market needs and iab initiatives...a unique guide to advertising spend across 26 markets deepening...

US Mobile Context: Market Needs and IAB Initiatives

Joe Laszlo Senior Director

IAB Mobile Marketing Center of Excellence

IAB Mobile Marketing Center of Excellence

1 IAB | Mobile Marketing Center of Excellence

What is Mobile? • It’s a device • It’s a network • It’s an operating system • It’s a technology • It’s a business model • It’s a medium • It’s a platform • It’s a buzzword


Mobile Is Everywhere and Everything


2013: The Year of Mobile Measurement

• Education, standards, and best practices.

• Focus on planning, currency, AND effectiveness metrics.

• Work in context of industry-wide project: Mak ing Measu r em en t Mak e Sen se (3MS).

4

Metrics & Measurement

IAB | Mobile Marketing Center of Excellence

5

Static Banners v. New, Rich Units Improving Mobile Ads

IAB Mobile Rising Stars 300x50 Static Banner

IAB | Mobile Marketing Center of Excellence

Cross-Media The Next Hurdle

• XSOS=“Cross-Screen Optimization Studies”

• A significant industry research initiative

• Seeking to test actual impact of ad campaigns with mobile, PC, and print or TV components

Understanding Cross-Media

6 For more information on XSOS email Joe Laszlo, [email protected]

IAB’s XSOS will demonstrate the importance of allocating budgets across traditional, PC, and mobile media.

Concluding Thoughts • Mobile data is transforming the way

people in the US live. • We have work to do to make mobile

more media- and ad-friendly. • The pace of innovation in mobile media

shows no signs of slowing. • Lots of work for IAB—in the US and

globally.

IAB Mobile Center


Thanks!


[email protected]

IAB Europe and Mobile

The voice of European

digital business

« We’re on a mission to grow Europe’s DIGITAL market »

IAB Europe represents the voice of the

industry at both national and European level

27 National Associations with over 125 staff

55 Corporate Members including Media

Agencies, Broadcasters, Publishers, Advertisers,

Mobile Operators, Service Providers, Social

Platforms, Media Owners, Creative Agencies…

GET TO KNOW IAB Europe: a growing network

WHAT WE DO The 4 PRO’s

PROMOTE: Raise standards and awareness

PROTECT: Recognised regulatory expertise

PROVE: Data and insights to support the growth

of online advertising

PROFESSIONALISING the industry defining

standards and practices

• REGULATORY EXPERTISE helping you understand the

threats and defend your business

• DATA AND INSIGHTS to support the growth of your

business and the industry

• A platform to ENGAGE AND CONNECT with leading

experts from the industry

• Guidelines and standards to increase your

EFFECTIVENESS

WHAT WE OFFER Shape tomorrow’s digital landscape

“We feel it is important to have a strong trade organisation representing both

agencies, advertisers and media owners on a local and European level.” Ruud Wanck, Head of Interaction EMEA, GroupM 4

ADEX BENCHMARK

A unique guide to advertising spend across

26 markets deepening our understanding of

the emerging mobile format alongside video,

search etc.

MEDIASCOPE EUROPE

The only total population survey of

offline and online media use including a deep dive

into internet use on mobile, tablet, games console

and of course PC/laptop.

Developing Mobile Insights

in Context

5

Increasing delivery of insight

through partnership

Local Initiatives,

Insights

& Results

Aggregated

Industry Knowledge

& Best Practice

Best-of-Local

National-Buy-In

http://iab.emsecure.net/optiext/optiextension.dll?id=HpIIGnR9mY9ycP0sJcm6Uhs5vAQYZGtDXDeibL

http://iab.emsecure.net/optiext/optiextension.dll?id=PhQQPzH+yFRYo1rauEDblfZjAJInLF9tM6zyzy

Mobile within IAB Europe’s Brand

Advertising Initiative

7

Aiming to provide brand advertisers with a reliable and

trusted toolkit for the converging media environment

IAB Europe’s Ad Formats Survey

8

PC / Tablet / Mobile

In-Page / In-Stream

Frequency use

Growth rates

Technology specs

Survey open until

end of July! http://svy.mk/10kkthc

Providing valuable insight into

the brand advertising formats

landscape across Europe

Survey of Publishing, Agency

and Ad Serving companies

http://svy.mk/10kkthc

http://svy.mk/10kkthc

• Recognise the growing importance of mobile as an

advertising platform

• Deliver greater insight on investment in the medium

• Fragmented mobile market yet strong demand for pan-

regional buying and selling

• Global ecosystem

Why Global Mobile Ad Revenue?

9


http://iab.emsecure.net/optiext/optiextension.dll?id=pHmmmcU9Op4ly1HYnhTtgslSLqnLcCZ6rzLlNv


• Creation of an expert team: IAB Europe, IAB US Mobile

Center of Excellence + IAB Europe’s partner IHS

• Data, insight and advice from the global IAB network

The Global Mobile Ad Revenue

project

10


http://iab.emsecure.net/optiext/optiextension.dll?id=pHmmmcU9Op4ly1HYnhTtgslSLqnLcCZ6rzLlNv


• Identification of mobile ad spend reported by national IABs

• Harmonisation of global data

• Employment of statistical and econometric models

• Benchmarking variables such as ad spend per capita, mobile

subscriptions and 3G/4G penetration

• Typology of mobile ad markets

• Interviews of key players across the mobile advertising

ecosystem

• Resulting in a global market size, split across advertising

formats.

Global Mobile Ad Revenue

Methodology

11

Global Mobile Advertising Revenue

1

Display, Search, Messaging 2011 & 2012 Across Regions

Copyright © 2013 IHS Inc.

Global mobile ad revenue nearly doubled in

2012

2

3,769

6,889

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011 2012

Global mobile ad revenue (€m)

+82.8%


Messaging under pressure as both display

and search increase their share

3

37.8% 38.7%

51.1% 52.8%

11.1% 8.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012

Global mobile ad revenue share by format

messaging search display


Display and search growth on par, twice as

fast as messaging

4

87.3% 88.8%

40.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Display Search Messaging

Mobile ad growth in 2012 by format (%)

1,423

1,926

420

1,242

1,710

169

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Display Search Messaging

2011 revenue and 2012 gains by format (€m)

2012 addition

2011 revenue

2012 revenue

2,665

3,636

589


North America

LATAM

Asia-Pacific

MEA

Western Europe

Central Europe

Asia Pacific and North America head-to-head

as rest of world trails behind

5

23 50 51

610

1,302

1,732

39 85 87

1,167

2,743 2,769

0

500

1,000

1,500

2,000

2,500

3,000

Latin America Middle-East and Africa Central Europe Western Europe North America Asia-Pacific

2011 vs 2012: Mobile ad revenue by region (€m)

2011 2012

2012: Mobile ad revenue by region (€m)


Asia Pacific region suffers share losses as

North America catches up

6

Global mobile advertising revenue:

share by region

0.6% 1.3% 1.4%

16.2%

34.6%

45.9%

2011

Latin America

Middle-East and Africa

Central Europe

Western Europe

North America

Asia-Pacific

0.6% 1.2% 1.3%

16.9%

39.8%

40.2%

2012


Asia Pacific dominates mobile display market

7

7

29

33

387

903

1,306

0 200 400 600 800 1,000 1,200 1,400

Latin America

Central Europe


Western Europe

North America

Asia-Pacific

Mobile display ad revenue 2011 vs 2012 (€m)

2012

2011


North America overtakes APAC in search

8

6

31

33

698

1,336

1,532

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

Latin America


Central Europe

Western Europe

Asia-Pacific

North America

Mobile search ad revenue 2011 vs 2012 (€m)

2012

2011


Gap between smaller mobile ad regions and

big players less pronounced in messaging

9

22

25

26

82

127

307

0 50 100 150 200 250 300 350


Central Europe

Latin America

Western Europe

Asia-Pacific

North America

Mobile messaging ad revenue 2011 vs 2012 (€m)

2012

2011


Format distribution is not uniform globally,

reflects specific regional market structures

10

47.1%

33.2% 32.9% 38.5%

33.6%

18.8%

48.3%

59.8% 55.9%

36.0% 38.0%

14.4%

4.6% 7.0% 11.2%

25.6% 28.4%

66.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Asia-Pacific Western Europe North America Middle-East and Africa Central Europe Latin America

Mobile ad revenue share by format: regions

messaging search display


LATAM display grows nearly twice as fast as

North American market

11

72.4%

74.3%

75.1%

81.4%

87.3%

87.3%

121.4%

226.4%

0 0.5 1 1.5 2 2.5

Asia-Pacific

Western Europe

Total Europe


Total World

Central Europe

North America

Latin America

Mobile display ad growth in 2012 by region


Also in search growth, LATAM leads; APAC

trend decoupled from rest of world

12

49.6%

79.0%

88.8%

100.1%

110.3%

110.8%

130.0%

242.4%

0% 50% 100% 150% 200% 250% 300%

Asia-Pacific


Total World

Central Europe

Total Europe

Western Europe

North America

Latin America

Mobile search ad growth in 2012 by region


In contrast to other formats, APAC leads in

messaging growth

13

27.7%

34.6%

37.9%

39.4%

40.2%

40.8%

43.3%

57.2%

0% 10% 20% 30% 40% 50% 60% 70%

Central Europe

North America

Latin America

Total Europe

Total World


Western Europe

Asia-Pacific

Mobile messaging ad growth in 2012 by region


Benchmarking mobile ad spend reveals

monetization gaps across regions

14

0.0 0.1 0.1

0.6

1.1

3.5

0.1 0.2 0.2

1.0

2.2

7.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Latin America Middle-East andAfrica

Central Europe Asia-Pacific Western Europe North America

Mobile ad spend per mobile subscription (€)

2011 2012

Thank you Daniel Knapp: [email protected]

Alison Fennah: [email protected]

Joe Laszlo: [email protected]

mailto:[email protected]




Mobile devices drive growth for cross platform

ecosystems

0

200

400

600

800

1000

1200

Source: IHS analysis and Apple, Google, Facebook (6/2013), Amazon & Microsoft (2012)

(mill

ion

s)

ID driven by iPhone

& iOS unit volumes


There will be 4bn active smartphones in

2017

3 Source: IHS Screen Digest Mobile Technology Intelligence

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World: active smartphones (m)


But the smartphone duopoly will continue

despite new challengers

4 Source: IHS Screen Digest Mobile Technology Intelligence *includes Windows Mobile

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World: smartphone installed base by OS (m)

iOS Android Others


There are clear regional differences in the

smartphone market

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

UK USA Brazil China Japan

2013: share of smartphone installed base (%)

iPhone Android Other


Evolution of smartphone screen sizes drives

and addresses growing demand for content

6

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12

Share of new smartphone launches by screen size (%)

2.0 - 2.4 2.5 - 2.9 3.0 - 3.4 3.5 - 4.0 4.1 - 4.5 4.6 - 5.1 5.2+

Source: IHS Screen Digest Mobile Technology Intelligence


4G subscriptions reach 1.5bn by 2017

providing new opportunities for media

7 Source: IHS Screen Digest Mobile Media & Technology Intelligence

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016 2017

Western Europe US Japan South Korea


Apps & Media are the growth segment of

the mobile industry

8

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Voice, Messaging, Data Apps & Content

USA & EU5: Mobile Industry CAGR - 2013-2017 (%)


But mobile content only accounts for a small

part of industry revenues

9 Source: IHS Screen Digest Mobile Media Intelligence – June 2013

US & EU5: Share of 2013 Mobile Industry revenues (%)

Voice, Messaging, Internet Apps & Content


iPhone and Android dominate smartphone

app revenues


2013: US & EU5 smartphone app revenues (%)

iPhone Google play Other


Free content leads way

11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4

Free vs. paid share of top grossing US iPhone app revenues (%)

Free Paid

Source: IHS Screen Digest Mobile Media Intelligence – June 2013


Mobile video usage outpaces consumer

revenues and advertising

• Mobile accounts for 15%-25% of online pay-TV

service consumption in W. Europe. But there are few

direct mobile pay-TV revenues, as most access is

bundled free in cross-platform deals.

• Revenues are not keeping pace with

consumption:

• Mobile devices accounted for 31% of BBC iPlayer

requests in December 2012, up from 22% in

August, and 13% in December 2011.

• Less than 10% of YouTube ad revenues are

mobile vs. more than 25% of consumption.



Games leads content spend and

cross platform services drive music

revenues


0

1

2

3

4

5

6

7

8

9

10

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

US & EU5: 2013 annual mobile content ARPU ($)

Non-game Apps Mobile Games Mobile Video Mobile Music


Messaging apps provide new opportunity to

address mobile content audience

• Over the top messaging apps focus on content to provide monetisation and engage users,

particularly in APAC:

• KakaoTalk (S. Korea) - 90m+ global users

• Line (NHN Japan) – 160m+ global users (c. $30m games revenues in Q1 2013)

• WeChat (TenCent, China) – 300m global users (majority in China)

• Games and content services will prove key to monetisation for many of these apps – as

communications and messaging is increasingly commoditised.



THANK YOU

[email protected]

15


market needs and iab initiatives...a unique guide to advertising spend across 26 markets deepening...

Documents