Armc Dublin 2015 Tomi Ahonen

Twitter: @tomiahonen Copyright © Tomi T Ahonen 2015 www.tomiahonen.com

Tomi T Ahonen, MBA

Author and Consultant

Twitter: @tomiahonen

www.tomiahonen.com Augmented Reality Marketing Conference

Dublin Ireland

29 April 2015

Tomi Seen in:

60 Countries 350 Conference Presentations

100 Cities Cumulative audience over 125,000 people

Recent Developments in

Mobile Relating to

Augmented Reality


The Numbers

Now into uncharted territory...


0

1

2

3

4

5

6

7

8

1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014

Global Media & Comms 2014

Source: TomiAhonen Almanac 2015

Population 7.2B

FM Radio 4.2B

PC 1.7B

Landline 1.0B

Internet 3.0B

TV 2.0B


0

1

2

3

4

5

6

7

8

1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014



Population 7.2B

FM Radio 4.2B

PC 1.7B

Landline 1.0B

Mobile 7.4B

Internet 3.0B

TV 2.0B


0

1

2

3

4

5

6

7

8

1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014



Population 7.2B

FM Radio 4.2B

PC 1.7B

Landline 1.0B

Mobile 7.4B

Internet 3.0B

TV 2.0B Smartphone 2.1B


Smartphone Migration Rate out of All Phones

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: TomiAhonen Consulting January 31, 2015

dumbphones

smartphones

Migration to Smartphones 66% Year 2014 saw 1.29B smartphones sold (66% of all new handsets)


The Consumer and Mobile

We look at our mobile 221 times per day


221 Times Per Day

• The stats of our mobile phone use keep growing

• Latest survey by Tecmark in UK of 2,000 smartphone owners finds that the average UK smartphone owner looks at their phone 221 times per day

• Thats once every 4 minutes and 18 seconds of every waking hour

• We also stare at the phone screen now 3 hours per day on average, so 18.9% of the time we are awake

Source: Daily Mail 8 Oct 2014


New Zealand Mobile Web

• Vodafone statistics at the annual Tel.Con conference:

• 74% check social networking from bed

• 41% check the mobile internet while on toilet

• 38% have settled bet by finding answer on phone

• 23% access the mobile internet from the beach Source: Vodafone NZ presentation at Tel.Con in Auckland April 2012

The Truth is In My Pocket


New Zealand Mobile Web

• Vodafone statistics at the annual Tel.Con conference:

• 74% check social networking from bed

• 41% check the mobile internet while on toilet

• 38% have settled bet by finding answer on phone

• 23% access the mobile internet from the beach Source: Vodafone NZ presentation at Tel.Con in Auckland April 2012

The Truth is In My Pocket

Fresh Pew April 2015 Data 53%

of US smartphone owners

settled argument by mobile


Mobile and Marketing

They are still experimenting and learning


mAd $42.6 Billion in 2014

• eMarketer has reported the final count of mobile advertising spending globally in 2014. It was 42.6 Billion dollars

• mAd was 29% of all digital advertising and online non-mobile ads were 102.4 Billion dollars

• Total advertising spending in 2014 worldwide was $546 Billion so mobile now accounts for 8% of total advertising

• Note eMarketer projects mobile advertising to continue to grow fastest of any advertising and grow by 60% in 2015 reaching $68.7 Billion

Source: eMarketer 2 Apr 2015


Hijack Customers from Competitor

• Guatemala sports shoe store chain Meat Pack hijack

campaign when visited rival shoe stores. Geo-located

every store in Guatemala of rivals. Then they invited

their own customers to opt in to mobile marketing

• For one week when their registered opt-in customer

visited a rival store, the customer received timed offer

of discount to come to the nearest Meat Pack

• The discounts were on count-down, starting at 100%,

then 99%, 98%, 97% etc until customer entered store

• 600 customers were hijacked in one week.

• Highest discount achieved was 89% Source: Cannes Lions International Awards May 2013

(Agency: 4AM Saatchi & Saatchi, Guatemala)


Click-to-Buy SI Swimsuit App

• Sports Illustrated introduced freemium to Swimsuit

edition in 2009. First premium edition cost $1.99 and

10% who saw free app, bought via click-to-buy link

• The 2013 edition had 500,000

downloads of the free version and

the upgrade now costs $7.99.

Has 360 degree views of models

• SI have not published how many

are now buying the premium version

but as price is up, likely its still a

very good seller. If only 10% bought

it like before, SI earned $399,500 Source: Adweek 18 May 2014


Girlswalker 45% Redemption Rate

• Teen girl mobile magazine Tokyo Girl / Girlswalker

twice weekly with youth content: fashion, dating,

make-up etc. Concept is freemium - base mobile web

magazine free, premium editions from paid premium

Gold level with videos etc to platinum level live shows

• Alan Moore reports it is achieving 45% redemption

rates to its fashion-oriented coupons and offers

Source: Alan Moore

book No Straight Lines

2012


Marketers Behind on Mobile

• Forrester 2014 survey of marketing professionals:

• 42% are employed in companies so new to mobile, they are still building their first mobile strategy or it is less than a year old

• 65% don’t have adequate budgets for mobile

• 62% don’t collect any data on mobile use by their customers. Of those that do, most only measure mobile web banner ad clicks

• 41% don’t even know own customers’ attitudes to and uses of mobile

• Forrester is critical of marketers focusing on wrong tools like apps rather than SMS

• Also responsive design use as substitute for understanding full power of mobile Source: Mobile Marketer 24 Oct 2014


AR

Whats going on..


The 7 Mass Media

Source: Ahonen book Mobile as 7th of the Mass Media, 2008

1st mass medium Print 1500: books, newspapers, magazines

2nd medium Recordings 1890s: music, games, movies

3rd medium Cinema 1910s

4th medium Radio 1920s

5th medium TV 1950s

6th medium Internet 1995s

7th medium Mobile 2000s


Now Its The 8 Mass Media

Source: Tomi Ahonen book The Insider’s Guide to Mobile, 2011

1st mass medium Print 1500s

2nd medium Recordings 1890s

3rd medium Cinema 1910s

4th medium Radio 1920s

5th medium TV 1950s

6th medium Internet 1995s

7th medium Mobile 2000s

8th medium is Augmented Reality (as first argued by Raimo van der Klein, co-

founder or Layar)


Wonderbra App: Strip the Girl

• In the battle vs Victoria's

Secret for the sexiest

lingerie brand, Wonderbra

launched smartphone AR

app called the Decoder

campaign, lets you strip

the fully-dressed model

from the live video, to see

which bra she is wearing Source: PSFK 5 Oct 2012


Whose That Chick - In That Car?

• Finland's car-registration information has been

available via phone for years, including owner and

past history.

• Now a free iPhone and Android app will use

cameraphone image recognition to recognize the

license plate, then querie the database. Cost per

querie between 3-7 Euros depending on info Source Kauppalehti 10 April 2013


• Luxuy watchmaker Tissot has introduced an AR

based wristwatch tester. The consumer straps a

paper-based strap onto the wrist

• Then consumer can see on screen what the

particular watch model would look like, select colors,

models, straps etc Source: Rapid Blue presentation at Mobile Web Africa conference in

Johannesburg 10-12 September 2014

Tissot AR Watch Tester


Dentists Use AR

• From Twitter on 27 April:

• Imagine you go to dentist, they make 3D image of

your teeth, you pay 300€ for service & you see it on

your phone. Happed to me in Finland

• Finnish dentists know how to make money fooling

you with AR images for which you need to pay a

fortune!

Source: Marti Masa Koegs on Twitter 27 Apr 2015


Do We Have Numbers?

How big is it..


• Layar is now deployed digitizing newspaper ads.

Their solution lets any page be digitzed in just 60

seconds

• Canadian publisher of local newspapers Glacier

Media says they sell AR upgrades to print

advertisements for 99 dollars each

• This AR premium advertising solution to

newspaper ad sales has already earned 7.5

million Canadian dollars in the first quarter of

2013 Source: Peter Kvarnstrom at WNC13 newspaper event, May 2013

AR and Print Media


AR 135M Apps In Use Currently

• Tractica reports that 272 million Augmented Reality AR apps were downloaded in 2014

• 135 million of those apps are in use today

• Tomi guess: if half have two AR apps and half have one app in use, 135M in use means 81 million active unique AR user base

Source: Mobile World Live 10 March 2015


Mobile Media And AR Media

0

500

1000

1500

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2500

3000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Global Mobile Media

Consumers, in Millions

AR has 1B users

by year 2020

Mobile

5 Years AR pass

80M audience

1997 1999 2001 2003 2005 2007 2009 2011

2009 2011 2013 2015 2017 2019 2021 2023 AR


Inventing The Future Is Easy...

...inventing how to make money in it is hard


Star Wars Economics

• Today all Hollywood movies expect to earn extra

revenues from 'merchandizing'

• The first significant movie to earn relevant revenues

from merchandizing was Star Wars

• Star Wars movies have earned

$4B at box office, rentals, DVDs etc

• How much was Merchandizing?


Star Wars Economics

• Today all Hollywood movies expect to earn extra

revenues from 'merchandizing'

• The first significant movie to earn relevant revenues

from merchandizing was Star Wars

• Star Wars movies have earned

$4B at box office, rentals, DVDs etc

• George Lucas's production

company earned bonus $14

Billion from merchandizing! Source: Orvar Safstrom at XML

Conference Malmo Sweden 21 Jan 2011


Premium SMS: $55B in 2014

Minna Rotko Anne Nikula Sara Melkko


Premium SMS: $55B in 2014 • Transparency Market Research reported A2P ‘Application-to-

Person’ SMS text messaging worth $55.2 Billion in 2014 and growing at 4.2% per year (aka ‘Premium SMS’ messaging)

• Tomi comment: Premium SMS launched in Finland 1998 by Saunalahden Serveri (Anne Nikula part of that team)

Source: Transparency Market Research 22 Oct 2014

Minna Rotko Anne Nikula Sara Melkko


If At First You Fail...

• Rovio (Relude) started 2003 in Finland. Created

Angry Birds in 2009.

• 2B downloads.

• Earned $216M USD in 2013

• Roughly 1/4 revenue from gamers,

1/4 from advertising, and half

from merchandizing

• Does not chase after copyright

infringements..

• Angry Birds was 52nd game by

Rovio (ie had failed 51x before it)


And Finally Some Magic

The true power of mobile


• Sephora has introduced an AR make-up mirror app

that lets users pre-test various makeup on their own

faces virtually, using the AR mirror Source: Site Pro News 26 Aug 2014

AR Make-Up Mirror


Thank you!

Twitter @tomiahonen communities-dominate.blogs.com

[email protected]

www.tomiahonen.com

Follow Tomi on Twitter and his blog..


Tomi T Ahonen, Author & Consultant Competitiveness, Business Case, Marketing, and Profitability

• Provides workshops, training and consulting in how to

make money with mobile adn converged services.

• The world's most prolific new mobile service evangelist,

has introduced over 1,000 new service concepts at

public conferences; is quoted in 120 books by his peers

• Quoted in over 400 press stories in a dozen languages;

keynotes at over 300 major conferences on 6 continents;

his daily blog is syndicated on CNBC, NY Times, etc

• Lectures at Oxford University on 3G and Convergence

• Available as a motivational speaker at your event!

• Read his bestsellers "Digital Korea", "Communities

Dominate Brands", “Mobile as 7th of the Mass Media” etc

website: www.tomiahonen.com

e-mail: [email protected] blog: communities-dominate.blogs.com

twitter: @tomiahonen

• Tomi's newest book "The Insider's Guide to Mobile"

Earlier Tomi Ahonen has set up &

run Nokia’s 3G Business

Consultancy. Previously he

worked for 3 operators where he

created the world’s first fixed-

mobile service bundle and set a

world record for taking market

share from the incumbent

"Service creation and marketing will be key to 3G," Ahonen said. Total Telecom 12 October 2000


Bonus Info


Smartphone Prices By Region

• IDC reported on the regional average sales prices of

smartphones in November 2013 as being:

• North America $531

• Europe $419

• Middle East and Africa $338

• Latin America $288

• Asia/Pacific $262

• World average $337

Source: IDC November 26, 2013


Mobile Subscribers, Unique Users, Phones

Source: Tomi Ahonen Amanac 2014 - see www.tomiahonen.com - 191 page eBook only 9.99 Euros


Price Pyramid of Mobile Phones

Source: Tomi Ahonen PhoneBook 2014 - see www.tomiahonen.com - 191 page eBook only 9.99 Euros


Tomi Ahonen Report

TomiAhonen Mobile Forecast 2014-2018 101 pages, eBook format only, Apr 2014 - Cost only 99 Euro

TomiAhonen Consulting's forecast of the 110 most

requested mobile industry numbers is in ebook format. Table

of contents:

Chapter 1 - Intro (4 pages)

Chapter 2 - Size of Industry (8 pages) 3 charts, 7 tables

Chapter 3 - Customers (7 pages) 1 chart, 10 tables

Chapter 4 - Handsets Overall (10 pages) 6 charts, 8 tables

Chapter 5 - Handset Market Shares (25 pages) 24 charts

Chapter 6 - Mobile Data (18 pages) 15 charts, 15 tables

Chapter 7 - Smartphone Apps (2 pages) 1 chart, 1 table

Chapter 8 - Customer Types (5 pages) 3 charts, 3 tables

Chapter 9 - Annual Statistical Summaries (5 pages) 4 tables

More info see www.tomiahonen.com

eBooks only via tomiahonen.com


Tomi Ahonen eBooks

Pearls Vol 2: Mobile Social Networking

Foreword by Mark Curtis, CEO of Flirtomatic,

171 pages, eBook format only, April 2009 - Cost only 9.99 Euro

Tomi's second volume of "Pearls", has 50 case studies of

real world services around topics of mobile social

networking and digital communities covering all biggest

stories including Mixi, Mobage, Flirtomatic, Itsmy, Qik,

Twitter, Cyworld, Habbo, Mogi, Tohato, MTV, i-Report etc.

Pearls Vol 1: Mobile Advertising Foreword by Russell Buckley, SVP Admob, Chairman Mobile

Marketing Association

171 pages, eBook format only, January 2009 - Cost only 9.99 Euro

Launching an eBook series of Tomi's "Pearls", this first

volume has 50 case studies of real world services around

topics of mobile advertising and marketing from 19 countries

including location-based, coupons, viral, advergaming etc



Tomi Ahonen eBooks

Pearls Vol 3: Mobile Money 171 pages, eBook format only, June 2011 - Cost only 9.99 Euro

Tomi's third volume of "Pearls", has 50 case studies of real

world services around topics of mobile social money, mobile

payments, mobile banking and mobile wallets. Includes all

biggest stories such as Coca Cola, M-Pesa, NTT DoCoMo

Osaifu Keitai etc.



Tomi Ahonen eBooks

Tomi Ahonen Almanac 2015 190 pages, eBook format only, May 2015 - Cost only 9.99 Euro

Comprehensive industry review and almanac with 93 tables,

charts and diagrams, covering all major aspects of the

mobile telecoms industry from handsets to services, from

customers to networks, from SMS text messaging to content

from mobile internet to mobile advertising.


"Whenever I need a stat, Tomi seems to have it, so I'd highly recommend this." - Russell Buckley, MD Admob Europe, Chairman Mobile Marketing Association

"Speaking of statistics, Tomi Ahonen has put together the Tomi Ahonen Almanac as an eBook for mobile nuts. In it, you can quickly find mobile penetration of say, Thailand, or that 51% of the Earth's population has at least one cellphone, and one in 8 mobile walks around with 2 phones in their pockets!" - Ricky "The Guru" Cadden at Symbian Guru

"Tomi Ahonen is the king of mobile statistics and knows more about the mobile space than any one I know" - Paul Poutanen founder and President of Mob4hire

"If you're interested in mobile statistics, you really need to pick up a copy of Tomi Ahonen's Almanac. The Almanac is full of hard to find information." - WAP Review


Tomi Ahonen eBooks

Tomi Ahonen Phone Book 2014 173 pages, eBook format only, December 2014 - Cost only 9.99

Euro

Complete update of the volume, data current to December

2014.

Comprehensive review and almanac of handset side of

mobile industry with 100 tables, charts and diagrams, with

all market shares, average sales prices, features, operating

systems etc for smartphones, dumbphones and major

brands in handsets.

It is the companion piece to highly popular TomiAhonen

Almanac.



Tomi Ahonen six hardcover books

Mobile as 7th of the Mass Media, 2008

explains the media opportunities in mobile from music

and gaming to TV and social networking and even

internet and adertising. 322 pages.

Digital Korea, 2007 with Jim O'Reilly

is case study in digital convergence from the most

advanced information society of South Korea.

covers internet, TV, mobile, ecash, egoverment,

robotics, telematics, virtual reality etc 282 pages.

Communities Dominate Brands, 2005 with Alan Moore

first business book on social networking 280 pages.

3G Marketing, 2004, with Timo Kasper & Sara

Melkko is marketing handbook for mobile operators

M-Profits 2002

Still only complete business book for mobile, 360 p

Services for UMTS, 2002, with Joe Barrett was first

services and applications book for 3G, 373 pages

all six hardcover books are available at Amazon


Tomi Ahonen Books:

2013 TomiAhonen Almanac 2015 (ebook: tomiahonen.com)

2012 TomiAhonen Phone Book 2014 (ebook: tomiahonen.com)

2012 Mobile Forecast 2014-2018 (ebook: tomiahonen.com)

2011 Pearls Vol 3: Mobile Money (ebook: tomiahonen.com)

2010 The Insider's Guide to Mobile (free ebook: lulu.com)

2009 Pearls Vol 2: Mobile Social Networking (ebook: tomiahonen.com)

2009 Pearls Vol 1: Mobile Advertising (ebook: tomiahonen.com)

2008 Mobile as 7th of the Mass Media (hardcover: futuretext)

2006 Digital Korea (hardcover: futuretext)

2005 Communities Dominate Brands (hardcover: futuretext)

2004 3G Marketing (hardcover: John Wiley)

2002 M-Profits (hardcover: John Wiley)

2002 Services for UMTS (hardcover: John Wiley)

see all Tomi T Ahonen's books with links at www.tomiahonen.com


Selected TomiAhonen Workshops • Changing Customer Needs in Mobile Most requested workshop

currently, includes “steps” to addiction, “split” personalities, time to change..

• Mobile as 7th Mass Media Tomi's latest workshop discussing media

convergence and unique aspects of mobile. Also adopted for Oxford Univ.

• Social Networking / Mobile Digital Communities based on his book

Communities Dominate Brands, may be run with SMLXL. Adopted for Oxford U.

• New Mobile Service Creation From ideas to money-making, for mobile and

fixed, for operators, vendors, content partners etc, includes 6 M’s and Early 8

• Business of Mobile Telecoms (2G, 2.5G, 3G) Adopted for Oxford U

• 3G TV covering video and TV convergence with mobile. Adopted for Oxford U

• Mobile Marketing and Advertising featuring "Engagement Marketing"

• Segmentation and Customer Understanding may be run with Xtract

• Launch Marketing for 2.5G and 3G also adopted for Oxford University

• MVNO, Revenue Sharing & Partnerships can include building a model

• Forecasting and Business Modelling in Telecoms Popular workshop

• Competitiveness in Telecoms Workshop form or competition simulation:

• Workshops are very cost-effective ! Write [email protected] for more.


Tomi's Mobilista Primus Inter Pares TW List • If you are in mobile and on Twitter, the 'must follow' Twitterati in addition to

@TomiAhonen are Tomi's Primus Inter Pares list:

• @AjitJaokar - author of tons of mobile books, advisor to governments

• @CarolineWIP - Caroline Lewko author, expert on the developers

• @ChetanSharma - Chetan Sharma author, best view to US stats & industry

• @DW2 - David Wood ex CEO of Symbian

• @EOrtiz - C Enrique Ortiz author on mobile tech

• @Ew4n - Ewan MacLeod, editor of Mobile Industry Review

• @FjordMark - Mark Curtis author ex CEO of Flirtomatic, now at Fjord

• @JMacDonald - JMac Jonathan MacDonald the author and superguru

• @KimDushinski - Kim Dushinski author on mobile marketing

• @MTrends - Rudy De Waele what can I say, a mobile social butterfly

• @PGolding - Paul Golding author on mobile apps, web, tech

• @RussellBuckley - Russell Buckley author ex MMA Chair ex Google ex Admob

• @TechnoKitten - Helen Keegan runs Swedish Beers

• @Textually - Emily Turrettini editor of Textually and Ringtonia

• @TonyFish - Tony Fish mobile author but also guru on digital identity & privacy

• @Torgo - Daniel Appelquist author & mobile strategist now with Bluevia

• @Wireless_Watch - Lars Cosh-Ishii editor Wireless Watch Japan, MoMo Tokyo


The Guru's Bookshelf in Mobile: • Mobile as 7th of the Mass Media, Tomi T Ahonen, 2008

• Communities Dominate Brands Ahonen & Moore, 2005

• My Digital Footprint, Tony Fish, 2010

• Global Mobile, Bruck & Rao, 2013

• Mobile Marketing Handbook (2nd ed), Kim Dushinski, 2012

• Fast Shopper, Slow Store, Gary Schwartz, 2013

• Mobile Advertising, Sharma, Herzog & Melfi, 2008

• Digital Korea, Ahonen & O'Reilly, 2007

• Social Gaming, Schmid, Talos & Aguilina, 2013

• Mobile Internet for Dummies, O'Farrell, Levine, et al 2008

• Digital Money Reader, Dave Birch (ed), 2011

• 3G Marketing, Ahonen, Kasper & Melkko, 2004

• ...And of course The Dilbert Future by Scott Adams..

Technology

Armc Dublin 2015 Tomi Ahonen