(Graham Brown mobileYouth) Mobile Youth Presentation to Telenor Djuice Oct 2008
-
Upload
graham-brown-mobileyouth -
Category
Business
-
view
3.683 -
download
0
description
Transcript of (Graham Brown mobileYouth) Mobile Youth Presentation to Telenor Djuice Oct 2008
mobileYouth® 2008 © mobileYouth
1
mob
ileYou
th 2
00
8
mark
eti
ng
& a
dvert
isin
g
2 halves
mobileYouth® 2008 © mobileYouth
SESSION 1AAbout Youth
2
A story of 2 brands
mobileYouth® 2008 © mobileYouth
MobileYouth: Perspective
3
Simple
mobileYouth® 2008 © mobileYouth
MobileYouth: 3 Key Questions
4
1) Who are they?
2) What do they want?
3) How do we give it to them?Since 2001Good/Bad News
mobileYouth® 2008 © mobileYouth
History
About mobileYouth
• What you say vs. What you do
• Brand perception
• Innovation & Dialogue
5
Timeless
mobileYouth® 2008 © mobileYouth
Insights in Coffee
6
Drivers are timeless
OTS Video
mobileYouth® 2008 © mobileYouth
Intro ~ What do youth want? mobileYouth on the street video 1
7
Break
mobileYouth® 2008 © mobileYouth
SESSION 1BThe Business Case
8
Lifetime value
mobileYouth® 2008 © mobileYouth
9
Business Case
Lifetime Value
Global Mobile Youth will spend an average of $28,000 in their lifetime on mobile services (measured by their phone bill).
By aged 35, the lifetime value of the consumer has already halved highlighting the importance of establishing relationships at an earlier age.
Implications
Chasing ARPU here and now means the mobile industry compels itself to seek the higher spending customer – ie the 30+ demographic even though their lifetime value, propensity to adopt new services and value to product development is lower.
By adopting a longer term focus on the relevant metrics – loyalty/churn for example – organizations will be more geared towards investing resources into consumers who do not return an immediate payoff.
Changing the metrics is key to breaking the hand-to-mouth cycle that fuels telecoms marketing.
You
th Life
time V
alu
eby age 35, the average consum
er has already expended half of their lifetim
e spend on mobile
2827
2522
1714
109
75
332
10
20
30
40
50
60
70
Source mobileYouth data
remaining lifetime value of consumer to operator ($US 1,000s)
halfway
}50% expended
Biz case
mobileYouth® 2008 © mobileYouth
Mobile Youth - The business case
10
Adding 100 million new subscribers a year
$2 trillion growing to $3.5 trillion by 2017
50% of lifetime value expended by age 35
Most likely to tell friend about a mobile service. WOM most influential advertising
Highest data ARPU as a % (nearly 40%)
Heaviest consumers of mobile search(market to grow to $4 bn. by 2012)
Heaviest consumers of widgets & mashupsFut revs/adv
mobileYouth® 2008 © mobileYouth
11
Marketing Trend
$5 billion marketMobile advertising remains relatively small – at 10% of the total online marketing spend.
However, we anticipate that mobile will grow from 10% of the combined digital (online/mobile) budget in 2008 to just under 20% in 2011 – a doubling of relative importance within the marketing mix.
Mobile advertising will grow in 3 ways –
1) In direct revenues - $5 to $16bn 2008-112) As a core component of integrated marketing strategies3) Mobile merchandising
Implications
Most brands are reluctant to engage until they see definitve metrics that can assure their media planning of a like-for-like displacement of spend.
However, beyond the simple campaign - the real value of mobile in customer service, product development and dialogue building does not translate today into a like-for-like comparison of metrics.
Gro
wth
of
Mob
ile A
dvert
isin
gM
arke
t to
dou
ble
ever
y 2
year
sr $4.96
$7.47
$11.45
$16.22
$2.78
$1.62006
2007
2008
2009
2010
2011
worldwide mobile advertising spendng ($US millions)
Source mobileYouth based on eMarketer data 2007/8
Receptive?
mobileYouth® 2008 © mobileYouth
12
Business Case
Mobile Advertising
Youth are key to evolution of the mobile advertising sector.
Although they spend relatively less on mobile, they have a higher lifetime value and, importantly, are nearly 80% more likely to recall brands featured in mobile advertising.
Initial market progress will occur with these consumers as opposed to the more resistant older generations.
Implications
Industry often cites 30-39 as the typical advertiser target profile on mobile because they spend more, yet mobile marketing is relatively germane and the value of engaging a substantial development lab in the form of young consumers is highest in a market that is still relatively underserved.
You
th a
nd
Mob
ile A
d R
eca
llY
oung
con
sum
ers
have
hig
hest
rec
all r
ate
of m
obile
ad
vert
isem
ents
7%
17%
25%
43%
5%55
45-54
35-44
25-34
18-24
% who recalled brand based on mobile ad received
Source mobileYouth based on Limbo data 2007/8
Biz case 2
mobileYouth® 2008 © mobileYouth
Mobile Youth - The business case
13
Mobile spending starts to plateau at under $300bn “the ARPU ceiling”
Are we limiting our revenues to the phone bill? Can Channel ARPU provide growth?
Mobile advertising $5bn to $16bn by 2012. Youth are most likely to recall brands marketed via mobile (41% vs. 18%) ~ particularly in SNS context
Age group most comfortable with profiling
Age group most likely to buy on phone
Trust
mobileYouth® 2008 © mobileYouth
SESSION 2ATrust
14
mobileYouth® 2008 © mobileYouth
What is important to youth? mobileYouth on the street video 2
15
Healthcheck
mobileYouth® 2008 © mobileYouth
Mobile Operators Brand Health-check
16
Youth trust for handset brands significantly higher than that for operators (52 vs. 27%) (NB:Europe showed lowest figures)
Youth churn continues to rise (35% pa) Significantly higher than the all-industry averages
Youth ranked their “wants” from operators as:1) better package2) better customer service3) better choice of handsets4) new services/technologies
DNA vs Need
mobileYouth® 2008 © mobileYouth
17
mobileYouth Trend #8
Marketing and Strategy = different goals?
Most marketers prioritize the need to achieve customer satisfaction (75%) and retention (65%) as core organizational goals yet most report budgets focused on acquisition (52%) rather than retention (48%)
As long as the DNA of the organization (ie the metrics) remains focused on acquisition, tactics will replicate regardless of strategic objectives.
Implications
Strategic dissonance represents a classic case of the disjunct of organizational need and the organizational habit.
For decades, the need to drive net additions in services and technology have ingrained organizational habit into measuring and focusing on high impact, low sustainability marketing tactics that place premiums on awareness, impressions and column inches.
However, need now requires habit to change and it is C-level leadership that needs to take initiative in directing the organization through introducing co-operative metrics.
Yet... M
ark
ete
rs Rate
d “C
usto
mer
Satisfa
ction
” & “R
ete
ntio
n” a
s #1
Prio
rities
53.0%
54.0%
58.0%
65.0%
75.0%
ROI
Quality
Segmentation
Retention
CustomerSatisfaction
Source mobileYouth based Andersen Analytics data 2008
% of marketers who identified this as a key focus for 2008 strategy
What we do...
mobileYouth® 2008 © mobileYouth
When organizational DNA gets in the way
18
Fail is okay
mobileYouth® 2008 © mobileYouth
19
Youth also make mistakes
Dialogue
mobileYouth® 2008 © mobileYouth
SESSION 2BYouth Marketing
20
mobileYouth® 2008 © mobileYouth
(Video) How can Telenor build trust through dialogue?
21
MarcommsMass Market
mobileYouth® 2008 © mobileYouth
(Video) How can Telenor build trust through relevance?
22
Clarity
mobileYouth® 2008 © mobileYouth
(Video) How can Telenor build trust through clarity?
23
RelevanceRemarkable
mobileYouth® 2008 © mobileYouth
(Video) How can Telenor build trust by being remarkable?
24
More videos, more info
mobileYouth® 2008 © mobileYouth
25
mobileYouth.org
Blogging mobile, youth, marketing and branding trends since 2001 with articles by Josh Dhaliwal and Graham Brown
As always, free to read. Includes presentations and videos published by mobileYouth and partners
http://www.mobileYouth.org
mobileYouthNet.com
Networking professionals in the mobile youth space.
Watch on-the-street videos of our reporters talking to youth about mobile and marketing.
Events calendar, discussion, contacts and more. Join today for free at
http://www.mobileYouthNet.com
Ab
ou
t m
ob
ileYou
th &
mob
ileYou
thN
et
mo
bile
Yo
uth
Net
.co
m
mo
bile
Yo
uth
.org