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9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 1 @HelloMobile on #MobileRocks at “Mobile stands 1 st in Africa” “Mobile is the 7 th Mass Media”

Silverstone Mobile Rocks MWA2014

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9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 1

@HelloMobile on #MobileRocks at

“Mobile

stands 1st

in Africa”

“Mobile is the

7th Mass

Media”

#MobileRocks South Africa

Raymond Buckle, Group CEO Silverstone / MMA SA Founding member and MMA EMEA Board Member

@HelloMobile

According to AMPS2013AB:

“Mobile is… as close as you can get to your

consumers in South Africa!” #MobileRocks

• Service

• Loyalty

• Rewards

• Social

• mCommerce

• mCRM

• Up-sell

• Cross Sell

• Mobile Advertising

• Direct Response

• Permission Marketing

• Mobile Internet

• Games

• Branded Utilities

• CommunityBrand

BuildingAcquisition

RetentionGrowth

Traditional A/BTL

Direct / CRM

Digital

Social

Mobile Marketing& Advertising

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 3

We believe #MobileRocks and belongs at

the heart of the Marketing Mix

Mobile

Medium Audience Activities

Devices & Operators

5: Brand / Product Category Profiles

6: Mobile Marketing and Advertising Opportunities

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 4

6 Part Report Series

based on AMPS 2013 AB

Tweet

#MobileRocks at

@HelloMobile to

get a copy of this

MWA deck now.

Mobile

Perspective of

SAARF’s AMPS

(All Media and

Products Survey)

Since 2009

Bi-Annual rolling survey of 25,000 to 30,000 respondents, interviewed and weighted to the SA Adult population.

It’s SA’s media planning and buying bible.

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 5

14.6m / 39%

Basic Cellphone use

SMS, Voice & USSD

#

36m / 97%

Mobile Household

Penetration

2.4

32.2m / 87%

Individual Mobile

Phone Ownership

37.2m

adults

1.8m / 5%

Tablet Owners13.2m / 36%

Smartphone Owners

17.7m / 48%

Use SMS, Voice, USSD

and Mobile Data

11.7m / 32%

Mobile Internet 6.5m / 17% Fixed Internet

19.2m / 52%

Total Data/Internet

Penetration

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 6

Tomi Ahonen: “Mobile is the 7th

Mass Media”

AMPS SA: Mobile stands 1st

as interactive and mass media…

97%

88%83% 83%

50%47% 47% 46%

30%

18%

8%

Cellphone OOH Radio TV Internet Any Print:Newspaper

Print:Magazines

Mobile Internet Pay TV Fixed internet Cinema

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 7

Explosive growth of Mobile

compared to other Mass Media Channels

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004/5 2005/6 2006/7 2007 2008 2009 2010 2011 2012 2013

MIL

LIO

NS

Radio TV DVD DSTV/ MNET/ Top TV Landline telephone

Cellphone Computer Internet Any Internet - mobile OOH

Newspaper Magazine Cinema

Inflection

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 8

94% of SA working adults use a cell

phone, up from 29% in 2000.

5%

20%

46%

70%

80%

91%94%

1996 1997 1998 1999 2000 2001 2002 2003 2004/5 2005/6 2006/7 2007 2008A 2008B 2009A 2009B 2010 2011 2012 2013

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 9

5% or 1.8m

Tablet Owners

127

616

962

1 840

48

246

392

736

0

500

1 000

1 500

2 000

2 500

2011 2012 2013 Jan-Jun 2013 Jul-Dec

00

0s

Population Households

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 10

Penetration of cellular phone

ownership and use by LSM

39%

36%

58%

58%

55%

50%

42%

31%

27%

18%

10%

32% 2

% 4%

8%

16%

28%

42%

54%

65%

76%

16%

5%

14% 15%

16%

20%

18% 18% 13%

12%

11

%87%

42%

74%77%

79%

85%88%

91%94% 95% 97%

0%

20%

40%

60%

80%

100%

120%

LSM 1-10 LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

Voice, SMS & USSD 14,4m Mobile internet 11,7m Mobile data other than internet 6.1m

#1

Mobile as the

1st

Screen

In a recent global study released by

MillwardBrown, an MMA Member –

AdReaction 2014 – South Africa

was featured as part of the survey

and the results are surprising…For more information contact…

Monique [email protected]

Director Digital Solutions, MillwardBrownSA

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 11

Daily Screen Usage –

South Africa (source: Millward Brown)

TOTAL MINS: 431

115minutes

(27%)

127minutes

(29%)

126minutes

(29%)

63minutes

(15%)

Global Average: 113 (27%)

Global Average: 108 (26%)

Global Average: 50 (12%)

Global Average: 147 (35%)

Quirky Tweetable

AMPS Stats…

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 13

2 x TVThere are more than twice as many cellphones

as there are TV sets in SA (34.6m vs 17m)

76% of

email

76% of e-mails are sent

and received from a cellphone

8.4x

landlines

There are 8.4 times more homes with

cellphones than landline telephones

4.3x

Computer

There are 4.3 times more households with a

cellphone than a computer

2.9x

email users

SMS text messaging is used by 2.9 times more

people than email

5x

PC internet

There are 5 times more cellphone subscribers

than fixed Internet users

AMPS Stats…

Mobile dominates our

lives as a media channel.

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 14

84%84% of internet users in SA access the internet

via mobile technology

99%99% or 17,570m mobile data users, also use

SMS and USSD functions

130k130,000 people use mobile data but do not own

their own cellphone – go figure…

17.6m17,653m cellphone owners use Mobile Internet

and Data services

14.6m14.593m cellphone owners use Voice, SMS and

USSD services only

32.2mThere are 32.246m adult Cellphone owners in

South Africa

2.4 per

household

In 2013, there was an average of 2.4 cellphones

per household in South Africa

AMPS Stats…

#MobileIs…

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 15

94%93.5% of SA working adults use a cellphone

compared to 29% in the year 2000

4.9%1.8m or 4.9% of Adult Population own a Tablet

Device (up from 1.8% in 2012)

36%36% of SA Adult Population owns a smartphone

(that’s 41% or 13.2m of cellphone owners)

R4,129,

000,000,000

Only mobile allows you to reach 87% of

R4,746Trillion Annual Household Spend

R565Tablet Owners spend an average of R529 on

cellular per month

• Personal

• Always On

• Always Close

• Versatile

• Effective

• Central to the

Path to Purchase

• Infinitely

Measurable

AMPS Mobile Review 2014

A Mobile Marketing Association South Africa Report proudly developed and sponsored by

#MobileRocks SA…

Part 2: The Audience

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 16

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 17

Penetration of cellular phone ownership

By LSM (Living Standards Measure)

87%

42%

74%77%

79%

85%88%

91%94% 95% 97%

R 10 609

R 1 480 R 2 218 R 2 585 R 3 205R 4 344

R 6 822

R 11 882

R 16 754

R 23 539

R 36 883

R 0

R 10 000

R 20 000

R 30 000

R 40 000

R 50 000

R 60 000

LSM 1-10 LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

Mo

nth

ly H

ouse

ho

ld I

ncom

e

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 18

Penetration of Adult Population by

Audience Segment

44% 50% 6

2% 69%

43% 3

0%

25%

25%

87%

80%

86%

93%

Bla

ck

Co

lou

red

India

n

White

Race63%

61%

47%

20%

24%

33%

43%

57%

86%

93%90%

77%

15

-24

25

-34

35

-49

50

+

Age

61%

57%

43%

39%

41%

40%

31%

29%

43%

39% 4

5%

48%

92%

85% 85%

77%

86%88%

Gau

teng

W C

ap

e

KZ

N

E C

ap

e

F S

tate

Oth

er

Province

48%

46%

37% 4

1%

86%

87%

Ma

le

Fem

ale

Gender

48%

39%

87%

Popu

lati

on

Norm

Voice, SMS & USSD Use Mobile Data Use Cellphone Ownership

37.2m

32.2m

17.7m

14.6m

19.1m

11.7m

6.4m

Audience

Profiles

SA Adult

Population

Cellphone

Owners

Mobile Data

Basic

Cellphone

Total Data

Access

Mobile

Internet

Fixed

Internet

1.8mTablet

Owners

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 19

Cellphone Owner Core Profile

FM

Ed

uc

ati

on

Em

plo

ym

en

t

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 20

Snapshot: Cellphone Owners

32.2m | 87% of Adult Audience

15 50Age 37

1 10LSM 7

Income R11.4k

R154

53% Below 35

78% Black

26% English / Afrikaans

74% African Language

48% Some High school

39% Working

15% Students

55% Urban / 27% GP

53% LSM 5 to 7

Gender 52% F

Gender Location

45%

55%

Rural Urban

Age

26% 27%25%

22%

15-24 25-34 35-49 50+

Lan

gu

ag

eR

ace

78% 8% 11%

Black Coloured Indian White

74% 14% 12%

African languages Afrikaans English Other Language

48%

36%

15%

Up to Some High Matric Tertiary education

Pro

vin

ce

Inco

me

LS

M

27%

19%

12%

11%

10%

8%

7%

5%

Cell Exp

1%3%

5%

11%

16%

24%

13%10% 11%

7%

LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM10

3%

8%10%

19%17%

12%15%

17%

39%

30%

15%9% 8%

Working Unemployed Student Retired Housewife

48%

52%

Male Female

Ed

uc

ati

on

Em

plo

ym

en

t

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 21

Snapshot: Basic Cellphone Users

14.6m | 39% of Adult Audience

Basic Cellphone User Core Profile

15 50Age 43

1 10LSM 5.4

Income R7k

R94

64% 35 and older

85% Black

18% English / Afrikaans

83% African Language

67% Some High school

33% Working

35% Unemployed

62% Rural

62% LSM 4 to 6

Gender

Gender LocationAge

Lan

gu

ag

eR

ace

Pro

vin

ce

Inco

me

LS

M

Cell Exp

21%

20%

13%

12%

9%

9%

8%

6%

2%

1%

5%8%

16%

21%

25%

10%

6% 5%2%

LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM10

4%

12%15%

25%

18%

10% 10%7%

35% 33%

16%

9% 7%

67%

27%

6%

Up to Some High Matric Tertiary education

83% 11% 7%

African languages Afrikaans English Other Language

85% 7% 2% 6%

Black Coloured Indian White

62%

38%

Rural Urban

16%

21%

27%

37%

15-24 25-34 35-49 50+

46%

55%

Male Female

FM 55% F

Ed

uc

ati

on

Em

plo

ym

en

t

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 22

Snapshot: Mobile Data Users

17.7m | 48% of Adult Audience

Mobile Data User Core Profile

15 50Age 32

1 10LSM 7

Income R15k

R208

66% under 35

72% Black

32% English / Afrikaans

67% African Language

67% Matric +Tertiary(23%)

43% Working

22% Students

68% Urban

79% LSM 6 to 10

Gender

Gender LocationAge

Lan

gu

ag

eR

ace

Pro

vin

ce

Inco

me

LS

M

Cell Exp

FM 50% F

33%

17%

14%

10%

8% 7% 5% 5% 1%

0% 1% 2%

6%

12%

23%

16%

12%

16%

12%

LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

2%5% 6%

15% 16%13%

19%

25%

43%

26%22%

6% 3%

44%

23%

33%

Matric Tertiary education Up to Some High

67% 16% 16%

African languages Afrikaans English Other Language

72% 10%3% 15%

Black Coloured Indian White

32%

68%

Rural Urban

50%50%

Male Female

34%32%

24%

10%

15-24 25-34 35-49 50+

Ed

uc

ati

on

Em

plo

ym

en

t

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 23

Snapshot: Tablet Users

1.8m | 5% of Adult Audience

Tablet User Core Profile

15 50Age 32

1 10LSM 8.7

Income R29k

R565

66% under 35

52% Black

56% English / Afrikaans

43% African Language

47% Tertiary Education

57% Working

25% Students

93% Urban

67% LSM 9 and 10

Gender

Gender LocationAge

Ra

ce

Pro

vin

ce

Inco

me

LS

M

Cell Exp

FM 54%

Lan

gu

ag

e

35%31%

24%

11%

15-24 25-34 35-49 50+

54%

46%

Male Female

7%

93%

Rural Urban

52% 10% 8% 30%

Black Coloured Indian White

43% 20% 36%

African languages Afrikaans English Other Language

15%

37%47%

Up to Some High Matric Tertiary education

57%

25%

10% 6% 2%

1% 1% 1% 4% 8% 8%17%

62%

0% 0% 0% 0% 1%

9% 10%13%

29%

38%

LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

52%

18%

13%

7%

4%

3%

2%

1% 1%

Ed

uc

ati

on

Em

plo

ym

en

t

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 24

Snapshot: Fixed Internet

6.4m | 17% of Adult Audience

Fixed Internet User Core Profile

15 50Age 35

1 10LSM 8.3

Income R24k

R248

66% under 35

56% Black

51% English / Afrikaans

48% African Language

44% Tertiary Education

57% Working

22% Students

81% Urban

71% LSM 8 to 10

Gender

Gender LocationAge

Ra

ce

Pro

vin

ce

Inco

me

LS

M

Cell Exp

FM 57%

Lan

gu

ag

e

27%29% 29%

16%

15-24 25-34 35-49 50+

57%

43%

Male Female

19%

81%

Rural Urban

56% 9% 6% 29%

Black Coloured Indian White

48% 21% 30%

African languages Afrikaans English Other Language

13%

43% 44%

Up to Some High Matric Tertiary education

57%

22%12%

5% 4%

0% 2% 2% 5% 9% 10%

24%

48%

0% 0% 0% 1%4%

13% 13%15%

28% 28%

LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

41%

17%

15%

7%

6%

5%

4%

3%

1%

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 25

Core Audience Profile ComparisonA

vg

Po

pu

lati

on

Av

g

Ag

e

Av

g

LS

M

Av

g

Ho

useh

old

Inco

me

Av

era

ge

Cellu

lar

Exp

en

se

37 214 000 32 246 000

17 783 000 14 593 000 19 187 000

11 728 000 6 448 000

1 840 000

-

20 000 000

40 000 000

SA Adult

Population

Cellphone Owners Mobile Data Basic Cellphone Total Data Access Mobile Internet Fixed Internet Tablet Owners

38 37 32

43 32 31 35 32

-

50

6,1 6,3 7,0 5,4

7,0 7,5 8,3 8,7

-

10,0

R 10 609 R 11 356 R 14 925

R 7 008 R 14 731

R 17 927 R 23 776

R 29 259

R -

R 20 000

R 40 000

R 154 R 154 R 208 R 94

R 210 R 253 R 248

R 565

R -

R 500

R 1 000

83%

52%

30%

34%

3%

31%

71%

55%

16%

18%

0%

16%

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 26

Interactive Penetration by cluster

based on Muller Cluster Model

LSM 1-3

Rural

LSM 4-5

Rural / Peri -Urban

LSM 6-7

Peri-Urban / Urban

LSM7-10 Low

Metros

LSM10 High

Metros

Traditional11% | 4.1m

R2,317 HHI/m

Transitional28% | 10.4m

R3,870 HHI/m

Middle Class30% | 11.2m

R7,614 HHI/m Upper Middle28% | 10.4m

R20,639 HHI/m

Elite3% | 1.1m

R41,015 HHI/m

R9.5bn

R40.3bn

R85bnR215bn

R45.8bn

Cell

Basic Cell Use

Mobile Data

Any Internet

Fixed Internet (Desktop)

Internet at Home

87%

39%

47%

52%

17%

49%

94%

23%

71%

76%

39%

75%

98%

8%

89%

95%

81%

95%

88%

40%

48%

52%

11%

49%

Penetration in adult

population

37.2m

Only mobile

allows you to

reach 87% of

R4,746Tn Annual

Household

Spend

AMPS Mobile Review 2014

A Mobile Marketing Association South Africa Report proudly developed and sponsored by

#MobileRocks SA…

Part 3: Activities on Mobile

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 27

8 746

28 734

24 387 24 473

17 724

12 137

6 758

11 251

483

0%

10%10% 11%

25%26%

34%

38%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

-

4 000

8 000

12 000

16 000

20 000

24 000

28 000

32 000

36 000

Play games Receive Please callme message

Send and Receive anSMS

Send Please call memessage

Take photos Listen Radio Competition/ Vote/Donate

Take video Watch TV

Gro

wth

YO

Y

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 28

Size & Growth for Cellphone activities

that require NO DATA connectivity…

17 504

9 679 9 086

10 113

5 089

10 582

5 841

10 829

4 143

11 092

1 872

6 498

1 649

6 426 5 800

27% 27%30% 30%

35%39%

44% 45% 46%49% 50%

64%

70%

116%

167%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

Mobiactivities

MMS Social:Facebook

SocialNetworking

Social: Other DownloadMusic

Email IM / Chat Mobile apps Internet Subscribe tocontent

Downloadringtone or

logo

Readpublication

Watch video Social:Twitter

Gro

wth

YO

Y

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 29

Size & Growth for Cellphone activities that

REQUIRE DATA connectivity…

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 30

Size & Growth for Internet Activities

on Cellphone

1 298 1 534 1 770

236 236

1 062

4 838

354

1 652

4 851

5 179

6 107

10 169

680

9 967 8 633

2 715

1 333

3 659

0% 0% 0% 0% 0% 0% 0% 0% 0%

25%

29%

38%

43% 44% 44%47%

66%68%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Gro

wth

YO

Y

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 31

#MobileRocks Part 3

Recap… Mobile Activities

Receive Please call me message

28.7m

Send Please call me message

24.5m

Send and Receive an SMS

24.4m

Take photos

17.7m

Mobile Data Activities

17.5m

Listen Radio

12.1m

Take video

11.3m

Internet

11.1m

IM / Chat

10.8m

DL Music

10.6m

Take photos

grew by 3.5m

Watch video

grew by 3.5m

IM / Chat

grew by 3.4m

Take video

grew by 3.1m

Search

grew by 3.1m

Download Music

grew by 3.0m

Social Networking

grew by 2.7m

Mobile data activities

grew by 3.7m

Internet

grew by 3.7m

Receive PCM message

grew by 2.5m

Social: Twitter

grew by 47%

Watch video

grew by 116%

Download Apps

grew by 71%

Read publication

grew by 70%

Watch Online Video

grew by 68%

Internet Banking

grew by 66%

Download ringtone or logo

grew by 64%

Subscribe to content

grew by 50%

Internet

grew by 49%

Social Networking

grew by 47%

2013 Top 10

most popular

activities

2013 Top 10

biggest growth

activities

2013 Top 10

fastest growing

activities

The Internet in

South Africa

The only activity that has not

achieved a mobile moment is

Online TV.

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 32

25

2

37

8

63

01 1

34

1 3

86

1 3

86

1 8

90

2 0

16

2 5

20

2 7

72

3 6

54

4 1

585

54

4

5 6

70

8 1

909 1

981

0 4

5811

71

8

13

0

26

0

32

5

65

0

19

571

5

91

0

325

1 4

95

1 6

25

1 7

55

1 3

65

1 6

25

1 3

00

4 9

40

2 7

30

1 4

95

5 3

95

23

6

23

6

35

4

70

81 2

98

1 0

62

1 2

98

1 7

70

1 5

34

1 6

522 7

143 6

584

83

8

5 1

926 1

36

8 6

14

10

14

8

9 9

12

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

00

0s

Any platform Via computer Via cellphone

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 33

Internet Activities by Platform

Audience base sizes:

– Any platform – 12.6m

– Via computer – 6.5m

– Via cellphone – 11.8m

20

5

47

6

656

1 0

34

1 4

58

1 3

10

1 3

56

2 5

17

3 4

65

3 5

90

9 0

49

10

41

2

11

92

5

13

79

5

14

99

3

15

94

1

17

21

0

19

18

7

22

73

3 26

98

5 3

2 0

83

38

19

4

6 3

97

7 5

19

9 3

27

10

77

9

11

48

7

13

23

8

14

87

1

17

82

9

21

37

5 25

62

7 3

0 7

25

36

83

6

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1996 1997 1998 1999 2000 2001 2002 2003 2004/52005/62006/7 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

00

0s

Total data access (any type) Mobile data access

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 34

Data and internet Access Trend

19% 2X

Internet at Home

Internet at home has grown from 5% in 2006 to 31% in 2013.

Dial-up and ISDN is officially dead.

Mobile Data and Mobile Internet rules.

Long live the internet… at home!

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 35

1 6

22

1 9

99

2 5

63

3 6

58

5 0

16

6 8

54

8 5

37

11

48

3

29

28

1

29

11

0

28

74

2

28

84

0

29

00

4

28

08

0

26

39

9

25

73

1

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2006 2007 2008 2009 2010 2011 2012 2013A6

Internet at home No internet at home

31%5%

0%

20%

40%

60%

80%

100%

2006A 2007 2008 2009 2010 2011 2012 2013A6

Dial-Up ADSL

ISDN Wireless network (iburst, WiFi)

Mobile Network (3G, Edge, GPRS) Mobile Internet (Wap)

Mobile Internet device (iPad, Sony PSP) WebBox/ Internet OnTV

Inte

rnet access a

t hom

eT

yp

e o

f A

ccess

AMPS Mobile Review 2014

A Mobile Marketing Association South Africa Report proudly developed and sponsored by

#MobileRocks SA…

Part 4: Devices / Operators

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 36

Mobile Network Operators

and Device Manufacturers

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 37

Mobile Network

Operator Market

Share

(Adults 15+ AMPS 2013AB)

According to AMPS2013, Vodacom is still leading the market at 45.7%, closely followed by MTN at 43.1% and Cell C is at 10.4%

Telkom Mobile, Virgin and other MVNO’s make up less than 1% of total market share.

The smaller the network, the greater the tendency to use mobile data.

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 38

45,7%

43,1%

10,4%

0,5%

0,2%

0,1%

Vodacom

MTN

Cell C

Telkom Mobile

Virgin Mobile

Other Networks

Mobile Network Operator Market Share (SA Adults 15+)

54 53 5266 66 73

56

45 46 4734 32 26

44

All CellphoneOwners

Vodacom MTN Cell C Telkom Mobile Virgin Mobile Other Networks

% o

f B

ase

Mobile Data Voice, SMS & USSD only

Cellphone Use by Mobile Network Operator (SA Adults 15+)

Expenditure by

Users on

Cellphones

According to AMPS, the mobile networks are earning R5bn per month off South African consumers.

The average cellphone owner is spending R154 per month on cell and airtime related expenses.

If you dig deeper…Mobile Data users spend R208/month while basic cellphone users only spend R94/month.

Vodacom at 46% market share, gets 27% or almost R50/month more out of the average user than MTN. His equates to R800m /month more revenue.

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 39

Operator

Number

of users

000s

Average monthly cell expenses

Rm per

month

Total usersMobile data

users

Voice / USSD

SMS only

users

Cellphone users 32,461 R 154 R 208 R 94 R 4,999

Vodacom 14,938 R 177 R 207 R 99 R 2,644

MTN 14,146 R 128 R 208 R 92 R 1,811

Cell C 3,150 R 158 R 207 R 82 R 498

Telkom Mobile 167 R 185 R 207 R 97 R 31

Virgin Mobile 50 R 250 R 207 R 177 R 13

Other Network 9 R 57 R 207 R 52 R 1

Device

Manufacturers

Market Share

According to AMPS2013 Nokia is still leading at 56% market share with 17.94m Nokia owners.

Followed by Samsung with 5.67m owners 17.6% and then Blackberry with 4.48m owners at 13.9%.

Blackberry, iPhone and HTC users always use data, with Nokia and Samsung and LG reflecting a more even split between basic use and data.

Interestingly there are only 230k

Apple iPhone owners based on the AMPS 2013 audience.

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 40

55,7%

17,6%

13,9%

5,1%

2,7%

2,0%

1,1%

0,7%

0,6%

0,4%

0,2%

0,1%

0,1%

Nokia

Samsung

BlackBerry

Other

Vodafone

LG

Motorola

Apple iPhone

Sony Ericsson

HTC

Ericsson

Siemens

SAGEM0.03m

0.03m

0.06m

0.13m

0.19m

0.23m

0.35m

0.64m

0.87m

1.64m

4.48m

5.67m

17.94m

MobileData

Voice,SMS &USSD

How to summarise this?

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 41

Cellphone

Owners

32.2m /

87% of Adults

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 42

Traditional A/BTL

Direct / CRM

Digital

Social / PR

Mobile

Whether you’re a big brand, corporate, start-up or Spaza –

Mobile belongs at the heart of the marketing mix!

It should form a layer in every campaign or strategy.

Reach Engagement Conversion Transaction

Use

Location

Me

dia

Ta

cti

cs

Opportunity Guide

for Basic Cellphone

Users

14.6m /

39% of Adults

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014

#

Reach Engagement Conversion Transactions

Voice

SMS

USSD

Smart

Message

Internet

Brower

Apps

Social

Payments

MMS

Mobile Email

Camera

C2A:

SMS keyword

to Short Code

C2A:

Dial USSD

C2A:

Please Call

Me

C2A:

Missed Call /

Flash Msg

Text Tags

Referral

Messaging

Outbound

Calls (AVM)

Leverage

A/BTL / POS

/ On Pack

Opt-in SMS

Opt-in Smart

Message

Opt-ins

Competitions

Mobile

Payments

Airtime

Rewards

Interactive

IVR & USSD

Interactive

SMS Apps

Profiling

Location

Targeting

Surveys &

Quizzes

Text

Vouchers

Product

Purchase

Confirmation

Audio

Messaging

Direct & Lead

Generation

CRM

Messaging

Click to

Call & Call

Backs

Text Alerts &

Notifications

43

Opportunity Guide

for Mobile

Data/Internet Users

17.7m /

48% of Adults

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014

Use

Location (IP

/ GPS / Cell

ID / Beacons)

Voice

SMS

USSD

Smart

Message

Internet

Brower

Native Apps

Social

Payments

MMS

Mobile Email

Camera

Me

dia

Ta

cti

cs

Reach Engagement Conversion Transactions

All the media

and activation

opportunities

listed for

basic phones

plus…

QR Codes /

Image/Audio

Recognition

Mobile

Search and

SEO

RTB / DSP /

Programmatic

Media

Deep

Targeting and

Retargeting

Organic &

Bought Social

Media

Mobile Email

+ App Push

Browser +

InApp Display

Advertising

Rich Media,

Mobile Video

ads, et al

All of the

media

opportunities,

mechanics

and tactics

applicable to

basic phones

plus …

Photo

uploads

Location

based Check-

ins

Interest

based Info-

tainment

Forums,

chat and msg

boards

OTP Cell

number

validation

Voting /

Rating /

Polling

Deep Social

Integration

Local based

store finders

One click-to-

call

Augmented

Reality

Points &

Leaderboards

(Gamification)

Product

Comparison +

Vouchers &

Coupons

44

Opportunity Guide

for

Tablet Users

1.8m /

5% of Adults

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 45

127

616

962

1 840

48246

392

736

0

500

1 000

1 500

2 000

2 500

2011 2012 2013 Jan-Jun 2013 Jul-Dec

00

0s

Population Households

Tablets are bigger than

smartphone

Size-up and HD your

creative – it’s ok on

Wi-Fi

Tablets don’t have a

mouse or keyboard

Use touch and swipe

techniques

Remember the “C”

Word

They’re leaning back -

inform and entertain.

Video.

They earn 3X avg.,

urban, youthful &

educated

Be clever. Innovate!

They can afford to buy!They’re social

Make it easy to

connect and share –

integrate social

Personalise msg &

content – use App

Push with caution

Its really personal –

Profile and Segment

audience

#MobileRocks

@HelloMobile to get the report today.

Enjoy the show!!!

9/2014 Raymond Buckle, Silverstone: #MobileRocks SA @MobileWebAfrica2014 46