A STUDY FROM THE BY MARCH 2008

WHAT IS
MOBILE
MARKETING?

CHAPTER 1
 3 | 87

WHAT IS MOBILE MARKETING?

NO. WRONG.
 4 | 87

WHAT IS MOBILE MARKETING?

 MAIN
TEACHINGS

CHAPTER 2
 THE
DREAM
MEDIUM?

SECTION 2-1
 7 | 87

MOBILE IS KEY

Mobile is our second shadow

 8 | 87

MOBILE IS PERSONAL

Always attributable to one single person

 9 | 87

MOBILE IS UBIQUITOUS

One screen to unite them all

 10 | 87

MOBILE IS IMMEDIATE
 11 | 87

MOBILE IS LOCALIZABLE
 12 | 87

MOBILE IS A GREAT DIRECT MARKETING TOOL

 13 | 87

MOBILE PROVIDES A WIDE RANGE OF MARKETING TOOLS

SMS MMS Web Bluetooth Location QR Codes

or Text Multimedia Based Quick
Message
Short
Service
Marketing Response
Barcodes
Message
Service
 14 | 87

MC DONALD’S MASS MARKET SWEEPSTAKE

CANNES SHORTLIST 2006

Send a text message and get your gift within seconds

1.5 million participations in 5 weeks
 15 | 87

VODAFONE’S SECRET CONCERTS

 16 | 87

BBC WORLD’S INTERACTIVE BILLBOARDS

OUTDOOR GOLD LION CANNES 2007 + BEST OF SHOW OBIE AWARDS 2007
 17 | 87

BLUETOOTH BILLBOARDS FOR COLDPLAY’S LATEST ALBUM

 MOBILE
ADVERTISING IS
NO HEAVEN YET
(RATHER A VERY PROMISING
PURGATORY)

SECTION 2-2
 19 | 87

MOBILE MARKETING AS A STANDALONE WILL FAIL

Integration is key to success

 20 | 87

MOBILE MARKETING IS NOT CHEAP

Higher CPM than other traditional media

 21 | 87

MOBILE WEB IS NOT CHEAP FOR THE END USER EITHER

$34.99 $99.99 $49.99 $39.99

on top of web+phone on top of on top of
phone bill phone bill phone bill

Sources: Sprint, T-Mobile, Verizon and AT&T for plans, November 2007
 22 | 87

MOBILE’S ECOSYSTEM IS STILL CONSOLIDATING

 MOBILE
LANDSCAPE

CHAPTER 3
MARKET
FACTS

SECTION 3-1
 25 | 87

THE THIRD SCREEN

IS ALREADY
THE FIRST
2 billion mobile
subscribers today
1.2 billion TV households
670 million PC users

Sources: Informa Telecoms & Media, April 2006; In-Stat, November 2006; speech from Steve Ballmer, CEO Microsoft
 26 | 87

PENETRATION OF MOBILE PHONES HAS BEEN EXPLOSIVE

2,902
215 million mobile subscribers in 1997
2 billion today
3 billion in 2010
2,058

729

88
1 12

1981-1985 1986-1990 1991-1995 1996-2000 2001-2005 2006-2010

Worldwide Mobile Subscription

(in millions)
Source: Informa Telecoms & Media, April 2006.
 27 | 87

THE U.S. IS CATCHING UP TO EUROPE & ASIA

IN MOBILE PENETRATION

98%
93%
92%
89% 89%
83% 82%
78% 78% 77% 76%
72%

South China Japan UK Germany France India US Russia Brazil Mexico Canada
Korea

Household Mobile Penetration by Country in 2006

(in %)
Source: IPSOS, Face of the Web 2007
 28 | 87

MOBILE PHONES WILL BE UBIQUITOUS IN THE U.S. BY 2010

296.8
285.4
269.2
249.3
228.7
207.9

2005 2006 2007 2008 2009 2010

U.S. Mobile Subscription

(in millions)
Source: eMarketer, August 2006
 29 | 87

A VERY OLIGOPOLISTIC CARRIERS’ DANCE

Cingular Wireless 61 million subscribers 26.2%

Verizon Wireless 59.1 million subscribers 25.3%
Sprint Nextel Corp 53.1 million subscribers 22.8%
80% of the market
T-Mobile USA Inc 25 million subscribers 10.7%
Alltel 11 million subscribers 4.7%
Other 24 million subscribers 11.3%
TOTAL 233.2 million subscribers 100%

Sources: ctia.org for the total number + respective carriers websites

MOBILE LIFE

SECTION 3-2
 31 | 87

MOBILE IS A SECOND SHADOW

1st thing you check when you wake up

Last thing you check when you go to bed
Within arm’s reach 80% of your day

Sources: Fluid Lives, Yahoo! 2006 + Nielsen Media Research for TV numbers, 2006
 32 | 87

MOBILE IS AN EXTENSION OF OUR BODY

Personal
Intimate > Privacy
Singularizing > Identity
 33 | 87

MOBILE IS AN ADDICTION

Phantom Vibration Syndrome (or Vibranxiety)

92% of owners cannot get through a typical day without using their phone

Source: The Mobile Life, survey conducted by YouGov, 2006

MOBILE
USAGES

SECTION 3-3
 35 | 87

WHAT DO WE DO WITH OUR MOBILE PHONES?

COMMUNICATION
SMS
eMail
Picture Messaging
Send/Receive Videos
Social Networking
Blogging
 36 | 87

MOBILE PHONES ARE MORE THAN JUST VOICE

Text/SMS 44% 17% 81% 82% 87% 77%

Photo Messaging (MMS) 10% 7% 33% 33% 32% 40%

Mobile Internet 11% 20% 16% 15% 7% 19%

Mobile E-Mail 9% 57% 10% 12% 8% 16%

Mobile Messaging and Internet use by Mobile Phone Users

Source: Office of Communications “The International Communications Market 2007”, December 2007
 37 | 87

WHAT DO WE DO WITH OUR MOBILE PHONES?

COMMUNICATION PERSONAL
SMS PRODUCTIVITY*
eMail
Picture Messaging Check Weather
Send/Receive Videos Search the Web
Social Networking Maps/Directions
Blogging Movie info
Stock Quotes
Financial news
Business directories
Restaurant info
Trading Stocks *Source: M:Metrics, January 2007.
Transactions Items classified in decreasing order of importance
 38 | 87

WHAT DO WE DO WITH OUR MOBILE PHONES?

COMMUNICATION PERSONAL NEWS BITES

SMS PRODUCTIVITY News
eMail Product Info/reviews
Check Weather
Picture Messaging Tech news
Search the Web
Send/Receive Videos Health/Sport
Maps/Directions
Social Networking Sports Information
Movie info
Blogging Entertainment News
Stock Quotes
Horoscope
Financial news
Business directories
Restaurant info
Trading Stocks
Transactions
 39 | 87

WHAT DO WE DO WITH OUR MOBILE PHONES?

COMMUNICATION PERSONAL NEWS BITES PASSING TIME

SMS PRODUCTIVITY News Play video games
eMail Product Info/reviews Download ringtones
Check Weather
Picture Messaging Tech news Download wallpapers
Search the Web
Send/Receive Videos Health/Sport Download videos
Maps/Directions
Social Networking Sports Information Download music
Movie info
Blogging Entertainment News
Stock Quotes
Horoscope
Financial news
Business directories
Restaurant info
Trading Stocks
Transactions
MOBILE AS AN
ADVERTISING
PLATFORM

SECTION 3-4
 41 | 87

MOBILE MARKETING IS STILL IN THE EARLY STAGES…

U.S. Advertising Spend by Media in 2007 (in Millions)

Source: TNS Media Intelligence, Mar 2008 + earketer, Oct 2007 (mobile) + IAB, Feb 2008 (Internet)

$67,772

$31,751

$26,544

$11,303 $11,055

$4,022
$1,400

Television Magazine Newspaper Internet Radio Outdoor Mobile

(excludes
paid search)
 42 | 87

… BUT IT’S GROWING FAST

In two years from now, mobile advertising

should be as big as Internet advertising is today

(Source: eMarketer, October 2007 + ABI Research, 2007 + Informa Telecoms & Media, February 2007)
THINKING
MOBILE

CHAPTER 4
 44 | 87

THE FIRST SCREEN

In 1965, you could reach 80% of the Americans

with 3 spots of 60 seconds on TV.
Today, you need 120 prime time commercials.
 45 | 87

THE SECOND SCREEN

From Information to Communication

 46 | 87

THE THIRD SCREEN

Willingness
marketing
 47 | 87

PEOPLE CAN NOW ESCAPE ADVERTISING

 48 | 87

MOBILE MARKETING IS ANTICIPATED TO BE

AS IRRITATING AS OTHER ADVERTISING

90% of U.S. users are not at all interested in mobile marketing

(Source: Harris Interactive study for eMarketer, 2007)

79% of consumers are annoyed by the idea of mobile marketing

(Source: Forrester, 2007)

Additional converging sources: International Journal of Electronic Commerce, Hanken Swedish School of Economics and Business, M:Metrics, eMarketer (Harris
Interactive study conducted in February 2007), Godin (2001), DeZoysa (2002), Okazaki (2005), Fawcett (2000), Hawkins (2000), Nobel and Callaghan (2000)
49 | 87
 50 | 87

3 GOLDEN RULES TO LOWER THE PAIN OF MOBILE ADVERTISING

Consideration
Choice Control Entertainment
Opt-in Opt-out Information
Interactivity

Source: U.S Code of Conduct established by the Mobile Marketing Association | Consumer study from MobHappy & Mobiledia, 2007
 51 | 87

PUSH | FORCE-FEEDING

NO. WRONG.
 52 | 87

PULL | USER-INITIATED
INVENTORY

CHAPTER 5
 54 | 87

MOBILE PROVIDES A WIDE RANGE OF MARKETING TOOLS

SMS MMS Web Bluetooth Location QR Codes

or Text Multimedia Based Quick
Message
Short
Service
Marketing Response
Barcodes
Message
Service
 SHORT
MESSAGE
SERVICE
(SMS)

SECTION 5-1
 56 | 87

A FAST AND CONVENIENT WAY

TO REACH POTENTIALLY EVERYONE
 57 | 87

FINGERS’ DEMOCRACY IS TAKING OVER VOICE’S DICTATORSHIP

People already text more than they call

5,000 SMS sent per second in the U.S.

Source: CTIA, The Wireless Association + Mobile Marketing Association + emarketer.com + Forrester, 2007
 58 | 87

TEXT MESSAGING IS YOUTH’S PREFERRED CHANNEL

% of U.S. users using text messaging daily

Source: InsightExpress, Mobile A&U Research Results, Sept 2007

43%

22%

16%

10%

18-24 25-44 45-54 55-64

 59 | 87

SMS/TEXT MESSAGING IS A LIMITED OPPORTUNITY

TO CONNECT EMOTIONALLY WITH THE AUDIENCE
SMS/TEXT
CAMPAIGN
EXAMPLES
 61 | 87

NIVEA UK | PURE DEODORANT

TEXT PRIZE-DRAWING
 62 | 87

NEWSPAPER’S MISSING PICTURES

GOLD LION CANNES 2003 FOR USE OF MEDIA
 63 | 87

SEND AN ANONYMOUS MESSAGE TO YOUR DRUNK FRIEND

DIRECT GOLD LION CANNES 2007
 64 | 87

ROYAL NAVY RECRUITMENT CAMPAIGN

BRONZE CYBER LION CANNES 2007
 THE
MOBILE
WEB

SECTION 5-2
 66 | 87

MOBILE WEB IS NOW ACCESSIBLE ON MOST HANDSETS

60% of U.S. mobile subscribers

can access the mobile Internet

Source: M:Metrics – WAP Statistics ending February 28, 2007 for U.S
 67 | 87

THE U.S. MOBILE WEB IS ALREADY

MADE OF 60 MILLION SOULS

19% of U.S. consumers access the web from their mobile phones

Source: M:Metrics, 2007 and Universal McCann, 2007 + MindShare, March 2008
 68 | 87

MOBILE WEB IS STILL A YOUNG, WELL-ESTABLISHED MAN GAME…

60% male
46% under 35
38% earn over $75,000

Source: M:Metrics, 2007

 69 | 87

… BUT USERS OF ALL AGES

ACCESS THE INTERNET ON THEIR PHONE

40

30

20

10

16-19 20-29 30-39 40-49 50+ Male Female

Question: Do you access the Internet on your mobile device? (answer “yes”)
(Base: U.S. mobile users ages 16+, n=1,001)
Source: iCrossing | How America Searches: Mobile | April 2007
 70 | 87

THE MOBILE WEB IS PURPOSE-DRIVEN

Major behavioral difference with the Computer Web

 71 | 87

THE MESSAGING NEEDS TO BE IMMEDIATE AND CONVENIENT

 72 | 87

THE SELL PHONE REVOLUTION

ADIDAS SPORT PERFORMANCE’S LAS VEGAS STORE | NBA ALL STAR WEEK 2007
BLUETOOTH

SECTION 5-3
 74 | 87

BLUETOOTH

Short range (33 feet) wireless technology

 75 | 87

ASB BANK | PAGO’S DIGITAL WALLETS

PROMO GRAND PRIX CANNES 2007
LOCATION-BASED
MARKETING

SECTION 5-4
 77 | 87

THE PINNACLE OF LOCATION-BASED MARKETING

 78 | 87

SEARCH IS THE MOST IMPORTANT

CONSUMER NEED IN MOBILE MARKETING

79% of mobile Web users 982

use the mobile Search 901

757
672
596
517
490
406 411
337 327
266

Mobile Internet users

Mobile Search users
2006 2007 2008 2009 2010 2011

Worldwide Mobile Internet Users and Search Users

(in millions of persons)
Source: eMarketer, Julyy 2007
 79 | 87

PROVIDE A SERVICE RATHER THAN SELL TOO HARD

Land Rover’s iPhone campaign providing directions to the nearest dealer

 80 | 87

HEINEKEN’S BAR GUIDE

BARCODES

SECTION 5-5
 82 | 87

TWO-DIMENSIONAL BARCODES
DATAMATRIX (DM) CODES | QUICK RESPONSE (QR) CODES | SEMACODES

Scan QR Code Info on Mobile

 83 | 87

TWO-DIMENSIONAL BARCODES
DATAMATRIX (DM) CODES | QUICK RESPONSE (QR) CODES | SEMACODES
 84 | 87

COMIC SHOGAKUKAN BOOKS

PROMO GOLD LION CANNES 2007 + WEBBY AWARDS 2007

Column wraps

Posters TV commercials

Magazine Mobile Web Site Outdoor Monitors

AND BEYOND?

SECTION 5-7
 86 | 87

THIS IS NOT THE END…

 THIS
PRESENTATION
WAS BROUGHT
TO YOU BY

Contact Information

Jérôme Sudan
Website: Advertising Pawn
eMail: adpawn@gmail.com