Mobile Advertising Trends

How did our 2013 Predictions fare?

DID WE GET IT RIGHT?

Smartphone Advertising will evolve to Smart Advertising.

PREDICTION 1

Brands have started to focus on Audience targeting & engagement instead of just targeting by Platform

Source: Vserv.mobi

In 2013, we witnessed a fair number of smart & innovative mobile ad campaigns on our network focused on increasing engagement with the target audience, based on their mobile usage and behavior, irrespective of the mobile platform they were present on.

My E.G. targeted DiGi subscribers to promote their

motor insurance by offering free talk time to users as reward

The Halls „Breathe to Change‟ campaign targeted youth and

leveraged „Click-to-call‟ & IVR to drive engagement & support for a cause

Axe launched an exclusive „Trip to Space‟ contest through

registration form on mobile and competition amongst audience

DID WE GET IT RIGHT?

Developers will blend In-App purchases with Ads based revenue in parallel

PREDICTION 2

Advertising & In-App purchases continue to grow as preferred revenue models in 2013, while developers have started moving away from Paid Downloads

Source: Developer Economics, App Annie Note: Percentages will not add up to 100% as developers could select multiple revenue models

84% of the top 100 highest-grossing apps in Google Play store are free. Popular apps and games such as Zynga Poker, CSR Racing, Line messaging app have successfully devised a suitable revenue model using in-app purchases, branded content and in-app advertising.

Pay per download Advertising In-app purchases Freemium

2012

2013

25

%

33

38

34

32

19

26

18

%

%

%

%

%

%

%

2012

2013

Revenue models adopted by mobile app developers (%)

DID WE GET IT RIGHT?

Telcos will try to get back into the Mobile Advertising space

PREDICTION 3

Many leading Telcos ventured into the rapidly growing mobile advertising opportunity with strategic partnerships

The mobile advertising opportunity has prompted Telcos to extend partnerships or turn to in-house development of a mobile advertising platform. Many Telcos have started relying heavily on partners to gain expertise and build a strong position in the mobile advertising space.

Singapore

Philippines Aus & NZ

Indonesia India

EU, LATAM US

UK

Indonesia

DID WE GET IT RIGHT?

Windows Phone 8 will not stop Android‟s “mass market” smartphone momentum

PREDICTION 4

Android continued to gain mass adoption as it crossed 80% of world‟s smartphone market share

Source: Gartner

Stringent hardware spec requirements at the launch of Windows Phone 8 limited its mass adoption. Since the growth in smartphone market is projected to come from emerging countries, Windows Phone devices are now being made available at the entry level segment as well to entice masses.

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Others

BlackBerry

Windows Phone

iOS

Android

Share of Global Smartphone Sales to End Users by Operating System (%)

Windows Phone 8 launch

Oct‟12

DID WE GET IT RIGHT?

Consumer‟s mobile lifestyle will allow Brands to converge advertising, distribution & transactions!

PREDICTION 5

Mobile is TURBO CHARGING the 4Ps of MARKETING

Source: Google Play

Product introduction, decision process and actual purchases are happening now at consumer‟s fingertips. Marketers have started integrating Mobile in the overall media mix facilitating advertising, distribution and transaction through the same channel. Lines between advertising, distribution and transactions continue to blur.

Author

As the CEO and Co-founder of Vserv.mobi, Dippak plays a central role in today‟s mobile ecosystem working with Telecom providers, Mobile Content companies, App Developers, Publishers and Advertisers. As an Internet & Mobile industry veteran, Dippak has successfully played key roles in making revolutionary introductions in this space in the last two decades.

Dippak Khurana CEO & Co-Founder, Vserv.mobi

dippak@vserv.mobi