Opportunities in the Age of Innovation - Mobile

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Presentation given in Israel to http://www.adtechsummit.com/ on Feb 11 2014. Suggesting there is a huge opportunity for startups and founders like we've never seen.

Focus here is on how we are 1) living in the Age of Innovation, 2) Marketing & Media industries are in Chaos, & 3) Mobile is where the opportunities exist.

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  • How many of you are working on a start up now?How many or you are in marketing and advertising?How many or either in-between start ups, or thinking of starting one, or would really like to do it?How many of you are sitting next to your boss or colleague and don’t want to admit to that?
  • In 1946 the first two venture capital firms American Research and Development Corporation (ARDR) and J.H. Whitney & Company were founded. One of the first steps toward a professionally-managed venture capital industry was the passage of the Small Business Investment Act of 1958.A second notable early West Coast venture capital company was Draper, Gaither & Anderson (officially the first venture firm in the West Coast in 1959).
  • As of March 2011, there are an average of 320 new businesses launched every month, for every 100,000 U.S. adults. That equates to 543,000 new U.S. companies every month.(1)The number of small businesses in the United States has increased 49% since 1982. (2)Since 1990, as big business eliminated 4 million jobs, small businesses added 8 million new jobs. (2)
  • 1472: The first printed English advertisement, William Caxton printed a poster and tacked it onto church doors announcing the sale of a book.1662. London Gazette offers first advertising supplement1650: First newspaper ad offers reward for stolen horses1704, the very first advertisement in America, an advertisement for Oyster Bay, Long Island (real estate), was published by the Boston News-Letter.1729. Ben Franklin is first to use “white space” and illustration in ads
  • 1472: The first printed English advertisement, William Caxton printed a poster and tacked it onto church doors announcing the sale of a book.1662. London Gazette offers first advertising supplement1650: First newspaper ad offers reward for stolen horses1704, the very first advertisement in America, an advertisement for Oyster Bay, Long Island (real estate), was published by the Boston News-Letter.1729. Ben Franklin is first to use “white space” and illustration in ads
  • Creative RevolutionThink Small, campaign, launched in 1959 by ad agency Doyle Dane Bernbach, one of the most legendary advertising agencies in history.“Think small” according to Advertising Age, was the No. 1 campaign of the 20th century.
  • Creative RevolutionThink Small, campaign, launched in 1959 by ad agency Doyle Dane Bernbach, one of the most legendary advertising agencies in history.“Think small” according to Advertising Age, was the No. 1 campaign of the 20th century.
  • In 1946 the first two venture capital firms American Research and Development Corporation (ARDR) and J.H. Whitney & Company were founded. One of the first steps toward a professionally-managed venture capital industry was the passage of the Small Business Investment Act of 1958.A second notable early West Coast venture capital company was Draper, Gaither & Anderson (officially the first venture firm in the West Coast in 1959).
  • Daily time spent in mobile apps has now surpassed web consumption. The average user now spends 9% more time using mobile apps than the Internet. In June users spent an average of 81 minutes daily on mobile apps, compared to 74 minutes on the web.Flurry says that that growth is a result of more sessions during the day per user, as opposed to an increase in session length. Users are checking Twitter and Foursquare more often as opposed to spending more time in the apps in any given session.Flurry tracked 85,000 apps; Games and Social Networking categories dominate, capturing 47 percent and 32 percent on consumer time spent daily, respectively. Combined, these two categories control 79 percent of consumers’ total app time. Time spent on news apps follows with 9 percent share, with entertainment capturing a 7 percent share.
  • A typical smart phone has more computing power than Apollo 11 when it landed a man on the moon in 1969 
  • The average consumer looks at their phone 150 x a day.365 days a year (1)68% Americans place their mobile next to their bed while sleeping at night(2) 29% Americans look at phone first and last thing in the day(2)82% never leave home without it.(3)36% of people across the world (42% of Americans) say they 'cannot live without' their cell phone.(3)
  • Nothing gets a marketer closer to a consumer than mobile, nothing!!With permission, we can know:Any time of day? So whatMacDonald's’Where you are (have been, going)WazeBuild loyaltyProvide better serviceUberIt’s what I call the 3 P.sPersonal Pervasive Proximity
  • Opportunities in the Age of Innovation - Mobile

    1. 1. Great Opportunities of History. And Today. Greg Stuart CEO, Mobile Marketing Association 11 February 2014
    2. 2. There have been a few great moments in history. Genghis Khan begins creation of largest land empire in history Marty Cooper Invents the Cell Phone Columbus reaches the New World Industrial Revolution begins in England 1/1/1492 1/1/1206 1970’s 1/1/1760 1066 1197 1328 1459 Norman Conquest of Britain 1721 1852 Apple releases the iPhone Renaissance begins in Italy 1/1/1066 1590 1/1/1300 6/29/1970 Darwin's On the Origin of Species; Lenoir builds first practical internalcombustion engine 1/1/1859 Newton's theory of universal gravitation 1/1/1664 Watt patents first practical steam engine 1/1/1769
    3. 3. Impact of Three Major Trends Today ① We are in the Age of Innovation ② Marketing & Media is in Chaos/Massive Evolution ③ Proliferation of Mobile 3
    4. 4. 4 Age of Innovation
    5. 5. 5
    6. 6. A.D.
    7. 7. U.S. Venture Capital Investing Trends 1970 – 2012 5,000 4,000 3,000 2,000 6,420 VC Dollars Invested (Billions) $99.2 Companies Funded by VC 3,845 - 93 3,383 3,398 $100 $80 $60 3,143 2,752 2,688 2,554 2,486 $40 $30.4 $26.7 $26.3 $20.9 $21.8 $19.5 $20 $38.0 1,565 1,050 1,000 Dollars Invested ($Billions) 6,000 $120 Companies Funded 7,000 314 $0.1 $0.5 1970 1980 $2.6 $7.3 $0 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 Source: NVCA Venture Impact 2011, 6th Edition
    8. 8. And There are More VC Firms Active U.S Venture Capital and Corporate VC Firms in By Year, 2007 to 2013 YTD 479 8 Source: CB Insights June 2013
    9. 9. Plus a Rise in U.S. Internet Investments Internet-Related Investments By Year, 1995-2012 18000 16000 14000 2500 $15,676 $ Millions 2050 # Companies 12000 2000 $11,153 1500 10000 1369 8000 1000 6000 4000 2000 500 $1,931 0 0 1995 2005 2012 9 Source: NVCA 2013 Yearbook
    10. 10. 543,000 new companies monthly in U.S 10
    11. 11. Also, Innovation is Alive & Well in Israel - Rightly called “Startup Nation” No. 1 in number of startups per capita: ~1 startup per 1,800 Israelis No. 2 in absolute number of startups. (U.S.) is No.1. No. 3 in number of companies traded on NASDAQ after U.S. and Canada. No. 1 in R&D spending per capita and is also Israel is world leader in patents per capita Venture capital investment per capital in Israel is 2.5 times over the U.S. and 30 times than Europe. Source: Reinhold Cohn Group 2013 12
    12. 12. Steady Rise in # Startups in Israel Too 5,000 Number of Startups in Israel, 1990 - 2012 4,500 4,444 4,000 3,500 3,000 2,500 2,500 2,000 2,000 1,500 1,000 500 400 1990 13 2000 2005 2012 Source: 1990 – 2005 data from Invest in Israel, Ministry of Economic State of Israel; 2012 Data is based on report from Reinhold Cohn Group - 1 Start-up/1800 Israelis and total population of Israel is 8million
    13. 13. 14 Marketing Chaos
    14. 14. 1704 Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill 15
    15. 15. 1890 Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill 16
    16. 16. 1960 Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill 17
    17. 17. 2008 General Motors is getting ready to shift fully half of its “The country’s third-largest advertiser, into digital and one-to-one marketing within the next 3 years.” $3 billion budget Advertising Age March 17, 2008 18
    18. 18. CMO’s Should be Chief Innovation Officers From Stephen Quinn, CMO of Wal-mart & Chairperson of ANA opening keynote presentation at this year’s ANA Masters of Marketing 19
    19. 19. More Tech Spend by CMOs than CIOs  By 2017, CMO will spend more on IT than CIO  2011 B2B and B2C marketing budgets as a percentage of revenue were almost three times as high (10 percent) as IT budgets (3.6 percent).  2012 IT budgets are expected to grow 4.7 percent, while all marketing budgets are predicted to grow 9 percent  On average, nearly one-third of named marketing-related technology and services is bought by marketing already. 25 Source: Gartner 2013
    20. 20. Google is single largest advertising brand there has ever been And they got there in 15 years $60.0 $50.0 Revenue for Top Media Companies, 2012 In billions $50.2 $40.0 $29.0 $30.0 $21.0 $20.0 $10.0 $15.0 $10.0 $BSKYB Viacom Bertelsmaann Time Wartner Google Source: Google, TW, Bertelsmann, ViaCom, SKYB Annual reports 26
    21. 21. And The Access to Consumers is Astonishing – Like Nothing Ever Seen Monthly Unique Users for Major Media Companies In million 945.0 1,000.0 800.0 600.0 400.0 200.0 54.6 49.0 55.0 80.0 191.0 - Source: FB, Google, Viacom, Time Warner, Bertelsmann, Gannett Annual reports 27
    22. 22. Worldwide
    23. 23. Age of Mobile
    24. 24. 1 In Every 5 People In The World Own A Smartphone: 1 In Every 17 Own A Tablet Installed Base Of Devices As A % Of Global Population 25% Will be 10 Billion Mobile Subs this year! PC Smartphones Tablets 20% 18% 15% 15% 22% 19% 20% 20% 16% 16% 14% 11% 10% 10% 8% 7% 7% 5% 3% 4% 5% 3% 2% 1% 0% 2004 2005 2006 2007 Source: BII estimates, Gartner, IDC, Strategy Analytics, company filings, World Bank 2013 6% 2008 2009 2010 2011 30 2012 2013E
    25. 25. Smartphone Penetration is Worldwide Smartphone Penetration By Country, 2012 Singapore 87% Hong Kong 87% UK 72% USA 64% Germany 62% Israel 57% Africa 20% 0% 20% 40% 60% 80% 100% Source: Nielsen Report 2013; Note: Africa stats is from African telecommunications market and Israel Data is from Google and Ipsos MediaCT survey 31
    26. 26. Apps Make Smartphones also a Medium 180 U.S Web vs. Mobile App vs. TV Consumption , Minutes per day 168 162 160 168 140 127 120 94 100 80 70 66 72 70 60 40 20 0 Dec 2010. Web Browsing Dec 2011. Dec 2012. Mobile Applications Television 32 Sources: comScore, Alexa, Flurry Analytics Greg Stuart, CEO; greg@mmaglobal.com +1 631.702.0682
    27. 27. Apps Are Revolutionizing How We Get Access To Content, Community And Commerce And Entertainment 90 80 Mobile App Store Revenue, Worldwide, 2011 -2017 (Billions of Dollars) 70 60 Mobile App Use Grew 115% in 2013, Propelled by Messaging Apps (1) 50 40 30 20 10 0 2011 2012 2013 2014 2015 2016 2017 Paid For In-app Purchases Advertising Total Revenue Source: Gartner (Sep 2013) 57 billion apps were downloaded in 2012 82 billion apps will be downloaded worldwide in 2013 and by 2017 there will be more than 200 billion downloads per year. (2) Source: (2) Gartner September, 2013; (1) Flurry 33
    28. 28. Apollo 11 was the spaceflight that landed the first humans on the Moon, Americans Neil 34 Armstrong and Buzz Aldrin, on July 20, 1969
    29. 29. Average each Day 36
    30. 30. Never Leave Home w/o Phone
    31. 31. 38
    32. 32. Mobile Advertising 39
    33. 33. Fear, Uncertainty, Etc. slide title
    34. 34. % of Total Media Consumption Time or Advertising Spending % of Time Spent in Media vs. % of Advertising Spending, USA 2012 Time Spent Ad Spend 50% 45% 40% 43% 42% Internet Ad Mobile Ad =$37B* =$4B* 35% 30% 25% ~$20 B opportunity in USA 26% 23% 20% 22% 15% 14% 10% 12% 10% 5% 6% 3% 0% Print Radio TV Internet Mobile Note: Note: *Internet advertising reached $37B in USA in 2012 per IAB, Mobile advertising reached $4B per eMarketer. Print includes newspaper and magazine. $20B opportunity calculated assuming Internet and Mobile ad spend share equal their respective time spent share. Source: Time spent and ad spend share data based on eMarketer (adjusted to exclude outdoors / classified media spend), 12/12. 41
    35. 35. “There is a lot of talent, but not a lot of opportunity.” Rye Barcott 42
    36. 36. Lastly, Mobile Has Doubled its Share of VC Dollars Mobile VC as Percentage of Overall Tech VC 43 Source: Rutberg & Co. Aug 2012
    37. 37. The True Power of Mobile MMA’s Positioning on Mobile: Nothing gets a marketer closer to consumers than mobile. Nothing!
    38. 38. But What is Mobiles’ USP–Unique Selling Proposition! It is… 1. 2. 3. Personal Pervasive Proximity
    39. 39. But why does this really matter? 46
    40. 40. 47 47
    41. 41. Impact of Three Major Trends Today ① World Loves Innovation ② Marketing Needs Help ③ Never Been an Opportunity Like Mobile 48
    42. 42. greg@mmaglobal.com +1 631 702 0682 @gregstuart
    43. 43. Join the Community - MMA Events 2014 are great networking, education and leadership MMA Events opportunities: MMA Forums NY Forum – May 6-7, 2014 Singapore Forum – May 22, 2014 Brazil Forum – August 26-27, 2014 India Forum – September 2014 London Forum – November 2014 Vietnam Forum – November 2014 Global Events CEO & CMO Summit – July 13-15, 2014 (Hilton Head, U.S.) SM2 Innovations – September 30+, 2014 (New York) Cannes Lions – Jun 16-22, 2014 Smarties Awards New York – October 1, 2014 More coming http://www.mmaglobal.com/events/forums 50
    44. 44. MMA Members Marketers, Agencies, Media Sellers, Tech, Operators 51 51
    45. 45. MMA is Global – Branches in 15+ Countries Growth of Local Councils Continues Worldwide: APAC China India Philippines Vietnam 52 EMEA Austria France Hungary Portugal South Africa UK East Africa Germany Italy Spain Turkey Middle East LATAM Argentina Brazil Columbia Mexico City 52
    46. 46. MMA’s Purpose (new clarity of mission 11/13) To accelerate the transformation and innovation of marketing through mobile, driving business growth with closer and stronger consumer engagement. 53 53
    47. 47. Thank You greg@mmaglobal.com +1 631 702 0682 @gregstuart

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