Opera Mediaworks State of Mobile Advertising report reflects worldwide trends in mobile advertising for Q1 2013.

1. The State of Mobile Advertising | Q1 2013
Insights from Opera Mediaworks
The world's leading mobile ad platform
12,000 + 50 BILLION + 300 MILLION
sites & applications ad impressions per month global consumers reached
Publishers include …
In addition to providing our regular quarterly insights into mobile ad
traffic and monetization by device, geography and publisher category,
this edition of the State of Mobile Advertising report will highlight three
important drivers of the mobile advertising market.
The tight competition between iPhone and Android
Advertisers include …
The continued growth of international mobile ad markets
The importance of “intelligent prioritization” for advertisers
to reach their desired audience
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2. The State of Mobile Advertising | Q1 2013
iOS regains lead over Android in mobile-phone Traffic share (mobile phone OS)
impression volume; continues as the top OS in monetization
OS Share % of traffic % of revenue
iOS continues to outperform all other device platforms in terms of monetization, with the
highest average eCPM and greatest percentage of publisher revenue. In what emerged as Android 31.26% 26.72%
a major competition toward the end of last year, iPhone has now regained a slight lead over - Phone 30.22% 26.24%
Android phones this quarter. Also of interest is the continuing importance of tablet devices
- Tablet 1.04% 0.49%
to the mobile marketplace. For the first time we are specifically singling out Android tablets
as they grow to a small but noticeable share of the market. Meanwhile, the iPad dominates, iOS 44.53% 49.23%
growing to over 6% of all ad impressions and over 12% of all revenue. Finally, as we
- iPhone 31.91% 34.24%
anxiously await the impact of Samsung’s S IV devices, note that the Galaxy S III devices
drove 11% of all Android traffic, up from 9% last quarter. - iPad 6.54% 12.60%
- iTouch 6.07% 2.38%
RIM 4.23% 6.19%
Symbian 5.60% 2.46%
Other 14.29% 15.39%
iOS Android Other Symbian RIM
44.53% 31.26% 14.29% 5.60% 4.23%
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3. The State of Mobile Advertising | Q1 2013
Music, Video & Media remains #1 category for
impression volume, now the leader in revenue generation % of revenue
While Business & Finance continues to produce the highest revenue per impression, % of impressions
Music, Video & Media leads all publisher categories in terms of both impression volume
and total revenue generation.
Social
Business, Finance & Investing
Site category Music, Video & Media
Games
Computers & Electronics
News & Information
Social
#1 Revenue
Sports
Business, Finance & Investing
Arts & Entertainment
Music, Video & Media
Health, Fitness & Self Help
Games
#1 Impressions Other
Computers & Electronics
News & Information
Sports
Arts & Entertainment
Health, Fitness & Self Help
Other
0 7.25 14.5 21.75 29
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4. The State of Mobile Advertising | Q1 2013
Majority of ad requests and impression volume
Top 20 countries by impressions
is from USA, but Europe quickly gaining
United States
Across the Opera Mediaworks platform, the United States continues to drive the majority of ad requests,
but this lead is shrinking every month. In Q4 2012, approximately 60% of all ad requests came from the USA United Kingdom
but by the close of Q1 2013 the U.S. share of requests was 50.67%. Mobile ad traffic in the USA is still on an Italy
upward swing, but it is not accelerating at the breakneck pace we are seeing in Europe. The European market
Canada
now generates over 21% of ad requests, up from 14.61% the previous quarter. It is also significant to note that
65% of all European ad traffic originates in the top five countries: the United Kingdom, Italy, Germany, France India
and Spain. As a further indication of the internationalization of the mobile ad market the Russian Federation
Indonesia
ranks No. 7 by impression volume, after leaping into the Top 10 for the first time late last year.
Russian Federation
Germany
7.76%
4.10% Mexico
France
1.71% Spain
South Africa
Australia
Nigeria
14.25% China
Africa Brazil
50.69% Middle East
Ukraine
Asia Pacific
21.55% Europe Japan
Americas (non-U.S.) Saudi Arabia
United States
Malaysia
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5. The State of Mobile Advertising | Q1 2013
Intelligent prioritization of ad delivery optimizes
publisher reach and campaign performance
As the mobile advertising space matures, advertisers and ad networks are implementing methods
to optimize ad delivery performance — while still being careful to safeguard user privacy. Contextual
information easily acquired from mobile traffic data, such as device (or OS) and connection type
(e.g., mobile vs. Wi-Fi) often serves as the first criterion. But, advertisers are finding that simple additions
to this criteria, such as time of day or day of week, or a carefully thought-out frequency-capping regime,
can provide significant enhancement to CTR performance. (See chart below.)
Lift from targeting
Example: Music application, ad campaign for a restaurant
250%
Last quarter, we began running top-level performance
200% campaigns that take advantage of our intelligence
% of CTR performance
prioritization capabilities. While click-through rate
(CTR) is still important to advertisers, conversions are
ultimately what matters. Creative, relevant rich media
150% ads work well to engage potential customers and build
a lasting relationship with them, but conversions are
the goal, as they directly drive business forward.
100%
Standard targeting
50% Targeting with intelligent prioritization
0%
Untargeted Intelligent prioritization
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6. The State of Mobile Advertising | Q1 2013
In the example below, we show how for one mobile ad campaign Android was recognized as the top
performer among all of the OS options. We then found that within that group, honing in on those accessing
data from Wi-Fi (vs. any carrier) yielded different results based on the Android version they had. Version 2.2
and 2.3 were clear leaders, while Versions 3.1 and 3.2 surprisingly underperformed. Adjusting the campaign
based on those insights dramatically enhanced overall campaign performance.
Financial services campaign: 60M impressions, 415,000 clicks, 81,000 conversions
Device type CVR Android + carrier CVR Android + Wi-Fi CVR
Android 20.2% AT&T 31.1% + OS version
iPod 13.9% Sprint 29.3% 2.2 19.2%
iPhone 13.3% T-Mobile 27.9% 2.3 17.9%
iPad 12.1% Verizon 23.5% 2.1 13.0%
Windows 10.5% Cricket 23.3% 4.1 12.3%
BlackBerry 7.0% Metro PCS 17.2% 1.6 11.8%
Feature phone 4.9% Alltel 16.5% 4.0 10.2%
Cellular 16.7% 2.0 6.9%
Wi-Fi 13.5% 3.1 6.4%
3.2 4.7%
CVR = Conversion rate
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7. The State of Mobile Advertising | Q1 2013
Samsung GALAXY Note II — Parallax unit
Samsung Mobile launched its new flagship device, the GALAXY Note II, in September Opera Mediaworks is the
2012. To drive awareness of the product, the company worked with Opera Mediaworks’ world’s leading mobile advertising
subsidiary 4th Screen Advertising to build an interactive Parallax unit that would explore
the key features of the device through an interactive experience. platform, helping to power
the global mobile economy.
Users were invited to swipe up to reveal the ad and uncover the story of the new hybrid We improve efficiency, through technology, innovation,
phone/tablet, or "phablet." The viewing speed — and the direction of the story itself — transparency and trust, to create an open and vibrant
were controlled entirely by the user, who could pause, jump ahead or scroll back through marketplace for publishers and advertisers across the
the ad's content with a simple swipe. globe. Opera Mediaworks includes AdMarvel, an
ad-serving and mediation platform; Mobile Theory,
a premium mobile ad network in the United States;
At the end, the ad displayed a vibrant, interactive 360-degree view of the device, with and 4th Screen Advertising Ltd., a premium ad network
detailed specifications and quick links to Samsung Mobile's social channels for an in the United Kingdom. Also included are impressions
opportunity to engage further with the brand. served within Opera mobile properties, including the
Opera Mini Smart Page and the Opera Mobile Store.
Opera Mediaworks is a member of the Opera Group.
Opera, Opera Software, Opera Mini and the 'O'
logo are trademarks of Opera Software ASA.
© Copyright 2013, Opera Mediaworks. All rights reserved.
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