The State of Mobile: Key Emerging Digital Trends

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The State of Mobile Key Emerging Digital
Trends
Evan Neufeld VP Sr. Analyst MMetrics, the
mobile market authority
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MMetrics The Mobile Market Authority
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1 Still Only 24 Hours in a Day Fighting for
Consumer Mindshare in an Increasingly Fragmented
Environment

• Media Consumption Evolution
• Death of mass marketing
• Need to understand multi-modal consumption
• 360 campaigns to become more the rule than the
  exception
• Decreased Impact of Advertising
• Over-messaging endemic
• Need to rise above the clutter via improved
  messaging and targeting
• The Era of Consumer Control
• More savvy consumers demand fair exchange for
  value

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2 213mm Counting Mobile Penetration to Grow
43 by 2011
43 WW
Source Nikkei Electronics Asia -- March 2007
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3 Mobile Phones A Uniquely Personal
Portable Connection to the Digital World
As convergence disrupts multiple sectors, the
mobile phone emerges as the key personal
connection to the digital world.
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Driven by device evolution, speed, and developing
business models, the mobile phone is moving from
being just a portable phone ..
. to becoming a mobile communication and media
management platform
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4 Moving from Mobile 1.0 to Mobile 2.0 Key
Characteristics

• Ubiquitous
• Indoor plumbing penetration levels of phones
• Consumers are incorporating the Mobile Web into
  the fabric of their daily life. In the US
• Passed 24 million consumers using mobile
  browsers in Q4 06
• Those who engage are active, frequent users
• 56 turn to mobile daily and weekly for news and
  information
• Devices getting more sophisticated
• Business model proliferation experimentation

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Popular Mobile Content Mirrors Popular Web
Content Immediate, Necessary On-the-Go
Monthly users accessed weather info (3-month
average ending June-07)

• Weather information is the top destination on
  mobile browsers in the US 44 of those who use
  their mobile browser in the US (4.8 of all
  mobile users) access weather info sites.
• However, it leads by a slim margin. Top U.S.
  browsing genres
• Category Users of browser users
• Weather 10,272,251 44
• Search 10,108,453 43
• News 9,919,201 42
• Sports Info 8,861,845 38
• Ent. News 7,718,528 33

3 month avg ending JUL 2007
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However, Consumption Is Showing Signs of Evolving
..

• Q1-07 to Q2-07 changes
• Increase
• SMS, photo and video messaging, email
• News info via applications
• Ringbacks
• Sideloaded music
• Steady, or Slight Decline
• IM
• News info via browser, text alerts
• Ringtones, graphics
• Carrier music downloads, programmed video
• Played games, downloaded games

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Paradigm Shift Anyone?

• Mobile 2.0 Activities Pick Up
• News 2.0 Downloading of News Info Applications
  grows
• Viral 1 in 10 mobile subscribers
  creating/sharing content today.
• UGC on The Rise Some of the highest growing
  consumption categories involve user-generated
  photo and video sharing via MMS, email, or
  uploading to sites.
• Old Business Models Disrupted Homemade
  personalization (ringtones, graphics) is taking
  the place of purchased personalization with the
  exception of ringbacks.
• PC Integration Tracking to the proliferation of
  music-enabled handsets, listening to ones own
  music collection (transferred from a computer) is
  experiencing much faster uptake than downloading
  from a carrier music store.
• Mobile Video Nascent but Growing From 2.6 In
  Jan 07 - 3.9 on Sept 07 Current usage
• Any Type of Video 8.2 million Users as of Sept
  07
• Viral 7.1 million watched videos sent by family
  or friends
• Key Content Categories News, Sports, Weather
• Utility Communication Categories Growth Driven
  by New Devices Multimedia functionality drives
  adoption and next generation services
• 50 own camera Phones
• 1 in 5 Own Music Phones
• Music phones were the fastest-growing handset
  category, increasing a whopping 239

Category Reach Growth
Year Over Year Growth Q2 06 - Q2 07
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5 What is Holding Us Back in Driving Us
Forward

• Pricing
• iPhone vs. Blackberry
• Bandwidth
• Consumers want to drink from the hose
• Devices
• Better devices more usage
• Subsidization
• The ad card

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Pricing Consumers Getting Nickel and Dimed to
Death
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The Broadband Effect 19 3G Penetration (and
Climbing) But we already knew that mobile
broadband Is a game-changer
3 month avg ending JUL 2007
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Usage Smartphones Provide 400-800 Lift
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How Do We Get There? Five Key Requirement for
Effective Mobile Advertising

• It must lend self to targeting
• It must accommodate a wide range of marketing
  activities and pricing / inventory models
• It must allow for optimization management of
  campaigns
• It must provide clear , concise and actionable
  reporting
• Must provide value back to consumers

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Thanks
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The (nearly) Ubiquitous Device Global, with
Significant Variance by Market Place.
Select consumer penetration measures, US EU
3 month avg ending AUG 2007