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Webinar Presentation ILM:10 Preview — The Impact of Mobile on Local Nov. 3, 2010 0 Proprietary and Confidential. Copyright © 2010 BIA /Kelsey. All Rights Reserved.
Webinar PresentationILM:10 Preview — The Impact of Mobile
on Local
Nov. 3, 2010
0Proprietary and Confidential.Copyright © 2010 BIA /Kelsey. All Rights Reserved.
Welcome and Intro to Today’s Speakers
Special Guest Speaker:
Gilli H lt i Matt BoothGillian HeltaiDirector, comScore
Matt BoothSVP and program director Interactive Local Media BIA/Kelsey
Peter Krasilovsky
BIA/Kelsey
Michael BolandPeter KrasilovskyVP and program director Marketplaces, BIA/Kelsey
Michael BolandProgram directorMobile Local MediaBIA/Kelsey
1© 2010 BIA/Kelsey
Agenda
• ILM:10 Preview (Krasilovsky, Boland)• Analysis: Local Media Shift (Booth)• Analysis: The Move Towards Mobile (Boland)
S M bil R h d A l i (H lt i)• comScore Mobile Research and Analysis (Heltai)• Q&A and Discussion (Krasilovsky)
2© 2010 BIA/Kelsey
Webinar: ILM:10 Preview — The Impact of Mobile on Local
• Mobile, location-based services and local cross over in th ld f i t ti l l dithe world of interactive local media.
• In the past year, mobile and LBS have rapidly developed. They have become integral in the researchdeveloped. They have become integral in the research for our 5 research programs:1. Interactive Local Media2 M bil L l M di2. Mobile Local Media3. Marketplaces 4. Yellow Pages5. Digital Strategies for Broadcasting
3© 2010 BIA/Kelsey
Mobile/LBS Is Core to ILM:10 Focus on Innovation, Development, Networking, p , g
“There are many ways to measure innovation, but the most l t l d ti k l d th j b th t thelemental yardstick revolves around the job that the
technology in question lets you do.”
Steven Johnson, Author, “Where Good Ideas Come From,” ILM:10 Keynoter, Day 3
4© 2010 BIA/Kelsey
ILM:10 Key Drivers of the Use of Technologygy
At ILM:10, mobile is presented in context with the driving f f i t ti l l di i l diforces of interactive local media, including:
• Transition of traditional media• Transition of traditional media• Localization of national brands• Reputation managementp g• Local content creation• Geolocation• Pure pay for performance (deal a day, et al) • SMB sales
5© 2010 BIA/Kelsey
ILM:10 Headliners
Headliners at the show include:• Jeremy Stoppelman, CEO, Yelp• Matt Idema, VP, Local, Yahoo
E K h P id t CBS L l Di it l M di• Ezra Kucharz, President, CBS Local Digital Media• Spencer Rascoff, CEO, Zillow• Jim Sampey COO Cox Target MediaJim Sampey, COO, Cox Target Media
6© 2010 BIA/Kelsey
Company Spotlights
• This year, we are introducing unique Company S tli ht ith th i t l l ti G lSpotlights with their top local executives. Google, Facebook and Pandora are featured.
7© 2010 BIA/Kelsey
Mobile SuperForum
Introduction and BIA/Kelsey DataMike Boland, Analyst, BIA/Kelsey
Featured AddressZaw Thet, CEO, 4Info
Evolution of Mobile Local: The LeadersSurojit Chatterjee, Senior Product Manager, GoogleMatt Galligan, CEO, SimpleGeo Evan Tana, Director, Product Management, ShopkickAlistair Goodman, CEO, Placecast
Mobile Ad Targeting: The MetricsWalt Doyle, President and CEO, WHEREGreg Hallinan, CMO, Verve WirelessCraig Hagopian, CMO, xAdDan Ruby, Director of Research, ChitikaDan Ruby, Director of Research, Chitika
Innovation in Mobile Products: The DemosMartin Herbst, GM, eBay ClassifiedsAdrian Ochoa, President, AvantarKy Tang Director of Marketing TeleNav
8© 2010 BIA/Kelsey
Ky Tang, Director of Marketing, TeleNav
Speaker: Matt BoothSVP and program director
Interactive Local MediaInteractive Local MediaBIA/Kelsey
Local Ad Market Currently Dominated by Traditional Mediay
ERPM*
2010 U.S. Local Media Revenues — $133.3 Billion
Cable4.1%
Magazine2.4%
Online / Interactive 6.9%
ERPM0.8%
Mobile0.3%
Newspapers18.9%
Yellow Pages8 3%
OOH4.9%
Radio10.8%
8.3%
Direct Mail28.7%
TV13.9%
*ERPM = E-Mail, Reputation
10© 2010 BIA/Kelsey
Digital revenues associated with traditional media (e.g., Web sites associated with local TV stations, local radio stations, newspapers and magazines) are included in the revenues for the traditional media. Revenues for Internet Yellow Pages that are associated with print Yellow Pages are included in the overall Yellow Pages media category.
ERPM E Mail, Reputation and Presence Management
Local Media Five-Year Forecast
Total Local Ad Spend$156.3
$145.2$150.0
$160.0
s
$130.6$133.3 $133.2
$137.3$140.2
$130.0
$140.0
US
$ B
illio
ns
$120.0
$100.0
$110.0
2008 2009 2010 2011 2012 2013 2014
11© 2010 BIA/Kelsey
2008 2009 2010 2011 2012 2013 2014
Note: Numbers are rounded.
Steady Shift Toward Digital Media
$160 0
$180.0 2009-2014CAGRs:$156.3
$15.5
$15.5 $19.6 $23.0 $26.8 $30.9 $35.2 $120.0
$140.0
$160.0
s
Total MediaCAGR 2.1%
$130.6 $133.3 $133.2$137.3 $140.2
$145.2$156.3
$140 8$80.0
$100.0
US
$ B
illio
ns
Traditional Media
CAGR -0.9%
$140.8 $115.1 $113.6 $110.2 $110.4 $109.3 $110.0
$20 0
$40.0
$60.0 Online/
Interactive Media
CAGR 17.4%
$0.0
$20.0
2008 2009 2010 2011 2012 2013 2014
12© 2010 BIA/Kelsey
Traditional Online/Interactive
Note: Numbers are rounded.
Local Media Five-Year Forecast
160.0
$145.2Media and CAGR ’09-’14
15.5 19.6 23 0 26.8 30.9 35.2 120 0
140.0 Total Media +2.1%
Digital +17.8%
$130.6 $133.3 $133.2$137.3 $140.2
$145.2
15.8
13.3 13.9 14.3 14.7 15.2 15.8
23.0
100.0
120.0
Radio +3.4%
Broadcast TV +2 9%
US$
Billi
ons
10.9 9.0 8.3 7.9 7.6 7.2
15.8 17.9
16.7 18.0 17.4 18.2 80.0
Broadcast TV +2.9%
Yellow Pages -7.8%
49.8 50.5 50.8 51.5 51.8 52.6
25.3 22.3 20.1 18.4 17.3 16.2
40.0
60.0
2009 2010 2011 2012 2013 2014
Newspapers -8.6%
Other Local Media +1.1%
13© 2010 BIA/Kelsey
Note: Other Local Media includes: OOH, Magazines, Direct Mail and Cable TV.
2009 2010 2011 2012 2013 2014
Newer Businesses Much More Oriented to New Media
Use of Print Yellow Pages vs. Twitter(by Age of Business)
SMBs That Intend to Create a Page on a Social Networking Site
Overall average @ 32%
Twitter: Overall 9%
14© 2010 BIA/Kelsey
Source: Local Commerce Monitor Wave XIII August 2009 (Sample: 302). Methodology: Online. Cosponsor: ConStat.
U.S. Non-Search Engine Growth
• Non-search engines show strong yearly search growth from June 2009, with leading growth rates for Facebook and Amazon
Non-Search Engine Searches (Millions) Change vs. Change vs. Jun-09
-8%-8%
+210%+210%
+6%+6%
-56%-56%
+46%+46%Facebook site re-design
Source: TMP (15 Mile) // comScore
15© 2010 BIA/Kelsey
Source: comScore qSearch 2.0 Total US Internet Searchers
Source: TMP (15 Mile) // comScore
Speaker: Michael BolandSpeaker: Michael BolandProgram director
Mobile Local MediaBIA/K lBIA/Kelsey
Mobile Local Ad Spend: Five-Year Forecast$2.50
$2.02$2.00
s
$0.98
$1.40
$1 00
$1.50
US
$ B
illio
ns
$0.40
$0.69
$0.50
$1.00
$0.21
$0.002009 2010 2011 2012 2013 2014
17© 2010 BIA/Kelsey
2009 2010 2011 2012 2013 2014
Note: Numbers are rounded.
Mobile Advertising: Where’s It Happening?
• Majority of the roughly $800 million U.S. mobile ad d i b d d ti d ispend is brand advertisers and agencies.
• Market evolutions: move toward local– Better geotargeting for national brands (national – local)Better geotargeting for national brands (national local)– More adoption by SMBs (local – local)
18© 2010 BIA/Kelsey
How’s It Happening?
• How SMBs adopt mobile is the big question.• It’s mostly free; get the ball rolling:
– Yellow Pages bundling– Online players (i e Yelp)Online players (i.e., Yelp) – Google AdWords– Mobile local ad networks (i.e., CityGrid, Where)
LBS ti (i F G )– LBS, promotions, coupons (i.e., Foursquare, Groupon)
19© 2010 BIA/Kelsey
Important Questions
• Will the Foursquares of the world be able to scale with “ lf ” SMB d ti i ?“self serve” SMB advertising?
• Is low penetration and high churn of SMB search advertising a harbinger for the segment’s adoption ofadvertising a harbinger for the segment s adoption of mobile and LBS?
• Will the excitement about discounts and customerWill the excitement about discounts and customer acquisition (i.e., Groupon) push advertisers into location-based mobile promotions and coupons?
• Who is best positioned for SMB mobile advertising?
• What does Google’s mobile revenue disclosure ($1 billi t ) f th i d t ?
20© 2010 BIA/Kelsey
($1 billion run rate) mean for the industry?
S k Gilli H lt iSpeaker: Gillian Heltai Director, comScore
41.7% of US Mobile Phone Owners Browse the Mobile Internet, Use Applications or Download Content (Mobile Media Users)(Mobile Media Users)
• ‘Just Voice’ users dropped 5.5 percentage points in the past year.
Th d i SMS t ti ( t bil di ) d t t th d d• The drop in SMS texting (not mobile media) demonstrates the dependency on and increasing use of mobile media.
22© 2010 BIA/Kelsey
Mobile Media = Connected Media (except SMS) in MobiLensProduct: MobiLens
Data: Three month average ending Aug 2010
Country: US
34% of Mobile Owners Now Browse the Mobile Internet
• There are 22 million more mobile Internet browsers in August 2010 vs. August 2009.
• Social networking is showing the highest growth at 77% YoY; IM users are growing 31% YoY.
Mobile Internet Trends
23© 2010 BIA/Kelsey
Product: MobiLens
Data: Three month average ending Aug 2010
Country: US
Mobile Ad Campaigns Keeping Pace With Growth of Inventoryy
• The number of products advertised has increasingly picked up in 2010.
Mobile Browsers vs Products AdvertisedMobile Browsers vs. Products Advertised
24© 2010 BIA/Kelsey
Product: Ad Metrix Mobile
Data: June 2010
Country: US
Mobile Banner Advertising Is Suited to All Brands Targeting Audiences Under 34g g
• Well over half of mobile users under the age of 34 are accessing mobile media from their device.
% of Mobile Media Users by Age and Gendery g
M bil M di C t d M di ( t SMS) i M biL
25© 2010 BIA/Kelsey
Product: MobiLens
Data: Three month average ending Aug 2010
Country: US
Mobile Media = Connected Media (except SMS) in MobiLens
Brands Can Choose a Number of Methods to Start a Dialogue With Consumers Using the Mobile Device
• Short codes can prompt consumers to send an SMS for more info / prize, etc.67% of mobile owners use SMS.26% of the market receives an SMS advert in a month26% of the market receives an SMS advert in a month.
• Banner and text ads on mobile Web sites and in applications reach a large audience.41.7% of the market use mobile media where these ads could be placed.
• Branded apps can be createdBranded apps can be created. 32% use an app.
Methods of Interacting
26© 2010 BIA/Kelsey
Product: MobiLens
Data: Three month average ending Aug 2010
Country: US
Visitation to Coupon Sites via Mobile is Taking OffgUnique visitation to coupon sites via mobile phone increased by 20x YoY.
Visitation increases to coupon sites via online is much lower at 14% YoYVisitation increases to coupon sites via online is much lower at 14% YoY, suggesting that much of local deal searching is shifting to mobile.
27© 2010 BIA/Kelsey
Product: Mobile Metrix [includes Browser Usage Only for Smartphone OS-Palm, Microsoft, Symbian, RIM, Android]
Data: Aug 2010
Country: US
Top Genre for Mobile Internet Browsing Is Search With 41% Reach, Whereas Application Access Is Led by Maps With 22%Maps With 22%
41%45%
Top Genres for Mobile Local ContentC i ti d41%
36%
31% 30%
24% 24%
30%
35%
40%Communicating and SharingOther
1st Bar- Browser2nd Bar- Application
24% 24%
20% 19% 18% 17% 17%16% 15% 13% 13% 12%
10%23% 22%10%
15%
20%
25%
12%18%
11% 9% 7% 7% 5% 6% 8% 7% 4%8%
5% 4%8%
0%
5%
10%
28© 2010 BIA/Kelsey
Product: MobiLens
Data: Three month average ending Aug 2010
Country: US
Social Media Is Breakout Category With 52.7 Million Unique Visitorsq
• Total mobile audience accessing mobile social networking increased 77% YoY, and audience accessing every day increased by 89%.
• Everyday users constitute 48% of all users• Everyday users constitute 48% of all users.
Mobile Social Networking Trend
29© 2010 BIA/Kelsey
Product: MobiLens
Data: Three month average ending Aug 2010
Country: US
Future of Mobile Social Media Is Bright –Smartphone Growth Alone Will Propel Usagep p gToday: 24% Smartphone reach, 55% Social Networking reach 53MM users
2013: 50% Smartphone reach , 55% Social Networking reach 84MM users
Present: 234 Million Mobile Audience 2013 (Est.) : 250 Million Mobile Audience
P t ti l T t l S i l N t ki Sit U 84 3 MilliT t l S i l N t ki Sit U 52 7 Milli
30© 2010 BIA/Kelsey
Product: MobiLens
Data: Three month average ending Aug 2010
Country: US
Potential Total Social Networking Site Users: 84.3 MillionTotal Social Networking Site Users: 52.7 Million
Mobile Isn’t an Afterthought — It’s Core to Social Experiencep
• Social networking reach via mobile increased by 60% YOY catching up to online reach of 88.4%.Vi it i i bil f tl T itt i it• Visitors are accessing via mobile frequently; Twitter visitors are on mobile more frequently than online.
31© 2010 BIA/Kelsey
Product: Mobile Metrix [includes Browser Usage Only for Smartphone OS-Palm, Microsoft, Symbian, RIM, Android]
Data: Aug 2010
Country: US
What’s Next for ‘Local Networking’?
32© 2010 BIA/Kelsey
Conversation Continues at ILM:10
Interactive Local Media 2010 (ILM:10)• Interactive Local Media 2010 (ILM:10) – Unique, three-day mega-conference focused on local – The true innovators from:
• Local media Special OfferLocal media • Local directories• Local search • Local mobile • Local social
pWebinar attendees who have not yet registered for ILM:10,
register with promo code ILM10WEBINAR to receive $200 off price.
www.kelseygroup.com/ilm2010• Local social• Local direct marketing
– Two Mobile SuperForums: • SuperForum 1 will cover the waterfront on mobile local media.
ILM:10 will be the most important conversation about local this year.
33© 2010 BIA/Kelsey
• SuperForum 2 will drill down on deal-a-day offers/pure pay-for-performance.
Thank you for attending today’s presentation.Thank you for attending today s presentation.On-Demand Webinar
All attendees will receive a follow up e-mail within 24 hours with a link to an on-demand version of this webinar.
Follow-Up InformationQuestions on anything you heard today? Contact [email protected] or (703) 818-
2425 and your inquiry will be directed to the appropriate person.y q y pp p p
Special Offer ReminderWebinar attendees who have not yet registered for ILM:10 may register withWebinar attendees who have not yet registered for ILM:10 may register with
promo code ILM10WEBINAR to receive $200 off price.
www.kelseygroup.com/ilm2010
34Proprietary and Confidential.Copyright © 2010 BIA /Kelsey. All Rights Reserved.
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