Louis GumpVice President - Mobile, CNN

the Surfacethe Surface

BeyondBeyondin Mobilein MobileA Pendulum, a Paradox and a Pie

PendulumPendulumParadoxPie

“A Day in the Life,” Google, 2008

Industry timeline

1999WAP

2002Java, BREW, RIM, Symbian, MS, etc.

2005WML, Ad promise

2008Apple and Android arrival

2011HTML5,Ad expansion

2014??

2017??

MOBILE WEB

1996Palm OS

2000 2005 2010 2015

APPS

We generally hear three basic predictions today:

We generally hear three basic predictions today:

Mobile web

will eclipse apps

Mobile web

will eclipse apps

Appswill end

browsing

Appswill end

browsing

Web apphybrid will

emerge

Web apphybrid will

emerge

Which is more important?

Mobile web

Apps

Guidelines for most of us1) Start with the consumer in mind

2) Build a mobile web site

3) Launch apps as appropriate

4) Monetize in a consumer-friendly way

PendulumParadoxParadoxPie

The test of a first-rate intelligenceis the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.”

— F. SCOTT FITZGERALD

“

ConvergenceThe act of converging and especially moving toward union or uniformity.

DivergenceA drawing apart (as of the lines extending from a common center.)

ConvergenceDirect access to enhanced mobile web sites with faster networks and better handsets

DivergenceEmergence of individually powerful devices requires products tailored for each one

* BOTH ARE HAPPENING IN OUR INDUSTRY AT THE SAME TIME

First-rate content companies will build first for the consumer,and second for efficiency,with appropriate balance.

Devices

Large screenFixed locationTVs

Devices

Medium screenOften fixed locationPCs

Devices

Personal-sized screenMobile, immersive

Tablets

Devices

Smaller screenMobile, snacking

Phones

Devices

Game consolesRefrigeratorsOthers

Content companies need to think about consistent user experience across platforms.

IMPLICATIONS

Similar contentShared infrastructureCross-brandingTV Everywhere

Content companies need to think about consistent user experience across platforms.

IMPLICATIONS

Content companies should have a clear idea of differences for each platform.

IMPLICATIONS

Start with the assumption that each major platform is differentand then work backward into the similarities.

PendulumParadoxPie

Already 7 percent of major advertisers plan to spend more than $1 million on mobile advertising in 2008. Thirteen percent will spend more than $100,000.”

“2008 2010

7%

13%15%

31%

WILL SPEND

> $1M

$100 - $250 K

Mobile can be used to reach core consumers across platforms for advertisers just as content publishers are engaging consumers across the same platforms.

So how big can mobile be, financially?

So how big can mobile be, financially?

2008

Revenue potential

2011

Revenue potential

2014

Revenue potential

Monetizing models1) Advertising

2) Per app fees

3) Per subscriber fee (cable)

Monetizing models1) Advertising

2) Per app fees

3) Per subscriber fee (cable)

2008

Global Mobile Advertising

2009 2010 2011 2012 2013

CAGR 47.7%

INFORMA MOBILE CONTENT & SERVICES REPORT 2009

LatinAmerica

NorthAmerica

Europe, Middle East, Africa

AsiaPacific

Mobile Internet Ad Revenues

INFORMA, PRICEWATERHOUSE COOPERS

Ad sales channelsDirect sales

Ad networks

Mobile can be used to reach core consumers across platforms for advertisers just as content publishers are engaging consumers across the same platforms.

WORTH REPEATING

PendulumPendulumServe customers first using an optimal mix of apps and mobile web.

ParadoxParadoxAvoid the ‘It’s all separate’ or ‘It’s all the same thing’ mentality.

PieThere is enough for many companies with many approaches.

Questions?Questions?

Thank you.Thank you.