Presentation by Graham Brown of MobileYouth.org to Telenor Djuice focusing on Youth trust, increasing customer loyalty and key factors required by a mobile brand to create relevant dialogue

1. mobileYouth 2008 marketing & advertising 2 halves

2. SESSION 1A About Youth A story of 2 brands

3. MobileYouth: Perspective Simple

4. MobileYouth: 3 Key Questions 1) Who are they? 2) What do they want? 3) How do we give it to them? Since 2001 Good/Bad News

6. Insights in Coffee Drivers are timeless OTS Video

7. Intro ~ What do youth want? mobileYouth on the street video 1 Break

8. SESSION 1B The Business Case Lifetime value

9. Business Case Lifetime Value Global Mobile Youth will spend an average of $28,000 in their lifetime on mobile services (measured by their phone bill). By aged 35, the lifetime value of the consumer has already halved highlighting the importance of establishing relationships at an earlier age. Implications Chasing ARPU here and now means the mobile industry compels itself to seek the higher spending customer – ie the 30+ demographic even though their lifetime value, propensity to adopt new services and value to product development is lower. By adopting a longer term focus on the relevant metrics – loyalty/churn for example – organizations will be more geared towards investing resources into consumers who do not return an immediate payoff. Changing the metrics is key to breaking the hand-to-mouth cycle that fuels telecoms marketing. Youth Lifetime Value by age 35, the average consumer has already expended half of their lifetime spend on mobile Source mobileYouth data remaining lifetime value of consumer to operator ($US 1,000s) halfway } 50% expended Biz case

10. Mobile Youth - The business case Adding 100 million new subscribers a year $2 trillion growing to $3.5 trillion by 2017 50% of lifetime value expended by age 35 Most likely to tell friend about a mobile service. WOM most influential advertising Highest data ARPU as a % (nearly 40%) Heaviest consumers of mobile search (market to grow to $4 bn. by 2012) Heaviest consumers of widgets & mashups Fut revs/adv

11. Marketing Trend $5 billion market Mobile advertising remains relatively small – at 10% of the total online marketing spend. However, we anticipate that mobile will grow from 10% of the combined digital (online/mobile) budget in 2008 to just under 20% in 2011 – a doubling of relative importance within the marketing mix. Mobile advertising will grow in 3 ways – 1) In direct revenues - $5 to $16bn 2008-11 2) As a core component of integrated marketing strategies 3) Mobile merchandising Implications Most brands are reluctant to engage until they see definitve metrics that can assure their media planning of a like-for-like displacement of spend. However, beyond the simple campaign - the real value of mobile in customer service, product development and dialogue building does not translate today into a like-for-like comparison of metrics. Growth of Mobile Advertising Market to double every 2 yearsr worldwide mobile advertising spendng ($US millions) Source mobileYouth based on eMarketer data 2007/8 Receptive?

12. Business Case Mobile Advertising Youth are key to evolution of the mobile advertising sector. Although they spend relatively less on mobile, they have a higher lifetime value and, importantly, are nearly 80% more likely to recall brands featured in mobile advertising. Initial market progress will occur with these consumers as opposed to the more resistant older generations. Implications Industry often cites 30-39 as the typical advertiser target profile on mobile because they spend more, yet mobile marketing is relatively germane and the value of engaging a substantial development lab in the form of young consumers is highest in a market that is still relatively underserved. Youth and Mobile Ad Recall Young consumers have highest recall rate of mobile advertisements % who recalled brand based on mobile ad received Source mobileYouth based on Limbo data 2007/8 Biz case 2

13. Mobile Youth - The business case Mobile spending starts to plateau at under $300bn “the ARPU ceiling” Are we limiting our revenues to the phone bill? Can Channel ARPU provide growth? Mobile advertising $5bn to $16bn by 2012. Youth are most likely to recall brands marketed via mobile (41% vs. 18%) ~ particularly in SNS context Age group most comfortable with profiling Age group most likely to buy on phone Trust

14. SESSION 2A Trust

15. What is important to youth? mobileYouth on the street video 2 Healthcheck

16. Mobile Operators Brand Health-check Youth trust for handset brands significantly higher than that for operators (52 vs. 27%) (NB:Europe showed lowest figures) Youth churn continues to rise (35% pa) Significantly higher than the all-industry averages Youth ranked their “wants” from operators as: 1) better package 2) better customer service 3) better choice of handsets 4) new services/technologies DNA vs Need

17. mobileYouth Trend #8 Marketing and Strategy = different goals? Most marketers prioritize the need to achieve customer satisfaction (75%) and retention (65%) as core organizational goals yet most report budgets focused on acquisition (52%) rather than retention (48%) As long as the DNA of the organization (ie the metrics) remains focused on acquisition, tactics will replicate regardless of strategic objectives. Implications Strategic dissonance represents a classic case of the disjunct of organizational need and the organizational habit. For decades, the need to drive net additions in services and technology have ingrained organizational habit into measuring and focusing on high impact, low sustainability marketing tactics that place premiums on awareness, impressions and column inches. However, need now requires habit to change and it is C-level leadership that needs to take initiative in directing the organization through introducing co-operative metrics. Yet... Marketers Rated “Customer Satisfaction” & “Retention” as #1 Priorities Source mobileYouth based Andersen Analytics data 2008 % of marketers who identified this as a key focus for 2008 strategy What we do...

18. When organizational DNA gets in the way Fail is okay

19. Youth also make mistakes Dialogue

20. SESSION 2B Youth Marketing

21. (Video) How can Telenor build trust through dialogue ? Marcomms Mass Market

22. (Video) How can Telenor build trust through relevance ? Clarity

23. (Video) How can Telenor build trust through clarity ? Relevance Remarkable

24. (Video) How can Telenor build trust by being remarkable ? More videos, more info

25. mobileYouth.org Blogging mobile, youth, marketing and branding trends since 2001 with articles by Josh Dhaliwal and Graham Brown As always, free to read. Includes presentations and videos published by mobileYouth and partners http://www.mobileYouth.org mobileYouthNet.com Networking professionals in the mobile youth space. Watch on-the-street videos of our reporters talking to youth about mobile and marketing. Events calendar, discussion, contacts and more. Join today for free at http://www.mobileYouthNet.com About mobileYouth & mobileYouthNet mobileYouthNet.com mobileYouth.org