Mobile commerce (m-commerce) is growing rapidly, driven by innovations like smartphones and app stores. Global revenue from mobile internet was estimated at $37 billion in 2008, with most from digital content purchases. Younger users and those in cities are more engaged with mobile services like social media and news. By 2013, over 80% of Europeans are projected to have smartphones. New payment methods like M-Pesa in Africa show potential. Mobile offers new advertising channels and a way for traditional companies to reach customers. The mobile device context requires tailored services rather than just shrinking desktop websites. Infrastructure lags innovation potential but the Apple App Store model is driving learning and adoption.

1. M-Commerce anno 2010 Simon Kibsgård, business consultant at Creuna withexpertknowledge of mobile business

2. ABOUT CREUNA DIGITAL AGENCY. LEADING IN SCANDINAVIA. 300 PEOPLESOLUTIONS FOR THE DIGITAL AGE. ACROSS ALL DIGITAL MEDIA LARGE CUSTOMERS B2B, B2C, B2G. FULL-SERVICE CAPABILITY

3. SELECTED CLIENTS

4. Agenda Mobile and m-commerce in numbers + forecasts Who are the clients? Why is m-commerce accelerating now? Where is Denmark in this? What areas are “low hanging fruit” for m-commerce implementations?

5. Worldwide Worldwide mobile phone 286.1 million units in Q2 2009 (6.1 % decrease) Worldwide smartphone40 million units in Q2 2009(27 % increase) Android from Google will increase by 900% in 2009 iPhone will grow by 79% in 2009 5 Gartner, August 2009 & Strategy Analytics, May 2009

6. Percentage of mobile users consuming mobile media (advanced usage) is gaining 17 % ayear (UK) Kilde: Product: MobiLens Data: Three month average ending June 09 Country: UK - N= 13,997

7. Revenuemix in mobile web 7 http://www.morganstanley.com/institutional/techresearch/pdfs/2SETUP_12142009_RI.pdf

8. Global revenue in mobile web (except data) 2008 Estimated 37 billion USD revenueon mobile internet (data excluded) in 2008 76 % beingpayment for accesson digital content (music, games, video, ring tones etc.) 5 % on advertising Only 19 % ongoods not consumedon mobile (eg. a pair of shoesor a new mobile phone) http://www.morganstanley.com/institutional/techresearch/pdfs/2SETUP_12142009_RI.pdf page 82

9. When is mobile web accessed (hour of day) (NO) 9 Source: http://gallup-tns.no Operator WLAN Total

10. Demographics: mobile Services (UK) Higher on chart = more female Further to right = older Size of bubbles = # of users Source: Product: MobiLens Data: Three month average ending June 09 Country: UK - N= 13,997

11. Younger and less feminine(UK) Social media and news are moving mobile to mainstream Source: Product: MobiLens + Media Metrix Data: Three month average ending June 09 Country: UK - N= 13,997

12. Forecast: Mobile penetration in Europa Source: Jupiter Research European Mobile Forecast, 7/08 (Western Europe) © 2008 Jupiter Research, LLC

13. Market is driven by... Legislation? Innovative services? Technology / platforms? (Of course, all three. Japan showed how the Fed handling of “Spectre” kickstarted the market for operators and then for service providers, by not charging billions for 3G licenses. Innovative services like Google Maps mobile, Latitude, FourSquare, Goggles, Facebook Mobile can create a need for mobile connectivity. In Japan Flash technology is available on all devices giving a common platform for applications across devices. In Europe it seems that Mobile Internet is the first real common ground – but what a great platform!)

14. The introduction of a game changer iTunes, app stores and smartphones Distribution of mobile content just got a super mall After little more than 2 years iPod Touch + iPhone reached 57 mil. users. i-mode in Japan didn’t reach half as many on a far more homogeneous market App Store as Gatekeeper / revenue share model / security enforcement Java capable platforms are still the largest business, but app stores are introducing an intuitive and user oriented distribution channel

15. What’s up with those iPhone users? http://www.morganstanley.com/institutional/techresearch/pdfs/2SETUP_12142009_RI.pdf: side 43

16. Gartner says… http://www.gartner.com/it/page.jsp?id=1282413

17. Mobile payment in Denmark at present © Creuna 17 Busses, Gyldendalog parking SMS tickets WAP-billing books(1-click payment) Premium SMSesare everywhere!

18. Last weekDanes had collected 15 Mil DKK for Haitianvictims. 9 Mil collected via Premium SMS …. And no more SMS cases for now!

19. NFC: The paymentMethodthatkeepsuswaiting 19 In Japan since 2004. In Europe from 2012?

20. Mobile Payment with some severe challenges Zong

21. A brand new business model M-Pesaog micro financing Micro financing Private money transfers Banking

22. A new sales channel for traditionalproducts Find local resources Document the accident Submit claim …and it’s a flashlight! 22 Nationwide Mutual Insurance: Application as a differentiator

23. New Sales channel by application 23 Arla mobile cookbook

24. Webshops as Navigators Mobile payment can be a hassle Good user interface is a challenge From price runners to mobile shops sending leads to non-mobile shops

25. Advertising More than 1/3 of mobile users reacted on a mobile ad: Meaning they sought more information, signed up or received a coupon At Kansas they received 50 % - 80 % response within one hour on SMS offers! But is mobile more engaging? More than TV? More than a poster at a bus stop? More than a desktop computer? The whole viral deal: Mobile is much easier shared …And then there is proximity and AR advertisements http://advertising.aol.com/sites/default/files/webfm/research/SmartPhone.pdf

26. So, Mobile is just internet on a smaller screen!!?

27. Julekalender 27 A creuniancreativeconceptonviraladscollectingleads for sale

28. Coupons 75 % of smartphoneusers are positive towards receiving mobile coupons for offline buys A coupon can be intertainment in itself A coupon can be something you make yourself (collect bits, by submitting content to web 2.0’ish campaign, by collecting friends in Facebook app etc.) http://advertising.aol.com/sites/default/files/webfm/research/SmartPhone.pdf

29. Conclusion The mobile device is not a tiny desktop computer (!) Services and payment methods are to be tailored for context and mobile device capabilities Mobile is personal (id), media for entertainment and services, billing applicable and always on and online Infrastructure is not driven fast enough by banks and operators All of the above is absorbed in the Apple iPhone App Store. Congratulations to Apple, now it’s up to rest of us to learn and act

30. Thankyou! M-Commerce anno 2010 SIMON KIBSGÅRD Business consultantwithexpertknowledge of mobile businessM: (+45) 22 49 83 41 simon.kibsgaard@creuna.dk