Making The Most Of Mobile Now And In The Coming

Making the most of mobile now and in the coming years Thomas Husson Senior Analyst Forrester Research November 25, 2009

Forrester is a key resource during this ti h time off change Data driven insight to explain Data-driven changing consumer behavior Forward-looking F d l ki research h and d analysis to guide decisions and actions Objective advice on the best tools and technologies to adopt Best practices that improve and accelerate project execution 3

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Technographics data offers global reach and consistency European Technographics Est. North American Technographics Est. 1997

1999

Hispanic Technographics Est. 2005

Latin America Technographics Est. 2009

Asia Pacific Technographics Est. 2006

301,000 completed surveys in 17 countries representing over 54% of the world’s population & over 75% of global GDP 4

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Forrester Consulting can help you achieve b ti l best-in-class mobile bil strategy t t • Mobile Strategy Review / Mobile POST – We helped clients better understand the trends in the market and the potential of their own mobile customers – We run workshops to help them brainstorming and evangelizing mobile opportunities internally…and to work with IT people – We reviewed a 2009-2012 mobile roadmap to help clients prioritize mobile investments and select the right vendors – We W defined d fi d a plan l to t integrate i t t mobile bil iin a multi-channel lti h l strategy – We helped clients in prioritizing the globalization of their mobile efforts 5

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Why Japan is ahead of the mobile curve

Daily Online Experiences in Tokyo

5.30pm Pick up a coupon by touching a poster in the subway station. Download a screensaver to customize my phone 6

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It is time to integrate mobile into your strategy.

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Agenda • What's the reality of the mobile market in Spain and in Europe? How is the market likely to evolve in the next five years? • How should your brand define or refine its mobile strategy? • Q&A

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From a consumer perspective, mobile has the potential to become the 24 24*7 7 digital hub

Voice

Organizer

Alerts Banking B ki Payment Commerce

SMS

Health

E mail / MMS E-mail

Ticketing

Communicate

Control Parking

IM / chat

Maps

Social networks

Search

Consume

Create Blogs Pictures

Games Ringtones Vid Video

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TV

Music

Web bro browsing sing News

New entrants are shaking up the mobile ecosystem

The « thanks two billions » story From APPLE App store

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The « magic blue circle » from GOOGLE

Mobile marketing is moving beyond the trial stage

Limited audience

Lack of Lack of strategic interoperable integration in the measurement and marketing mix performance tools

Campaign execution ti complexities

Mobile Marketing Spending Consumers’ uptake of data services

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Growing interest of advertisers

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Growing inventory y and choice of ad formats

Individual, contextual (location-based) (location-based), and behavioral targeting capabilities

Regular usage of mobile services is t ki off taking ff “How frequently do you use the following services?” (at least weekly) 43%

SMS

82% 17%

Li t tto music Listen i

52% 10%

Play games Use search engine

28% 2% 8%

Instant messanging

4% 7%

Email

3% 7%

All mobile phone users 16- to 24-year-olds

Base: 1,423 Spanish users with mobile phones

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Source: European Technographics® Benchmark Survey, Q2 2009 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

New technologies will enable rich inperson mobile bil marketing k ti

Source: GS1 (http://www.gs1.org) Nestlé (http://www.nestle.jp) 13

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Consumers will continue to use mobile in a multichannel lti h l environment i t “Which of the following have you ever used your mobile phone for?”

Base: 944 daily mobile Internet users (multiple responses accepted) Source: European Technographics® Retail, Customer Experience, And Travel Online Survey, 14 Entire Q3 contents 2009 © 2009 Forrester Research, Inc. All rights reserved.

A virtuous mobile internet cycle is kicking off.

0% 70% 64% 61% 58% 45% PC-Internet 60% 54% 39% 50% 40% rate in 1999 46% 35% 50% 42% 35% 38% 30% Let’s 40% step back a little. % of 30% 32% 26% European % PC 30% 25% 22% 25% mobileusers Internet What at20% was as the t e PC C17% internet te et adoption adopt o a decade ago ago? users 20% 17% 11% 13% 15% 10% 6% 10% 0% 5% 0%

2008

2009

2010

2011

2012

2013

2014

Source:Forrester Forrester Research Mobile Forecast, 2009Forecast, to 2014 12/08 (Western Europe) Source: ResearchWestern AccessEuropean and Broadband European 15

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Agenda • What's the reality of the mobile market in Spain and in Europe? How is the market likely to evolve in the next five years? • How should your brand define or refine its mobile strategy? • Q&A

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Companies must think mobile now • Not planning a mobile presence in 2009 is equivalent to refusing to develop an online strategy in 1999 1999. • Don’t “wait and see” — but at least decide on the factors to discuss when implementing a mobile strategy. • If yyour company p y already y has a mobile strategy, gy, revisit it to make sure it is not a siloed approach.

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Mobile start generating direct revenues and offers quick wins

More than 1M$ in 12 weeks 18

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Mobile is not just another channel; it will b id the bridge th digital di it l and d reall worlds ld • Mobile is an extension of the Internet but will differ from the PC Internet. • Mobile phones will become our 24x7 digital assistants, unlike part-time PCs. They will enable “always in my pocket” communication. • Location will become a core enabler of real real-time time marketing offerings. • Mobile offers cross cross-channel channel tracking mechanisms mechanisms.

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The POST method: a systematic approach t d to defining fi i or refining fi i a mobile bil strategy t t

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1 People 1.

Review the Mobile Technographics® Profile of your own target audience.

2. Objectives

Decide on your goals.

3. Strategy

Determine your approach to meet your objectives.

4. Technology

Choose the technologies that will enable you to implement your strategy.

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Know the mobile profile of your own customers t Increasing mobile sophistication

16% 27% 40%

SuperConnecteds

Entertainers

Communicators

14%

Talkers

14%

Inactives

European Mobile Technographics® Profiles

• Use mobile Internet/social networks • Use utilitarian services • Use entertainment services • Play games • Listen to music • Watch TV/video • Use primarily communication services (SMS, MMS, IM, e-mail) • Only O l use voice i

• Do not own a mobile phone

Note: While Inactives, Talkers, and Communicators are distinct, Entertainers and SuperConnecteds overlap. contents © 2009 Forrester Research, Inc. All rights reserved. Source: European Technographics® Benchmark Survey, Q2 2009. 21 Entire

Don’t assume your customers are average mobile users Increasing mobile sophistication

Your brand

Your customers Aged 16/24

Competitor Y Aged 16/24

SuperConnecteds

13%

18%

31%

23%

Entertainers

31%

35%

58%

41%

Communicators

38%

34%

31%

33%

Talkers

14%

12%

1%

4%

Inactives

13%

10%

4%

6%

Note: While Inactives, Talkers, and Communicators are distinct, Entertainers, and Entire contents © 2009 overlap. Forrester Research, Inc. All rights reserved. 22SuperConnecteds Source: European Technographics Benchmark Survey, Q2 2009.

Define and prioritize your objectives Marketing

Revenue generation Cost savings

Customer convenience

Branding

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Discovery

Product evaluation

Purchase

Customer service

Mobile objectives follow overall business objective Let objective. Let’s s start discussing internally IT

Strategy

Marketing

Business Dev

Finance

Evangelize, brainstorm and share outside marketing

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Strategic decisions are multidimensional

REACH

OFFERING

VALUE CHAIN

COMMITMENT

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There is life beyond applications

Native apps

Widgets

Java applications

Mobile Web sites Source: http://google.com/latitude 26

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Engage targeted audiences using new channels h l and d deliver d li your brand b d as a service

PPR’s mobile marketing campaign 27

Unilever’s AXE branded mobile game

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BNP Paribas « Friends’ debts » app

Kraft’s iFood application

Be adamant on the quality of the userexperience

• You rarely get a second chance to make a first impression: don’t damage your brand with a poor-experience • Convenience, C i convenience, i convenience i • There is a life beyond the iPhone and beyond rich media applications

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Key Takeaways • Don’t bet on technologies first: they evolve too quickly and may y not be relevant to yyour target g audiences • Don’t based you marketing approach and business models on supposedly average metrics • Obtain consensus on mobile objectives that serve your company goals • Plan realistically ahead and set the right KPIs to measure the ROI off mobile bil • Be adamant on the quality of the user experience not to damage your brand 29

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Agenda • What's the reality of the mobile market in Spain and in Europe? How is the market likely to evolve in the next five years? • How should your brand define or refine its mobile strategy? • Q&A

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Muchas Gracias Thomas Husson th [email protected] @f t Blog: http://blogs.forrester.com/consumer_product_strategy http://twitter.com/Thomas_Husson

Francisco Sebastian Spain Country Manager [email protected] 606 955 733 31

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