MOBILE WORLD

CONGRESS 2012
MICHAEL ROTH
 US MOBILE AD SPENDING, 2010-2015
$4,396

$ in millions
$3,381

$2,523

$1,802

$1,226
$743

2010 2011 2012 2013 2014 2015

Note: includes display, search and SMS advertising

Source: eMarketer, Sept 2011
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 THE CONNECTED LIFE
• GSMA shows there are 9 billion connected devices in 2011 and by
2020 there will be 24 billion globally

• Today, connected devices are dominated by mobile phones – this will

change as smartphones, tablets and consumer electronics connect
everything from cars to health services and even entire cities

• Expectation is that the proliferation of connected devices will create a

$4.5 trillion market for global business by 2020

• Should be a banner business for advertising companies, right?

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 GROWTH, YES, BUT OFF A SMALL BASE

Global TV vs. Mobile Advertising Spend: 2010 to 2016

TV 2016
TV 2011 $249.7B
$ 175.4B
Mobile Mobile
2011 2016
$ 3.7B $7.5B
CAGR
CAGR 19.4%
7.3%

Growth $4.4B

Growth $74.3B

By 2016, when the Internet will be the second largest medium,

it will remain 1/2 the size of the TV market,
while mobile will likely be 1/10th the size of the TV market

4 Source: MAGNA (December 2011)

 WHAT CLIENTS ARE SAYING…
• 680 global clients interviewed last year about mobile marketing
by Chief Marketer research firm; these are all active marketers,
with an average revenue profile of $150 million

• They said mobile marketing only accounts for 10% of their

marketing spend

• Less than 15% have ever run mobile ads; more than half say
they don’t expect to try it next year

• Only 40% have a mobile optimized website; 14% say their

websites allow mobile buying
Source: Chief Marketer 2011 Mobile Marketing Survey
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 To grow the channel, we need to move from
talking with our clients about “mobile marketing”
and focus on “mobile engagement”

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 WHAT’S THE OPPORTUNITY FOR MARKETERS
Marketing used to be about finding consumer “eyeballs.” Today, it’s about finding
consumers’ eyes, ears, fingers, and feet – all at the same time

 In a consumer study last year, Nielsen found that +40% of the owners of tablets and
smartphones use their devices while watching TV on a daily basis

Source: Neilsen, Q2 2011

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 LEVERAGING THE CONNECTED LIFE FOR MARKETERS
Mobile is unique to marketers because it
combines four characteristics that otherwise
can’t be found in any ad channel – together
they make for an incredibly personal and
immediate experience

1. Always on
2. Portable
3. Multi-device (e.g. camera)
4. Available location data

Source: Millennial Media

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 CONNECTING CONSUMERS WITH REAL REWARDS

Watch TV. Get Rewards.

• A loyalty program for TV – converging

mobile, Internet and television

• Watch TV, check in via Viggle, and get

real rewards

• Opportunity to breathe new life into an

old channel

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 THE NEW EQUATION

MORE CONNECTED DEVICES

+ CONSUMER BEHAVIORAL SHIFT TO MOBILE

+ GREATER BANDWIDTH

+ UNIQUE MARKETING CHARACTERISTICS

= HUGE OPPORTUNITY FOR AGENCIES AND CLIENTS

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 2012: BETTER DISCUSSIONS

Today, mobile conversations with clients are a more

thoughtful dialogue – give consideration to how
mobile functionality relates to clients’ products and
how it fits into their business model

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 MOBILE APP THAT WORKS: HBO GO

• HUGE: an IPG agency in Brooklyn, NY

that builds e-commerce sites for
companies like Ikea and mobile platforms
for Thomson Reuters

• HBO and HUGE had just that conversation

– resulted in HUGE being an integral part
of the initial product development and
subsequent build-out of a new multi-
platform mobile tool

• What happens when you get “mobile

engagement” right? This is what it looks
like…
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THANK YOU
MOBILE WORLD
CONGRESS 2012