The Global Mobile Landscape

Transcription

1

2 The Global Mobile Landscape MILLENNIAL MEDIA S 0 TH MOBILE INTELLIGENCE REPORT Driving the mobile ecosystem forward has been central to our company mission since we were founded more than five years ago. This Q Quarterly SMART issue marks the 0th mobile intelligence report we have released since we produced our very first SMART report in March 00. In addition to our monthly Mobile Mix and SMART reports, we also publish Mobile Intel Series whitepapers, State of the Apps Industry Snapshots, and special releases to highlight important topics, year-end recaps, and go-forward predictions about the mobile space. MOBILE ADVERTISING GROWTH Mobile Advertising Revenue by Region, Worldwide In Millions of Dollars CHART A North America 0. 0.,. Western Europe..,. Asia/Pacific and Japan.,.,.0 Rest of the World. 0.,. Total $,. $,0. $0,0.0 Source: Gartner, Forecast: Mobile Advertising, Worldwide, 00-0 (as cited in press release, June, 0) In June 0, Gartner projected that the worldwide market for mobile advertising would double in 0 from 00 to $. billion (see Chart A). The opportunity for brand marketers and developers to take advantage of the mass consumer adoption of s and media tablets is now. Did You Know? We saw an uptick in the number of brands who utilized mobile video advertising in Q, as they recognized the powerful brand-building and engagement opportunities it provides. See page for a spotlight on Interactive Mobile Video.

3 Mobile Vertical Spending in Q Top 0 U.S. Advertising Verticals Ranked by Spend CHART A Top 0 International Advertising Verticals Ranked by Spend CHART B RANK CATEGORIES RANK CATEGORIES 0 RETAIL & RESTAURANTS TELECOMMUNICATIONS FINANCE ENTERTAINMENT AUTOMOTIVE TRAVEL DATING CPG PORTALS & DIRECTORIES PHARMACEUTICALS 0 PORTALS & DIRECTORIES EDUCATION TRAVEL ENTERTAINMENT FINANCE TELECOMMUNICATIONS DATING RETAIL & RESTAURANTS AUTOMOTIVE TECHNOLOGY Source: Millennial Media,. Source: Millennial Media,. Q Insights: Six verticals experienced triple digit growth or greater year-over-year. Four out of the six verticals featured in the Vertical Explosion were all consistently on the Top 0 Advertising Vertical Ranking since Q 00. The Pharmaceutical vertical has only been on the Top 0 Advertising Vertical Ranking once to date, yet experienced explosive growth of % year-over-year (Chart C). This is an indication that more advertisers are moving out of the test phase of mobile and starting to make a consistent investment. The Retail & Restaurants vertical grew % year-over-year (Chart C), maintained the number one spot on the Top 0 U.S. Advertising Vertical Ranking (Chart A), and moved to the number eight position on the Top 0 International Advertising Vertical Rankings in Q (Chart B). Advertisers in the Retail & Restaurants vertical leveraged mobile to create awareness of seasonal retail promotions. The Finance vertical placed in the number three position and the number five position on the Top 0 U.S. and International Advertising Vertical Rankings respectively (Charts A & B). Finance grew 0% year-over-year (Chart C). In Q, insurance brands heavily utilized mobile for generating leads, while banking and credit advertisers ran campaigns to raise the awareness of their products and services. Travel moved up three spots on both of the Top 0 Advertising Vertical Rankings in Q, ranking in the number six (U.S.) and the number three (International) positions (Charts A & B). Year-over-year, Travel increased % (Chart C). Travel advertisers leveraged mobile to drive application downloads in Q. Travel applications have evolved from information and research tools to include transactional functionality. Vertical Explosion Year-Over-Year Spend Growth /Q 00 CHART C VERTICALS FINANCE RETAIL & RESTAURANTS PHARMACEUTICALS AUTOMOTIVE ENTERTAINMENT TRAVEL GROWTH 0% % % % % % Source: Millennial Media,. MOBILE INTEL SERIES: RETAIL PROVIDES MOBILE INSIGHTS FOR RETAIL BRANDS, INCLUDING: Who mobile retail consumers are and what mobile shopping behaviors they exhibit. What retail brands are doing in mobile now. How brands can navigate mobile to reach and engage consumers when it matters most. Download this special report at

4 Q Mobile Advertiser Trends Mobile Usage & Campaign Goals Advertisers Campaign Goals CHART A % % % % Mobile is the first truly mass media. There are over three times the number of mobile subscribers as there are TV subscribers. Globally, it s the most adopted technology and media channel in history. The engagement rates are higher. And inventory, thanks to -hour access to users, is unmatched. ~ Paul Gelb, Mobile Practice Lead, Razorfish (July 0) % SUSTAINED IN-MARKET PRESENCE LEAD GEN/REGISTRATIONS PRODUCT LAUNCH/RELEASE BRAND AWARENESS INCREASED FOOT TRAFFIC SITE TRAFFIC % Source: Millennial Media,. Data is based on the Top 0 Campaigns on Millennial Media s Network in. Q Insights: TOP ADVERTISER TRENDS OF Q Brand advertisers increasingly used mobile to drive brand awareness with an enhanced adoption of mobile video advertising as a tool to achieve this goal. From Q 0 to, the number of campaigns which focused on driving awareness increased %, from % to % (see Chart A). Advertisers continued to aggressively utilize local market targeting strategies on mobile. Brand advertisers leveraged the efficiency of mobile to buy on a national scale, while delivering locally relevant messaging. Among targeted Q campaigns, % leveraged local market targeting, representing % growth from Q (see Chart B on page ). Brands further utilized mobile as a mass media solution. Mobile enabled these brands the ability to target audiences at scale, while also providing personal, relevant ads. The Top Campaign Goal in Q was Sustained In-Market Presence, which made up % of the Advertisers Campaign Goal Mix (Chart A). Brands with the goal of Sustained In-Market Presence drove application downloads to engage consumers and drive re-use of their products and services. In, InsightExpress Digital Consumer Portrait researched the time owners spent doing various activities on mobile phones, including using the internet, using mobile applications, playing games, listening to music, and watching videos. This study revealed approximately 0% of a consumer s time was spent on mobile devices in the home. s are replacing or being used in tandem with other electronic devices in the home to browse the internet and entertain owners by listening to music or watching videos. Usage Trends Percent of Time Spent Using at Home vs. On-the-Go InsightExpress, CHART B % % USE THE INTERNET % % USE MOBILE APPS Source: InsightExpress Digital Consumer Portrait,. % % PLAY MOBILE GAMES % % LISTEN TO MUSIC % % WATCH VIDEOS AT HOME SOMEWHERE ELSE

5 Q Mobile Advertiser Trends Campaign Targeting Methods Campaign Targeting Mix CHART A Targeted Audience Mix CHART B % % BROAD REACH % TARGETED AUDIENCE REACH % % LOCAL MARKET AUDIENCE DEMOGRAPHIC AUDIENCE BEHAVIORAL AUDIENCE Source: Millennial Media,. Source: Millennial Media,. Local Market is defined as a campaign targeting method which includes geographic location, DMA, state, international country, etc. Data is based on the Top 0 Campaigns on Millennial Media s Network in. Q Insights: Advertisers using Targeted Audience reach campaign methods (Local Market Audience, Demographic Audience, and Behavioral Audience) represented % of the Campaign Targeting Mix in Q (Chart A). Broad Reach targeting methods (Run of Network, Custom Subnet and Channel) represented % of the Campaign Targeting Mix in Q (Chart A). Automotive and Travel brands created broad reach awareness campaigns in anticipation of the summer buying and travel seasons. Local Market Audience targeting experienced a % increase quarter-over-quarter and represented % of the Targeted Audience Mix in Q (Chart B). Advertisers in the Finance and Restaurant verticals leveraged Local Market Audience targeting to increase awareness of local promotions and drive customers to their brick and mortar locations. Demographic Audience targeting represented % of the Targeted Audience Mix and was the second largest targeting method utilized in Q (Chart B). Insurance brands used Demographic Audience targeting to target customers who would likely be interested in their products or services, while Retail brands used Demographic Audience targeting to reach customers who were likely to make a purchase during the Moms, Dads and Grads shopping seasons. A LOOK BACK AT THE FIRST S.M.A.R.T. REPORT To celebrate the release of our 0th mobile intelligence report, we are highlighting some of the largest shifts in mobile advertising behavior since we released our first S.M.A.R.T. Report in March DEMOGRAPHIC % Targeting Mix, 00-0 (Percent of Total Campaigns) LOCAL MARKET % DEMOGRAPHIC % 0 LOCAL MARKET 0% Source: Millennial Media, / March 00 In the past two years, there has been a seismic shift in how advertisers have leveraged mobile. Marketers have heavily increased the usage of targeted audience reach methods, demonstrated by the growth of Demographic Audience and Local Market Audience targeting, which have both grown from % of all campaigns run to % and 0%, respectively.

6 Q Mobile Advertiser Trends Spotlight on Interactive Mobile Video DEFINITION: Interactive Mobile Video A high impact HD video ad layered with interactive features that deliver a uniquely mobile, actionable experience to customers. The interactive elements encourage customers to engage with the ad, and can be tailored by advertisers to deliver against their specific goals. Q INTERACTIVE MOBILE VIDEO ADVERTISING STATS: According to Nielsen, the number of U.S. mobile video viewers has grown 0% year-over-year. Within Q, the number of times customers selected an interactive element on Millennial Media s video ads doubled. Customers who viewed the interactive mobile video ads selected the Replay button x more than any other button. Advertisers who created interactive mobile video ads most frequently included the following interactive buttons: Share Drives viral benefits via social media. Web Sends customers to a mobile web destination to fulfill a variety of advertising objectives. Buy Enables mcommerce capabilities, activating product consideration and purchase. CAMPAIGN HIGHLIGHT: PATAGONIA INTERACTIVE MOBILE VIDEO CAMPAIGN Implementing video helped us immediately grab the attention of our target consumer, and the interactive nature of the unit let us achieve our desired end result of driving app downloads and direct song purchases. ~ Christina Speed, Marketing Director, Patagonia GOAL: Drive app downloads and itunes sales from the Patagonia Music Collective with a new interactive mobile video campaign. STRATEGY: Promote the Patagonia Music Collective to eco-friendly consumers with an interactive mobile video ad featuring a song from popular artist Medeski Martin & Wood. The ad s interactive buttons were selected by Patagonia to drive the specific actions that best achieved their campaign objectives. The Download button let consumers download the official Patagonia Music App, the Buy button allowed them to buy a song directly from itunes, and the Replay button allowed users to restart the video. DOWNLOAD THE FULL CAMPAIGN SUMMARY NOW!

7 Q Mobile Advertiser Trends Campaign Engagement Methods Campaign Destination Mix CHART A Post-Click Campaign Action Mix Q 0 CHART B 0 % % 0 0 % 0% % % % 0 % % % 0% % % 0 TRAFFIC TO SITE CUSTOM LANDING PAGE APPLICATION DOWNLOAD APPLICATION DOWNLOAD ENROLL/ JOIN/ SUBSCRIBE MCOMMERCE MOCIAL (MOBILE SOCIAL MEDIA) PLACE CALL Source: Millennial Media,. Data is based on the Top 0 Campaigns on Millennial Media s Network in. RETAIL PROMOTION SITE SEARCH STORE LOCATOR VIEW MAP WATCH VIDEO Source: Millennial Media,. Campaign destinations represent the immediate click-through from creative to site, landing page, or rich media. Data is based on the Top 0 Campaigns on Millennial Media s Network in. Q Insights: Application Download grew % quarter-over-quarter and represented % of the Campaign Destination Mix in Q (Chart A). As penetration continues to increase, advertisers are enhancing the functionality and utility of their applications while reinforcing their brands. The Travel and Retail verticals have led other verticals in creating applications that make it easy for customers to research and transact on-the-go. In Q, View Map grew % quarter-over-quarter as a Post-Click Campaign Action (Chart B). Advertisers in the Automotive and Telecom brands leveraged mobile in Q to promote new product launches and drive customers to dealerships and retail outlets to complete their purchases. Retail Promotion experienced a 0% increase quarter-over-quarter, with % of the Post-Click Campaign Action Mix in Q (Chart B). CPG and Retail & Restaurant advertisers utilized Retail Promotion as a Post-Click Campaign Action to engage customers and drive sales during the Moms, Dads and Grads shopping season. Mocial (Mobile Social Media) grew % quarter-over-quarter and represented % of the Campaign Destination Mix in Q (Chart A). In Q, Telecom, Entertainment and CPG brands used mobile campaigns to drive awareness of their social media promotions and contests. A LOOK BACK AT THE FIRST S.M.A.R.T. REPORT Campaign Actions & Destinations 0% 0% 0% 0% 0% % 0% % % % 0% % VISIT SITE WATCH VIDEO CLICK CALL / PLACE CALL Source: Millennial Media, / March 00 APPSTORE / APP DOWNLOAD In the past two years, mobile ad campaigns have evolved to become more sophisticated in the way they engage customers. SIGNIFICANT GROWTH IN CAMPAIGN ACTIONS Appstore/App Download grew % Visit Site grew % Watch Video grew 00% Place Call grew from % to % Visit to download Millennial Media s past reports. % Q 00 % %

8 Q Developer & Publisher Trends Top 0 Global Application Categories By Impressions CHART A RANK 0 CATEGORIES GAMES MUSIC & ENTERTAINMENT MOCIAL (MOBILE SOCIAL NETWORKING) COMMUNICATIONS WEATHER NEWS SPORTS HEALTH & FITNESS TRAVEL & LOCAL SCIENCE & TECHNOLOGY Source: Millennial Media,. Highlights of Device & Developer Trends TOP DEVELOPER / PUBLISHER TRENDS OF Q Developers reinvested more of their earnings into mobile advertising to drive more app downloads. More downloads delivered more impressions, resulting in more revenue through advertising. Mobile video advertising became mainstream in applications. Developers capitalized on the rich, engaging experiences interactive video ads delivered to their users. From indie to top game developers, a wide variety of the developer community embraced advertising as a monetization strategy. Travel experienced a % growth quarter-over-quarter in application impressions (Chart A). In, there was a large increase in usage of applications related to air travel and mass transit/tourism guides. In Q, s grew % quarter-over-quarter and led the, & Connected Device mix with % of impressions. Connected Devices experienced a % growth quarter-over-quarter and accounted for % of the, & Connected Device mix in Q. Android maintained its position as the leading OS Impression Mix on our network in Q, with % of impressions. ios grew % quarter-over-quarter and represented % of the OS Impression Mix in Q. ios is expected to see incremental growth with the release of the iphone in Q 0. Did You Know? House ads provide a free and easy way to drive more downloads and revenue. To start promoting your app today, visit NEW FEATURES NOW AVAILABLE! An expanded version of our developer portal is now available. It s packed with new features and tools to help developers manage and grow their business. Highlights Include: My Apps Dashboard, which provides a snapshot of a developer s apps, account activity and news. House Ads to help developers promote their apps. Improved reporting, including Country/Carrier breakdowns. New design and improved performance. Improved help and support documentation. A feedback tool to allow developers to share their thoughts and insights. Visit to learn more.

9 A Look Back at the First S.M.A.R.T. Report Top 0 Mobile Phones, 00-0 Ranked by Impressions Rank 0 0 Source: Millennial Media, /0. Devices March Type Apple iphone Samsung Instinct BlackBerry Curve Samsung Messager T-Mobile Sidekick T-Mobile Sidekick LX Palm Centro BlackBerry Pearl LG Dare LG Rumour LG Vu T-Mobile Sidekick Slide Motorola Q HTC G LG Voyager Samsung MyShot LG Shine Kyocera Melo Samsung Spex Samsung BlackJack II.%.0%.%.%.%.%.0%.0%.%.%.%.%.%.%.%.%.0%.0%.0% 0.% 00 0 Rank Devices June Type 0 0 Apple iphone BlackBerry Curve Motorola Droid Samsung Nexus S BlackBerry Bold HUAWEI Ascend HTC Evo Motorola Droid X Samsung Vibrant Galaxy S BlackBerry Torch Motorola Droid LG Optimus S HTC Droid Incredible LG Optimus V HTC Desire HTC MyTouch G Glacier HTC G Touch Hero Samsung Forte HTC ThunderBolt Samsung Epic Galaxy S.%.%.%.%.%.%.%.%.%.%.%.%.0%.0%.% 0.% 0.% 0.% 0.% 0.% Source: Millennial Media, /. Device Input Mix, 00-0 % % % % % % % 0% Touch Screen Touch & QWERTY QWERTY Keypad Source: Millennial Media, /0. Touch Screen Touch & QWERTY QWERTY Keypad Source: Millennial Media, / Top Connected Devices, 0 Ranked by Impressions Source: Millennial Media,. Top 0 Manufacturers, 00-0 All Devices Ranked by Impressions Rank Manufacturers March 0 Samsung LG Apple Motorola Research In Motion (RIM) Sony Danger HTC Palm Nokia.0%.%.% 0.0%.%.%.%.%.%.% Source: Millennial Media, /0. Apple ipod Touch Apple ipad 00 0 Samsung Galaxy Tab Rank Manufacturers June 0 Apple Samsung Research In Motion (RIM) HTC Motorola LG Nokia HUAWEI Sanyo SonyEricsson 0.%.%.%.%.%.0%.0%.% 0.0% 0.% Source: Millennial Media, /.

10 S.M.A.R.T. Glossary of Terms Audience Takeover A targeting technique that allows an advertiser to achieve dominant share-of-voice with a target audience. Behavioral Audience A targeting technique that categorizes customers by their interests. Campaign Destination Used to define where advertisers are sending consumers from their ads to view more content. Based upon thousands of campaigns, we find that campaigns drive to three primary destinations: Traffic to Site (the client s persistent mobile site), Custom Landing Page (a special mobile landing page created for the campaign), or Application Download. Connected Device A non-phone, Wi-Fi mobile device. This includes tablets. Cross-Platform Pertaining to multiple devices (s, tablets, feature phones, connected devices), carriers (AT&T, Verizon, Vodafone, etc.), or platforms (ios, Android, RIM, Windows Phone, Symbian, etc). Millennial Media is cross-platform or platform-agnostic because we do not focus on one single OS or device type. This enables advertisers to reach as many mobile users as possible, regardless of their mobile device or carrier of choice. Deal Size The size of a client s mobile advertising contract. Developer Provider/creator of mobile applications. Developers range from large entities (brands, portals, news sites, etc.) to individuals who focus on just a handful of applications. Along with publishers, developers inventory is where advertisers ads run. Developers are to App as publishers are to WAP. ecpm Also Effective CPM or Effective cost per thousand impressions. Used as a performance measure to estimate earnings for every thousand impressions received. ecpm is derived by dividing total earnings over total number of impressions in thousands. Any web-enabled mobile phone that is not a. Impression A count of the number of times an ad unit appears on a mobile device. Interactive Mobile Video A high impact HD video ad layered with interactive features that deliver a uniquely mobile, actionable experience to customers. Inventory The ad space available on mobile websites and applications. Local Market A targeting technique that allows advertisers to customize their message to local markets i.e. DMA to more precise levels of granularity. (Previously classified as GEO in earlier SMART reports). Mocial Mobile Social Media networking sites and applications. Post-Click Campaign Action The action a marketing campaign is driving the customer to take once an ad is viewed (i.e., Place Call, Download Application, View Map, etc.). Publisher Provider of mobile sites of well-known brands, perhaps newspapers, broadcasters or portals. Publishers also frequently have their own applications. Along with developers, publishers inventory is where advertisers ads run. Publishers are to WAP as Developers are to App. SDK Software Development Kit. A tool that enables developers to seamlessly integrate mobile advertising into their applications, thus monetizing their app. Developer partners on Millennial Media s platform download and integrate our SDKs (available for a variety of operating systems ios, Android, Windows Phone, etc.) to gain access to the ads run by our advertising partners. Any web-enabled and application-enabled mobile phone that runs on an operating system and offers the user more advanced capabilities beyond just voice and mobile web access. Vertical The classification of advertisers by industry. 0

11 Summary & Reporting Methodology About Millennial Media Millennial Media is the leading independent mobile advertising and data company. As an independent company, Millennial Media commands an impressive share of the mobile display advertising market. The company s technology, tools and services also power some of the largest companies in the media business today. Millennial Media is committed to growing the mobile advertising marketplace by becoming the preferred partner to all advertisers seeking to reach mobile consumers, all application and media developers seeking to maximize ad revenue, and all mobile operators seeking to further monetize their networks. The company has received numerous industry awards including the 00 OnMedia Top Private Company in Digital Media and the 00 Stevie for the Most Innovative Company. For more information, please visit join our Facebook community, or follow us on About S.M.A.R.T. The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T. ) delivers monthly insights on key trends in mobile advertising based on actual campaign and network data from Millennial Media, Inc. Millennial Media partners with major carriers, media networks and top-tier publishers to deliver the largest data set of any third-party U.S. mobile advertising network. As such, we are uniquely capable of reporting and analyzing the richest sets of carrier, device and campaign data collected over billions of monthly ad requests. Elevating and driving the whole mobile ecosystem forward is central to our company mission. to receive Millennial Media-related news including the Mobile Mix report, the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.) report, and the newly released Mobile Intel Series. For questions about the data in this report, or for recommendations for future reports, please contact us at research@millennialmedia.com. 0 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

12 THE GLOBAL LEADER IN MOBILE INTELLIGENCE for Millennial Media s powerful research reports, including S.M.A.R.T, Mobile Mix, and Millennial Monthly. Follow us on Like us on Facebook Connect with us on LinkedIn