BBAA CONFERENCE 2011

MAYBE MOBILE?

2

VIRTUOUS CIRCLE FINALLY CATCHING ON

3

SMARTPHONES CAN DO EVERYTHING

Inte

rnet

Use

rs (b

ln)

Source: Broker Research

Shift to Smartphones Mobile Internet Users Overtaking Desktop

Diverse Content Consumption on Mobile Devices

4

GROWTH SEEMS TO BE EVERYWHERE

($ b

ln)

Source: Gartner

CAGR 46%

($ b

ln)

Source: Juniper Research; Internal analysis

CAGR 41%

* Excluding NFC and other forms of mobile proximity

Source: Yankee Group, Informa, MEF, Internal analysis

(€ b

ln)

CAGR 11%

Global Mobile Entertainment – D2C Global Mobile Marketing Spend

Global Number of Mobile Subscribers Global Mobile Payment*

2,1

32

2,5

21

2,8

57

3,1

56

3,4

17

3,6

44

3,8

38

678 785

889

989

1,0

76

1,1

56

1,2

28

500

518 531

541 549

557 563

494

535 574

608 638

664 687

538

560

585 601

613 623

630

314

335

352 368

382 395

406

4,656

5,255

5,787 6,263

6,675 7,038

7,352

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2009A 2010A 2011F 2012F 2013F 2014F 2015F

Mo

bile

Su

bsc

rib

ers

(m

illio

n)

5

BUT COMPLEXITY IS HIGH

Android is Catching Apple in Operating System Market Share

Worldwide Mobile Market Share by Operating System (2009-2012)

Source: Broker ResearchNote: Relates to smartphone only

Source: AdMobNote: Relates to both smartphone and featurephone

Massive proliferation in devices and operating systems

Consolidation in to one portable device is not happening – quite the opposite!

Launching content and services in to this spaghetti of technology is expensive and difficult

Massive competition as operators, handset vendors, retailers and media groups fight for share

6

HTML5 WILL CHANGE APP LANDSCAPE

Mobile Browser Internet vs. Apps – Share of US Mobile Subscribers*

% of Apps Developed for a Native Platform

Source: Gartner

Mobile internet browsing is the most popular feature on smartphones

HTML5 is a disruptive standard with many advantages over Apps for graphics, video and UI

Users will not need to download to have a seamless app-like experience via HTML5

HTML5 also offers more opportunities for mobile payments

HTML5 will drive the explosion of mobile entertainment, marketing and commerce, reducing the impact of Apps in the mobile world

Source: comScore Feb 2011*Excluding Text Message

iPhone, Safari browser

Alternative platforms and browsers (e.g. Android)

HTML5 working subset stable

Web app stores

4G connectivity

MILESTONES

Decreasing reliance on Apps developed for Native Platforms such as iOS

7

MOBILE PAYMENTS – EXCITING BUT CROWDED SPACE

Mobile BankingHandset Contact

Mobile Payments

Remote Mobile Payments

P2P Mobile Payments

Mobile Finance

Providers

/ Zetawire

8

MOBILE AD NETWORKS – NEW ENTRANTS SHOW PROMISE

9

EBOOKS – OPPORTUNITIES IN SOFTWARE STACK

HUGH CAMPBELLPARTNER0207 101 7566HUGH.CAMPBELL@GPBULLHOUND.COM