Presentation by Herman Kienhuis (SanomaVentures) on developments and best practices in mobile & tablet publishing and marketing

1. the future of mobile media
Mobile Convention, Amsterdam, May 8, 2012
Herman Kienhuis (@kienhuis), SanomaVentures

2. About me

3. 1. The mobile future is now

6. Promise delivered
New Computing Cycle Characteristics
Reduce Usage Friction Via Better Processing Power + Improved User Interface +
Smaller Form Factor + Lower Prices + Expanded Services = 10x More Devices
Computing Growth Drivers Over Time, 1960-2020E
More than
Just Phones
1,000,000
Mobile iPad
Internet Smartphone
100,000 Kindle
Devices/Users (MM in Log Scale)
Desktop Tablet
10,000 Internet MP3
Cell phone/
PDA
1000
10B+ Car Electronics
PC GPS, ABS, A/V
Units???
100 Mobile
1B+ Units/ Video
Minicomputer
Users
100MM+ Home
10 Entertainment
Units
Mainframe Games
10MM+ Units
1 Wireless Home
Appliances
1MM+ Units
1960 1970 1980 1990 2000 2010 2020
Note: PC installed base reached 100MM in 1993, cellphone/Internet users reached 1B in 2002/2005 respectively;
Source: ITU, Mark Lipacis, Morgan Stanley Research. source: Morgan Stanley
49

7. Smartphones rule in NL
Handset Consumer
shipments penetration
(mln)
6.0
50%
45%
5.0
40%
35%
4.0
30%
3.0
25%
20%
2.0
15%
10%
1.0
5%
-
0%
2008
2009
2010
2011
Feature phone sales
Smartphones sales
Penetration smartphone (Q4)
source: TelecomPaper, GFK

8. ja pageviews
n/
10
m
rt
/1
0
m
ei
/1
0
ju
l/
10
se
p/
10
no
v/
10
Mobile
ja
n/
11
m
PC
rt
/1
1
m
ei
/1
1
ju
Tablet
l/
11
se
p/
11
no
v/
11
ja
n/
12
source: Nu.nl
Mobile rules news consumption

9. Tablets very quickly taking space in NL
Tablet
Consumer
shipments
penetration
(mln)
1.6
35%
1.4
30%
1.2
25%
1.0
20%
0.8
15%
0.6
10%
0.4
0.2
5%
-
0%
2009
2010
2011
2012FC
Tablet sales
Penetration tablets (Q4)
source: GFK, Telecompaper

10. More iPads sold than HP PC’s

11. 2. It’s all about apps -
hardware becomes software

13. 0
100,000,000
200,000,000
May-09 300,000,000
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
NU.nl mobile pageviews
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Apps drive mobile usage
>44
iPhone
m.nu.nl
Android
Source: Sanoma Media

14. Why Apps?
•Developers community: 500k+ apps
•Easy discovery and installation: App Store
•One click payment: iTunes
•Customizable: Personal, Social
•Esthetic Experience: Apple UI
•Speed and accessibility
•Native use of device capabilities: GPS, compass,
accelerometer, tilt-sensor, microphone, camera

15. Sensor to the physical world
image scanning/recognition:
Kieskeurig, Layar, Goggles, Klik

16. Sensor to the physical world
location tracking:
Nike+, Foursquare, PlaceMe, Highlight

17. Sensor to the physical world
audio/voice recognition:
Shazam, Siri, IntoNow

18. Sensor to the physical world
movement/acceleration:
SleepCycle, Stappenteller, Waterslide Extreme

19. Hardware becoming software

20. Hardware becoming software

21. Hardware becoming software

22. 3. Changing our daily habits

23. Sleeping) Waking)up)
Preparing) Personal)
for)next)day) care)
Checking)
Going)out)in) news)
the)city) Having)
Parking)car) breakfast)
Shopping) Commu.ng)
in>store)
Watching) Working)in)
news) the)office)
Having) Mee.ng)at)
dinner) event)
Lunchbreak)
Relaxing)on) entertainment))
couch)
Working)
out) Planning)
Buying)last> tasks)
minute) Chat)with)
friends)

24. intense usage of mobile phone
US ad spend and time spend per medium (%)
43%
Ad spend
40% 39%
Time spend
22% 23%
16%
11%
9%
6%
1%
TV Print Web Radio Mobile
Source: Flurry (VSS, KPCB, Comscore, Alexa)

25. intense usage of iPad
How much time do you At home, what is your
How often do you
spend on the iPad (on a primary computer that
use the iPad?
day of usage)? you use most often now?
Once per day or less N/A
4% <30 min 2%
>2 hrs
16% PC/laptop
25%
36%
30-60 min. iPad
29% 62%
Multiple times a day 1-2 hours
96% 30%
Source: Sanoma iPad user survey 2011

26. changing media consumption
phone computer tablet
44% 47% 9%
overall overall overall
views views views
In the morning, relative People reading on computers iPad readers read more news
readership across all three consumer their greatest share of on the device at night than
platforms ramps up quickly online news that way during the day during other times of day
10%
8% Computer
7%
5% Smartphone
3%
iPad
2%
0%
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Source: NU.nl (based on sample data)
>44

27. changing purchasing behavior
Getting relevant information
on your location 58%
Making small payments via
SMS for parkings, bus 55%
Getting a discount/coupon
when you walk past a shop 50%
Banking via mobile phone 49%
Getting detailed product
info in a shop 48%
Purchase products via your
mobile phone 38%
Took picture of a 20%
product in store*
Scanned product
barcode in store* 18%
Location-
based ads 11%
Source: IAB/Insites consulting (NL, interest) *Comscore (EU5, action taken)

28. 4. And changing our markets

29. mobile app store revenues
$ bln
10
Paid downloads
In-app purchases
8
6
4
2
0
2011 2015
source: emarketer (IHS screen digest)

30. mobile ad spend
1,585
2010
2011
780 203
83 10
2
US ($) UK (GBP) NL (EUR)
source: IAB

31. mobile payments
Paypal (global) Ayden (NL)
mobile payments mobile payments
($bln) (% of transactions)
10 7%
8 6%
6 4%
4 3%
2 1%
0 0%
2010 2011 2012F Sep ‘11 Dec ‘11 Mar ‘12
Source: Paypal, Ayden

32. 4. So what’s the future of mobile media?

33. 1. Personal

34. 2. Snackable

35. 3. Touchable

36. 4. Shareable

37. 5. Instant

38. 6. Sticky

39. 7. Freemium

40. 8. Cross-device

41. and across platforms

42. 9. Physical-linked

43. 10. Location-aware

44. Mobile marketing case: ParkMobile
Goal:
new users
Channel:
NU.nl iPhone app
Results:
CTR (Run of app): 1,7%
CTR (Geo-targeted): 4,0%
High app ranking
Increased user growth

45. NU.nl targeting beurs van berlage

46. 11. Transactionable

47. Mobile marketing case: NYPizza
Goal:
positive brand impact, mobile
site awareness
Channel:
NU.nl mobile site, time-targeted
between 16h-20h
Results:
•Significant increase in aided
brand awareness 72% (vs 48%)
•Significant increase in positive
brand perception
•Mobile orders: +80%

48. 12. Wearable?

50. 5. Sanoma going ‘Mobile First’

51. Sanoma moving to mobile
•Digital magazine publishing
Print to Mobile •Digital media distribution
•Premium mobile services
•Mobile content publishing
Digital to Mobile •Mobile directories
•Mobile advertising
•International (kids) app publishing
New Mobile •Premium mobile services
services •Custom (branded) app development
•M-commerce

52. investing in mobile advertising
Mobile display ads
Content integration
Radicals / roadblocks / interstitials
Video
Time targeting
Device targeting
Content/channel targeting
Location targeting
Click to Call
Click to App Store
Click to Calender
Click to Buy
Coupon

53. and investing in new
mobile initiatives
Internal
Mobile
Planet of
Innovation
the Apps
Fund
Ideas Execution
Sanoma
App Sanoma
Challenge Ventures
External

54. Aiming to double
mobile results in 2012
App downloads Mobile pageviews Mobile
(mln) (mln/mnth eoy) revenues
5 500
4 400
3 300
2 200
1 100
0 0
2010 2011 2012F 2010 2011 2012F 2010 2011 2012F

55. Are your ready?

56. Thank you for your attention
Questions?
@kienhuis
/hermankienhuis
/kienhuis

57. © 2012