The document summarizes key insights from Opera Mediaworks' Q4 2012 State of Mobile Advertising report. It finds that Q4 was a record quarter for mobile advertising requests and revenue. While iOS generates the highest revenue, Android surpassed it as the leading mobile phone OS for impression volume. Music, video and media publisher sites generated the most impressions, while arts and entertainment saw the most revenue. The report also notes the rapid growth of mobile advertising in international markets like Russia. Finally, it provides examples of innovative mobile ad units that leverage new device capabilities.

1. The State of Mobile Advertising | Q4 2012
Insights from Opera Mediaworks
The world's leading mobile ad platform
12,000 + 50 BILLION + $400 MILLION +
sites & applications ad impressions per month in revenue to mobile publishers in 2012
Publishers include … In this edition of the State of Mobile Advertising report, we provide
our usual insights to mobile ad monetization by device, geography
and publisher category, based on data from the Opera Mediaworks
mobile ad platform during the last quarter of 2012. However, we also
investigate several indicators of changes in the market, as a way to
identify three emerging trends to keep a close watch on in 2013.
Advertisers include …
The growth of Android as a platform that is driving the
acceleration of ad requests and impression volume
The emergence of the Russian Federation as a vibrant mobile ad market
The rapid adoption of more sophisticated devices driving equally
rapid innovation in ad units
© Copyright 2013, Opera Mediaworks. All rights reserved.
1

2. The State of Mobile Advertising | Q4 2012
Q4 was a record quarter
The fourth quarter represented more than a two-times increase in impressions Opera Mediaworks is the
and revenue to publishers compared to any other quarter in 2012. This reflects world’s leading mobile advertising
the magnitude of marketing and advertising spend during this quarter, platform, helping to power
associated with the seasonal impact of holiday shopping.
the global mobile economy.
We improve efficiency, through technology, innovation,
transparency and trust, to create an open and vibrant
marketplace for publishers and advertisers across the
Growth in Total Requests and Revenue to Publishers globe. Opera Mediaworks includes AdMarvel, an
ad-serving and mediation platform; Mobile Theory,
a premium mobile ad network in the US; and 4th
Screen Advertising Ltd., a premium ad network in the
240% United Kingdom. Also included are impressions served
within Opera mobile properties, including the Opera
220% Mini Smart Page and the Opera Mobile Store. Opera
% of Q1 Revenue & Requests
Mediaworks is a member of the Opera Software
200% family of companies.
180% Opera, Opera Software, Opera Mini and 'O'
logo are trademarks of Opera Software ASA.
160%
140%
120%
100%
Q1 Q2 Q3 Q4
Requests
Revenue
© Copyright 2013, Opera Mediaworks. All rights reserved.
2

3. The State of Mobile Advertising | Q4 2012
iOS is still the top OS in monetization — but Android Traffic Share (mobile phone OS)
takes the lead in mobile phone impression volume
OS Share % of traffic % of revenue
When it comes to monetization, iOS continues to outperform other device
platforms. It leads the group with the highest average eCPM and provides Android 30.94% 29.97%
the greatest percentage of publisher revenue. iOS 41.91% 51.02%
- iPhone 29.08% 37.28%
However, with steady increases throughout 2012, Android emerged late in
the year as the leading mobile phone OS as measured by impression volume. - iPad 5.82% 10.49%
The growth in Android impressions was partly driven by the introduction of the
- iTouch 7.01% 3.26%
Samsung Galaxy S III, a device that now accounts for 9% of all Android traffic.
RIM 3.74% 4.12%
Symbian 9.01% 1.69%
Other 14.40% 13.20%
iOS Android Other Symbian RIM
41.91% 30.94% 14.40% 9.01% 3.74%
© Copyright 2013, Opera Mediaworks. All rights reserved.
3

4. The State of Mobile Advertising | Q4 2012
Music, Video & Media is #1 Category for impression volume
Among all publisher categories, Arts & Entertainment now generates the most revenue % of Revenue
(17.18%), taking a thin lead over Music, Video and Media (17.15%). However, in terms % of Impressions
of impression volume, Music, Video and Media is No. 1, with 21.4% of all impressions.
Business & Finance continues to produce the most revenue per impression.
Social
Business, Finance & Investing
Site Category
Music, Video & Media
Games
Computers & Electronics
Social
News & Information
Business, Finance & Investing
Sports
Music, Video & Media #1 Impressions Arts & Entertainment
Games Health, Fitness & Self Help
Computers & Electronics Other
News & Information
Sports
Arts & Entertainment
Health, Fitness & Self Help
Other #1 Revenue
0 6.25 12.5 18.75 25
© Copyright 2013, Opera Mediaworks. All rights reserved.
4

5. The State of Mobile Advertising | Q4 2012
Ad requests and impression volume is accelerating
Top 20 Countries by Impressions
across multiple geographies
United States
Across the Opera Mediaworks platform, North America (USA & Canada) continues
to drive the majority of ad requests (64%). Compared to Q3 2012, when North Indonesia
America generated 70% of all requests, we can see that the lead is shrinking. United Kingdom
Russian Federation
India
3.39% Canada
2.20% Italy
Mexico
Ukraine
Japan
Vietnam
14.40% Nigeria
South Africa
Australia
14.61% France
63.96% Africa Germany
Middle East
Spain
Asia Pacific
Europe Brazil
1.45% Central & Latin America
North America
Pakistan
Malaysia
© Copyright 2013, Opera Mediaworks. All rights reserved.
5
3

6. The State of Mobile Advertising | Q4 2012
This shrinking U.S. share of ad requests and
impressions is due to the growth in international traffic.
Non-U.S. Ad Impressions
One of the most noticeable growth markets
emerging over the last few months is the
Russian Federation.
Midway through 2012, the Russian
Federation was No. 7 in our list of markets
with the most ad requests. It is now No. 4,
after ad impressions increased over 60%
from the end of Q3 to the end of Q4 2012.
This growth closely parallels the uplift in
adoption of Android devices in the Russian
Federation, which we saw rise over 22% in
the same time period.
July Aug Sep Oct Nov Dec
© Copyright 2013, Opera Mediaworks. All rights reserved.
6

7. The State of Mobile Advertising | Q4 2012
Innovative ad units capitalize on enhanced device capabilities
As smartphones proliferate and more consumers’ handheld devices contain features
such as voice recognition, new-to-market gestures, social sharing and even augmented
reality capabilities, the opportunity for creative ad units and campaigns appears
limitless. Below are two examples of rich media campaigns we created and executed
on our mobile-ad platform that take advantage of the sophisticated features of today’s
mobile devices.
Madagascar 3 Theater Release
This DreamWorks Animation 3D movie was released in the United States in
June. The studio sought to generate excitement about the movie with an interactive
entertainment experience that let the user play with and learn more about the
much-loved characters. With camera overlay, video, animation and social sharing,
the rich media execution leveraged the phone’s inherent features to pull the user
deep into the experience.
Sour Patch Kids – UK Launch
Given the 8% growth of pocket candy sales and 15% growth of the “sours”
category, Kraft Foods decided to introduce a rebranded version of the well-known
U.S. line of candy, Sour Patch Kids, to the U.K. market. The campaign portrayed the
concept of “Sour, then Sweet” with animated figures “breaking the glass” on the
phone – including a sound effect – only to immediately fix it with Band-Aids.
© Copyright 2013, Opera Mediaworks. All rights reserved.
7
3