Profiling the Mobile Internet User

Monetising Mobile

London, 28 Sep 2010

KF Lai

CEO, BuzzCity

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Mobile Internet Booms in South Africa

World Wid Worx : 2010

1. Mobile Internet in SA appears to be driven more (now) by specific apps (MXit, Facebook) rather than browsing from the mobile

2. A majority of mobile phone users have internet capable devices and apps but are not using them either due to cost concerns or ignorance

3. 60% of phone users have internet browsing capabilities, but only 21% of them do

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Favourable Conditions for Mobile Internet

1. Low PC ownership and access2. High mobile penetration3. Mass market pricing for mobile

data – flat or quasi-flat rate

The “Unwired”

A new, unique audience emerges

An INTERACTIVE medium

Knowledge workers(Computer + Phone)

Upper-Middle Class Non-Knowledge Workers (Blue Collars)

Emerging Markets

1. Mobile phone as a second internet device

2. But increasingly spend more Internet time on mobile

1. Mobile phone as the primary internet device

2. Markets with low PC penetration, high mobile penetration and low data rate

3. Started with feature phones, but these consumers are moving to smart phones with price drop.

4. Large opportunities may lie outside major urban centers, eg. tier-2 cities

Market Segments

“Unwired”

BuzzCity is a mobile media company offering brand owners and agencies

access to a global advertising network on the mobile internet

The network is made up of publishers from across the world and BuzzCity’s own mobile media

properties

BuzzCityAd Network

Advertisers

Publishers

- Communities- 200 languages- 5 million members

BuzzCity Sites- Aggregate & Syndicate

- Free mobile games- 6000 games- 100 developers

- Recipes - Indie musicians / bands- GIG schedules

- Unique audience to advertisers- More options, eg. sponsorships- Deep consumer insights

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BuzzCity Mobile Gaming Survey – July 2010

• 1,417 respondents from 10 countries• 9 out of 10 mobile surfers download and play games• Regularity in discovery and consumption of games• Graduated from quick-to-play games (Tetris, Solitaire)

and look for sophisticated plotlines in Adventure, Action, Sports or Racing themed games

• Mature in age and 29% women• Developers may not be catering to these users as 13%

can’t find the games or applications they are looking for• Game play dominated by feature phones by Nokia,

Samsung and Sony-Ericcsson

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BuzzCity Mobile Money Survey– February 2010

• 1,798 respondents from 12 countries• 90% of mobile users have purchased products or

services using their mobile phone• 47% did not know whether their banks offered banking

services; 15% aware but had not taken it up• 68% purchase are related to mobile phone use (mobile

content and prepaid air time)• 23% bought from online stores, paid a bill, bought

prepaid utilities and made bookings via mobile• Clear opportunities for mobile transaction to grow• 29% of global mobile population are without access to a

bank account and 56% withouth a credit or debit card

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Who Uses the Mobile Internet -- January 2009

• 3,407 respondents from 14 countries• Mobile surfers are NOT on the move. 70% are at home when

they go online on mobile.• 60% list communication (chatting, blogging, discussion groups

and forums) as the main reason for going online• 16% use mobile Internet for entertainment: play games, listen to

music and watch videos• 10% stay up-to-date with current affairs• 87% surf at least once a day, 50% go online more than 5 times a

day, more than 60% spend more than 30 minutes each time they log in

• Usage is throughout the day; most popular in early evenings and continues pass midnight. Least popular during lunch hour.

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What have Marketers been doing?

Vodacom World Cup (Apurimac) TopTV (PageThreeMedia)

Old Mutual (Brandmobile)

Nokia (Isobar)

Mobile VAS

Adidas (Isobar, India) -- World Cup app on Djuzz

BlackBerry (PhoneValley, India) -- targets Windows/Symbian

Djarum (Bubu Chikka, Indonesia)

-- Download-- Usage-- Engagement-- Recall

Case Studies – Samitivej Hospital, Bangkok

Doctor on Mobile

Mommy AlertVaccine Alert &Baby Memory

The Mobile Internet Report, Morgan Stanley, Dec 2009

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Summaries

1. With lowering cost of ownership (handset and data rate), large number of users are surfing on mobile Internet.

2. The activities are increasingly going off-portal.

3. Besides major urban centers, opportunities may lie in second tier cities.

4. Publishers can move contents to mobile Internet to capture the eyeballs and ad dollars.

5. Marketers and brands can also exploit the opportunities to reach this new audience, the “Unwired”, interactively.