While the growth in mobile seems obvious, some context of how pervasive and global mobile has become is useful. No media has grown as fast or touches as many people.

Mobile devices in use now approximate the population of the World!  The majority of these devices can access the internet.  A recent presentation by Tomi Ahonen (here) helps put all this in context in terms of scale and the evolving ways people are using the devices to inform, entertain and market to consumers worldwide.

global media LT growth 5-18-13

comScore has also recently published the following slide in the analysis of 1st quarter e-commerce.  Smartphone and tablet minutes will easily cruse past desktop minutes soon.  If you want to interact with consumers you MUST have a mobile strategy.

Internetusage by min by device 5-18-13

To give you a sense of what is at stake – there are global industries with $6 trillion in aggregate value that will see a majority of their business migrate to mobile – think news, music, gaming and sooner than you may think – banking, insurance, credit etc.  We believe that mobile is critical to infusing growth into our portfolio.  We evaluate multiple first and second derivative opportunities to leverage that growth.  Jeb B. Terry, Sr. May 18, 2013

Aberdeen Investment Management – a guide service for micro-cap technology investment

41 Million viewers and growing. The mobile audience will move toward the 280 million that watch traditional TV.

As fast as mobile video consumption is growing, we “ain’t seen nothin’ yet”.  Cisco has provided multiple estimates of surging mobile video traffic.  Traffic is expected to grow 110% this year.

Mobile video traffic surge 5-18-13

Video is the predominant source of mobile traffic.  It explains why mobile carriers are scrambling to add capacity. 

Video majority of mobile traffic 5-18-13

Consumers are increasingly engaged with their mobile devices as they are watching TV.  The day is coming – sooner than you may think – when the “TV” is just another internet connected monitor that consumers use to “watch” but the content will be controlled and augmented by a wireless handheld device – e.g. tablet.  Consumers will also increasingly be encouraged to view videos on the fly – away from the couch in front of a “TV”.  There will be winners and losers in this shift.  Jeb B. Terry, Sr May 18, 2013

Aberdeen Investment Management – a guide service for micro-cap technology investment

Some reasons why I like TV Everywhere – the advent of true multi-screen, untethered video – big ramifications for old media – billions of ad $$$ and subscription $$$ at stake.

  • How Comcast, Charter and Time Warner Cable will use TV Everywhere to steal DirecTV and Dish subscribers –(here)
  • Mobile content revenue to hit $65B by 2016: study – (here)
  • ABC will insert targeted video ads on mobile devices via Watch ABC – its TV Everywhere service just launched in Phila. & NYC. (here)
  • Auto login driving advances in TV Everywhere authentication – “true frictionless” access to TV – anywhere – this is sparking the period when TV Everywhere services on wireless can be “sold” by big marketers with well-funded campaigns vs. “bought” by geeks. (here)
  • Dish’s Bid For Sprint Shows How The Pay TV Industry Has Woken Up To Mobile Video. Successful or not, Dish Network’s bid for Sprint is a symptom of digital video’s unstoppable rise .(here)

There is a sea change underway.  We continually look for ways to gain profitable exposure to the emerging trends.  Jeb B. Terry, Sr. May 18, 2013

Aberdeen Investment Management – a guide service for micro-cap technology investment

Ad dollars will increasingly migrate to mobile/wireless platforms – you can count on it.

The following charts add to the case for an accelerating shift of ad dollars from conventional TV to mobile/wireless.  The improvement in wireless bandwidth from LTE and industrial grade WiFi will help the move.  Consumer behaviors already prove the merits of the form factors – wireless trumps fixed box video.  Wireless ads are clearly “Better, Faster, Cheaper”.  The ad world is not ignoring this.  The Aberdeen portfolio is exposed to this development in multiple ways.  Jeb B. Terry, Sr. May 18, 2013

BETTER . . .

Ad effectiveness by media 5-18-13

FASTER . . .

Growth in time spent by device 5-18-13

CHEAPER . . .

Conv v CPC by device 5-18-13

Aberdeen Investment Management – a guide service for micro-cap technology investment

People are increasingly executing e-commerce transactions on their mobile devices.

M-Commerce is a speed boat on a rising tide.  A report by comScore showed that m-commerce retail spending outgrew overall e-commerce by over 2X and outgrew overall retail sales by over 30X!  M-commerce now accounts for 11% of all e-commerce spending.  Retailers and brands follow the money.  This augurs well for more mobile ads, mobile couponing, location based services . . . etc.  Jeb B. Terry, Sr. May 18, 2013

m-Commerce growth May 18 2013

“US ad spending for mobile video is set to quadruple from this year’s $518 million estimate to nearly $2.1 billion in 2016.” eMarketer (here)

Mobile Video ad spend Mar 2013

Aberdeen Investment Management – a guide service for micro-cap technology investment