Vpon Mobile Ad Q2 Hong Kong Mobile Advertising Statistics and Trend
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1 Vpon Mobile Ad 2014 Q2 Hong Kong Mobile Advertising Statistics and Trend
2 AGENDA About Vpon - Hong Kong Traffic increase 150% and reaches 400M monthly. HONG KONG MOBILE MARKET - MOBILE DEVICE MARKET SHARE - ANDROID/iOS SMARTPHONE, PHABLET AND TABLE HONG KONG USER BEHAVIOR - LOCATION, NETWORK, OPERATORS SHARE - USER BEHAVIORAL PATTERNS - THE MOST POPULAR APP CATEGORY BIG DATA ANALYSIS AND APPLICATION - USING BIG DATA TO IMPROVE ADVERTISING PERFORMANCE
3 ABOUT Vpon Inc. founded in 2008, is the leading mobile advertising platform in Greater China. Vpon focus on the area of mobile advertising for mobile devices. With proprietary technology and operating advantages, big data processing and analysis capabilities as well as insights into mobile brand marketing, Vpon has expanded customer base to over 1000 renowned brands including McDonald's, Coca-Cola, American Express and Citibank.! With presence in over 750 cities such as Beijing, Shanghai, Guangzhou, Hong Kong and Taipei, Vpon has over 380 million unique users and has raised some US$ 10 million in a recent round of venture capital funding. With subsidiaries in Shanghai, Tokyo, Taipei and Hong Kong, The company is rapidly-growth mobile advertising platform in Asia. Vpon is one of 2014 Top 6 company which have been selected by Forbes China, and the first choice of international mobile data/marketing platform.
4 Vpon in Asia 香 港 Top 3 台 灣 No.1 PAN-ASIA MAINLAND CHINA. HONG KONG. MACAU. TAIWAN. SINGAPORE. MALAYSIA. THAILAND. THE PHILIPPINES. INDONESIA. JAPAN AND KOREA. 6 BILLION ADVERTISEMENT REQUEST PER MONTH Source: UU, Q1 2014, Vpon Inc.
5 MMA China Third Party Digital Marketing Monitoring Platform Vpon is one of the founding member of MMA China (Mobile Marketing Association, China), has been devoting and participating in the development of standard of mobile advertisement in China. It has been approved by MMA China and got accreditation via AdMaster on third party digital marketing monitoring on 14May,14, supporting and complying with MMA China embedded ad API Monitoring Standard V1.3 Mobile Internet APP comprehensively.
6 New Momentum to Vpon $10M USD Vpon has completed a 10 million dollar series B funding round on 3July 14. The investors include well known Asian banks and top financial institutions which have invested Facebook previously. This funding will help accelerate the growth of Vpon subsidiaries in the APAC region and the expansion of its R&D team. Vpon also expects to attract top talents to join its Engineering, Sales, and Product teams.
7 Vpon - Taiwan 17 Millions UNIQUE USERS PER MONTH 1.7 Billions ADVERTISEMENT REQUEST PER MONTH 1,000 REPUTABLE ADVERTISERS Source: UU, Q1 2014, Vpon Inc.
8 Vpon - Hong Kong 5 Millions UNIQUE USERS PER MONTH 400 Millions ADVERTISEMENT REQUEST PER MONTH Source: UU, Q2 2014, Vpon Inc.
9 Growth of Vpon HK Traffic 400M 200M Monthly Impression 154% 6M Monthly Unique User 30% 3M Global Motto - Mobile First The rules of game in advertising is changing and it is changing globally. Research groups are expecting the global advertising market will triple itself in 3 years. Vpon s growth in Hong Kong network traffic certain align with the global prediction and reflects it is growing at a even higher speed. Network traffic at 150% and unique user at 30% in three months! Source: UU, Q2 2014, Vpon Inc.
10 Vpon Profile MULTI PLATFORM Support iphone / ipad / Android / mobile website SDK Provide high CPM & CPC advertisement revenue Comply with MRAID standard for international mobile ad MRAID, Mobile Rich Media Ad Interface Definitions, Source:
11 HONG KONG MOBILE MARKET
12 HONG KONG MOBILE DEVICES SHARE 86.4% Hong Kong market has a overwhelming number in Android users. ipad users maintains a 5% market share and on average it is more than 1 out of 2 iphone users have an ipad. Source: UU, Q2 2014, Vpon Inc.
13 ANDROID DEVICES SHARE 55.9% Phablets refers to display between Compare to Q1 data which is only 43.3%, and it is the first time outrun standard phone in market share. Even with upgrade of tablet hardware, still the tablet shows a slower growth than other. Source: UU, Q2 2014, Vpon Inc.
14 TOP 10 ANDROID MODELS Samsung Note2 Samsung S3 Samsung S2 Samsung Note Samsung Note3 Samsung S4 Samsung Note 10.1 Samsung tab 2 Samsung S Adv Sony Xperia Z Release in 2013 Sep Release in 2013 Apr Release in 2013 Feb SAMSUMG 9 out of top 10 are Samsung phones, they dominates the Android market. Note series maintains it top 5 positions and it shows users are inclined to larger screen size. Source: UU, Q2 2014, Vpon Inc.
15 TOP 10 ANDROID MODELS Samsung Note2 Samsung S3 Samsung S2 Samsung Note Samsung Note3 Samsung S4 Samsung Note 10.1 Samsung tab 2 Samsung S Adv Sony Xperia Z Release in 2013 Sep Release in 2013 Apr Release in 2013 Feb PHABLET displays are the most popular choices, taking half of the top 10.are both in. Within which display of are the most widely accepted Android screen sizes! Source: UU, Q2 2014, Vpon Inc.
16 ANDROID OS SHARE 95.4% Version 4.x has been installed by 95% users within which Jelly Bean dominates and takes 69% KitKat released in 2013 Nov reaches 20.2 % and is expanding to new android devices as native OS. Version 2.x and 3.0 sharply diminished, remains 4% and 0.4% Source: UU, Q2 2014, Vpon Inc.
17 ios DEVICES SHARE 40.3% Given there is no new ipad release in Q2, the ipad market share maintains at 40%. The market is expecting new version of ipad in Q3 and it will stimulate another replacement wave. iphone 5s and 5c gradually replace their previous models, iphone 4 and 3GS. Source: UU, Q2 2014, Vpon Inc.
18 ios SHARE 91% Since the release of latest OS in Sep 2013, most of the Apple users upgraded to the OS7. Compare to Android, it forms a more unified platform and delivers the most updated functions to users. According to the WWDC14, Apple announced the new ios8, the marketing is expect it fall this year. It shall further replaces the minority ios4, 5 and 6. Source: UU, Q2 2014, Vpon Inc.
19 MOBILE BROWSER SHARE 59.4% With the popularity of Android devices, the native Android and Chrome Browser share nearly 60% of the browser usage. Chrome is growing rapidly from 4.7% in Q1 to 24.1% in Q2. Source: UU, Q2 2014, Vpon Inc.
20 HONG KONG USERS BEHAVIORAL PATTERN
21 HONG KONG 18 DISTRICTS LOCATION 43% New Territories shares most of traffic while Hong Kong Island and Kowloon share 17% and 39% respectively Traffic concentrates in Middle Kowloon and West New Territories. Source: UU, Q2 2014, Vpon Inc.
22 NETWORK OPERATION SHARE 71.7% Top three operators totally shared, the top operators is CSL sharing 27.9% CSL started to increase monthly cellular traffic price and PCCW abolished traffic ceiling in Jul. Still, it is expected the inelastic demand will stay strong and the price only has minor effect on the users. Each of five players have 4G LTE Source: UU, Q2 2014, Vpon Inc.
23 MOBILE INTERNET ACCESS SHARE 59.7% Daily traffic through Wifi The wifi usage slightly increase from 55.8%(Q1) to 59.7%(Q2). Source: UU, Q2 2014, Vpon Inc.
24 WEEKDAYS HOURLY TRAFFIC Cellular Wifi Cellular Daytime Wi-Fi Nighttime Cellular dominates day time usage, lunch time at 1:00 pm and off-work commute period at 6 p.m are the peaks Starting from 7 p.m onwards, Wifi takes over when people get back home and reaches the peak at 10 p.m. Source: UU, Q2 2014, Vpon Inc.
25 WEEKEND HOURLY TRAFFIC Cellular Wifi WIFI DOMINATES All HOURS Wifi traffic increases significantly after 7 p.m Cellular traffic shares less than wifi throughout the day, users may prefer to stay at home or places where wifi available. Source: UU, Q2 2014, Vpon Inc.
26 HOURLY TRAFFIC Android iphone ipad PEAK HOURS at 1 pm & 6 pm Android and iphone traffic spikes at lunch time at 1 p.m and off-work commute time at 6 p.m Use of ipad especially for videos increase drastically from 8-12 p.m and in nighttimes Source: UU, Q2 2014, Vpon Inc.
27 ANDROID MOST POPULAR APP 78.2% With the high stickiness of Video and Entertainment apps, users are fond to use bigger screen phones, like phablets. Then it is followed by the news and life App concerning gourmet, transportation, beauty and fashion, covering 8%. Source: UU, Q2 2014, Vpon Inc.
28 iphone MOST POPULAR APP 73.4% iphone users spend most of the time in Life and Entertainment Apps including gourmet, transportation, beauty and fashion. For a smaller 4 screen display, not optimized for video, and it explains why lower video app sharing in iphone. Source: UU, Q2 2014, Vpon Inc.
29 ipad MOST POPULAR APP 84% More than half ipad users download Video App for productions from Taiwan, Korea, China and Japan. ipad serves a complement to iphone and has its unique user behavior focusing on video apps. Source: UU, Q2 2014, Vpon Inc.
30 Big Data Analysis and Application
31 Vpon Big Data Vpon has more than 380 million unique users, by collecting user behavior on advertisment, we are handling more than 10TB data each month. With multi-dimensional data mining, we find the specific prospective customers for advertisers. Vpon has not settled for accurate targeting by optimization, sending the ad to the right audience. We lower the cost and promote higher CTR at the same time and hence improve the effectiveness of the mobile advertisement. Collect User Pattern information Link to Advertiser data base Big Data Analysis Optimize Targeting Click Preference Mobile Device APP Category Ad Personality Timing Location Social Pattern Integrate to other data base. ie. Customer s existing CRM data base social fans page (facebook fans) Categories Grouping Recommendation Retargeting Audience Targeting Personalize Marketing Cross Media Platform Second-Party Data First-Party Data
32 Successful Case Optimized Ad Effectiveness Click Through Rate +3.6 times - 5 times TOTAL Impression Target Reach 85% TA 81% Normal Optimized Normal Optimized! Vpon leverages big data to assist advertisers to preform dependence analysis, through click pattern, we can spot out the prospective customers, such optimized CTR outperforms the normal one 3.6 times.! Using recommendation algorithm to locate the target segment, it effectively reduces excess impression and lower advertising cost. In optimized case, even the total impression shrinks 5 times than before, the actual reach to target segment has only a tiny change.
33 Successful Case Optimized Conversion rate CTR(Click Through Rate) CVR(Conversion rate) +3.6 times CVR +1.8 times +4.9 times Normal Optimized Normal Optimized Further Optimized! Use of analytic algorithm allocates ads to precise target customers, thought only a minor lift on the CTR while Vpon achieves to 3.6 times conversion rate.! Through accumulation of data as time goes by, Vpon will be able to perform continuous optimization. After multiple algorithm calculation, Vpon is able to achieve 4.9 time conversion upon the first optimization and another 1.8 times upon the second run.
34 Big Data Critical 3R Looking at big data at economic perspective, in classical theory, rich and richness is a trade off to each other; while in nowadays digital times, with the advancement of technology, it is possible that we can break through the compromise to create bigger value for all. Regarding big data, apart from Reach and Richness, another critical information of mobile data is Range which is the variety of mobile usage scenario. Classical-> Digital Economics Big Data Economics High Digital Economics High Richness The power source of behavioral forecasting Richness Low Classical Economics Range Reach Reach of unique users High Low Reach High High The customer affiliate of whole context
35 Range affects the accuracy of big data Cross use of multiple mobile device has become the trend, for every ad campaigns, the effectiveness and achievement of itself is closely related to the interaction and synchronization of other media. Reach Mobile Campaign TV campaign Offline Campaign Request Reach Reach Impression Rating Buzz Click View Traffic Richness Range Conversions Brand Awareness Actions
36 Successful Case 3R for best performance APP App Download Rate Optimized Conversion Rate 16.00% TV Ad 14.00% 12.00% % % % % % 0 Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Resonance of integrated media advertisement 0.00%! By studying the app download and conversion rate through big data optimization, we find resonance of TV and mobile advertisement and effectively improve the ad performance as a whole. By synchronizing the campaign and ad material, executing TV and mobile campaign at the same time, the conversion rate of mobile advertisement is even better than normal app download rate and it vividly depicts that in the time customers cross-use of multiple mobile devices, the consideration of range becomes the critical factor.
37 Embrace Big Data! Big Date is not just quantitative analysis " Big data analyzes various external factors " Consumers s cross-use of multiple mobile devices affects the accuracy of analysis! Reach, Richness, Range " Reach Base of analysis, the larger the sample size, the more accurate the analysis " Richness The richer the source information, the better we understand user behavior and the higher precision of targeting. " Range The variety of usage context affect the accuracy of big data analysis # Total strategy of cross media: matching and integration # Synchronization of creatives! Vitalize advertisers data base(i.e: member info) to combine with big data analysis " M-CRM " Personalized Marketing " Audience Targeting
38 ABOUT THE REPORT All data comes from Vpon Inc.! To download the report, please go to Vpon Data Insight CONTACT US Website: For For advertisers:
39 Thank You!
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