Velti OMMA Global NY

CONFIDENTIAL & PROPRIETARYCONFIDENTIAL & PROPRIETARYCONFIDENTIAL & PROPRIETARYCONFIDENTIAL & PROPRIETARY

OMMA Global 2011Navigating the Global Mobile Marketing and Advertising Landscape

CONFIDENTIAL & PROPRIETARYCONFIDENTIAL & PROPRIETARY 2

Global Market Insights How consumers are interacting with mobile around the world

Part 1 – Mobile Subscribers, Handset Data, Mobile OS

Part 2 – Global Stats, Mobile Web, 3G & 4G Coverage

Part 3 – Mobile Marketing, Advertising & Messaging

Part 4 – Consumer Mobile Behavior

Part 5 – Velti Global Case Studies


Part 1 - Global Mobile Penetration

Global mobile footprint is over 5 billion consumers!!


Part 1 - Global Smartphone Penetration


2011 Inflection Point: Mobile Devices Outselling PCs


2011 Inflection Point: # of Smartphones > # Feature Phones

iOS + Android Market Share = 68% of Smartphones


Part 1 - Global Mobile OS Market Share Android is Dominating

Over 550,000 Android activations, daily!


Part 1 – Mobile Browser Penetration – North America


Part 1 – Mobile Browser Penetration – Asia


Part 1 – Mobile Browser Penetration – Europe


Part 1 – Mobile Browser Penetration – South America


Part 1 – Mobile Browser Penetration – Africa


Part 2

Global Mobile Stats, Mobile Web, 3G, 4G


Part 2 - Global Mobile Device Sales in 2011

Number of iOS devices supported globally = 6

Number of Android devices supported globally = 300+


Part 2 - Global Mobile Statistics:

5.7 Billion mobile subscribers lead by India and China - 80% of the global population

Mobile device sales going north – 18.5% more devices sold in 2010 than 2009

Android has become the top OS for new smartphones in 2011

Mobile access to the web will overtake PC by 2014 – mobile phone penetration outnumbers fixed internet users 5:2, globally

There are more mobile web users in China than in any other country (300 Million+). Asia is set to dominate global mobile web. 1) Advanced mobile markets, 2) large population, 3) low PC penetration

As of today, 85% of new handsets sold are able to access the mobile web

One in five global mobile subscribers have access to 3G or 4G

Unlimited data plans opened mobile web expansion in Japan, now UDPs are driving the US


Part 2 - Many Mobile Web Users are Mobile Only

This = close to 70 million consumers in the US, so yes, you need a mobile optimized site!


Part 3

Mobile Marketing, Advertising, Messaging

CONFIDENTIAL & PROPRIETARYCONFIDENTIAL & PROPRIETARY

Global Media Spend in Display (Mobile Only): 2015

TOTAL AD SPEND

$ 923 MM

$ 1,091 MM

$ 6,051 MM

AD SPEND

$2,741 MM $2,154 MM $ 1,446 MM $ 570 MM $416 MM $ 301 MM $ 255MM $ 185 MM $8,069 MM

• Mobile media market evolving similarly to online media

• 2011 Formats ($5.3 BB) - Search = 55% - Display = 43% - Messaging = 2%

• 2015 Formats ($24.8 BB) - Search = 55% - Display = 43% - Messaging = 2%

• Rate of Growth - Overall = 255% - Search = 255% - Display = 252% - Messaging = 162%

* Source: ABI Research, May 2011

NOTES

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Part 2 – Global Trends

Mobile ad spend worldwide is predicted to be $5.3 billion in 2011 sky rocketing to $24.2 billion in 2015, driven by search ads and local ads.

$9B in Asia / $6.5B in Europe / $5.4b in North America / $3.3B other regions

In the US over half of U.S. mobile ad spending is local. Asia – Japan particularly – continues to dominate global mobile ad spend

SMS leads all mobile behaviors – 8 trillion+ text messages will be sent globally in 2011 – Combination of standard rate and premium.

How many people see and react to mobile ads?

In UK, France and Germany, 45% of consumers (especially younger people) noticed mobile advertising and of these, 29% responded to it. “Click” to conversion is high as well with the following stats- Germany 49%, UK 47%, France 22%

The most effective form of ads was opt-in SMS in the UK (40 percent said they were more likely to respond to these) and in France (21 percent); while in Germany it was mobile Web ads (27 percent)

Time sensitive special offers or discounts (especially m-coupons) were most likely to lead to purchase.

People were most likely to purchase mobile content such as applications, music, games, tickets

*Source MobiThinking


Part 4

How are people across the world interacting with mobile?


Part 4 – Global Trends

*Source - MobiThinking


Asia-Pacific

eMarketer estimates just under 30% of Asia-Pacific mobile users, or 623.3 million, will log on to the web via mobile at least monthly in 2011.

Mobile internet penetration is expected to rise to 42.1% of mobile users in the region by 2015

For many of these users, mobile is the first screen for internet access

Recommended strategies – mobile web display, expandable, mobile site

Word to the wise – Know your global aggregator partners well, and understand your SLAs! Make sure they are strong.


Western Europe: France, Germany, Italy, Spain and the UK

The willingness of consumers in Europe to interact with brands on their mobile phones—and their growing appetite for perks such as coupons and special offer alerts—have jump-started a new phase in mobile marketing.

Marketer strategies are increasingly sophisticated, comprising solutions that address every phase of the purchase cycle, including permission-based marketing best practices.

A greater number and variety of European brands are rising to the challenge. As a result, mobile ad spending is set to rise accordingly across the region.

Recommended strategies: Opt-in SMS via loyalty solutions with mCRM

Word to the wise – Know your global aggregator partners well, and understand your SLAs! Make sure they are strong.


Mobile Advertising in Africa- a study done by Comscore

Key Findings:

“African consumers have clearly embraced mobile as the primary screen in their lives. Publishers in Africa have a tremendous opportunity to improve the consumer experience by providing local content and grow their business simultaneously,” -former head of Google South Africa.

69% of Africans are very or somewhat comfortable with mobile advertising. This is the highest in world with the US and Europe at only 61%.

45% of consumers view “helping me find new information” as the number one benefit of mobile advertising.

In exchange for mobile ads on their phone, consumers prefer discounted services such as 10% savings on the phone bill (55%) or free content (49%).

The most appealing calls to action for consumers included click to call (30%), Viral or Social Media (24%) and then content, search, and purchase at (20%)

Recommended Strategies – Dependant on the region….SMS is ubiquitous even in more remote regions. Mobile web is growing in countries with higher population density, such as South Africa

* Source – Comscore


US –

$88B estimated to be spent via mobile commerce by 2012 in the U.S.

56.2MM mobile users will access social networks from mobile devices by 2013 in the U.S.

620MM mobile search queries are estimated to be performed globally per day by 2012

64% of global mobile data traffic will be video by 2013

Recommended solution is have an end-to-end capability for easy campaign implementation & optimization to produce results.


US-Mobile Couponing

One in Ten Mobile Users Redeem Coupons

eMarketer estimates that nearly 20 million US adults will redeem a mobile coupon this year, including coupons or codes received via SMS, applications and mobile web browsers; quick response codes for redemption online or offline; and group buying coupons purchased via mobile

By 2013, the number using such coupons will nearly double, and 16.5% of all US adult mobile phone users will redeem a coupon that year

Recommended strategies: end-to-end with display ads linking to mobile optimized experience with follow on marketing solutions.


Velti's Global Solutions


• Subway® is partnering with Velti to develop new and innovative mobile solutions for consumers in all 92 countries where Subway® operates.

• Subway® will be able to connect with consumers at any time, from anywhere from the palm of their hand with access to basic information such menu, nutrition, store locations and in the near future will be able to place orders from the mobile device.

Subway Mobile SolutionsOverview


Subway Mobile SolutionsKey Features

• Store Locator: Easily find nearest Subway locations based on GPS/Zip.

• Menu/Nutrition: Calculate nutritional information on Subway® items.

• Subway® Card: Check and increase balance of Subway® Card.

• Subway® Loyalty Program: Integration with Subway® Loyalty Program

• Gaming/Engagement: Engaging games using ‘Sandwich Builder’ to promote options available via Subway® Menu.

• Email/SMS opt-ins: Building and growing opt-in database of consumers.

• Mobile Ordering: In subsequent phase, consumers will be able to place order and pay from mobile phone and pick up in store.


Subway Mobile SolutionsWhere, When and What Devices

Where AvailableWorld-Wide TimelineQ4 2011: First initial launch (Phase I) of new m.Subway.com which will include Store Locator, Menu/Nutrition, Subway® Card and Subway® Game.

Early Q1 2012: Phase II launch of m.Subway.com which will include integration to backend POS for Subway® locations in USA. Will also include some features of Subway® Loyalty program.

Early 2012: Rollout of mCommerce solutions to major markets (Top 15) across the globe with subsequent rollouts for each additional market through the first six months of 2012.

Devices All mobile devices with mobile browser and rendered specifically for each handset.


Wind Greece, Orascom Group“SMS & Win”

May 2010 – August 2010

Wind extended its successful, long lasting partnership with Velti through the development of the SMS & Win campaign that took place in the summer of 2010.

With every SMS sent to a short code, participants received a free wallpaper of their choice. Everybody won with every SMS along with having the chance to win even bigger prizes, such as:

1 Year of free airtime Every dayA BMW 1 Every single weekand a House of choice for the “big winner" worth up to €150,000)

The campaign’s promotion included many kinds of media exposure in order to reach maximum penetration through:

Three TV commercialsRadio commercialsPress (newspapers, magazines)Leaflets in Wind storesBanner Ad campaigns in Wind websiteDedicated websiteDedicated WAP site

4.6 Million Subscribers!

Wind Greece – “SMS & Win”

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Cross-Operator Egypt“Bara El Manhag”

October 3 – November 27, 2010

The Bara El Manhag, a huge promotional campaign with a “Back to School” theme was the biggest cross-carrier campaign ever ran.

Every participant could win up to 200,000 EGP no matter their mobile network, was successfully carried out by Velti.

Any Mobinil, Vodafone or Etisalat customer, simply, by sending an SMS to a common short code had the chance to win any of the amazing cash prizes below:

Every Day: 20.000 EGP – via drawEvery Week: 20.000 EGP –2 winners – one via draw and one via Top Score Grand prize: 400.000 EGP – for 2 lucky winners that were awarded with 200,000 EGP each by draw!

The campaign was communicated via, radio, press, outdoor, SMS broadcast and system messages.

Cross-Operator Egypt – “Bara El Manhag”

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Armani Exchange – Mobile SMS Community Campaign Overview

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Velti partnered with Armani Exchange back in May 2010 and took over the management of the SMS mobile community further engaging young, progressive professionals who are interested in information on the go

The mobile community provides users with 3 to 4 text alerts over a month with special offers, promotions and information to Armani Exchange’s brand

Velti has additionally run an SMS campaign aiming to increase the mobile community membership by designating keywords and dedicated short codes, as well as special in-store promotions that incentivize users to join and also win a $10 discount on their next purchase

Run for two weeks on February 2011, the mobile promotion aimed to drive additional sign ups to the mobile community as well as incentivize sales.

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Thank you and welcome to the AX community.

AX

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LOVE

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AX


Armani Exchange – Mobile SMS Community Campaign Results & Key Learning

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Velti provides standard mobile analytics via its mGage platform, enabling the successful measurement of the KPIs set as well as the overall campaign results

Velti continues to evaluate the initial goals of the program, observing participant behavior and patterns, encouraging additional registrations, through SMS campaigns like the LOVE campaign run on February 2011

The most successful AX campaign to date was the LOVE keyword campaign increasing the mobile community database significantly in less than a 2 week time span. The AX club will likely venture to Canada and other countries given the popularity and success proven in the US.

25% Mobile Community Increase


Thank YouTrevor Hamilton

VP, Mobile Marketing Solutions

[email protected]+1.646.422.9092

For more info on Velti go to www.velti.com & for details on mGage visit

www.veltimgage.com

Velti OMMA Global NY

Technology

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