SA Innovation Summit 2013: Open Innovation - New Opportunities, New Challenges
Opportunities in the Age of Innovation - Mobile
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Transcript of Opportunities in the Age of Innovation - Mobile
Great Opportunities of
History. And Today.
Greg StuartCEO, Mobile Marketing
Association 11 February 2014
1066 1197 1328 1459 1590 1721 1852
Marty Cooper Invents the Cell Phone1970’s
Apple releases the iPhone6/29/1970
Darwin's On the Origin of Species; Lenoir builds first practical internal-combustion engine
1/1/1859
Watt patents first practical steam engine1/1/1769
Industrial Revolution begins in England
1/1/1760
Newton's theory of universal gravitation
1/1/1664
Columbus reaches the New World1/1/1492
Renaissance begins in Italy1/1/1300
Genghis Khan begins creation of largest land empire in history1/1/1206
Norman Conquest of Britain1/1/1066
There have been a few great moments in history.
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Impact of Three Major Trends Today
① We are in the Age of Innovation
② Marketing & Media is in Chaos/Massive Evolution
③ Proliferation of Mobile
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1Age of Innovation
5
1946
A.D.
U.S. Venture Capital Investing Trends
1970 – 2012
1970 1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
$0
$20
$40
$60
$80
$100
$120
$0.1 $0.5 $2.6$7.3
$99.2
$38.0
$20.9 $21.8$26.3
$30.4
$19.5$26.7
93314
1050
1565
6420
3845
26882486
2752
33833398
2554
3143
VC Dollars In-vested (Billions)
Companies Funded by VC
Com
pani
es F
unde
d D
ollars Invested ($Billions)
Source: NVCA Venture Impact 2011, 6th Edition
And There are More VC Firms
8
Active U.S Venture Capital and Corporate VC Firms inBy Year, 2007 to 2013 YTD
Source: CB Insights June 2013
479
9
Plus a Rise in U.S. Internet InvestmentsInternet-Related Investments By Year, 1995-2012
1995 2005 20120
2000
4000
6000
8000
10000
12000
14000
16000
18000
0
500
1000
1500
2000
2500
$1,931
$11,153
$15,676
1369
$ Millions # Companies
2050
Source: NVCA 2013 Yearbook
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543,000 new companies monthly in U.S
Also, Innovation is Alive & Well in Israel - Rightly called “Startup Nation”
No. 1 in number of startups per capita: ~1 startup per 1,800 Israelis
No. 2 in absolute number of startups. (U.S.) is No.1. No. 3 in number of companies traded on NASDAQ after
U.S. and Canada.No. 1 in R&D spending per capita and is also Israel is
world leader in patents per capitaVenture capital investment per capital in Israel is 2.5
times over the U.S. and 30 times than Europe.
12Source: Reinhold Cohn Group 2013
13
Steady Rise in # Startups in Israel Too
1990 2000 2005 2012 -
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
400
2,000
2,500
4,444 Number of Startups in Israel, 1990 - 2012
Source: 1990 – 2005 data from Invest in Israel, Ministry of Economic State of Israel; 2012 Data is based on report from Reinhold Cohn Group- 1 Start-up/1800 Israelis and total population of Israel is 8million
14
2Marketing Chaos
15Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill
1704
16Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill
1890
17Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill
1960
18Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill
2008“The country’s third-largest advertiser, General Motors is getting ready to shift fully half of its
$3 billion budget into digital and one-to-one
marketing within the next 3 years.” Advertising AgeMarch 17, 2008
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CMO’s Should be Chief Innovation Officers
From Stephen Quinn, CMO of Wal-mart & Chairperson of ANA opening keynote presentation at this year’s ANA Masters of Marketing
More Tech Spend by CMOs than CIOs
By 2017, CMO will spend more on IT than CIO
2011 B2B and B2C marketing budgets as a percentage of revenue were almost three times as high (10 percent) as IT budgets (3.6 percent).
2012 IT budgets are expected to grow 4.7 percent, while all marketing budgets are predicted to grow 9 percent
On average, nearly one-third of named marketing-related technology and services is bought by marketing already.
25Source: Gartner 2013
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Google is single largest advertising brand there has ever been
And they got there in 15 years
BSKYB Viacom Bertelsmaann Time Wartner Google $-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$10.0$15.0
$21.0
$29.0
$50.2Revenue for Top Media Companies, 2012 In billions
Source: Google, TW, Bertelsmann, ViaCom, SKYB Annual reports
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And The Access to Consumers is Astonishing – Like Nothing Ever Seen
Gannett
Bertelsm
ann
Time W
arner
Viacom
Face
book -
200.0
400.0
600.0
800.0
1,000.0
54.6 49.0 55.0 80.0 191.0
945.0 Monthly Unique Users for Major Media Companies
In million
Source: FB, Google, Viacom, Time Warner, Bertelsmann, Gannett Annual reports
$500B
Worldwide
3Age of Mobile
30
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E0%
5%
10%
15%
20%
25%
7%8%
10%
14%15%
16%18%
19% 20% 20%
1%3%
4%5%
7%
11%
16%
22%
0.0166509025413565
0.0336356531378265
6%
PCSmartphonesTablets
Source: BII estimates, Gartner, IDC, Strategy Analytics, company filings, World Bank 2013
Inst
alle
d Ba
se O
f Dev
ices
As A
% O
f Glo
bal
Popu
latio
n1 In Every 5 People In The World Own A Smartphone: 1 In Every 17 Own A Tablet
Will be 10 Billion Mobile Subs this year!
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Smartphone Penetration is Worldwide
Africa
Israel
Germany
USA
UK
Hong Kong
Singapore
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
20%
57%
62%
64%
72%
87%
87%
Smartphone Penetration By Country, 2012
Source: Nielsen Report 2013; Note: Africa stats is from African telecommunications market and Israel Data is from Google and Ipsos MediaCT survey
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Apps Make Smartphones also a Medium
Sources: comScore, Alexa, Flurry Analytics
Greg Stuart, CEO; [email protected] +1 631.702.0682
Dec 2010. Dec 2011. Dec 2012.0
20
40
60
80
100
120
140
160
180
70 72 7066
94
127
162 168 168
U.S Web vs. Mobile App vs. TV Consumption , Minutes per day
Web Browsing Mobile Applications Television
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Apps Are Revolutionizing How We Get Access To Content, Community And Commerce And Entertainment
Mobile App Use Grew 115% in 2013, Propelled by Messaging Apps (1)
57 billion apps were downloaded in 2012
82 billion apps will be downloaded worldwide in 2013
and by 2017 there will be more than 200 billion downloads per year. (2)
Source: (2) Gartner September, 2013; (1) Flurry
2011 2012 2013 2014 2015 2016 20170
10
20
30
40
50
60
70
80
90
Paid For In-app PurchasesAdvertising Total Revenue
Mobile App Store Revenue, Worldwide, 2011 -2017 (Billions of Dollars)
Source: Gartner (Sep 2013)
34Apollo 11 was the spaceflight that landed the first humans on the Moon, Americans Neil Armstrong and Buzz Aldrin, on July 20, 1969
36
150xAverage each Day
82%Never Leave Home w/o Phone
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Mobile Advertising
slide titleFear, Uncertainty, Etc.
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% of Time Spent in Media vs. % of Advertising Spending, USA 2012
Note: Note: *Internet advertising reached $37B in USA in 2012 per IAB, Mobile advertising reached $4B per eMarketer. Print includes newspaper and magazine. $20B opportunity calculated assuming Internet and Mobile ad spend share equal their respective time spent share. Source: Time spent and ad spend share data based on eMarketer (adjusted to exclude outdoors / classified media spend), 12/12.
Print Radio TV Internet Mobile0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
6%
14%
42%
26%
12%
23%
10%
43%
22%
3%
Time Spent Ad Spend
Internet Ad=$37B* Mobile Ad
=$4B*
~$20 B op-portunity in USA
% o
f Tot
al M
edia
Con
sum
ption
Tim
e or
Ad
verti
sing
Spe
ndin
g
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“There is a lot of talent, but not a lot of opportunity.”Rye Barcott
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Lastly, Mobile Has Doubled its Share of VC Dollars
Source: Rutberg & Co. Aug 2012
Mobile VC as Percentage of Overall Tech VC
MMA’s Positioning on Mobile:
Nothing gets a marketer closer to consumers than
mobile. Nothing!
The True Power of Mobile
But What is Mobiles’ USP–Unique Selling Proposition!
It is…
1.Personal2.Pervasive3.Proximity
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But why does this really matter?
47 47
Mobile
Opportunity
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Impact of Three Major Trends Today
① World Loves Innovation
② Marketing Needs Help
③ Never Been an Opportunity Like Mobile
+1 631 702 0682@gregstuart
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Join the Community - MMA Events 2014MMA Events are great networking, education and leadership opportunities:MMA Forums NY Forum – May 6-7, 2014 Singapore Forum – May 22, 2014 Brazil Forum – August 26-27, 2014 India Forum – September 2014 London Forum – November 2014 Vietnam Forum – November 2014Global Events CEO & CMO Summit – July 13-15, 2014 (Hilton Head, U.S.) SM2 Innovations – September 30+, 2014 (New York) Cannes Lions – Jun 16-22, 2014 Smarties Awards New York – October 1, 2014
More coming http://www.mmaglobal.com/events/forums
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Growth of Local Councils Continues Worldwide:
APACChinaIndiaPhilippinesVietnam
MMA is Global – Branches in 15+ Countries
LATAMArgentinaBrazilColumbiaMexico City
EMEAAustria East AfricaFrance GermanyHungary ItalyPortugal SpainSouth Africa TurkeyUKMiddle East
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To accelerate the transformation and innovation of marketing through mobile, driving business growth with closer and stronger consumer
engagement.
MMA’s Purpose(new clarity of mission 11/13)
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