Spotlight on Asia-Pacific

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1 Spotlight on Asia-Pacific

2 Executive Summary & Methodology This special Mobile Mix report focuses on the Asia-Pacific (APAC) mobile device market on the Millennial Media platform. This report will highlight the mobile device characteristics of the region, how Asia-Pacific mobile users are engaging with their devices, and how mobile developers and brand advertisers can evolve their strategies in the region. From Japan down to Australia, and stretching to India, the Asia-Pacific mobile market represents a diverse group of mobile consumers. Some of the major findings from this report: Currently, 65% of the population in APAC owns a mobile phone, while less than half owns a smartphone (23%). Despite having lower smartphone adoption than other regions, as home to two of the largest countries in the world, China and India, the substantial population of this region drives higher numbers of mobile and smartphone users. Eight of the ten top device manufacturers are headquartered in the region, the majority of which support an OS. is the leading OS in the region, accounting for 71% of platform impressions. accounts for 28% of regional platform impressions. Japan, Australia, Thailand, China, and Vietnam all see above average impressions from devices. What it means for: Brands/Advertisers With so many consumers in the region, there are huge opportunities for advertisers to reach greater numbers of their target audience. Technology, Telecommunications, and Consumer Goods are the top three of many brand verticals finding campaign success in the region. Consumers As smartphone adoption increases in the region, so will consumers comfort level with using and engaging with mobile. Developers/Publishers The language and geographic diversity of the region means developers and publishers need to work across these barriers to make sure consumers can engage with your campaign or app in any language, currency, or on any network. Methodology The insights here are based upon Millennial Media s global platform observations across thousands of mobile ad campaigns and billions of monthly ad requests. As the largest independent mobile advertising platform company, we are capable of reporting and analyzing a rich set of campaign data collected across a large volume of campaigns and ad requests. Data used with permission from emarketer, June

3 Mobile Developer Trends: Asia-Pacific Mobile Phone Users APAC CHART A Mobile Phone Users (Millions) 2, , , , ,944.0 As Percent of Population 62% 65% 68% 70% 72% Growth 4% 6% 6% 4% 4% Smartphone Users (Millions) , , ,250.4 As Percent of Population 19% 23% 26% 28% 31% Growth 45% 20% 14% 11% 9% Source: emarketer, June According to data from emarketer, approximately two-thirds of the Asia-Pacific region owns a mobile phone, which is expected to increase at an average of 5% a year (Chart A). Smartphone users in the Asia-Pacific region are expected to grow at four times the rate of mobile phone users to encompass 31% of the region s population by 2017 (Chart A). Average Yearly Growth in Mobile Ad Spending ( ) CHART B 506% Despite the smaller percentage of mobile phone ownership, the number of mobile users in APAC is still much greater than other regions due to the large population base of the region. This market contains the two largest countries in the world, India and China, which makes the region attractive to global investors. Over the next four years, mobile ad spend in Asia-Pacific is projected to increase 123% each year according to data from emarketer. For comparison, over the next four years mobile advertising spend in the US is projected to grow 168% a year, 152% a year in EMEA, and 73% a year in Latin America. APAC is keeping pace with the regions that already have saturated smartphone markets. 48% 119% 247% 430% Indonesia and India lead the region in the growth of mobile ad spend. Mobile ad spend in Indonesia is projected to grow at an average of 506% a year through 2017 (Chart B), approximately four times that of the regional average. India has the second highest growth rate in the region of 430%, 3.5x that of the regional average. Japan South Korea Australia India Indonesia Source: emarketer, June

4 Mobile Device Trends: Asia-Pacific Top 10 Countries CHART C Top 10 Manufacturers CHART D COUNTRY 1H 2014 MANUFACTURER 1H 2014 India 15.00% Samsung 39.26% Indonesia 14.87% Apple 26.41% Japan 11.62% Nokia 3.48% Australia 9.07% Sony 3.29% Thailand 7.55% SonyEricsson 2.50% Philippines 7.53% LG 2.40% China 7.19% HTC 2.03% Malaysia 5.05% Lenovo 1.68% Hong Kong 4.81% Micromax 1.51% Vietnam 4.78% BlackBerry 1.15% Source: Millennial Media, 1H Source: Millennial Media, 1H The top ten countries in Asia-Pacific from which we saw impressions on our platform are shown in Chart C. India is the country from which we see the largest amount of impressions, accounting for 15% of the region, followed by Indonesia (14.87%) and Japan (12%). India and Indonesia are two of the largest countries in the region, and in the world, which results in a naturally larger base of mobile users and devices. Japan has a population one-tenth that of India, yet accounts for a disproportionately high amount of the region s mobile impressions. China, which is one of the largest countries in the world, only accounts for 7% of the region s impressions on our platform, as this smartphone market is still developing. Top Application Categories By Engagement Of the top application categories in APAC on our platform, five see both the largest impressions in the region, and the highest clicks from consumers. CATEGORY RANK Samsung and Apple are the most popular manufacturers on our global platform, and the same holds true in Asia-Pacific. In the region, Samsung was the manufacturer from which we saw the largest amount of impressions in APAC, accounting for 39% of the region s impressions (Chart D). Apple is the second largest manufacturer on our platform in Asia, and accounted for 26% of the region s impressions (Chart D). For comparison, throughout all of 2013, Apple was the largest manufacturer on our global platform, accounting for 36% of impressions, followed by Samsung at 29% of impressions. Games Entertainment Lifestyle Personalization Productivity & Tools Source: Millennail Media, 1H

5 Mobile Device Trends: Asia-Pacific OS Mix CHART E 1H H % 1% 4% 1% 71% 33% 61% Device Mix CHART F 1H H % 5% 74% 22% 10% 62% BlackBerry OS Windows Smartphone Non-phone Connected Device Feature Phone Source: Millennial Media, 1H 2013 & Source: Millennial Media, 1H 2013 & Impressions from devices accounted for 71% of platform impressions in Asia-Pacific (Chart E), which is seventeen percentage points above the global platform average. Impressions from devices in APAC have grown over the past year, up from 61% in Q The large amount of impressions supports a strong presence of Samsung devices. Impressions from devices comprised 28% of impressions from our platform in APAC (Chart E). This is eight percentage points below the global platform average. Apple is the only one of the top ten manufacturers that is based in the United States, nearly all the others are based in Asia, so in the region some of these manufacturers have a home market advantage. The mix of devices from which we saw impressions on our platform in the Asia-Pacific region is similar to that of the trends on our global platform. 74% of impressions in the region came from smartphone devices (Chart F), compared to 72% globally. Smartphone impressions on our platform have grown twelve percentage points in the last year, which correlates to the increase in smartphone users in Chart A. Top Engaging Brand Verticals By Engagement Of the mobile ad campaigns run in APAC on our platform, five brand verticals are both the largest advertisers in the region, and see the highest engagement from consumers. VERTICAL Technology Telecommunications Consumer Goods Entertainment Travel Source: Millennial Media, 1H RANK

6 Mobile Device Trends: Asia-Pacific In Chart G, we compare the mix of impressions by operating system for the top ten APAC countries from which we see impressions on our platform, a combination of Charts C & E. India, Malaysia, and Hong Kong saw impressions from devices above the regional average of 71% (Charts G & E). Some countries, such as Japan, Australia, and Thailand, all have above average impressions from devices (Charts G & E). While other countries, such as Indonesia and the Philippines, saw below average impressions from both and devices. These countries have above average impressions from BlackBerry devices, as high as 9x the region s average. Top 10 APAC Countries OS as Percent of Impressions CHART G 86% 10% 51% 27% India Philippines 69% 8% 59% 39% Indonesia China 65% 34% 75% 24% Japan Malaysia 43% 56% 81% 18% Australia Hong Kong 57% 41% 51% 34% Thailand Vietnam Source: Millennial Media, Q

7 Summary About Millennial Media s Mobile Mix Millennial Media s Mobile Mix reports key advertising trends with a focus on mobile manufacturers, devices, operating systems, connected devices and more. Millennial Media s Mobile Mix is in complement to the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.) report, which delivers monthly insights on advertising performance and engagement. Both reports are based on actual campaign and platform data from Millennial Media. As the leading independent audience platform in digital advertising, we are capable of reporting and analysing data collected over tens of billions of monthly ad requests. Elevating and driving the whole mobile ecosystem forward is central to our company mission. About Millennial Media Millennial Media is the leading independent mobile ad platform company, supporting the world s top brands and mobile content providers. The company s unique data and technology assets enable its clients to connect with their target audiences as they move across screens, media, and moments. Millennial Media drives meaningful results at scale through a diverse suite of products fueled by innovation and the industry s smartest minds. For more information, visit For questions about the data in this report, or for recommendations for future reports, please contact us at 2014 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners. 7

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