phones or shoes? double the 2-5 year olds can play with a smartphone app (19%)… …than can tie...

Phones or shoes?

Double the 2-5 year olds can play with a smartphone app (19%)…

…than can tie their shoes (9%)

Double the 2-5 year olds can play with a smartphone app (19%)…

…than can tie their shoes (9%)

2010 AVG study2010 AVG study

Mobiles and Tablets: A new interaction and revenue stream … lessons from the news publishing industry

Mark Challinor, Director of Mobile and Interactive Services, Telegraph Media Group

We envision literally, a billion people getting inexpensive, browser-based touch-screen devices over the next few years”

Eric Schmidt, CEO, Google, 2011

1

Average Daily Readership (000's)

1,751

1613

1130

556

391

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

(000

's)UK quality newspaper market

Source: NRS Oct 09 – Sep 10

North America

Newspapers: 1,577

Latin America

Newspapers: 1,400

Europe Newspapers:

2,398

Africa Newspapers: 400

Middle East Newspapers: 272 Asia

Newspapers: 5,071

South Pacific Newspapers: 89

2

INMA: Our members

• 400 top newsmedia companies worldwide

• 5,000 executives

• 80 countries

• Strong in elite, market-leading companies

• Key channels of members: audience, advertising, strategy, marketinginma.orginma.org

INMA: Our focus in 2011

1. Culture change, processes to support transition

2. Paid content opportunities in “passion niches”

3. Integrating advertising sales

4. Reallocation of marketing

5. Revenue opportunities with mobiles/tablets

Theme: practicalities of transition from “news on paper” to multi-media

Background (The market)

• Five years ago, the mobile landscape was, a world apart from where we are today. While smartphones existed, the devices were really more like PDAs with a phone built-in, rather than mobile computing devices as we know them today.

• There were mobile phone apps, but the app store concept as we know it now was still years away. And while many mobile phones had the ability to access the web, the experience was far different in speed and in scope than it is today.

Background (The market)

• Now? We’ve transitioned from keypad to touchscreen, from 2G to 3G broadband, from “social” as an afterthought, to social as an intrinsic part of the mobile web…and to a world full of apps.

• Whilst it’s almost impossible to predict the next five years, we can imagine that mobile devices will continue to get faster, more complex and slowly but surely replace workstations and notebooks in a range or portable/wireless devices.

Mobile advertising is growing exponentially

Total UK mobile advertising revenues:

Source: First partner 2010

2009 2010 2011

Mobile

advert

isin

g r

evenues

(m)

£38m

£50m

£86m

+31%

+72%

£83m

???

UK mobile internet market maturing rapidly

August 2010 data. SIMs = comScore; users = Nielsen; others = IAB.

23% UK pop’n with smartphone (11m/up 70% in last yr)

31% Regular users of mobile internet

41% Retailers with mobile site/app in the next year

37%Consumers have made purchase via handset with payment going directly to their mobile bill

27%Consumers have made purchase via their handset using a credit or debit card

Background (The market……and The Telegraph)

• Some of our audiences have never engaged with us in the mobile arena. We need to have a range of services and products to bring those audiences to the game: some basic, some more rich, but ultimately, a “mix strategy”…

• …incorporating interaction tools, database builders, content distributors… and revenue generators.

Today’s environment: multi channel

Desire for new interaction/revenue streams

Print Online

Mobile

Advertiser demands

Customer expectations

Increase the number of brand touchpoints…

profitably

Telegraph mobile strategy

Build customer interaction

Data collection opportunity

Generate new revenue

Facilitate content collection & distribution

Added value to advertisers

Provide bridge to younger audiences

Brand association new technology

Objectives/Advantages to

mobile marketing strategy

Strategy

• Review existing mature platforms and services.

• Increase amount of user generated content. Create a dialogue!

• Get readers familiar with using mobile with TMG

• Introduce advertisers to a range of relevant, mobile/phone services (including and beyond apps).

• Have the internal structure to deliver the above.

• Identify best services and service providers to deliver the maximum profitability

• Under take market research/ focus groups to determine future focus.

Mobile at The Telegraph 2010 into 2011

Free mobile internet site (Telegraph.co.uk)

Free iPhone apps (e.g. News, World Cup, Crosswords Lite)

Paid apps (e.g. Fantasy Football, Crosswords Full)

Sponsored apps (e.g. F1, TaylorMade Golf, Jaguar)

2m unique users a month

300,000+ News app downloads

280,000+ World Cup app downloads

Fantasy Football app #2 in the paid download chart (250,000+ teams)

Commercially-lucrative potential

Tablets: iPad v1 Free. 126,000 downloads. Sponsored

Compare the no. of days it took to reach 1m units sold!

iPad 2 sold ½m in first weekend!

Interactive (mobile) advertising

Location services across platforms/devices

Sponsorship formats

-Home page takeovers

-Integrated adverts

-Icons

-text links

-in-movies

-news or ent sections

Overlays: Rich media

M-commerce

Mobile video

Next generation mobile web

Platform Agnostic: Fully integrated into internal CRM system

Importance of SMS still!

• The first commercial text message was sent in December 1992.

• Today, the number of text messages sent and received everyday, exceeds the population of the planet!

Mobile advertising

• Mobile ads:

• Many choices: SMS, rich media/video…

• Education is key: getting on the media plan, education of agencies/clients

• All about engagement: mobile v online = mobile advantage due to engagement people have with mobile

• (Frequency, depth, duration, download rate, users…)

• Need for creativity: consumer expectation is more on mobile

We know all this due to analytics

PHONEPHONE TABLETTABLETCOMPUTERCOMPUTER

Key takeaways/lessons?

• Think about your future audiences and where they will be!

• Talk to mobile experts who can guide you. Remember it’s a new space for everyone. Don’t be afraid!

• Have a mobile strategy

• Keep abreast of new developments: new ideas/trends

• Dominate your market with relevant apps/mobile services

• Focus on mobile optimisation of all the content in your ecosystem.

• Be relevant!

• Do something!

An exciting time… to be in an exciting space…

within an exciting environment

Thanks for listening!

mark.challinor@telegraph.co.uk