PRESENTING OUR NEW SPONSOR: SPENDING AND TRENDS MADREPORT 2013 FORECAST. APPTRACE ANALYSIS LOvE YOUR STATS APP STORE PRICE DROPS APPZAPP

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1 MADvERTISE MOBILE NETWORK INSIGHTS MWC.2013 SPENDING AND TRENDS MADREPORT 2013 FORECAST APPTRACE ANALYSIS LOvE YOUR STATS APP STORE PRICE DROPS APPZAPP RICH MEDIA STATS MOBILE FIGURES PRESENTING OUR NEW SPONSOR:

2 2 INTRO Intro Mobile World Congress We ve also teamed up with leading mobile analytics and ad verification company adeven and apptrace to showcase The apptrace Sentiment Analysis. Once again we ve collaborated with AppZapp, the App-Bargain-Guide for the App Store to bring you a detailed analysis of price drops in the App Store and of course, we have plenty of mobile stats for you. Dear mobile fans, welcome to the 7th edition of our madreport. In this Mobile World Congress special we have some exciting research and topics to share with you. Last year was a fantastic year both for madvertise and the mobile industry as a whole. In this madreport we ll be taking a look at mobile ad spend predictions and forecasting what s in store for We hope you enjoy the rich mobile data at hand and feel free to stop by our booth for a chat Hall 8.1 Stand C15. Have a great week at MWC, and a great 2013! All the best vincent Pelillo COO You can find us at the MWC Feel free to let us know what you think! at Hall 8.1 Stand C15

3 MWC.2013 INTRODUCING 3 Introducing Christof Wittig the new madvertise CEO Previous to madvertise, Christof was most recently Managing Director at San Francisco-based venture fund Kii Capital. Since 2008 he was the founding CEO of US- and China-based Servo Software. Prior to Servo he was co-founder and CEO of db4objects and before he first moved to the US to become a Sloan Fellow at the Stanford Graduate School of Business in 2004 he founded APSIS Software AG, a Munichbased software company. We re very happy to announce the arrival of Christof Wittig as the new CEO of madvertise. Christof has taken over from previous CEO Carsten Frien. After five years of building madvertise into one of the leading mobile advertising players in Europe, Carsten is stepping down to join the Advisory Board. Christof has been in the tech business for more than 18 years and has been a serial entrepreneur and CEO to several technology companies in the US and Germany. Having lived in Silicon Valley for the last decade, he now joins us at our headquarters in Berlin and will be supported by both COO Vincent Pelillo and CFO Stefan Benndorf. madvertise is in a unique position to capitalize on the explosive growth of the mobile advertising business. I am proud and honored to take over the reigns from Carsten who has done a terrific job as CEO since 2008, said Wittig. We will be able to expand on our unique market position in Europe and the cutting edge technology platform the company has developed, to cut a big slice out of the mobile advertising market. We look forward to a brilliant Contents madreport MWC madvertise 2013 Forecast SPENDING AND TRENDS 06 Love Your Stats APPTRACE ANALYSIS 10 Sponsor Shout-Out WE ARE 14 AppZapp APP STORE PRICE DROPS 15 Mobile Figures RICH MEDIA STATS more info at

4 4 MADREPORT 2013 FORECAST Spending and Trends madvertise Forecast: What s in Store For was a brilliant year for mobile with spending having reached a whopping $9.6 billion. According to Gartner*, 2013 is set to crush that record with worldwide mobile advertising revenue forecasted at $11.4 billion. The increased uptake in smartphones and tablets saw the mobile advertising market gain momentum much faster than expected, driving the growth in spend for brands and advertisers. Mobile advertising should be integrated into advertisers overall marketing campaigns in order to connect with their audience in very specific, actionable ways through their smartphones and/or tablets. Western Europe in particular will see a growth from last year s $1,600.5 billion to $1,941.4 billion this year alone, and is predicted to reach $23,560.1 by source:

5 MWC.2013 MADREPORT 2013 FORECAST 5 Gartner also expects the global sale of smartphones and tablets to reach a staggering 1.2 billion and Android is set to cross an installed base of one billion users. This year appears to be the year of the billions. The introduction of LTE in urban areas as well as the use of mobile video content and Rich Media formats will continue to rise saw the introduction of Rich Media standards (MRAID), which will no doubt become far more main-stream throughout the rest of this year. Another trend we re expecting to see more of in 2013 is the increased use in second screen technology. This covers the parallel use of smartphones and other devices such as TV or PC. M-commerce is already popular among many consumers, offering enormous potential for mobile advertising. As with E-commerce, mobile commerce will soon become an established part of everyday life for the general population. Many consumers already rely solely on their smartphones to research products and proceed to purchase. Mobile payments are also on the rise with constant innovation surrounding contactless payment and easier transactions. Recently introduced Passbook features functions that simply aren t available with its plastic and paper alternatives like alert you to changes in connected account information, and pop up through the home screen to be readily accessed based on your location. Real Time Bidding has already taken a hold in the mobile advertising world. RTB provides optimized value for money for advertisers as well as enhanced performance due to enriched user profiles. Re-targeting opportunities will be a key topic throughout Big players in the mobile space are already making their inventory available via RTB including Facebook, Google and AppNexus. There are sure to be more spendings dedicated to performance based campaigns (CPD). Attention will also be focused on the optimization of behavior tracking, for example in-app purchases or time spent using an app, much like the current processes in the online world. The focus is no longer on the potential of mobile advertising, but rather the day-to-day reality of its uses and the constant innovation. Combining mobile & big data the year will result in sophisticated analytics and better targeting. Big data will be a key currency in marketing throughout 2013, driving customer insights, budgets, strategy and pricing. Mobile is the medium for huge international advertisers as well as small local business both of which should be leveraging the ground breaking technologies emerging. With this in mind, we end our forecast with this: 2013 is the year mobile advertising gets smarter. more info at

6 6 APPTRACE ANALYSIS Apptrace Analysis Love Your Stats madvertise have teamed up with adeven a leading mobile analytics and ad verification company, to showcase some of the interesting sentiment analysis facts from adeven s free tool for developers, apptrace. The apptrace sentiment analysis covers all English language written reviews for apps live on the App Store. This includes the US, UK, Canadian, Australian, New Zealand and Indian App Stores. These are the App Store stats for the English language. The App Store currently has over 24 million reviews. Roughly, only a third of apps have received reviews. Only 257,229 apps have reviews and there are 529,895 without. In general, 50 % of all English language reviews are positive and exuberant, 22 % are about addictiveness in playing or using the app and 5 % talk about apps being glitchy or crashing. Among those with reviews only 72 % (186,053 apps) received any positive, crash or addictive sentiments. 40 % (102,810 apps) excelled with exclusively addictiveness or positive reviews. Surprisingly 2.7 % (6,917 apps) received exclusively a crash response review (i.e. a negative review saying that the app did not work). 50 % 22 % 5 % positive reviews about addictivness glitches and crashes On average, apps have 92 reviews per app. The app with the most number of reviews is currently Cut the Rope by Chillingo Ltd with 96,897 reviews.

7 MWC.2013 apptrace analysis 7 Apptrace Analysis Paid Apps vs. Free Apps Stats Free apps have on average 117 reviews per app (16,050,728 free app reviews distributed among 137,073 free apps) and paid apps have on average 66 reviews per app (7,551,743 paid app reviews among 114,187 paid apps). While this is the overview perspective, when we look at the details, we cannot generalise that free apps have more reviews than paid apps all the time. The paid vs. free apps review ratio shows that there are variations in the number of reviews from genre to genre. It is interesting to note that among less reviewed apps, paid apps showed significant average dominance comparing to free apps, while the opposite holds for apps with more reviews. The graph below shows how quickly reviews accumulate over time for the Games genre. The number of reviews accumulated in the first six weeks after an app is released is approximately a quarter of the number of reviews the app will receive in its first year of release. percentage of reviews 1.0 % 0.8 % 0.6 % 0.4 % First six weeks = One quarter of reviews overall 0.2 % paid apps free apps days in market more info at and

8 8 apptrace analysis Apptrace Analysis Top Reviewed App Genre The AppStore is divided into 72 categories or genres from Health to Lifestyle. The most frequently reviewed apps come from the Simulation, Adventure and Action categories. For example simulation apps average 225 reviews per app, where as social networking apps only average 69 reviews per app. The top five ranking are all Games genres. Ranking Genre # of apps # of reviews reviews per app 1 Simulation (Games) 11,057 2,492, Adventure (Games) 15,882 2,499, Action (Games) 32,806 3,251, Arcade (Games) 32,014 2,897, Games 159,751 12,565, Social Networking 30,577 2,111, number of apps average of 46 % positive reviews The most positively reviewed genres were: Education and Health & Fitness. The overall distribution of positive for apps can be seen in this diagram. 25 % 50 % 75 % 100 % App positive factor distribution

9 MWC.2013 apptrace analysis 9 Apptrace Analysis Most Addictive Apps Surprisingly the most addictive app is a preposition builder for school aged children. It is great to see academic apps also rating well with highly positive reviews such as: I know we will be using it for a long time. I played around for awhile and I really like it... We are definitely using it!! This app is so much fun my children do not want to stop playing oh i mean learning! My kids really enjoyed this, as they thought it was a game. These types of reviews are seen by our analyser as addictive reviews as they talk about using or enjoying the app over longer periods of time. The top five most addictive apps are listed below: PrepositionBuilder by Mobile Education Store LLC App ID StoryBuilder for ipad by Mobile Education Store LLC App ID Rainbow Sentences by Mobile Education Store LLC App ID Jumbline 2 for ipad by Brainium Studios LLC App ID Flower Board HD by Phoenix Solutions App ID % reviews about addictiveness 51 reviews 73 % reviews about addictiveness 79 reviews 70 % reviews about addictiveness 117 reviews 68 % reviews about addictiveness 56 reviews 67 % reviews about addictiveness 101 reviews It is also interesting to note that the developer of the three most addictive apps (relative addictiveness), Mobile Education Store LCC, has a low average global ranking for all of their apps, 90,681. Overall, the most addictive genres were Board, Puzzle and Educational. Data was gathered on 13 November 2012 by adeven. For more information visit more info at and

10 10 SPONSOR SHOUT-OUT We would like to present the mobile marketing agency Fetch, our friends from the UK. PASSIONATE ABOUT INNOvATION, DRIvEN BY RESULTS For Fetch, mobile advertising is not just about banners or app promotion, it is about translating real-world businesses onto the mobile platform. The strategic, creative and media solutions we devise are focused on our clients end requirements persuading consumers to take notice and guiding them down the path to purchase. So we believe that our goal is, amongst other things, to help book hotel rooms, find the perfect gift and place the winning bet it s about the way we can make the mobile platform work to the optimum in order to fulfil our clients business objectives. Our clients include Hotels.com, ebay and William Hill. Creative Fetch s award-winning in-house creative team is at the cutting edge of mobile design, consistently creating innovative and responsive campaigns across all advertiser sectors. We ensure that brands jump out of the device, offering customers the most engaging user experience, and delivering engagement. We create campaigns ranging from standard display banners all the way through to rich video, HTML5, mobile websites and applications, across the full connected device universe. Our creative team s work was awarded the prestigious Most Effective Mobile Advertising Campaign at Effective Mobile Marketing Awards, for a campaign we produced for Sony Music. Strategy Why does the mobile platform engage more people around the world every day than any other consumer device? There are three reasons why consumers reach for their mobiles first: fun, function and productivity. So marketers have a challenge: to understand how these three motivating factors can most effectively shape specific mobile campaign strategies to ensure their brands are keeping pace with today s always-on, always-on-the-go consumer lifestyles. Fetch understands that mobile is much more than just the Internet in your pocket. We provide our clients with a team of award winning strategists and a singular focus on leveraging usage behaviour effectively to engage consumers on mobile devices around the corner, or around the world.

11 MWC.2013 SPONSOR SHOUT-OUT 11 more info at and

12 12 SPONSOR SHOUT-OUT

13 MWC.2013 SPONSOR SHOUT-OUT 13 Tracking + Analysis = Optimisation FetchMe is the best in class technology we use to track and analyse every single impression, click and consumer action within our clients campaigns. FetchMe gives us unparalleled real time insight into the mobile consumer journey, from the user s initial interaction with the advertising message, all the way through to conversion. This insight gives our in-house analytical team millions of data points that they then utilise to optimise our clients campaigns to the most effective and best performing variables on a very granular level. This process guarantees that we consistently deliver the maximum possible return on investment. We d love to chat to you about this some more please to schedule a call or a meeting. Media Planning & Buying Fetch currently manages campaigns in over 40 countries across all connected devices for clients including ebay, Hotels.com, and William Hill. The far-reaching, rapidly-evolving, wide-ranging mobile landscape means that creating a mobile media plan requires experience and razor-sharp market knowledge. Our award-winning media team is 100% impartial and able to use their experience and expertise to plan the most efficient media choices for a brand or business to communicate with their audience and deliver results. Whatever an advertiser s aim encompassing acquiring new customers, driving awareness and increasing brand power Fetch will provide a comprehensive, bespoke media plan to deliver the results required to deliver on your campaign objectives. Our media buying team is able to leverage buying power and market knowledge to ensure the best rate; while the technology we use allows us to cut out re-sellers and buy direct from source, including Real Time Bidding across exchanges. more info at and

14 14 APPZAPP AppZapp Price Drops in the App Store In Europe and across the globe it s no secret that we love our apps! We ve teamed up with AppZapp the App Bargain Guide for the App Store to bring you a detailed analysis of price drops in the App Store. AppZapp took a deep look in the Apple App Store to unearth which categories see the most price drops, and exactly how long it takes for costs to be reduced. All findings are based on data of new apps located by AppZapp on the App Store from Top 3 price drops Games: 83 days Photo & Video: 85 days Weather: 91 days Top 3 longest time Navigation: 177 days Travel: 156 days Reference: 141 days More than one in every two games apps drops in price. Almost every second Photo & Video app sees a price reduction. With that in mind, waiting for an app to drop in price pays off. With some time and a good price monitoring tool like AppZapp it s easy to take advantages of these facts. AppZapp is the App-Bargain-Guide for iphone and ipad. AppZapp presents the latest and best app offers of the App Store. Trusted price and update alerts are prvided by either or push notifications. The AppZapp app is available for iphone, ipad and Android. Download it for free:

15 MWC.2013 Rich Media stats 15 Rich Media Stats Who? What? Where? We rounded up a handful of our figures surrounding Rich Media advertising formats. These should help you get an idea of which sectors are predominantly taking advantage of Rich Media and where and how this premium format is being put to use. Enjoy! CTR by sector 4.6 % Media 3.9 % Telecommunication 2.6 % Automotive 2.6 % Food & Beverage 2.7 % Services 2.5 % Textile 1.6 % Finance Rich Media Usage 51 % Telecommunication 17 % Services 17 % Automotive 12 % Media Usage by year 7 % in % in 2012 more info at

16 A Leading Mobile Advertising Player in Europe Paul-Lincke-Ufer 39-40, Berlin, Germany

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