Mobile Marketing in Latin American Markets

iLoop Mobile Roundtable Webinar

January 26, 2012

• Industry leading services and solutions for mobile marketing and business initiatives worldwide

•Award winning iLoop Mobile Platform for SMS/MMS campaigns, mobile sites, mobile coupons, CRM & LBS segmented messaging, apps and much more

•Leading expertise in marketing strategy, managed service campaign delivery and professional services

•Campaign design that achieves mission critical marketing objectives, answering the individual needs of customers

•Customers include Fortune 500 brands, agencies, media companies, and other tier-one companies

About iLoop MobileMichael Ahearn: Co-founder, VP Customer Development & Marketing

Efrain Saavedra: Sales/Marketing Director Latin America & US Hispanic Markets

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About WAU

Reinaldo Acosta: VP Marketing & Product Development

WAU administers the LATAM’s largest mobile transaction network With direct connection to 45 carriers.

Two Lines of Business:

Mobile Integration

WAU is the single point of contact for companies looking to reach and monetize half a billion mobile subscribers in Latin America via:

• Content (images, ringtones, games)• Text subscriptions• Mega Contest• Interactive services such as micro payments that allow

consumers to buy virtual goods (avatars, digital gifts, game items, power-ups)

Super Aggregation

Mobile compliance solutions supporting mobile carriers to monitor and control their SMS business according to best consumer practices

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About Merlin Telecom

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Alejandro Eliaschev: Co-Founder & COO

Merlin designs, develops, and implements solutions based on intuitive user interfaces with the use of convergence technology:

Voice/SMS/MMS/WAP/web (i-TV, alerts, content delivery, LBS, mobile campaigns, AR games)

Customer experience measurement & voice of the customer analysis

Telemarketing and call center automation

Industries: Telecom, Banking, Media, & Health

Markets: Argentina, Chile, Colombia, Mexico, Spain, Uruguay, US & Venezuela

LATAM Facts & Stats

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•One of the world’s fastest advertising markets, with ad spend rising almost 10% in 2011, nearly double the world average, and will rise ANOTHER 10% in 2012

• Internet penetration (any computer/device) is 30% in 2011, to grow to nearly 50% by 2015. This is about half the penetration as North America and two thirds that of Europe. However, it is double that of Asia-Pacific and Middle East/Africa.

•But MOBILE is a force in LATAM: Mobile phone penetration is 60% of population (375.5M), with growth to 70% (450M) by 2014. Brazil alone has 110M mobile users and 200M subscriptions…compare this to 234M users with 322M subscriptions in the US.

•Many countries in LATAM show high incidence multiple subscriptions to users•Brazil & Argentina 2x SIM cards as phones

•Feature phones are the target device: smart phone penetration across LATAM estimated at only 10-15%, may be higher up to 25% due to uncounted “black market” smart phones

•Mexico: 70% phone penetration, 10% mobile web use•Brazil: 54%, 11% mobile web use

•Mobile Internet use is not widespread ex. Argentina 2.9% with 6% smart phone penetration

LATAM Facts & Stats: Select Countries

Arg32M77%

Bra110M54%

Mobile Web Use

2011 2015

Brazil 11% 25%

Columbia 11%

Argentina 3%

Chile 2%

Chile14M83%

TGI Latina 2010; eMarketer 2011

Col39M88%

Mex59M52%

Peru22M76%

Ven39M85%

% Use Mobile People (M)

Brazil 54% 110

Argentina 77% 32

Mexico 52% 59

Venezuela 85% 39

Columbia 88% 39

Peru 76% 22

Chile 83% 14

AVG USE 73%

TOTAL PEOPLE

315

Mobile Users 2011

USA: 234M 76%

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LATAM Facts & Stats

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•Messaging is the low hanging fruit for LATAM

•Mobile Internet not widespread with low penetration of smart phones because:o High cost of datao Consumer disposable incomeo Infrastructure (lack of 3G networks)o City vs. rural consumer

•Individual countries can vary significantly 10-25% in penetration and use statsoPhone ownership in Argentina=77%, Brazil=54%, Mexico=52%

• LATAM presents “green fields” for mobile marketing as it evolves from premium “users pays” services to “free” interaction with brands and publishers presenting real day-to-day value to the consumer

• Cost savings—as mobile marketing evolves today it can leverage lessons from North American, EU and APAC market and avoid “worst practices” of mobile marketing

• Pre-pay is strong in LATAM, don’t assume “all you can eat”

Observations on Mobile Marketing in LATAM

Delivery Platform

SMS remains the undisputed champion of mobile space— simple, cost-effective and reliable—but think beyond simple text:

• P2P message: “want to go to the movies tonight?”• B2C message: “your package has been delivered (FedEx)”• Mobile marketing: sweepstakes, vote, buy a service,

transfer funds, receive credit card notifications

Understand the Rules

Each carrier has its own set of regulations, here’s some resources• MEF: http://www.mefmobile.org/aboutmef/who_we_are/mef_latam• MMA LATAM: http://mmaglobal.com/region/latam

Buy a Short Code Now @ http://latinshortcodes.com

Region Dominated by 3 Carriers—Partner with a Mobile Integrator• Telefonica• America Movil• Tigo

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• Prepaid accounts for a large portion of mobile users in LATAM (80%+). Prepaid users interactions with marketing promotions usually lower than postpaid users. Prepaid minutes (as prize) has been a great incentive.

• Mobile web is increasing, quite noticeable in Brazil, helped with increased of prepaid data, which is cheaper and more private than going to cyber cafes.

• Smartphone adoption growing fast as devices are no longer priced—or perceived priced—at a premium.

• Most brands still lack mobile sites/strategy due to limited knowledge of mobile marketing.

• When creating regional campaigns, be careful to use language understandable in all markets and consider existing cultural differences.

Observations on Mobile Marketing in LATAM

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• A dynamic, always evolving consumer market ready to be challenge by the use of Mobile initiatives on the go

• Target your market segment, in this era of Social Media, you consumer could be reach by selecting a particular interest group in Facebook, or Twitter

• Engaging your consumer result in knowing how to reach them using their mobile, by LBS, MMS, Mobile Coupons, or both

• A “Global Approach” vs “Localize Approach” now you can extend your reach just by developing a mobile social campaign that could go Viral…

• A new consumer that would want their information or the ability to buy immediately without having to wait…This evolve into Mobile E-commerce Apps

Observations on Mobile Marketing in LATAM

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Creative Mobile Campaigns in LATAM

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A fun campaign from Axe in Uruguay (more commonly known as Lynx) that used mobile marketing in a new way to engage its consumers, while keeping it completely inline with its male target audience and the company’s cheeky approach to advertising. It ran a print ad that had certain parts missing from the image, in a teaser for their fans. It ran with the instruction to text ‘Axe’ to a particular number after 9pm. Users were then sent back the missing parts of the ad via MMS, accessible after the watershed:

A brilliant, fun campaign from Lynx that talks to its target audience perfectly. It also shows a slightly different way of using mobile technology, requiring users to engage with you just to see more of an ad, which is pretty impressive for any brand.

http://thenextweb.com/mobile/2011/06/14/5-brilliant-mobile-marketing-campaigns/

Roundtable Discussion

Roundtable Moderator:

Michael Ahearn

Co-founder, VP Customer Development & Marketing, iLoop Mobile

Roundtable Panelists:

Reinaldo Acosta: VP Marketing & Product Development, WAU

Alejandro Eliaschev: Co-Founder & COO, Merlin Telecom

Efrain Saavedra

Sales/Marketing Director Latin America & US Hispanic Markets, iLoop Mobile

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Thanks, we’d be glad to answer any questions and help you mobile enable your marketing and business initiatives.

Contact: chris.rovtar@iloopmobile.com