIVITIES cease existence. Combine these two simple facts and you’ll arrive at 24MAS’s value proposition. Emerging markets o er a huge growth potential for both mobile content and mobileSeen in the past couple of years, the above-mentioned big advertising. More often than not, GDP is lower in these marketscompanies have been acquiring small mobile advertising than in their western counterparts; free content to the masscompanies across the value chain. Most notable are the market is well-received and generates high interest. Therefore,recent M&A transactions such as Google buying AdMob for 24MAS is well positioned in the marketplace with great productUS$750 million and Apple buying Quattro Wireless for o erings and the right choice of the geographical targets. At theUS$275 million. This shows how valuable the mobile adver- end of the day, it’s up to the consumer to decide what to down-tising sector has become and we will see more companies load. What we are doing is to ad-enable their choice of apps orchange their business models and acquire skills and content, making it targeted and valuable. Our distributiontechnology to go after this untapped opportunity. 24MAS model is sharp contrast from pushing random banners or o ershas entered into the IPO process and are open to possible because we are sure our ads are distributed to people whoseM&A opportunities that might transpire through this. We interest pro les we know. We have a great position in the indus-know that the core of the company is very strong try, and the development of the business is predicted to becompared to many of the recent acquisitions. The company remarkable all over the world. All the above mentioned pointshas great geographical market focus, a solid management add up to a very positive looking future for the company.team with a long history of building successful companies,positive cash ow, products that are hard to beat, superiortechnology, a supportive and skilled Board and right timingfor either public listing or trade sale. 8 Increased consumption of MOBILE APPLICATIONSThe launch of the Apple AppStore has generated massiveconsumer application downloads. It has certainly changed 9
  11. 11. Reasons to believe Mobile is the largest media channel in Emerging Markets Increased consumption Response rates are towards mobile Apps superior on Mobile Adspend on mobile is Number of Ad increasing as its role in Impressions served digital marketing grows Major global brands Mobile advertising have taken to mobile technologyadvertising in a big way has advanced Mobile advertising is Video advertising is delivering results gaining traction Google, Apple, Yahoo! and Microsoft have entered the market 10
  12. 12. Global Footprint of Mobile Operators 11
  13. 13. Main o ceStockholm 24 Mobile Advertising Solutions AB Hastholmsvagen 28, 5th Floor, S131 30 Nacka, Sweden . Singap Phone +46 8 535 24 100 ore Telefax +46 8 535 24 199 www.24mas.com . Kua la L um pu . r Lo nd .Z on ur ich . Lim a