Executive summary Chapter 1 Introduction Chapter 2 The online advertising industry outlook Chapter 3 The segments of the online advertising industry

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1 Table of Contents Executive summary The online advertising industry outlook The segments of the online advertising industry The emerging landscape of the online advertising industry Measuring the effectiveness of online advertising The mobile advertising industry outlook Emerging models Chapter 1 Introduction What is this report about? Who is this report for? Methodology Definitions of online and mobile advertising Definition of online advertising Definition of mobile advertising The mobile advertising system Chapter 2 The online advertising industry outlook Global online advertising market size by value Geographic segmentation of the industry Elements of online advertising Global media consumption time breakdown Share of total advertising spend by medium Global internet subscribers and internet penetration (percent of population) Chapter 3 The segments of the online advertising industry Segments of online advertising Search advertising Search engine optimization (SEO) Classified advertising Display advertising (banner ads) Search advertising Global search market share Regional search market share Online advertising segmental revenues Drivers and resistors of online advertising Drivers Resistors Pricing models in online advertising Cost per mille (CPM) Performance Cost per click (CPC) Cost per action (CPA) Hybrid Trends in pricing models

2 Chapter 4 The emerging landscape of the online advertising industry Google Google s business model AdWords AdSense Google s advertising revenues Google s strategies M&A deals strengthen core advertising business Partnering with social networking sites to attract advertising dollars Strategic initiatives to boost display advertising New features are targeted at increasing users and ads Yahoo Yahoo s business model Yahoo s advertising revenues Yahoo s strategies Outsourcing search to offset declining market share Countering Google s challenge in core display business M&A deals strengthen advertising business Strategic initiatives are aimed at transforming the firm into a content company Microsoft Microsoft s business model Microsoft s advertising revenues Countering Google through a strategic partnership with Yahoo Discontinuing cash back program in favor of social semantic search AOL AOL s business model AOL s advertising revenues AOL's strategies Transforming from an internet service provider into a content provider M&A deals power the transformation into online advertiser Painful restructuring efforts are aimed at attracting ad dollars Competitive positioning of key players Key players' ad revenues Average revenue per user (ARPU) Performance of key players Chapter 5 Measuring the effectiveness of online advertising Web analytics Google Analytics Yahoo Web Analytics Bing analytics AOL analytics E-commerce as a key performance indicator Chapter 6 The mobile advertising industry outlook

3 Mobile advertising market size Geographic segmentation of the industry Segments of the mobile advertising industry SMS advertising Display advertising Search advertising Mobile advertising segmental revenues Mobile apps Drivers of mobile advertising Rapidly increasing mobile penetration rates allow ads to reach a broader market Increasing global mobile phone shipments result in wider reach Rising global smartphone sales are resulting in a richer user experience Rapid growth rate of mobile broadband subscriptions to boost ad revenues Increasing 2G and 3G proliferation boosting the industry Resistors Small screen limits placement of number of ads Lack of a standard mobile platform Multiple player value chain Connectivity is still a challenge Resistance from ad companies Key players Apple s strategies Launching iad platform to boost mobile ad business Acquisition of Quattro Wireless enables Apple to battle Google iphone Apps and ipad fuel growth Google s strategies Acquisition of AdMob and other strategic deals to strengthen market presence Android drives mobile advertising business Stepping into location-based advertising for better targeting Apps lead the way Differences between Apple and Google Nokia s strategies Teaming up with Yahoo to offset declining market share Strategic deals spur growth Research In Motion s strategies Launching service platforms to boost apps business Shifting focus to consumer segment to boost mobile ad sales Competitive positioning of major OS platforms Number of apps by OS platform Global mobile OS platform market share Global mobile advertising market shares Global click-through rates Performance of major OS platforms Chapter 7 Emerging models Emerging models in online and mobile advertising

4 Semantic advertising Applying semantics to search Semantic advertising on mobiles Social networking advertising Growing popularity of social networking sites Social networking ad revenues Facebook and social semantic search Social networking on mobile Location-based advertising LBA on the mobile Video advertising Online video views Online video ads Video advertising on mobile Table of figures Figure 1: The mobile advertising system Figure 2: Global online advertising market size ($bn), Figure 3: Online advertising market share by region (%), Figure 4: Media consumption time breakdown (%), 2009 Figure 5: Advertising medium market share (% of revenues), Figure 6: Global internet and mobile broadband* users (m), Figure 7: Global internet penetration rates (%), Figure 8: An example of display advertising Figure 9: Market share of top five search companies (%), July 2009 Figure 10: Search market share by region (%), 2009 Figure 11: Global online advertising segment share (%), Figure 12: Internet ad share by pricing model (%), Figure 13: Google SWOT analysis Figure 14: Yahoo SWOT analysis Figure 15: Microsoft SWOT analysis Figure 16: AOL SWOT analysis Figure 17: Key online players' advertising revenues ($m), Figure 18: Competitive positioning of key players, 2009 Figure 19: An example of Google Analytics Figure 20: An example of cross-channel and multimedia tracking Figure 21: An example of score card analytics Figure 22: An example of ad hoc scenario Figure 23: Global e-commerce revenues ($bn), Figure 24: US e-commerce penetration vs. online ad penetration (%), Figure 25: Global mobile advertising market size ($m), Figure 26: Regional mobile advertising market share (%), Figure 27: Mobile vs. internet subscriptions of major Asian countries (m), 2008 Figure 28: Global mobile advertising segment revenue share (%), Figure 29: Global mobile apps downloads (m), Figure 30:Global mobile apps revenues ($m), Figure 31: Global service population penetration (%),

5 Figure 32: Global mobile phone shipments (m), Figure 33: Global smartphone shipments (m), Figure 34: Global fixed and mobile broadband subscribers (m), Figure 35: Global consumer fixed and mobile broadband revenue ($m), Figure 36: 2G and 3G mobile subscriptions (m), Figure 37: Global mobile search engine market share (%), 2009 Figure 38: Google s across-the-board value chain presence Figure 39: Number of apps by major OS platform, 2010 Figure 40: Global mobile OS market share (%), Figure 41: Global mobile advertising market share (%), July 2010 Figure 42: Global CTR index scores by OS, February, 2010 Figure 43: Competitive positioning of major OS platforms, 2010 Figure 44: Strengths and weaknesses of major OS platforms Figure 45: An illustration of semantics on a mobile device: 1 Figure 46: An illustration of semantics on a mobile device: 2 Figure 47: An illustration of semantics on a mobile device: 3 Figure 48: An illustration of semantics on a mobile device: 4 Figure 49: Leading global social networks by unique user numbers (m), end 2009 Figure 50: Social networking ad revenues ($m), Figure 51: The like button feature on Facebook Figure 52: Facebook on a mobile Figure 53: Online LBA revenues ($bn), Figure 54: LBA (CPC) model Figure 55: LBA (commission) model Figure 56: Online video ad spend market size ($m), Figure 57: Top US online video properties by views (m), August 2010 Figure 58: Top US online video properties by video ads* viewed (m), August 2010 Figure 59: An example of a mobile video ad Table of tables Table 1: Global online advertising market size ($bn), Table 2: Online advertising market share by region (%), Table 3: Global advertising medium revenues ($m), Table 4: Global internet and mobile broadband users (m), Table 5: Global internet penetration rates (%), Table 6: Global search market share (m), Table 7: Global online advertising segment revenues (%), Table 8: Google advertising revenues ($m), Table 9: Yahoo advertising revenues ($m), Table 10: Microsoft advertising revenues ($m), Table 11: AOL advertising revenues ($m), Table 12: Key online players' advertising revenues ($m), Table 13: ARPU of key players ($), 2009 Table 14: Global e-commerce revenues ($bn), Table 15: Global mobile advertising market size ($m), Table 16: Mobile vs. internet subscriptions of major Asian countries (m), 2008 Table 17: Global mobile advertising segment revenues ($m),

6 Table 18: Global mobile apps downloads (m), Table 19: Global mobile apps revenues ($m), Table 20: Global mobile phone shipments (m), Table 21: Global smartphone shipments (m), Table 22: Global fixed and mobile broadband subscribers (m), Table 23: Global consumer fixed and mobile broadband revenue ($m), Table 24:2G and 3G mobile subscriptions (m), Table 25: Global mobile OS market share (%), Table 26: Leading global social networks by unique user numbers (m), end 2009 Table 27: Social networking ad revenues ($m), Table 28: Online LBA revenues ($bn), Table 29:Online video ad spend market size ($m), Table 30: Top US online video properties by video ads* viewed (m), August 2010

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