wired - connecting to the mobile marketing revolution

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7/9/2009 Wired: Connecting to the Mobile Marketing Revolution comScore Mobile Evan Neufeld, VP + Senior Analyst, Mobile

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Mobile advertising is still in its infancy but it is expected to grow to $5.7 billion in the next five years. How has the explosion in mobile applications impacted mobile marketing practices? What impact will this most recent wave of smart phones have on mobile video and other more immersive adverting environments? What types of advertising works best on "dumb" phones? Which marketers are actually advertising in mobile and which sellers are attracting the most revenue?

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Page 1: Wired - Connecting to the Mobile Marketing Revolution

7/9/2009

Wired:

Connecting to the Mobile Marketing Revolution

comScore Mobile

Evan Neufeld, VP + Senior Analyst, Mobile

Page 2: Wired - Connecting to the Mobile Marketing Revolution

2© comScore, Inc. Proprietary and Confidential.

Agenda

– About comScore

– The Evolution of Mobile

– Mobile Content Usage & Adoption

Mobile Advertising

Case Studies

Page 3: Wired - Connecting to the Mobile Marketing Revolution

3© comScore, Inc. Proprietary and Confidential.

DEMOGRAPHICS• Self-reported and validated

• Appended Segments (e.g. Claritas, Acxiom)

• Individual & Household Level

WEB VISITING & VIEWING• All Web Site/Page Click Stream

• Content Viewed

• Search Engine Queries

• Keyword Used

SURVEYS• E-mail or Contextual “Pops”

• Behavior-activated Surveys

• Observation of All Surveys Taken Across All Suppliers

ONLINE TRANSACTIONS• All Secure Session Activity

• Purchases and Subscriptions

• Price Paid, Shipping & Handling, Promotions

• Applications/Configurations

MARKETING STIMULI• Online Ads

• Referral Links

TV VIEWING• Link to Digital Set Top TV Data

using name and address

comScore Customer Knowledge Platform: A 360°View of 2 Million Global Internet Users

Designed to be representative of the online population

Projectable to the total US population

TRUSTe certified for information privacy & security

OFFLINE PURCHASING• Linked using Name and Address

• Client CRM Databases

• Retailer Loyalty Card Data

• IRI Scanner Panel Data

Page 4: Wired - Connecting to the Mobile Marketing Revolution

4© comScore, Inc. Proprietary and Confidential.

comScore/m:metrics Provides a Comprehensive Set of Tools to

Measure Mobile Marketing ROI

MobiLens

– Connects data on mobile consumer behavior, content merchandising

and device capabilities for an unparalleled view of the U.S. and

European mobile media landscape

Mobile Metrix

– Direct behavioral measurement of the most active

mobile media consumers

Ad Metrix Mobile

– The who, what, where and when of advertising on the mobile web

Brand Metrix Mobile

– Measures the attitudinal impact of your Mobile Advertising

comScore Mobile solutions offer unprecedented visibility into the mobile ecosystem

Page 5: Wired - Connecting to the Mobile Marketing Revolution

5© comScore, Inc. Proprietary and Confidential.

M:Metrics Clients Define the Mobile Ecosystem

2008 Q1

Page 6: Wired - Connecting to the Mobile Marketing Revolution

6© comScore, Inc. Proprietary and Confidential.

Evolution…

Page 7: Wired - Connecting to the Mobile Marketing Revolution

7© comScore, Inc. Proprietary and Confidential.

What does a “phone” do?

Capabilities:

1) Initiate phone calls

2) Receive phone calls

3) In one place

Capabilities:

1) Initiate phone calls

2) Receive phone calls

3) On the move

4) Text

5) Game

6) Maps

7) News

8) Watch TV/Video

9) Alarm clock

10) Etc.

~1900 1983 2009

Capabilities:

1) Initiate phone calls

2) Receive phone calls

3) On the move

Page 8: Wired - Connecting to the Mobile Marketing Revolution

8© comScore, Inc. Proprietary and Confidential.

Market Growing, But Slowing Down

Overall growth of mobile subscribers slowing (+3% YoY)

– Carrier growth dependent on winning customers from competitors

– Data services driving revenue growth

– Handsets and content experiences becoming key

226,000,000

233,000,000

200,000,000

210,000,000

220,000,000

230,000,000

240,000,000

US

May-08 May-09

+3 %

Page 9: Wired - Connecting to the Mobile Marketing Revolution

9© comScore, Inc. Proprietary and Confidential.

Voice No Longer the Killer App:

Mobile Browsers, Application Users and Downloaders

(Mobile Media Users) Growing 24% Year on Year

35% of mobile users are now using a media service that connects to the network (other than SMS, MMS

or voice)

An additional 29% of the market also use text messaging (SMS), with the remainder just using voice

services

The number of ‘Just Voice’ users has fallen 18% year on year, from 45% to 35%

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

30.0

35.6

27.0

28.0

29.0

30.0

31.0

32.0

33.0

34.0

35.0

36.0

37.0

% M

ark

et

% Mobile Media Users

Mobile Media, 35.6%

SMS (and not mobile

media), 29.5%

Just Voice, 35.0%

Market Segments

Page 10: Wired - Connecting to the Mobile Marketing Revolution

10© comScore, Inc. Proprietary and Confidential.

Crackonmics Of Usage In Full Effect

Light, infrequent usage quickly turns into frequent, more immersive usage

Every Day Usage 2x YoY Growth In New & Information Category

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

41%

28%

31%

Accessed News & Information

Every Day

At least once each week

Once to three times throughout the month

Page 11: Wired - Connecting to the Mobile Marketing Revolution

11© comScore, Inc. Proprietary and Confidential.

One of the Major Reasons for Mobile Media Growth is the

Improvement in Device Technology

Over 48% of users who have a mobile device that is 6 months old or less now use mobile media

(browsing, downloading or application usage)

As devices improve a greater % of people use media services when they get a new handset

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

41.5

49.0

36.0

38.0

40.0

42.0

44.0

46.0

48.0

50.0

200805 200806 200807 200808 200809 200810 200811 200812 200901 200902 200903 200904 200905

% M

ark

et

% of users with 6 months old device or less who are mobile media users

Page 12: Wired - Connecting to the Mobile Marketing Revolution

12© comScore, Inc. Proprietary and Confidential.

The PC Internet Took Off When People Moved From Dial-Up to

Broadband. Mobile Will Be The Same

When the network speed gets faster (3G) and cost come under control (data plans) people are more

likely to use more mobile media services

Unlimited data plan subscribers grew by 43.1% year on year in US

79% of unlimited data plan subscribers and 48% of 3G device owners are mobile media users

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

27.7

36.4

12.0

16.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

200805 200806 200807 200808 200809 200810 200811 200812 200901 200902 200903 200904 200905

% M

ark

et

Growth of Market Enablers

3G Unlimited Data Plan

Page 13: Wired - Connecting to the Mobile Marketing Revolution

13© comScore, Inc. Proprietary and Confidential.

To Keep Things In Perspective of 233mm Mobile Subscribers,

About 29mm are Smart Phone Users

Rapid, exponential growth over last year

Distinct Demographic Skews (Males, 18-44)

Disproportionately contributes to key non-voice services

– 3x as likely to mobile browse mobile web

– 3x as likely to use a mobile app

– 2x as likely to send photos or videos

Product: MobiLens

Data: Three month average ending March 09

Country: US - N= 35,520

Microsoft24%

Symbian3%

Palm8%

RIM42%

Apple20%

Google3%

Smart Phone Penetration (by OS)

Non-Smart88%

Smart12%

Smart vs. Non-Smart Phones

Page 14: Wired - Connecting to the Mobile Marketing Revolution

14© comScore, Inc. Proprietary and Confidential.

Mobile Prime Time Is … All of the Time

Early Morning (M-F 6am-8am)

Daytime (M-F, 8am-5pm)

Evening (M-F, 5pm-11pm)

Late Night (M-F, 11pm-6am)

Weekends (Sat-Sun, all day)

Series1 2,232,170 5,523,428 4,967,532 2,939,906 4,921,808

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Su

bs

Segments By Day Part

Product: Mobil Metrix

Data: Three month average ending March 09

Country: US

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Series1 4,150,723 4,219,376 4,464,265 4,291,464 4,162,219 4,167,212 3,870,306

3,400,000

3,600,000

3,800,000

4,000,000

4,200,000

4,400,000

4,600,000

Su

bs

Segments By Day of Week

Ubiquitous usage of smart phones across time and days

Variations based on content type & access method

Page 15: Wired - Connecting to the Mobile Marketing Revolution

15© comScore, Inc. Proprietary and Confidential.

There are 1031 Separate Devices Being Used to Access Mobile

Media in US,

Top mobile media

devices

dominated by

touchscreens and

smartphones.

Top 6 devices

represent 11.4%

of mobile media

users, top 20

devices – 23.9%.

Although the

iPhone gains a

large amount of

publicity it

currently only

represents 7% of

mobile media

users.

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

Page 16: Wired - Connecting to the Mobile Marketing Revolution

16© comScore, Inc. Proprietary and Confidential.

Mobile Content Usage & Adoption

Page 17: Wired - Connecting to the Mobile Marketing Revolution

17© comScore, Inc. Proprietary and Confidential.

Device Technology, Data Speeds (3G) & Data Plans Enable the

Mobile Internet to Take Off but Content & Services Drive up-take

There are many services available on Mobile Devices, ranking their popularity gives context

Top 5 activities all relate to SMS, camera and messaging services

Mobile games top mobile content genre

Strong growth in news and info services, music and all connected services, e.g., e-mail and IM

Applications show second highest annual growth rate at 111.3%.

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

Ranking Activity # Users % Users % Year on Year Change

Total Market 233,000,000

1 Sent text message to another phone 138,594,169 59.5% 21.0%

2 Took photos 105,089,843 45.1% 15.8%

3 Used network services for photos/videos 73,914,853 31.7% 30.9%

4 Sent photo directly to another phone 67,861,046 29.1% 29.8%

5 Received an SMS Ad 58,918,660 25.3% 33.1%

6 Changed to native ringtone 57,023,057 24.5% 7.8%

7 Played games 55,369,263 23.8% 13.4%

8 Set graphics with camera 55,180,472 23.7% 14.1%

9 Changed to native graphics 51,986,263 22.3% 18.3%

10 News or Info via Browser 47,719,265 20.5% 42.3%

11 Transferred photo to PC 46,348,715 19.9% 29.0%

12 Used email 42,294,361 18.2% 41.5%

13 Captured video 40,914,935 17.6% 32.3%

14 News or Info via SMS 32,918,510 14.1% 84.5%

15 IM 31,584,004 13.6% 63.0%

16 Made own ringtone 30,266,148 13.0% 27.5%

17 Listened to music on mobile phone 28,253,239 12.1% 51.4%

18 News or info via app 24,515,366 10.5% 111%

19 Uploaded video to computer 22,148,994 9.5% 51.3%

20 Listened to Music Transferred from PC 21,236,408 9.1% 48.4%

Page 18: Wired - Connecting to the Mobile Marketing Revolution

18© comScore, Inc. Proprietary and Confidential.

Information Snacking Genres Dominate Mobile Browsing with

Search the Entry Point

Local information also prominent, e.g. maps, movie listings, business directories, traffic , etc

Financial services starting to gain transaction

Top web brands translating to mobile web

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 39,241

50%47%

39%32%32%

26%25%

24%23%

20%19%

19%17%17%

16%16%

15%14%

13%13%

0% 10% 20% 30% 40% 50% 60%

Web search

News

Sports information

Financial news

Tech news

Business directories

Bank accounts

Classifieds

Gaming information

Dating service

% of news and info browsers

Top Mobile Browsing Genres (excluding social networking)

Page 19: Wired - Connecting to the Mobile Marketing Revolution

19© comScore, Inc. Proprietary and Confidential.

12% of Mobile Owners Now Listen to Music on their Device.

Up 60.4% Year on Year

Majority of growth coming from listening to music sideloaded from PC, however streaming and

purchasing OTA starting to cause some up lift.

25% of mobile music listeners now DON’T sideload from PC, this has grown 80% year on year.

The number of people downloading music over the air (OTA) has grow 47% in 6 months. In the six

months previous it grew just 0.6%.

The iPhone is having a significant effect. 16% have downloaded OTA, this represents a 23% market

share. 8.8% have also listened to streamed music, a 25% market share.

Product: MobiLens

Data: Three month average ending March 09

Country: US - N= 39,241

8.3%

12.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

200805 200806 200807 200808 200809 200810 200811 200812 200901 200902 200903 200904 200905

% M

ark

et

Mobile Music Trends

Listen to Music Sideloaded Music From PC Downloaded a song OTA

Page 20: Wired - Connecting to the Mobile Marketing Revolution

20© comScore, Inc. Proprietary and Confidential.

Programmed Video Users (broadcast or on-demand) Growing

19.3% in 6 Months

This does however only represent 2.6% of the market, with on-demand the access method of choice at

1.9% compared to 1.0% using broadcast linear TV services

High levels of growth are coming from consumers watching video which has been transferred, either

direct from a PC (65% in 6 months) or from another phone (72.2% in 6 months)

Once again the iPhone is having its effect. 20% of Apple owners watch programmed video, giving it a

21% market share

Mobile video users are primarily 18-34 year old males…prime candidates for advertising

Product: MobiLens

Data: Three month average ending March 09

Country: US - N= 39,241

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

200808 200,809 200810 200811 200812 200901 200902 200903 200904 200905

% M

ark

et

Mobile Video Trends

Broadcast TV On-Demand Video Transferred Directly from PC Transferred from another phone

Page 21: Wired - Connecting to the Mobile Marketing Revolution

21© comScore, Inc. Proprietary and Confidential.

The Mobile / PC Connection:

24% of Mobile Users Connect their Device to their PC *

* Connecting device to the PC defined as those who transfer photos / videos to their PC or sideload music

or video’s to their mobile phone from their PC.

With the hype surrounding apps stores (iTunes apps store, Andriod Market, BlackBerry Apps World, Ovi

Store, etc) this figure has significant interest. Downloading apps directly from PC to devices removes the

need for data charges when downloading and provides a significant threat to operators app store

ambitions.

77% of iPhone, 60% of HTC G1 (Android) and 60% of Blackberry Storm users connect to their device to

their PC.

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

19.2%

24.7%

15.0%

17.0%

19.0%

21.0%

23.0%

25.0%

27.0%

200805 200806 200807 200808 200809 200810 200811 200812 200901 200902 200903 200904 200905

Connected Phone to PC

Page 22: Wired - Connecting to the Mobile Marketing Revolution

22© comScore, Inc. Proprietary and Confidential.

The Mobile / PC Connection: Online & On Device Browsing

Facebook usage is surprisingly similar on mobile and PC

mobile users

spend 24 minutes

on facebook,

average 3.3 visits

per day.

PC users spend 27.5 minutes per

day; average 2.3 visits.

Page 23: Wired - Connecting to the Mobile Marketing Revolution

23© comScore, Inc. Proprietary and Confidential.

DIRECTORIES

WEB SITE USAGE% mobile users accessing

content via PC

% PC users accessing

content via mobile device

Site visitation lift (increase in Internet site visitor

base due to mobile visitation)

64% 2% 1%

28% 1% 4%

43% 4% 6%

Business Directories Category

64% 5% 3%

Yellowpages.com Expands Reach by 6% with its Mobile Website

Cross-Platform

Website Reach

Product: Cross Media Panel

Data: Feb 09

Country: US

Page 24: Wired - Connecting to the Mobile Marketing Revolution

24© comScore, Inc. Proprietary and Confidential.

Top Apps for News and Info Show Maps and Local Information

Prominent

61% of iPhone users have used an app in a month for news and info and momentum is growing, 6

months ago 47.8% of iPhone owners used an app.

In comparison 46.0% of HTC G1 (Android) and 46.3% of Blackberry Storm owners use an app for news

and info.

Product: MobiLens

Data: Three month average ending May 09

Country: US - N= 35,520

39.7%

37.2%

24.3%

18.1%

17.6%

16.2%

15.9%

15.8%

15.3%

13.7%

13.5%

12.8%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Maps

Weather

Search Engines

News

Traffic

Entertainment News

Sports Info

Restaurant Info

Movie Info

Finance News

Finance Account Access

Business Directories

% of news and info apps users

Top Mobile Apps Genres (excluding social networking + games)

Page 25: Wired - Connecting to the Mobile Marketing Revolution

25© comScore, Inc. Proprietary and Confidential.

New iTunes App Tracker Service Shows Top Mobile Apps

Downloaded From iTunes in US

Games, Entertainment and Social Networking Dominant Apps Downloaded via iTunes

Source: comScore iTunes Mobile App Report

Country: US

Application Penetration of Installs Category Developer

Tap Tap Revenge 32% Games Tapulous, Inc.

Backgrounds 27% Entertainment Stylem Media

Touch Hockey: FS5 26% Games FlipSide5, Inc.

Facebook 26% Social Networking Facebook, Inc.

Pac-Man 24% Games Namco

iBowl 24% Games SGN

MySpace Mobile 23% Social Networking MySpace.com

Google Earth 22% Travel Google Inc.

Labyrinth 22% Games Codify AB

Pandora 21% Music Pandora Media, Inc.

Flashlight 19% Utilities John Haney

Virtual Zippo Lighter 18% Lifestyle Moderati Inc. and Zippo Manufacturing Co.

Movies 18% News Flixster

Hangman 18% Games Jamsoft

Bubblewrap 18% Entertainment Orsome Software Ltd.

Lightsaber Unleashed 17% Entertainment Lucasfilm Ltd

Shazam 17% Music Shazam Entertainment Ltd.

Mazefinger 16% Games ngmoco

Cube Runner 16% Games Andy Qua

Sol Solitaire 15% Games Smallware LLC

Crazy Penguin Catapult 15% Games Digital Chocolate Inc.

Topple 15% Games ngmoco

Sudoku 14% Games Mighty Mighty Good Games

Remote 13% Entertainment Apple

Page 26: Wired - Connecting to the Mobile Marketing Revolution

26© comScore, Inc. Proprietary and Confidential.

?

Page 27: Wired - Connecting to the Mobile Marketing Revolution

27© comScore, Inc. Proprietary and Confidential.

Is the Mobile Marketing Glass Half-Empty or Half- Full?

Pros

– Critical mass of consumers

– Paradigm shift in usage

– Attractive marketing platform

– Devices hit a trifecta of feature, function, and price

Cons

– Fragmented usage (sms vs. browsing vs. applications)

– USP is a bit unclear

– Too many devices

– Smartphone's are great but are still far from mainstream….

Page 28: Wired - Connecting to the Mobile Marketing Revolution

28© comScore, Inc. Proprietary and Confidential.

Mobile Advertising: Where On the Hype Curve Are We?

Page 29: Wired - Connecting to the Mobile Marketing Revolution

29© comScore, Inc. Proprietary and Confidential.

Accessing Content: Can There Only be One?

Total Browsing Application SMS

Parent Brand

Projected

Subs

Reach %

Within

Category

Projected

Subs

Reach %

Within

Category

Projected

Subs

Reach %

Within

Category

Projected

Subs

Reach %

Within

Category

AOL 20,057,880 29.2% 13,315,646 24.4% 10,409,536 27.6% 6,576,864 24.5%

Google 32,406,796 47.2% 27,459,101 50.4% 10,780,186 28.6% 8,083,838 30.2%

Microsoft 16,950,356 24.7% 12,251,127 22.5% 8,097,822 21.5% 3,507,565 13.1%

Yahoo! 33,202,529 48.4% 26,039,991 47.8% 14,943,369 39.6% 11,175,954 41.7%

Other 56,721,203 82.7% 47,766,579 87.6% 20,432,478 54.2% 9,523,640 35.5%

Total 68,588,594 100.0% 54,525,005 100.0% 37,704,757 100.0% 26,793,354 100.0%

Usage increasingly fragmented across 3 primary access methods

Jury still out on what modes of access (if any) will predominate & the respective strengths & weaknesses

of each method

Page 30: Wired - Connecting to the Mobile Marketing Revolution

30© comScore, Inc. Proprietary and Confidential.

Mobile Web Drawing Diverse Advertisers

Mobile Advertising: Not Just About Ringtones Anymore

Page 31: Wired - Connecting to the Mobile Marketing Revolution

31© comScore, Inc. Proprietary and Confidential.

Mobile Advertising Starting to Look Like all Advertising…

NON-MOBILE INDUSTRIES RANKED BY SHARE OF AD

INSTANCES

Rank April

2009

Rank

May 2008

Consumer Discretionary - Broadcasting & Cable TV 1 2

Consumer Discretionary - Movies & Entertainment 2 12

Consumer Discretionary - Automobile Manufacturers 3 3

Consumer Staples - Personal Products 4 18

Consumer Discretionary - Hotels, Resorts & Cruise Lines 5 4

Telecommunication Services - Wireless Telecommunication Services 6 30

Information Technology - Communications Equipment 7 11

Information Technology - Internet Software & Services 8 13

Information Technology - Application Software 9 7

Consumer Discretionary - Apparel, Accessories & Luxury Goods 10 44

Information Technology - Computer Hardware 11 8

Consumer Discretionary - Education Services 12 53

Consumer Staples - Food Retail 13 22

Consumer Discretionary - Homebuilding 14 No Ads

Industrials - Aerospace & Defense 15 5

Consumer Staples - Packaged Foods & Meats 16 27

Consumer Discretionary - Automotive Retail 17 16

Consumer Discretionary - Computer & Electronics Retail 18 6

More promotion of ‘traditional’ industries over the last year: Personal Products, Apparel,

Packaged Foods, Food Retail

Page 32: Wired - Connecting to the Mobile Marketing Revolution

32© comScore, Inc. Proprietary and Confidential.

Procter & Gamble – May Display Ads

Over 350 different creatives

Product Advertised: Covergirl LashBlast and Covergirl Outlast Lipstain

Ads ran on over 100 of the 530+ mobile websites Mobile Ad Metrix

monitors

Page 33: Wired - Connecting to the Mobile Marketing Revolution

33© comScore, Inc. Proprietary and Confidential.

Lots of Mobile Web Inventory to go...

100% 100% 100% 100%94% 93% 92% 87% 84% 82%

75% 75% 75% 72% 67% 65% 64%

43%

79%

0% 0% 0% 0%6% 7% 8% 13% 16% 18%

25% 25% 25% 28% 33% 35% 36%

57%

21%

Ad Monetization by Genre, April US

Paid Ads House Ads

1/5th of all inventory are house ads

Supply/Demand dynamic reminiscent of early internet

Page 34: Wired - Connecting to the Mobile Marketing Revolution

34© comScore, Inc. Proprietary and Confidential.

Case Studies

Page 35: Wired - Connecting to the Mobile Marketing Revolution

35© comScore, Inc. Proprietary and Confidential.

Case Studies: SMS

The Perfect Tool to Reach “Less Smart” Phone Users

SMS Ads:

Offer product/service received

Projected

Subs

as

%

YoY

Growth

Downloads for mobile phone

15,347,682 6.7% 21.8%

News or information

7,430,017 3.1% 55.0%

Mobile phone or plan 10,022,942 4.6% 31.4%

Entertainment 7,100,772 3.0% 57.9%

Clothing/Fashion 3,725,525 1.6% 128.6%

Restaurants 3,638,702 1.4% 75.0%

Cars 3,276,447 1.6% 166.7%

Food 3,664,558 1.7% 88.95

Financial services 5,814,964 2.4% 50.0%

Consumer electronics 4,174,461 1.6% 60.0%

Travel 3,720,195 1.6% 60.0%

Other 3,142,913 1.5% 36.4%

Unknown 6,917,771 3.0% 11.1%

100% platform compatible

1 in 2 consumers actively text

1 in 4 actively receive SMS marketing

Product: MobiLens Data: Three month average ending May 09 Country: US - N=

35,520

Page 36: Wired - Connecting to the Mobile Marketing Revolution

36© comScore, Inc. Proprietary and Confidential.

Case Study: Targeting

African-Americans & Hispanics on Mobile Devices

Total Subs in US 232mm

– African - American 18.6mm (7% vs. 14% of total population )

– Hispanic 16.8 (7.2% on mobile vs. 15.1% of total population)

Product: MobiLens

Data: Three month average ending march 09

Country: US

N= 35,629

7%

1%

4%

7%

4%

77%

Mobile Subs (by ethnicity)

African American

American Indian; Eskimo; Aleut

Asian; Native Hawaiian; or other Pacific Islander

Hispanic

Other

White

Regional

Distribution Midwest Northeast South West Total

New York

State

Hispanic 1,747,280 2,937,055 5,974,365 5,751,234 16,409,934 1,346,438

African-American 2,930,861 3,009,468 9,761,531 2,453,748 18,155,607 1,491,147

Page 37: Wired - Connecting to the Mobile Marketing Revolution

37© comScore, Inc. Proprietary and Confidential.

Case Study: Targeting

African-Americans & Hispanics on Mobile Devices Summary &

Recommendations

Mobile is an attractive platform to engage your target groups

– Small but active group on-device

While African-American & Hispanics share may traits, significant

differences in behavior need to be taken into consideration in your

marketing efforts

– iPhones vs. Blackberries

Targeting & Demographic considerations key

– Factoring in carries key to help marketing efficiencies

– Younger skews must be factored into messaging

Content behavior suggest strategy:

– Heavy content consumption suggest media placements in both browsing

and application environments

– Heavy SMS usage suggest including text messaging updates and offers as

part of your campaign as well

– Interest in news and information category suggest potential for campaign

specific apps/ information delivery mechanism

Page 38: Wired - Connecting to the Mobile Marketing Revolution

38© comScore, Inc. Proprietary and Confidential.

Case Study: Mobile Provides Excellent Opportunity for Advertisers

to Target Affluent Demographics

For example Cartier (Watches) or business solutions such as IBM and Verizon use mobile advertising

Mobile advertising provides a unique opportunity to target by device.

The data below shows that 40% of Blackberry (RIM) and Apple device owners earn over $100,000.

Product: MobiLens

Data: Three month average ending March 09

Country: US - N= 39,241

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

% P

en

etr

ati

on

Un

iqu

e U

sers

Devices Owners with Income $100,000+

Unique Users - Income $100,000+ % Income $100,000+

Page 39: Wired - Connecting to the Mobile Marketing Revolution

39© comScore, Inc. Proprietary and Confidential.

Case Study: Financial News and Tech News Provide the Greatest

% of Browsers with Income $100,000+

Over 37% of financial news and 32% of tech news browsers earn over $100,000 per year providing the

best targeting for advertisers searching for this demographic.

Product: MobiLens

Data: Three month average ending March 09

Country: US - N= 39,241

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Web search News Weather Sports information

Financial news Entertainment news

Tech news

% P

en

etr

ati

on

Un

iqu

e U

sers

Mobile Browsers with Income $100,000+

Unique Users - Income $100,000+ % Income $100,000+

Page 40: Wired - Connecting to the Mobile Marketing Revolution

40© comScore, Inc. Proprietary and Confidential.

Case Study: Nearly 60% of Blackberry Device Owners Who

Browse Financial News Sites Have Income $100,000+

By combining device and content genre information it is possible to increase targeting.

40% of Blackberry (RIM) owners, 37% of financial news and 32% of tech news customers have income

$100,000+.

The combination of Blackberry and financial news increases the penetration by 17.5 percentage points.

Product: MobiLens

Data: Three month average ending March 09

Country: US - N= 39,241

58.0%

51.4%

40.5%37.3%

32.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

BlackBerry Financial News Browsers

BlackBerry Tech News BlackBerry Owners Financial news Tech news

% in

co

me $

100,0

00+

% Income $100,000+

Page 41: Wired - Connecting to the Mobile Marketing Revolution

41© comScore, Inc. Proprietary and Confidential.

Case Study: Sprint Targets Their Competitors Customers

Marketers targeting users by device type

Sprint using targeting to entice competitors customers

to change carriers

Page 42: Wired - Connecting to the Mobile Marketing Revolution

42© comScore, Inc. Proprietary and Confidential.

BMx surveys are available on any phone capable of browsing the web

Measuring The Attitudinal Impact of Mobile

Campaigns

Typical Measures Include

Demographics

– Age, Gender, Income

Awareness

– Unaided & Aided

Favorability

Purchase or other intent

Ad or Message Recall

Campaign specific questions

Page 43: Wired - Connecting to the Mobile Marketing Revolution

43© comScore, Inc. Proprietary and Confidential.

Benchmark your Success with our Mobile Norms Data:

In Many Cases, Mobile Is More Effective Then PC

Point lift based on

exposure Delta Brand

A

Delta Brand

B

Delta Brand

C

Delta Brand

D

Average

Delta

Online *

Top of mind awareness of

brand+12 +1 +18 --- +1

Total awareness of brand --- +3 -3 --- +2

Awareness of ad +16 +16 +8 +8 +3

Likelihood to recommend

brand +4 +1 +1 --- +1

Purchase consideration +4 +0 +7 +4 +4

* comScore norms based on online, not mobile campaigns. Additionally, different scales were used to calculate

recommendation and purchase consideration questions.

Page 44: Wired - Connecting to the Mobile Marketing Revolution

44© comScore, Inc. Proprietary and Confidential.

Case Study: Media Mix & Response

Mobile Media Audience Receptive to Advertising

“I’m tempted to buy products I’ve seen advertised”

25

30

35

% o

f m

ed

ia c

on

su

mers

wh

o

ag

ree

Source: TGI M:Metrics 2008 – Base: All GB adults (aged 15+)

Page 45: Wired - Connecting to the Mobile Marketing Revolution

45© comScore, Inc. Proprietary and Confidential.

90

100

110

120

130

Responded to SMS advert Responded to DM

Ind

ex

Source: TGI M:Metrics 2008 – Base: All GB adults (aged 15+)

Coke Zero drinkers Responsiveness

Case Study: Media Mix & Response

Potential Greater Effectiveness than DM

Page 46: Wired - Connecting to the Mobile Marketing Revolution

46© comScore, Inc. Proprietary and Confidential.

So, In Summary…

Perfect storm of function, features, demand & (almost) price has arrived

Evolving carrier & OEM business models make on device marketing an increasingly

interesting proposition

29mm Smartphone users can’t be wrong …..

But neither can 200mm + “dumb” phones ….

Connecting the PC to Mobile dots is critical going forward ….

We have only seen the tip of the content usage iceberg (same can be said of

advertising)

Mobile is a big (brand) tent …..

Ignore market projections and shift money to mobile based on goals and audience

It’s all about targeting …..

Campaign Measurement is key to understanding impact and competitive dynamics

Page 47: Wired - Connecting to the Mobile Marketing Revolution

Thank You.

For more information, please contact

comScore Mobile [email protected]

THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE™