Double the 2-5 year olds can play with a smartphone app (19%)…

…than can tie their shoes (9%)

Double the 2-5 year olds can play with a smartphone app (19%)…

…than can tie their shoes (9%)

Phones or shoes?

2010 AVG study2010 AVG study

Mobile Marketing A new interaction and revenue stream … lessons from the news publishing industry

Mark Challinor, Director of Mobile and Interactive Services, Telegraph Media Group

1

Average Daily Readership (000's)

1,751

1613

1130

556

391

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

(000

's)UK quality newspaper market

Source: NRS Oct 09 – Sep 10

North America

Newspapers: 1,577

Latin America

Newspapers: 1,400

Europe Newspapers:

2,398

Africa Newspapers: 400

Middle East Newspapers: 272 Asia

Newspapers: 5,071

South Pacific Newspapers: 89

2

INMA: Our focus in 2011

1. Culture change, processes to support transition

2. Paid content opportunities in “passion niches”

3. Integrating advertising sales

4. Reallocation of marketing

5. Revenue opportunities with mobiles/tablets

Theme: practicalities of transition from “news on paper” to multi-media

We envision literally, a billion people getting inexpensive, browser-based touch-screen devices over the next few years”

Eric Schmidt, CEO, Google, 2011

Are we aware of where our customers are or are moving to?

Environment: Mass Market Factors?

• Individual mobility up

• Sense of community changes: change from geography to interests (25 yr old London/NYC)

• Consuming more media, but in smaller bites

• Multi-task activities more than ever

• Technology transforming the market esp. net, mobile

• Ubiquitous “Always On” Access - Reach your audience in the right place at the right time – they always have their mobile phone with them

• Viral – 1 in 4 forward campaign participants “refer a friend”

• Actionability/ Interactivity – adds a level of interactivity to marketing, regardless of the media, that no other technology can…and allows the consumer to act on impulse – no need to make a call, tear something out, go online etc.

• Measurability – campaigns can be tracked and monitored

Mobile Attributes

• Qualified Respondents – by “texting in, consumers are expressing a clear interest in your product or brand – these lists if used creatively and responsibly will be an extremely valuable and effective way to reach your audience for years.  (With number portability people may very well keep the same mobile number for their entire lives).

• Low Cost – given the high conversion rates and the relative low cost of using mobile, consumer acquisition costs can be much lower in the mobile space

• High Conversion Rates – we have seen conversion rates on text campaigns as high as 80%.  On average, conversion rates for text have been dramatically higher than print or online (up to 10%)

Mobile Attributes

Telegraph mobile strategy

Build customer interaction

Data collection opportunity

Generate new revenue

Facilitate content collection & distribution

Added value to advertisers

Provide bridge to younger audiences

Brand association new technology

Objectives/Advantages to

mobile marketing strategy

Mobile at The Telegraph 2010 into 2011

Free mobile internet site (Telegraph.co.uk)

Free iPhone apps (e.g. News, World Cup, Crosswords Lite)

Paid apps (e.g. Fantasy Football, Crosswords Full)

Sponsored apps (e.g. F1, TaylorMade Golf, Jaguar)

2m unique users a month

300,000+ News app downloads

280,000+ World Cup app downloads

Fantasy Football app #2 in the paid download chart (250,000+ teams)

Commercially-lucrative potential

Tablets: iPad v1 Free. 126,000 downloads. Sponsored

Tablets (esp. iPad): next mobile frontier

iPad launched in the UK in June 2010 (not years ago!)

+500k in market now… growing fast

Telegraph v.1 app launched in Sep 2010 (free…now!)

Strategy for iPad is core to our future business model

"iPads will save newspapers, they really will.”

- Keith Weed, CMO, Unilever

Pintroll & Ad Marvel Report via BizReport.com 2010

6x longer ad interactions

30 seconds: the average time a user is interacting with an online ad on the iPad

6x: it’s six times longer than he/she is spending on the same ad on a desktop pc.

Compare the no. of days it took to reach 1m units sold!

iPad 2 sold ½m in first weekend!

Further measurement: analytics package

• 1. About the User

• Visits, sessions, visitors

• 2. About the App

• Article or views and product type, outbound links, conversions, media plays by media type (ie video) and title

• 3. About the Device

• Device O.S., connection type

iPad consumers don’t just want the web

Consumers want a highly-curated experience on their tablet devices

Not just a website

Real-time news is not important

Will go to other sources for that

There are some ‘newspaper’ essentials before they will pay e.g. crossword

Personalisation is perceived as an added benefit

August 2010 data: IAB.

Results and feedback

So what now?

iPad Version 2, out now.

– deeper, much more of the newspaper

– Interactive graphics and video

– include crossword and other essentials

– paid-for…or free…

Telegraph iPad v2

The product…

• £9.99 per month for new App Store customers

– ‘Bedrock’ of digital subscriptions

• £1.19 for a daily edition

– First paper to offer this

• The Telegraph iPad edition

– Not the newspaper

• FREE for print subscribers

The key issues

• Learning from V.1 has informed product development

– We have taken the time to get this right; our free app has been a great asset

– Daily edition makes app accessible and provides a great sampling opportunity

• App is added value for existing subscribers

– We’re committed to giving subscribers access to Telegraph when/how they want it

– Builds upon value strategy started with our loyalty programme last year

• Research indicates that the iPad is complementary to the newspaper, not a substitute

– We have an iPad edition with digital features e.g. video, animation

– Supplements, lifestyle content not in the iPad edition: print completes package at weekend

Some proof points

• There are more over 55s with iPads than under 35s

– Resonates with Telegraph audience

• 25% of iPad owners say their iPad usage has been additional to their current media consumption i.e. not at the expense of other media

– The iPad generates more reading occasions.

• 50% of owners share their iPad with other members of their family

– Understanding household consumption patterns is vital (2 per h/hold). “Fair use policy”

Source: YouGov survey of iPad owners, Feb 2011

Already popular feature

• Night Reading Mode…

Normal Reading Mode

Night Reading Mode

But let’s not forget the basics…e.g. the importance of SMS still!

• The first commercial text message was sent in December 1992.

• Today, the number of text messages sent and received everyday, exceeds the population of the planet!

Sponsored ads by SMS MiD DAY provides content via

news alerts to subscriber base (twice a day).

• Challenge: to create subscriber base for news alerts, marketable to advertisers for rev gen. 

• Revenue is generated via advertiser messages at the end of every news alert sent.   

• The service was extensively promoted by MiD DAY through print, radio, online.  

When would you expect mobile usage?

morning forenoon eveningafternoon

way to workget up

office after work

at home

Travel to work

Relevance for mobile advertisers

SMS push messaging

• Big Brother

• X-Factor

• Dancing with the Stars

• I’m a Celebrity…

• Soapstar Superstar!

• Etc.

Reality!

PROSPECTS &CUSTOMERS

PROSPECTS &CUSTOMERS

ABOVE THE LINE

PR & PROMOS

DIGITALMOBILE

ON-PACK

PARTNERSHIPMARKETING

360 degree approach

Four Stage Process

• INTERACTION

• DATABASE

• CONTENT

• REVENUE

• USUALLY IN THIS ORDER!

What Other Mobile Services will we be able to Offer in the Future?

• Location based services (www.socialight.com)

• Couponing/ticketing/bar coding

• 3G/4G development (LTE…faster web, video, voice)

• Enhanced Ad services (“click to call” ads etc)

• Augmented Reality (CGI v reality)

• “Pay for it” services (www.buymeabeer.com)

• Mobile social

• Mobile payment systems…

The Mobile Future!

The Mobile Opportunity• Mobile can add a new dimension to your marketing

• It can rejuvenate products and markets

• It can enhance positioning, brand or service

• It can provide a new, modern way, for customers to interact

• It can generate a powerful segmented, usable database

• It can be an excellent content

distribution method

• It can be a revenue stream

• But…do have a strategy!

The Telegraph media family

SMARTPHONE Breaking news, utility or fun

TABLETHighly curated, once-a-day, aimed at time-

poor, younger demographic

WEB Search-driven; archive and multi-media

Luxurious, complete, older demographic (weekday), lifestyle

(weekend)

NEWSPAPER

Key takeaways/lessons?

• Think about your future audiences and where they will be.

• Talk to mobile experts who can guide you. Remember it’s a new space for everyone. Don’t be afraid to experiment.

• Have a mobile strategy!

• Keep abreast of new developments: new ideas/trends

• Dominate your market with relevant apps/mobile services

• Focus on mobile optimisation of all the content in your ecosystem.

• Be relevant!

• Do something!

Thanks for listening!

mark.challinor@telegraph.co.ukTwitter: @challinor