P

1. What media
should learn MOBILIZING
from the
mobile MEDIA
ecosystem INDUSTRIES
I International Conference
Technological Innovation in a
Mobile World
Murcia, December, 7, 2012
Juan Miguel Aguado
Facultad de Comunicación y Documentación
jmaguado@um.es

2. The "Evolution of Mobile Media:
background Content formats, Main
Players, Business Models
and Users' Perception"
4 year research project
Cualitative approach
Exploring industry reports
Expert pannels with productive players
In depth interviews and focus groups
with users and developers
Content Analysis of reference apps
Validation workshops
Media industries driven approach
consolidate viable hypothesis
TO
get a wide picture of the mobile
ecosystem's influence in the digital regarding the impact in media
content landscape ecosystem transformations

3. Traditional
cultural industries
The context
A perfect storm
Multidimensional crisis
Digital ecosystem

4. The context
A perfect storm
Multidimensional crisis
Revenue sources
Advertising revenue sinks
Digital advertising helps, but not
enough (low CPM)
Standard pay per access also
drops as new (digital) access to
content increases availability

5. The context
TV Mobile Online
5000 4621
3698
3750
2500 2162 2162
1920
1171
1250 1012 907 806
358 392
80 55 160267
0
year 1 year 2 year 3 year 4 year 5

6. The context
Ad revenue in the 5 first years
TV Mobile Online
5000
4621
3698
3750
2500
2162 2162
1920
1171
1250 1012
907
806
358 392
267
80 160
55
0
year 1 year 2 year 3 year 4 year 5
(Source: Business Insider Intelligence, 2012)

7. The context
Shrinking audience
Source: eMarketer, 2012

8. The context
Shrinking ad share
Source: eMarketer, 2012

9. The context
Lack of reliable,
homogeneus metrics
The paradox of digital /
mobile advertising

10. The context

11. The context
A perfect storm
Multidimensional crisis
Revenue sources

12. The context
A perfect storm
Multidimensional crisis
Revenue sources
APPLICATION Distribution model
STORES Platforms as the new
intermediaries
Application stores become a
prevalent digital distribution
channel

13. The context
75%
of EU big 5 smartphone
users used mobile
media in 2012, up to
62% since last year
Source: ComScore, 2012

14. The context
Mobile App Store Downloads, Worldwide,
2010-2015 (millions of downloads)
2011 2012 2013 2014 2015
Free 22,044 40,599 73,280 119,842 188,942
Paid-for 2,893 5,018 8,142 11,853 16,430
Total 24,936 45,617 81,422 131,695 205,376
Free dwn % 88.4% 89.0% 90.0% 92.0% 93.0%
Free Downloads Paid-for Downloads
225000
150000
75000
Sources: Cheetan Sharma
Consulting, 2010; Distimo,
2012, Gartner, 2012.
0
2011 2012 2013 2014 2015

15. The context
Daily average media Mobile Internet use by
use type
76 min/day 80 min/day
WEB APPS
Source: Inmobi, 2012. Source: The App Date, Spain, 2012.

16. The context
AND EVEN MORE
The new distribution
model expands beyond
mobile devices
It becomes a trend
in the digital world

17. The context
AND EVEN MORE The new distribution model
takes over the traditional direct
relation between content
brands and audiences
De-intermediation /
Re-intermediation
USERS CONTENT CONTENT
INTERMEDIARIES CREATORS

18. The context
AND EVEN MORE The new distribution model
takes over the traditional direct
relation between content
brands and audiences
De-intermediation /
Re-intermediation
PLATFORMS CONTENT
INTERMEDIARIES
CONTENT
CREATIVE USERS APP STORES
CREATORS

19. The context
A perfect storm
Multidimensional crisis
Revenue sources
APPLICATION
Distribution model
STORES

20. The context
A perfect storm
Multidimensional crisis
Revenue sources
APPLICATION
Distribution model
STORES
Management structures
Rigid structures as barriers to
innovation (Feijóo et alt, 2012)
High production/distribution costs
make difficult to adapt and to take
risks (Ibid.)
Management structures focused on
distribution (Aguado, 2010)

21. The context
A perfect storm
Multidimensional crisis
Revenue sources
Distribution model
Management structures
Business model

22. The context
Content-centric value chain
Audience attention is the main asset
The impact of Internet culture
ADVERTISING
AUDIENCE
BRAND
DISTRIBUTION
CONTENT
CHANNEL
TRADITIONAL MEDIA
PAY PER ACCESS

23. The context
User-centric value chain PAY PER ACCESS
Platforms take over ADVERTISING
access to audiences
Control digital
advertising
platforms DIGITAL (MOBILE)
(networks and PLATFORMS AUDIENCE
metrics)
DISTRIBUTION
CHANNEL
Push to dominate
functional BRAND
payment
channels
CONTENT

24. What media industries
should learn from the
mobile ecosystem

25. Users are becoming digital
1 omnivores

26. Users are becoming digital
1 omnivores
Sequential vs simultaneous
Co-ordinated vs overlapped
MULTI SCREEN USE
Source: Google & Ypsos, 2012.

27. Lean forward
medium
Lean back
medium
LABOUR DAY
DAILY
ACCESS TO
NEWS SITES
USA
WEEKEND
Dic. 2011
Sources: Google & Ypsos, 2012; Comscore, 2012.

28. Creating added value for
Multi-screen consumption...

29. Content gets rid of medium
2
CLOUD STORAGE AND SYNCHRONIZATION
Relevance shifts from the medium to the BRAND

30. ... and becomes the core of
3 business strategy for
software / hardware industries
CORE Social
Hardware Search engines E-commerce
ACTIVITY Networks
BUSINESS Devices +
Advertising CONTENT Advertising
MODEL components
EXPANSION Devices + CONTENT +
CONTENT CONTENT
STRATEGY platforms distribution

31. ... and becomes the core of
business strategy for
3 software / hardware industries

32. Content is not the end
4 of the usage process
Mobile devices are perceived
as RELATIONAL TECHNOLOGIES
People DO (and want to do)
things with content
APPS=
content +
management

33. Content is not the end
4 of the usage process
Mobile devices are perceived
as RELATIONAL TECHNOLOGIES
People DO (and want to do)
things with content
From the logics
of VIEWING to
the logics of
DOING

34. Content is not the end
4 of the usage process
Content becomes a
medium for social relations
From the logics
of VIEWING to
the logics of
DOING

35. Content is not the end
4 of the usage process
Content becomes a
medium for social relations
BRAND CONTENT DISTRIBUTION
SOCIAL INTEGRATION
CHANNEL OF CONTENT
From the logics
of VIEWING to TRADITIONAL VALUE CHAIN
the logics of DIGITAL VALUE CHAIN
DOING
What users do with content
enters the digital environment

36. Mobile devices emphasize
5 the user/device link
Univoque link
user/device
facilitates
coherent user
profiles

37. Mobile devices emphasize
5 the user/device link
Univoque user/
device link
facilitates
coherent user
profiles
User activity with
content becomes a
relevant data source PLATFORM
for user profile
enhancement

38. Mobile devices emphasize
5 the user/device link
Platforms put the user in the very core of their
business model
The battle for
browsers Cloud
synchronization &
storage
User
Cross media
Tracking
content
Toools

39. Mobile devices emphasize
5 the user/device link
CONTENT
INTEGRATION INTO AUDIENCE
PLATFORM USERS' SOCIAL
ACTIVITY
Improve user Content as a
profile language for
exploitation social exchanges
New source of Digital
added value in egospheres
digital content
value chain Privacy and
transparency
issues

40. The seeds of an alternative
content value chain
Capturing big amounts of Capturing big amounts of
indiscriminated audiences information about hyper-
segmented audiences
Control over production
Control over metrics and
and distribution structures
user profiles

42. User engagement (apps downloaded per user) The game has just started
Horizon for the development of apps as dominant mobile
content format
25,0
MATURITY ZONE
20,0 USA
UK
15,0 Netherlands
Germany Sweden Spain
Russia France
10,0
CHINA Italy
5,0 Brasil Poland
INDIA
OPPORTUNITY ZONE
0,0
0% 10% 20% 30% 40% 50% 60%
Smartphone penetration
Source: Distimo, 2012; Vision Mobile, 2012; Comscore, 2012

43. Juan Miguel Aguado
jmaguado@um.es
webs.um.es/jmaguado
mobmediaresearch.wordpress.com
THANK YOU