Presentación de Simon Birkenhead en el Mobile Evolution IAB México-MMA

1. Mobile Marketing in LatAm:
The Myths, the Facts
& the Future_
Simon Birkenhead
Director, Global Advertising Sales

2. Telefonica Digital_
Beyond Connectivity…
Injecting digital into Telefonica

3. Strength of Telefonica
across LatAm region
42%
LATAM
in our operating
countries
91m
24m
20m
19m
14m
13m
12m
10m
5m
2m
Brazil
Argentina
Mexico
Peru
Colombia
Chile
Venezuela
Central America
Ecuador
Uruguay
215 million customers
Source:
World
Bank
Popula2on
2012,
Telefonica
Annual
Report
2012

4. Our mission is to add contextual
relevance to mobile advertising
Location
Demographic
Behavioural
Real-World
Context

5.
Latin America offers a
unique opportunity_

6. 1
Advertisers should think ‘Mobile First’
Latin America Internet Access (millions)
350
300
By 2016:
250
50%
200
of internet
users will be
mobile-only
150
100
50
0
2012
2013
2014
Sources:
eMarketer Aug 2013, Pyramid Research 2013
2015
2016
2017

7. 1
Even more important in Mexico
70%
50% of internet users already rely on a
mobile device to access the internet
60%
50%
40%
30%
20%
10%
0%
2011
Sources:
eMarketer
2013
2012
2013
2014
2015

8. 2
‘Mobile First’ requires a fresh approach
to collaboration and business model
innovation
BUY
WORK
BUILD

9. Buy
Credit:
LUMA
partners
CONSUMER
MARKETER
Mobile LUMAscape

10. Work
SPAIN
UK
M-Commerce
Data
Advertising

11. Build
Mobile Phone Users – LatAm 2013
100%
80%
60%
40%
20%
0%
Argentina
Brazil
Chile
Feature Phone Users
*users
who
own
at
least
one
device
and
use
it
at
least
once
a
month
Source:
eMarketer,
Global
Media
Intelligence
Report2013
Mexico
Peru
Smartphone Users
Colombia

12. Mobile advertising in LatAm is expected
to grow faster than any other region
Mobile ad revenues: CAGR by region (2012-2017)
$79M
LatAm
Middle East/Africa
North America
Western Europe
Global
Central/East Europe
APAC
0%
Source:
eMarketer,
IHS
2013
10%
20%
30%
40%
50%
60%
70%
$600M+

13. But why is mobile
not growing
even faster?
3 myths to
dispel_

15. Latin Americans are very receptive
to mobile ads
Positive about mobile advertising
Adspend per connection
44%
38%
$7.10
$1.00
Asia Pacific
$0.10
19%
11%
Latin America
$2.20
North America
Western Europe
Sources:
WIN/GIA
2013,
eMarketer
2013

16. Even more positive in Mexico
60%
of those familiar with
location-based mobile
ads thought the
service was valuable
In 2013, Mexican
mobile ad spend per
connection is just:
$0.62
Source: , GSMA “Mobile Broadband at the Bottom of the Pyramid In Latin America” 2012, eMarketer 2013

18. Feature phones are mobiles too
Feature phones still
dominate in LatAm
31%
69%
In Mexico:
39%
Sources:
Ovum
2013,
WIN
Gallup
2013,
eMarketer
2013
61%

19. SMS is made-for-mobile and delivers results
Media Amplification
Purchase
Engagement
FOX wanted to raise awareness of
their new TV series ‘The Bridge’, to
support their TV ad campaign.
Elektra wanted to drive participation
in a competition whereby users
received free air time if they toppedup their Elektra account.
Dove wanted to raise awareness of
their ‘Cosquillas’ campaign and drive
engagement via social media.
Result:
67% ad recall
10%
watched the
show
Result:
2.7% topped-up
2.7%
conversion rate
Result:
93% incremental awareness
18%
submitted a video
or photo

20. Brand-sponsored services are proving popular
15%
Engagement
Rate
FREE
SERVICE
Sponsored
data
Ad-funded
service
value
exchange
€
ad
spend
Sponsored
calls
Customers
€
buy
the
product
Brand

21. Sponsored Calls
User
dials
short
code
or
makes
a
reverse
charge
call
120,000
calls
in
Sao
Paulo
alone
Ringback Tones
User
requests
further
info
from
brand
(if
desired)
User
listens
to
30
second
audio
ad
96%
advert
comple2on
rate
Content
User
makes
free
call
to
friend
• SMS
Avg.
2
free
calls
per
• Follow-­‐up
call
user
per
week
• Service
subscrip2on
Fast Food
Beauty
Educational Content

23. Location where smartphone owners ultimately
purchased items researched via their devices
20%
The majority of
mobile conversions
are off-device
Online
Other
3%
In-Store
77%
How shoppers use their phones for shopping
0%
Find directions
Find hours
Make price comparisons
Find promo offers
Browse
Find where specific products are sold
Find product information
Find product availability in-store
Find product reviews
Make purchase
Sources:
eMarketer
(US)
2013,
Google/MARC
2013
20%
40%
60%
80%

24. Case study: Pizzeria Monte Verde
63%
Remembered the ad
59%
Increased intention to
buy a pizza
20%
Purchased a pizza after
receiving the SMS
300%
Increase in pizza sales
Source:
Vivo
Pizzeria
Monte
Verde
survey
using
PublicEye,
2013

25. Key takeaways for mobile success:
Think ‘Mobile First’
Test and learn now
Don’t ignore feature phones
Strive for contextual relevance

26. GoMo!
simon.birkenhead@telefonica.com
@simonbirkenhead