Q4.2012MADVERTISE MOBILENETWORK INSIGHTS

MADVERTISE & O2

GLOBAL APP MARKET

Social andMeSSaging doMinate

Rich Media adS booSt peRfoRMance

fRee vS. paidIPHONE AND IPAD APPS

Contentmadreport Q4.2012

Feel free to let us know

what you think!

Dear mobile fans,

Welcome to the 6th edition of our madreport. As always we

have some interesting topics and research to share with you.

2012 has been an exciting year for both madvertise and the

mobile industry. This year we acquired the Turkish market

leader Mobilike and also launched our in-house built madPlus

technology, meanwhile mobile spending is on the rise and the

madvertise growth story continues.

In this madReport edition we’d like to introduce our new

madPlus technology. We’ll also be showcasing a brand new

Advertising Effectiveness Study conducted with o2 – the first

of its kind in Europe. This Rich Media study provides solid

evidence of mobile advertising success in corporate communi-

cation strategies.

Once again we’ve teamed up with AppZapp, the App bargain

guide for the App Store to bring you an analysis of free and

paid shares within the different App categories.

We’ve also collaborated with Xyo to showcase a detailed

study of Android and iPhone app download numbers and

popular categories throughout 2012.

So without further ado, enjoy reading and all the best,

Carsten Frien

CEO und Co-Founder madvertise

ThE nEW CuTTIng-EdgE TEChnOlOgy

madvertise launches madPlus! New cutting-edge technology optimises mobile ad campaigns &

introduces mobile real-time bidding

madvertise

madPlus Launch!

Boost performance with

Rich Media Ads!

global App Market

App Categories in Europe

iPhone & iPad

Free vs. Paid Apps

03

06

04

08

adPlus

madPlus combines a number of different compo-

nents; one of them being madPlus Trading, a tool

that provides media agencies with direct access

to the madPlus technology and empowering

them to independently plan their campaigns,

reach and budget.

Opportunities

madPlus offers targeting capabilities beyond

established geo-targeting and device targeting.

Media agencies and the advertising industry now

have access to extended audience targeting op-

portunities, selecting predefined audiences (eg.

“shopping mums” or “globetrotters”) to whom

their campaigns will be delivered. Better targe-

ting results in a further reduction of ad wastage.

With madPlus we are launching a technology

platform that puts us in the position to further

optimize the performance and return on

investment from mobile campaigns for our

media agencies and advertising clients.

Real Time Bidding

madPlus also comes with a mobile Real-Time

Bidding (RTB) offering. madvertise is one of

the first mobile ad firms to implement this

technology. With RTB, mobile advertising space

can be auctioned in real-time, leading to better

purchasing conditions for media agencies and

their clients.

Q4.20122 INTRO MADPLUS 3

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.xyo

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global App Market

Social Networking and Messaging Categories Dominate in Europemadvertise and xyo team up to analyse the global app market. Total of 790 million Android & iPhone apps downloaded by September. UK is Europe’s biggest app market.

madvertise and xyo have once again taken on the challenge of

analysing the fast-changing and ever growing global market of

apps for the iOS and Android platforms.

And it makes for some very interesting reading…

Unbelievably, the total number of Android and iOS downloads

in EU5 reached 790 million in September - an increase of 43%

since January but a little less than in July where there were

809 million downloads. That’s over double the population of

America!

The share of iOS apps being downloaded fell from 53% in Janua-

ry to under 30% in September. Monthly Android app downloads

doubled in all key demographics between January and Sep-

tember 2012. During the same time span, iOS app downloads

dropped by 20%. The much talked about rise from the ashes of

Android seems to be continuing. In Q3 2012, the Samsung SIII,

Android’s number one smartphone, outsold the new iOS 5.

Android is leading in all the EU5 countries. The share of Android

apps compared to iOS is highest in Spain (78%) and lowest in

France where 59% of all download apps in September were

Android apps.

The UK remains Europe’s biggest app economy at 277 million

monthly downloaded apps (207 million Android apps and 70

million iOS apps) and more than 4 monthly app downloads per

capita in September 2012. Germany is second at 168 million apps

(122 Android and 46 million iOS) - that’s 2 monthly app down-

loads per capita. Spain follows at 2.6 apps per capita a month

with 93 million Android and 27 million iOS apps downloaded.

The top 10 lists across all EU5 countries feature fewer games

and lean towards communication tools like WhatsApp or Viber

and social networking apps, most prominently Facebook.

uK

iOS Top 10 categoriesuK

Android Top 10 categories

uK App Market

AndroiduK App Market

iOS

GamesSocial

SocialLifestyle

Other

CommunicationsGames

Media & VideoPhotography

3

42

2

1

2

3

2

1

3

42

2

1

2

3

2

1

It seems the Brits love being social. The Social Networking

category gains in popularity. Compared to July, the number of

games in the iPhone top 10 went down from 8 to 4. In Sept-

ember. Games were replaced by social networking and photo-

graphy apps. The freemium trend continues: All top ten apps

were free or free with in-app purchase apps in September.

Tools for communication proved successful with three mes-

sengers leading the charts in September: Facebook Messenger,

WhatsApp and Viber. Free apps rule on Android – all of the 10

most downloaded apps were free. Only one game made the

top 10: SpeedCar, representing the current racing game trend

on mobile.

Eu5

App Download Development

53% 47%

70%30%

AndroidiOS

01/2012 552 m

790 m09/2012

Q4.2012 APPS 54 APPS

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The study provides impressive insights into the success of rich

media campaigns – rich media, interactive ads, motion picture

& non-standard banner formats, and shows significant increase

in ad recognition, brand image and purchase intent through the

use of mobile rich media.

Telco operator O2 ran the campaign alongside the launch of

the Samsung Galaxy SIII to promote the launch of a new tariff

having integrated the mobile communication channel in their

cross-media advertising strategy. The campaign was realized by

Zenith for O2.

Results

Following a control group survey before the campaign began,

the study examines the effects on mobile ad recognition, brand

image and consumer acceptance of new products. The results

show positive effects across all areas, concluding a 130%

increase in ad recognition, a 16% improvement in brand

image and a staggering 30% increase in purchase intention.

The client

„We are very pleased with the results of the advertising impact

study led by madvertise”, said Tino Krause, Head of Media -

CRM & Direct Communication, O2 Germany. “On the one hand

it’s evidence that we should continue with mobile as the right

advertising platform, as well as confirming the leading position

of O2 in Germany. Innovative mobile advertising formats will

continue to be a big part in our communication play“.

This rich media advertising impact study, the first of its kind in

the UK, shows that branding campaigns in the mobile adverti-

sing channel are highly

effective and should

be included in any

balanced media mix.

The increasing

amount of high

quality content

available,

along with

positive ad-

vertising en-

vironments

on mobile

devices, are

ideal for

cross-media

branding

campaigns. In

addition, the

survey results

show that users

interact with mobile

rich media adverti-

sing up to seven times

more effectively than with

traditional banner ads.

madvertise & O2

First Ever Mobile Rich Media Advertising Effectiveness Studymadvertise has once again collaborated with Interrogare to conduct a first-of-its-kind advertising effectiveness study.

37%

17%

AFTERBEFORE

INTENTION TO BUY

The rich media campaign pushed intention to buy by 30 percent.

37% 43%

51%

39%

IMPROVED BRAND IMAGE INCREASED AD RECOGNITION

Significant increase of ad recognition by 130 percent after the campaign.

The positive perception of the O2 brand was improved by 16 percent.

Q4.2012 COMPANY 76 RICH MEDIA ADVERTISING EFFECTIVENESS STUDY

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Feel free to let us know

what you think!

Others like to pay for a better experience or may have been

convinced after hearing good things from friends or family.Either

way, it’s good to know which iPhone and iPad app categories

have the most free or paid apps available…

…enter madvertise and AppZapp, the app bargain guide for the

App Store, who have collaborated once again to bring you an

analytical comparison of the difference in free versus paid apps

across all iPhone and iPad app categories.

In doing so, we’ve managed to uncover some pretty cool findings:

According to AppZapp, there is more than THREE TIMES the

amount of iPhone apps available than on the iPad.

• Over 100 MILLION iPads have been sold 1) to date,

with iPhone sales coming in at 260 MILLION 2).

• These figures in particular make for interesting

reading - in total the iPad actually has a higher per-

centage of paid apps.

• In the UK out of a staggering 532,798 apps in total,

281,223 are free and 251,575 are paid

Across EU5 (UK, Germany, France, Italy, Spain) and Turkey, just

47% of ALL iPhone apps on offer are paid, meaning users stand a

better chance of grabbing some great apps for free. It seems the

iPad is definitely a platform that could cost you more long terms

- numbers break through the halfway mark with 51% of ALL iPad

apps needing you to dig deep for.

A recent study from ComScore 3) confirms the above when it co-

mes to iPad owners having to shell out more often for their apps.

The study revealed iPad owners are both younger and wealthier

than average tablet users, meaning they’re a perfect target au-

dience for developers who charge for their apps.

It also discovered that one of the key purchasing factor for many

consumers when it comes to tablets isn’t just the retail price, it’s

the pricing and selection of apps too.

So, do we think there are many iPad users who would be shocked

by having to pay £4.99 for a navigation app? It happens to be

quite the contrary actually.

These figures from AppZapp further conclude research in to the

behaviour and buying patterns of iPad users, and show that

despite slightly less sales, the iPad app economy is progressively

booming

Which App Categories Offer the Most Freebies?

Free vs. Paid Apps for iPhone & iPadFor some of us, the thought of paying for an app is an absolute no, no. With the amount of freebies on offer, why would you?

53%

iPhone

47% 51%

iPad

49%

iPhone offers more free appsPaid apps break through halfway mark on iPad

Source: AppZapp

FREE FREEPAID PAID

1) http://en.wikipedia.org/wiki/Ipad 2) http://en.wikipedia.org/wiki/IPhone 3) http://www.padgadget.com/2012/08/07/new-study-finds-ipad-owners-are-younger-and-richer-than-their-android-peers/

Q4.2012 FREE VS PAID 98 FREE VS PAID

MOBILE-EVENTS12. December 2012 III Congreso de Marketing Móvil

Madrid

5. – 6. February 2013

m-days

Frankfurt

25. - 28. February 2013

Mobile World Congress

Barcelona

(Hall 8.1, Booth C15)

24. - 25. April 2013

OMExpo

Madrid

madvertise Mobile Advertising GmbH Paul-Lincke-Ufer 39-40, 10999 Berlin, Germany www.madvertise.com

cover: photocase.com

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