Overview of the current status of Mobile Usage in Germany. Mobile Advertising Summit 2016 Jens Barczewski

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1 Overview of the current status of Mobile Usage in Germany Mobile Advertising Summit 2016 Jens Barczewski 1

2 #Mobile is there! 2

3 Mobile as a catalyst for change: As tablet sales explode, mobile web becomes mainstream Sales of Mobile devices Source: GfK Point of Sales Tracking; global sales value, compound annual growth rate from 2011 to 2014 GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

4 because Advertising has become complex! How to spread budget across channels? Online / Social Media % of Decision - makers think, Personal /direct Classic Media Marketing in general that ONLINE Channels are more inportant in future Source: GfK Verein Study 2012 / 2015; Base: 2015 n=601, 2012 n=648 4

5 Disruption of Advertising Mobile ad spendings growth, but not big engough Digital Display Ad Spendings (net in m ) Mobile Desktop Mobile ad-spending growths 53% in (FC) Source: OVK Online-Report 2016/01 5

6 # How Mobile is the German population 6

7 A new mobile generation is grow up Digital Less-/Non-User NONS Digital Standard-User STANS Digital Mobile User MODIS Non User Less- User Standard-User Gamer Networker Streamer Quelle: GfK ConsumerScan; Basis Haushaltsführung 7

8 because consumer needs and consumer behavior has changed! How to reach consumers today? Multiple media usage MODIS 33% Onliner 14+ Years 55% Mobile usage Quelle: Quelle: GfK Crossmedia Link, November 2015 CONSUMER BRAND IMK, Institut für Marketing und Kommunikation ad contacts per day 8

9 Streamer are intensive User from Smartphone and Tablets I m using following devices.daily or often - Results in % 63,1 68,7 67,7 57,2 66,9 67,0 Laptop/Notebook 36,1 42,6 26,9 Smartphone Tablet 15,2 17,2 16,8 Stans Gamer Networker Streamer STANS MODIS Quelle: GfK ConsumerScan, MAT 11/2015, Basis Haushaltsführung 9

10 Streamer und Networker sind nicht nur am POS seltener anzutreffen, auch über TV sind sie schwieriger zu erreichen Index of numbers of FMCG Shopping Trips (all Households = 100) Index of Ø TV Usage per Day (all Households = 100) (Nons) (Nons) (Stans) (Gamer) (Gamer) (Networker) (Stans) (Networker) (Streamer) (Streamer) Nons Stans Networker Gamer Streamer Quelle: GfK ConsumerScan, MAT 11/

11 #What triggers CAMPAIGN SUCCESS? 11

12 In order to optimize campaign impact, all relevant enablers of Advertising success have to be captured! 40% 30% CREATION SPENDING STRATEGY Emotional Activation CAMPAIGN SUCCESS Behavioral Activation 20% MEDIA PLANNING 10% COMPETITOR ACTIVITIES Source: GfK Crossmedia Link Jan 2013 to Jun 2014 Impact Benchmark 12

13 #MEDIA PLANNING for Mobile 13

14 Internet is mobile Smartphones have turned into the most important vehicle to go online (68% share of time) What we see? Mobile Browser 6% 94% App Source: GfK Crossmedia Link Germany (November 2015). Base: Multi-Screener 14+ (persons using desktop and smartphone) Desktop / fixed GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

15 What we see Mobil? Messaging/Chat and Gaming on Mobile each with 17% of total online usage time Online Video Gaming Shopping Social Networking News Download Messaging Other Other 1% 10% 3% 1% 4% 4% 4% 5% 13% News 18% 3% 7% 5% 1% 12% 8% Messaging/ Chat Online Video Download Gaming Social Networking Shopping 68% 32% Source: GfK Crossmedia Link Germany (November 2015); Base: Multi-Screener 14+ (persons using desktop and smartphone). Desktop / fixed GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

16 Online video has entered the domain of TV at considerable scale Mobile devices used for almost every other online video minute Share of Online Video Usage Time (in %) Other Internet usage Online Video total Social Networks 38% 40% 5% 3% 58% 57% Video Portals 34% 8% 59% 90% 10% Online Video ~7,5 h/month Media Broadcaster 28% 20% 52% Movie/Cinema Fanpages 22% 8% 71% Video on Demand 31% 24% 46% Cinema Operator 24% 6% 70% Mobile Tablet Desktop Source: GfK Crossmedia Link, typical month in 2014; Base: Persons 14+ using Desktop, Smartphone and Tablet 16

17 WhatsApp, Google Play and YouTube are the top three Smartphone Apps in Germany especially among younger What we see Mobil? Source: GfK Crossmedia Visualizer, Top Apps, February 2016, Base: Total German Online Population ( million); Base: 14+ // 14-29y GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

18 While the top three apps are used by the majority of the smartphone users other apps are much more selective Apps Net reach Feb Amazon 26% Google Search 56% ebay 25% Facebook Messenger 44% Facebook 47% WhatsApp 92% YouTube 56% Source: GfK Crossmedia Visualizer, Top Apps, February 2016, Base: Total German Online Population ( million); Base: Smartphone Users 14+ GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

19 While the top four apps are used by the majority of the smartphone users other apps are much more selective Apps Net reach Feb Source: GfK Crossmedia Visualizer, Top Apps, February 2016, Base: Total German Online Population ( million); Base: Smartphone Users 14+ GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

20 Guess what is used more on mobile and what is used more on desktop? Social Networking Source: GfK Crossmedia Link Germany (March 2016) Base: Multi-Screener 14+ (persons using desktop and smartphone) GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April 2016

21 Guess what is used more on mobile and what is used more on desktop? E-Commerce Source: GfK Crossmedia Link Germany (March 2016) Base: Multi-Screener 14+ (persons using desktop and smartphone) GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April 2016

22 Rise of digital: Significant numbers of consumers being online whilst they are shopping offline What we see? Source: GfK survey among 25,000+ mobile users in 23 countries, 2015 When you are in a store, which of the following do you regularly do with your mobile phone? GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

23 #CREATION How you can use it? 23

24 Creation is the key Mobile Ad Liking? 32% are thinking, that Online Banner are really disruptive. 48% are thinking, that Pre- Interstitial are really disruptive. 24

25 Measuring Impact: Awareness, Branding, Recall How you can use it? GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

26 Reach Proportion of target audience reached with each media or channel/publishers 39.8% total reach People exposed to the ad Target Did your campaign reach the intended target? Which media reached which people? Ad delivery Only browser: 13.7% Both Only in-app: 14.1% Browser 11.8% exposed 19.5% 20.3% In-app exposed Ad served to non-target audience 32% 68% Ad delivered to the target audience 26

27 11% Total awareness uplift But In-app drove a 20% downshift in consideration amongst target audience Browser exposed In-app exposed It also had poor preference and image results 4% 7% Browser had less impact either way 27

28 1 Mobile is there! Smartphones have turned into the most important vehicle to go online Summary Mobile is App. 94% of the mobile usage is spend in Apps Whats App, Facebook and YouTube are the killer apps There are still use cases which are done on desktop computers. E-Commerce is not yet mobile (compared to other categories) Mobile Advertisement can be very powerful! GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

29 Any questions? Jens Barczewski Head of Digital Market Intelligence Germany & Switzerland GfK 2016 Mobile Advertising Summit GfK Crossmedia Link Jens Barczewski 21. April

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