mobile apps and advertising - arabnet (me)
DESCRIPTION
Mobile applications could be a $38 billion market by 2015TRANSCRIPT
Mobile Apps and Advertising
• 35 Billion Impressions• Live in 120 countries
• 200 Million Consumers Reached
• 11,000+ Advertisers and Publishers
San Francisco
London
Nairobi Singapore
Bangalore
Tokyo
A leading global mobile advertising network
Sydney
New York
Simple and effective solutions, operating at scale
Key themes for today
1. Mobile applications could be a $38 billion market by 2015
2. The market dynamics are complex and fast moving
3. The Middle East market is part of this change
4. Mobile advertising is a driver of the mobile applications market
5. Consumer acceptance is growing; advertisers are responding
6. App developers focus on innovation
Know your market and build for it
Middle East market is growing fast
Mobile Advertising Growth:
10x increase in mobile advertising in next 12 months
2015 estimates at $100 million
Mobile Web Penetration:
60% of the 350 million people under the age of 25
50% mobile phone penetration, 60% mobile web enabled
Smart Phone Growth:
More than 2 Million Apps Downloads Weekly on Ovi
Globally leading markets for Smartphone adoption; KSA and UAE
Middle East market fundamentals are strong
Mobile ads are accepted by 61% of consumers
Base = Total respondents (n=894)Q3. How comfortable are you with mobile advertising?
Very com-fortable,_x00
0d_ they serve an im-portant pur-
pose
Somewhat com-fortable,_x000d
_I’m getting used to seeing
them
No opinion,_x000d_
I do not think much about ads
on my phone
Somewhat un-comfortable,_x0
00d_they can be distracting
Not comfortable at
all,_x000d_they are intrusive
40%
21%
13% 12%14%
Level of Comfort with Mobile Advertising
It’s not all about free apps
42%
29%
29%
Free Apps
Yes Maybe No
Base = Control respondents (n=1,511)What if scenarios presented:Q5. With ads on your phone::you get free apps; Without ads: you pay for those apps; Q6. With ads: your phone bill is reduced by 10%; Without ads: you pay the regular price; Q7. All the ads on your phone are personalized to you in a helpful way? For example, you travel to a new city and an ad gives you a coupon to a local restaurant; Are you more willing to have ads on your phone?
50%
28%
22%
10% Off Phone Bill
Yes Maybe No
53%26%
21%
Personalised Ads
Yes Maybe No
Willingness to Have Ads on Phone
Branding is a key opportunity on mobile
10
Been relevant to who you are or what you are doing
Helped you find something nearby
Reminded you of something important
Saved you time
Saved you money
Helped you learn more about something
Entertained you
Given you somethingfor free
Introduced you to something new
6%
12%
16%
19%
19%
23%
26%
29%
53%
Benefit of Mobile Advertisements Seen in the Past
Base = Control respondents (n=1,511)Q4. Has a mobile ad ever…? [check all that apply]
11
The device is a mobile and makes calls
Call Purchase Viral Search Content
26%
16%
11%7% 7%
Mobile Ads Consumers Would Click On
Base = Test respondents (n=1,511)Q8. If me saw these ads on your phone, which would me click, if any? [check all that me might click]
The mobile app landscape
Saturation point reached (350k+)?
Market dynamics change daily and hourly
Highly competitive
The mobile app opportunity
• Still huge opportunity for developers
• Android ecosystem is still emerging
• Top apps are worth millions of dollars
Since its release over 100 million copies downloaded – 30 million are Freemium
There are four main ways to make money
Each has strengths and weaknessesSome models are more appropriate than others
Paid Downloads Sponsorship
Advertising In App Purchase
It’s important to think globally
Understand how ad economics work globally
eCPMs vary globally but not by a big margin
Europe North America Asia (Excl. China and Japan)
Middle East Africa
129 125
101 9070
Index by regionSourced from our Network
Key themes for today
1. Mobile applications can easily be a $38 billion market by 2015
2. Market dynamics are complex, fast moving and understood
3. The Middle East market has huge potential
4. Advertising is a key driver of the mobile applications market
5. Consumer acceptance is very strong; advertisers are responding
6. App developers focus on innovation, scale and monetisation
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Mobile Apps and Advertising