Mobile – new opportunities ahead

Robert Stalmach

Director Content Licensing & Mobile, Agora SA Berlin, June 2008

© Agora S.A.

Trends - Media convergence - mobile

(3G, HSDPA, HSUPA, WiMax, LTE, UMB,...) internet EVERYWHERE

MOBILE DEVICES COMPLEMENT PC (same makes, more time in internet)

IN FUTURE – FURTHER UNIFICATION of mobile & PC internet

•Mobile - most popular platform - 2,7 billion mobile phones and:

• 1,5 billion TV’s• 1,4 billion fixed lines• 1,1 billion internet PC’s

•Reasons:• Comfort• Functionality• Fall of prices

ARPU from voice falling – VAS present potential for MNO (not only media)

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Mobile Internet Increases Overall Web Use

Base: Mobile Internet Users Q20b. Select the statement which most accurately describes the time you spend on the Internet

TIME SPENT ON PC INTERNET SINCE ACCESSING MOBILE INTERNET

TIME SPENT ON PC INTERNET SINCE ACCESSING MOBILE INTERNET

4% 9% 4% 4% 6% 3% 2%

75%79%73%78% 79% 79%85% 83%

16%17% 15%18% 17% 17%21% 15%

Less Time Same Time More Time

(n=191) (n=413) (n=173) (n=316) (n=276) (n=282)(n=1651) (n=1460)

Mobile Study Europe OPA 07

Trends – change of media consumption

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Trends - New consumer

heavily

uses

INTERNET

(incl mobile)

COMBO-DEVICES

Talk, Read

Listen

Watch

Create

Publish

Searching

Surfing

Active

Mobile

Interacting

-iPhone – 4% of devices, 70% of internet usage (UK)

-55% of iPhone usage – data transfer (25% on other devices)

-30% of iPhone users use them often instead of laptops (USA)

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Trends - Generation change „Screenagers”:

Mobile Internet 2x more popular than average

Teenagers are 1/3 of mobile internet users

Pressure on being mobile: 87% of youth (<24) feel pressure of having mobile phone

78% would ask difficult question by sms (30% by mail) (source: mobileYouth)

Annual income from 5-9 years old users in Japan - 160 mln USD (penetration 55%)

Since mid 90’s mobile expenses replaced 500 bln $ for youth products: fashion, games, music & entertainment

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Trends - Generation change

Which of the below would you drop out as the latest?

Source: MDA

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1. Big budgets -not yet (2008?):• Big brands are looking for

new ways of comm. to their clients – in 2008 up to 89% of brands will dedicate part of budget to m-advert

2. Highest exp. growth in 2008 – mobile video & mobile TV ads, advergaming

Trends – change of media consumptionMobile advertising

New battlefield:- Google mobile AdWords- Yahoo mobile ad-net (19 countries)- Yahoo /T-mobile- Nokia Ovi, Advertising- GSMA Operators initiative (UK), Vodafone - 65

campaigns, plans in US (SprintNextel, Verizon, AT&T)- AdMob – 1,7 bln PI/monthly- Mobile search (white label vs branded)

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Agora’s strategy

StrategyII. Traffic generation

and customer base development

III. Revenue

Positioning Traffic Profit

I. Positioning

of brands in new channel

© Agora S.A.

Strategy

•„Light” portal

•Mobile journalism

•Video/Audio

•Geolocalization

•Games

•Loyalty programmes

•Lotteries

•Mobile Communities

•Content syndication

•Mobile advertising

•Mobile TV?

I. Positioning II. Traffic generation III. Revenue

© Agora S.A.

I. Positioninglight portal version

Launch - Aug 2007

• News

• Sport

• Economics

• Weather

• Cinemas (geolocalization)

• VIDEO

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I. Positioninglight portal version

Cinemas on maps

plans: • Weather

• Theatres

• Drugstores

• ATMs

• Applications

Partership with

Applications free of charge

Wielo.pl - Video UGC platform

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Gazeta Wyborcza mobile - beta version

• Gazeta Wyborcza e-edition platform• In cooperation with NewspaperDirect Inc.• Easy access• Intuitive navigation

I. Positioning

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I. Positioning Mobile browser

Opera Mini

• Web browser

• Designed primarily for

mobile phones,

smartphones and PDAs.

Promotion of Opera Mini on Gazeta.pl

Gazeta.pl and it’s services in Opera Mini

browser

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I.Positioning - Mobile (citizen) journalism

Have you seen anything significant?

Send SMS, MMS – we are waiting for your story

Your story may become

news of the day!!!

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II. Traffic generation\revenue - games

Fantasy Football, Speedway

GamesCo-operation with EA

FIFA 08 Patronage

Mobile games - Java

Games online

WWWMobile Consoles

Politics, Economics

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”Win the league” (football, speedway)

3 media: internet, mobile & paper Mobile – sign up, account mngnt, updates120k teams, 170 k SMS

Revenue:• Sponsoring (whole game, functionalities, leagues, clubs)• SMS/MMS

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II. Traffic generation – loyalty

mCouponData Matrix Code Mobile coupon in Agora’s paper media

Partners:Possible:

• Branded stands

• SMS tails

• Prints on coupons

• Program sponsoring

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II.Traffic generation – loyalty

Send SMS

In return you

will get SMS

...with Matrix code

Redeem your Matrix code - get ticket to cinema

Step 1 Step 2 Step 3 Step 4

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III. Revenue - content syndication

Entertainment, Sport

Syndication = Money + Brand Positioning!!!

NewsFashionTV guideEntertainmentSportScience + CultureEconomicsCuisine

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III. Revenue - content syndication

Entertainment

News, Premieres, Celebrities

News, Sport, Economics,

Cinemas, Music News

Syndication = Money + Brand Positioning!!!

PDF format

HDTV Platform

E-editions xml

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III. Revenue - Mobile advertisingAdvantages: •Targeting•Interactivity

•Always on/with

•Users’ base

Advertising tools (Agora):• SMS (database; competitions, games)

• Sponsored articles, display adv

• Mobile video (outro/intro)

• Java

Java AdsJava sport app

SMS campaignPromoting new game.

Sponsored articleBy Samsung

Display advSonyEricsson/Plus

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Revenue - DVB-HDVB-H

Digital Video Broadcasting - Handheld

Digital TV for mobile phones, palmtops

and other multimedia devices.

Agora as a multimedia content publisher is an active participant of

DVB-H consortium in Poland

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Revenue potential – what’s hot•VIDEO – 50% of young Europeans treat mobile screen as video screen. Estimated value of entertainment video – 10% of MNOs’ revenues in 2009 (Juniper)

•MUSIC - estimated growth of mobile music market from 3,3 bln $ in 2005 to 9,3 bln $ in 2010 (Gartner). Growth depending on prices

•MOBILE INTERNET & MOBILE SEARCH– 1/3 of mobile users using mobile internet. The number of mobile devices with access to internet exceeding PC’s (IPSOS)

•MOBILE ADVERTISING (incl geo-advertising)– estimated growth from 0,5 bln $ in 2005 to 9,3 bln $ in 2010 (Gartner, Telecoms&Media). CTR for mobile communities 5% compared to 0,2-0,5% for internet (ABI).

•GAMES – estimated growth of global gaming market from 5 bln $ in 2007 to 16 bln $ in 2012. Market becoming mass; growing number of random players (Juniper)

•NEXT BIG THINGS: Mobile TV (expected growth in no. of users from 12 to 120-200 mln in coming 5 years), M-commerce - 49% users declare using m-commerce in near future, (Nielsen Mobile), NFC

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Revenue potential – what’s not (so much)

• Podcasts – very early stage. Only 1% of loyal podcasts users (Pew Internet)

• Ringtones – superseded by MP3. In 2005 -2010 share of ringtones in mobile music expected to fall from 72% to 19% (Gartner)

• Wallpapers – losing popularity because of built-in cameras

• LBS – big hopes not fulfilled yet. Estimated revenue from LBS in 2010 in Europe - 622 mln Euro; 1,8% of non-voice revenues (Berg Insight)

• Mobile communities – only 2% of mobile phone users are members of mobile communities – estimation for 2011 - 5,6% (ABI Research)

• MVNO – very few „success stories” – much more losses

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Perspective

Media fast-growing industry adapt to:

changing media landscape

new consumption model

generation change

Early stage develop competencies value chain

Key points:

look for partnerships

don’t ignore the youth

try & learn

„Prediction is very difficult, especially about the future” – Niels Bohr

© Agora S.A.

Thank you

Robert Stalmach

Director Content Licensing & Mobile

Agora SA

robert.stalmach@agora.pl

tel. +48 507 095 237