The Mobile, Digital and Social landscape in 2014_ An overview of the challenges and opportunities Paul Fabretti Digital and Social Media Lead Telefonica Europe

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The landscape_ devices, mobility and content

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Growth of the smartphone Price is no longer a barrier_

•  ASP in 2012: $364 •  ASP in 2013: $317

•  Iphone: c.$600 •  Android: $300 •  Non-Google

Android: $180 •  Firefox OS: $80

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Mobile behaviours It’s about Mobility not Mobile

UM Wave Research, Wave 7, 2013

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Mobile behaviours On mobile, you’re one flick away from obscurity_

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Growth of the smartphone And people are doing MORE on the move

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Growth of the smartphone And people are doing MORE on the move

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Mobile payments Explosive growth expected

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Mobile payments Investment in early stage payment start-ups is at an all time high

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Mobile payments Security and ease of use main concerns

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Digital Confidence How important is Trust? •  Concern over the amount of

personal data in social has grown 10% in 2 years (68%).

In general:

•  Just 25% of adults are comfortable with location based data and 23% with online purchasing histories.

BUT

•  73% of consumers would be reassured if they were able to withdraw data on request.

•  66% would like the idea of a dashboard to control data.

O2 Data Dialogue, 2012 UM Wave Research Wave 7, 2013

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The landscape_ social media

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SoMoMe

•  The fastest-growing social platforms are:

§  Mobile-first §  Messaging §  Imaging

•  This presents challenges around brand-inclusion and reach

•  Encroachment on current privacies will push more people to these closed networks

Closed, private 121

+1021% / 325 MAU +170% / 202 MAU

+130% / 150 MAU

+212% / 430 MAU

+403% / 40 MAU 350m/day – 150 MAU

Source: Business Intelligence, 2012-13

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Messaging Growth OTT grows, SMS crawls

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Messaging apps

•  Xiaomi sold 100,000 of their flagship Mi3 devices in 86 seconds

•  Sold out (150,000 units) in 10 minutes – Nov 2013

•  20% ($31.5m) of Line’s revenues come from stickers

•  30% comes from partnerships, sponsorship and paid-for brand pages

Modest monetisation, but still monetisation

Source: Business Intelligence, 2012-13

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Social behaviours Understand why people use social_

•  Learning •  Relationships •  Diversion •  Progression •  Recognition

UM Wave Research Wave 7, 2013

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Social behaviours Understand why people use social_

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Social behaviours Turn this insight into effective content

Themes

Topics

Channel

Medium

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Paid media No longer a nice to have

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Paid media Your fans are not your goal

National Population

Friends of Fans

Fans

Social connections

Custom Audience “match”

Loose “affinity”

Owned Site

Owned content sharing

Paid/earned interaction -> clicks

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From Social Brands to Social Businesses NOT the same thing_