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                                       Mobile Advertising - 2020 Vision


Table of Contents                      Introduction
1: Introduction
2: Mobile advertising in 2020          Is it thought leadership or merely wishful thinking to be writing about what mobile advertising
3: Advertisers and Media Agencies      will have become in 2020? Currently mobile advertising is an embryonic market and the
4: Consumers                           industry has just embarked on defining industry standards, developing business models and
5: Mobile Operators                    providing limited information about the consumers to ensure a targeted user experience which
6: Technology                          delivers value1. The road to 2020 is fraught with unknown hazards and challenges but the
7: 2020 equals mobile directed
                                       potential of mobile advertising remains clear. The alliance between Acision and OgilvyOne,
   advertising
                                       which combines the global leaders in mobile messaging and interactive marketing, believes
                                       that capturing and sharing this vision will act as a catalyst towards the evolution of mobile
                                       advertising.
   Who is the target audience for
   this paper?                         Predicting the future is not an exact science. Who would have forecasted that VHS would be
   1. Operators embarking on a         the market winner in the battle of home video recording in the 1970s? Betamax was reputedly
      mobile advertising strategy      a much better technology. But it was the whole product offering from VHS which was more
   2. Brands/Advertisers wanting       convincing – there was a bigger choice of hardware at a lower cost, the tapes themselves were
      to engage more effectively       cheaper and more widely available and as such there were more movies to rent. Ultimately the
      with their consumers             consumers, or individuals, made the decision. The VHS example highlights the need for an
   3. Industry players who can         efficient technology solution supporting a complete ecosystem, a clear value proposition for
      help shape the future of         indivduals and the need to continually evolve the system. The same will be true for mobile
      mobile advertising
                                       advertising.

                                       The journey towards 2020 is one which is characterized by transformation. The three main areas
                                       affected are:

                                       1. The advertising agency will transform from one which is industry led, namely by the brands,
                                          to one where the individual is brought more into the communication process.
  Acision is a member of the Mobile
  Marketing Association and provides   2. The consumers will evolve from those having advertisements pushed to them, to being able to
  communication solutions to over
                                          select what information is allowed to reach them.
  300 network operators and service
  providers globally, with technical
                                       3. Different types of mobile operator will be formed. Operators will no longer be the linking
  expertise in messaging and real-
  time data extraction.
                                          pin we know now who are able to provide all the infrastructure, services and want to control
                                          the end user experience, competing with each other. There will be operators who decide
                                          to specialize purely in the infrastructure and will provide this capability to those who have
                                          decided to focus solely on the services.

  OgilvyOne is a global leader in      Mobile advertising in 2020 will be mobile directed advertising. It is about collaboration and
  interactive marketing, and has 115   individual control. The mobile device will enable the individuals to decide where, when and on
  offices in 56 countries. OgilvyOne
                                       what screen they would like to receive their chosen advertisement. Advertising will move away
  is a subsidiary of WPP, one of the
  world’s largest communications       from creating campaigns which are forced upon particular consumer categories and instead will
  services groups. OgilvyOne is a      transform to engage in constant conversations, where both parties participate.
  top 5 interactive agency based on
  aggregated revenue and has 150
  digital specialist companies.        1
                                           More information can be found in the Acision whitepaper located on our website:
                                           “Only the mobile operator can transform mobile advertising beyond its current nascent state.”   1
Mobile Advertising - 2020 Vision




                                   Mobile advertising in 2020
   What is the futuristic
   landscape and why is mobile     Mobile advertising in 2020 will be mobile directed advertising which is selected and chosen by
   advertising in 2020 much
   more than targeting billions    the individuals themselves. Individuals and not consumers; consumers remain a group or type
   of pre-qualified consumers?     of person which conforms to a pre-defined segment by the brands. Individuals, on the other
                                   hand, are fully independent, they may let you know them or part of them but they will never let
                                   a brand own them. It is the individual who will be the pivotal player in the mobile advertising
                                   domain of the future and the mobile device will be a technological representation of them.
                                   The mobile phone will transform from being seen as a new personalized channel to receive
                                   advertisements on; to a device which will orchestrate where, when and how selected advertiser’s
                                   information will be delivered.

                                   The mobile device will evolve into a data conductor. What was pure fiction in the film Minority
                                   Report where electronic billboards are personalised as an individual is in close proximity to them
                                   may well be possible by using the technology contained within your mobile device. Near Field
                                   Communication2 (NFC) allows a rudimentary interpretation of this already and as we progress
                                   to 2020 this will become more advanced.




                                   Instead of the billboard changing as an individual walks past, a personalised, relevant advertisement
                                   will be sent directly to their mobile device. The car will have different meanings depending on the
                                   individual’s preferences – for one it could mean purchase, another it could be rental or finally it may
                                   mean accessorise.



                                   The time when humans become the ultimate mobile device through integrated chip technology
                                   in the body is hopefully a long way off yet.

                                   However, what will change in 2020 is that it will no longer be the advertisers and media agencies
                                   deciding which consumer segment to target via which channels based on their demographic and
                                   usage profiles. Instead we will see individuals identifying brands which match their own needs
                                   or interests and granting them permission to reach them. In many ways, each individual creates
                                   their own digital cog which powers the selection of brand information. It will be much more
                                   than advertisements which, if they match the digital cog, can be received.




                                   2
                                       Near Field Communication or NFC, is a short-range high frequency wireless communication
                                       technology which enables the exchange of data between devices.                                        2
Mobile Advertising - 2020 Vision




                                   Successful brands in 2020 will be those which collaborate with individuals, include them in
                                   communities and rating of their products or services. Converting advertisements into purchases
                                   will be driven more by peer advocacy than the power of an advertising campaign. How have
                                   my immediate friends and family rated this? Or in a broader context how does my wider online
                                   community rate this? Building communities and interaction will be the underlying attributes of
                                   this transformation from merely campaigns to a constant conversation. It is worth noting that
                                   advertisers in this context are more than today’s global brand names. They can be small, medium
                                   enterprises or even individuals themselves through community based peer advertising: the e-Bay
                                   of the future.




                                   Technology developments will enable day to day objects to become hyper-connected. The interactive
                                   table in the bar will provide local advertising for taxi companies, offer integrated mobile payment
                                   mechanisms and individual promotions.




                                   Advertisers and Media Agencies
   What does it mean for
   the key stakeholders and        From a mobile advertising point of view, brands/advertisers are yet to come to the party. Within
   what characteristics will
   become apparent?
                                   their budget for advertising there is no separate line item for mobile. It is dependent on the
                                   individual advertiser (or their media agency) as to whether they are innovative and daring enough
                                   to utilise some of the online internet budget and divert that to mobile advertising.

                                   According to Informa Telecoms & Media, Proctor & Gamble, the world’s largest advertiser,
                                   believed to be spending around USD 6 billion on advertising in 2008, has a meagre USD 10
                                   million allocated for mobile advertising. That is only 0.17% of its overall advertising budget.



                                   Metrics and Measurement

                                   Hesitation by advertisers to fully participate in mobile advertising is in part due to the lack of
                                   measurement and metrics to prove the effectiveness of a campaign. For mobile advertising to
                                   deliver on its promise, it is essential that advertisers can be provided with reassurance of real
                                   measurement metrics; not only as to the relevancy of pre-qualification for the consumer target
                                   audience but also as to the effectiveness of the campaign itself. In the advertising world the
                                   required metrics revolve around reach, frequency, relevancy and ROI.


                                                                                                                                         3
Mobile Advertising - 2020 Vision




                                   Work is underway by the GSMA and other organisations to establish industry agreed metrics for
                                   the mobile channel. Additionally it is important that the mobile metrics can be easily included
                                   into the advertisers’ dashboard as to how that channel performs in comparison to other more
                                   traditional ones which they are used to. Having separate reports and information will only
                                   compound mobile’s segregation.

                                   With the establishment of industry agreed metrics, the next development along the way to 2020
                                   will be that Reach will be overtaken in terms of Value for advertising measurement. Currently
                                   the number of people or Reach achieved by a campaign is one of the key success criteria. In time
                                   this will change to the Value of the advertisement. This Value could be the ratio of converted
                                   purchases or the like.




                                   Interaction between the devices (TV and mobile, for instance) can increase the purchase
                                   conversion rate.


                                   Preferences

                                   In order to achieve this transition from Reach to Value it is essential that more is known about
                                   the audience. Here we will see a greater reliance on preferences. Profiles will be garnered
                                   through a wider dialogue with the end users. Although some information can be gathered
                                   from the operator’s network and existing knowledge databases this needs to be supplemented.
                                   Information about someone’s preferences and desires provides a window into their purchasing
                                   behaviour.

                                   Although someone may like cars it may well be only a particular brand of car. Knowing this
                                   information is critical. These links between individuals and their preferred brands can be called
                                   vaporframes3. They are the invisible links that connect the brands we live with together. With
                                   vaporframes it becomes really clear where one’s dependencies and loyalties lie.



                                   Facilitated advertising

                                   The greater the understanding about individual’s preferences and way of life will translate
                                   into a deeper relationship between the brands and the individual. Facilitated advertising is
                                   breaking down the barriers between the brands and the individuals who will purchase and

                                   3
                                       The concept of a vaporframe is defined in “The Communication Ideal” which is available to download:
                                       http://www.everysingleoneofus.com/communication-ideal                                                 4
Mobile Advertising - 2020 Vision




                                   use the products/services. Some brands are already making this step through the creation of
                                   communities. Nike, for instance, encourages this interaction and will benefit from the closer
                                   relationship giving it an edge going forward with its product evolution and advertising.



                                   The Advertising Agency

                                   The advertising agency has always added the greatest value when it offers deep insight into the
                                   composition, needs and motivation of a specific target audience.

                                   As audiences have fragmented, the channels to reach them have multiplied, and digital
                                   technology has increased potential to gather ever-deeper levels of individual data. As well as
                                   offering the means to measure the effectiveness of communication efforts as never before.

                                   For agencies this new era means dramatic change. Ideas become more important than specific
                                   media channels, and need to be capable of flourishing in many different media contexts.
                                   Pushing messages out to unwilling consumers is replaced with producing ideas and content that
                                   individuals will seek out and incorporate into their own world. Agencies need to be constantly
                                   on the look out for new ways for the brands they represent to be relevant and helpful to their
                                   target customers. The primary responsibility of the agency is to articulate a big idea or even
                                   better a big ideaLTM4 that a brand can stand for and to use this common ground with individuals
                                   to build a trusted relationship.



                                   Collaborative advertising
   Successful advertisers will
   be those who build a big        True collaborative advertising can now flourish. The barriers between the brands and the
   ideaL™ that a brand can         individuals who use their product/services in their day-to-day lives have now been blurred.
   stand for and use to build
   a trusted relationship          Brands will be shaped by the intrinsic needs of the individuals instead of merely testing or
   with individuals through        sampling their ideas on a focus group. Here the individuals lead the way.
   engagement and collaboration.
                                   The reason behind the drive towards this is that when people are part of the commercial
                                   conversation, the effectiveness is undeniably greater. This is a radical step but one which will
                                   happen gradually over time. Advertisers which currently focus their brand perception and how
                                   to market it will be naturally worried about what may happen to their brand by allowing this
                                   open collaboration to take place. However, in terms of brand perception in the market place,
                                   understanding advocacy amongst peers and user experience enhancement opportunities would
                                   appear to considerably benefit from this collaborative type of approach.



                                   Consumers

                                   It is broad consumer segments which epitomise mobile advertising today. The foundation for
                                   mobile advertising is that it should be targeted and relevant. After-all the advertisements are
                                   being received on the end user’s most personal of devices. The ubiquitous nature of mobile
                                   phones, which are always with us and normally always turned on, offers the promise of being
                                   able to send targeted advertisements based on behavioural preferences, usage patterns and
                                   location, wherever we are and at any time of the day.

                                   Currently this promise is not being met. The information needed to be able to provide this
                                   level of targeting is fragmented. In many ways mobile advertising today is semi-targeted. That

                                   4
                                       Ogilvy’s philosophy of the big ideaL™ is where all brand communications are part of an overarching
                                       aspirational thought. This provides consistency in positioning and tone while allowing maximum creative
                                       freedom for the individual disciplines that express the brand. Big Ideals are platforms for big ideas.    5
Mobile Advertising - 2020 Vision




                                   is to say that there is a level of information being gathered be it from behavourial patterns or
                                   supplemented through interaction.



                                   Global Opt-in

                                   The evolution of preference management will resolve this over time. An accelerator of this will
                                   be the nature of mobile advertising. Currently this varies across the world. Some countries
                                   require individuals to opt-in to receive mobile advertising and others have the opposite view that
                                   unless people opt-out advertisements will be sent. Our prediction is that the opt-in model will
                                   prevail globally.

                                   It is through the agreement to receive advertisements that the supplementary information needed
                                   to make the advertisements more relevant and targeted can be achieved. The opt-in scheme
                                   provides individuals with more possibility to control their mobile advertising experience.



                                   Peer Advocacy

                                   There will be a greater involvement between advertisers and consumers. One manifestation of
                                   this, which will be led very much by individuals, is that of peer advocacy. This is something
                                   which has been driven by the social networking sites.

                                   There is nothing more powerful in advertising terms as personal recommendation. One can
                                   recommend to another that something should be used, engaged with or bought as easily as
                                   recommending that should be avoided. This concept is already gaining momentum in the
                                   online world, for instance, most people will check Trip Advisor before booking into an unknown
                                   hotel to see what other people have said about the establishment. This is very powerful, even
                                   comments from a total stranger can affect your decision.

                                   Peer advocacy in the future will develop to include monetizing these recommendations. It
                                   will progress beyond good citizenship to share recommendations or cautionary notes into a
                                   mechanism which is rated. The influencers will be incentivised through financial rewards, for
                                   example, where they have clearly contributed towards a converted purchase.

                                   Going forward, people’s buying behaviour will be driven not only by the effectiveness of the
                                   advertisement but by the peer advocacy surrounding that particular item or brand.



                                   Brands targeted
   Mobile advertising in 2020
   for the consumer is very        The transformation from brand led advertising will be driven by individuals selecting what brand
   much about the individual       information is allowed to reach them.
   being in control of their
   own user experience.
                                   Each individual will have a digital cog which matches the needs of the individual to their brand
                                   affiliation in their vaporframe. This digital cog is essentially the mechanism which controls which
                                   advertisements are received by an individual. In some ways this is advancement on inventory
                                   management but from the individuals’ perspective. The ease to which this digital cog can be
                                   re-adjusted ensures that the brands being targeted have a higher propensity to match the ever
                                   changing needs of the individual.

                                   It is this pulling of specific marketing material which will define the future of mobile advertising.



                                                                                                                                       6
Mobile Advertising - 2020 Vision




                                   Serendipity

                                   Humans can be creatures of habit. It is easy to get stuck in a rut and not be open to new ideas or
                                   solutions. By having a future where individuals select only the brands that they are familiar with
                                   or ones which their peers have recommended could stifle innovation in the market. How will
                                   new comers to the market ever be included in a vaporframe or being included in a digital cog to
                                   be requested to send marketing material?

                                   There has to be an element of serendipity. Admittedly this should not develop into a futuristic
                                   name for spam. As part of the digital cog there needs to be an element which captures interests
                                   or recommendations from others which can expand to your vaporframe. Instead of a friend
                                   waiting to see you or call you to tell you about a new experience or product which they have
                                   found, they should be able to immediately push this information to you which is then accessible
                                   via your mobile device.

                                   It is all about developing levels of trust and having the power to grant access to either friends or
                                   even allowing some trusted brands to include information into the recommendations area.




                                   Recommendations can come from trusted advertisers (for instance your supermarket) either onto
                                   a household screen (such as the front of a fridge) or directly to your mobile device.



                                   Mobile advertising in 2020 is very much about the individual being in control of their own user
                                   experience through collaboration and recommendations in terms of peer advocacy.



                                   Mobile Operators

                                   Currently from a mobile operator perspective mobile advertising offers the promise of a new
                                   revenue stream. Mobile advertising for the operators is still a new phenomenon currently. Some
                                   mobile operators are gingerly entering the market place with predominately single channel
                                   solutions focusing on for instance WAP banners or SMS push campaigns. There are still many
                                   operators for whom mobile advertising is not on their radar screen. They are currently immersed
                                   in dealing with the exponential growth of mobile subscribers and therefore quality of service and




                                                                                                                                          7
Mobile Advertising - 2020 Vision




                                   availability of their core network services is more pressing. However, for other operators who are
                                   facing declining ARPU in countries where the battle to market share has been fought and mobile
                                   penetration has exceeded or is almost exceeding 100% their focus has been turned to other ways
                                   to generate revenue. Here mobile advertising becomes a consideration.



                                   Ad-supported models

                                   As well as the promise of providing a new revenue stream it was touted that mobile advertising
                                   would allow operators to offer new services free to their subscribers, with advertising subsidising
                                   that cost. Although this may happen in a limited number of cases, it is more likely that the
                                   future of mobile advertising will allow for ad-supported models instead of completely ad-funded
                                   scenarios. This is equally relevant for social networking; more will be available via an ad-
                                   supported model.

                                   Currently the revenue flowing over the mobile channel in terms of advertising dollars is still
                                   very small compared to the operators other revenue sources, for instance, SMS. According
                                   to eMarketer, in 2007 the global spending on mobile advertising totalled USD 2.7 billion.
                                   Although Informa Telecoms & Media predicts this is set to increase to become a USD 12 billion
                                   industry by 2013 there will not be sufficient revenue generated by mobile advertising for ad-
                                   funded models to become the norm.



                                   Inventory
   Mobile advertising in 2020
   offers both advertisers         In order to secure any mobile advertising revenue mobile operators need to be able to provide
   and individuals a more
                                   inventory to the brands and media agencies. For advertisers to be able to select the target
   holistic experience.
                                   audience the operators need to provide information about their subscribers (inventory).

                                   However, for effective targeting to be possible, especially relating to pre-paid subscribers this
                                   additional information will need to be supplemented. This can be gleaned through subscriber
                                   portals, opt-in schemes or through dialogues to gain information about preferences.

                                   Despite enriching this information it can be argued by the brands that information collated
                                   across a country would be more valuable than having data from each of the individual national
                                   operators. Currently media agencies have to negotiate deals with each of the operators instead of
                                   having just a single access to all the mobile users in that particular country.

                                   As we progress down the road to 2020 we will see a shift in this aspect of inventory management.
                                   Firstly we are likely to see mobile operator group wide consolidated inventory becoming
                                   available. Global operators such as Vodafone or Telefonica should be able to collate their
                                   inventory data and have a parameter for country being available.

                                   However, it is the second step which will be more powerful from a brand perspective. Although
                                   we acknowledge that there are global brands, Coca Cola, Nike to name a couple; these brands
                                   do not buy advertising on a global basis. They buy at a national or country level. Therefore it
                                   is when the mobile operators within a particular country are able to consolidate their inventory
                                   across their entire subscriber base that the revenue from mobile advertising will increase
                                   dramatically.




                                                                                                                                         8
Mobile Advertising - 2020 Vision




                                   Operator segmentation

                                   Segmentation will start to take place within the operator domain. In the future we will no
                                   longer have the behemoths which are responsible for all aspects of the mobile service. This
                                   segmentation has already happened in other industries. For instance, in the UK the rail network
                                   has been broken down into different companies who manage the rails and infrastructure to those
                                   which manage the trains and service. The same is true for the airports. No longer does one
                                   single organisation manage the terminals, baggage logistics, catering and planes. In fact there is a
                                   separate company – SITA.aero which manages the entire IT infrastructure.

                                   It is this level of segmentation which be introduced within the mobile operator domain. Some
                                   operators will gravitate towards providing the services whilst others will excel at being the bit
                                   pipe and provide that capability to the service companies. What does that mean for mobile
                                   advertising in 2020?

                                   This operator segmentation should ultimately be a positive transformation for the future of
                                   mobile advertising. It will enable the operators to excel at what they deem to be their core
                                   capabilities. For those concentrating on supplying infrastructure this will mean that their
                                   efforts and budgets can focus on the required technology requirements to make channels such
                                   as broadband or other multimedia rich channels such as IPTV a success. Going forward the
                                   sheer cost involved in rolling out these new technologies may not have to be recouped from
                                   charging the end user more for a particular service but governments may well start funding this
                                   implementation.

                                   The service focused operators will be able to secure the capabilities required for delivering
   Operators will continue         the services at a non exorbitant rate and therefore be allowed to concentrate on establishing
   to play an important role
   in the evolution of mobile      the commercial agreements and seeking new innovative offerings to attract and retain their
   advertising but the scope       subscribers.
   of their roles will change in
   line with their own strategic
   ambitions.
                                   Technology

                                   The majority of these transformations require the supporting technology to advance, without
                                   which mobile advertising in 2020 will not come to fruition.



                                   Network evolution 2.5G to 4G

                                   The 2.5G and 3G networks provide adequate capabilities for the mobile advertising which is
                                   currently in use. However, this isn’t to say that improvements cannot be made. Setting the
                                   user experience aside, the speed at which some data is displayed via the mobile internet is still
                                   sluggish. Therefore the possibilities of the ultimate user experience on IPTV or video on demand
                                   is still limited.

                                   Although it is believed that the future capabilities of wireless are inherent in 3G it requires the
                                   adoption of 4G to make a difference in terms of data speed and hyper connectivity. 4G networks
                                   will be based on Internet protocol (IP), the standard used for sending data over the Internet
                                   and other packet-switching networks. This means that unlike today’s 3G networks, which are
                                   circuit-switched with an overlay of data carrying capabilities, 4G networks will be entirely packet
                                   switched. This will allow 4G networks to deliver data throughput to mobile users as high as 100
                                   megabits per second (Mbps), with, it’s hoped, an evolutionary path to gigabit speeds.



                                                                                                                                       9
Mobile Advertising - 2020 Vision




                                   In addition to the speed, 4G networks will feature a higher level of security than existing wireless
                                   technologies provide and better implementation of quality of service (QoS) techniques for
                                   ensuring smooth flow of time-sensitive data, such as video and voice.

                                   Ultimately with 4G wireless, the user shouldn’t see any difference between the wired or wireless
                                   network, and will have multiple options for connectivity. It is hoped that in-car connectivity,
                                   consumer devices, combination of applications, technology and devices, all of these should act
                                   together. What this means for mobile advertising is potentially momentous.

                                   The hyper-connectivity concept which is all about multiple connections, wire-line and wireless
                                   together within one subscription which is tied to the user not the device or network being
                                   used, allows mobile advertising to easily cross the boundaries between devices. This will allow
                                   us to decide which screen we would like to receive the advertisement on: the mobile device,
                                   the screen on the back of the airline chair, in the game which we are playing or e-book which
                                   we are engrossed in, etc, etc. With the bandwidth being IP, it will mean that the request for
                                   advertisements is from the mobile device but the delivery to the chosen screen will utilise the
                                   most relevant technology. This should provide the underlying requirements for mobile directed
                                   advertising.




                                   Hyper-connectivity will result in mobile advertising being able to easily cross the boundaries
                                   between devices, not limited to only the mobile phone.


                                   Year of mobile

                                   With the introduction of the smart phones, mobiles have already evolved into small PCs from
                                   which you can call, text, surf the web and much more.

                                   There was a lot of speculation that 2009 is the year of the mobile. From our point of view it can
                                   only be the year of the mobile if and when users do more with their mobile than anything else.
                                   And here this means the majority of the population does more with their mobile not just the
                                   tech savvy few with the high end devices. It is when the mobile device is truly used for all the
                                   touch points in your life.

                                   For the year of mobile to dawn essential capabilities such as full payment integration needs to
                                   have taken place. This will require integration with the credit card facilities and other payment
                                   mechanisms. Other evolutions such as integration with TVs and other media devices to allow

                                                                                                                                       10
Mobile Advertising - 2020 Vision




                                   remote control of viewing or recording options whilst on the move and even the ability to use
                                   the mobile device as a projector in its own right. The true year of mobile will demand that the
                                   mobile phone transforms to a mobility device with telephony as a mere part of its full capabilities
                                   instead of the current embodiment which is telephony and peripheral functionality.

                                   Interestingly the year of the mobile will also signify the death of the mobile phone as the
                                   majority of us currently know it. And from a mobile advertising perspective this blurs the
                                   boundaries between producing different creative and images for the different channel campaigns.



                                   Tipping point of speed

                                   These boundaries will continue to blur with the advancement of data speed. 4G networks are
                                   reputed to allow speeds as high as 100 megabytes per sec (Mbps). However, this will pale into
                                   insignificance when the Terabyte per second (TBp/s) is unleashed onto the general public.

                                   This is an initiative which CERN (European Organisation for Nuclear Research) is progressing.
                                   It will take time before this is readily available in a commercial environment – the average take
                                   up rate is at least 8 – 10 years.

                                   However, when this is a viable option then the scope of what can be achieved for mobile
                                   advertising over mobility devices is immense. There will be no latency on mobile devices which
                                   will result in a level playfield as far as creating and delivering high resolution adverts to all screens
                                   – mobile or fixed.



                                   Mobile directed advertising

                                   On the road to 2020 the mobile phone will have transformed into a mobility device which is
                                   even more indispensable. The mobility device will be a multi-purpose device which provides the
                                   technological representation of us. The ever sophisticated mobile chips will communicate with
                                   other hyper connected devices the specific individual requirements held in the digital cog. This
                                   data conductor could be described as Life’s remote control.



                                   The advertising will be directed by the mobility device. By this we mean that instead of
                                   advertisements being pushed via a particular mobile channel (e.g.: WAP banners, SMS or MMS)
                                   that the advertisements are directed to the chosen screen. The hyper connectivity should enable
                                   advertisements to be directed from a mobile screen for instance to the in-car computer screen or
                                   TV screen whilst you’re on a plane, e-book, etc.




                                                                                                                                          11
Mobile Advertising - 2020 Vision




                                   Mobile directed advertising allows the individual to select the screen
                                   to which the advertisement is delivered.




                                   2020 equals mobile directed advertising

                                   Although mobile advertising is currently an embryonic market its potential remains clear.
                                   Mobile advertising will continue to evolve, less segregated from the other forms of traditional
                                   advertising and will transform into mobile directed advertising.

                                   The individual will pull mobile marketing information from the selected brands instead of those
                                   brands pushing semi-targeted advertisements out to an unsuspecting public. They will decide
                                   on which of the many screens in their life the advertisements will be directed to, using their
                                   mobile device. Advertisers who openly embrace the individuality of their consumers and invite
                                   them to actively participate will flourish. Mobile operators will segment allowing for companies
                                   to focus on their core competencies be it infrastructure providers which supply the capabilities
                                   for advertising to be delivered with the required quality of service or service providers which
                                   concentrate on the enriched offerings which an ad-supported model can enable.

                                   The end result is that mobile directed advertising in 2020 will be more collaborative with the
                                   individual in control of their own advertising experience. As with VHS, the people will decide
                                   what will become successful.


                                      Implications for Marketers:
                                     1. Mobile is going to be a significant
                                        media channel.
                                     2. Early adopters will benefit from low
                                        cost experimentation and first mover
                                        advantage.
                                     3. Mobile advertising is not simply an
                                        extension of other media plans - it
                                        requires a different mindset, a distinct
                                        process and new metrics.
                                     4. New forms or collaboration intra-
                                        company and across company are both
                                        possible and necessary in the emerging
                                        mobile space.
                                     5. The cost of entry is currently low.
                                                                                                                                     12
Mobile Advertising - 2020 Vision




                                       Implications for Marketers:                                               Implications for Operators:
                                                                                                                1. Mobile advertising can unlock new
                                      1. Mobile is going to be a significant                                       revenue.
                                         media channel.
                                                                                                                 2. Inventory is a valuable asset for both
                                                                                                                    mobile advertising and own base
                                      2. Early adopters will benefit from low                                       marketing activities.
                                         cost experimentation and first mover
                                         advantage.                                                              3. Uptake of mobile advertising will
                                                                                                                    increase where Operators are able to
                                                                                                                    provide an integrated ability to access
                                      3. Mobile advertising is not simply                                           their inventory by all parties.
                                         an extension of other media plans
                                                                                                                 4. Increase subscriber loyalty by
                                        - it requires a different mindset, a
                                                                                                                    providing relevant and targeted
                                         distinct process and new metrics.
                                                                                                                    promotions.

                                                                                                                 5. Reward your subscribers for
                                      4. New forms or collaboration intra-                                          maintaining their profiles -increasing
                                         company and across company are                                             the value of your inventory as well
                                         both possible and necessary in the                                         as ensuring their user experience is
                                         emerging mobile space.                                                     enriched.

                                                                                                                 6. Identify your strategic ambitions in
                                      5. The cost of entry is currently low.                                        relation to the mobile advertising
                                                                                                                    value chain.




                                   Copyright © Acision BV 2007 - 2009
                                   All rights reserved. This document is protected by international copyright law and may not be reprinted, reproduced, copied or utilised in
                                   whole or in part by any means including electronic, mechanical, or other means without the prior written consent of Acision BV.


                                   Whilst reasonable care has been taken by Acision BV to ensure the information contained herein is reasonably accurate, Acision shall not,
                                   under any circumstances be liable for any loss or damage (direct or consequential) suffered by any party as a result of the contents of this
                                   publication or the reliance of any party thereon or any inaccuracy or omission therein. The information in this document is therefore
                                   provided on an “as is” basis without warranty and is subject to change without further notice and cannot be construed as a commitment
                                   by Acision BV.


                                   The products mentioned in this document are identified by the names, trademarks, service marks and logos of their respective companies
                                   or organisations and may not be used in any advertising or publicity or in any other way whatsoever without the prior written consent of
                                   those companies or organisations and Acision BV.




                                                                                                                                                                              13

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Mobile Advertising 2020 Vision from Ogilvy and Acision

  • 1. White Paper Mobile Advertising - 2020 Vision Table of Contents Introduction 1: Introduction 2: Mobile advertising in 2020 Is it thought leadership or merely wishful thinking to be writing about what mobile advertising 3: Advertisers and Media Agencies will have become in 2020? Currently mobile advertising is an embryonic market and the 4: Consumers industry has just embarked on defining industry standards, developing business models and 5: Mobile Operators providing limited information about the consumers to ensure a targeted user experience which 6: Technology delivers value1. The road to 2020 is fraught with unknown hazards and challenges but the 7: 2020 equals mobile directed potential of mobile advertising remains clear. The alliance between Acision and OgilvyOne, advertising which combines the global leaders in mobile messaging and interactive marketing, believes that capturing and sharing this vision will act as a catalyst towards the evolution of mobile advertising. Who is the target audience for this paper? Predicting the future is not an exact science. Who would have forecasted that VHS would be 1. Operators embarking on a the market winner in the battle of home video recording in the 1970s? Betamax was reputedly mobile advertising strategy a much better technology. But it was the whole product offering from VHS which was more 2. Brands/Advertisers wanting convincing – there was a bigger choice of hardware at a lower cost, the tapes themselves were to engage more effectively cheaper and more widely available and as such there were more movies to rent. Ultimately the with their consumers consumers, or individuals, made the decision. The VHS example highlights the need for an 3. Industry players who can efficient technology solution supporting a complete ecosystem, a clear value proposition for help shape the future of indivduals and the need to continually evolve the system. The same will be true for mobile mobile advertising advertising. The journey towards 2020 is one which is characterized by transformation. The three main areas affected are: 1. The advertising agency will transform from one which is industry led, namely by the brands, to one where the individual is brought more into the communication process. Acision is a member of the Mobile Marketing Association and provides 2. The consumers will evolve from those having advertisements pushed to them, to being able to communication solutions to over select what information is allowed to reach them. 300 network operators and service providers globally, with technical 3. Different types of mobile operator will be formed. Operators will no longer be the linking expertise in messaging and real- time data extraction. pin we know now who are able to provide all the infrastructure, services and want to control the end user experience, competing with each other. There will be operators who decide to specialize purely in the infrastructure and will provide this capability to those who have decided to focus solely on the services. OgilvyOne is a global leader in Mobile advertising in 2020 will be mobile directed advertising. It is about collaboration and interactive marketing, and has 115 individual control. The mobile device will enable the individuals to decide where, when and on offices in 56 countries. OgilvyOne what screen they would like to receive their chosen advertisement. Advertising will move away is a subsidiary of WPP, one of the world’s largest communications from creating campaigns which are forced upon particular consumer categories and instead will services groups. OgilvyOne is a transform to engage in constant conversations, where both parties participate. top 5 interactive agency based on aggregated revenue and has 150 digital specialist companies. 1 More information can be found in the Acision whitepaper located on our website: “Only the mobile operator can transform mobile advertising beyond its current nascent state.” 1
  • 2. Mobile Advertising - 2020 Vision Mobile advertising in 2020 What is the futuristic landscape and why is mobile Mobile advertising in 2020 will be mobile directed advertising which is selected and chosen by advertising in 2020 much more than targeting billions the individuals themselves. Individuals and not consumers; consumers remain a group or type of pre-qualified consumers? of person which conforms to a pre-defined segment by the brands. Individuals, on the other hand, are fully independent, they may let you know them or part of them but they will never let a brand own them. It is the individual who will be the pivotal player in the mobile advertising domain of the future and the mobile device will be a technological representation of them. The mobile phone will transform from being seen as a new personalized channel to receive advertisements on; to a device which will orchestrate where, when and how selected advertiser’s information will be delivered. The mobile device will evolve into a data conductor. What was pure fiction in the film Minority Report where electronic billboards are personalised as an individual is in close proximity to them may well be possible by using the technology contained within your mobile device. Near Field Communication2 (NFC) allows a rudimentary interpretation of this already and as we progress to 2020 this will become more advanced. Instead of the billboard changing as an individual walks past, a personalised, relevant advertisement will be sent directly to their mobile device. The car will have different meanings depending on the individual’s preferences – for one it could mean purchase, another it could be rental or finally it may mean accessorise. The time when humans become the ultimate mobile device through integrated chip technology in the body is hopefully a long way off yet. However, what will change in 2020 is that it will no longer be the advertisers and media agencies deciding which consumer segment to target via which channels based on their demographic and usage profiles. Instead we will see individuals identifying brands which match their own needs or interests and granting them permission to reach them. In many ways, each individual creates their own digital cog which powers the selection of brand information. It will be much more than advertisements which, if they match the digital cog, can be received. 2 Near Field Communication or NFC, is a short-range high frequency wireless communication technology which enables the exchange of data between devices. 2
  • 3. Mobile Advertising - 2020 Vision Successful brands in 2020 will be those which collaborate with individuals, include them in communities and rating of their products or services. Converting advertisements into purchases will be driven more by peer advocacy than the power of an advertising campaign. How have my immediate friends and family rated this? Or in a broader context how does my wider online community rate this? Building communities and interaction will be the underlying attributes of this transformation from merely campaigns to a constant conversation. It is worth noting that advertisers in this context are more than today’s global brand names. They can be small, medium enterprises or even individuals themselves through community based peer advertising: the e-Bay of the future. Technology developments will enable day to day objects to become hyper-connected. The interactive table in the bar will provide local advertising for taxi companies, offer integrated mobile payment mechanisms and individual promotions. Advertisers and Media Agencies What does it mean for the key stakeholders and From a mobile advertising point of view, brands/advertisers are yet to come to the party. Within what characteristics will become apparent? their budget for advertising there is no separate line item for mobile. It is dependent on the individual advertiser (or their media agency) as to whether they are innovative and daring enough to utilise some of the online internet budget and divert that to mobile advertising. According to Informa Telecoms & Media, Proctor & Gamble, the world’s largest advertiser, believed to be spending around USD 6 billion on advertising in 2008, has a meagre USD 10 million allocated for mobile advertising. That is only 0.17% of its overall advertising budget. Metrics and Measurement Hesitation by advertisers to fully participate in mobile advertising is in part due to the lack of measurement and metrics to prove the effectiveness of a campaign. For mobile advertising to deliver on its promise, it is essential that advertisers can be provided with reassurance of real measurement metrics; not only as to the relevancy of pre-qualification for the consumer target audience but also as to the effectiveness of the campaign itself. In the advertising world the required metrics revolve around reach, frequency, relevancy and ROI. 3
  • 4. Mobile Advertising - 2020 Vision Work is underway by the GSMA and other organisations to establish industry agreed metrics for the mobile channel. Additionally it is important that the mobile metrics can be easily included into the advertisers’ dashboard as to how that channel performs in comparison to other more traditional ones which they are used to. Having separate reports and information will only compound mobile’s segregation. With the establishment of industry agreed metrics, the next development along the way to 2020 will be that Reach will be overtaken in terms of Value for advertising measurement. Currently the number of people or Reach achieved by a campaign is one of the key success criteria. In time this will change to the Value of the advertisement. This Value could be the ratio of converted purchases or the like. Interaction between the devices (TV and mobile, for instance) can increase the purchase conversion rate. Preferences In order to achieve this transition from Reach to Value it is essential that more is known about the audience. Here we will see a greater reliance on preferences. Profiles will be garnered through a wider dialogue with the end users. Although some information can be gathered from the operator’s network and existing knowledge databases this needs to be supplemented. Information about someone’s preferences and desires provides a window into their purchasing behaviour. Although someone may like cars it may well be only a particular brand of car. Knowing this information is critical. These links between individuals and their preferred brands can be called vaporframes3. They are the invisible links that connect the brands we live with together. With vaporframes it becomes really clear where one’s dependencies and loyalties lie. Facilitated advertising The greater the understanding about individual’s preferences and way of life will translate into a deeper relationship between the brands and the individual. Facilitated advertising is breaking down the barriers between the brands and the individuals who will purchase and 3 The concept of a vaporframe is defined in “The Communication Ideal” which is available to download: http://www.everysingleoneofus.com/communication-ideal 4
  • 5. Mobile Advertising - 2020 Vision use the products/services. Some brands are already making this step through the creation of communities. Nike, for instance, encourages this interaction and will benefit from the closer relationship giving it an edge going forward with its product evolution and advertising. The Advertising Agency The advertising agency has always added the greatest value when it offers deep insight into the composition, needs and motivation of a specific target audience. As audiences have fragmented, the channels to reach them have multiplied, and digital technology has increased potential to gather ever-deeper levels of individual data. As well as offering the means to measure the effectiveness of communication efforts as never before. For agencies this new era means dramatic change. Ideas become more important than specific media channels, and need to be capable of flourishing in many different media contexts. Pushing messages out to unwilling consumers is replaced with producing ideas and content that individuals will seek out and incorporate into their own world. Agencies need to be constantly on the look out for new ways for the brands they represent to be relevant and helpful to their target customers. The primary responsibility of the agency is to articulate a big idea or even better a big ideaLTM4 that a brand can stand for and to use this common ground with individuals to build a trusted relationship. Collaborative advertising Successful advertisers will be those who build a big True collaborative advertising can now flourish. The barriers between the brands and the ideaL™ that a brand can individuals who use their product/services in their day-to-day lives have now been blurred. stand for and use to build a trusted relationship Brands will be shaped by the intrinsic needs of the individuals instead of merely testing or with individuals through sampling their ideas on a focus group. Here the individuals lead the way. engagement and collaboration. The reason behind the drive towards this is that when people are part of the commercial conversation, the effectiveness is undeniably greater. This is a radical step but one which will happen gradually over time. Advertisers which currently focus their brand perception and how to market it will be naturally worried about what may happen to their brand by allowing this open collaboration to take place. However, in terms of brand perception in the market place, understanding advocacy amongst peers and user experience enhancement opportunities would appear to considerably benefit from this collaborative type of approach. Consumers It is broad consumer segments which epitomise mobile advertising today. The foundation for mobile advertising is that it should be targeted and relevant. After-all the advertisements are being received on the end user’s most personal of devices. The ubiquitous nature of mobile phones, which are always with us and normally always turned on, offers the promise of being able to send targeted advertisements based on behavioural preferences, usage patterns and location, wherever we are and at any time of the day. Currently this promise is not being met. The information needed to be able to provide this level of targeting is fragmented. In many ways mobile advertising today is semi-targeted. That 4 Ogilvy’s philosophy of the big ideaL™ is where all brand communications are part of an overarching aspirational thought. This provides consistency in positioning and tone while allowing maximum creative freedom for the individual disciplines that express the brand. Big Ideals are platforms for big ideas. 5
  • 6. Mobile Advertising - 2020 Vision is to say that there is a level of information being gathered be it from behavourial patterns or supplemented through interaction. Global Opt-in The evolution of preference management will resolve this over time. An accelerator of this will be the nature of mobile advertising. Currently this varies across the world. Some countries require individuals to opt-in to receive mobile advertising and others have the opposite view that unless people opt-out advertisements will be sent. Our prediction is that the opt-in model will prevail globally. It is through the agreement to receive advertisements that the supplementary information needed to make the advertisements more relevant and targeted can be achieved. The opt-in scheme provides individuals with more possibility to control their mobile advertising experience. Peer Advocacy There will be a greater involvement between advertisers and consumers. One manifestation of this, which will be led very much by individuals, is that of peer advocacy. This is something which has been driven by the social networking sites. There is nothing more powerful in advertising terms as personal recommendation. One can recommend to another that something should be used, engaged with or bought as easily as recommending that should be avoided. This concept is already gaining momentum in the online world, for instance, most people will check Trip Advisor before booking into an unknown hotel to see what other people have said about the establishment. This is very powerful, even comments from a total stranger can affect your decision. Peer advocacy in the future will develop to include monetizing these recommendations. It will progress beyond good citizenship to share recommendations or cautionary notes into a mechanism which is rated. The influencers will be incentivised through financial rewards, for example, where they have clearly contributed towards a converted purchase. Going forward, people’s buying behaviour will be driven not only by the effectiveness of the advertisement but by the peer advocacy surrounding that particular item or brand. Brands targeted Mobile advertising in 2020 for the consumer is very The transformation from brand led advertising will be driven by individuals selecting what brand much about the individual information is allowed to reach them. being in control of their own user experience. Each individual will have a digital cog which matches the needs of the individual to their brand affiliation in their vaporframe. This digital cog is essentially the mechanism which controls which advertisements are received by an individual. In some ways this is advancement on inventory management but from the individuals’ perspective. The ease to which this digital cog can be re-adjusted ensures that the brands being targeted have a higher propensity to match the ever changing needs of the individual. It is this pulling of specific marketing material which will define the future of mobile advertising. 6
  • 7. Mobile Advertising - 2020 Vision Serendipity Humans can be creatures of habit. It is easy to get stuck in a rut and not be open to new ideas or solutions. By having a future where individuals select only the brands that they are familiar with or ones which their peers have recommended could stifle innovation in the market. How will new comers to the market ever be included in a vaporframe or being included in a digital cog to be requested to send marketing material? There has to be an element of serendipity. Admittedly this should not develop into a futuristic name for spam. As part of the digital cog there needs to be an element which captures interests or recommendations from others which can expand to your vaporframe. Instead of a friend waiting to see you or call you to tell you about a new experience or product which they have found, they should be able to immediately push this information to you which is then accessible via your mobile device. It is all about developing levels of trust and having the power to grant access to either friends or even allowing some trusted brands to include information into the recommendations area. Recommendations can come from trusted advertisers (for instance your supermarket) either onto a household screen (such as the front of a fridge) or directly to your mobile device. Mobile advertising in 2020 is very much about the individual being in control of their own user experience through collaboration and recommendations in terms of peer advocacy. Mobile Operators Currently from a mobile operator perspective mobile advertising offers the promise of a new revenue stream. Mobile advertising for the operators is still a new phenomenon currently. Some mobile operators are gingerly entering the market place with predominately single channel solutions focusing on for instance WAP banners or SMS push campaigns. There are still many operators for whom mobile advertising is not on their radar screen. They are currently immersed in dealing with the exponential growth of mobile subscribers and therefore quality of service and 7
  • 8. Mobile Advertising - 2020 Vision availability of their core network services is more pressing. However, for other operators who are facing declining ARPU in countries where the battle to market share has been fought and mobile penetration has exceeded or is almost exceeding 100% their focus has been turned to other ways to generate revenue. Here mobile advertising becomes a consideration. Ad-supported models As well as the promise of providing a new revenue stream it was touted that mobile advertising would allow operators to offer new services free to their subscribers, with advertising subsidising that cost. Although this may happen in a limited number of cases, it is more likely that the future of mobile advertising will allow for ad-supported models instead of completely ad-funded scenarios. This is equally relevant for social networking; more will be available via an ad- supported model. Currently the revenue flowing over the mobile channel in terms of advertising dollars is still very small compared to the operators other revenue sources, for instance, SMS. According to eMarketer, in 2007 the global spending on mobile advertising totalled USD 2.7 billion. Although Informa Telecoms & Media predicts this is set to increase to become a USD 12 billion industry by 2013 there will not be sufficient revenue generated by mobile advertising for ad- funded models to become the norm. Inventory Mobile advertising in 2020 offers both advertisers In order to secure any mobile advertising revenue mobile operators need to be able to provide and individuals a more inventory to the brands and media agencies. For advertisers to be able to select the target holistic experience. audience the operators need to provide information about their subscribers (inventory). However, for effective targeting to be possible, especially relating to pre-paid subscribers this additional information will need to be supplemented. This can be gleaned through subscriber portals, opt-in schemes or through dialogues to gain information about preferences. Despite enriching this information it can be argued by the brands that information collated across a country would be more valuable than having data from each of the individual national operators. Currently media agencies have to negotiate deals with each of the operators instead of having just a single access to all the mobile users in that particular country. As we progress down the road to 2020 we will see a shift in this aspect of inventory management. Firstly we are likely to see mobile operator group wide consolidated inventory becoming available. Global operators such as Vodafone or Telefonica should be able to collate their inventory data and have a parameter for country being available. However, it is the second step which will be more powerful from a brand perspective. Although we acknowledge that there are global brands, Coca Cola, Nike to name a couple; these brands do not buy advertising on a global basis. They buy at a national or country level. Therefore it is when the mobile operators within a particular country are able to consolidate their inventory across their entire subscriber base that the revenue from mobile advertising will increase dramatically. 8
  • 9. Mobile Advertising - 2020 Vision Operator segmentation Segmentation will start to take place within the operator domain. In the future we will no longer have the behemoths which are responsible for all aspects of the mobile service. This segmentation has already happened in other industries. For instance, in the UK the rail network has been broken down into different companies who manage the rails and infrastructure to those which manage the trains and service. The same is true for the airports. No longer does one single organisation manage the terminals, baggage logistics, catering and planes. In fact there is a separate company – SITA.aero which manages the entire IT infrastructure. It is this level of segmentation which be introduced within the mobile operator domain. Some operators will gravitate towards providing the services whilst others will excel at being the bit pipe and provide that capability to the service companies. What does that mean for mobile advertising in 2020? This operator segmentation should ultimately be a positive transformation for the future of mobile advertising. It will enable the operators to excel at what they deem to be their core capabilities. For those concentrating on supplying infrastructure this will mean that their efforts and budgets can focus on the required technology requirements to make channels such as broadband or other multimedia rich channels such as IPTV a success. Going forward the sheer cost involved in rolling out these new technologies may not have to be recouped from charging the end user more for a particular service but governments may well start funding this implementation. The service focused operators will be able to secure the capabilities required for delivering Operators will continue the services at a non exorbitant rate and therefore be allowed to concentrate on establishing to play an important role in the evolution of mobile the commercial agreements and seeking new innovative offerings to attract and retain their advertising but the scope subscribers. of their roles will change in line with their own strategic ambitions. Technology The majority of these transformations require the supporting technology to advance, without which mobile advertising in 2020 will not come to fruition. Network evolution 2.5G to 4G The 2.5G and 3G networks provide adequate capabilities for the mobile advertising which is currently in use. However, this isn’t to say that improvements cannot be made. Setting the user experience aside, the speed at which some data is displayed via the mobile internet is still sluggish. Therefore the possibilities of the ultimate user experience on IPTV or video on demand is still limited. Although it is believed that the future capabilities of wireless are inherent in 3G it requires the adoption of 4G to make a difference in terms of data speed and hyper connectivity. 4G networks will be based on Internet protocol (IP), the standard used for sending data over the Internet and other packet-switching networks. This means that unlike today’s 3G networks, which are circuit-switched with an overlay of data carrying capabilities, 4G networks will be entirely packet switched. This will allow 4G networks to deliver data throughput to mobile users as high as 100 megabits per second (Mbps), with, it’s hoped, an evolutionary path to gigabit speeds. 9
  • 10. Mobile Advertising - 2020 Vision In addition to the speed, 4G networks will feature a higher level of security than existing wireless technologies provide and better implementation of quality of service (QoS) techniques for ensuring smooth flow of time-sensitive data, such as video and voice. Ultimately with 4G wireless, the user shouldn’t see any difference between the wired or wireless network, and will have multiple options for connectivity. It is hoped that in-car connectivity, consumer devices, combination of applications, technology and devices, all of these should act together. What this means for mobile advertising is potentially momentous. The hyper-connectivity concept which is all about multiple connections, wire-line and wireless together within one subscription which is tied to the user not the device or network being used, allows mobile advertising to easily cross the boundaries between devices. This will allow us to decide which screen we would like to receive the advertisement on: the mobile device, the screen on the back of the airline chair, in the game which we are playing or e-book which we are engrossed in, etc, etc. With the bandwidth being IP, it will mean that the request for advertisements is from the mobile device but the delivery to the chosen screen will utilise the most relevant technology. This should provide the underlying requirements for mobile directed advertising. Hyper-connectivity will result in mobile advertising being able to easily cross the boundaries between devices, not limited to only the mobile phone. Year of mobile With the introduction of the smart phones, mobiles have already evolved into small PCs from which you can call, text, surf the web and much more. There was a lot of speculation that 2009 is the year of the mobile. From our point of view it can only be the year of the mobile if and when users do more with their mobile than anything else. And here this means the majority of the population does more with their mobile not just the tech savvy few with the high end devices. It is when the mobile device is truly used for all the touch points in your life. For the year of mobile to dawn essential capabilities such as full payment integration needs to have taken place. This will require integration with the credit card facilities and other payment mechanisms. Other evolutions such as integration with TVs and other media devices to allow 10
  • 11. Mobile Advertising - 2020 Vision remote control of viewing or recording options whilst on the move and even the ability to use the mobile device as a projector in its own right. The true year of mobile will demand that the mobile phone transforms to a mobility device with telephony as a mere part of its full capabilities instead of the current embodiment which is telephony and peripheral functionality. Interestingly the year of the mobile will also signify the death of the mobile phone as the majority of us currently know it. And from a mobile advertising perspective this blurs the boundaries between producing different creative and images for the different channel campaigns. Tipping point of speed These boundaries will continue to blur with the advancement of data speed. 4G networks are reputed to allow speeds as high as 100 megabytes per sec (Mbps). However, this will pale into insignificance when the Terabyte per second (TBp/s) is unleashed onto the general public. This is an initiative which CERN (European Organisation for Nuclear Research) is progressing. It will take time before this is readily available in a commercial environment – the average take up rate is at least 8 – 10 years. However, when this is a viable option then the scope of what can be achieved for mobile advertising over mobility devices is immense. There will be no latency on mobile devices which will result in a level playfield as far as creating and delivering high resolution adverts to all screens – mobile or fixed. Mobile directed advertising On the road to 2020 the mobile phone will have transformed into a mobility device which is even more indispensable. The mobility device will be a multi-purpose device which provides the technological representation of us. The ever sophisticated mobile chips will communicate with other hyper connected devices the specific individual requirements held in the digital cog. This data conductor could be described as Life’s remote control. The advertising will be directed by the mobility device. By this we mean that instead of advertisements being pushed via a particular mobile channel (e.g.: WAP banners, SMS or MMS) that the advertisements are directed to the chosen screen. The hyper connectivity should enable advertisements to be directed from a mobile screen for instance to the in-car computer screen or TV screen whilst you’re on a plane, e-book, etc. 11
  • 12. Mobile Advertising - 2020 Vision Mobile directed advertising allows the individual to select the screen to which the advertisement is delivered. 2020 equals mobile directed advertising Although mobile advertising is currently an embryonic market its potential remains clear. Mobile advertising will continue to evolve, less segregated from the other forms of traditional advertising and will transform into mobile directed advertising. The individual will pull mobile marketing information from the selected brands instead of those brands pushing semi-targeted advertisements out to an unsuspecting public. They will decide on which of the many screens in their life the advertisements will be directed to, using their mobile device. Advertisers who openly embrace the individuality of their consumers and invite them to actively participate will flourish. Mobile operators will segment allowing for companies to focus on their core competencies be it infrastructure providers which supply the capabilities for advertising to be delivered with the required quality of service or service providers which concentrate on the enriched offerings which an ad-supported model can enable. The end result is that mobile directed advertising in 2020 will be more collaborative with the individual in control of their own advertising experience. As with VHS, the people will decide what will become successful. Implications for Marketers: 1. Mobile is going to be a significant media channel. 2. Early adopters will benefit from low cost experimentation and first mover advantage. 3. Mobile advertising is not simply an extension of other media plans - it requires a different mindset, a distinct process and new metrics. 4. New forms or collaboration intra- company and across company are both possible and necessary in the emerging mobile space. 5. The cost of entry is currently low. 12
  • 13. Mobile Advertising - 2020 Vision Implications for Marketers: Implications for Operators: 1. Mobile advertising can unlock new 1. Mobile is going to be a significant revenue. media channel. 2. Inventory is a valuable asset for both mobile advertising and own base 2. Early adopters will benefit from low marketing activities. cost experimentation and first mover advantage. 3. Uptake of mobile advertising will increase where Operators are able to provide an integrated ability to access 3. Mobile advertising is not simply their inventory by all parties. an extension of other media plans 4. Increase subscriber loyalty by - it requires a different mindset, a providing relevant and targeted distinct process and new metrics. promotions. 5. Reward your subscribers for 4. New forms or collaboration intra- maintaining their profiles -increasing company and across company are the value of your inventory as well both possible and necessary in the as ensuring their user experience is emerging mobile space. enriched. 6. Identify your strategic ambitions in 5. The cost of entry is currently low. relation to the mobile advertising value chain. Copyright © Acision BV 2007 - 2009 All rights reserved. This document is protected by international copyright law and may not be reprinted, reproduced, copied or utilised in whole or in part by any means including electronic, mechanical, or other means without the prior written consent of Acision BV. Whilst reasonable care has been taken by Acision BV to ensure the information contained herein is reasonably accurate, Acision shall not, under any circumstances be liable for any loss or damage (direct or consequential) suffered by any party as a result of the contents of this publication or the reliance of any party thereon or any inaccuracy or omission therein. The information in this document is therefore provided on an “as is” basis without warranty and is subject to change without further notice and cannot be construed as a commitment by Acision BV. The products mentioned in this document are identified by the names, trademarks, service marks and logos of their respective companies or organisations and may not be used in any advertising or publicity or in any other way whatsoever without the prior written consent of those companies or organisations and Acision BV. 13