The document outlines the evolution of mobile internet from simple text-based services to today's complex systems featuring smartphones and app-based interactions. It discusses the value chain of mobile internet, the rise of mobile advertising, and the challenges faced by media industries as they transition from traditional models to digital and mobile platforms. The document highlights the need for content relevance in mobile advertising and emphasizes the importance of integrating mobile strategies into marketing mixes.

1. Mobile Internet What’s app Johan Looijenga www.linkedin.com/in/johanlooijenga 11-3-2010

2. Agenda Mobile Internet evolution Mobile Internet value chain dominance Smartphone growth and usage Mobile user targeting Mobile advertising Media industry and mobile Future thoughts

3. Mobile Internet 1.0 2G GSM circuit switched data WAP Text based, simple graphics No Internet browsing Bad user experience Data usage billing

4. Mobile Internet 1.5 2.5G mobile infrastructure DoCoMo iMode Proprietary Japanese phones Operator walled garden Subscription based billing + data usage billing

5. Mobile Internet 2.0 3G mobile infrastructure Open Internet browsing Smartphone technology Intuitive user interface Social networking (e.g. Facebook) Video (e.g. YouTube) VoIP (e.g. Skype) Applications/App store Flat fee data usage billing + app billing (many free)

6. Mobile Internet value chain Mobile Internet 1.0 Mobile Internet 1.5 Mobile Internet 2.0 Europe Phones: Nokia Japan Operator: DoCoMo United States Apps: Apple Innovation game: New services, App stores, applications and content Challenge: attract large scale developer community Dominated by Internet giants and startups Platform game: Infrastructure and reach/economies of scale Host as many apps/services as possible Challenge: rapid growth of spectrum/bandwidth usage Dominated by Mobile operators, Handset vendors, Internet Giants

7. Mobile bandwidth challenge

8. More than just a phone Internet browsing E-mail Instant messaging/social media Tablet Bookreader/eReader Music player/recorder Musical instrument Photo camera/editor Video player/recorder GPS device Car electronics device Home electronics device Game computer Lots of handy utilities

9. Smartphone sales Smartphone sales Q4 2009 41% growth Best performers Apple iPhone and Google Android source Gartner feb 2010

10. Mobile App marketing/distribution

11. Mobile fit with social networking

12. Mobile Internet user targeting Commercial TV: Global user segments, global usage figures Internet: Individual user behaviour, contextual advertising Mobile Internet: High degree of personalization possible: - consumer value (ARPU, post-paid only) - demographics (sex, age, address, post-paid only) - handset type and brand - usage statistics - always on - location - short- and long distance journey patterns - individual contributions (blogging, twitter) - buying behaviour

13. Business models mobile Access flat rate, time based, volume based, free Free Loyalty, support existing business Subscription area’s: music, films, newspapers, magazines, books Advertising area’s: news, magazines, radio, TV Transaction - Premium 0900, SMS Classic Internet vs. Mobile: free vs. paid services based on phone specific content and ease of billing - App one-time fee - M-commerce

14. Mobile advertising Recent acquisitions worldwide: - Google buys AdMob ($750 M) - Apple buys Quattro Wireless ($275 M) - Opera buys Marvel ($ 8 M) STIR/Nedstat lab mobiel initiative Smartphone installed base drives mobile advertising Mobile advertising implies mobile landing pages Ad needs to be content related/context relevant Different types of mobile Advertising: - SMS/MMS - Mobile search - Mobile video - Mobile game - Mobile banners - Branded content

15. Newspapers and magazines Of all media newspapers and magazines suffer from biggest ad income decline On-line shift from text to video and interactivity Mobile offering starts as a copy of paper Tech-based and special interest mags/sites are early adopters of new technology e.g. Wired tablet app

16. Radio 6-10% listening time online Broadcast radio will loose market share to personal radio Existing Radio companies well positioned to fund personal radio, however most are unable to make digital shift Mobile phone: - Access to music shop downloads - CD player - Broadcast radio tuner (home, car) - Personal music streamer - Personal radio streamer Weekly music consumption time - Radio Next 2008 US

17. Television Trends: - End of mass-media advertising growth - Growth of on-line on-demand consumption - TV integrated internet browsing - Personal TV (e.g. using iPad) Uitzending gemist - 150 million video’s in 2009 - 8 million NOS Journaal - growth 25% in 2009 - 2 M unique visitors/month Uitzending gemist mobile - 2,7 million video’s on mobile in 2009 - last 4 months 230.000 app downloads - last 4 months 2 million iPhone video’s

18. Mobile in your marketing mix Mobile website: - offers better navigation than standard website - works on any smartphone App: - dedicated functionality - navigation speed - good user experience - some functionality only available in app - smartphone specific - dependency app store Use of dedicated Apps will migrate to mobile websites Best to develop both types for leading OS’s Standard website Mobile website App

19. Conclusions Shifting dominancy in Mobile Internet value chain Mobile internet access will surpass fixed internet access soon Media convergence is everywhere: it’s easier than ever to reach a large audience, but harder than ever to really connect Mobile Phone unique as personal media device Advertising on mobile needs to be more content related than ever (‘contvertising’) Mobile becomes a must in any marketingmix

20. Mobile Internet What’s app