Mma II study of investment in marketing and mobile advertising spain

2nd Study on Mobile Marketing Spending

in Spain

November 2009

Sponsored by

2

Objectives and Methodology

Marketing Mobile Scope

Marketing Mobile Spending

• Worldwide spending

• Adex in Spain

• Spain spending 2007-2009e

• Spain spending evolution estimations :2009e – 2012e

• Spending by typologies

›Mobile Internet

›Applications and Advergaming

›Messengers

• Spain by Concept: Creativity/ Technology/ Media Buying

• Spending by sectors

• Spending by type of portal

Future Trends

• Actual develop areas

• Technology

• Formats with more future

• More asked formats

• Marketing and communication issues

Index

3

Objectives and methodology



Future Trends

Index

4

2nd Study on Marketing Mobile Spending: Objectives

This second wave of the study on marketing mobile spending in Spain covers the next objectives:

• To quantify the investment on marketing and mobile advertising.

• To analyze and to spread the sector economic relevance.

In order to achieve that, a methodology based on the collaboration with other MMA associated companies have been accomplished. They have expressed their point of view about the sector throughout the following surveys.

This survey aims to get information about done and/or received investmentQuantitatu

ve

Survey

Qualitative

Survey

It allows us to have a knowledge about challenges, forecast and point of view about marketing mobile in Spain.

5

Participant enterprises on 2009 Study

Surveys have been collected during July to October 2009.

In this edition, 21 associated companies have taken part in

the study. They represent the different typologies that MMA

represents.

• Mobile phone operators

• Interactive agencies.

• Technology and contents creators.

• Marketers

% of participant companies typology according to their declaration on surveys.

7%

32%

18%

32%

11%

Mass media marketer

Techonolgy

Contents providers

Agencies

Mobile phones operators

6

Index




Future Trends

7

Mobile Marketing definition

Display

Search

Mobile Marketing

Bluetooth

Geomarketing

(LBS)

SMS

MMS

Applications

Advergaming

Contents and

applicationsVoiceCuponning MessengerProximity

Fuente: MMA

Mobile advertising

What does marketing mobile contain?

Mobile Marketing is a set of practices that enables organizations to

communicate and engage with their audience in an interactive and

relevant manner through any mobile device or network

8

Index




Future Trends

9

World Marketing Mobile investment

Evolution

Marketing Mobile will represent a global market near 7.500 million dollars.on 2011.

Source: Gartner September 2009

Marketing investment in the world

Marketing mobile investment in the whole world (2007-.2012e)(Million Dollars)

0

2

4

6

8

10

12

14

16

2007 2008 2009 2010 2011 2012

10

Investment in advertising in Spain

Forecasting 2009

Different forecastings reflect a serious crisis on advertising market in Spain

The only growth media is the interactive one.

Source: Infoadex june 2009, Arce Media September 2009, Zenith Media October 2009

Forecasting % variation on advertising investment

-29,2

-24,8

-19,2

-30,1

-24,6

-20,6

2,7 2,96,6 6,7

Infoadex 1st Half 09 Arce I2p 2009e Zenith Vigia 2009e

Totaladvertising

Tv

The Internet

Mobiles

11

Investment in Marketing Mobile in Spain.

Evolution

Despite the crisis on advertising market, activity during 2009 will exceed 32 million (€), with a 13,3% growth versus

2008 for all marketing mobiles activities.

Source: Quantitative and qualitative survey MMA. Spain. 2009

Including technology, production and investment

Evolution of Marketing mobile in Spain

32,328,6

15,1

2007 2008 2009e

+89%

+13,3%

Marketing mobile investment in Spain

12

Marketing mobile investment evolution.

Forecasting with average growth of 40% is optimistic. This forecasting is more prudent than Gartner estimations.

+89%

+13,3%

+47%

CAGR 2009 - 2012:

40%

+51%

+48%

105,7

71,4

47,432,328,6

15,1

2007 2008 2009e 2010e 2011e 2012e


Evolution



13

Evolution of investment increases (%) on marketing Mobile. Forecast. 2009 vs 2008.

The Forecasting of investment increases is optimistic, however it is more moderate than on 2008 MMA Study.

Estimated Investment for 2009, is more realistic, because the interactive media are the only one that will grow.

98,0%

50,7%46,5%

13,3%

85,0%89,0%

2009e 2010e 2011e

2009 study

2008 studyGreat expectatives fall down.


Evolution



14

Evolution of Marketing mobile investment by typology in Spain ( 2007-2009e) (million €)

Investment in Marketing Mobile in Spain

Investment by typology

In 2009 Marketing and Mobile advertising will be a 32,3 million (€) market in Spain.

New investment on Social networks represents a volume of nearly 1 million (€).

9,06

3,56

5,82

11,64

1,29 0,97

Applications Proximity Messenger Internet mobile Voice Social networks

2007

2008

2009e



15

Evolution of investment in marketing mobile by typologies in Spain (2007-2009e)

Internet Mobile is still the most important activity in terms of volume. However, other typologies as Applications

and Advergamings are increasingly important thanks to the new terminals.

36%23% 28%

29%

32%11%

13%

12%

18%

22%33%

36%

4%3%

2007 2008 2009e

Social Networks

Voice

Internet Mobile

Messenger

Proximity

Applications


Investment by typology



16

18%

8%

74%

Media buying

TechonolgyCreativity

6

94

Display

Search22%

33%36%

2007 2008 2009e

Evolution % investment * Evolution Investment* (millions €) % Investment per Concept % Investment per action type

Internet Mobile is one of the main lever for marketing mobile with an investment of 11,6 million (€) for 2009.

Most part of this investment is directed to the buy of banners (it represents the 74% of total investment on

Media).

The 6% is invested in Search.


Investment by typology: Internet Mobile



3,39

9,52

11,64

2007 2008 2009e

17

Applications and Advergamings show a growing evolution, becoming on 2009 the second investment typology.

More than 9 million (€) are mostly invested in technology, due to it relevance on development. Creativity is

important too.

72%

23% 5% media buying

technology

creativity

36%

23%

28%

2007 2008 2009e

5,38

6,53

9,06

2007 2008 2009e

Evolution investment*(%) Evolución Investment* ( millions €) % Investment per Concept





18

Messenger is making up positions in 2009, reaching 18% of total investment.

About 6 millions (€) are spared evenly on media and technology. Creativity relevance is not very high.

SMS are still the most used

81%

19%

sms

mms

45%

5%

50%

Compra de Medios

Tecnología

creatividad

13%12%

18%

2007 2008 2009e

1,92

3,44

5,82

2007 2008 2009e

Evolution investment* million € % Investment by concept % Investement by type od actionEvolution % investment*





19

% Investment by concept 2009

Media buying represents 12,5 millions (€) in 2009, it reflects 39% of total investment.

Investment by Concept 2009 (Total Mobile Marketing)

74

50

105 5

15

39

18

45

65 72

35

75

46

8 5

25 23

60

515

Internet

mobile

Messenger LBS Applications Social

networks

Voice total

Media buying Techonoly/production Creativity

12.580

14.860

4.842

Investment (millions €)


Investment by concept


20

% of investment* in Mobile Marketing per sector.

Automotive and Travel are the most active sectors during this year.

In consumer goods sector, Beauty industry highlights achieving the 9%

16%

13%

9%8%

7% 7%

5% 5%4% 4%

2% 2% 2%1% 1%

Automotive

Transports and

travelling

Beauty

Distribution and

restoration

Telecommunications

Finance

Beverages

Culture

Food

s

Lea

sure time and

sports Health

Cleaning

Energy

Equipments

Services


Investment by sectors %



21

Mobile Marketing investment by sector million €

Seven main sectors group 58% of total investment, representing more than 2 millions € each.

5.2234.232

2.932 2.6562.227 2.186

1.576 1.528 1.301 1.164767 650 502 275 164

Autom

otive

Transports and

travelling

Beau

ty

Distribu

tion an

d

restoration

Telecommun

ications

Finance

Beverage

s

Culture

Food

Lea

sure time and

sports H

ealth

Clean

ing

Energy

Equ

ipments

Services


Investment by sectors millions (€)



22

Investment* in off and on portals(%)

Forecasting states that investment in Off portals is increasing.

7867

50

2233

50

2009e 2010e 2011e

on portal off portal


Investment by type of portal



23

Index




Future Trends

24

Sector Development

Current development areas

The main development areas mentioned by associated are in

relation with the economic revitalization of the sector:

• Real flat fees: for offering value added to the user, as tv on

mobile telephones or in the internet.

• More capacity for the users to obtain real time

information.

• LBS systems will mean more value for the user.

• Innovation throughout formats and creativity. Applications

and adapted contents are essential for development.

• Advertisers would have to have higher knowledge and

channel will have to be integreated on communications

strategies.

• Permission Marketing databases.

25

How does tech dependence affect to the development of the following factors?

Future trends

Technological dependence

Tariffs and terminals are essential on sector development, however, contents development area provides a closer look at business.

2,6 2,6 2,52,4

2,3 2,2

1,9

2,9

1

2

3

Data flat fees Handset and

terminalas

New

applications

development

Contents

development

Networks The internet standard

regulation and

development

New operative

systems and

platforms

development

High

Medium

Low


26

Formats with higher future (% agreement)

Future trends

Formats with higher future

Contents and applications are considered the formats with higher future. This is because advertisers have a great

interest on it.

22%20% 20%

16%

10%

6%4%

Contents and

applications (inc.

Advergaming and

widgets)

Internet Mobile

advertising

(search)

Messenger (SMS,

MMS)

Display Bluetooth and

LBS

(geomarketing)

Cupponing Voice


27

“Essential on new ways of advertising”“Differentiator“specific target”“Operators are betting for widgets”“The most important thing at campaigns”

Contents and applicationsIncluding advergaming y widgets22%

1st position

Mobile internet(search)20%2nd position

“Google Search model”“User has an increasingly need to look for information wherever he/she is”

“mature market, low price”“advertisers are familiar with it”“powerful with interactivity”“SMS will live for longer”“coverage, immediacy and familiar media”

Messenger (sms and mms)20%3er position

Future trends

Formats with higher future: Reasons


28

Proximity (bluetooth and LBS)10%5th position

“LBS: direct utility for the user.”“Relevance and capacity for segmentation”“but… not very massive and kind of intrusive”

Cuponning6%6th position “Measuring capacity”

Voice4%7th position

“it does not depends on downloading”“it is simple and it interacts with other services”

Mobile internet(display)16%.

4ºth position“internet and mobile are like brothers”“surfing in the internet capacity and flat fees”

Future trends

Formats with higher future: Reasons


29

What services do you think are going to be more accepted and demanded by mobile users?

2,722,56 2,56

2,44 2,39 2,39 2,33

2,11

1,67

2,94

1

2

3

Internet

mobile

Messenger social

networks

Search

engines

Applications

and

advergaming

video widgets Cuponning LBS 2d

Future trends

Services with greater demand

The ability to surf the internet will mean a higher use of applications, downloads and social networks at real time.

High

Medium

Low


30

What variable do you thing is more helpful for enhancing mobile marketing services?

Future trends

Marketing and communication elements

It is vital the direct approach to customer, supported by economic results and analysis that confirm its efficiency.

4,1

3,7 3,63,4

3,13,0

4,2

1

2

3

4

5

Visits of

commercials

Studies The internet mobile marketing

association

Fairs Events Advertising on

mass media

Very useful

Indifferent

Few

Quite useful

Not useful


Documents

Mma II study of investment in marketing and mobile advertising spain