consumers go mobile in cee 2014

8/10/2019 Consumers Go Mobile in CEE 2014

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Consumers go mobile in CEEMobile market overview

Source: stock image bank Fotolia


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CONTENT

Mobile internet in CEE 2-11

12-13

14-1516-17

18-19

20-21

22-23

24-25

26-27

28-2930-31

32-3334-35

36-37

38-39

40-41

42-4344-4647-48

49

49

Belarus

BulgariaCroatia

Czech Republic

Estonia

Hungary

Latvia

Lithuania

MacedoniaMoldova

Poland

Romania

Russia

Serbia

Slovakia

Slovenia

Turkey

Ukraine

Methodological Note

Authors


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MOBILE INTERNET IN CEE

IS 2014 FINALLY THE YEAR OF MOBILE?

DESPITE THE DYNAMIC GROWTH, MOBILE AD SPEND CONSTITUTESA SMALL SHARE OF TOTAL ONLINE BUDGETS

The year of mobile has been announced each and every year since 2012, but market professionalsseem to agree that 2014 is finally the year when mobile truly becomes a mainstreammarketingsolution. Accordingto the latest , the definitive guideto the state of the European online advertising market, there was a breakthrough in mobileadvertising already in2013. Mobile was neither only a part of advertisers' experimental budgets ,noran afterthought to a digital campaign. Mobile advertising spend continued to grow dynamically inmost investigatedmarkets.Mobile display advertising was also the main factor influencing the growthof onlinedisplay advertising.It grew by14.9% in total, but would only have increased by 1.1% withoutthe contribution of mobile.

IAB Europe AdEx Benchmark report

However, when we look more closely at the numbers, the reality does not reflect the industry'senthusiastic approach. Close scrutiny of the top 3 European spenders on mobile advertising shows thatmobile advertising is becoming a reality only in United Kingdom, where a quarter of online display adspend is allocated to mobile. In France and Germany, it constituted only 9.2% and 4.9% of total onlinedisplay ad spend, respectively (see Figure 1).

Figure 1. Top 3 European countries bymobile advertising spend

Source: IAB Europe AdEx Benchmark 2013 report, IAB Europe and IHS, July 2014,

http://www.iabeurope.eu/files/8014/1111/3050/IAB_Europe_AdEx_Benchmark_2013_Report_v3.pdf

54.9%

66.7%

92.9

65.0

184.9

47.8

43.0

Mobile displayad spend

2012 (m)

Mobile displayad spend

2013 (m)YoY Growth (%)

192.7%549.0

1015

1319

Total onlinedisplay ad spend

2013 (m)

2192

AdEx Benchmark YoY growth rate calculation: to provide data on previous year growth rates, the prior year's figures arealso re-calculated using the current report's year-average exchange rate (i.e. the 2013 exchange rate is used on the 2012figures) in order to give transparency over the growth rate.

Mobile display asa share of total

online display (%)

9.2%

4.9%

25.1%

United

Kingdom

France

Germany

The situation in countries of the Central and Eastern Europe is very similar. The dynamics ofgrowthin many countries, such asRomania (244.9%), Serbia (153.3%), Hungary (126.1%) and Poland(110.6%), is stillveryhigh, yetmobileadspendconstitutesasmallpartof total online budgets (seeFigure 2).

1

2


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Source: gemiusDirectEffect, Dec 2013 - May2014

Desktop CTR

Mobile CTR

0.67% 0.67%

0.96%

0.33%

0.65%

0.44% 0.45%

0.49%

0.43%0.41%

0.26%

0.44%

0.20%

0.28%0.24%

Serbia

Slovakia

HungaryBulgariaCzech

Republic Croatia Romania

Latvia

Poland

Lithuania

0.00%

1.00%

0.80%

0.60%

0.40%

0.20%

4

0.67%

0.52%

0.67%

0.50%

0.27%

Figure4. Mobile vs. desktop Click Through Rate (CTR)

There are several challenges the markets have to face in order to increase the popularity of mobileadvertising and monetize the mobile audience.

The last, but obviously not the least important reason for the rather small interest from the marketsin mobile advertising is the high price of mobile inventory in comparison to the standard displaypricing.

Despite the fact that mobile advertising is still far from becoming a mainstream marketing solution in theCEE region, this process has already started and will be continuing due to the increasing usage of mobiledevices among internet users.

Moreover, markets lack proper measurement of the mobile audience, which is essentialfor effectivemedia planning. Measurement of PC, phone and tablet platforms has been available via GemiusMultiplatform Audience Measurement since March 2014.

Content is king regardless of the device used for browsingthe web. Mobile devices give the opportunityto target users with the right content in the right place and time on an unprecedented scale.However, the biggest challenge for advertisers is to keep the balance between personalized andintrusive content.

Investments in mobile or at least responsive versions of websites are required for attractingadvertisers. Users tend to surf the web on their tablets or smartphones more and more often and

this trend sets a new standard for website building. Despite this requirement, on most markets themajority of websites have not yet been adapted to the new mobile reality. Most brands are takinga rather slow approach by simply adapting their existing websites. Just to mention Bulgaria, where outof 300 websites taking part in gemiusAudience research only 30 have a mobile version.


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Mobile internet used to be a luxury that only few could afford and use on a daily basis. Nowadaysalmost everyone, from children in playgrounds to seniors, have mobile phones or/and tabletsconnected to the internet. According to GSMA Intelligence, SIM card penetration in almost all ofCEE countries, apart from Serbia, Bosnia & Herzegovina and Turkey exceeded 100% in Q42013.

MOBILE TRAFFIC IN THE CEE GREW FROM 3% TO 10% IN THELAST TWO YEARS

5

Source: GSMA Intelligence, www.gsmaintelligence.com, Q4 2013.

Figure 5 . Number of SIM connections and SIM penetration in CEE

The ongoing development of new technologies means that a growing share of online populationconnect to the internet via their mobile devices. A dynamic growth of mobile traffic could be observedin the past two years. In 2012, mobile constituted only 3% of the internet traffic in CEE, excluding

in-app traffic. This number has grown to 10% at present, mostly due to the rapid increase ofsmartphone page views.

penetration


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Source: gemiusRanking, June 2011- June 2014

Aggregated data fortheCEE region include the following countries: Belarus, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic,Estonia,Hungary, Latvia, Lithuania, Macedonia, Moldova, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Ukraine .

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Despite the growing popularity ofthe mobile internet, it has to benoted that the CEE region is highlydiversified in respect of the numberof users or the share of mobile pageviews per device. The leader isCroatia, where in June 2014 over

20% of page views were made viamobile devices. Above the CEEaverage are also countries such asLithuania (18%), Slovakia (17%),Serbia (16%), Turkey, Macedonia,Bosnia & Herzegovina and Estonia(14%). On the other hand,there arecountries performing much belowthe average, like Moldova (1%),Ukraine (5%) and Belarus (6%).

Phone Tablet

3%

4%

4%

2%

3%

2%

3%

2%

4%

5%

3%

3%

5%

4%

2%

3%

2%

1%

14%

13%

14%

8%

12%

7%

12%

5%

9%

6%

9%

4%

7%

4%

8%

3%

0%

18%79%

82%

83%

84%

89%

86%

90%

86%

91%

86%

91%

88%

91%

89%

94%

PC

89%

95%

99%

89% 8% 3%

Bosnia & Herzegovina

Croatia

Lithuania

Slovakia

Serbia

Macedonia

Estonia

Czech Republic

Hungary

CEE

Slovenia

Romania

Belarus

Latvia

Bulgaria

Ukraine

Moldova

Poland

Russia

Figure7. Mobile page viewsin CEE by countries

Source: gemiusRanking, June 2014

Figure6. Mobile page viewsgrowth in CEE3

PCTablet Phone

2011

.01

2013.01

2013.06

2014.01

2014.06

201

1.06

2012

.01

2012.06

3%97% 7%2% 90%1%


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INTERNET CONSUMPTION PATTERNS ARE DIFFERENT ON EACHDEVICE TYPE

With the growing popularity of mobile devices, the consumer behavior on the internet has becomemore complex than ever before. Internet consumption patterns are very different on each device type.During the week, 52% of the PC traffic happens during the working hours, between 9 a.m. and 5 p.m.During the weekend, the pattern changes: 54% of the PC traffic takes place between noon and 8 p.m.

During the weekday, tablets are mostly used in the afternoons 50% of the tablet traffic is recordedbetween 4 p.m. and 11 p.m. However, during the weekend, tablets are used equally during the wholeday starting from 9 a.m. and ending at 11 p.m., reaching its peak between 10 and 11 p.m. Similarly,phones are used equally during the whole day, with a peak time between 9 and 11 p.m. during theweekday, and between 9 and 10 p.m. during the weekend.

Source: gemiusRanking, 27 June 2014, 1 June 2014

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

Figure 8. Hourly distribution of page views for PCs, phones & tablets in CEE (weekday, 27 June 2014vs. weekend, 1 June 2014)

7

PhoneWeekdayPhoneWeekend

Tablet Weekday

Tablet Weekend


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APPLE RULES TABLETS, SAMSUNG PHONES

Some very interesting conclusions may be drawn when analyzing the most popular mobile producersand operating systems. Apple is the most popular manufacturer of tablets 55% of page views in CEEinJune 2014 were made with the use of devices of the Cupertino giant. However, its gradually losingitsposition, while Samsung is on the rise in the last two years the number of page views generatedfrom Samsung tablets increased from 18% to 23%.


When it comes to smartphones, the undisputed leader is Samsung - 37% of page views in CEE in June2014 were made with the use of its devices. Both, Samsung and Apple, are steadily strengtheningtheir positionin the smartphone producers segment. This is caused by the slow decline in the popularityof Sony devices and the spectacular drop of Nokia (from 21% in January 2013 to only 12% in June 2014)due to its late entry into the marketwith smartphones.


Figure9. CEE: Top tablet manufacturers and operating systems by share of page views

45% 55%

16%

13%14% 16%

33% 37%15% 14%

34%

14% 15%

35%

01.2013 06.2013 01.2014 06.2014

6%

68%

18%

01.2013

7%

60%19%

06.2013

6.5%

58%21%

01.2014

6%

55%23%

06.2014

72% 16% 4%

Figure 10. CEE: Top phone manufacturers and operating systemsby share of page views

8

WindowsPhone 8

Android

iOS

Samsung

Sony

Android

Apple

iOS

Samsung

Asus

Apple


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The nature of the mobile device has changed dramatically in the 41 years since the first hand-held cellphone was introduced in 1973. Still, mobile devices will change even more radically in the next 10 to 15years. Hardware improvements will take a backseat to ways in which the mobile devices can makepeople's lives better. After all, how many megapixels, megahertz, and megabits per second do we reallyneed? Main directions of change will occur in three areas: customization, simplification, andmachineto machine (M2M) communication.

Martin Cooper, Mobile Phone Inventor

The concept of wearable devices is still in its infancy. But we are evolving the vision of devices thatmeasure dozens of vital signs on the body and communicate these to computers that can analyzethem and determine whether our bodies are about to malfunction. Other devices will give us theability to control our surroundings and our property without regard to distance. These devices willprotect us and make us more productive.Of course, this future that I envision will not happen unless the cost of wireless service is radicallyreduced. History tells me that this most certainly will happen. The cost of sending a bit of informationhas gone down by half every 3 1/2 years since Marconi sent the few bits that he transmitted acrossthe ocean. This translates to 1 trillion times improvement up to the present and that trend willcontinue.

Smartphones are much too complicated! As with any really good technology, the smart phone ofthe future will, virtually automatically, adapt itself to the individual who acquires that device.

The intelligent phone will ask a few questions and observe the habits and processes of the individualand adjust itself accordingly. The opposite extreme is the present situation: a customer buys asmartphone and is told that there are over one million applications available, and is left to figure outwhich of them are useful. As an example, the optimum voice communicator will ultimately beembedded under our skin, perhaps behind our ears, and will work virtually automatically. We will onlyhave to think about speaking to somebody and we will be connected.

One of the wonderful things about human beings is that we are all different from one another andyet, when it comes to our mobile devices we have been severely limited in our choices. Steve Jobsdecided that he knew exactly what we would all love and offered us essentially one model. Thevariety in mobile device offerings is increasing, but we have a long way to go before mobile phonesubscribers have the same variety of choice as automobile buyers.

The smartphone of the future will, in a virtually automatic manner, adapt itself to theindividual who acquires that device.

IT IS THE ERA OF MOBILE CONSUMERS IN CEE, BUT MOBILE

ADVERTISINGLAGS BEHINDSumming up, we can already say that the era of mobile consumers in CEE has come, but it is still not the era of mobile advertising. The very nature of the web use is changing, which largely stems fromthe technological progress. In practice, the growing number of smartphones and tablets means significant changes in the behaviour of users. This will affect the ways in which they spend theirleisure time, the frequency of browsing the web, and increase their appetite for mobile apps. Withthese devices, internet access has become practically unlimited. The smartphone and tablet marketboom is observed all over Europe of course with some variations in the scope of the phenomenon.Yet, the common ground is the rise in the demand for this type of devices. This trend poses new

challenges to advertisers who are interested in getting their message across via the internet, toonline publishers and the entire business operating on the web. Every industry orcompany operatingonline must address the specificity of mobile devices and the new obstacles, but alsothechances theyoffer.

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Understanding the trend should serve as a basis for a new model of online business presence: bothbrand and sales oriented. Because we are dealing with a market where every fourth or third webconnection is made with a mobile device, this must be taken into account, so that the contact withinternet users is not broken. Be them the current or potential customers.

According to GSMA Intelligence SIM Penetration exceeds 100% in almost all countries in our region.Share of mobile page views for the whole region grew in the last two years from only 3% to 10%.In western countries this is even more visible in Denmark mobile traffic grew from 19% in July 2012to 45% in July 2014. We have to face it - mobile is not anymore a buzz word but it is the new reality. But advertisers can't think about mobile as a stand-alone strategy.Customers may be using different channels to communicate or interact with a brand. Our research shows

how users are waking up with the phone & tablets, spending their working day with PC and using moreintensively again tablets in the evenings. We should not overlook this fact. Advertisers need to plan howto reach the right consumer with the right message via the right channel. What they need to do is toincorporate mobile in their overall communication strategy.And mobile channel gives them a lot of possibilities to be creative, from mobile websites and apps,through mobile video and social networks that are mainly used via mobile phones. But all thoseactions have to derive from characteristics of particular target group we are aiming to reach, theirneeds, preferences and online behavior only data driven approach can lead us to become customercentric organization.

Vesna Gordon, CSO & CMO, Member of the Board of Directors, Gemius

WHAT DOES THIS MEAN FOR THE ONLINE BUSINESS?

In practice, it is all about customer - centric approach.

THE KNOWLEDGE ABOUT THE MOBILE CONSUMER WILL BECOMEA COMPETITIVE ADVANTAGE

Gemius, beingwell aware of this trend, has recently launched Multiplatform Audience Measurementwith consideration of internet access platforms stationary or mobile. The research project facilitatesdivision of users into those who use tablets and those who surf the web on their smartphones.The solution has been already implemented in Denmark, Latvia, Lithuania, Estonia and Turkey. In thecoming months, the research project will start in other countries where Gemius operates.

Taking into consideration the growing popularity of mobile devices and its usage one thing can be saidfor sure - the knowledge about the mobile consumer will become a source of competitive advantage for all companies operating online.

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Computers and other connected devices have become an integral part of the education of asignificant segment of the public, but the impact of these devices has been limited by the inabilityof our educational system to understand, never mind embrace, the power of full time access tomost of the knowledge of the world, and the economics that exclude most people from such access.Further, we have not yet been able to demonstrate that the good side of the digital divide isdemonstrably superior to the other side. The concept of the flipped classroom is about to changethis.

Martin Cooper, Mobile Phone Inventor

The basis of the new educational system is the flipped classroommodel, a concept in which studentsdomost of their learning outside of school.In lieu of paper books, each student carries a devicethatprovides curated, ubiquitous, and full-time access to his or her course work, and to much of theknowledge of the world. Classroom time is dedicated to collaboration with other students andteachers, team experiments, personal counseling and problem resolution by teachers. In thiseducational paradigm, there are few lectures. Students may tackle assignments that transcendnarrow subject matters in favor of broad learning experiences tailored to their needs and abilities.The devices and software that teach them are designed specifically for this purpose. The teaching

programs measure students' progress by monitoring their expressions and vital signs. When necessary,a program may require a student to repeat an exercise or will divert the student to a different approachto understanding a concept or even to a different course of study more appropriate to the student'saptitudes.

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Education and Wireless Broadband Are Irresistibly Intertwined. There is evidence that new approachesto education will not only create people who are more educated, but rather a class of people whoare better at problem solving, at abstracting, and even at learning than people who are traditionallyeducated. Children who grow up immersed in the new educational paradigm will have more

developed brains, a larger neocortex, more synapses. Collectively, they will represent astepforwardin the evolution of mankind (and, of course,womankind).

Mobile affects more areas of human life, not only business-the concept of theflipped classroom.


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BELARUS

According to various estimations, this yearsmartphone penetration has exceeded thethreshold of 30% within total mobile subscribers this group has more than 11 million users inBelarus. Belarus is rapidly approaching the ratesof developed markets. It shows in the growth ofusers, in affordable price and high quality of 3Gmobile internet coverage. The talk about growthof mobile advertising segment is not warrantedyet. At the time, due to regulatory restrictions,mobile advertising was actually put under a banin Belarus. Today ads in applications or mobilebrowsers can be classified as online media

advertising. And as soon as it becomes aninteresting issue for advertisers due to a numberof parameters, sales agencies will quicklyposition themselves and offer some solutions.This means that this segment in Belarus will bedeveloping in keeping with the laws applicablein all the other media and contextual advertisingunder strict supervision of sale houses. Mobileinternet will drive the overall online business inthe country. And that is good.

The talk about growth of mobile advertising segment

is not justified yet

SergejSkorohoda, CEO, Marketing.by project

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Mobile page views growth

PC

Tablet

Phones

Source: gemiusRanking, Jan. 2011 - June 2014

Source: gemiusRanking, June 2013 - June 2014


2%

98%

4%

2%

94%

0%

01.2014

01.2014

01.2013

01.2013

10%

10%

15%

20%

0%

0%

25%

28%

60%

29%

46%

25%

3%

18%

19%

17%

16%

16%

11%

40%

60%

20%

30%

30%

50%

06.2014

06.2014

06.2013

06.2013

Huawei

Prestigo

Samsung

Samsung

Nokia

Apple

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views


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0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:000%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets

13

PC WeekdayPC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend

A breakthrough on the Belarusian mobile internet happened in 2010, when all three GSM operatorsoffered 3G service. It all started with operators' offer of 3G-modems to their customers. This has led to aslowdown and stagnation of Wi-Fi networks development in Belarus. Since 2012, operators have beenactively promoting smartphones with good internet plans in package. Further development will be relatedto the decreasing in the cost of mobile internet, increasing its speed and improving its quality. So farbudgets for mobile display advertising are small and, to a considerable extent, represented by the samemobile operators. But, since mobile traffic increases and the diagonal of mobile devices grows, more andmore advertisers focus on mobile versions of their sites.

Budgets for mobile display advertising are small and,to a considerable extent, representedby the same

mobile operators

Mikhail Doroshevich, Online Media Consultant and Contractor, e-belarus.org

Source: gemiusRanking, weekday, 27 June 2014 vs. weekend, 1 June 2014


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BULGARIA

14

Top 3 phone manufacturersby share of page views

Top 3 tablet manufacturers by

share of page views

At the present stage, mobile ads are perceivedmuch more as a tool for focused communicationwith the users and a channel that supports themain online campaign. This is why most of

websites give it as a bonus for online campaignswith more substantial budgets. The increasingand significant growth of smartphone usage andmobile internet is undeniable, which is incontradiction with the small amount of budgetsallocated to this channel. More and morepublishers, however, are offering ad formatsand functionalities visualized in multiscreenenvironment. Thus the publishers help toincrease the campaign reach and to attract

more quality traffic to the client's landing page.

Most of the advertisers and the media agenciesare probably at a stand-by, watching the processesandcarefully evaluatingstrategies - without takingany big risks, which as a matter of fact was untilsome time ago the same path of developmentfor the standard online advertising in Bulgaria.It will take some time, but soon the mobileadvertising will take its rightful place in the digitalmedia mix. Hopefully this will happennext year.We believe that the standard mobile advertisingis not the most felicitous path for development.The possibilitiesfor more deep and complicatedprojects, which by the way will be more result-oriented, will help the future growth of thismedia channel.

The mobile internet is successfully progressingand as a result the online advertising business cannot stay uninterested for a long time. Theinvestments in mobile versions of the alreadyexisting website as well as the creating ofapplications is an obligatory part of the strategicplanning and media presence of the companies.Probably soon each media plan will contain aseparate obligatory part where all suitable mobilechannels will be listed. The online business isinfluenced by the users' actionswhich more oftennow are created through mobile devices.Theeasierthe mobile consumption and usage of certain

website, the bigger the return of investment.

The mobile advertising did not succeed to develop

up to thelevels expected for 2014.

KorneliaBoiadjieva, Digital Account Executive,Universal Media, Bulgaria

Mobile page viewsgrowth

PC

Tablet

Phones

00%

01.2014

01.2014

01.2013

01.2013

10%

10%

15%

20%

0%

0%

25%

35%

40%

60%

20%

30%

30%

40%

50%

06.2014

06.2014

06.2013

06.2013

Apple

Lenovo

Samsung

Samsung

Nokia

Apple

3%

6%

0%

91%

0%


33%

54%

38%

37%

22%

25%

19%

24%

16%

0%

10%

16%



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CROATIA


Top 3 tablet manufacturers byshare of page views

Mobile has rapidly showed increase in termsof usage in this year. This happened partially dueto the content (where more of it is available onmobile enabled and responsive sites) ortechnology and infrastructure side (much moremobile flat-rate tariffs, bigger and faster devices,etc.). For the first time, some sites, obviouslydepending on regional traffic source and typeof industry, showed desktop traffic fallingbelow 50%. This is the sign that the long-awaitedboom of mobile has happened in Croatia.

Unfortunately, this boom did not affect the growthin advertising budgets, mainly for two reasons:majority of clients still didn't adapt their sites tomobile, and there is no measurement and/orresearch of mobile specific traffic on sites andapps. Both these facts are objective obstacles toserious growth of mobile advertising budgets.

Although the rise of mobile is staggering and itinfluences some decrease in desktop traffic,depending on the type of service and contentoffered, it will accelerate the downfall inconsumption of other media, especially print andtraditional radio. More and more people, whenoutside and in needed some information orentertainment, reach for their mobile and tabletrather than newspaper when having a coffee. Car

radio consumption for example will experiencemore decrease with the growth of digital streamingservices and podcast services. It will definitelydirect more budgets towards digital advertising inall of its forms.

Saakori, Digital Manager, Omnicom MediaGroup Croatia

01.2014

01.2014

01.2013

01.2013

10%

20%

0%

40%

60%

30%

50%

10%

15%

0%

25%

35%

20%

30%

40%

70%

06.2014

06.2014

06.2013

06.2013

Apple

Huawei

Samsung

Samsung

Sony

Apple

Long-awaited boom of mobile has come to Croatia,

but still isnot reflected in growing mobile

advertising budgets

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37%

68%

55%

37%

27%

13%

26%

27%

13%

7% 7%

13%


PC

Tablet

Phones

3%

18%

79%


98%

2%0%


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0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%1%

2%

3%

4%

5%

6%

7%

8%



Although by looking at the statistics of consumer consumption of mobile internet, one can say thatthe year of mobile has come to Croatia, this trend is not so apparent in advertising expenditures.Mobile traffic is at a constant rise of 5% quarterly and accounts for almost 20% of all page views made inCroatia. However, the share of overall advertising budget for mobile is approximated at less than 5%.Gemius is planning to introduce a multi browser approach and we are sure this will bring transparency andhelp to increase the advertisers' interest and expenditures in mobile.

As currently most half of the websites whose business model is online advertising are not responsive,it is expected that most of them will change their design accordingly in the next couple of years. Also,we can most probably expect an appearance of networks and agencies specialized in mobile advertisingthat will offer specialized mobile advertising solutions. The market in Bosna & Herzegovina is followingthe trend, except it is notyet as developed.

Mobile traffic is at a constant rise of 5% quarterly in Croatia

Vibor Kalogjera, Country Manager, Gemius Croatia and Bosnia & Herzegovina

17

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend


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CZECH REPUBLIC

I think the year of mobile for the Czech Republicwas actually the last year, i.e. 2013, when lotsof new devices appeared on the market and theshare of mobile page views grew from 5 to 10%.Currently, over 40% of the online population isconnected on a mobile device and the growth ofusage goes on.

I believe the marketers are already taking intoaccount the importance of mobile and the second

screen. We can see the mobile ad spend rapidlygrowing and together with the growingpenetration it is one of the key drivers of theonline business.

The year of mobile for the Czech Republic happened

in 2013

Pavel evera, Project Coordinator, SPIR/IAB Czech


PC

Tablet

Phones


3%

99%

8%

1%

89%

0%

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Prestigio

Samsung

Samsung

Sony

Apple

35%

68%

50%

39%

15%

16%19%

15%

14%

2%

10%

14%

10%

20%

0%

40%

60%

30%

50%

70%



10%

0%

20%

30%

40%


20/53

PhoneWeekday

PhoneWeekend

19

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%



In two years, the traffic from mobile devices increased nearly four times, which means that in June 2014,almost 11% traffic was generated by mobile devices: 8% by mobile phones and 3% by tablets. If weconsider the global trends, the mobile boom is still to come and we are expecting a constant growthin this area in the Czech Republic. In May 2014, the number of users visiting the mobile websitesmeasured in NetMonitor (gemiusAudience) from mobile phones and tablets exceeded 3 million, whichmeans that almost half of Czech internet population uses mobile devices to connect the internet. The

number of mobile page views in comparison to April grew by more than 14% and now amounts to nearly one billion. Among the most visited websites from mobile devices we can find news portalssuch asm.novinky.cz and m.idnes.cz as well as horizontal and tabloid portals such as m.seznam.cz and m.super.cz(all with around 900 thousand - 1 million real users). Apart from that, Czech users spend most time on awebsite broadcasting online sport matches - on average two hours per user per month.

In June 2014 almost 11% traffic was generated by mobile devices

Josef Richtr, Research Manager, Gemius Czech Republic

Tablet Weekday

Tablet Weekend


21/53


22/53

Tablet Weekday

Tablet Weekend

21

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%


The year of the mobile has definitely come to Estonia. Compared to 2011, mobile devices share ofpage views has increased by more than twenty times (from 0.65 per cent in June 2011 to 13.81 percent in June 2014). We are glad to see that advertising budgets are growing and mobile market ismonetizing the new inventory. We are also proud of the fact that we are launching a multiplatform fileincluding data about Real Users and usage by device type: mobile, tablet and PC. We are sure this willbring even more focus on mobile devices!

What about the future? Even now mobile internet in Estonia has good coverage and decent speedsthat are affordable. One of the biggest challenges is to monetize mobile users and their pageviews.

One of the biggest challenges is to monetize mobile users and their page views

Paap Peterson, Country Manager, Gemius Estonia

PC Weekday

PC Weekend

PhoneWeekdayPhoneWeekend


23/53

3%

18%

79%

99%

1%0%

22

HUNGARY

The traffic source of online contents is changingas expected, due to the new trends on the mobilephone market set in motion after 2007.While the sales of classic PCs are in a slump,smartphones and tablets are getting stronger,with the rise of the cheap and more affordablevariants. Telecommunications companies offera large vaiety of data packages and are makingit a focal point of their campaigns. This, combinedwith widely accessible free wifi networks, hasled to a notable breakthrough on the mobilemarket. Beside the web services it also affectsthe entire application market.

Although slightly behind the Western Europeantrends, the domestic market has started to adjustto the post-PC era, the traffic running throughtelecommunications companies is growing in allmajor digital service segments.

The domestic market has started to adjust to

the post-PC era

Mtys Dob, Telekom Hungary,Head of Product Development


PC

Tablet

Phones

Source:gemiusRanking, 06.2012 - 06.2014

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Asus

Samsung

Samsung

Sony

Apple



35%37%

18%

21%

17%14%

10%

5%

0%

20%

15%

30%

25%

40%

35%

10%

20%

0%

40%

60%

30%

50%

70% 68%61%

17%

22%

5% 6%


24/5323

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%


Smartphones play an increasingly important role in people's daily lives. By mid2014, mobile page viewshave reached 13% of total page views, which means that every 8th page view comes from a mobiledevice - including smartphones and tablets.Mobile devices are not only important in our everyday lives, but more so for the business segmentas well. Mobile ad spending reached almost EUR 6.4 m in 2013, which is 5% of the digital advertisingmarket (IAB ADEX 2014). So there is a growing need from advertisers and agencies to understand

the market better, which was previously mostly the focus of mobile electronics and relatedcompanies.

Mobile ad spending reached almost EUR 6.4 m in 2013

Gza Ambruszter, Country Manager, Gemius Hungary

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend


25/53


26/5325

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:000%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%


We believe that the data on internet consumption divided into different platforms (PC, mobile, tablet) will be a good basis for the further development of internet media market. Current audience data showsthat internet traffic from mobile devices has gained considerable results the most visited website frommobile phones in one month can reach the same audience as 7-8 most popular website visited fromcomputers. This means that audience from mobile devices certainly should be taken into account. New,advanced solutions and options adapted for each environment should be offered. Latvia is one of the

first markets where Gemius has implemented multiplatform in gemiusAudience research and wheresuch data are provided. We are really proud to deliver these data to our customers and we already cansee the effects. Internet audience share in three platforms PC, phones and tablets opens newopportunities and gives internet media a chance to attract more advertisers. For example, websiteswho lag far behind the top visited websites (from traditional PC) show great engagement resultsfrom mobile devices. This opens new horizons and opportunities.

Internet traffic from mobile devices records considerable results

Linda Egle, Country Manager, Gemius Latvia


PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend


27/5326

LITHUANIA

I think Lithuania was the first country in the worldwhere mobile came in, because historically wehad more than 100% penetration of mobile

devices. Speaking about mobile data traffic it'sjust about to boom - fixed plans for data trafficfrom operators, websites adapting their contentsto mobile or even creating apps, changing lifestylefor all of us. Ads are a part of mobile already, butwe just need a little bit of time from customers- mobile is now where internet ads were in themiddle of 1990s.Mobile is there and it's transforming already.Thefuture belongs to those who prepare for it today

and we can already see it for such industires aswearables, healthcare or education. Facebookalready makes more than 50% of all ads frommobile, Google dominates as No. 1 this marketalready (source: http://online.wsj.com). EvenAmazon launched its own mobile phonefor usageof its services. And there is moretocome and wehave a bright future ahead, I believe.

RiardasBaltaduonis, Managing Director,Lrytas.lt


PC

Tablet

Phones

Mobile is now where internet ads were in the middle

of 1990s4%

14%

82%

99%

1%0%


01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Asus

Samsung

Samsung

Nokia

Apple


39%

48%

21% 19%

19%

11%10%

0%

20%

30%

50%

40%

10%

20%

0%

40%

60%

30%

50%

70% 66%

54%

26% 33%

4% 4%



28/5327

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets.

Mobile audience is there already some digital media channels reach 50%+ of their desktop audience in mobile.But mobile advertising is lagging in the advertisers' adoption rates for several reasons:1.Natural resistance of decision makers to change habits and implement mobile-first strategy framework.2.No or little investments in proper development of m-websites makes it hardly viable to have mobile campaigns-no proper landing page usually limits the success of digital bought media.3.Lack of audience data this in part has been resolved by Gemius with introduction of mobile data in Audienceresearches.4.Pricing of mobile inventory is still (inadequately) high, but media owners are already offering large discounts, soprices will definitely correlate to a lower side once advertisers will start measure the actual reach/frequency dataproperly andwill start demanding efficiency from media channels.

Numbers show facts. During the last 12 months, we have been observing a significant increase in page viewsgenerated with mobile devices the share of mobile page views increased from 8% to 18%. This means that notonly the number of mobile devices is growing fast, but also it proves that people are spending more and more timebrowsing with their phones and tablets. And although publishers' income from mobile traffic doesn't show thesame pace of growth, with such acceleration we should expect local market players to implement additionalstrategies during the next 12 months and monetize mobile traffic to a greater extent.I am very glad that this July Gemius officially launched the multiplatfrom audience measurement in Lithuania,

because accurate statistics of phone and tablet users and their habits should fuel online business with additionalinsights and knowledge. Next step I expect to see is our market players making knowledge driven businessdecisions and continue to increase online media market share.

Mobile advertising is lagging in the advertisers' adoption rates for several reasons

The share of mobile page views increased from 8% to 18% during last 12 months

Tomas erkasas, Account manager, iProspect

GrytaBalseryte, Regional Manager for Lithuania and Latvia , Gemius Baltic

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



29/5328*

MACEDONIA

I would say the year of mobile is already inMacedonia, but still not everyone is aware of thatfact. It is here in as far as the growth in the numberof mobile devices - including smartphones and

tablets - and the positive increase in use of mobileinternet is concerned, but the advertising budgetis still far from that.In order to encourage advertisers to invest inmobile some steps need to be made. The priority isthe content.Macedonian market, mostly because of the its smallsize, needs more time to justify the need for mobilefirst content strategy apps, services, news, etc.The publishers and developers don't see enoughmoney on the market to justify any serious

investment in this segment, so it is the chicken orthe egg dilemma.

The future, in my opinion, will lean more towardsdevelopment of mobile apps for business servicesprovided by companies as additional tools for theirclients and less movements in the media sector.However, I do see a market for some good mobilenews apps from which the parent media brandswill benefit.

Darko Buldioski, Founder &CEO,

New Media Agency, Macedonia


PC

Tablet

Phones

The year of mobile is already here but still not all

are aware of that fact

2%

86%

90%

8%2%


01.2013

01.2013

06.2014

06.2014

03.2014

03.2014

Apple

Asus

Samsung

Samsung

Sony

Apple


27%30%

23%20%

16%14%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

9% 12%

16% 16%

64%

54%


12%


30/5329

The year of mobile has come in Macedonia, but only in usage of mobile internet, not so much in mobileadvertising. Given the fact that the digital market itself is not completely regulated and developed, withdigital spending still being less than 5% (estimated), the mobile advertising is still just an insignificantfraction. Yet, if you compare the mobile advertising 2 years ago, we can conclude that there are changes

towards more mobile advertising spending - but it is still insignificant, budget and percentage wise.

The future of the mobile internet is almost here, almost everyone that has a phone, together with internet access on it, with mobile internet being relatively cheap and accessible for majority of mobileusers. Next step will probably be online mobile shopping. This is an area that has huge potential, and itis a trend that has already proven successful in other more developed countries, trend that we expectto come here very soon.

The huge potential of online mobile shopping

Nikola Peshev, Digital Manager, New Moment Agency, Macedonia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



31/5330

MOLDOVA

The year of mobile came to our country only interms of mobile internet accessibility; we have 3Gconnection, at great speed for less than 5-7 EURper month. But the year of mobile hasn't comeyet in terms of mobile device usage for internetconnectivity. Moldova is more traditional interms of internet consumption, most of the trafficbeing registered on PCs. So if we speak aboutmobile as a media channel and media market,we have some way to go. At the moment, the onlypublishers that monetize the Moldavian mobiletraffic, are Google and Facebook, which have the

option of mobile forms of ads already built infor all the markets. Local publishers still hesitateto build special ads formats for mobile versions,again, mostly because the traffic generated frommobile is still at a very low level in Moldova.As we have seen already, Moldova in a certainmoment started at least to follow the regionstrends, therefore the evolution of mobile inMoldova is a question of 1 or 2 years. The influenceit will have can already be seen: taking into

account that PayPal added Moldova to itsoperation country list and that the quality ofmobile internet is high, this is a huge opportunityfor online shops. Secondly, the growth will comefrom mobile campaigns activation by Advertisers,which are not using this option now, mostly dueto lack of data in the amount of smartphone andmobile internet users (on smartphones andtablets). However, we will assist to an increase ininterest to this channel and potential researches

will be done by current MMI (TGI) providercompany in Moldova, that can change thesituation.

Dorel Samoila, Vice CEO VivaKi Moldova


PC

Tablet

Phones

The year of mobile is already here but still not all

are aware of that fact0%

00%

90%

1%1%


01.2014

01.2014

06.2014

06.2014

03.2014

03.2014


30%32%

26%

31%

18%

13%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

7% 7%

18% 20%

66%

64%


0%

NokiaApple Samsung

NokiaApple Samsung


32/5331

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



33/5332

POLAND

Polish mobile market grows with similar dynamics as inother countries of the region. One of the most importantfactors stimulating this process is the competence ofPolish engineers. Creativity and quality of their productsgains huge recognition in the other markets, including the

US. Lots of Polish mobile applications, including hardwarebased projects, successfully compete in Appstores or onKickstarter. In these two areas we are definitely at theEuropean forefront. Global opportunities tempt best localcompanies, which in long term can affect the quality ofproducts prepared exclusively for the Polish market.On the other hand, Polish publishers are trying to selectfrom their offer those pieces that can be delivered asapplications. However, more than one million downloadsper platform is still an achievement. What is more, themobile advertising market has the slowest growth in

segment due to the low awareness of people who plancampaign budgets. That problem can be solved byestablishing common research standards for mobile weband application traffic, which will give decision-makersscale of mobile page views, but also retention and timethat users spend on their mobile applications. After thatproblem is solved, the budgets will grow much fasterthan now.The future, in my opinion, will lean more towardsdevelopment of mobile apps for business servicesprovided by companies as additional tools for their clientsand less movements in the media sector. However, I dosee a market for some good mobile news apps fromwhich the parent media brands will benefit.

Global major challenge that is still before us is not just amatter of using RWD, HTML5 or native apps technology,but also the right proportion of content or service rangeprovided on mobile terminal which now is used muchoften than desktop computer.

For all online industry itself it is extremely important tobuild the appropriate in-house competences on strategylevel. It is always possible to outsource some development

tasks but the providers have to be sure that they choosethe right mobile strategy for their businesses. Especiallybecause a lot of publishers will see drops of their revenuesdue to increased traffic from mobile devices that cannotdisplay so many advertising forms as regular websites.Profits from mobile video ads can cover some of thelosses but do not guarantee full coverage.Also the e-commerce companies have to focus on mobileusers too. Next few years will definitely show largemigration from desktop to mobile, especially to tablets,which ensure great user experience in online shopping.By far the greatest opportunities are given to the

providers of entertainment and mobile services. They donot have to worry about their future.

Tomasz Woniak, co-owner and CEO, Future Mind


PC

Tablet

Phones

Competences of Polish engineers stimulating Polish

mobile market growth

3%

89%

99%

1%0%


8%


Top 3 tablet manufacturers byshare of page views

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Lenovo

Samsung

Samsung

Sony

Apple

10%

5%

0%

20%

15%

30%

25%

35%32%

34%

20% 19%

10%

14%

10%

20%

0%

40%

60%

30%

50%

70% 69%

55%

18%24%

0% 5%


34/5333

For years now we hear the opinions that the next year will belong to mobile, however, it is difficultto define precisely what exactly the "year of mobile" would mean. If the major determinant would bethe popularity and prevalence of mobile devices smartphones and tablets then we should statethatthe "year of mobile" is already behind us. Over the past 2 years only, the percentage of traffic frommobile devices increased almost fourfold. On the other hand, if we analyze the situation in respectof the interest the advertisers have in mobile advertising and the unique opportunities it offers, itturns out that we still have to wait for the "year of mobile". Obviously, the advertising budgets spent

on mobile rise steadily YOY, but they still represent only a small percentage of the online advertising pie - according to IAB / PwC AdEx Report, mobile advertising represents 1.1% of the online advertisingmarket (data for 2013).The further growth of traffic from mobile devices will result in increasing interest of the advertisers,who will soon appreciate the unique possibilities mobile advertising gives. The clutter on the mobileplatform is still quite insignificant comparing to other online channels and the mobile devices providetargeting capabilities which are not to be underestimated. All the time we observe the constantdevelopment of mobile technology which enables precise localization of smartphones' and tablets'users (e.g. using GPS or IPS technology such as Apple iBeacon) and so on. This opens up completelynew possibilities for advertisers in reaching the target audience with their message in a particular

time and place, for example by serving information on the store or restaurant promotion to thepotential customers who happened to be nearby.

Advertisers will soon appreciate the unique possibilities mobile advertising gives

Joanna Skierska, Country Manager, Gemius Poland

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%2%

3%

4%

5%

6%

7%

8%

9%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



35/5334

ROMANIA

Mobile penetration is already big, and with +22 m activeSIM cards, sounds like a +100% penetration... It is veryimportant for digital advertising industry that one: theshare of smartphones/tablets should be also increased there are some estimations such as an average of 1 in 4Romanians owning one, and two: to decrease internetmobile data costs. But both these issues already resolvedby the telecom players who are coming with everimproving offers exactly in this area. So we can considerit done.Regarding mobile advertising, there is certainly a wish inthe market to use its potential, and if clients meet the rightspecialists, campaigns can note great results and promotebiggest share for the next one, and so on.One more point here, related to research of how muchmobile traffic is these days vs. desktops: there is still an

impressive share of the desktops, but consider mobileversions as generally being really optimized. What I meanis that the traffic data volume in terms of kb just saysthat on desktops we consume richer content, notnecessarily less time

The future of mobile internet is probably easy to predict,because entire future will be mobile. There is already abig trend towards mobility, with desktops and evenlaptops manufacturers trying to find a way to stop thetotal decline, while losing ground to all the super(because also laptops are mobile, aren't they?) mobile

devices of the moment. To provide a parallel, just thinkabout Nokia's delay in venture to smartphones, and seehow hard their mission is now - just to have an image ofhow fast things are moving So the influence of mobile(internet also) will be more than big, becoming probablythe core in few years. Because there is a media rule whichsays: we go where the audience goes Is just one big thingwe have to take care of: mobile devices are reallypersonaland this means that somehow they can becomethe greatest friend (of advertisers) but also with a big riskto become intrusive I think that this will be the big

challenge of the next years: to be visible, with engagementpotential, but to succeed to skip the intrusive effect.Romania has all the reasons to follow the mobile trend.Just think about all the telecom players' communication ofthese days , with so much focus on smartphones/tabletsand data offers. With T-mobile also entering the marketthis September, we have all the premises to increase thereach and time spent. The next link in the chain are thebrands, who just need to adapt their strategy, creativeand so on, and start, if they didn't already, to communicate properly. So,Romania will certainly be partof this story.

Cosmin Otel, Digital Strategy Director,

Initiative Romania


PC

Tablet

Phones

Mobile is a part of Romanians' lives

4%

91%

99%

1%0%


5%


Top 3 tablet manufacturers by

share of page views

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Nokia

Asus

Samsung

Samsung

Apple

Apple

40%

45%

29% 27%

13% 12%

10%

20%

0%

40%

60%

30%

50%

70%

80% 79%71%

13%

20%

4% 5%

10%

0%

20%

30%

50%

40%


36/5335

I think that mobile has come in Romania, but not in a giant leap - rather through a steady growth interms of mobile penetration, mobile business and time spent on mobile internet by users. However, interms of advertising, adspend on mobile is made mostly by pioneering initiatives rather than strategicfocus. We do expect slow but steady growth in mobile adspend in Romania. We perceive mobile moreas a part of the development process experienced by the entire digital sphere rather than a mediumcompeting with desktop.From this perspective, we think this brings opportunity to online business,

opportunity that today is up for grabs, but tomorrowyou will hardly find an uncrowded spot.

Mobile ad spends come mostly from pioneering initiatives rather than strategic focus

Victor Avram, Country Manager, Gemius Romania & Moldova

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%1%

2%

3%

4%

5%

6%

7%

8%

9%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



37/5336

RUSSIA

If under the statement the boom of mobileinternet we understand the boom of consumption,then this trend has already started and hascontinued in Russia for 3-4 years already. It beganonce operators have established a decent mobileconnection. With regard to mobile advertisingboom, it is likely to bang next year. This year'sbudgets for mobile ads were dripping very carefully.The future of mobile depends on many factors, e.g.the speed of mobile internet or the quality of mobile

production. In a nutshell it is too early to makemore precise predictions in this area.

Elena Pikunova, Director, Sales&ProductMarketing, Opera MediaNetworks


PC

Tablet

PhonesBoom in consumption, but not in mobile advertising

5%

91%

98%

2%0%


01.2013

01.2013

06.2014

06.2014

Samsung

Asus

Apple

Samsung

Nokia

Apple


27%

35%

30%

22%

10%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

80%

3% 4%

13%18%

79%

69%


4%

01.2014

01.2014

06.2013

06.2013

25%


38/5337

The mobile internet boom in Russia has been already present for quite a long time. Our research shows that inJune 2014 already 9% of all traffic was coming from mobile devices, which means 450% growth in comparisonto January 2011. Main mobile operators in Russia (MTS, Beeline, Megafon, Tele-2) are actively promoting thepopularity of mobile internet, providing for their customers good connection quality and great rates. Mobiledevices become more and more available, and for the user purchase of personalized portable device is often amore effective investment in getting network access than purchasing a laptop or PC.According to IDC data, within the 3rd quarter of 2013, Russia received nearly 2.71 million desktop and laptop PCs. Comparing to the same period last year, PC market decreased by 30.7% in terms of units and by23.9% in terms of money. Earlier this year, MTS published a study of mobile retail market and consumption

of telecommunications services in Russia in 2013. According to the study, the total mobile market in terms of money amounted to 230.7 billion rubles. The monetary growth of Russian mobile devices market in 2013slightly dropped to 12.2% (15.6% inthe same period of 2012). The number of smartphones sold in Russia in 2013reached 19.7 million - 54.2% more than in 2012.From the advertisers' point of view, we observe a growing interest in mobile advertising, but at the momentthere is one important problem - the transparency of the market. Also some technical problems, which advertisersexperience quite often, can be highlighted. According to the Digital Insights, within 140 sites which are in the top100 of Russian advertisers rated by AdIndex, mobile or adaptive version of web-sites amount only to 62, whichmeans that landing page is tailored only for PC. But advertisers from the automotive sector, telecom andcommunication outlets are much better adapted to the new realities - nine out of ten sites have the needed versions.It isworse in the Bank sector, HoReCa (hotels, restaurants, cafes) and retailers.

Mobile internet will make serious adjustments in the structure of advertising budgets, as for many companies itwill be greatly beneficial to use a personalized communication channel with users, and to have the ability to usegeo-targeting, displaying advertising messages. The internet is becoming more and more personalized also foradvertisers. In the first place comes the ability to properly and effectively build communication with each currentor potential customer. Mobile for such needs - the best option.

Transparency of the market as the main barrier for mobile advertising development

Anton Melekhov, Country Manager, Gemius Russia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



39/5338

SERBIA

Mobile marketing recorded the fastest growth inthe digital segment, but we can't talk about theyear of mobile as long as the percentage of thistype of advertising remains token - in total digit,

only few percent. From year to year, the growthwill continue, but there is not going to be a bigjump until the basic problems are resolved, whichat this point represent serious obstacles: theunification of the mobile traffic (apps, mobile sites,desktop sites, etc.) and the lack of relevant socio-demographic statistics. The first and the mainproblem is the lack of content for mobile platforms,and the fact that most sites are still not optimizedfor mobile.

Insufficient content is the eternal theme of thelocal market, and in case of mobile the situationis more serious. However, I expect this situationto be resolved soon, most CMSs allow quick andeasy optimization for mobile platforms and mediashould take advantage of this chance. Also, I ammore concerned about the tendency of the localmedia to show the mobile traffic as desktoptraffic, because at the moment they can'tmonetize mobile as they wish.

BojanRendulic, Managing Director, Initiative FB


PC

Tablet

Phones

Mobile marketing is growing, but there is not

going to be a "big jump"until the basicproblems

are resolved

2%

84%

96%

4%0%


01.2013

01.2013

06.2014

06.2014

Nokia

Asus

Samsung

Samsung

LG

Apple


33%38%

16%

4%

9%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

6% 8%

17%22%

64%

53%


14%

01.2014

01.2014

06.2013

06.2013

26%


40/5339

Large increase of mobile traffic in Serbia during the recent years is followed by theoretically largegrowth of mobile advertising budgets in percentages (200% YOY 2012 vs. 2011; 150% YOY 2013 vs.2012), but in reality absolute mobile ad spend numbers are still quite small, making undeservingly lowpart of the total online ad spend.On the other side, investments that most of the publishers made in keeping the pace with the mobiletrends development are significant, and publishers are now looking for ways to get a return and make

mobile based profit.At this stage of development, we can say that the year of mobile has come only partially (in the termsof traffic and technology development), but not yet completely (in terms of monetization). Havingcurrent trends in mind, it is very likely that the year of mobile, in the full meaning of the word, will nothappen before 2015.

The year of mobile, in the full meaning of the word, will not happen before 2015

Milan Kovaevi, Country Manager, Gemius Serbia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



41/5340

SLOVAKIA

Despite the fact that the mobile internet is very popularin Slovakia, it has not reached the peak yet. Mobileinternet population amounts to only one third of thenumber of (standard) internet population. Technology aswell as the speed of connection and opportunities areconstantly changing, so the users' behavior is not stableas well. Probably this is also the cause of the fact thatthe volume of advertisement on mobile devices is stilllow. We expect that the benefits associated with themobile advertisement whether intensive use of socialcontact and sharing actual experiences or the advantageof the local reach - will come to the foreground ofmarketers' interest, since the accurate targeting theright people in the right time and the right place is theaim of every effective advertisement.The future of mobile internet is in the hands of providers

and producers of devices which can be used. Theirquality and availability is constantly increasing, so thepenetration will continue to grow in a fast pace as well,which can soon result in the combined use of severaldevices and later it can cause that certain groups of userscan completely replace the traditional devices forobtaining information and for entertainment.

Marek Zmenk, Vice Director, Mediaresearch Slovakia


PC

Tablet

Phones

The future of mobile internet is in the hands of

providers and producers of devices

4%

83%

98%

2%0%


13%

01.2013

01.2013

06.2014

06.2014

Sony

Prestigio

Samsung

Samsung

Apple

Apple


30%36%

17%

8%14%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

3% 14%

26%21%

48%43%


01.2014

01.2014

06.2013

06.2013

21%


42/5341

Mobile internet in Slovakia is a very fast growing trend. People are willingly switching from classicalto mobile devices, which proves that 16% of all page views generated on websites measured byAIMmonitor research (gemiusAudience) in Slovakia comes from mobile devices: 12% from mobilephones and 4% from tablets. This is a relatively high number in the CEE region (4th place afterCroatia,Serbia and Lithuania). The number of users visiting websites included in research from mobile devices hasexceeded 1.2 million in June 2014, which means almost 35 thousand new users in comparison with May.

Slovak internet users are generating by mobile phones and tablets nearly 275 million page views in amonth and the highest number of page views was reached in categories:Social media, News portals andHomepages of portals. The highest share of mobile page views compared to traffic from PC is notedin two categories: Services, Maps, Travel schedules as well as Sport, where almost one third of pageviews is generated by mobile devices. Mobile internet users spend most time on Dating websites(4.5 hours per month), which is about 1.5 hours more than the time spent on the category whichtook the second place: Home pages.

More than 1.2 million users visited websites from mobile devices in June 2014

ubo Ivani, Country Manager, Gemius Slovakia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%9%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%2%

3%

4%

5%

6%

7%

8%

9%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



43/5342

SLOVENIA

We have seen a boost in mobile internet usage lastyear in Slovenia and in my opinion we will be seeingmuch more of it when prices will fall even more.Unfortunately, I do not see advertising budgets

switching to mobileyet in this year.I see the mobile internet mainly as a huge boosterfor different services that use location/time/personal data combination. I see huge potential interms of the possibility of big revenues for thoseservices, as thesecan become a big game changerwhen used on mobile (so big, that people will wantto pay big for them). On the other hand, I do notsee a huge potential in advertising, as the screensare smaller there and honestly, Slovenia is notdoing great on web advertising right now, let alonemobile.

That being said, I think that mobile advertising (interms of the right data at the right moment) will be agame changer when we are all online 24/7 as this canbe the ultimate bridge between the user and thebrand. But I do not see that coming in Slovenia forthe next year or so.

Zoran Savin, CEO, Mojedelo.com


PC

Tablet

Phones

Mobile internet is a huge booster for different

services that use location/time/personal data

combination

4%

89%

99%

1%0%


01.2013

01.2013

06.2014

06.2014

Apple

Asus

Samsung

Samsung

Sony

Apple


48% 47%

16%

13% 11%

10%

20%

0%

40%

60%

30%

50%

70%

4% 4%

24%33%

67%

54%


7%

01.2014

01.2014

06.2013

06.2013

16%

10%

0%

20%

30%

50%

40%


44/5343

The year of mobile has already come to Slovenia, but only in terms of growing usage, not in terms ofgrowing advertising budgets, as they are still remaining very small. I expect mobile internet to groweven more in the following years and also advertising budgets are going to reallocate more intomobile. Online businesses will expand on a mobile devices as access to internet is granted on almostevery step. This will speed up the growth of online advertising budgets in general.

Mobile traffic is growing, but mobile ad spends remain small

GregorNisavic, Country Manager, Gemius Slovenia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

2%

4%

6%

8%

10%

12%

14%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

PC Weekday

PC Weekend

PhoneWeekday

PhoneWeekend

Tablet Weekday

Tablet Weekend



45/53

Hourly distribution of page views for PCs, phones and tablets.

We have 9,5% mobile penetration, 51 mio 3G user and more than 26 mio mobile broadband user inTurkey. According to the research conducted by Millward Brown in Turkey, users spend 132 minutes on mobile

in Turkey and 40% use 2 screens at a time. Even though penetration and time spent on internet is that high,the medium can not get a proportionate share from the advertisement spendings; according to IAB Adexreport, the share digital gets from ad spendings is only 4% of total. The reasons lying behind this low share maybe the advertisers not yet using the mobile destinations effectively as well as their not being familiar with thead formats eligible to the nature of mobile.

If we talk about the global data of trends and formats that will help grow the medium; in 2013, 53% of themobile data traffic has come from video and it is expected that this ratio would rise up to 69% in 2018. Parallelto this, mobile video ads are increasing... There expected an increase of 84% in mobile video as spendingsin 2015.

The applications notifications at smartphone and tablets, native ad applications such as advertorial,sponsorships intergrated into site content and proximity marketing, integrated ad display with SKD code willhave an important role on the growth of the medium.

Also, I believe that multiscreen advertisement will help the medium to get the deserved share.

Turkey go mobile

Rima Erdemir, Board Member and Marketing Council Chair, IAB Turkey

44

TURKEY

*source: ICTA Informations and Telecommunications Informations Technology.

4


46/5345

In terms of investing in mobile display ads, ourrelationship status may be described as "flirting". Bothsmartphone penetration and 'digitalization' of marketeershave direct effect on media budgets, and we're still in thelearning phase. As we progress to build effective mobilemedia experiences, the total mobile adspend will surelyincrease exponentially. Right now, majority of marketeersare choosing their traditional comfort zone over thisexperimental area. But we can also read the growth ofMobile and Video as a sign of high potential over theupcoming adspend. Advertisers or Agencies may alsowant to look into mobile search volumes to come upwith new ideas and approaches, since it's one of thebiggest reasons that affects mobile usage. Developmentof mobile internet will surely challenge any type ofbusiness. Right now, we're barely keeping up with digitalways of marketing. To overcome this, we need differentHR approaches, challenge our traditional ways and

appreciate people who are pushing the boundaries. Asthings are becoming more and more digital & real time,businesses will also have to be mobile agile and investto influence their customers anywhere. This couldaffect both branding and top-of-mind topics thatresearchers have been focusing upon when it comesto online businesses. In short, it's a fast growing worldand this is the perfect time to be in the eye of thedigital storm.

Bora Baman IAB Turkey EducationCommittee Member


PC

Tablet

Phones

Majority of marketers are choosing their traditional

comfort zone

2%

86%

00%

0%

0%


12%

01.2013

01.2013

06.2014

06.2014

Apple

Asus

Samsung

Samsung

Nokia

Apple


38%

51%

23%21%

12%

1% 2%8%

19%

87%

75%


01.2014

01.2014

06.2013

06.2013

26%

10%

0%

20%

30%

50%

40%

20%

0%

40%

60%

100%

80%


47/5346

We all went to mobile, and we're not only talking about mobile phones and tablets, but also mobile advertising usedby various companies to promote their products and services. The most significant reason of mobile advertisingusage is due to the increase of mobile phone penetration growth rate in Turkey (30% by the end of theyear).According to BTK reports published at the beginning of 2013, there were nearly 20 million mobile internet users inTurkey and this number has increased to 24 million in oneyear.Because of this growth in the mobile sector, companies and media planners prefer to use mobile channelsfor advertising much more than last year. To state it in figures, in 2012, advertising investments of companies were 36 millionTL and by the end of 2013 it reached 44 millionTL.

We can see both a growth in mobile ad spend and penetration in 2014. In Turkey, young generation seesmartphones as a must. With the multiplatform measurement of Gemius, now mobile audience can be measured.This will be the catalyst of real mobile boom. Expect the unexpected! What about the future of mobile internet? Its growth will make a revolutionary impact at traditional press, for sure. On the other hand, online transactionsand banking would be affected. People do not carry their PC's everywhere but our mobile devices, smart andtablets, are all the time with us. I believe that today's smartphones will be much smarter and personalized. Probably,in the future we will not carry a credit card or a car key. We should be just at the very beginning phase of mobiletransformation.

Since the mobile sector's combined revenues from application usage and data services are growing fast,companies' transition to the mobile world is happening more quickly. For these reasons, nowadays a lot of companies, not only the online businesses, but also other various companies in Turkey, decide to sever part

consumers go mobile in cee 2014

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