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James Hilton – CEO | james@mcsaatchimobile.com
Welcome toM&C SaatchiMobileThe worlds largest specialist mobilemarketing agencyAccess to M&C Saatchi’s full strategicresou...
Localknowledge& a uniqueglobal reach
Our core mobile offering Strategy	     Mobile advertising   production
agendaIntroduction – overview of the marketTRENDS1. Smartphone penetration is slowing in established markets –while emergi...
The future of digital
The medium is now 20years old.
So, how doesthe market look?
2+ billion people online Global internet population     (millions)Source:	  Interna-onal	  Communica-on	  Union.	  Google	...
2/3 of the world left to go Global internet population(millions)Source:	  Interna-onal	  Communica-on	  Union.	  Google	  ...
HOWEVER…
Most of the affluent community are already online Distribution of global incomeSource:	  UN	  Human	  Development	  Report...
So the market’s moremature than you think.Meanwhile, somethingprofound happened lastyear…
PC growth started to slow Global PC shipments by manufacturerSource:	  Gartner.	  IDC	  	  
Smartphone sales grew past pc sales Global internet device sales    UnitsSource:	  Gartner.	  IDC.	  Strategy	  Analy-cs,	...
Tablets are starting to take over Global computer shipments(thousands)Source:	  Gartner.	  IDC.	  Strategy	  Analy-cs	  co...
So the future is mobile G-20 internet access   Consumer  Broadband  Connections   (millions)Source:	  Boston	  Consul-ng	 ...
Where are we in themobile revolution?& what are the essentialsyou need to know?
Trend 1.Smartphone penetration isslowing in established marketswhile emerging markets areon the rise
Globally, we’re still early… Global smartphones vs. mobile phone users 2012 Global Users   (millions)Source:	  Strategy	  ...
But growth tends toslow after 50%penetration
US & other markets are past halfway US smartphone penetrationSource:	  Nielsen	  
Most mature markets       are now over 50%       France                                 51.4%       Germany               ...
smartphone growth is slowing US smartphone Market: year over year net adds      Users      Added     (million)Source:	  co...
Most future US & UK smartphone buyers will be older & less affluent Smartphone penetration by age & incomeSource:	  Nielse...
the focus is now on markets like china who now account for 25% of sales Global smartphone shipments  (thousands)Source:	  ...
developing markets such as              brazil, Russia, Indonesia and              China will drive much of the           ...
Trend 2.The platform shift
Right now, mobile is a two-horse race Global mobile OS market breakdownSource:	  Gartner.	  IDC.	  Strategy	  Analy-cs.	  ...
Android is the largest platform globally Smartphone Market Share by OS (global) Share ofGlobal Unit   SalesSource:	  Gartn...
Partly because of high adoption in china Chinese smartphone market share by platformSource:	  Analysys	  Interna-onal	  
And it’s the same two horse Race in tablets Tablet market share by platformSource:	  Es-mates	  based	  on	  informa-on	  ...
However Apple is still dominating app revenue Mobile app revenue by platform   (millions)Source:	  iSuppli.	  Forrester	  ...
And ecommerce & web trafficSource:	  Monetate	  
What will happen in 20131.    Android is on the offensive and will be picking off      individual territories2.  Google sa...
Trend 3.Mobile ad spend toSkyrocket in 2013
The global mobile advertising                 market was worth                 $6.43B in 2012                 it’s forecas...
In the UK mobile advertising                grew by 120% during 2012.                growth on 2013 is estimated          ...
However Mobile Is still the highestunder indexing channelAd spend vs. consumer time spent by media (2012)
What has been holdingmobile back & why is itnot going to anymore?
The belief that the audienceis too fragmented to bereached effectivelyWE can now directly target consumers more accurately...
The belief thatData And trackingis elusiveSophisticated tracking is now up to 99% accurateWe can track beyond the download...
The small screenConstrainingCreative sizes
360 imagery
Locationservices,mapsAnd gps
video
Trend 4.The year of the tablet
ios has dominatedthe mid to highend tier of thelandscape
Android is nowgaining marketshare withmultipletablets
Windows is notyet out ofthe running
The 7 inch isreaching a newtablet market andbecoming a moregenuinely mobiledevice than thanit’s larger cousin
Who is going to use the tablets? Device users plan to use as primary source of news & entertainment in 2013Source:	  Belki...
Ourpredictionsandroid will continue to take market share from APPLEWindows to stay a marginal playerThere will be more sma...
Trend 5.Mobile retail to explode
Almost ½ of all               smartphone owners have               purchased via their device               In the last 12...
Purchases via a smartphone internet users aged 16+ who personally own a smartphoneSource:	  GMI/Mintel	  
47% of consumers use         their smartphone to         search for local         information such as a         store they...
46% look up a store’s         mobile site &         42% check inventory         prior to visiting a         storeSource:	 ...
Tablet shoppershave a higherpropensity topurchase on thedevice
What you need to consider?Tablet customers are worth more to brandsKnow your brands mobile touch points – then research,pr...
Trend 6.The evolution of the ad network,The rise of demand side platforms,& the arrival of Real time bidding
The way brands and agenciesbuy mobile inventory ischangingWe’re taking control of thebuying process
ad networks are changingTraditional networks (inMobi,Millenial, Adfonic) are changingtheir service offering to becomemore ...
How?Bidding directly on inventory via ‘exchanges’Developing new tools that let buyers targetconsumers more accuratelyDevel...
Now, a new orthodoxyIs emerging based ondemand side platforms
What is a demand side platform?DSP Enables advertisers / agencies tobuy ads and target consumers in real time    Identify ...
DSP for mobileLack of cookies has forced DSP’s to come up withalternative methods for delivering critical dataIf an advert...
The old system ofbidding on blind inventory willbecome outmoded & inefficient
What will real time biddingbring to mobile?A system in which data on the bids, available inventory & thebehaviour of consu...
How will this effect marketers?        The mobile DSP will transform the efficiency & effectiveness of        buying mobil...
Trend 7.4g will accelerate the rich mediaspace, but not that fast
It has been nearly a decadesince the first 3g networkswere launched
Now we’re seeingthat excitementagain withLTE or 4g
Everything everywhere launched 4G inthe UK in 2012 – tests showed it to be 5times faster than 3G
By may 2013vodafone, o2 and3UK will be able tolaunch their own4g services
Who will be using it?                The Early                adopters                due to high Pricing                T...
How will 4g effectadvertising on mobile?
More rich media campaignsCurrently most are run across wifi4G will accelerate consumption – speed and more portablethan wi...
Trend 8.The rise of facebook& social on mobile
Until recently facebook’sproblem with mobile hasbeen well documented.Their audience wasmigrating to the smallscreen but ad...
In 2012 facebook started thechange – declaring itself amobile first companylaunched promoted posts that appear in users ne...
In 2013 Facebook is rollingout it’s own mobile adnetworkGiving networks the ability to serve ads placedwith FB on 3rd part...
What you need to know for 2013Social networks will invest in deeper insight to enhance targetingon mobileAdvancements will...
Trend 9.Apps vs. mobile web
In 2012 many expected theresurgence of mobile web.But is hasn’t panned out that way.Android app revenues has doubled Q3-Q4...
Apple store downloads on pace to hit 60B by mid 2013 Apple app store downloadsSource:	  BI	  Intelligence	  
Smartphone users spend more time on apps than web Total time spent using mobile web vs. appsMinutes Spent Per Month  (bill...
Mobile app revenue is still growing fast Mobile app revenue         (millions)                                            ...
Because Most downloads are free Mobile app store downloads, free vs. paid 2012Source:	  Garner,	  September	  2012	  
‘Fremium’ is the dominant model   Two-thirds of the 100 iphone apps that make the most   money are free to download and ge...
Trend 10.The market is constantlychanging
Stay informed
Questions?info@mcsaatchimobile.com
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Mobile in 2013: Our Take On The Top Trends & Insights

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The slides from our Inside Mobile Event. Find out what's going to be big and what's not, learn how to navigate the new mobile landscape and ensure you're prepared with the best mobile strategy for 2013.

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Transcript of "Mobile in 2013: Our Take On The Top Trends & Insights"

  1. 1. James Hilton – CEO | james@mcsaatchimobile.com
  2. 2. Welcome toM&C SaatchiMobileThe worlds largest specialist mobilemarketing agencyAccess to M&C Saatchi’s full strategicresourcesOver 80 full-time mobile expertsMulti-award winning
  3. 3. Localknowledge& a uniqueglobal reach
  4. 4. Our core mobile offering Strategy   Mobile advertising production
  5. 5. agendaIntroduction – overview of the marketTRENDS1. Smartphone penetration is slowing in established markets –while emerging markets are on the rise2. The platform shift3. Mobile ad spend to skyrocket in 20134. The year of the tablet5. Mobile retail to explode6. The evolution of the ad network, DSP’s & RTB7. 4g to accelerate the rich media ad space8. The rise of social and facebook on mobile9. Apps vs. mobile web10. The market is constantly changing
  6. 6. The future of digital
  7. 7. The medium is now 20years old.
  8. 8. So, how doesthe market look?
  9. 9. 2+ billion people online Global internet population (millions)Source:  Interna-onal  Communica-on  Union.  Google    
  10. 10. 2/3 of the world left to go Global internet population(millions)Source:  Interna-onal  Communica-on  Union.  Google    
  11. 11. HOWEVER…
  12. 12. Most of the affluent community are already online Distribution of global incomeSource:  UN  Human  Development  Report,  Trends  In  Global  Income  Distribu-on  
  13. 13. So the market’s moremature than you think.Meanwhile, somethingprofound happened lastyear…
  14. 14. PC growth started to slow Global PC shipments by manufacturerSource:  Gartner.  IDC    
  15. 15. Smartphone sales grew past pc sales Global internet device sales UnitsSource:  Gartner.  IDC.  Strategy  Analy-cs,  company  fillings.  BI  Intelligence  es-mates  
  16. 16. Tablets are starting to take over Global computer shipments(thousands)Source:  Gartner.  IDC.  Strategy  Analy-cs  company  releases  
  17. 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. 18. Where are we in themobile revolution?& what are the essentialsyou need to know?
  19. 19. Trend 1.Smartphone penetration isslowing in established marketswhile emerging markets areon the rise
  20. 20. Globally, we’re 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. 21. But growth tends toslow after 50%penetration
  22. 22. US & other markets are past halfway US smartphone penetrationSource:  Nielsen  
  23. 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. 24. smartphone growth is slowing US smartphone Market: year over year net adds Users Added (million)Source:  comScore.  Nielsen  
  25. 25. Most future US & UK smartphone buyers will be older & less affluent Smartphone penetration by age & incomeSource:  Nielsen  
  26. 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. 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. 28. Trend 2.The platform shift
  29. 29. Right now, mobile is a two-horse race Global mobile OS market breakdownSource:  Gartner.  IDC.  Strategy  Analy-cs.  BII  Intelligence  es-mates,  and  company  fillings  
  30. 30. Android is the largest platform globally Smartphone Market Share by OS (global) Share ofGlobal Unit SalesSource:  Gartner  
  31. 31. Partly because of high adoption in china Chinese smartphone market share by platformSource:  Analysys  Interna-onal  
  32. 32. And it’s the same two horse Race in tablets Tablet market share by platformSource:  Es-mates  based  on  informa-on  from  IDC,  Strategy  Analy-cs  and  company  filings  
  33. 33. However Apple is still dominating app revenue Mobile app revenue by platform (millions)Source:  iSuppli.  Forrester  Research.  Company  releases.  BII  es-mates  
  34. 34. And ecommerce & web trafficSource:  Monetate  
  35. 35. What will happen in 20131.  Android is on the offensive and will be picking off individual territories2.  Google says it’s activating 1.3M devices a day3.  By the end of 2013 Google shipments of android devices should pass 1 Billion4.  android will account for up to 70% of devices shipped
  36. 36. Trend 3.Mobile ad spend toSkyrocket in 2013
  37. 37. The global mobile advertising market was worth $6.43B in 2012 it’s forecasted to hit $23B by 2016Source:  Berg  Insight  
  38. 38. In the UK mobile advertising grew by 120% during 2012. growth on 2013 is estimated at 56%Source:  Flurry  Analy-cs  
  39. 39. However Mobile Is still the highestunder indexing channelAd spend vs. consumer time spent by media (2012)
  40. 40. What has been holdingmobile back & why is itnot going to anymore?
  41. 41. The belief that the audienceis too fragmented to bereached effectivelyWE can now directly target consumers more accurately thanever before:age location past locationconnection handset devicecontent consumed language
  42. 42. The belief thatData And trackingis elusiveSophisticated tracking is now up to 99% accurateWe can track beyond the download – deposits, purchase,usage etc.DSP’s and RTB changing the landscape
  43. 43. The small screenConstrainingCreative sizes
  44. 44. 360 imagery
  45. 45. Locationservices,mapsAnd gps
  46. 46. video
  47. 47. Trend 4.The year of the tablet
  48. 48. ios has dominatedthe mid to highend tier of thelandscape
  49. 49. Android is nowgaining marketshare withmultipletablets
  50. 50. Windows is notyet out ofthe running
  51. 51. The 7 inch isreaching a newtablet market andbecoming a moregenuinely mobiledevice than thanit’s larger cousin
  52. 52. Who is going to use the tablets? Device users plan to use as primary source of news & entertainment in 2013Source:  Belkin  Survey  conducted  by  Harris  Interac-ve,  Jan  16,  2013  
  53. 53. Ourpredictionsandroid will continue to take market share from APPLEWindows to stay a marginal playerThere will be more smartphone / tablet hybrid releasesThis year will be the year of the 7 inch
  54. 54. Trend 5.Mobile retail to explode
  55. 55. Almost ½ of all smartphone owners have purchased via their device In the last 12 monthsSource:  Mintel’s  ‘Smartphone  Purchasing  Habits’  report  from  Nov.2012  (UK  only)  
  56. 56. Purchases via a smartphone internet users aged 16+ who personally own a smartphoneSource:  GMI/Mintel  
  57. 57. 47% of consumers use their smartphone to search for local information such as a store they want to visitSource:  Local  and  the  e-­‐tailing  group,  2012  
  58. 58. 46% look up a store’s mobile site & 42% check inventory prior to visiting a storeSource:  Local  and  the  e-­‐tailing  group,  2012  
  59. 59. Tablet shoppershave a higherpropensity topurchase on thedevice
  60. 60. What you need to consider?Tablet customers are worth more to brandsKnow your brands mobile touch points – then research,prioritize & start testingEnsure you are mobile optimizedDevelop a multichannel acquisition strategy on mobileInclude mobile search and local in your mobile strategy
  61. 61. Trend 6.The evolution of the ad network,The rise of demand side platforms,& the arrival of Real time bidding
  62. 62. The way brands and agenciesbuy mobile inventory ischangingWe’re taking control of thebuying process
  63. 63. ad networks are changingTraditional networks (inMobi,Millenial, Adfonic) are changingtheir service offering to becomemore sophisticated…Or being bought by larger telcos(AdMob / google, Quattro / Apple)which ads more precision to theirdata
  64. 64. How?Bidding directly on inventory via ‘exchanges’Developing new tools that let buyers targetconsumers more accuratelyDeveloping their own ‘bidder’ or using white labeledDSP’s
  65. 65. Now, a new orthodoxyIs emerging based ondemand side platforms
  66. 66. What is a demand side platform?DSP Enables advertisers / agencies tobuy ads and target consumers in real time Identify Serve ad DSP locates consumer Place bid based on them type value
  67. 67. DSP for mobileLack of cookies has forced DSP’s to come up withalternative methods for delivering critical dataIf an advertiser chooses to increase downloads of aparticular app the DSP: Learns Creates Auto adjusts Maximizes patterns of profile of bidding downloads traffic traffic type strategy All refined in real time
  68. 68. The old system ofbidding on blind inventory willbecome outmoded & inefficient
  69. 69. What will real time biddingbring to mobile?A system in which data on the bids, available inventory & thebehaviour of consumers is crunched in real timeInstantaneous bids for each impression based on data &smart algorithms that change constantly in response toaudience changesTransparency
  70. 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. 71. Trend 7.4g will accelerate the rich mediaspace, but not that fast
  72. 72. It has been nearly a decadesince the first 3g networkswere launched
  73. 73. Now we’re seeingthat excitementagain withLTE or 4g
  74. 74. Everything everywhere launched 4G inthe UK in 2012 – tests showed it to be 5times faster than 3G
  75. 75. By may 2013vodafone, o2 and3UK will be able tolaunch their own4g services
  76. 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. 77. How will 4g effectadvertising on mobile?
  78. 78. More rich media campaignsCurrently most are run across wifi4G will accelerate consumption – speed and more portablethan wifi hotspotsWE will see more:• Pre roll video advertising• Ads combining video, audio & interactive elements• Gamification ads• Ads utilizing APS’s
  79. 79. Trend 8.The rise of facebook& social on mobile
  80. 80. Until recently facebook’sproblem with mobile hasbeen well documented.Their audience wasmigrating to the smallscreen but ad revenuewasn’t.
  81. 81. In 2012 facebook started thechange – declaring itself amobile first companylaunched promoted posts that appear in users newsfeeds and was soon making $500,000 a dayMobile accounted for 23% of Facebook’s $1.33B ofadvertising revenue in Q4 2012 - $305M mobile ads soldTheir mobile app-install ads are now being used by 20%of the 100 top grossing ios apps to attract new users
  82. 82. In 2013 Facebook is rollingout it’s own mobile adnetworkGiving networks the ability to serve ads placedwith FB on 3rd party sites & aps
  83. 83. What you need to know for 2013Social networks will invest in deeper insight to enhance targetingon mobileAdvancements will be predominantly Facebook & Twitter, but sitessuch as google & pinterest will be monitored for newopportunitiesPositive results have been seen though advertising on facebook’sapp – set to improve with investment in targeting & consumerinsight
  84. 84. Trend 9.Apps vs. mobile web
  85. 85. In 2012 many expected theresurgence of mobile web.But is hasn’t panned out that way.Android app revenues has doubled Q3-Q4Facebook and others realized HTML5 was not the solutionThe pendulum is swinging back to apps staying for 2012
  86. 86. Apple store downloads on pace to hit 60B by mid 2013 Apple app store downloadsSource:  BI  Intelligence  
  87. 87. Smartphone users spend more time on apps than web Total time spent using mobile web vs. appsMinutes Spent Per Month (billions)Source:  Nielsen  Smartphone  Analy-cs  
  88. 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. 89. Because Most downloads are free Mobile app store downloads, free vs. paid 2012Source:  Garner,  September  2012  
  90. 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 gamesSource:  BI  intelligence  analysis  of  App  Store  data,  Jul.  2012  
  91. 91. Trend 10.The market is constantlychanging
  92. 92. Stay informed
  93. 93. Questions?info@mcsaatchimobile.com
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