Presentation is loading. Please wait.

Presentation is loading. Please wait.

© Copyright 2008. Yankee Group Research, Inc. All rights reserved. Publicidad y Nuevos Medios Wally Swain SVP, América Latina 27 de febrero de 2008.

Similar presentations


Presentation on theme: "© Copyright 2008. Yankee Group Research, Inc. All rights reserved. Publicidad y Nuevos Medios Wally Swain SVP, América Latina 27 de febrero de 2008."— Presentation transcript:

1 © Copyright Yankee Group Research, Inc. All rights reserved. Publicidad y Nuevos Medios Wally Swain SVP, América Latina 27 de febrero de 2008

2 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 2Febrero 27, 2008 Agenda Yankee Group Vision and Advertising On-line Advertising Mobile Advertising Conclusions Q&A

3 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 3Febrero 27, 2008 Agenda Yankee Group Vision and Advertising On-line Advertising Mobile Advertising Conclusions Q&A

4 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 4Febrero 27, 2008 A global communications revolution is underway Three network technologies are unleashing the next wave of the network effect: –IP as a de facto standard –broadband –wireless Barriers protecting traditional networks are falling Business models, laws and social norms are all under attack as well We are accelerating towards ubiquitous connectivity, when all people and will be connected anywhere

5 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 5Febrero 27, 2008 Revolution will lead to the Anywhere Network The Anywhere Network is Yankee Groups vision of a seamless and always- accessible intelligent infrastructure that provides a connection for everyone to everything from anywhere Where is the Anywhere Network developing? What are the sustainable business models? How will technology and regulation effect change? How will devices evolve in concert with the network?

6 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 6Febrero 27, 2008 Regardless of their physical location, consumers' access to content and applications will affect all service sectors. Image source: Flickr Consumers Will Connect to Everything from Anywhere

7 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 7Febrero 27, 2008 Content Delivery Value Chain Who pays for TV content and how? ProductionProgramDeliverConsume Subscription Rights Purchase This simple flow of money does not pay for television content production. And would not apply to Internet where Consumers will only pay subscriptions for very specialized content. DisneyChanelCableCo

8 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 8Febrero 27, 2008 Content Delivery Value Chain Who pays for TV content and how? ProductionProgramDeliverConsume Subscription Rights Purchase Most of the value chain is paid for by Consumers buying the goods Advertisers need to sell. This is the New Media model content providers hope to exploit. Advertisers Product Placement TV Ads Ad Insertion Buy Goods DisneyChanelCableCo

9 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 9Febrero 27, 2008 Content Delivery Value Chain Implications for Intenet ProductionProgramDeliverConsume The great benefit of User- Generated Content is that Internet brands like YouTube get content for FREE. carriers have no equivalent of ad- insertion. Advertisers Display Ads Buy Goods UGCYouTubeCarrier

10 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 10Febrero 27, 2008 Digital Advertising & Marketing: Perspective Advertising is a tool that marketers use to: –Build brand awareness –Engage customers and prospects –And ultimately increase sales. The marketing funnel describes these different types of marketing objectives There are different types of media choices: –Print –Radio –Television –Out of home –Online Awareness Intent Brand Advertising Direct marketing Direct response Type of MarketingDigital Tools Objective marketing Video advertising Site sponsorships Rich media Text/Search ads

11 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 11Febrero 27, 2008 Digital Advertising Landscape Source: The Yankee Group Ad Network Brands and Advertisers Brands and Advertisers Consumers Agencies Direct Audience Targeting Publishers Websites Portals Online publications Video content Gaming Mobile operators Social Networks Web 2.0 apps Telecommunications Digital television Distribution (CATV, DBS, IPTV, etc.) Syndication & other secondary dist Publishers Websites Portals Online publications Video content Gaming Mobile operators Social Networks Web 2.0 apps Telecommunications Digital television Distribution (CATV, DBS, IPTV, etc.) Syndication & other secondary dist Direct Ad Network Ad exchange Ad Server Targeting Platform Enabling Tech Brands use advertising to reach a group of customers described by a demographic or psychographic profile Large advertisers work with ad agencies, though smaller advertisers may purchase directly. Interactive makes this easy. There are many types of enablers, including networks, exchanges and technologies Publishers create and own content. Historically, individual types of content have had clearly defined audiences relevant to advertisers. Interactive targeting is a way to re-define online audiences for advertisers The target. The goal. Advertisers need to get in front of consumers a minimum of three times with a message in order for consumers to retain it. Buy Side Sell Side

12 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 12Febrero 27, 2008 Advertisers spend significant dollars on traditional media Source: TVB, NAA, RAB, IAB, Yankee Group TV Gets 41% of Spend Spending shifts from Newspapers to Internet Internet gets 9% -- More than Magazines or Billboards

13 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 13Febrero 27, 2008 Colombian Advertising Spend Internet not even tracked by IBOPE

14 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 14Febrero 27, 2008 Agenda Yankee Group Vision and Advertising On-line Advertising Mobile Advertising Conclusions Q&A

15 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 15Febrero 27, 2008 In the US, Consumers spend less time focused on television.

16 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 16Febrero 27, 2008 Internet delivered video represents both a threat and an opportunity Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey Q. What types of video do you watch online? n = 517

17 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 17Febrero 27, 2008 Online Advertising as a percent of total will triple

18 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 18Febrero 27, 2008 Advertisers will pay equivalent amounts for Internet viewers

19 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 19Febrero 27, 2008 Internet video transforms the viewing landscape Source: Yankee Group, 2007

20 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 20Febrero 27, 2008 Where do advertisers spend their online dollars? Source: Internet Advertising Bureau, 2007

21 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 21Febrero 27, 2008 Search provides context and permits targeting Google or Yahoo show me FREE how to get the information I want. Ski resorts and ski manufactures pay them to get access to someone who is interested in skiing.

22 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 22Febrero 27, 2008 Targeting The carrier opportunity is to support targeting Dayparting Geographical Demographic Context Behavioral Psychographic

23 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 23Febrero 27, 2008 How does the carrier support targeting? Dayparting –Time of day context for user Geographic –Cross-reference IP address and physical location Demographic –Cross-reference IP address, carrier CRM and recent activity Context –Consolidate recent activities across multiple sites Behavioral –Click sequence capture across multiple websites Psychographic –Portals and multiple website profiling The challenge is that many users would view this as intrusive or – worse – as a violation of privacy

24 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 24Febrero 27, 2008 Where is online advertising going? Online 1995Online 2010 NarrowbandBroadband NoveltyEssential TextVideo, audio, multimedia PC CentricMultiple devices Productivity and publishingEntertainment AnonymousAware Work and homeAnywhere Advertising separated from contentContextual Integrated Response advertisingResponse and branding Push / publish advertisingParticipatory A place to goEverywhere you go

25 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 25Febrero 27, 2008 Recommendations for Advertising Networks, Operators and Enabling Technology Vendors Help publishers develop their business. Publishers will be challenged to cobble together various technologies and services into a cohesive technology plan and product road map. Think sell through and not sell to. Innovate with marketer segments. Clarify marketing expectations and how they relate to new interactive products and technologies. Solve workflow and automation challenges for advertisers. What technologies can ad networks and technology vendors build into services so that agencies can benefit? And this means more than a web interface. The last thing anyone needs is another username and password. Plan on video standards from the beginning. Digital media is disruptive, and weve already seen the fragmentation that comes with different forms of distribution for video. Although the ad formats may vary from the internet to broadcast television, there will be standards. So plan for them.

26 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 26Febrero 27, 2008 Agenda Yankee Group Vision and Advertising On-line Advertising Mobile Advertising Conclusions Q&A

27 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 27Febrero 27, 2008 Carriers are the most powerful stakeholders in the mobile advertising industry ADVERTISERS Reebok Adidas Anheuser Bush P&G Ford Daimler- Chrysler Budweiser Low Source: The Yankee Group Carat Interactive WPP Omnicom Mindshare Ogilvy ipsh Telefonica America Movil AT&T Verizon Wireless Sprint Nextel T-Mobile Orange Vodafone 3 INFLUENCE ON CHAIN EXAMPLE COMPANIES AGENCIES ENABLERS PUBLISHERS CARRIERS Admob Enpocket/Nokia Third Screen Media Millennial MSFT JumpTap Medio Systems MediaFLO MobiTV USA Today TWC Turner Disney (ESPN, ABC) CBS NBC Viacom (MTV, Comedy Central) 100s of sites… CONSUMERS High Medium POWER SHIFTS IN VALUE CHAIN Carriers have eyeballs, and are just starting to sell inventory and exert influence down chain Off deck publishers are acting independently, but are developing two prong strategy (on deck and off deck). Their power stems from the appeal of their content and internet relationships Enablers have bifurcated strategy – appealing directly to publishers and working with carriers Agencies and advertisers hold the purse strings. Mobile comprises tiny portion of ad buy. High Medium

28 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 28Febrero 27, 2008 Carriers bread and butter is about core (voice) transactional revenues and datas future promise 2011 Voice $136.3B Data $39.4B (22%) 2006 Voice $121.8B Data $16.2B (12%) Source: Yankee Group, 1Q07 Blended ARPU $52 $51 $53 US Revenue Forecast

29 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 29Febrero 27, 2008 Mobile advertising: drivers, inhibitors, and further requirements for growth DRIVERS Huge TAM. Volume of Handsets, time spent on mobile platform, growth trajectory of mobile for Internet, Video and other entertainment Untapped medium Advertisers, publishers and carriers need to replace declining revenues traditional channels Appeal and promise of targeting and proximity to commerce Network and device advancements INHIBITORS Mobile carriers need for control Unproven business models Lack of standards Inherent display and form factor limitations Fractured ad buying/selling ecosystem Lack of real metrics Privacy and personalization concerns Uncertain consumer tolerance FURTHER REQUIREMENTS FOR GROWTH More success stories with measurability of effectiveness More cohesive carrier participation Consumer value creation – through better content, easier access, and (for some segments and experiences) subsidies Scale. Advertisers require breadth as well as targeting

30 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 30Febrero 27, 2008 Motivations differ but agree on priorities – Grow mobile advertising! Source: The Yankee Group MOTIVATIONS WITHIN THE VALUE CHAIN Advertisers and Agencies Enablers Service providers Losing eyeballs in traditional forms of media (Television, print) Need reach and breadth of audience Want early mover advantage Need metrics of efficiency – ROI Appeal of localized personalized targeting Another touch point for integrated experience Stake early claim in market Take risk for early position and hope for outrageous reward Pure play vendors want to create market for their technology Integrators looking to position in growth category Another revenue stream Take control of business models Position for growth as extension of Internet business models Grow advertising revenues across platforms Balance between going alone and cooperating with behemoth carriers that possess and control customers Publishers Grow data revenues and data service appeal Buttress declining ARPU from basic connectivity Take bounty on any traffic on network Differentiate service plans from competitors Leverage three screen appeal to advertisers Protecting consumer privacy while leveraging consumer context

31 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 31Febrero 27, 2008 Mobile is confusing for advertisers – with multiple, fragmented platforms/technologies and channels to market Mobile platforms –Messaging (SMS, MMS, A2P, P2P) – largely used for marketing/promotional campaigns –Mobile Internet/Web – like the web, largely used for banner/display or text ads, with various click through mechanics options E.g., Click-to-Call, Click-to-Coupon, Click-to-Locate, Click-to-URL, Click-to-Data Capture (SMS or address), Click-to-Survey, Click-to-Contest, etc.) –Mobile Search – sponsored, click-to-call –Mobile Video/TV – pre- and post-roll, within broadcast channels –Downloadable applications (games, etc.) –On-device portals –Idle Screen –Other (Bluetooth, RFID, NFC, etc.) Carrier and non-carrier channels (participation) –On-deck/portal – within the walled garden –Off-deck/portal – outside the walled garden (D2C)

32 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 32Febrero 27, 2008 Where are mobile operators opportunities in advertising?

33 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 33Febrero 27, 2008 Mobile advertising by platform/channels – whos got the power in the value-chain

34 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 34Febrero 27, 2008 Messaging and mobile web: where todays reach is in mobile Active Usage of Mobile Features/Capabilities (Use Once a Month or More) Source: Yankee Group US Mobile User Surveys, Anywhere Consumer: 2007 US Web/Data Survey. Messaging Personalization Entertainment Web In 2007, nearly 13% of consumers were active mobile web browsers, and 19% of consumers had attempted to use the Mobile web (up from 6% and 18% respectively from 2006).

35 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 35Febrero 27, 2008 Disintermediation/Google-ization is happening already About 40% of rank web browsing among the top five mobile apps they are interested in. About 20% of regularly browse the mobile web. Despite carriers tries to close the door on Google, its PC web dominance has easily transferred to the mobile web. When you browse the mobile web, what types of sites do you access? Source: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey, 2007 Teens and Technology Survey

36 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 36Febrero 27, 2008 Consumers still uncertain about ad-supported mobile experiences Source: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey How Would You Like to Pay for these Mobile phone services (select one answer for each service shown)? Variable bases, and represents includes those respondents who listed the above services/applications among the top five for future use.

37 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 37Febrero 27, 2008 Preferred Payment Model Mobile Application Included Pay Fee View Ads Dont Know Communication Tools Text Messaging Photo Messaging Video Messaging Mobile IM Push-To-Talk 52.40%19.70%27.87% Entertainment Services Game Downloads Adult Content Listen to Music or Radio Watch TV or Video 39.60%27.30%33.11% Web Access & Productivity Information/Directions Post/upload photos Access Social Networks / Online communities Internet Browsing Receive Text Alert 46.70%20.90%32.45% PersonalizationGraphics/wallpapers Ringtones Ringback tones 46.40%23.70%29.90% Consumers most open to ad-supported models within mobile entertainment experiences Consumers express mixed feelings towards mobile service payment models, but are clearly willing to pay directly for core Communication Tools like SMS, IM and Consumers are open to advertising supported Entertainment Services, like gaming or multimedia downloads –This may prove to be a viable model, given higher reported click-through rates for mobile advertising –Of the 30% of respondents interested in using the mobile internet, 6% reportedly clicked through (3X traditional rates) n = varies, % are aggregate – weighted average Source: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey (online survey of 1,500 adult US mobile consumers)

38 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 38Febrero 27, 2008 Gap between what adults say they will pay for multimedia services and what it currently costs n=variable bases among top 5 applications interested in using and willing to pay monthly fee Source: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey Percent of Respondents Interested in Spending Monthly and Amount Willing to Spend per Month

39 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 39Febrero 27, 2008 US carrier approach to ad enablement Attitudes on Advertising Current Activity and Early Initiatives Assessment Verizon Outpacing all competitors in churn management – with primary focus on retention and share grab Taking tempered, controlled approach Most vocal about consumer privacy concerns relating to mobile advertising Quietly launched on deck mobile web advertising on secondary pages using TSM Using Medio Systems for search Advertising served in Media FLO mobile TV services; targeted/mobile-specific advertising will be served in the future Most expressed concern about use of personal data to target Verizon Wireless not integrated strategically with wireline, which may affect cross-channel opportunities Sprint Nextel First mover in mobile data Highest data ARPU Losing share and more in need of supplemental revenue Launched on deck mobile web advertising initiative using Enpocket / Nokia Working with Microsoft for on deck search and MobiTV for video/TV View local search as critical component of advertising strategy Risk of under-funding behind strategy WiMAX play could provide some level of differentiation AT&T Largest nationwide carrier, with number 2 carriers (VZW) nipping its heels Mass market push around 3-screen vision Most open to new business models Expressed concern over not affecting transactional data revenue and consumer experience in advertising Trials of WAP banner and text ads launched in June to gauge consumer acceptance Yahoo! Go enabled on some handsets Using Infospace for on-deck search Advertising will be served in Media FLO mobile TV services; targeted/mobile- specific advertising will be served in future 3 screen vision way ahead of 3 screen capabilities, but most likely to look for cross channel opportunities T - Mobile Value play Customer base most attractive to deploy advertising against Limited data offers 3G spectrum now available Using Medio for on-deck searchPotential to be most disruptive with advertising play (e.g., 100% ad- supported business models)

40 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 40Febrero 27, 2008 What carriers need to do to move the market forward Prove the appeal of mobile to advertisers by building the inventory Test user acceptance Ensure standardization and reporting Look to monetize across on- and off-deck environments Build more sophisticated targeting, including location-based elements Partner where you lack skills Take a tempered approach

41 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 41Febrero 27, 2008 Agenda Yankee Group Vision and Advertising On-line Advertising Mobile Advertising Conclusions Q&A

42 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 42Febrero 27, 2008 Conclusions In the US, Internet advertising is 10% of total. Growth has come at the expense of Newspapers. LA advertisers speed less on Newspapers today so direct analogies may not apply Consumers live with ad-supported models in TV and Internet Search but dont know what it means in Mobile Carrier opportunity is supporting Targetting Speed is of the essence Good Luck!

43 Publicidad y Nuevos Medios © Copyright Yankee Group Research, Inc. All rights reserved.Page 43Febrero 27, 2008 Muchas Gracias! Wally Swain !


Download ppt "© Copyright 2008. Yankee Group Research, Inc. All rights reserved. Publicidad y Nuevos Medios Wally Swain SVP, América Latina 27 de febrero de 2008."

Similar presentations


Ads by Google