Sport, technology and mobile mediaApril 2, 2009

1

A strong focus on looks, sex and health in an ever more egofocused society shifts people towards individual sports

Note: People not doing sports claim lack of time as the primary cause for not being active.The higher the education, the more active you are

Source: The Danes’ Sports Habits 2007

200719981993198719751964

FishingBowling

GolfDancingSpinning

BadmintonSoccerCycling

SwimmingAerobic

Gymnastics

RunningWalking

Fitness

Top 15 sport activities among adultsPer cent

Share of Danish adults doing sports regularlyPer cent

Men

Women1

Mobile phones will be the most important media platform of our time2Mobile vs. TV penetration by region 2000-2008

Global internet ad revenues 2007-2011

$US

D B

illio

n%

TV

pen

etra

tion

% mobile penetration

G7CISMideastEast AsiaSouth AsiaAfrica

MobileinternetStandardinternet

• Mobilepenetrationhappens at a lotfaster rate thanTV ever did

• In some parts ofthe world, mobilepenetration hasalreadysurpassed TV

• Mobile internet adrevenue isgrowing rapidly

Source: The promise of ubiquity; Portio research

Virtual communities are all over the place.... (1/2)Community landscape

Size

, mill

ion

user

s

Friends Dating Cultural Gaming& videos

Sports Virtuallife

Profes-sional

10-2

525

-50

50-1

0010

0+

The valueis in thevertical

Primary focus

Note: Nike+ really doesn’t belong on this list, as their user uptake is too lowSource: Press and general internet search

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..and they offer real value to their users (2/2)

Source: The web; The Economist; BusinessWeek

3Consumer value add

Facebook• Makes it easy to stay in touch and keep

yourself updated on especially yourcasual contacts by congregating data

Flickr• Makes it easy to share

photos/experiences with the world

YouTube• Makes it easy to video broadcast your

life and share it with the world

Twitter• Makes it easy to follow people’s status

updates and see what’s happening outthere, right now

Common denominatorFundamentally, theyprovide a services thatget better the morepeople that use them

Key levers for building virtual communities

General• Build from local to international, not the other way around• Shareability rocks• Seamless integration between web and device• Verticality rules• Give them a hit singleSpecific for sports communities• No distinction between the participator and the spectator• Standard disciplines are transforming into personalized activities• Forget the sport only focus - it’s all connected

Source: The web; BusinessWeek;

Looking at virtual sports communities, major brands are tapping into thetrend, but the top down approach will not make it in the community world

• Shoe sensor connected to arm band or iPod nano• Running• Global competitions are a key feature

• Community for Garmin products• All sports• Extensive analysis of own data is a key feature

• GPS tracker for Nokia phones• All sports• Sharing of tracks is a key element

• Shoe and pulse sensor connected to Adidas/Samsung phone• Running• Personal tracking and coaching are primary features

So where is the value?

• Flexible• Easy to use• Cheap

• Interesting customer segment• Marketing channel• Maybe even enhance their product

• Motivator for employees• Assurance companies

• Data traffic• Customer retentionTelcos

Health industry

Sports brands

Users/Customers

Relevant formobile services

How do you monetize virtual sports communities?

Give themyou hit singleand profit onthe record

Freebies rule the onlineworld - give them whatthey want and monetizelater

Offer it for free

There’s no suchthing as a free lunch,it’s a product - sell it!

Pay Freemium

Source: Business week

Endomondo makes it much more fun to be active!

Our concept creates an interplay between virtual networks and real lifesocial interaction by using the mobile phone as the key device

Start Endomondo on yourmobile while you exercise.Your workout data is auto-matically uploaded live whileyou exercise

While you are out there, friends canfollow you online. Afterwards, youcan log in to your personal profileand view the track, speed profile etc.

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3

Sign-up atwww.endomondo.com anddownload the Endotracker toyour mobile

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Endomondo solves the basic needs for the users and makes social whatused to be individual

The Endomondo user...

• Would like to be moreactive

• Flexibility is animportant factor whenchoosing sport

• Demand of socialinteraction inconnection with sport

• ”Bragging” about levelof physical activity orjust showing results toothers

The individual moremotivated to be active,...

... through user-generatedcompetitions andinteractions with hisnetwork in connection withthe sport...

...and additionally, the usercan broadcast hisperformance throughamongst other things thelive map in connection toevents

Endomondo make...

In sum, theessence is thatEndomondo letsyou do somethingtogether that beforeyou were doing onyour own

RESULTS FROM PILOT

So does it work? Yes, it doesPhysical activity per week, hours

Change

+28%

+13%

+148%

+25%

+30%

Before the project Throughout the project

120 employees at The Copenhagen Municipality had access to Endomondo for three months

Both active and inactive participants increased physical activity level - inactive by factor 2,5

Note: Based on a project with The Copenhagen Municipality in fall, 2008.