Mr. Tomi Ahonen Mobile Digital - Ncell App Camp 2014

"Tomi Ahonen is the most influential expert in mobile." - Forbes January 11, 2012

Tomi T Ahonen, MBAAuthor and Consultant

Twitter: @tomiahonen

Ncell App CampKathmandu, Nepal

9 December 2014

Mobile: The Magical Money-Making Machine of

Digital Convergence(Keynote)

The Numbers

Now into uncharted territory...

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1964 1969 1974 1979 1984 1988 1994 1999 2004 2009 2014

Global Media End of 2014

Source: TomiAhonen Almanac 2014

Population 7.2B

FM Radio 4.2B

PC 1.5BLandline 1.0B

Mobile 7.3B

Internet 3.0BTV 2.1BSmartphone 2.0B

The 10 Dollar iPhone?

• Ah, the relentless pace of Moore's Law... Take any 'superphone' of 2010 like iPhone 4, Nokia N8, Samsung Galaxy, Blackberry Bold, etc

• Summer 2010: unsubsidised price of: US $600 gave you touch screen, 3G, WiFi, GPS, 8mp & flash

• Winter 2011, same phone would cost $300. Summer 2013: $150; winter 2014: $75 summer of 2016: $38; winter 2017: $19

• By summer 2019 cost of same specs of what was condered superphone in 2010 would be $10 (including marketing & profit)Projection: TomiAhonen Consulting July 2010

The 10 Dollar iPhone?

• Ah, the relentless pace of Moore's Law... Take any 'superphone' of 2010 like iPhone 4, Nokia N8, Samsung Galaxy, Blackberry Bold, etc

• Summer 2010: unsubsidised price of: US $600 gave you touch screen, 3G, WiFi, GPS, 8mp & flash

• Winter 2011, same phone would cost $300. Summer 2013: $150; winter 2014: $75 summer of 2016: $38; winter 2017: $19

• By summer 2019 cost of same specs of what was condered superphone in 2010 would be $10 (including marketing & profit)Projection: TomiAhonen Consulting July 2010

JiaYu G2F: 4.3inch touch screen, 3G, WiFi, GPS, 8mp camera. Launched May 2014 Cost US$81 (499 RMB)

The Consumer and Mobile

We look at our mobile 221 times per day

221 Times Per Day• The stats of our mobile phone use keep growing• Latest survey by Tecmark in UK of 2,000 smartphone owners

finds that the average UK smartphone owner looks at their phone 221 times per day

• Thats once every 4 minutes and 18 seconds of every waking hour

• We also stare at the phone screen now 3 hours per day on average, so 18.9% of the time we are awakeSource: Daily Mail 8 Oct 2014

Where Vietnam Uses Mobile Web

• Vietnam has 19.5 million mobile web users (22% of population). 85% are from smartphones.

• 70% use mobile internet while in bed• 55% while waiting for something• 17% while watching TV• 16% while commuting• 10% in meetings• 9% while shopping

• 6% on toiletSources: Google, Nielsen, Inmobi: MMA Forum Vietnam October 2013

South Africa Mobile 2014

• MMA reported on South African mobile users:Send sms 85% MMS 34%

Take picture 62% Search 34%

Listen to FM radio 42% Vote on TV 24%

Access internet 41% Download Ringtone 23%

Use Instant Messaging 38% Email 20%

Download music 37% Play games 17%

Social media 36% Download apps 14%Source: MMA South Africa Digest 2014

US Teen Survey: Its still SMS• Brand new Niche survey of 7,000 USA teens in 2014

on their daily use of their cellphones• 87% use SMS• 61% use Facebook• 55% watch YouTube• 51% use Instagram• 46% use Snapchat• 34% place voice calls

Source: The Atlantic 19 June 2014

US Teen Survey: Its still SMS• Brand new Niche survey of 7,000 USA teens in 2014

on their daily use of their cellphones• 87% use SMS• 61% use Facebook• 55% watch YouTube• 51% use Instagram• 46% use Snapchat• 34% place voice calls

Source: The Atlantic 19 June 2014

In 2014, in the USA, among the youth, still today: basic SMS text messaging reaches a 43% larger US teen audience than Facebook.

Texting Helps Grammar• UK university study reported in the Journal of Developmental

Psychology finds that children who send lots of SMS text messages do not suffer from spelling or grammar problems

• With a follow-up study a year later of the school-aged children, the heavy use of messaging actually improved grammar skillsSource: The Telegraph 13 June 2014

South Africa - Please Call Me• Vodacom in South Africa introduced free ‘Please Call Me’ service, so

anyone who cannot afford to call, can send free SMS to family or friend and ask them to call. Now rival networks also offer same

• Call Me is sponsored by advertising• Caller pays normal calling rates• 87% of South African adults have sent PCM message and 100% have

received a “PCM” request Source MMA South Africa Digest 2014

10% use during Sex• Astonishing finding by latest Harris poll in the USA: • 10% of US adults admit to having used their mobile phone while

having sex

• This is consistent with earlier findings out of UK by Zeldi and Retrovo of the same level use

Source: Harris Poll 2013

New Zealand Mobile Web• Vodafone statistics at the annual Tel.Con conference:• 38% have settled bet by finding answer on phone• Source: Vodafone NZ presentation at Tel.Con in Auckland April 2012

The Truth is In My Pocket

Mobile and Media

Mobile is the 7th Mass Media

The 7 Mass Media

Source: Ahonen book Mobile as 7th of the Mass Media, 2008

1st mass medium Print 1500: books, newspapers, magazines

2nd medium Recordings 1890s: music, games, movies

3rd medium Cinema 1910s

4th medium Radio 1920s

5th medium TV 1950s

6th medium Internet 1995s

7th medium Mobile 2000s

Source: Tomi Ahonen book The Insider's Guide to Mobile, 2012

Tomi: Mobile Has 9 Unique Benefits1. Mobile is first personal mass medium

2. Permanently Connected

3. Always Carried

4. Built-in Payment Channel

5. Available at Creative Impulse

6. Has Most Accurate Audience Info

7. Captures Social Context of Consumption

8. Enables Augmented Reality

9. Offers Digital Interface (to real world)

Unique benefit number 1 of 9:Mobile is first personal mass medium

First four benefits identified by Tomi T Ahonen about 7th Mass Media in 2006

Kenya Mobile Exam Prep• SMS based exam prep by Eneza via mobile for high school entrance exams (at age 12)• Costs 10 US cents per week including exam prep questions & cost of student responses• Results? 35,000 students already use the prep.• Students using the system alone achieved 5% improvement in exams. When teachers

involved in classroom, the performance boost is 11% Source: Take Part 29 Sept 2014


Unique benefit number 2 of 9:Mobile is permanently connected

Hershey Cocoa Link

• Hershey SMS based Cocoa Link in various African languages from 2011, to help Cocoa farmers.

• Over 100,000 farmers using Cocoa Link already. • Farmers have increased Cocoa yields by 15%-40%

Source: mTrends Mobile Opportunities in Africa 2013

Unique benefit number 3 of 9:Only mobile is always carried


79% consume news in China

• Research from the Time Mobility Poll of 4,700 people in 8 countries in 2012 found:

• 79% of Chinese consume news via their mobile phones (vs 49% globally).

• Most of the news services are branded news such as mobile versions of major newspaper headlines and run on SMS and MMSSource: Time presentation at MMA Forum 8-10 May 2013


Unique benefit number 4 of 9:Mobile has built-in payment channel

Price Compare AND Instant Shop

• Moneymarket Com in Ghana offers mobile price comparison service which including instant-buy links

• Consumers can do regular price-shopping• Stores can join with instant-buy links using Airtel mobile payments making

best-price shopping effortless• 25% of Ghana’s mobile phone owners use mobile payments

Source: Mahindra Comviva presentation at Mobile Web Africa conference in Johannesburg 10-12 September 2014

Thank you Tony Fish for discovering this fifth benefit in 2007

Unique benefit number 5 of 9:Mobile is available at creative impulse

Wikipedia via SMS & USSD

• Bharti Airtel Kenya offers free Wikipedia searches for featurephone users via USSD and SMS *515#

• Each first SMS free, more detail cost regular SMS

• 118,000 users searched 660,000 times in first 6 months

• They will expand the service to cover 70 million mobile phone users in Africa and AsiaSource: Praekelt Presentation at Mobile Web Africa Conference 10-12 Sep 2014

Thank you AMF Ventures for discovering this sixth benefit in 2007

Unique benefit number 6 of 9:Mobile measures audience accurately

Kan Khajura (‘Radio’) Station • Unilever has launched a ‘proper’ radio channel that offers them an

exclusive radio advertisement channel for all their brands.• The Kan Khajura ‘radio’ station is a free voice service on mobile phones• Users dial a ‘missed call’ then they receive 15 minutes of voice ‘radio’

entertainment like Bollywood music and jokes, plus ads• 24 million signed up. 8 million regular listeners. 25.5% of the target

audience is signed up

• In 6 months 2.3 million hours of media plus served 70 million ads Source: Cannes Lions 2014

Thank you Alan Moore and Xtract for discovering this seventh benefit in 2008

Unique benefit number 7 of 9:Only mobile captures social context

NFL Fans Text While Watching• RadiumOne survey of 1,501 NFL fans: 56% send SMS text messages

while watch games on TV. • Compare with 41% who use use social media like Facebook, Twitter

Source: Adweek 8 Oct 2014

Unique benefit number 8 of 9:Mobile enables augmented reality

Thank you Raimo van der Klein of Layar for discovering this 8th benefit in 2009

• Layar is now deployed digitizing newspaper ads. Their solution lets any page be digitzed in just 60 seconds

• Canadian publisher of local newspapers Glacier Media says they sell AR upgrades to print advertisements for 99 dollars each

• This AR premium advertising solution to newspaper ad sales has already earned 7.5 million Canadian dollars in first quarter of 2013Source: Peter Kvarnstrom at WNC13 newspaper event, May 2013

Augmented Reality (AR) and Print Media

Thank you Russell Buckley for discovering this 9th benefit in 2011

Unique benefit number 9 of 9:Mobile offers a digital interface

Press The Button - For Pizza!• Red Tomato Pizza in UAE offers a fridge magnet with GSM chip, hard-coded call

number, users configure pizza on magnet: press button to order Source: T-3 presentation at MMA Forum New York City, 8-10 May, 2013

Grand Convergence

As Methodology to Understand Near Future

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GamingMusicBroadcast

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2014: Grand Convergence

Theory by Tomi T Ahonen 2002-2014



Internet

Computers

Gaming

MusicBroadcast

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65%

90%

60%

45%50%

60%

70%

65%

85%

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m-Banking 51% of Kenya GDP

• M-Pesa by Safaricom is now 6 years old. Kenya now has 6 more mobile payments providers: Airtel, Orange, Yu, Zioncell, Tangaza Pesa, Finserve. Kenya population 40M (26M age 18+) 80% adults m-banking account, 2.5x more than 'real' bank acct

• Central Bank of Kenya says total mobile transactions worth 22.4B USD. Kenya's GDP is 44.1B USD

• At end of 2013, 51% of Kenya GDP runs via mobileSources: Coastweek 31 Jul 2014, Mahindra Comviva 11 Sept 2014

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Smart Billboard

• British Airways identified actual flying BA jets above London with smart billboards.

• The child would point to the plane above and the billboard correctly identified the BA plane. Source: Cannes Lions 2014

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Click-to-Buy SI Swimsuit App• Sports Illustrated introduced freemium to Swimsuit edition in 2009.

Premium edition cost $1.99. 10% who saw free app, bought via click-to-buy link

• The 2013 edition had 500,000 downloads of the free version and the upgrade now costs $7.99. Has 360 degree views of models

• SI have not published how many are now buying the premium version but as price is up, likely its still a very good seller. If only 10% bought it like before, SI earned $399,500Source: Adweek 18 May 2014

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Missed Calls to Jokes in India

• Laundry detergent brand Wheel in India ran free media entertainment advertising campaign for rural areas using missed call

• They hired top Bollywood star Salman Khan to create 30 voice based short stories in the form of jokes. Audience got number for missed call. Generated return call with recording of star telling joke

• Reached 1.5 million consumers, generated 18.2 million missed calls.

• Detergent sales up 300%Source: Mindshare presentation at MMA Forum Vietnam 23 Oct 2013

Missed Calls to Jokes in India

• Laundry detergent brand Wheel in India ran free media entertainment advertising campaign for rural areas using missed call

• They hired top Bollywood star Salman Khan to create 30 voice based short stories in the form of jokes. Audience got number for missed call. Generated return call with recording of star telling joke

• Reached 1.5 million consumers, generated 18.2 million missed calls.

• Detergent sales up 300%Source: Mindshare presentation at MMA Forum Vietnam 23 Oct 2013

Internet

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Hijack Customers from Competitor• Guatemala sports shoe store chain Meat Pack hijack campaign when visited rival

shoe stores. Geo-located every store in Guatemala of rivals. Then they invited their own customers to opt in to mobile marketing

• For one week when their registered opt-in customer visited a rival store, the customer received timed offer of discount to come to the nearest Meat Pack

• The discounts were on count-down, starting at 100%, then 99%, 98%, 97% etc until customer entered store

• 600 customers were hijacked in one week. Highest discount achieved was 89%Source: Cannes Lions International Awards May 2013 (Agency: 4AM Saatchi & Saatchi, Guatemala)

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Drinks: Voice Call Airtime

• Coca Cola has installed Coke-themed Happiness phone booths in Dubai to allow migrant Pakistani workers to call home with every bottle of Coke

• The ‘currency’ for the special phone booths is the plastic bottle-top. Each bottle bought earns 2 minutes of talk time from Dubai to PakistanSource: Coca Cola May 2014

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...Dance!• Win Coke loyalty points by playing adventure game on South

Korea's streets 'Coke Play'• Win points also by dancing, or buying Coca Cola• Redeem points with smartphone apps,songs, airtime, or

Coca Cola products• Campaign had 933,000 South Koreans participating

Source: Coca Cola presentation MMA Forum Singapore August 2013

...Dance!• Win Coke loyalty points by playing adventure game on South

Korea's streets 'Coke Play'• Win points also by dancing, or buying Coca Cola• Redeem points with smartphone apps,songs, airtime, or

Coca Cola products• Campaign had 933,000 South Koreans participating

Source: Coca Cola presentation MMA Forum Singapore August 2013

So Coca Cola is now in the money business..

Mobile is the Magical Measurement Machine

27M M-Web Audience in Brazil

• Globo the Brazilian media giant has four versions of mobile screens• Globo had 27 Million visitors to their mobile sites using featurephones

and smartphones. This is a third of total Brazilian internet audience. • Average user visits Globo mobile 6 times per month, and sees on

average 4 pages during visitSource: book Fast Shopper, Slow Store by Gary Schwartz 2013

Capture Music Into Score

• DoReMir of Sweden has launched the ScoreCleaner app that allows smartphones to listen to any music and convert it accurately to its music score, including live singingSource: Cannes Lions May 2013

Measure Cup Size. By Phone?• A startup in the USA called ThirdLove (some ex Google execs and some NASA

scientists) have found a way to use the selfie camera function to measure bra sizes accurately.

• Apparently 80% of women wear a wrong size bra because accurate measurement was so clumsy. Source: Fast Company 30 March 2014

Measure Trees? By Phone..

• Trestima in Finland has business app for forestry management by taking pictures with smartphone camera.

• 12x faster and 2.5 times more accurate than the older method of walking in forest physically counting treesSource: Good News from Finland 30 Sept 2014

Use Mobile Number as Password

• Twitter has introduced ‘Digits’ ID option for its users. • Now if any Twitter user wants to sign onto any app running on

Twitter, they can simply use digits from their mobile phone number

• Note: Twitter’s users in the UK and USA who access always or sometimes from mobile phones has reached 84% in both countriesSource: The Telegraph 22 Oct 2014

Finnair Mobile Check In • Finnair started mobile check-in late in 2001. • By 2010 half of Finnair

frequent fliers using it • Latest version by Book It

offers Finnair instant upgrade: After passenger checked in economyclass, they are offered instant upgrades paid by credit card or frequent flier miles!

• 23% who received offer have used it for upgradeSources: SITA 2011, Book It 2013

Finnair Mobile Check In • Finnair started mobile check-in late in 2001. • By 2010 half of Finnair

frequent fliers using it • Latest version by Book It

offers Finnair instant upgrade: After passenger checked in economyclass, they are offered instant upgrades paid by credit card or frequent flier miles!

• 23% who received offer have used it for upgradeSources: SITA 2011, Book It 2013

Am Here Because of You

If you like my slides...

I am here to meet YOU..

Who Wants My 10th Book?

Available Now Free on Lulu.com: 350 pages

And Finally Some Magic

The true power of mobile

Talking Statues in London

• London has introduced interactivity to many of its most popular statues. Famous actors have created audio recordings so that visitors can hear the statues speak. Service activated via QR code or NFCSource: 2D Code 19 Aug 2014

• Sephora has introduced an AR make-up mirror app that lets users pre-test various makeup on their own faces virtually, using the AR mirrorSource: Site Pro News 26 Aug 2014

AR Make-Up Mirror

"The world will change more in the next 10 years, than it has in the previous 100 years."

- Chetan Sharma, 7 July 2011

Thank you

Twitter @tomiahonencommunities-dominate.blogs.com

[email protected]

Follow Tomi on Twitter and his blog..

Tomi T Ahonen, Author & ConsultantCompetitiveness, Business Case, Marketing, and Profitability

• Provides workshops, training and consulting in how to make money with mobile adn converged services.

• The world's most prolific new mobile service evangelist, has introduced over 1,000 new service concepts at public conferences; is quoted in 120 books by his peers

• Quoted in over 400 press stories in a dozen languages; keynotes at over 300 major conferences on 6 continents; his daily blog is syndicated on CNBC, NY Times, etc

• Lectures at Oxford University on 3G and Convergence• Available as a motivational speaker at your event!• Read his bestsellers "Digital Korea", "Communities Dominate Brands", “Mobile as 7th of the Mass

Media” etc

website: www.tomiahonen.com e-mail: [email protected]

blog: communities-dominate.blogs.comtwitter: @tomiahonen

• Tomi's newest book "The Insider's Guide to Mobile"

Earlier Tomi Ahonen has set up & run Nokia’s 3G Business Consultancy. Previously he worked for 3 operators where he created the world’s first fixed-mobile service bundle and set a world record for taking market share from the incumbent

"Service creation and marketing will be key to 3G," Ahonen said. Total Telecom 12 October 2000

Bonus Info

Mobile Subscribers, Unique Users, Phones

Source: Tomi Ahonen Amanac 2014 - see www.tomiahonen.com - 191 page eBook only 9.99 Euros

Price Pyramid of Mobile Phones

Source: Tomi Ahonen PhoneBook 2014 - see www.tomiahonen.com - 191 page eBook only 9.99 Euros

Tomi Ahonen Books:2013 TomiAhonen Almanac 2013 (ebook: tomiahonen.com)

2012 TomiAhonen Phone Book 2012 (ebook: tomiahonen.com)

2012 Mobile Forecast 2012-2015 (ebook: tomiahonen.com)

2011 Pearls Vol 3: Mobile Money (ebook: tomiahonen.com)

2010 The Insider's Guide to Mobile (free ebook: lulu.com)

2009 Pearls Vol 2: Mobile Social Networking (ebook: tomiahonen.com)

2009 Pearls Vol 1: Mobile Advertising (ebook: tomiahonen.com)

2008 Mobile as 7th of the Mass Media (hardcover: futuretext)

2006 Digital Korea (hardcover: futuretext)

2005 Communities Dominate Brands (hardcover: futuretext)

2004 3G Marketing (hardcover: John Wiley)

2002 M-Profits (hardcover: John Wiley)

2002 Services for UMTS (hardcover: John Wiley)

see all Tomi T Ahonen's books with links at www.tomiahonen.com

Tomi's Mobilista Primus Inter Pares TW List• If you are in mobile and on Twitter, the 'must follow' Twitterati in addition to @TomiAhonen are Tomi's Primus Inter Pares list:

• @AjitJaokar - author of tons of mobile books, advisor to governments• @CarolineWIP - Caroline Lewko author, expert on the developers• @ChetanSharma - Chetan Sharma author, best view to US stats & industry• @DW2 - David Wood ex CEO of Symbian• @EOrtiz - C Enrique Ortiz author on mobile tech

• @Ew4n - Ewan MacLeod, editor of Mobile Industry Review• @FjordMark - Mark Curtis author ex CEO of Flirtomatic, now at Fjord• @JMacDonald - JMac Jonathan MacDonald the author and superguru

• @KimDushinski - Kim Dushinski author on mobile marketing• @MTrends - Rudy De Waele what can I say, a mobile social butterfly

• @PGolding - Paul Golding author on mobile apps, web, tech• @RussellBuckley - Russell Buckley author ex MMA Chair ex Google ex Admob• @TechnoKitten - Helen Keegan runs Swedish Beers

• @Textually - Emily Turrettini editor of Textually and Ringtonia• @TonyFish - Tony Fish mobile author but also guru on digital identity & privacy

• @Torgo - Daniel Appelquist author & mobile strategist now with Bluevia• @Wireless_Watch - Lars Cosh-Ishii editor Wireless Watch Japan, MoMo Tokyo

The Guru's Bookshelf in Mobile:• Mobile as 7th of the Mass Media, Tomi T Ahonen, 2008• Communities Dominate Brands Ahonen & Moore, 2005• My Digital Footprint, Tony Fish, 2010• Global Mobile, Bruck & Rao, 2013• Mobile Marketing Handbook (2nd ed), Kim Dushinski, 2012• Fast Shopper, Slow Store, Gary Schwartz, 2013• Mobile Advertising, Sharma, Herzog & Melfi, 2008• Digital Korea, Ahonen & O'Reilly, 2007• No Straight Lines, Alan Moore, 2011• Social Gaming, Schmid, Talos & Aguilina, 2013• Mobile Internet for Dummies, O'Farrell, Levine, et al 2008• Digital Money Reader, Dave Birch (ed), 2011• 3G Marketing, Ahonen, Kasper & Melkko, 2004• ...And of course The Dilbert Future by Scott Adams..

Technology

Mr. Tomi Ahonen Mobile Digital - Ncell App Camp 2014