August 13, 2012 C a s e S t u d yUniversity of Washington: Mobile Phones in DevelopmentResearchers: Master of Communication in Digital Media Candidates, Tenille Lively & Ivan Orbegozo
MOBILE By the Numbers 6 1.7 Spending on goods and services in Currently, six billion mobile phones have been sold worldwide. emerging markets is increasing by 1.7 trillion dollars every year. Of the six, Five billion mobile phones worldwide are prepaid. 2/3 By conservative estimates, emerging markets are projected to account for two-thirds of the world’s output by 2030. 14% While digital ad spending 8% In India, eight percent have is growing faster than any access to Internet, 59 percent other medium at an average of mobile web users are mobile- annual rate of 14%, Internet only, meaning they only use 2/5 penetration in emerging markets remains quite low. their phones to access the web. 200 The four most populous emerging markets today – China, India, In 2011, companies spent 200 Indonesia and Brazil – will make up billion dollars on advertising in two-fifths of the global GDP. emerging markets. + Statistics provided by Jana Research
Did you know?> Ownership of multiple subscriptions isbecoming increasingly common, suggestingthat their number will soon exceed that of thehuman population.> In developing countries, citizens areincreasingly using mobile phones to createnew livelihoods and enhance their lifestyles,while governments are using them toimprove service delivery and citizen feedbackmechanisms.> By 2016, there will be one billion mobilephones in Africa.
Did you know?Jana is derived from the Sanskrit word for“people.”WHat is jana?20-person, Boston-based startupcompany. No sales staff.Goal: Help global brands to reachemerging market consumersCore asset - DATAOwn proprietary protocolAirtime as currency
Photo: Mobile students in Africa Photo: University of Nairobi Did you know? There are over 50 languages in Kenya alone. Nokia hired Jana to send translation micro-tasks to subscribers that gave Nokia the ability to create a dictionary of relevant words in local languages for personalzation of their software.Photo: Sunset falls on a Maasai boy on Kenya’s Masai Mara National Reserve
Nathan Eagle> As one of the world’sforemost experts onmobile phones in emerging Giving mobile phonemarkets, Dr. Nathan Eaglegraduated from Stanford subscribers the abilityUniversity with a B.S. in to earn small amountsMechanical Engineering,a master’s degree in of mobile moneyManagement Science and through M-PESA or fee-Engineering, and a master’sin Electrical Engineering. free airtime in exchangeHis Ph.D. from the MIT for sending data viaMedia Laboratory on RealityMining was declared one of short message servicethe ’10 technologies most (SMS)likely to change the way welive’ by the MIT TechnologyReview.
JANA By the Numbers230 2.1 100 30Currently, Jana has more than 230 Mobile users wordwide, approx. Operating in more than 100mobile operators. 2.1 billion. countries worldwide. Today, Jana is worth 30 million dollars with a company goal of one billion.
JANA products Jana Research Provides global organizations and marketing research companies with real-time data and feedback from consumers in emerging markets across the world using mobile customizable surveys. Jana gives companies access to quick and cost- effective solutions for taking the pulse of the “next billion consumers” in these growing economies. Marketing & Promotions Enables global brands to sell products with targeted, social offers. Marketers can promote products with mobile marketing campaigns, such as mobile couponing, group buying, or contests. Jana has already crafted programs for top global brands and organizations. Loyalty Program Offers brands valuable consumer insight post-purchase. Brands can re-engage with consumers to get product feedback or drive loyalty with targeted offers.
JANA how it works SHORT MESSAGE SERVICE (SMS) Global System for Mobile Communications (GSM) Subscriber Identity Module (SIM) Unstructured Supplementary Service Data (USSD) A benefit of using USSD is that it creates a real-time connection during a USSD session. The connection remains open, allowing a two-way exchange of a sequence of data, making it a more responsive service than SMS. However, Jana uses USSD and SMS technologies along with the Internet in conjunction. (USSD to “pull” information and SMS to “push” information) To be more competitive they created a proprietary universal cellular messaging protocol (UCMP) that has the capability to community up to five billion people at no cost to them. That sits at the back-end of pre-paid billing systems from more than 100 mobile operators worldwide.
JANA the actors involved Mobile Operators Mobile Users/BoP Jana is a new revenue stream for mobile operators Jana allows 2.1 billion people to received airtime because Jana buys “bulk airtime.” As a result, mobile credits for their mobile phone accounts helping to operators have seen an increase on their average empower poor people. revenue per user (ARPU). Clients/Brands Governments Companies and organizations have the capability Sometimes get the benefits from the CDR data results to have quick access — in real-time — to valuable analyzed by Jana for social good. The info is used to insight in regards their brands in emerging countries track models of influenza, working with urban planners allowing those companies to better target their for better & optimized roads, traffic optimization, market. Jana has less than 100 clients; the biggest among others. one is The World Bank.
The World Bank is one of its largestclients with a budget of $77 million tospend — every four years — in PurchasingPower Parity (PPP) studies among otherprojects.
JANA the future? “My ultimate goal is to re-route 30% of the money spent on mass advertising in the developing world to the individual consumers themselves — meanwhile helping brands build loyalty, and helping consumers get the goods and services they want.” - Dr. Nathan Eagle “We need to go where the money is. We are a billion dollar company, not a social venture. By becoming a billion dollar company, we are going to empower a huge number of people. ” - Dr. Nathan Eagle
$JANA the future? Data > What does this mean? > Who is benefiting the most? (think pyramid. think database. think mathematical model. think Google.)
THE SMART LIST 50 PEOPLE WHO WILL CHANGE THE WORLD by“Nathan Eagle is not just smart; he applies hisintelligence to the real world, with both vision (mobilephones as capital equipment enabling millions of peoplearound the world to become productive), and a businessmodel (get them to collect data and market researchfor large companies). His company, Jana (in which I’veinvested), employs thousands and, ultimately, he employsmillions of people in emerging markets as marketresearchers.” - Esther Dyson -- investor and entrepreneur