Mobile in 2013: Our Take On The Top Trends & Insights
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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 ...

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

  • 1. James Hilton – CEO | james@mcsaatchimobile.com
  • 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. Localknowledge& a uniqueglobal reach
  • 4. Our core mobile offering Strategy   Mobile advertising production
  • 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. The future of digital
  • 7. The medium is now 20years old.
  • 8. So, how doesthe 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. HOWEVER…
  • 12. Most of the affluent community are already online Distribution of global incomeSource:  UN  Human  Development  Report,  Trends  In  Global  Income  Distribu-on  
  • 13. So the market’s moremature than you think.Meanwhile, somethingprofound happened lastyear…
  • 14. PC growth started to slow Global PC shipments by manufacturerSource:  Gartner.  IDC    
  • 15. Smartphone sales grew past pc sales Global internet device sales UnitsSource:  Gartner.  IDC.  Strategy  Analy-cs,  company  fillings.  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 themobile revolution?& what are the essentialsyou need to know?
  • 19. Trend 1.Smartphone penetration isslowing in established marketswhile emerging markets areon the rise
  • 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. But growth tends toslow after 50%penetration
  • 22. US & other markets are past halfway US smartphone penetrationSource:  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 & incomeSource:  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 breakdownSource:  Gartner.  IDC.  Strategy  Analy-cs.  BII  Intelligence  es-mates,  and  company  fillings  
  • 30. Android is the largest platform globally Smartphone Market Share by OS (global) Share ofGlobal Unit SalesSource:  Gartner  
  • 31. Partly because of high adoption in china Chinese smartphone market share by platformSource:  Analysys  Interna-onal  
  • 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. 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 trafficSource:  Monetate  
  • 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. Trend 3.Mobile ad spend toSkyrocket in 2013
  • 37. The global mobile advertising market was worth $6.43B in 2012 it’s forecasted to hit $23B by 2016Source:  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 highestunder indexing channelAd spend vs. consumer time spent by media (2012)
  • 40. What has been holdingmobile back & why is itnot going to anymore?
  • 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. 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. The small screenConstrainingCreative sizes
  • 44. 360 imagery
  • 45. Locationservices,mapsAnd gps
  • 46. video
  • 47. Trend 4.The year of the tablet
  • 48. ios has dominatedthe mid to highend tier of thelandscape
  • 49. Android is nowgaining marketshare withmultipletablets
  • 50. Windows is notyet out ofthe running
  • 51. The 7 inch isreaching a newtablet market andbecoming a moregenuinely mobiledevice than thanit’s larger cousin
  • 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. 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. Trend 5.Mobile retail to explode
  • 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. Purchases via a smartphone internet users aged 16+ who personally own a smartphoneSource:  GMI/Mintel  
  • 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. 46% look up a store’s mobile site & 42% check inventory prior to visiting a storeSource:  Local  and  the  e-­‐tailing  group,  2012  
  • 59. Tablet shoppershave a higherpropensity topurchase on thedevice
  • 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. 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 agenciesbuy mobile inventory ischangingWe’re taking control of thebuying process
  • 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. 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. Now, a new orthodoxyIs emerging based ondemand side platforms
  • 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. 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. The old system ofbidding on blind inventory willbecome outmoded & inefficient
  • 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. 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 mediaspace, but not that fast
  • 72. It has been nearly a decadesince the first 3g networkswere launched
  • 73. Now we’re seeingthat excitementagain withLTE or 4g
  • 74. Everything everywhere launched 4G inthe UK in 2012 – tests showed it to be 5times faster than 3G
  • 75. By may 2013vodafone, o2 and3UK will be able tolaunch their own4g 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 effectadvertising on mobile?
  • 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. Trend 8.The rise of facebook& social on mobile
  • 80. Until recently facebook’sproblem with mobile hasbeen well documented.Their audience wasmigrating to the smallscreen but ad revenuewasn’t.
  • 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. In 2013 Facebook is rollingout it’s own mobile adnetworkGiving networks the ability to serve ads placedwith FB on 3rd party sites & aps
  • 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. Trend 9.Apps vs. mobile web
  • 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. Apple store downloads on pace to hit 60B by mid 2013 Apple app store downloadsSource:  BI  Intelligence  
  • 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. 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 2012Source:  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 gamesSource:  BI  intelligence  analysis  of  App  Store  data,  Jul.  2012  
  • 91. Trend 10.The market is constantlychanging
  • 92. Stay informed
  • 93. Questions?info@mcsaatchimobile.com