ADDICTIVE MOBILITY 2014 YEAR END REPORT

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1 ADDICTIVE MOBILITY 2014 YEAR END REPORT

2 FOREWORD Mobile has become the connective tissue witnessed a clear demarcation between Global brands and Agencies who have fully embraced mobile advertising compared to those who remain under the notion that digital advertising continues to be synonymous only with online advertising. With the release of our 2 nd our annual report on mobile advertising, we attempt to highlight how much advertising on mobile has evolved in the last 12 months. We believe this report will showcase the various elements that need to be considered in trying to successfully navigate the rapidly changing mobile advertising landscape. - Naveed Ahmad CEO, Addictive Mobility 2

3 2014 At A Glance : Mobile Grows Up For Addictive Mobility For Addictive Mobility Clicks + 81% CTR + 25% Engagement Rate + 14% Clicks CTR Impressions Served Engagement Rate 100% Video Completion Rate Impressions Served +133% 100% Video Completion Rate +18% 3

4 Expansion in the Middle East region saw a shift from performancebased strategy to brand engagement which fostered enormous growth in 2014 Traditionally, the Automotive industry utilized out of home and print. Explosive growth was driven by luxury car manufacturers who recognized the opportunity to behaviourally target affluent users. Success within the Telecom industry is possible, however unlike North America, there are a limited number of carriers driving down the competition. As geo targeting capabilities increase in the region, QSR initiatives are expected to increase in % + 1,359% + 385% - 12% + 230% Automotive CPG Travel & Tourism Telecom QSR 5

5 ios devices make up 46% of the unique visitors, but 69% of the clicks Ad Blocking apps on Android were downloaded 17% more in 2014 than in 2013, indicating that despite new user IDs in the system, the ability to remarket to them has been diminishing. CTR for native advertising units on ios was 125% higher than on Android. Native worked best on ios for shopping and movie advertisers, with an average engagement rate of 21.5%, compared to 14.2% on Android. Operating System Breakout % 46% Unique Visitors 54% 54% Impressions 46% Clicks 69% ios Android 6

6 As creatives become more immersive, CTR growth for traditional ad formats has plateaued, while Video and 3D Interactive has flourished Banner ads in 2014 saw a decrease of 36% in CTR, as this ad format has been eclipsed by rich media units and video inventory increasing in the marketplace. More advertisers employed interstitials this year, bringing media spend more in line with banner performance. Additional ad real estate in the unit, coupled with multiple call-to-actions, drove the CTR up 124% over 2013 levels Video inventory was rolled out in March 2014, and showed a strong average CTR at 11.33%. The majority of videos were thirty second spots with an opt-out at the 25% mark, indicating that compelling video must capture and engage users in 7.5 seconds after auto-play. Banner Interstitial Video 3D Interactive 7

7 Leveraging Geo Data allowed advertisers to improve the efficiency of their media dollars Middle East Approx. 163 Million 2.0 Million Location Enabled Daily Unique Users Location Enabled Daily Bid Requests Low Density High Density Monthly Bid Requests In 2013, approximately 13% of requested campaigns included some sort of geo based targeting. In 2014, 1 out 4 campaigns requested some sort of geo based targeting. Source: Addic,ve Mobility EngageFront/Metamarket 9

8 According to one of the largest mobile SSP 45% of all global in-app GPS data is accurate TOP APP CATEGORIES THAT PROVIDE GPS LOCATION DATA Monthly bids Gaming 18.6M News & Information 8.01M Entertainment & Music Social Lifestyle & Fitness 158M 110M 89.8M 10

9 App inventory changed dramatically in 2014, with behavioural targeting showing advertisers their audiences may not be where they think they are Music +150% Productivity +22% Entertainment +6% Lifestyle/ Fashion/ Beauty Sports Social & Communication Health & Fitness Books Medical Travel & Hotels - 24% -3% -5% + 334% - 19% - 39% - 66% Music apps saw an increase in CTR (150% YoY), despite growing paid subscriber numbers (+112% increase over 2013) that allowed users to listen commercial- free The addi,on of Skout, AskFM and Pinger in the Google Play App store led to over a 1000% increase in served impressions to social apps Finance app inventory decreased significantly as publishers removed their placements from the open market. Behavioural targedng focusing on look- alike modelling was employed to minimize CTR drop off. News - 32% Finance,/ Business - 49% Food & Drink -14% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 11

10 Engagement Rates saw a 47% increase for interstitial ads that included additional action elements Social Media Adding the TwiOer Follow buoon to inters,,al ads increased the engagement rate by 11%. Facebook Like buoons increased engagement rates 36%. Store Locators Adver,sers who included a link to find a physical store saw an engagement rate of 1.51% on that event. Drive- to- store strategy was 73% more effecdve when coupled with geo- fencing. Digital Coupons Mobile coupons work best in the CPG and QSR industry ver,cals, though engagement rates vary based on the adver,ser s offer. Offers with a percent off savings performed beper than ones with a free service or product. Immersive Experience Dynamic crea,ves that allow users to play with the ads increase viewable Dme by 467% compared to sta,c banners and engagement rates averaged 19%. 12

11 2015 MOVING F O R W A R D As the digital and physical worlds merge, Addictive Mobility s innovation in the mobile advertising is taking marketing to new heights Geographic retargeting 3D Interactive Video Behavioural targeting Self-serve programmatic buying tool Ads are served only where they are relevant Programmatic buying No more spray-and-pray. Buy media at its market value Take creative in a whole new direction with rich animation Native Advertising Units designed to shape content around marketing messages Find the right customer based on their mobile app usage Private marketplace deals The most efficient path to premium properties Take control of mobile strategy by utilizing Addictive s proprietary tool In-App Retargeting Re-engage your audience 13

12 2015 The Year Ahead Evolution of Data to Storytelling: Brands will be demanding a better understand of their digital spend with clear measurement tools. We will move from reporting on CTR numbers to analysis of post campaign data. Immersive Mobile First Messaging: There will be a more integrated marketing approach to mobile advertising. Advertisers will leverage `sight, sound and motion utilizing all mobile ad formats: Video, Rich Media and Native Ads. Additionally, there will be an increase in creative AB testing and creative analytics. Greater Data Points: There will be a greater demand on publishers to provide more robust user information via impression data passed to either DSPs or DMPs. More publishers will begin to pass better Geo data, demographic data to improve audience targeting. From many to a selected few: Both Agencies and Brands have significantly increased their knowledge in regards to the offering provided by Ad Tech platforms. They will now begin to choose partners offering clear differentiators. Additionally, there will be an continuation of vendor consolidation via M&A activity. TORONTO VANCOUVER UK DUBAI 2 Pardee Ave Unit #101 Toronto, ON, M6K 3H5 T(+1) F(+1) West Hastings Street, Suite 800 Vancouver, BC, V6E 3T5 T(+1) Charlotte Street, London W1T 2NS UK T +(0) M +(0) , JBC3, Cluster Y Jumeriah Lake Towers, Dubai, UAE T +(971) Contact us: Website:

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