Advertising and Media Association SA Talks Mobile with the MMA

Trends in Mobile

Marketing…

Local and International AMASA October 2010

Raymond Buckle / Brett StClair

Co Chairman SA

Mobile Marketing Association

Agenda

We‟ll cover…

• The Channel

• The Audience

• Trends

• What does this mean for you

• Real world Examples

• The Mobile Marketing Association

What separates the Mobile Phone

from other Marketing Channels?

Can you imagine living without it?

Experiment

• SMS to 38268

1: Have used mobile advertising

2: Have not used mobile

advertising

3: Planning to in the near future

12 to 14 interactive screens

Mobile as a Medium - the 7th Mass Media

Print

Outdoor

Cinema

Radio

Television

Internet

Mobile

1500’s 1800’s 1910’s 1920’s 1950’s 1990’s 2000’s

The drivers for growth

• Convergence

• Economy

• Marketing challenges

• Speed

• Handsets

• Data tariffs

• Industry promotion

• Consumer behaviour

Worldwide growth but…….

Who are the SA Mobile Consumers?

General take…

Mobile Internet

22%

30%

23% 23%

3%

R 1 523 R 2 838

R 5 904

R 14 781

R 25 519

R 0

R 5 000

R 10 000

R 15 000

R 20 000

R 25 000

R 30 000

0%

5%

10%

15%

20%

25%

30%

35%T

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Interactive Reach and the Muller Cluster Model...

90% Mobile Phone

60-70% MMS / Mobile Internet

10-20% Email & Internet

Meet the most popular phone in the

world…

G fK R e ta il a n d T e ch n o lo g y 2 /2 0 1 0

M O B ILE P H O N E S ,S M A R T P H O N E SS a le s U n its %

JA N 0 9 - JA N 1 0

So u th A fr ic a

© b y G f K -R T , w w w . g fk r t. c o m P R J 4 1 3 4 - R G 1 6 7 0 9 6 9 - R P 6 9 4 5 2 0 8 - ID 2 2 8 7 3 6 4 1 5

T E L M o b ile ph on e s ZA

T E L S m ar tp ho n e s Z A

J A N 09 F EB 09 M A R 0 9 A P R0 9 M A Y 0 9 JUN 09 JUL 0 9 A U G0 9 S EP 09 O C T09 N O V0 9 D EC 09 JA N 10

87 6

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20

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30

74 6

32

67 5

27

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42

89 1

65

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47

69 1

62

85 1

84

76 7

70

1 .188

95

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T E L M ob ile p h o n e s Z A S a le s T h s. U n its

T E L S m a r tp h on e s Z A S a le s T h s . U n i ts

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Mobile Internet Users: Nov 2009 Source: Nielsen c/o Admob

1%

2%

2%

5%

8%

9%

37%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40%

HTC

Apple

Blackberry

Motorola

LG

Sony Ericsson

Nokia

Samsung

SA's Favourite Manufacturers

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%

AdMob – South Africa - July 2010

Source: Admob

Of 275m ads served through

16,000 publishers…

22% 25%

30%

23%

0%

5%

10%

15%

20%

25%

30%

35%

16 - 24 Yrs 25 - 34 Yrs 35 - 49 Yrs 50 +

Mobile Internet users: Nov 2009

Source: Nielsen c/o Admob

SA User by Age Group

Mobile Internet Users: Nov 2009


SA's Users by Race and Gender

Indian, 4% Coloured,

8%

White, 22%

Black, 67%

Male 51%

Female 49%

3%

7%

19%

27%

15%

11% 11%

7%

0%

5%

10%

15%

20%

25%

30%

LSM 1 -3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

Mobile Internet Users: Nov 2009


SA's Mobile Internet Users by LSM

Mobile is about…

• Service

• Loyalty

• mCRM

• Up-sell

• Cross Sell

• Mobile Advertising

• Direct Response

• Permission Marketing

• Mobile Internet

• Games

• Branded Utilities

• Community

Brand Building

Acquisition

Retention Growth

Brand Building

• Instant interaction with consumers

• Consumer expectation

• Permanent brand presence

• New formats – richer experience

• Better understanding of the advantages

of mobile

• Commercial success

Acquisition: through mobile

advertising

• Increased use of mobile internet

• Increase in available inventory

• Pressure on marketing budgets

• New formats – richer experience

• Commercial success

Retention & Growth

• Growing consumer acceptance and expectation

• The „on-demand‟ consumer

• Mobile as an access point

• Cost effectiveness

The journey to loyalty…

150,000 mobile

boarding passes per

month or 15% of all

check-ins

Retention/Growth…

Lufthansa

“The 3rd wave of technological

innovation….”

John Doer, Kleiner Perkens VCs

1. Micro-chip and PC in 80‟s

2. Internet – 90‟s

3. Mobile, Social and Cloud Computing

What does this mean for…

• Media owners

• Advertisers

• Brands

• Marketers

• Agencies

• Business

“Mobile has been over-hyped in the short term but under-hyped in the medium term to long

term”

Sir Martin Sorrell, 2009

Media Owners

Issues for marketers

• Understanding the role of mobile in the

marketing mix

• Take advantages of the new contextual

benefits of mobile; need, location & time

• Dealing with consumers as individuals

• Ensuring relevance

Test and Learn

Think Mobile

from the outset

Know your audience

It‟s a value exchange

Its still all about the

idea

Golden rules for mobile strategies…

But what about…

The Future?

Mobile Marketing Association‟s focus…

Promote

Events

Publications

Awards

PR Partnerships

Educate

Events

Training

Certification

Measure

Industry Research

Partner Program

MMA Data

Guide

Standards

Guidelines

Best Practice Guides

Protect

Consumers

Members

5 conclusions

1. Mobile is about customer acquisition, retention and

brand building.

2. Mobile is here, not on the way…

3. The phone is not mobile, its the audience

4. Mobile works best when integrated into campaigns

from the start

5. We will all be mobile marketers

Next steps?

• Join the MMA – it‟s a global best practice

industry organisation with local relevance

• The MMA SA will be hosting a forum where

local brands, agencies and media owners will

share their experiences

• Whatever you do, get into mobile

Confidential

Confidential

Questions?

www.mmaglobal.com

Raymond Buckle

CEO Silverstone CIS

[email protected]

Brett St Clair

Country Manager

Admob Google

[email protected]