Opportunities in the Age of Innovation - Mobile

Great Opportunities of

History. And Today.

Greg StuartCEO, Mobile Marketing

Association 11 February 2014

1066 1197 1328 1459 1590 1721 1852

Marty Cooper Invents the Cell Phone1970’s

Apple releases the iPhone6/29/1970

Darwin's On the Origin of Species; Lenoir builds first practical internal-combustion engine

1/1/1859

Watt patents first practical steam engine1/1/1769

Industrial Revolution begins in England

1/1/1760

Newton's theory of universal gravitation

1/1/1664

Columbus reaches the New World1/1/1492

Renaissance begins in Italy1/1/1300

Genghis Khan begins creation of largest land empire in history1/1/1206

Norman Conquest of Britain1/1/1066

There have been a few great moments in history.

3

Impact of Three Major Trends Today

① We are in the Age of Innovation

② Marketing & Media is in Chaos/Massive Evolution

③ Proliferation of Mobile

4

1Age of Innovation

5

1946

A.D.

U.S. Venture Capital Investing Trends

1970 – 2012

1970 1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

$0

$20

$40

$60

$80

$100

$120

$0.1 $0.5 $2.6$7.3

$99.2

$38.0

$20.9 $21.8$26.3

$30.4

$19.5$26.7

93314

1050

1565

6420

3845

26882486

2752

33833398

2554

3143

VC Dollars In-vested (Billions)

Companies Funded by VC

Com

pani

es F

unde

d D

ollars Invested ($Billions)

Source: NVCA Venture Impact 2011, 6th Edition

And There are More VC Firms

8

Active U.S Venture Capital and Corporate VC Firms inBy Year, 2007 to 2013 YTD

Source: CB Insights June 2013

479

9

Plus a Rise in U.S. Internet InvestmentsInternet-Related Investments By Year, 1995-2012

1995 2005 20120

2000

4000

6000

8000

10000

12000

14000

16000

18000

0

500

1000

1500

2000

2500

$1,931

$11,153

$15,676

1369

$ Millions # Companies

2050

Source: NVCA 2013 Yearbook

10

543,000 new companies monthly in U.S

Also, Innovation is Alive & Well in Israel - Rightly called “Startup Nation”

No. 1 in number of startups per capita: ~1 startup per 1,800 Israelis

No. 2 in absolute number of startups. (U.S.) is No.1. No. 3 in number of companies traded on NASDAQ after

U.S. and Canada.No. 1 in R&D spending per capita and is also Israel is

world leader in patents per capitaVenture capital investment per capital in Israel is 2.5

times over the U.S. and 30 times than Europe.

12Source: Reinhold Cohn Group 2013

13

Steady Rise in # Startups in Israel Too

1990 2000 2005 2012 -

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

400

2,000

2,500

4,444 Number of Startups in Israel, 1990 - 2012

Source: 1990 – 2005 data from Invest in Israel, Ministry of Economic State of Israel; 2012 Data is based on report from Reinhold Cohn Group- 1 Start-up/1800 Israelis and total population of Israel is 8million

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2Marketing Chaos

15Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill

1704

16Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill

1890

17Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill

1960

18Source: Advertising Yesterday, Today, and Tomorrow, McGraw Hill

2008“The country’s third-largest advertiser, General Motors is getting ready to shift fully half of its

$3 billion budget into digital and one-to-one

marketing within the next 3 years.” Advertising AgeMarch 17, 2008

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CMO’s Should be Chief Innovation Officers

From Stephen Quinn, CMO of Wal-mart & Chairperson of ANA opening keynote presentation at this year’s ANA Masters of Marketing

More Tech Spend by CMOs than CIOs

By 2017, CMO will spend more on IT than CIO

2011 B2B and B2C marketing budgets as a percentage of revenue were almost three times as high (10 percent) as IT budgets (3.6 percent).

2012 IT budgets are expected to grow 4.7 percent, while all marketing budgets are predicted to grow 9 percent

On average, nearly one-third of named marketing-related technology and services is bought by marketing already.

25Source: Gartner 2013

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Google is single largest advertising brand there has ever been

And they got there in 15 years

BSKYB Viacom Bertelsmaann Time Wartner Google $-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$10.0$15.0

$21.0

$29.0

$50.2Revenue for Top Media Companies, 2012 In billions

Source: Google, TW, Bertelsmann, ViaCom, SKYB Annual reports

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And The Access to Consumers is Astonishing – Like Nothing Ever Seen

Gannett

Bertelsm

ann

Time W

arner

Viacom

Google

Face

book -

200.0

400.0

600.0

800.0

1,000.0

54.6 49.0 55.0 80.0 191.0

945.0 Monthly Unique Users for Major Media Companies

In million

Source: FB, Google, Viacom, Time Warner, Bertelsmann, Gannett Annual reports

$500B

Worldwide

3Age of Mobile

30

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E0%

5%

10%

15%

20%

25%

7%8%

10%

14%15%

16%18%

19% 20% 20%

1%3%

4%5%

7%

11%

16%

22%

0.0166509025413565

0.0336356531378265

6%

PCSmartphonesTablets

Source: BII estimates, Gartner, IDC, Strategy Analytics, company filings, World Bank 2013

Inst

alle

d Ba

se O

f Dev

ices

As A

% O

f Glo

bal

Popu

latio

n1 In Every 5 People In The World Own A Smartphone: 1 In Every 17 Own A Tablet

Will be 10 Billion Mobile Subs this year!

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Smartphone Penetration is Worldwide

Africa

Israel

Germany

USA

UK

Hong Kong

Singapore

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

20%

57%

62%

64%

72%

87%

87%

Smartphone Penetration By Country, 2012

Source: Nielsen Report 2013; Note: Africa stats is from African telecommunications market and Israel Data is from Google and Ipsos MediaCT survey

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Apps Make Smartphones also a Medium

Sources: comScore, Alexa, Flurry Analytics

Greg Stuart, CEO; greg@mmaglobal.com +1 631.702.0682

Dec 2010. Dec 2011. Dec 2012.0

20

40

60

80

100

120

140

160

180

70 72 7066

94

127

162 168 168

U.S Web vs. Mobile App vs. TV Consumption , Minutes per day

Web Browsing Mobile Applications Television

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Apps Are Revolutionizing How We Get Access To Content, Community And Commerce And Entertainment

Mobile App Use Grew 115% in 2013, Propelled by Messaging Apps (1)

57 billion apps were downloaded in 2012

82 billion apps will be downloaded worldwide in 2013

and by 2017 there will be more than 200 billion downloads per year. (2)

Source: (2) Gartner September, 2013; (1) Flurry

2011 2012 2013 2014 2015 2016 20170

10

20

30

40

50

60

70

80

90

Paid For In-app PurchasesAdvertising Total Revenue

Mobile App Store Revenue, Worldwide, 2011 -2017 (Billions of Dollars)

Source: Gartner (Sep 2013)

34Apollo 11 was the spaceflight that landed the first humans on the Moon, Americans Neil Armstrong and Buzz Aldrin, on July 20, 1969

36

150xAverage each Day

82%Never Leave Home w/o Phone

38

39

Mobile Advertising

slide titleFear, Uncertainty, Etc.

41

% of Time Spent in Media vs. % of Advertising Spending, USA 2012

Note: Note: *Internet advertising reached $37B in USA in 2012 per IAB, Mobile advertising reached $4B per eMarketer. Print includes newspaper and magazine. $20B opportunity calculated assuming Internet and Mobile ad spend share equal their respective time spent share. Source: Time spent and ad spend share data based on eMarketer (adjusted to exclude outdoors / classified media spend), 12/12.

Print Radio TV Internet Mobile0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

6%

14%

42%

26%

12%

23%

10%

43%

22%

3%

Time Spent Ad Spend

Internet Ad=$37B* Mobile Ad

=$4B*

~$20 B op-portunity in USA

% o

f Tot

al M

edia

Con

sum

ption

Tim

e or

Ad

verti

sing

Spe

ndin

g

42

“There is a lot of talent, but not a lot of opportunity.”Rye Barcott

43

Lastly, Mobile Has Doubled its Share of VC Dollars

Source: Rutberg & Co. Aug 2012

Mobile VC as Percentage of Overall Tech VC

MMA’s Positioning on Mobile:

Nothing gets a marketer closer to consumers than

mobile. Nothing!

The True Power of Mobile

But What is Mobiles’ USP–Unique Selling Proposition!

It is…

1.Personal2.Pervasive3.Proximity

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But why does this really matter?

47 47

Mobile

Opportunity

48

Impact of Three Major Trends Today

① World Loves Innovation

② Marketing Needs Help

③ Never Been an Opportunity Like Mobile

greg@mmaglobal.com

+1 631 702 0682@gregstuart

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Join the Community - MMA Events 2014MMA Events are great networking, education and leadership opportunities:MMA Forums NY Forum – May 6-7, 2014 Singapore Forum – May 22, 2014 Brazil Forum – August 26-27, 2014 India Forum – September 2014 London Forum – November 2014 Vietnam Forum – November 2014Global Events CEO & CMO Summit – July 13-15, 2014 (Hilton Head, U.S.) SM2 Innovations – September 30+, 2014 (New York) Cannes Lions – Jun 16-22, 2014 Smarties Awards New York – October 1, 2014

More coming http://www.mmaglobal.com/events/forums

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MMA MembersMarketers, Agencies, Media Sellers, Tech, Operators

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Growth of Local Councils Continues Worldwide:

APACChinaIndiaPhilippinesVietnam

MMA is Global – Branches in 15+ Countries

LATAMArgentinaBrazilColumbiaMexico City

EMEAAustria East AfricaFrance GermanyHungary ItalyPortugal SpainSouth Africa TurkeyUKMiddle East

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To accelerate the transformation and innovation of marketing through mobile, driving business growth with closer and stronger consumer

engagement.

MMA’s Purpose(new clarity of mission 11/13)

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greg@mmaglobal.com

+1 631 702 0682@gregstuart

Thank You