Mobile Web East Africa
3 February 2010,
Nairobi, Kenya

Rick Joubert
www.rickjoubert.com
The mobile phone is the most
ubiquitous consumer technology

                on earth

         #2 = FM Radio (3.9 Billion)
Business model / process impacts
1.   Financial services
2.   Music / Gaming
3.   Photographic Industry
4.   Navigation industry
5.   Time piece industry
6.   Hardware
7.   Software
8.   Web

Coming soon
1.   Health care
2.   Government
3.   Publishing
Access: Population
       Population in SA with entertainment / communication
                               technology in their household




AMPS
Growth of unique mobile phone access in SA
               1999                             2009
               11% of SA adults had access to   70% of SA adults use a mobile phone.
               (at least one) mobile phone.




Source: AMPS
Growth of unique mobile phone access in SA
                     among the economically active population
               1999                                  2009
               20% of SA working adults had access   82.5% of SA working adults use a mobile
               to (at least one) mobile phone.       phone.




Source: AMPS
Penetration of mobile phone ownership in SA
                                  By expanded LSM
                  70% of the SA population has access to a mobile phone.




Source: AMPS 2009 A
In South Africa today..
                         There are almost twice as many            There are more than four times as many
                        mobile phones as there are TV sets.     households with a mobile phone than computer.




                           44% of e-mails are sent and               SMS text messaging is used by almost
                          received from a mobile phone.               four times more people than e-mail.




                       There are 5.3 times more homes with         There are almost six times more mobile
                      mobile phones than landline telephones.       phone subscribers than Internet users.




Source: AMPS 2009 A
www Web users, RSA*



5 Million unique
             11%

              •Arthur Goldstuck, World Wide Worx
Mobile Web, RSA



                                10.1 Million
              unique mobile web users*

(less than 30% have access to the PC Web)           •Strategy Analytics
“Mobile Web” definition tiers*


Tier 1 The WAP Internet
Tier 2 The mobile application Internet
Tier 3 Web browsing on phone


                                  * Goldstuck/Joubert
Access: Population
       Population in SA with entertainment / communication
                               technology in their household




AMPS
• $300 million p.a.
• 2000 films p.a.
• $30K budget per film
• Average film sells 50K disks at a price of $2
DVD player shipment by region




Source: “In-Stat”
AdMob Mobile Metrics: August 2009
(ads called from the AdMob network)


- Apple iPhone = number 1 handset on every continent in the
  world…
- Except……
AdMob Mobile Metrics
(ads called from the AdMob network)


- Apple iPhone = number 1 handset on every continent in the
  world…
- Except……
- Africa!
- Africa: no1 = Nokia 3110, no2 = Samsung E250
“Internet” access channels


                     PC Web    SMS
Smartphone access to PC Web    USSD
         Mobile applications   Voice
         Mobile Web (WAP)
Driving forces

•   Growth in data networks & coverage
•   Mobile data access charges
•   Content!
•   + handsets - price
•   Compliments – e.g. Mobile Wallets
Business model/monetisation

•   Commerce
•   Transactions / financial services
•   Content
•   Advertising
Positioning map of users of various media
                                               Age and Income




Source: AMPS 2009 A
7th Mass Medium



Print   Recording   Cinema   Radio   TV     Internet   Mobile
US Internet ad spend
30 September 2009, UK
UK ad spend
      At the end of its third year of full
commercial adoption in the UK (2000),
 online ad spend amounted to £153M

      That was 0.9% of   UK ad spend
In developing markets mobile is the

        FIRST screen
              (and often the only screen)
Mobile as a medium*


1.   First personal mass media
2.   Permanently carried
3.   Always on
4.   Built-in payment mechanism
5.   Available at point of creative inspiration
6.   Accurate audience measurement
7.   Captures social context of media consumption


                                                    * Tomi Ahonen
“..available at the point of creative inspiration…”
The consumer will press 1 for
more information and receive
an SMS back with a link to the
SA Unite portal.
Hero, lead or support?

• Media
  Display advertising

• Direct Marketing
  Push messaging, lead generation

• Integrated Marketing
  Interactive response channel for other media

• Community Building and CRM
Suzan calls Mike                                                                         Ring
She expects to hear        Suzan listens to the                                          Ring
a ringing tone             superimposed
but hears an               advertising ring
advertising                Tone 3-8
message instead            seconds




                            Now Playing




                                                                    Mike Receives benefits for allowing ads
                                                                    to be played on his ring back tone



Messages Rotate
The messages are rotated so each time the caller makes a phone call he/she hears a different A-Tone.
In South Africa advertising agencies are
                            beginning to

                         GET IT
37

                                  Agencies getting involved



It is an area of massive
potential in this market and we
have invested resources
because I believe OMD needs
to take a leading role as the
largest media agency in SA.”

Josh Dovey
CEO, OMD
Size of the prize?

Continental Africa:




$8 Billion p.a. advertising spend*

*estimate based on multiple sources including EIU, WARC and World Fact Book
What will be spent on rate carded
            Mobile Advertising in RSA in 2010?


$50 Million*

*personal estimate (not yet validated by MMA)
* Excludes push messaging and integrated mobile response
Thank You
www.yonder.co.za
www.ringco.net
www.rickjoubert.com

Mobile Web East Africav2 Ms07 Pdf

  • 1.
    Mobile Web EastAfrica 3 February 2010, Nairobi, Kenya Rick Joubert www.rickjoubert.com
  • 2.
    The mobile phoneis the most ubiquitous consumer technology on earth #2 = FM Radio (3.9 Billion)
  • 3.
    Business model /process impacts 1. Financial services 2. Music / Gaming 3. Photographic Industry 4. Navigation industry 5. Time piece industry 6. Hardware 7. Software 8. Web Coming soon 1. Health care 2. Government 3. Publishing
  • 4.
    Access: Population Population in SA with entertainment / communication technology in their household AMPS
  • 5.
    Growth of uniquemobile phone access in SA 1999 2009 11% of SA adults had access to 70% of SA adults use a mobile phone. (at least one) mobile phone. Source: AMPS
  • 6.
    Growth of uniquemobile phone access in SA among the economically active population 1999 2009 20% of SA working adults had access 82.5% of SA working adults use a mobile to (at least one) mobile phone. phone. Source: AMPS
  • 7.
    Penetration of mobilephone ownership in SA By expanded LSM 70% of the SA population has access to a mobile phone. Source: AMPS 2009 A
  • 8.
    In South Africatoday.. There are almost twice as many There are more than four times as many mobile phones as there are TV sets. households with a mobile phone than computer. 44% of e-mails are sent and SMS text messaging is used by almost received from a mobile phone. four times more people than e-mail. There are 5.3 times more homes with There are almost six times more mobile mobile phones than landline telephones. phone subscribers than Internet users. Source: AMPS 2009 A
  • 9.
    www Web users,RSA* 5 Million unique 11% •Arthur Goldstuck, World Wide Worx
  • 10.
    Mobile Web, RSA 10.1 Million unique mobile web users* (less than 30% have access to the PC Web) •Strategy Analytics
  • 12.
    “Mobile Web” definitiontiers* Tier 1 The WAP Internet Tier 2 The mobile application Internet Tier 3 Web browsing on phone * Goldstuck/Joubert
  • 13.
    Access: Population Population in SA with entertainment / communication technology in their household AMPS
  • 15.
    • $300 millionp.a. • 2000 films p.a. • $30K budget per film • Average film sells 50K disks at a price of $2
  • 16.
    DVD player shipmentby region Source: “In-Stat”
  • 17.
    AdMob Mobile Metrics:August 2009 (ads called from the AdMob network) - Apple iPhone = number 1 handset on every continent in the world… - Except……
  • 18.
    AdMob Mobile Metrics (adscalled from the AdMob network) - Apple iPhone = number 1 handset on every continent in the world… - Except…… - Africa! - Africa: no1 = Nokia 3110, no2 = Samsung E250
  • 19.
    “Internet” access channels PC Web SMS Smartphone access to PC Web USSD Mobile applications Voice Mobile Web (WAP)
  • 20.
    Driving forces • Growth in data networks & coverage • Mobile data access charges • Content! • + handsets - price • Compliments – e.g. Mobile Wallets
  • 21.
    Business model/monetisation • Commerce • Transactions / financial services • Content • Advertising
  • 22.
    Positioning map ofusers of various media Age and Income Source: AMPS 2009 A
  • 23.
    7th Mass Medium Print Recording Cinema Radio TV Internet Mobile
  • 24.
  • 25.
  • 26.
    UK ad spend At the end of its third year of full commercial adoption in the UK (2000), online ad spend amounted to £153M That was 0.9% of UK ad spend
  • 27.
    In developing marketsmobile is the FIRST screen (and often the only screen)
  • 28.
    Mobile as amedium* 1. First personal mass media 2. Permanently carried 3. Always on 4. Built-in payment mechanism 5. Available at point of creative inspiration 6. Accurate audience measurement 7. Captures social context of media consumption * Tomi Ahonen
  • 29.
    “..available at thepoint of creative inspiration…”
  • 32.
    The consumer willpress 1 for more information and receive an SMS back with a link to the SA Unite portal.
  • 33.
    Hero, lead orsupport? • Media Display advertising • Direct Marketing Push messaging, lead generation • Integrated Marketing Interactive response channel for other media • Community Building and CRM
  • 35.
    Suzan calls Mike Ring She expects to hear Suzan listens to the Ring a ringing tone superimposed but hears an advertising ring advertising Tone 3-8 message instead seconds Now Playing Mike Receives benefits for allowing ads to be played on his ring back tone Messages Rotate The messages are rotated so each time the caller makes a phone call he/she hears a different A-Tone.
  • 36.
    In South Africaadvertising agencies are beginning to GET IT
  • 37.
    37 Agencies getting involved It is an area of massive potential in this market and we have invested resources because I believe OMD needs to take a leading role as the largest media agency in SA.” Josh Dovey CEO, OMD
  • 38.
    Size of theprize? Continental Africa: $8 Billion p.a. advertising spend* *estimate based on multiple sources including EIU, WARC and World Fact Book
  • 39.
    What will bespent on rate carded Mobile Advertising in RSA in 2010? $50 Million* *personal estimate (not yet validated by MMA) * Excludes push messaging and integrated mobile response
  • 40.