1 | Copyright © 2006 Enpocket, Confidential and Proprietary
Mobile Advertising: The Emerging Video Platform
Stuart HampsonVP Technical Services & Operations, Enpocket
2 | Copyright © 2006 Enpocket, Confidential and Proprietary
Enpocket: Worldwide Leader in Mobile Marketing
Most widely deployed mobile advertising and promotions platform
Headquarters in Boston, with offices in London, Singapore and Mumbai – 130 staff approx
End-to-end solution includes connectivity, platform, creative, media sales
Clients include Mapquest, match.com. Sprint, Airtel, JPhone / Softbank Mobile, Interactive Corp, The Sun
Award-winning Plan, create, execute, measure, optimize Messaging, browsing, handset applications
IDC names Enpocket one of 10
wireless companies to watch in 2006
Best MobileMarketing Provider
3 | Copyright © 2006 Enpocket, Confidential and Proprietary
The Mobile Advertising Challenge
Carriers need to balance advertising with an ARPU based business model
Subscribers need ads that are relevant and useful, not intrusive or annoying
Advertisers need an effective mobile solution – not just a banner
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$10 $15 $20
10%
20%
30%
NTT DoCoMo
KDDI
Vodafone Japan
Sprint
Verizon
T-Mobile US
Cingular
Wireless Data ARPU (USD)
Da
taa
sa
%o
fto
tal
reve
nu
es
SK Telecom
3 UK
So
urce
:C
he
tan
Sha
rma
Con
sulti
ng,
200
6
Vodafone UK
KTF
Vodafone Spain
Vodafone Italy
Vodafone Germany
3 Australia
O2 UK
O2 Germany
SingTel
Rogers
China Unicom
China Mobile
RelianceBharti
Hutch
T-Mobile UKT-Mobile Germany
B
C
D
Asia
Europe
Americas
3 Italy
Orange France
Orange UK
Orange Spain
Copyright © 2007 Steven Kursh and Marc H. Meyer, Northeastern University
Mobile Operator APRU Increased Through Data Services
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There are 40 million subscribers globally in 2006 #1
6.2 million U.S. mobile video subscribers in Q4 2006, up 145% since the first quarter of 2006
Japan has the largest market and is continuing to grow fast
3G networks at 72% coverage of the UK
UK online and mobile viewing is rising - three quarters of users said they now watched more than they did a year ago #2
Mobile Video Today: Key Market Indicators
#1 John du Pre Gauntt, ‘Mobile TV and Video: Big Dreams for the Smallest Screen’
#2 BBC News survey, November 2006
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Mobile Video Today: Formats
Mobile TV available on operator portals Subscription to channel packages (e.g., Sky, MTV, etc.) Special events - World Cup, Big Brother final, etc
Video downloads Clips - e.g., The Office and Little Britain at 50-75p on Orange (> 2
minutes) Soap roundups (25p)
Made for mobile content / snackable shows ’24’ mobisodes TARDISODE
60 second prequel 3000 downloads to mobile per episode
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Mobile Video Challenges
Take-up of mobile TV in the UK has been slow…
Operators looking at new business models – primarily advertising
Not easy to use – difficult on WAP to change channels, etc. Some operators looking at downloadable clients
3G network coverage not always available
Handset compatibility – number of 3G/video-enabled handsets
Users Dissatisfied With Mobile TV/Video:Top Reasons For Dissatisfaction ( U.S. )
Reason Percent Citing Reason
Low video quality 41%
Slow connection 35%
Small screen size 6%
Cost 4%
Other 14%
Source: Telephia Mobile Video Report (Q3 2006)
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Mobile Video Usage
Usage habits
Commuting
Lunch breaks
Taking the TV with you at home (e.g., making a cup of tea)
Big events – major news stories, sports events, Big Brother final, etc.
Top Mobile TV Channels and Mobile Web/Internet Sites (U.K,)
Mobile TV Channel Share (%) Mobile Internet Site Share (%)
BBC 1 33% BBC 28%
Sky Sports 29% SKY Sports 23%
Discovery Channel 24% BBC Sports 22%
BBC 3 22% BBC Weather 20%
BBC 2 22% Google Search 18%
BBC 4 22% Jamster 13%
ITV 1 22% Sky 11%
Cartoon Network 21% MSN Games 10%
ITV 2 21% eBay 10%
UK TV gold 17% AA 8%
Source: Telephia Audience Measurement Report U.K. (Q3 2006)
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Mobile Video Audience
Attracts coveted demographic groups:
Men 70% of current mobile video subscribers #1
Young viewers 62% of mobile video subscribers are between the ages of 18-36 #1
28% of those aged 16 to 24 saying they watched more than once each week #2
#1 Telephia, March 2007
#2 BBC News survey, November 2006
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Emerging ad placement options
Sponsored video clips / downloads
Video ads Streamed Download
Within streamed content Pre-roll Mid-roll Post roll
Mobile Video Advertising – Ad Placement
#1 OPA Europe, ‘Going Mobile: An International Study of Content Use and Advertising on the Mobile Web’ March 2007
Research shows that in EU, 37% would watch ads in exchange for free mobile content #1
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Mobile Video Advertising Case Study
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Reach mobile consumers during the days leading up to Super Bowl to build awareness of Pepsi Promotions
Promote launch of 15 new Pepsi can designs Make Pepsi brand matter to the in-control
consumer
4 targeted mobile banner ads for 5 days prior to the Super Bowl
Innovative ad mechanics including click to download branded wallpaper, click to view video spots of new can designs and click for live video updates of the game
4.65% CTR overall, certain segments with CTR of 11.5%
175,000 downloads of Pepsi wallpaper in 5 days
50% of clicks converted to download wallpaper
60% of clicks converted to view video
Pepsi Super Bowl Enpocket Case Study
Goal
Solu
tion
Resu
lts
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Summary
At present, there is limited inventory but technical advances and operator needs for new revenues are increasing the ad inventory available
Operators need to evolve to allow use of data (demographic and behavioural)
Major content providers (e.g., Sky) are building larger audiences for mobile video
Mobile Video will offer a significant channel for advertisers
Offers creative flexibility for brand building with interaction
14 | Copyright © 2006 Enpocket, Confidential and Proprietary
Thank you! Stuart Hampson
VP Technical Services & Operations, Enpocket