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Key Trends in Mobile Content Usage
& Mobile Advertising
February 12, 2009
Key Trends in Mobile Content Usage
& Mobile Advertising
February 12, 2009
Kevin Muoio
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AgendaAgenda
About comScore M:Metrics
Mobile Handset Landscape
Mobile Content Consumption
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Mobile Advertising Case Study
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M:Metrics Syndicated ServicesM:Metrics Syndicated Services
Direct behavioral measurement of themost active mobile media consumers.
Comprehensive market intelligence tohelp companies profit from mobile
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The who, what, where and when ofadvertising on the mobile web
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A RiddleA Riddle
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Capabilities:
1) Initiate phone calls2) Receive phone calls
Capabilities:
1) Too Many to Name
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Ubiquitous ComputingUbiquitous Computing
Always on always connected
Mobile consumers carry most / all of the time
Ability to view (Web, Photos, Videos, etc.)
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, , , .
Ability to share with other phones, web, etc.
Ability to interact with Advertising
Desktop document access
Etc. (oh yeah talk is still available)
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So if this is about ubiquitous computing and our mobile handsets
are so super powerful
Wh isnt mobile media a bi er market?
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Why isnt mobile advertising generating more revenue?
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Universe of Active Handsets in the USUniverse of Active Handsets in the US
Classics Still in useTODAY, 10 years later
Cutting Edge Devices
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Mobile Media Capabilities:
1) SMS2) Game*
*Snake - available on Nokia phones only
Mobile Media Capabilities:
1) SMS2) Games3) Ringtones4) Mobile Web5) Applications6) Email7) Picture Messaging8) Instant Messaging9) Video10) GPS
11) Music Playback12) Camera
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Universe of Active Handsets in the USUniverse of Active Handsets in the US
Feature Phones Smartphones
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Smartphones are11% of the US Market
Feature Phones make up 89% of the market,many of them are current devices, but plentyare also older, less capable handsets
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Smartphone Owners Doubled Last Year . . .Smartphone Owners Doubled Last Year . . .
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103% YoY Growth
* Mobile phone owners whose primary mobile phone runs Symbian, Windows,Android, Palm, RIM or Apple operating systems
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Smartphones Move from Geek to Chic
January 200545 models
November 2008166 models
Stubby antennas fashion objects
Expensive corporate tools $99-199 consumer gadgets
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. . . and Smartphones Drive the Mobile Audience. . . and Smartphones Drive the Mobile Audience
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iPhone Has Raised the Bar for ConsumersiPhone Has Raised the Bar for Consumers
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Increase: Text Messaging (+26% YOY)
Email ( +21% YOY)
Sent Photos (+49.2% YOY)
Sent Videos (+ 51.5% YOY)
News & Info Via Download (+13.2% YOY)
Watched TV (+ 19% YOY)
Consumption is Showing Signs of Evolving AsWe Move From Mobile 1.0 to 2.0
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.
Steady, or Slight Decline: Ringtones (-5% YOY)
News & info via browser, text alerts (-10% YOY) IM ( +5.5% YOY)
Fixture Evolutionary Nascent
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Applications growing quickly, but still lag Webconsumption by a large margin
Applications growing quickly, but still lag Webconsumption by a large margin
YoY News & InfoAudience
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Applications +98%
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Top 10 mobile web news brandsTop 10 mobile web news brands
Male Female
1. CNN 1. CNN
Top 10 Mobile Web News Brands, by Gender, UScomScore MobiLens, October 2008
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. .
3. Yahoo! 3. The Weather Channel4. The Weather Channel 4. Google
5. FOX 5. FOX
6. Google 6. ABC News
7. CBS 7. AOL
8. MSNBC 8. MSNBC9. ABC News 9. CBS
10. NFL.com 10. ESPN
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US Mobile Market SnapshotUS Mobile Market Snapshot
Overall growth of mobile subscribers slowing (+5% YoY)
Market is approaching saturation
Carrier growth dependent on winning customers from competitors Data services driving revenue growth
Continued increases in key drivers of mobile media
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Smartphones (100% growth in last year) Greater penetration of 3G / Mobile Broadband handsets (120% growth in last year)
Widespread use of mobile media
More capable devices setting the pace for the market Smartphone owners are mobile media Power Users
33% of news and information consumers access mobile content daily
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So Whats Going On in Mobile Advertising?So Whats Going On in Mobile Advertising?
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Mobile Advertising: Where are we on the Hype Curve?Mobile Advertising: Where are we on the Hype Curve?
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Advertising Being Embraced in Mobile
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Text advertising& marketing
Ad-supportedDownloadableApplications
Ad-supportedmobile video
112MMText Users
48MMMobile gamers
14MMMobile video viewers
[iLoop Mobile] [Greystripe] [Mywaves]
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PlatformIssues
No clear consensus on what consumers will/ will nottolerate
No definitive studies in the space around
consumer acceptance of ads, nor of the
effectiveness of mobile as a platform relative to
other mediums
Concerns around long term decreasing effectivenessof mobile advertising
Usage: No consensus on what key device features
needed for mobile to be a dependable advertising platform
User Interface: Proliferation of different designs of
handheld Interface, buttons, & keypads complicate Advertising
These variables multiply complexity & cost when itcomes to advertising on mobile devices
Various camps seeing the handset ad
model very differently, specifically
Overall Mobile MarketingA Market Place Still Largely Defined By Its Inhibitors
Overall Mobile MarketingA Market Place Still Largely Defined By Its Inhibitors
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Ad ModelIssues
MarketplaceIssues
ConsumerResponse Issues
Deal Structures NOT standard
Impact /effectiveness of campaigns
NOT measurable enough
Time to market NOT quick enough
NOT enough Standards
On-Deck vs.. Off-Deck
Carrier Lack of Flexibility (perceived)
As A Bran ing Too : Perceive va ue in
aggregating a quality audience for
advertisers, model/ value proposition similarto magazines
As A Direct Response Tool: Perceived value as atool to drive contextual, often location basedactivities
As a Marketing Tool: Perceived value is the phoneas an extension of other mediums, place to
finish conversations started elsewhere
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SMS Ads Consumer Interaction is SubstantialSMS Ads Consumer Interaction is Substantial
40,000,000
50,000,000
60,000,000
SMS Campaign Interaction
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Nov-07Dec-07
Jan-08Feb-08
Mar-08Apr-08
May-08Jun-08
Jul-08Aug-08
Sep-08Oct-08
Nov-08
S1
S2
Number of Mobile
Subscribers who received at
least 1 SMS advertisement
Number of respondents
0
10,000,000
20,000,000
30,000,000
For November 2008, 16% of mobile subscribers who receivedan SMS advertisement responded to at least one ad
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Mobile Subscriber interaction with Short CodesMobile Subscriber interaction with Short Codes
Short Code Interaction
Number of mobile
subscribers who8,000,000
10,000,000
12,000,00014,000,000
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responded to Poll or
Contest via Short Code
Number of respondents to
Advertisement via Short
Code0
2,000,000
4,000,000
6,000,000
Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-
08
Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08
In November 2008, over 13MM responded to a poll or contest (6% of mobile market)while over 6 million responded to an advertisement via short code (3%)
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Mobile Web Drawing Diverse AdvertisersMobile Web Drawing Diverse Advertisers
Advertiser by Sector, Oct. '07
2.4%
2.3%
2.2%
1.6%
1.4%
Diversified Banks
Automobile Manufacturers
Specialized Consumer Services
Consumer Electronics
IT Equipment
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29.4%
13.5%
11.5%
10.8%
6.2%
5.3%
.
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Content Provider
Internet Retail
Wireless Telecommunication
Services
Application Software
Broadcasting & Cable TV
Communications Equipment
Share of 67,021 Ad Instances
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Proctor and Gamble December Display AdsProctor and Gamble December Display Ads
Over 300 different creatives
Product Advertised: Covergirl Wetslicks, Always Infinity, Dayquil, and
Nyquil
English and Spanish language campaigns
Ads ran on over 70 of the 400 mobile websites MMetrics monitors
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CASE STUDY: GreystripeBackground and ObjectivesCASE STUDY: GreystripeBackground and Objectives
Greystripe operates the world's first in-game mobile ad network and theworld's first ad-supported mobile game distribution platform. Greystripegives brands the ability to target the iPhone audience for the first time
through rich media ads. The objective of this study is to measure the impact of the Axe Dirty
Night Determinator campaign running on the iPhone.
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Interacting with the Flash ad significantlyincreases purchase intentInteracting with the Flash ad significantlyincreases purchase intent
% who would consider purchasing Axe
By Gender
Lift +15% Lift: +25%
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52% 48% 48%
Male Female Male Female
Q4. Which of these mens shower brands, if any, would you consider purchasing? % selecting Axe
Base: Test N=2447. Control N=943. Exposed No interaction N=2321. Exposed Interacted N=126Indicates significant difference at 95% confidence
The campaign was
most successful at
increasing purchase
intent among males
Control Test
Lift +2
% Lift: +3%
Lift +13
% Lift: +21%
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Questions?Questions?
Thank you!
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Kevin [email protected]