Mobile Web East Africa3 February 2010,Nairobi, Kenya

Rick Joubertwww.rickjoubert.com

The mobile phone is the mostubiquitous consumer technology

on earth

#2 = FM Radio (3.9 Billion)

Business model / process impacts

1. Financial services2. Music / Gaming3. Photographic Industry4. Navigation industry5. Time piece industry6. Hardware7. Software8. Web

Coming soon

1. Health care2. Government3. Publishing

Access: PopulationPopulation in SA with entertainment / communication

technology in their household

AMPS

Growth of unique mobile phone access in SA

Source: AMPS

1999

11% of SA adults had access to(at least one) mobile phone.

200970% of SA adults use a mobile phone.

Growth of unique mobile phone access in SA among the economically active population

1999

20% of SA working adults had access to (at least one) mobile phone.

200982.5% of SA working adults use a mobile phone.

Source: AMPS

Penetration of mobile phone ownership in SABy expanded LSM

70% of the SA population has access to a mobile phone.

Source: AMPS 2009 A

In South Africa today..

There are more than four times as manyhouseholds with a mobile phone than computer.

44% of e-mails are sent andreceived from a mobile phone.

SMS text messaging is used by almostfour times more people than e-mail.

There are almost twice as manymobile phones as there are TV sets.

There are 5.3 times more homes withmobile phones than landline telephones.

There are almost six times more mobilephone subscribers than Internet users.

Source: AMPS 2009 A

5 Million unique11%

www Web users, RSA*

•Arthur Goldstuck, World Wide Worx

10.1 Millionunique mobile web users*

Mobile Web, RSA

•Strategy Analytics(less than 30% have access to the PC Web)

“Mobile Web” definition tiers*

Tier 1 The WAP Internet

Tier 2 The mobile application Internet

Tier 3 Web browsing on phone

* Goldstuck/Joubert

Access: PopulationPopulation in SA with entertainment / communication

technology in their household

AMPS

• $300 million p.a.

• 2000 films p.a.

• $30K budget per film

• Average film sells 50K disks at a price of $2

DVD player shipment by region

Source: “In-Stat”

AdMob Mobile Metrics: August 2009(ads called from the AdMob network)

- Apple iPhone = number 1 handset on every continent in the world…

- Except……

AdMob Mobile Metrics(ads called from the AdMob network)

- Apple iPhone = number 1 handset on every continent in the world…

- Except……

- Africa!

- Africa: no1 = Nokia 3110, no2 = Samsung E250

“Internet” access channels

PC Web

Smartphone access to PC Web

Mobile applications

Mobile Web (WAP)

SMSUSSDVoice

Driving forces

• Growth in data networks & coverage

• Mobile data access charges

• Content!

• + handsets - price

• Compliments – e.g. Mobile Wallets

Business model/monetisation

• Commerce

• Transactions / financial services

• Content

• Advertising

Positioning map of users of various mediaAge and Income

Source: AMPS 2009 A

7th Mass Medium

Print Recording Cinema Radio TV Internet Mobile

US Internet ad spend

30 September 2009, UK

At the end of its third year of full commercial adoption in the UK (2000),

online ad spend amounted to £153M

That was 0.9% of UK ad spend

UK ad spend

In developing markets mobile is the

FIRST screen(and often the only screen)

Mobile as a medium*

1. First personal mass media2. Permanently carried3. Always on4. Built-in payment mechanism5. Available at point of creative inspiration6. Accurate audience measurement7. Captures social context of media consumption

* Tomi Ahonen

“..available at the point of creative inspiration…”

The consumer will press 1 for more information and receive an SMS back with a link to the SA Unite portal.

Hero, lead or support?

• MediaDisplay advertising

• Direct MarketingPush messaging, lead generation

• Integrated MarketingInteractive response channel for other media

• Community Building and CRM

Now Playing

Messages RotateThe messages are rotated so each time the caller makes a phone call he/she hears a different A-Tone.

Ring

Ring

Suzan calls Mike

She expects to hear a ringing tone but hears an advertising message instead

Suzan listens to the superimposed advertising ring Tone 3-8 seconds

Mike Receives benefits for allowing ads to be played on his ring back tone

In South Africa advertising agencies are beginning to

GET IT

Agencies getting involved

37

It is an area of massive potential in this market and we have invested resources because I believe OMD needs to take a leading role as the largest media agency in SA.”

Josh DoveyCEO, OMD

Size of the prize?

Continental Africa:

$8 Billion p.a. advertising spend*

*estimate based on multiple sources including EIU, WARC and World Fact Book

What will be spent on rate carded Mobile Advertising in RSA in 2010?

$50 Million*

*personal estimate (not yet validated by MMA)

* Excludes push messaging and integrated mobile response

Thank Youwww.yonder.co.zawww.ringco.netwww.rickjoubert.com