Mobile in 2013: Our Take On The Top Trends & Insights
3 likes1,039 views
The document provides an overview of trends in the mobile marketing industry. It discusses how smartphone penetration is slowing in established markets as emerging markets see continued growth. It also covers the rise of Android and decline of other platforms, the projected increase in mobile ad spending, the growing popularity of tablets, and the expansion of mobile commerce. Additionally, it summarizes trends around the evolution of ad networks and real-time bidding, the impact of 4G networks, increasing use of social media and apps on mobile devices.
Mobile in 2013: Our Take On The Top Trends & Insights
- 1. James Hilton CEO | james@mcsaatchimobile.com
- 2. Welcome to M&C Saatchi Mobile The worlds largest specialist mobile marketing agency Access to M&C Saatchis full strategic resources Over 80 full-time mobile experts Multi-award winning
- 3. Local knowledge & a unique global reach
- 4. Our core mobile offering Strategy Mobile advertising production
- 5. agenda Introduction overview of the market TRENDS 1.Smartphone penetration is slowing in established markets while emerging markets are on the rise 2.The platform shift 3.Mobile ad spend to skyrocket in 2013 4.The year of the tablet 5.Mobile retail to explode 6.The evolution of the ad network, DSPs & RTB 7.4g to accelerate the rich media ad space 8.The rise of social and facebook on mobile 9.Apps vs. mobile web 10.The market is constantly changing
- 6. The future of digital
- 7. The medium is now 20 years old.
- 8. So, how does the market look?
- 9. 2+ billion people online Global internet population (millions) Source: Interna-onal Communica-on Union. Google
- 10. 2/3 of the world left to go Global internet population (millions) Source: Interna-onal Communica-on Union. Google
- 11. 堰或安掘閣掘檎
- 12. Most of the affluent community are already online Distribution of global income Source: UN Human Development Report, Trends In Global Income Distribu-on
- 13. So the markets more mature than you think. Meanwhile, something profound happened last year
- 14. PC growth started to slow Global PC shipments by manufacturer Source: Gartner. IDC
- 15. Smartphone sales grew past pc sales Global internet device sales Units Source: Gartner. IDC. Strategy Analy-cs, company 鍖llings. BI Intelligence es-mates
- 16. Tablets are starting to take over Global computer shipments (thousands) Source: Gartner. IDC. Strategy Analy-cs company releases
- 17. So the future is mobile G-20 internet access Consumer Broadband Connections (millions) Source: Boston Consul-ng Group, Mary Meeker, Kleiner Perkins, Morgan Stanley Research, Berg Insight
- 18. Where are we in the mobile revolution? & what are the essentials you need to know?
- 19. Trend 1. Smartphone penetration is slowing in established markets while emerging markets are on the rise
- 20. Globally, were still early Global smartphones vs. mobile phone users 2012 Global Users (millions) Source: Strategy Analy-cs, interna-onal Telecommunica-ons Union. Note: Some users own more than one device
- 21. But growth tends to slow after 50% penetration
- 22. US & other markets are past halfway US smartphone penetration Source: Nielsen
- 23. Most mature markets are now over 50% France 51.4% Germany 48.4% Italy 51.2% Spain 63.2% UK 62.3% Source: Comscore: October 2012 MobiLens report
- 24. smartphone growth is slowing US smartphone Market: year over year net adds Users Added (million) Source: comScore. Nielsen
- 25. Most future US & UK smartphone buyers will be older & less affluent Smartphone penetration by age & income Source: Nielsen
- 26. the focus is now on markets like china who now account for 25% of sales Global smartphone shipments (thousands) Source: Gartner. IDC. Strategy Analy-cs, Canalys, BII es-mates
- 27. developing markets such as brazil, Russia, Indonesia and China will drive much of the volume of growth in 2013. They will generate 70-80% of additional shipments this year 38% of the global total. Source: Canalys
- 28. Trend 2. The platform shift
- 29. Right now, mobile is a two-horse race Global mobile OS market breakdown Source: Gartner. IDC. Strategy Analy-cs. BII Intelligence es-mates, and company 鍖llings
- 30. Android is the largest platform globally Smartphone Market Share by OS (global) Share of Global Unit Sales Source: Gartner
- 31. Partly because of high adoption in china Chinese smartphone market share by platform Source: Analysys Interna-onal
- 32. And its the same two horse Race in tablets Tablet market share by platform Source: Es-mates based on informa-on from IDC, Strategy Analy-cs and company 鍖lings
- 33. However Apple is still dominating app revenue Mobile app revenue by platform (millions) Source: iSuppli. Forrester Research. Company releases. BII es-mates
- 34. And ecommerce & web traffic Source: Monetate
- 35. What will happen in 2013 1. Android is on the offensive and will be picking off individual territories 2. Google says its activating 1.3M devices a day 3. By the end of 2013 Google shipments of android devices should pass 1 Billion 4. android will account for up to 70% of devices shipped
- 36. Trend 3. Mobile ad spend to Skyrocket in 2013
- 37. The global mobile advertising market was worth $6.43B in 2012 its forecasted to hit $23B by 2016 Source: Berg Insight
- 38. In the UK mobile advertising grew by 120% during 2012. growth on 2013 is estimated at 56% Source: Flurry Analy-cs
- 39. However Mobile Is still the highest under indexing channel Ad spend vs. consumer time spent by media (2012)
- 40. What has been holding mobile back & why is it not going to anymore?
- 41. The belief that the audience is too fragmented to be reached effectively WE can now directly target consumers more accurately than ever before: age location past location connection handset device content consumed language
- 42. The belief that Data And tracking is elusive Sophisticated tracking is now up to 99% accurate We can track beyond the download deposits, purchase, usage etc. DSPs and RTB changing the landscape
- 43. The small screen Constraining Creative sizes
- 44. 360 imagery
- 46. video
- 47. Trend 4. The year of the tablet
- 48. ios has dominated the mid to high end tier of the landscape
- 49. Android is now gaining market share with multiple tablets
- 50. Windows is not yet out of the running
- 51. The 7 inch is reaching a new tablet market and becoming a more genuinely mobile device than than its larger cousin
- 52. Who is going to use the tablets? Device users plan to use as primary source of news & entertainment in 2013 Source: Belkin Survey conducted by Harris Interac-ve, Jan 16, 2013
- 53. Our predictions android will continue to take market share from APPLE Windows to stay a marginal player There will be more smartphone / tablet hybrid releases This year will be the year of the 7 inch
- 54. Trend 5. Mobile retail to explode
- 55. Almost 遜 of all smartphone owners have purchased via their device In the last 12 months Source: Mintels Smartphone Purchasing Habits report from Nov.2012 (UK only)
- 56. Purchases via a smartphone internet users aged 16+ who personally own a smartphone Source: GMI/Mintel
- 57. 47% of consumers use their smartphone to search for local information such as a store they want to visit Source: Local and the e-足tailing group, 2012
- 58. 46% look up a stores mobile site & 42% check inventory prior to visiting a store Source: Local and the e-足tailing group, 2012
- 59. Tablet shoppers have a higher propensity to purchase on the device
- 60. What you need to consider? Tablet customers are worth more to brands Know your brands mobile touch points then research, prioritize & start testing Ensure you are mobile optimized Develop a multichannel acquisition strategy on mobile Include mobile search and local in your mobile strategy
- 61. Trend 6. The evolution of the ad network, The rise of demand side platforms, & the arrival of Real time bidding
- 62. The way brands and agencies buy mobile inventory is changing Were taking control of the buying process
- 63. ad networks are changing Traditional networks (inMobi, Millenial, Adfonic) are changing their service offering to become more sophisticated Or being bought by larger telcos (AdMob / google, Quattro / Apple) which ads more precision to their data
- 64. How? Bidding directly on inventory via exchanges Developing new tools that let buyers target consumers more accurately Developing their own bidder or using white labeled DSPs
- 65. Now, a new orthodoxy Is emerging based on demand side platforms
- 66. What is a demand side platform? DSP Enables advertisers / agencies to buy ads and target consumers in real time Identify Serve ad DSP locates consumer Place bid based on them type value
- 67. DSP for mobile Lack of cookies has forced DSPs to come up with alternative methods for delivering critical data If an advertiser chooses to increase downloads of a particular app the DSP: Learns Creates Auto adjusts Maximizes patterns of profile of bidding downloads traffic traffic type strategy All refined in real time
- 68. The old system of bidding on blind inventory will become outmoded & inefficient
- 69. What will real time bidding bring to mobile? A system in which data on the bids, available inventory & the behaviour of consumers is crunched in real time Instantaneous bids for each impression based on data & smart algorithms that change constantly in response to audience changes Transparency
- 70. How will this effect marketers? The mobile DSP will transform the efficiency & effectiveness of buying mobile inventory. RTB can improve ad effectiveness by 20-150%* More & more agencies will have their own DSP Only knowledgeable specialists can handle these transactions successfully *Source: ICD
- 71. Trend 7. 4g will accelerate the rich media space, but not that fast
- 72. It has been nearly a decade since the first 3g networks were launched
- 73. Now were seeing that excitement again with LTE or 4g
- 74. Everything everywhere launched 4G in the UK in 2012 tests showed it to be 5 times faster than 3G
- 75. By may 2013 vodafone, o2 and 3UK will be able to launch their own 4g services
- 76. Who will be using it? The Early adopters due to high Pricing The vast majority will be unwilling to break long contracts to get 4g
- 77. How will 4g effect advertising on mobile?
- 78. More rich media campaigns Currently most are run across wifi 4G will accelerate consumption speed and more portable than wifi hotspots WE will see more: ≒Pre roll video advertising ≒Ads combining video, audio & interactive elements ≒Gamification ads ≒Ads utilizing APSs
- 79. Trend 8. The rise of facebook & social on mobile
- 80. Until recently facebooks problem with mobile has been well documented. Their audience was migrating to the small screen but ad revenue wasnt.
- 81. In 2012 facebook started the change declaring itself a mobile first company launched promoted posts that appear in users news feeds and was soon making $500,000 a day Mobile accounted for 23% of Facebooks $1.33B of advertising revenue in Q4 2012 - $305M mobile ads sold Their mobile app-install ads are now being used by 20% of the 100 top grossing ios apps to attract new users
- 82. In 2013 Facebook is rolling out its own mobile ad network Giving networks the ability to serve ads placed with FB on 3rd party sites & aps
- 83. What you need to know for 2013 Social networks will invest in deeper insight to enhance targeting on mobile Advancements will be predominantly Facebook & Twitter, but sites such as google & pinterest will be monitored for new opportunities Positive results have been seen though advertising on facebooks app set to improve with investment in targeting & consumer insight
- 84. Trend 9. Apps vs. mobile web
- 85. In 2012 many expected the resurgence of mobile web. But is hasnt panned out that way. Android app revenues has doubled Q3-Q4 Facebook and others realized HTML5 was not the solution The pendulum is swinging back to apps staying for 2012
- 86. Apple store downloads on pace to hit 60B by mid 2013 Apple app store downloads Source: BI Intelligence
- 87. Smartphone users spend more time on apps than web Total time spent using mobile web vs. apps Minutes Spent Per Month (billions) Source: Nielsen Smartphone Analy-cs
- 88. Mobile app revenue is still growing fast Mobile app revenue (millions) 2008 2009 2010 2011 1012 Source: iSuppli, Forrester Research, company releases, BII es-mates
- 89. Because Most downloads are free Mobile app store downloads, free vs. paid 2012 Source: Garner, September 2012
- 90. Fremium is the dominant model Two-thirds of the 100 iphone apps that make the most money are free to download and generate 100% of their itunes revenue through in-app commerce % of free and paid apps % of the top 100 grossing iphone % of top 100 grossing iphone In iphone top 100 grossing Apps that use in-app commerce Apps that are games Source: BI intelligence analysis of App Store data, Jul. 2012
- 91. Trend 10. The market is constantly changing
- 92. Stay informed