MMS as New Medium. Agenda Vesku Paananen Cofounder and Chief Technology Officer. Add2Phone Ltd. Add2Phone in Brief
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1 MMS as New Medium Vesku Paananen Cofounder and Chief Technology Officer Add2Phone Ltd. MobileExpo 2003, Helsinki, Agenda Add2Phone in Brief MMS as new medium Multimedia Messaging in Handsets MMS Services Market Mobile Marketing Conclusions 1
2 Add2Phone in Brief Add2Phone Mobile Marketing and CRM Technology Add2Phone is Europe s leading software company for the mobile marketing applications market! Add2Phone Mobile Advertising Server and Mobile Competition Server Add2Phone technology provides a proven and reliable growth path into! Premium-rate SMS services! Advanced mobile services and MMS applications! Mobile commerce Our customer base includes mobile operators, portals, directory providers, ASPs and media companies Special knowledge in! Mobile messaging! Mobile marketing and ad serving technology! Interactive mobile content services! Interactive mobile customer relationship management 2
3 Add2Phone s Customers Partial list Add2Phone s Products Add2Phone s products offer multiple growth paths Push and Pull Services Interact ive Mass Services Marketing and Advertising Services Add2Phone Mobile Content Server Add2Phone Mobile Competition Server Add2Phone Mobile Advertising Server ASP compliant SMASH technology supporting SMS, WAP, MMS, , web and IVR 3
4 MMS as new medium Introduction to the Mobile Domain Convergence + M=ec² Internet Mobility Mobility equals electronic commerce squared It s all about communication and trust relationships. - Vesku,
5 Mobile Phones are Part of the Media-mix Broadcast Passive Printed Media Television Radio Direct Mail Outdoor Media Narrowcast Interactive Internet Digital TV One-to-One Mobile Devices Ubiquitous How End-Users Use Mobile Phones 5
6 SMS Penetration & Activity e Great Britain Italy Norway Sweden Germany Finland Denmark Messages per subscription per month Source: ebird, 2002 SMS Penetration & Activity Age 15-29: 80% using SMS Mobile penetration per age group in Finland Most active group, women age (more SMS than voice) Age 40-49: 50% using SMS >65 Source: Sonera,
7 Messaging Evolution Mobile messaging and are still separated worlds SMS SMS EMS EMS MMS MMS time Network generations 2G 2.5G 3G??? Multimedia Messaging in Handsets A brief intro to technology 7
8 The Market Nokia has said (11/2002):! Has now 15 phones supporting MMS.! In 2003, more than half of all Nokia phones sold would be MMS-enabled.! In 2003, Nokia expects to ship million devices which have a color display and an open application development platform.! Roughly 10 million will be Series 60 based devices. MMS in a Phone - Nokia 7650 The Color screen is the BIG thing! Source: Nokia 8
9 Nokia MMS Terminals Nokia 3510 Nokia 3510i Nokia 3650 Nokia 6610 Nokia 6620 Nokia 7210 Nokia 7650 Nokia 6100 Nokia 7250 Nokia 5100 Nokia 8910i Nokia 6800 Nokia 3300 Source: Nokia Nokia 3G/MMS Terminal and N-Gage Nokia 6650 Nokia N-Gage Source: Nokia 9
10 Sony Ericsson MMS Terminals T68i T300 T310 T610 P800 Z1010 Source: Sony Ericsson MMS Message Structure MMS Message Presentation definition and headers Slide 1 Slide 2 Slide n TEXT TEXT TEXT 10
11 SMS, MMS and Comparison Chart SMS MMS Number of supporting mobile terminals About 1 billion Some millions Some millions Roaming between mobile networks High First steps taken Everywhere Supports images Not GIF, JPEG. Max size typically 640x480. All internet formats and any sizes. Typically GIF and JPEG Supports audio Not Some terminals supports short AMR or Wav clips. All Internet audio formats. Typically Wav and MP3. Supports video Not Yes (in some handsets) All Internet formats. Typically MPEG, AVI, DivX Price in kilobytes < 1 < 0.1 < 0.01 or even free Price of a message < 0.1 < 1 < 0.01 or even free Messages can be sent from desktop PC Yes. Operator s or SP s web portal. Yes. Operator s or SP s web portal Yes. clients and web services. Premium billing capability Yes. Revenue share in most of the networks. Yes. Revenue share in most of the networks. Not Messaging vs. Browsing Most of the mobile services are based on either browsing or messaging metaphors.! The biggest design question for mobile service designers Messaging is more common in mobile networks with small and feature poor terminals and browsing is used in Internet with big color screens, wide bandwidth and keyboards.! PDAs and communicators with big color screens are mixing the situation. Mu lt ip le W AP browsing steps One MMS, request with SMS = Product 11
12 MMS Services Market Service Designer's view Mobile Customer Base is extending phone usage from voice to other services Person-to-Person Communication Transaction Services Corporate Services Infotainment Source: Noki a 12
13 P-2-P COMMUNICATION MESSAGING! Send/receive SMS! Send/receive! SMS to postcard s! Multimedia Messaging! to voice RICH CALL! Video Conferencing! Voice Call! Browse to Call (Click -> Talk & Chat -> Talk)! Interactive Call Management INFOTAINMENT NEWS! Local & Global Headlines! Financials! Sports! Going out! Hobbies & Fr iends! Fashion! Ringtones! Short audio/ audio visual clips (e.g. MP3) LIFESTYLE & FUN MUSIC & AUDIOVISUAL! Jokes! Cartoons & comics! Logos, Icons! TV Programme info + clips! Highlights! Trailers! Sports CHATSGAMES! Puzzle of a day! Game Downloads! Online Gaming! Gambling/Betting! Clubs PUBLIC INFORMATION SERVICES LOCAL CITY GUIDE GLOBAL! Tourist guide! Directory services! Traffic Info! Time-tables! ATM Locator! Chatting! Dating services! Clubs! Maps & Navigation services! Trains & Flights! Holiday packages COMMUNITIES! Voting! Bulletin boards! Online meetings TRANSACTION SERVICES PERSONALISED FINA NCIAL SERVICES! Money transfers! Classifieds! Micro payments! Auctions! Account status! Shopping! Tickets MISCELLA NEOUS! Activating domestic appliances! Paying at vending machines! Identity verification CORPORATE SERVICES INTRANET & EXTRANET ACCESS CORE CORPORATE APPLICATIONS Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM) TELEMATICS PERSONAL INFORMATION MANAGEMENT! To do lists! Calendar! Address book! Call management! Correspondence management! Voice to SMS, and fax Source: Noki a Fundamentals of Service Take-off End-user acceptance Service take-off Business system Technologies 13
14 MMS Phone s Screen Size Challenge MMS is taking its first steps! Different content for different handsets?? Nokia x 208 pixels (Max image size for messaging is 174 x 133 pixels) Ericsson T68i 101 x 80 pixels (Max image size 80 x 60 pixels) Messaging/ Imaging SMS text messages Picture message MULTIMEDIA MESSAGING Image library photo/image albums Instant Messaging Presence Mobile Shopping Micropayments Portfolio Mgmt. (Buy/Sell) SMS Alerts DRM Multimedia Message Alerts and reports with text and colour graphs Online analyst reports and financial newscasts Mobile Workplace Authentication Mobile Mobile Calendar Corporate Address Book Corporate Intranet/Extranet CRM, ERP MMS Multimedia Messaging Instant Messaging Presence Mobile Music Ring tones Animated screensavers MP3 Player MIDI Ring tones, Downloadable Composer (Java) Download & playback music Music Player for Compressed audio streaming Jamming (Bluetooth) Mobile Games Handset games (downloadable levels) SMS/WAP Games Downloadable Java Games Long-term Online Games Graphic Intensive Games Games content streaming Local Bluetooth gaming Source: Noki a 14
15 Camera + Phone + MMS = Instant Postcards There will be globally more camera phones than digital cameras in year Gartner Group 2002 Mobile Marketing MMS in Marketing 15
16 Mobile Marketing and Service Marketing Examples - Short Messages (SMS) Mobile Marketing and Service Marketing Examples - Multimedia Messages (MMS) 16
17 MMS Advertising Type Examples Some text for example. Inline text Inline text Inline text Picture Banners Interstitials and Audio Ads Floating and Animated Banners Text Tags MMS Example Mobile Advertis ing Server finds a suitable ad by using its sophisticated on-line targeting rule mechanism Weather and constructs content a new may be stored mult imedia to the message internal that database contains both of Mobile the service Advertising content and Server the ad. Mobile Advertising Server Short Multimedia message message 1/5 2/5 3/5 4/5 5/5 weather Weather helsinki Helsinki on Thursday Wednesday : : or Mobile Advertising Server may retrieve weather content from an external source when needed! 17
18 Conclusions Today the money is still in SMS but MMS in not suffering from 160 characters restriction. MMS is rich messaging where one picture can say a lot. People are already familiar with SMS messaging and and that will help MMS to gain popularity. Color screen is the thing! The lack of screen size, memory and CPU power make end-user experience still bad for many use cases. Number of MMS capable terminals have to reach the critical mass (> 30%) soon. In 2005 there will be more digital cameras in phones than traditional digital cameras. There are still lots of open implementation issues in terminal side: interoperability, digital rights management (DRM), billing and roaming. Interoperability in all levels is a challenge but the development of terminals help all to meet decent requirements (the lowest common nominator). Thank you! Visit vesku@add2phone.com
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