UK Mobile Marketing

FirstPartner Richard Warren Alfie Simmons Kate Hakes www.firstpartner.net | hello@firstpartner.net

rwarren@firstpartner.net asimmons@firstpartner.net khakes@firstpartner.net t. +44 (0)870 874 8700

Introduction - Strong male bias

- Consume mobile Internet Constantly - Low budget consumption
- Predominantly SMS bundles
- Style of handset is not important
- Mobile usage is on the increase
Mobile Marketing is the delivery of any type of marketing communications and
response through the mobile phone. Mobile supports brand and direct
Customer Frequent Traveller - Handsets generally smart phones
Connected - Average spend of £20-£25 per month
- Typically aged between 18-25
Time Rich - Mobile Internet - delayed heavy users of technology
- Typically aged between 35-44 - Late adopters, big spenders (typically aged 45+)
response advertising, CRM and customer services communications through
messaging, the mobile Internet and a growing range of innovative media
Segments Skype Customers
- Consume mobile Internet for personal needs - Parents with young children, typically aged 20-44
options. Mobile - Style conscious - handset is important - Low monthly spend of £20-£25 on average

Socialisers - Average spend of £30-£35 per month Families - Predominantly consume voice calls and voice messages
Key Enablers to Market Growth - Typically aged between 20-34 - Style of handset not important
Market development looks set to accelerate as factors restricting growth in
mobile marketing are resolved. The latest handsets offer a much improved user
experience with increased screen size, more intuitive browsing, faster data
speeds and improved search.
-3 - Orange - Virgin - Blyk - Tesco - Sainsbury’s

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Other factors driving take-up include flat rate data pricing and high profile
Operator Networks - O2 - T-Mobile - Vodafone MVNOs - Virgin - Fresh - BT
marketing campaigns by operators, focusing on mobile Internet and content.
Media owners are recognising the increasing importance of mobile as a channel
and are developing progressively more content optimised for delivery to and

e
viewing on mobile devices.
Media Search Engines - Google - JumpTap - Yell Mobile - Vodafone live! - Planet 3 - O2 Active - ITV mobile - Jamba - Peperonity Content & - EA Mobile - iTouch - Player X - Buongiorno
The accessibility of social networks via mobile is increasing mobile Internet - MSN -Yahoo! Operator Portals - Orange World - T-Zones Off-Portal Sites - Flirtomatic - Itsmy.com - I-play - BSkyB - MSN
usage with 24% of Internet enabled mobile phone users in the UK connecting Owners & Directories Service Providers - Glu - Gameloft - Digital Chocolate

to social networks on the move (ICM Research and the London School of

n
Economics).

By the end of 2007, 4.7 million UK users were subscribing to 3G services. Ease of The 8 1 2 3 4 5 6 7 8

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Mobile Mobile Mobile Mobile Mobile Mobile Mobile Mobile
le
access to 3G enabled devices, wide UK coverage and the introduction of flat rate
Messaging CRM Portal Off-Portal Broadcast Content Local Handsets
andsets
browsing contributed to a year on year increase of 60% in mobile Internet
usage.
Ways of
Mobile

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This type of marketing is highly targetable as the
subscribers must opt in at registration to receive
Accelerated by flat rate tariff packages, the iPhone has been instrumental in relevant ads. Exceptionally high delivery and recall
exposing the UK market to the possibilities of the mobile Internet and with this, Marketing rates among consumers. Mobile IM aslo offers
opportunities.
wider opportunities for mobile advertising have developed. Mobile advertising
marketplace AdMob has described the growth in iPhone advertising as
A market expected to take off, mobile CRM allows
brands to engage with their target audience. This
channel offers convenience and high quality
customer service, whilst delivering efficiency and
cost savings.
Operator portals are still a dominant channel for
mobile content delivery, offering high levels of
reach for banner ads, search and sponsored
content.
Off-portal browsing will become increasingly
dominant as search and handset user
experience improve, offering better
opportunities for banner advertising.
The number of TV ready, video streaming and
radio podcast enabled handsets is growing in all
subscriber bases. This media channel is very
similar to traditional TV Broadcasting with
product placement, sponsorship and rtising.
d advertising.
gly important platform for the
An increasingly rvices and pr
Location based services proximity Installing and embedding mobile content onto
ery of entertainment and media content
delivery marketing enable
ble advertising to be highly handsets creates the user experience of
including videos, music, games, and UGC. C. targeted to location and context. Specifically obtaining content and marketing
mark messages
Content can be e sponsored or branded with adds
dynamically inserted, or created specifically for a
relevant to retail and events.
events without actively browsing th
the mobile Internet.
campaign.

a
‘explosive’, with the UK customer base exposed to the third highest volume of
iPhone ad traffic globally. SMS MMS Service Alerts Internet & Search Mobile TV Downloads and Strea
Streaming Bluetooth
ooth Idle phone
h
Channel Opportunities

Mobile coupons Tracking Local Search Radio

dio & Casting Gamess NFC On-device portals
Mobile Marketing Outlook

P
FirstPartner Forecasts the UK mobile advertising market will be worth 687M
Sponsored roaming alerts Commerce Banner advertising Sponsored
ponsored content
cont Videos Wi-Fi Call interstitial
Euros by 2012 with the dominant category being mobile Internet advertising,

y
t
comprising on and off portal banners and sponsorship, valued at 490M Euros.
Sponsored content alerts Voice-interactive ads Keyword
word advertis
advertising Music 2D barcodes Point of Manufacture
anufacture ads
Mobile Ad Revenues UK
800

a n Opt-In Push Messaging Ad-funded services SD

D Cards
Card Location-based services Widgets & gadget
gadgets

s
700

p
Campaigns

600
Handset Services - Walkers - Mercedes - NHS - First Direct - Honda - Yell
Ye - Nike
ke - Cha
Channel 4 - BBC - Mars - Microsoft - Crown Paints - Orang
Orange
500 - Unilever - Brylcreem - Vodafone UK - BAA - Nivea - Guinness - ITV - Adidas - Warner Bros - Honda - Vodafone
odafo

r
m
Messaging - Macmillan - Orange -The AA - Walt Disney Internet Group - Sony BMG
BM - Sky - New Line Cinema - Total
al Fitness Health Clubs Motorola
- Mo
€ million

400
Content

o
i
300
Mobile Internet - Mediaburst - eBuddy - mBlox Search Engine
En SEO Traffic Optimiser
fic Optim - Nokia - O2 - Madwavess - Gamejump - Hypertag - Qwikke
Qwikker - Celltick - Refresh Mobile
Providers

- Pure360 - Mobivate - WIN Qualcomm

- Qualcom - Rok - Fone Starz
tarz - Playphone - Hati Lt
Ltd - Bluecasting
Blu - Abaxia - LiveScreen Media

C
200 - JumpTap
Jum - Just Search - Latitude e
Search - Incentivated - Brand Attention - Xiam - Arqiva
A - Amobee
bee - InfoSpace
Space - Bluebite
uebit Google
- Goo - Aricent - Surf Kitchen
- Ymogen Google
- Goo - Accur
Accuracast - DC Storm m
- Sky - Zedge
ge
100 - Hands-On
ds-On Mobile - Merlin Proximity Marketing
Marke - Qualcomm - Mobile Posse
Yahoo!
- Yaho - Direct Traffic Media - Trade Doubler
bler

t
- Yell - Guava - Double Click

F he Go
0

e
2008 2009 2010 2011 2012
Note: Forecast excludes creative revenues, short code responses, CRM driven

k
messaging.

Interesting facts About Mobile

• 96% of people open text messages (Incentivated).
• Mobile handset ownership reaches 97% in urban areas in the UK (Ofcom).
• 100 billion text messages are sent throughout the UK each year (IPA).
• The global mobile advertising market is expected to grow by a factor of ten

M a
Aggregators

r - 2ergo
- Clickatell
C
- En
Enpocket
- Enp
Enpocket
- Flytxt
Fly
- Hy
Hybyte
- mBlox
ox
- Mobile Interactive Group
- Mobizar
- Mindmatics
Mi
- Netsize
Net
- Opera
Op Telecom
Sales Houses
- Agenda 21
- GroupM
- Publicis
- Yahoo!
oo!
- Google
- Yoc Limited
- 4 Digital Solutions
- Sky Media

Design, Creative & Campaign Management

Desig
Ad Networks
(Mobile & Web)
- Admob - Google AdSense
- Third Screen Media - Yahoo!
- Nokia Media Network - Admoda
- Medio
- Screen Tonic
- DoubleClick
- Smaato
- Adshandy
- itsmy.biz

o
over the next four years (Jupiter Research).
• Mobiles have unparalleled reach with over 90% of the UK population owning

T
one or more handsets (IAB). Media Strategists/
• Search commands 60% of Internet advertising spend in the UK (IAB). Mobile Commerce Enablers Mobile Marketing Platform Providers Full
ull Servi
Service Agencies Specialist Agencies
Planners/Buyers
Metrics & Measurement
• Almost half of the British mobile population (46%) have accessed the Internet Campaign
aign
using their mobile (Mobile Life European Report). - Bango - Verrus Mobile
Mo - mBlox - Ergo Computing g -BBango Infuse
- Ad Inf - 2ergo - Accuracast - Publicis -12 Snap - Marvellous - Interlinked Media - Unanimis
• The mobile phone is the most important possession for 1 in 6 people in Britain Execution
on - PayforIT
- MX Telecom
Technologies
chnolog
id systems
- Upaid
- Masabi - InVue
- Interlinked Media
- Volantis
- Minick
inick
mFusion
- mFusio
- Mobile
obile Interactive
I
- Air2Web
A - Insidemob
- Aegis Group
- Clearchannel
- WPP
- Enpocket
- Aerodeon
- We Love Mobile
- mFusion
- I-Level
- Harvest Media
- Zenith Optimedia
- Fremantle Media
- M:Metrics
- Bango
- Nielsen Online
- comScore Europe
– this increases to 1/3 of individuals when looking at those aged 16-24 (IAB). - GSMA - Redeye
- Newbay - Velti Group - M&C Saatchi - Fli Digital - UniqMinds - Flytxt - Yodel Digital - Fox Interactive Media
• There are now more households with a mobile and no landline than the other - Media Square - Insidemob - Incentivated - Sponge - Target Media - Ring Ring Media - Mobile operators
- eType
Type / Accelerator
Accelera - Xiam Media
- Right M
way round (IAB).
• The UK has the 6th highest percentage of mobile Internet users in the world at
16% (Ofcom).

-T
Prepared by
Automotive
Autom Finance Fast Moving Consumer Goods Media Travel Consumer
VW Renault Honda Smart Compass Group Santander IW Bank Coca-Cola Becks Guinness Red Bull Sky Channel 4 BBC BAA Air France KLM Lufthansa Colgate Nike Michelin

We help our clients: Brands & Advertisers

Advertis BMW Mercedes Jeep Peugeot Lavazza Heineken Lucozade Phillips Nokia EA Games

Understand new market opportunities

Launch market propositions
Develop customer centric messaging
Build and execute effective channel strategies Key
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FirstPartner ABI Strategy Analytics GSM Association Advertising Standards Authority SMS & Mobile Messaging Association Mobile Marketing Association
Disclaimer Market Insight Gartner Informa Forrester Regulators/Associations/Events DMA Mobile Marketing Council Mobile Data Association PhonepayPlus IAB Under Construction
The map includes information compiled from various reputable sources and other
methods like structured interviews and surveys, conference material and
information available in the public domain. As data and information sources are
outside our control, FirstPartner makes no representation as to its accuracy or Factors Reach Targeting Creative Opportunities Cost Results ROI
completeness. All responsibility for any interpretation or actions based on this map
lies solely with the reader. Copyright 2009 to
Need Extra Copies? Consider Advanced targeting capabilities makes mobile the
fastest growing sector of the digital advertising
Targeting options include:
- Behavioural targeting
Interactive customer engagement is possible via
creative channels such as games, videos and
Sales are generally CPM based, however CPC and CPA
are also offered. Although mobile advertising costs
Mobile marketing boasts click-through rates of
approximately 2%-3%; ten times higher than those of
The rate of return for mobile marketing is favourably
comparable to alternative media.
t: +44 (0) 870 874 8700 market. Unrivalled reach is possible owing to wide - Demographic targeting competitions. Designs can be tailored to target a are higher than traditional channels, it is very traditional Internet advertising. The channel can provoke - Preference delivers a superior conversion rate.
f: +44 (0) 870 874 9888 UK coverage, high ownership of mobile devices and - Location targeting specific audience and can be created rapidly targeted giving greater cost efficiencies in campaign a viral effect if created and targeted at the correct - Very accurate measures for delivery and response rates.
almost instant access relationship between an - Contextual targeting and uploaded instantly. management. groups. It has a higher recall rate than other advertising
e: hello@firstpartner.net firstpartner.net audience and the brand. mediums and also has superior Call to Action potential.
- Greater ability to push the customer to point of purchase.