2010 UK Mobile Marketing Market Map
Richard Warren rwarren@ rstpartner.net Tim Ellis tellis@ rstpartner.net www. rstpartner.net +44 (0)870 874 8700
- Phone is for voice and text - Feature phone - Cost concious - Discovering the mobile internet
Introduction Pressured Professional Mobile Socialiser Technology Trend Setter
- Life organised by mobile - Fashion/smartphone - Regular Social Network, IM App and media user - Hi disposable income/brand conscious - Technically knowledgeable - Spend not an issue - Latest smartphone/tablet bought on features - Explores and experiments with features, media and apps - Information hungry - Smartphone/tablet user on business paid contract - Constant access to email, internet and utility apps - Media snacking during “down time”
Mobile Marketing is the delivery of any type of marketing communications and response through the mobile phone. Mobile supports brand and direct response advertising, CRM and customer services communications through messaging, the mobile internet and a growing range of innovative media options.
- Aged 12 - 18 - Prepay or budget bundle - Text rather than voice - Shares content rather than paying
Key Enablers to Market Growth
Mobile is now established as a customer communications channel in the UK Market.
The continuing growth in consumer adoption of smart phones and data plans is underpinning a significant rise in mobile media consumption,significantly increasing the growth opportunities for mobile advertising and marketing. FirstPartner Estimates that nearly 20M UK consumers are active mobile media consumers. Orange's Exposure 2 study found that of those who use mobile media, 81% do so more than once a week, and 47% use it on a daily basis. This trend is also being driven by mobile access to social media sites and consumption of mobile apps. Comscore reported 2.6BN Facebook mobile page views for Dec 2009 with consumers spending 41 minutes per day accessing the site by mobile vs. 32 minutes via a PC.
Tablet Internet (Mobile and Wi-Fi Access) App stores
- Android Market - Apple App Store - Blackberry App World - GetJar
Connected Media Device
- Nokia Ovi - Vodafone App Shop - Orange App Shop
- Orange/T-Mobile - Vodafone
- O2 Active - Planet 3 - Orange World - Vodafone live!/360 - ITN - MSN - Sky - Yahoo - Facebook - Foursquare - Flirtomatic - Rummble
- O2 - Three
Operator Portals Mobile App Publisher
- GCap Media (Xfm) - Shazam - MTV - Spotify
Independent Mobile Internet Site
Mobile Social Network
Mobile Content Publisher
- Digital Chocolate - EA Mobile
- gameloft - Zed
Key recent market developments include: - The establishment of transactional mobile sites and apps by major retailers including Marks and Spencers, Tesco and Waitrose - Inclusion of mobile apps in an increasing number of branding campaigns from companies including Adidas Nike and Barclaycard - The acquisitions of AdMob by Google and Quattro Wireless by Apple followed by the launch of iAd. This will significantly strengthen sales profile and reach amongst advertisers - Increasing focus on Mobile by major digital agencies - Steady growth in the adoption of blue tooth based proximity marketing - The launch of the GSMA Mobile Media Metrics in conjunction with all the major UK Opertors and comScore. This addresses a major barrier to mobile internet based advertising by providing standardised and audited usage and profiling data - A refocusing on permission based targeted messaging with the launch of Orange Shots and O2 More.
Mobile Marketing Formats
Mobile CRM Messaging Mobile Internet
Mobile coupons provide a cost effective and highly measurable sales promotion tool that can also be linked to location. Mobile short codes and WAP links provide onse consumers with a simple, direct repsonse to particiapte in promotions. as Mobile CRM has been widely adopted in the service sector, notably financial se vice services, travel, and ovide service public sector to provide servic updates and munications. customer communications. It is a used to also promote products and services t customers to pted database. within the brand's opted in database Permission based messaging allows for highly targeted advertising to be sent to opted in mobile subscribers who have expressed preferences. Following succesful deployments in emerging markets, both Orange and O2 have recently launched high profile services. Display advertising and search listings delivered pred via Operator Portal and predominantly independent publisher w websites. Social media now generates a significant proportion of mobile internet usage and will likely b become a major component. comp
Branding & Commerce
Location & Proximity
Branded apps have become a must-have element of many marketing campaigns offering entertaining brand engagement with a viral communications element. As more consumers use their mobile to browse the web, the need for a mobile optimsed branded site becomes critical.
Delivery of ads into mobile applicat applications is offered by most ad networks and provides a potential revenue stream for d developers of free aps.
Location based advertising adds consumer location to ad targeting criteria to optimise relevance. Proximity advertising is highly localised wing essages alllowing a consumer to receive ad messages either pushed through blue tooth or pulled rcode through an NFC or barcode scanning trigger.
Advertising is dynamically served into mobile content such as games and video. Ads may be pre or post roll or integrated into the content. Accounts for a tiny proportion of mobile display spend, but could follow the growth in internet video.
Mobile Web Sites Direct Repsonse Short Codes Targeted Promotion Sponsored Content Alerts Off Portal Banners
On Portal Banners
r e n t r
In App Display Location Based Augmented Reality Bluetooth Proximity 2D barcodes
- Chanel - Lovestruck - Nissan - Unilever - Burger King - Dominos - Lonely Planet - Umbro Specialists - AdMarvel (Opera) - Medialets Specialists - Bluepod Media - Geocast - Hypertag - Breezetech - Mobego - Scanbuy - MarkcoMedia - Placecast - Buongiorno - Comverse - Ericsson - Jinny Software - MADS - Mobixell - Out There Media - Sofialys
In Game Advertising
Mobile Marketing Outlook
Customer Service Apps & Sites Service Message Advertising Social Media
Pre-roll Video Video Insertion
While Mobile Advertising is maturing, mobile advertising revenues (excluding messaging) were £37.6M in 2009 (Source IAB/PwC). This still represent only a tiny fraction of £3.5BN on-line advertising revenues. FirstPartner forecasts that the UK mobile advertising market will grow to €332M or £280 M by 2014.
- Nike - VW - Gap - Orange - Odeon Cinemas Wednesdays - Pizza Hut - Barclays - British Airways - Ocado - Tesco - Audi - Blockbuster - Gap - Interflora - Mars - Natwest
- Barclaycard - Marks & Spencer
- Adidas - Marks & Spencer
- Nissan - Peugeot
- Coca-Cola - New Line Cinema
Specialists - Blyk
Coupon Providers - VoucherCloud - i-movo - Vouchacha - Mobiqa
Specialists - Admarketplace (Search marketing) - Barracuda Digital (SEO)
Specialists - Greystripe - YoSpace
Site & App Developers - Buongiorno! Digital - Mippin - NetBiscuits - Golden Gecko - TigerSpike - Grapple Mobile - Wapple - joule
Aggregators - OpenMarket - 2ergo (Formerly MX Telecom) - mblox - Sybase 365 - mFusion - WIN - Netsize
Cross Format Ad Platform and Service Providers
- Alcatel Lucent - Amobee
For more information or to purchase go to www.firstpartner.net Note: Forecast exludes creative revenues, short code responses and CRM driven messaging.
a n Copy P io t s r
Microsoft Sales -- Yahoo Advertising - O2 Media Houses - Sky Media - Guardian Media Group - Three Media Sales - Vodafone Media Solutions - Google - Navteq Media solutions (Nokia)
Interesting facts about Mobile
ales Ad Sales & very Delivery Measurement & Metrics
Mobile Commerce Enablers
- Apple - Bango - Boku - Masabi - mBlox - Zong
- Mobile First - Netsize - PayPal - Upaid Systems - Verrus Mobile Technologies - OpenMarket (Formerly MX Telecom)
- AdMob - Bango - comScore/GSMA - Distimo - Flurry - Smaato - Nielson Mobile Media
Demand Side Platforms
- DataXu - Ericsson Ad Market - StrikeAd
- 4th Screen Advertising - Adfonic - AdModa - Amobee - Apple iAd - B! Mobile
- Google/AdMob - InMobi - JumpTap - Smaato - Unanimis (Orange) - yoc
Ad Campaign Planning, Creative and Management
- Diffusion - Hotwire - Infomob - Peppermobi
i valuat F E
Full Service Agencies
- Ogilvy Advertising - Agency Republic - que pasa - AKQA - Razorfish - BBH - Digital Marketing Group - Mindshare
Specialist Mobile Agencies
- Buongiorno! Digital - Fetch Media - Incentivated - M&C Saatchi Mobile - Marvellous Mobile - Somo
- Mobile Interactive Group - Phonevalley - Sponge - Starfish Mobile - we love mobile
Media Planners & Buyers
- AdsMobi - BLM Quantum - Isobar - Mediacom - Mindshare Media
- RingRing Media - Target Media - WPP - Yodel Digital - Zenith Optimedia
- UK spending on mobile internet advertising in 2009 grew by 32% over 2008 (source IAB/PwC) - Mobile search was the fastest growing format – up 41% to £20.2 million.Mobile display grew by 24% to £17.4 million (source IAB/PwC) - Facebook is the most visited mobile site in the UK, receiving 5M unique visitors in Dec 2009 (source GSMA Mobile Media Metrics/comScore) - According to research undertaken by the IAB & DMA in September 2010, 30% of respondents had received a mobile advertising message in the last month, 12% have opted in to receive SMS and MMS messages from a Mobile Operator and 15% have agreed to contact via SMS/MMS from a company or brand. - In September 2010 O2 announced that it had achieved 1M subscribers opted in to O2 More. - In its 3Q2010 earnings statement Google reported mobile revenues reaching an annualised run rate of $1bn. It also reported Mobile search queries have risen by a factor of 5 in the last two years. - The UK was the 4th highest source of ad requests on the AdMob network .
Audi Fiat Jaguar Nissan Smart Mercedes-Benz Peugeot VW
Brands & Advertisers
Adidas CocaCola Nike Unilever Cadbury Lynx Samsung Wilkinson
Paramount Pictures Electronic Arts
The Economist Universal Pictures
Air France BAA British Airways
KLM Lufthansa Virgin Atlantic
House of Fraser
Ikea Marks & Spencer
- FirstPartner - Informa - Juniper Research - Screen Digest
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- Fierce Mobile Content - Moco News - Gomo News - Mobile Marketer - MobiAd News - Mobile Marketing Magazine - Mobile Entertainment
Creative Opportunities Cost
- GSM Association - DMA Mobile Marketing Council - Advertising Standards Authority
- Mobile Data Association - Mobile Entertianment Forum - PhonepayPlus
- Mobile Marketing Association - IAB
The map includes information compiled from various reputable sources and other methods like structured interviews and surveys, conference material and information available in the public domain. As data and information sources are outside our control, FirstPartner makes no representation as to its accuracy or completeness. All responsibility for any interpretation or actions based on this map lies solely with the reader. Copyright 2010
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Factors to Consider
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Almost universal penetration means that mobile offers the highest potential reach of any marketing medium. Practically this is limited by media usage and Opt-in. FirstPartner estimates nearly 20M UK mobile users now use the mobile internet and media. O2 claims 1M subscribers opted into its O2 More permission based push ad service.
Mobile ad serving technology supports demographic, behavioural, contextual and location based targeting. Permission based adds user preference. GSMA Mobile Media Metrics provides audited cross operator profiling data to further support media planning.
Limited screen size is not a barrier to creativity. Succesful campaigns take account of the mobile context of the consumer, phone features such as the camera and increasingly user location. Mobile can be highly effective when used as an integrated channel within a cross media campaign.
Mobile inventory is widely sold on a CPM basis however CPC and CPA are also offered. UK mobile display CPMs are now highly competitive when comapred to mainland Europe but highly targeted inventory commands a premium over other other media formats.
Mobile advetising campaigns boast repsonse rates that are regularly higher than any other media. The channel can also deliver efffective viral campaigns - as demonstrated by a number of succesful branded apps and achieves higher recall rates than other media. Effective measurement is however essential to optimise campaigns.
The Return on Investment for mobile compares favourably with other media: - Preference delivers a superior conversion rate - The ability to accurately measure delivery and response rates - Convenient integration of consumer response and sales promotion tools Most brands that experiment with mobile continue to use it.