Tor Jacobsen - Digital compass - Where are we going, who's leading the way?


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64th World Newspaper Congress and 19th World Editors Forum

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  • Tor Jacobsen Director of VG Mobile. VG Mobile is a doughter company of VG, which is the largest newspaper in Norway in terms of readers both for the printed version and digitally Definition: Mobile including iPad/tablets
  • This graph shows the main 6 sites in Norway the last year. It shows a mobile market growing in sain, and it shows that ”the winner takes it all” – or winner is a stronger winner on mobile.. or Norway. It is so in Norway, and we also see this for a lot of other countries Our mobile traffic has been 8 times as big that it was 2,5 years ago, so things are happening very quickly.
  • To set this into perspective, you here see our digital traffic on christmas eve the last 3 years. It´s a good day of measuring because people tend to do the same things this day. It´s two interesting this whith this graph Mobile makes a bigger and bigger share and was last christmas eve almost 40%. We expect this year it to be higher, and allready now we see some days where mobile is bigger The total digital traffic is increasing – the cake is bigger – the user situations is more and more.
  • Mary meeker, one top medie analyst From the us: While 10% of the usage is on mobile, only 1% of the ad spent is. Over time – this cannot last, and mobile will have a huge growth potential. The other thing is the yellow one, it will also be growing a lot mot My guess is that mobile will be the number one digital mediaplattform in terms of revenue, in very few years
  • In Norway actually, we actually see this happening allready. This is VG Mobiles ad revenue development. It´s growing very fast – a lot more than the usage is growing. And: it´s a lot of money – it´s a significant share of our digital revenue
  • So why is mobile so great. Why is it a fantastic advertisement tool? Well it is everywhere, it´s personal and you use it from morning to evening – from dusk till dawn. And especially situations where …. But the most important thing
  • Salmon 36 % Gjennomsnittlig salgsvekst totalt i testperioden sammenlignet med baseperioden 55 % Gjennomsnittlig salgsvekst i region øst i testperioden sammenlignet med baseperioden
  • Mary meeker, one top medie analyst
  • You own the user situation in a higher degree than other digital plattform. It´s sofa time, it´s relaxed and it´s perfect for ads!
  • This is some examples on ads we have had on some of our iPad products. It don´t need to be so complicated
  • Poeng: the ARPU is driven 90% from ads
  • OK, we have a landscape where we expect mobile to gain more and more ”digital market share” and where the total digital page impressions wil grow significant.
  • Tor Jacobsen - Digital compass - Where are we going, who's leading the way?

    1. 1. Digital compass – Where are we going, who‘s leading the way?Tor JacobsenManaging DirectorVG MobileNorway
    2. 2. Monetizing on mobile platforms Tor Jacobsen, VG Mobile
    3. 3. Mobile media usage is growing very fast:VG has a clear number one position in Norway Top 6 mobile players in Norway – (page impressions) Source: TNS Gallup
    4. 4. Mobile device share of is strongly increasing.The total digital usage is growing rapidly. Share of visitorsExample: Christmas eve 2009 - 2011. Distribution of visitors to the front page of per platform
    5. 5. Time used on mobile does not reflect money spent.Should over time be more consistent. Source: Relationship Capital, Top Mobile Internet Trend, June
    6. 6. Mobile ad revenue:It used to be nothing, now it is a significant share of our revenue. Ad revenue development VG Mobil January 2009 – until now
    7. 7. Why is mobile so great? Point of purchase «Repetitive now» «Bored now» «Urgent now»
    8. 8. A Case Study: Heat Pumps
    9. 9. Result: • Cost: 85 000 NOK excl. VAT (netto) • Click: 17 554 • No. of inspections: 170 • No. of sales: 119 • Average order value: 20 000,- • Turnover: 2 380 000 NOK
    10. 10. Mobile sells goods.Example: Retailer Coop Sales development Average week 6-9 Average week 11-12 36 % sales growth in the test period, compared with the base period.
    11. 11. Advertising in VG Mobil = no.1 in App Store Tirsdag morgen Monday morning Tuesday morning
    12. 12. Mobile ad effect is high compared to other channels Source: Chetan Sharma, January 2011
    13. 13. Niche Apps make new ad possibilities:Connect your brand with relevant user situations.
    14. 14. What about the iPad?
    15. 15. A lean-back experience gives high awareness
    16. 16. iPad ads examples:
    17. 17. ARPU is also increasing, which gives future hope! Monthly revenue per user VG Mobile
    18. 18. Summary • The future for mobile advertising seems very bright • Mobile is a powerful ad tool for all tactical, and sales driven advertisement. • The mobile device is personal, close to the point of purchase and give through apps possibilities to be very targeted on user situations and target groups. • iPad is a lean back medium, and we try to make products and ads that meet these needs. • The iPad as an ad tool give a very high effect and a new way to build brands digitally. • For mobile platforms, VG is more and more ad focused instead of user payment oriented. We think advertisement will be the main future revenue stream.
    19. 19. Thank you!