nicky iapino - going mobile

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2010 – the year for Mobile! A4expo Europe, Munich 2010 Nicky Iapino – Digital marketing consultant

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Page 1: Nicky Iapino - Going Mobile

2010 – the year for Mobile!

A4expo Europe, Munich 2010Nicky Iapino – Digital marketing consultant

Page 2: Nicky Iapino - Going Mobile

Contents

Background – biog Nicky Iapino UK affiliate market The Mobile Internet – why does this time feel different Research on mobile growth How iPhone is changing the way we interact with mobile Performance marketing on mobile! Brief case study and theory Summary

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Background – biog Nicky Iapino I worked in affiliate/performance space for over 10 years – helped define the

sector and convinced many blue chip companies to adopt affiliate as part of their online strategy

Commission Junction – US network. Launched the European operation COO role with UK affiliates – merged this business with Webgravity Launched affilinet – established a niche business model “quality over

quantity” Took over as AdLINK UK Group MD in 2007 Worked with some of the top UK advertisers – Barclaycard, Vodafone, eBay,

O2, M&S in a total of over 500 programs Real passion for Performance marketing One time award presented at the a4u awards in 2008 for Excellence in the

sector Currently working on a project for BBC.CO.UK Non exec positions at Propel London and RO-EYE

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UK affiliate market

In 2008, an estimated £227m was paid in commissions and fees to affiliates and networks!

Source: econsultancy – affiliate marketing buyers guide 2009

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“Where will affiliate/performance growth come from next year”?

“Will it be mobile”?!?!

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Why is the tech change in mobile different?

It’s ramping faster (based on user growth) than any other cycle It’s BIGGER based on opportunity It’s global, and every region brings something to the party based on it’s

mobile connectivity/ wants/ needs/ income level The US has grabbed the leadership after ignoring mobile for more than a

decade – thanks to the likes of Google, Apple, Amazon – including a lot of start-up’s and Silicon Valley is hotting up again

A host of relatively young, but seasoned, technology veterans are part of this cycle. They are engaged and they all have something to prove. This includes, both experienced leaders like Steve Jobs and next generation new kids on the block like Facebook’s Mark Zuckerberg

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Technology cycles tend to last ten years

Mainframe

Computing

1960s

MiniComputing

1970s

PersonalComputing

1980s

Desktop Internet

Computing

1990s

Mobile Internet

Computing

2000s

> > > >

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New computing cycle characteristics

Reduce usage friction via better processing power + improved user interface + smaller form factor + lower prices + expanded services = 10x more devices

Computing growth drivers over time, 1960 – 2020More than Just Phones

SmartphoneKindleTablet

MP3Cell phone / PDACar Electronics GPS, ABS, A/V

Mobile VideoHome Entertainment

GamesWireless Home Appliances

Source: ITU, Mark Lipacis, Morgan Stanley Research

Page 9: Nicky Iapino - Going Mobile

Mobile Internet vs desktop Internet adoption

“Mobile is ramping faster than desktop Internet did and will be bigger” 5 Trends converging:

1/ 3G - The 3G adoption is hitting inflection points2/ Social Networking - Consumers want to connect via wired + wireless Internet3/ Video - Consumers want to find, select, watch Video via wired and wireless Internet4/ VoIP - Consumers want to chat (via Voice + Messaging + Video) via wired + wireless Internet5/ Impressive Mobile Devices - Apple’s iPhone + iTouch + App Store launches over the past 2.5 years created the spark for Mobile Internet. Liftoff as Microsoft’s launch of Windows 3.0 did for the PC in 1990 and the Netscape Browser (and its IPO) did for the desktop Internet in 1995

“Regarding pace of change, users will likely connect to the Internet via mobile devices rather than desktop PCs within 5 years”

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Mobile phone usage is about data, not voice

Average cell phone = 70% voice vs iPhone = 45% voice Daily usage breakdown, % of Time Spent on Each Activity:

Average US cell phone useriPhone User

40 minutes per day60 Minutes Per Day

Source: iSuppli ConsumerTrak survey, 10/08, Morgan Stanley Research

Page 11: Nicky Iapino - Going Mobile

Mobile takeaways for Western Europe

Mobile search advertising revenues in Western Europe will grow from 39 million Euros in 2008 to 2.3 billion Euros in 2013, representing a compound annual growth rate of 125.4 %

Source: THE KELSEY GROUP’S ANNUAL FORECAST; WESTERN EUROPE MOBILE SEARCH AND DISPLAY 2008 – 2013

Mobile display ad revenues will grow from 14 million Euros in 2008 to 1.1 billion Euros in 2013, a 138.3 % CAGR

Western Europe leads the United States in adoption and monetization of mobile local media, primarily due to the greater number of mobile handsets in the region — 499 million in 2008, compared with 266 million in the United States

In addition to more mobile subscribers, the rapid proliferation of smartphones is helping drive growth in mobile advertising

The number of smartphones in Western Europe will grow at a 35.7 % CAGR during the forecast period, from 32 million in 2008 to 149 million in 2013

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Mobile Internet advertising spend 2004 - 2013

Mobile Internet advertising market by country in US $ millions

Source: PriceWatersCoopers LLP, Wilkofsky Gruen Associates

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Western Europe Mobile display ad revenues 2008 – 2013

The countries included: France, Germany, Italy, Spain and the UK

Source: THE KELSEY GROUP’S ANNUAL FORECAST; WESTERN EUROPE MOBILE SEARCH AND DISPLAY 2008 – 2013

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Western Europe Mobile search ad revenues 2008 – 2013

The countries included: France, Germany, Italy, Spain and the UK

Source: THE KELSEY GROUP’S ANNUAL FORECAST; WESTERN EUROPE MOBILE SEARCH AND DISPLAY 2008 – 2013

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Wired Internet advertising spend Wired Internet advertising market by component in US$ millions

Wired Internet advertising market growth by component in %

Note: Western Europe including Austria, Belgium, Denmark, Finland, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and UK

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Source: PriceWatersCoopers LLP, Wilkofsky Gruen Associates

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“How iPhone is changing the way we interact with mobile”

Ringtones - "the only revenue for a long time"!

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How I use my iPhone

Page 19: Nicky Iapino - Going Mobile

How I use my iPhone

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Performance Marketing on Mobile! Education! Many Advertiser’s do not understand the potential for mobile

and have not equipped their business for the change in user behavior Some CPA trials had been done already, but due to lack of understanding

on the Advertiser’s part, these trials have failed! Mobile is important, but a learning process has to take place – a change in

payment model for example – cost per call and cost per lead models?? Even with CPC and CPL there are very few Advertisers with m-commerce

sites/apps, so this will take time and work to build. But an Advertiser doesn’t necessarily need a full m-commerce page to engage customers

There are no budget or commercial barriers – pay for performance A re-education of the market and understanding of engagement needs to

be realized I decided to do a very basic case study to test whether mobile converts

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Case Study - Vodafone

Used Purely mobile traffic to drive calls to Vodafone call centre Traffic methods used:

Mobile Advertising networks Paid search Handset specific targeting

Built mobile pages on behalf of Vodafone that were user friendly for all type handsets and that would drive a clear call to action (example included overleaf)

Tracked all activity through unique telephone number’s and tried 3 different campaign types to compare activity

Page 22: Nicky Iapino - Going Mobile

Case Study - Vodafone

Example landing page

Page 23: Nicky Iapino - Going Mobile

News Flash!!!!

Apple patents “iTravel”, a mobile booking and ticketless check-in App for iPhone!!

Apple has filed a patent for a travel app called iTravel that books flights, hotels and car reservations, as well as providing ticketless check-in using Near Field Communications (NFC), a short-range wireless technology.

Apple has already indicated its interest in the ticketing space by filing a patent for "Concert Ticket +", an event ticketing

system linked to iTunes. But this is the first indication that the company is actively looking to target the travel vertical.

Mobile Times

Page 24: Nicky Iapino - Going Mobile

Summary If you are not already thinking mobile, you should be! Mobile is ramping faster than the Internet ever did Performance on the Internet represents around 10% of online advertising

spend, mobile will follow this trend as a minimum Tests have shown mobile converts traffic to customers

“Mobile performance ad revenues will grow from 1,4 million Euros in 2008 to >110 million Euros in 2013, a 138.3 %

CAGR in Western Europe”

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Thank you!

Nicky Iapino – Digital marketing consultantE-mail : [email protected] : +44 (0) 7841 143 243Skype : belfastnickyTwitter : belfastnickyLinkedIn : http://uk.linkedin.com/pub/nicky-iapino/2/50/3a3