Mobile marketing spends between europes 2 biggest markets

MOBILEAD
TRENDS IN
FRANCEAND
GERMANY
Momentum Builds, as
Multinationals Lead the Way
MAY 2013
Karin von Abrams
Contributors: Victor Aka,Tobi Elkin, Natalie Marin-Sharp
Read this on
eMarketer for iPad

MOBILE AD TRENDS IN FRANCE AND GERMANY: MOMENTUM BUILDS, AS MULTINATIONALS LEAD THE WAY ©2013 EMARKETER INC. ALL RIGHTS RESERVED 2
CONTENTS
3 Overview: Mobile Advertising in Western Europe
10 France
15 Germany
20 Conclusions
21 eMarketer Interviews
21 Related Links
21 Editorial and Production Contributors
EXECUTIVE SUMMARY
The UK remains by far the largest mobile advertising
market inWestern Europe, and eMarketer estimates
it will account for nearly 53% of mobile internet ad
spending in the region this year. By comparison,
France and Germany will represent 12% and 6.8%,
respectively, of the $2.92 billion mobile ad spend total.
Yet those shares are beginning to add up to serious
money, with $349 million projected for Germany and
nearly $200 million forecast for France in 2013.Within
five years, mobile ad spending is expected to reach
$1.8 billion in Germany and $792 million in France.
As smartphone and tablet penetration rises, consumers
in France and Germany are growing more accustomed to
seeing ads on these devices. Familiarity generally breeds
acceptance, and mobile ads prompt many recipients to
research or purchase.
For their part, advertisers increasingly recognize the
need to reach and engage consumers via mobile
channels, if only to prevent their competitors from doing
so more quickly or effectively. So far, though, planning
and execution of robust mobile strategies—such as
mobile-optimized websites and high-spec campaigns
that really pack a punch—have been largely restricted to
megabrands that can afford to risk the investment and
buy the talent that helps ensure success.
KEY QUESTIONS
■■ How quickly are mobile audiences expanding in
France and Germany?
■■ How much will advertisers spend on mobile
platforms in France and Germany this year?
■■ What are the distinctive features of the mobile ad
markets in France and Germany?
■■ How do mobile phone users in France and Germany
feel about ads delivered to their mobile phones
and tablets?
millions
Mobile Internet Ad Spending in France and Germany,
2013 & 2017
2013
$349
$198
2017
$1,800
$792
Germany France
Note: includes display (banners, video and rich media) and search; excludes
SMS, MMS and P2P messaging-based advertising; includes ad spending on
tablets
Source: eMarketer, April 2013
156659 www.eMarketer.com

OVERVIEW: MOBILE ADVERTISING
IN WESTERN EUROPE
Usage of mobile devices such as smartphones and
tablets is skyrocketing inWestern Europe, but ad
spending on mobile platforms remains
disproportionate to the size of the audience.
eMarketer calculates that mobile’s share of 2012 digital ad
spending was very small—less than 5% in both France
and Germany, compared with 6% on average across
Western Europe.The consultancy Capgemini estimated
the proportion to be even lower: just 1.8% of all digital ad
spending in France last year. While most advertisers are
now aware of the need to address mobile consumers,
actual spending is lower than one might expect, given the
level of mobile engagement.
In terms of ad spending on the mobile web, Germany
is emerging—very gradually—from the shadow
of the UK.The UK remains far larger than any other
Western European market and is expected to account
for 52.5% of mobile internet ad spending in the region
in 2013. Nonetheless, firms in Germany will invest an
estimated $349 million this year in mobile ads, and those
in France will spend nearly $200 million. Fueled by a
bigger population and better economic health than other
nations in the region, Germany will claim an increasing
share of spending between now and 2017, while France’s
and the UK’s will decline gradually through 2015 and 2017,
respectively.
millions
Mobile Internet Ad Spending in Western Europe,
by Country, 2011-2017
UK*
Germany
France
Italy
Netherlands
Sweden
Norway
Denmark
Spain
Finland
Other
Western Europe
2011
$323
$112
$87
$63
$45
$21
$23
$26
$21
$10
$50
$780
2012
$806
$208
$130
$104
$78
$57
$50
$45
$36
$20
$90
$1,622
2013
$1,532
$349
$198
$168
$129
$96
$84
$70
$62
$33
$199
$2,920
2014
$2,451
$566
$295
$252
$187
$144
$126
$104
$102
$50
$366
$4,643
2015
$3,554
$879
$417
$365
$268
$195
$183
$146
$162
$71
$632
$6,872
2016
$4,621
$1,286
$578
$470
$372
$244
$238
$190
$252
$88
$939
$9,277
2017
$5,684
$1,800
$792
$588
$502
$288
$281
$237
$378
$102
$1,318
$11,968
tablets; numbers may not add up to total due to rounding; *eMarketer
benchmarks its UK mobile ad spending projections against the IAB UK/PwC
data for which the last full year measured was 2011
Multinational firms and top brands are responsible
for the bulk of mobile ad spending—and innovation—
in both France and Germany. For example, most
campaigns reaching the final stages of the Cannes
Mobile Lions Awards in 2012 came from global players
with deep pockets, such as sportswear manufacturers
Nike and adidas; mobile service providers Nokia and
Orange; automakers including Audi, Ford Motor Co.,
BMW and Volkswagen; consumables giants such as
Procter & Gamble, Kraft Foods, McDonald’s andThe
Coca-Cola Co.; and media brands such as MTV Networks.
Economic factors probably contribute to this situation;
most European economies are struggling to emerge from
a severe downturn, and many advertisers with limited
budgets have been slow to spend money on mobile
when it represents unknown territory in marketing terms
and challenges their existing skill sets.
Financial questions apart, staking a claim to mobile
competence is a priority for many major advertisers,
according to Paul Amsellem, CEO of Mobile Network
Group/Bemobee: “These brands are investing a lot of
money to be sure they will be big in mobile. We’ve done
campaigns for Nissan, Renault and McDonald’s. Like
several luxury brands, including Chanel and Dior, all these
brands are making a move.They are now big players in
mobile in France.”
Web users in France and Germany may be less
likely to access social sites via mobile devices than
users throughout the rest of Europe. As a result,
social networks don’t yet attract as large a proportion
of mobile ad expenditure as they do in the UK. But
some research suggests that relatively slow adoption of
social networking in the two countries is now picking up
speed. If that is true, advertisers in France and Germany
will soon be following their UK and US counterparts onto
Facebook and other social sites, aiming to capitalize on
the social-mobile link.

The arrival of rich media is fueling a further surge
in mobile ad spending. Historically, much mobile
advertising was text-based or composed of static,
rather unimaginative graphic elements. With millions of
consumers now using smartphones and tablets with
high-resolution screens and robust data packages,
advertisers have a chance to engage them with more
appealing visuals, including video.Top brands are leading
the way, but all marketers targeting mobile audiences
will face pressure to move in the same direction—or risk
losing brand value and market share. As Jens Oberbeck,
general manager for Germany, Austria and Switzerland
at mobile advertising firm InMobi, commented in an
interview with GIGA: “I believe that one of the driving
factors behind mobile ads will be rich media—large
animations and videos, seen not just as pre-rolls before
other videos, but as ads in their own right.”
Wider use of HTML5 and responsive design will
also boost mobile advertising in Europe’s largest
markets. At the moment, the variety of available mobile
handsets and their technical specifications is an obstacle
for many brands. For example, advertisers often choose
to target either Android or Apple devices because
devising ads for both operating systems (OSs) can be
costly and time-consuming. HTML5—a markup language
for internet content designed to support advanced
multimedia and ensure better interoperability—will help
overcome some of these hurdles.The same is true of
responsive design, a programming approach that aims
to deliver optimal text and graphics to many different
devices and screens, removing the need to program
separately for each device type.These advances will
enable advertisers in the region to reach more mobile
consumers than ever before, with far greater efficiency.
THE GROWING MOBILEAUDIENCE
eMarketer estimates that 340.3 million people in
Western Europe will use a mobile phone in 2013,
including 66.8 million in Germany and 51.4 million in
France. In 2015, the number of mobile phone users in
the region is expected to pass 351 million.There will
also be 161.1 million people in Western Europe who use
smartphones this year.
Mobile devices account for an ever-greater share
of mobile web traffic in key European markets. In a
November 2012 study from InMobi, 40% of mobile web
users in France said their internet usage was evenly split
between a mobile device and desktop or laptop. But more
than one-quarter (26%) said they went online mostly via
mobile, and 14% said their mobile phone was their only
web access device.
The pattern was similar in Germany: 36% of mobile web
users said their internet access was divided between
mobile and a desktop or laptop, 25% said they used a
mobile device more often, and 17% went online only
via mobile.
In both France and Germany, 10% of total page views in
February 2013 came from internet traffic via smartphones
and tablets combined, according to Adobe’s “Digital
Index” report.Tablets had the edge in both markets,
accounting for 6.1% of all page views in France and 5.7%
in Germany.
In most European countries, young adults ages 18 to
29 were most likely to be mobile web users in 2012,
according to Pew Research Center Global Attitudes
Project. In France, 65% of mobile phone owners in
that age group used the device to access the internet,
compared with 40% of those ages 30 to 49 and 14%
of respondents 50 and older. In Germany, 56% of 18- to
29-year-olds said they went online via mobile, compared
with 34% in the 30-to-49 age group and 15% of adults in
the older age bracket.
By some accounts, phone owners in France and Germany
are relatively uninterested in social networking via mobile.
According to comScore MobiLens, around one-quarter
of mobile phone owners in the two countries accessed
social sites with their phones in July 2012.The UK’s Office
of Communications found similarly low percentages of
mobile social network users in France and Germany in
October 2012, at 27% and 26% of mobile phone owners,
respectively, compared with 43% in Spain and 40% in
the UK.

% of mobile phone owners
Mobile Social Network Users in Select Countries,
Oct 2012
Spain 43%
UK 40%
US 40%
Australia 40%
China 37%
Japan 35%
Italy 32%
France 27%
Germany 26%
Note: Australia n=759; China n=899; France n=733; Germany n=790; Italy
n=869; Japan n=531; Spain n=883; UK n=837; US n=684; ages 18-64
Source: Ofﬁce of Communications (Ofcom) - UK, "International
Communications Market Report 2012," Dec 13, 2012
Evidence from Médiamétrie//NetRatings contradicts
this data. A study by the firm suggested that in France,
at least, Facebook’s mobile site was second only to
Google in unique visitor numbers in December 2012.
Similarly, eMarketer’s own calculations indicate that in
Germany, 38% of web users—more than 27% of the
country’s population—will visit Facebook at least once per
month in 2013. Inevitably, greater smartphone and tablet
penetration will lead many of those visitors to access the
site via mobile as well. It appears that mobile social media
use—in parallel with social networking in general—is
simply taking longer to develop in France and Germany
than in the UK, Italy and Spain.
MOBILEADVERTISING
eMarketer predicts that mobile internet ad spending
in France will reach $198 million this year—6.8% of all
mobile spending in Western Europe. Germany will claim a
larger slice, estimated at 12% of the total, or $349 million.
As a proportion of 2012 digital ad spending, eMarketer
estimates that mobile was very small in France and
Germany, at 4.8% and 4.1%, respectively. But both
countries can expect steep rises in mobile ad spending
between now and 2017, with compound annual growth
rates (CAGRs) of 43.6% and 54%, respectively. Overall,
eMarketer estimates that mobile ad spending in the
region will benefit from a CAGR of 49.1% between 2012
and 2017.
Mobile, Digital and Total Media Ad Spending CAGR
and Share in Western Europe, by Country, 2012-2017
Digital
% of total
Mobile
% of digital
CAGR (2012-2017)
UK
Denmark
Norway
Netherlands
Sweden
Germany
France
Finland
Spain
Italy
Other
Western
Europe
2012
40.4%
31.4%
29.4%
28.1%
24.4%
19.7%
17.9%
17.6%
17.5%
13.8%
18.6%
23.6%
2017
51.1%
41.8%
37.3%
37.3%
29.9%
26.6%
24.6%
22.1%
25.2%
21.9%
23.7%
31.5%
2012
9.3%
6.5%
6.1%
5.4%
6.2%
4.1%
4.8%
6.4%
3.2%
6.6%
3.3%
6.2%
2017
43.9%
24.2%
24.6%
25.0%
23.6%
24.8%
20.3%
24.2%
20.7%
21.2%
32.9%
31.1%
Mobile
47.8%
39.5%
41.5%
45.0%
38.4%
54.0%
43.6%
38.9%
59.8%
41.3%
71.2%
49.1%
Digital
8.4%
7.4%
7.0%
6.7%
5.8%
7.6%
7.7%
6.4%
9.8%
12.0%
7.9%
8.1%
Total
media
3.4%
1.4%
2.0%
0.8%
1.6%
1.3%
1.1%
1.7%
2.1%
2.1%
2.8%
2.0%
As these figures suggest, France and Germany are not
among the European nations spending the most on
mobile ads per internet user. In fact, they rank rather
low by this measure. eMarketer estimates advertisers in
France spent an average $8.01 per web user on mobile
ads in 2012, while their counterparts in Germany spent
$12.25—both a far cry from the average of $36.35 spent
in the UK. Denmark, Norway and Sweden also posted
averages between $21.25 and $35.71 per internet user.
Most Western European countries showed tremendous
growth in mobile ad impressions served in 2012. In
more mature markets such as the Nordic nations, the
number of mobile impressions that Velti, an ad serving
firm, delivered rose by several hundred percent between
January and November 2012. But changes elsewhere
were even more remarkable: 501% growth in France and
655% in Germany.
Mojiva, another ad serving company, noted phenomenal
growth between 2011 and 2012 in ads delivered
specifically to tablets in the EU-5. In France, the number
rose more than elevenfold—from 45 million to 519 million
ads. In Germany, tablet ad requests jumped from
54 million to 459 million during the year.

millions
Tablet Ad Requests Served by Mojiva in the EU-5,
2011 & 2012
2011 2012
UK 109 1,610
France 45 519
Germany 54 459
Italy 40 372
Spain 65 362
Source: Mojiva, Feb 25, 2013
However, clickthrough rates (CTRs) for mobile ads served
by Velti in France, Germany and most other Western
European countries remained relatively low in 2012, at
less than 2%.
Real-time bidding (RTB) for mobile ads is accelerating,
reflecting a general shift toward RTB on all digital
platforms in more mature markets, including the UK.
This is a direct consequence of rising mobile usage,
according to Vincent Pelillo, COO of mobile agency
madvertise: “Because mobile traffic is growing
exponentially, there is a need to defragment the supply
of mobile inventory and make it available for marketers.
Programmatic buying of mobile ads and RTB are going to
boom in the next three years.”
The Rubicon Project recently investigated the rise of
mobile RTB, canvassing the opinions of agency media
buyers across Europe.
The online advertising company found significant
increases overall in the percentage of total spending
going to mobile display. While 83% of respondents in
2012 said they spent less than 5% on mobile ads, just
17% said the same thing in 2013. More than half (57%)
of those surveyed in 2013 said they were now spending
between 5% and 10% of their digital display budgets on
mobile advertising.
Striking, too, was the fact that in 2012, just 4% of media
buyers in Europe had devoted between 10% and 20%
of their budgets to mobile, and none put the percentage
any higher. One year later, nearly one in 10 said that
mobile accounted for 20% to 40% of all spending on
digital display.
% of respondents
Mobile as a Percent of Total Digital Display Ad
Spending According to Agencies in Europe*,
2012 & 2013
<5%
83%
17%
5%-10%
13%
57%
10%-20%
4%
17%
20%-40%
9%
2012 2013
Note: *Denmark, France, Germany, Italy, Netherlands, Spain, UK
Source: Rubicon Project as cited in company blog, Feb 26, 2013
Asked what kind of mobile inventory they planned to
buy in 2013, the agencies showed a near-equal preference
for standard web ads delivered to tablets (35% of
respondents), in-app ads (32%) and ads placed on
mobile-optimized sites (32%).
But agencies still had several concerns about buying
mobile ad placements; 21% of respondents cited
targeting as an issue, and 20% were worried about the
quality of inventory.Technology was also a challenge,
mentioned by 15% of those polled.
Pelillo’s agency is one of those aiming to solve such
problems and is doing so by offering advertisers a
comprehensive mobile ad service. His colleague
Christof Wittig, the firm’s CEO, said: “At madvertise,
we are the largest independent local mobile ad network
in Germany. In many ways, I think we have captured
the high ground of what we call premium performance.
… We think that Germany is still a very brand- and
premium-oriented marketplace.The market here is
driven by brand-oriented advertising budgets. But
campaigns use a lot of performance components like
independent tracking, which is a big differentiator for
our agency. Advertisers welcome tracking, which allows
them to measure the lifetime value of the customer
and the ROI [return on investment] of advertising
dollars. Also, accessing the vast supply of ad inventory
through RTB makes a lot of sense to the advertisers in
our marketplace.”

Another aspect of technology that’s vital to further
development of mobile ads, including rich media and
video, is the provision of Wi-Fi and high-speed 4G
networks. Cities and semiurban areas in France and
Germany are quite well served by Wi-Fi, and 4G has
begun to appear in major cities. But there are rural parts
of both countries that will not have robust network
coverage for years to come. Fortunately for most
advertisers, relatively few of their existing or potential
customers live in these more remote locations.
CONSUMERATTITUDESTOWARD
MOBILEADS
In February 2013, Ipsos OTX released data from a survey
of 18,500 web users in 24 countries indicating that only
28%, on average, had seen an ad of any kind on their
mobile phone. Perhaps surprisingly, the report stated
that 28% of respondents in France had seen a mobile ad,
compared with 21% in the UK and 19% in Germany. In
Western Europe, Spain registered the highest response
rate, at 53%.
Consumers who are more accustomed to seeing mobile
ads may accept them more readily. According to InMobi,
mobile web users in many Asia-Pacific markets, who had
much greater exposure to mobile ads, were among those
most likely to say they were content to receive them.Yet
respondents in several emerging markets were also quite
tolerant—perhaps because mobile ads were an intriguing
novelty. Worldwide, an average 59% of mobile web users
polled in late 2012 said they were either as comfortable or
more comfortable with mobile ads than with other types
of ads.
Interestingly, France and Germany registered far
lower response rates in this study—with 34% and
42% of mobile web users, respectively, saying they
were comfortable with mobile ads. Around one-third
of respondents in both countries said they were less
comfortable with mobile ads than with other types of ads.
% of respondents
Comfort Level with Mobile Ads Compared to Other
Ad Formats According to Mobile Internet Users in
Select Countries, Nov 2012
More/equally
comfortable
Less
comfortable
Kenya 89% 5%
Nigeria 83% 4%
South Africa 70% 13%
India 66% 10%
US 65% 16%
South Korea 62% 19%
Singapore 59% 24%
Australia 54% 22%
UK 52% 26%
New Zealand 52% 21%
China 49% 24%
Japan 44% 31%
Germany 42% 33%
France 34% 39%
Worldwide 59% 20%
Note: excludes text messaging
Source: InMobi, "Global Mobile Media Consumption" conducted by
Decision Fuel and On Device Research, Feb 27, 2013
It may be a coincidence, but the same study also found
that 16% of mobile web users in both France and
Germany said they either frequently or very frequently
tapped mobile ads without meaning to.
MOBILEVIDEOADVERTISING
The “Consumer Mobile Streaming Survey” from Rovi
Corporation probed consumer reaction to mobile video
ads. In January 2013, more than two-thirds of both
tablet and mobile phone video streamers in France said
they had seen an ad while watching mobile video.This
percentage was marginally lower among video streamers
in Germany.
There were striking differences, though, between the
types of ads the two populations viewed. In Germany,
more than 80% of tablet and mobile phone video
streamers had seen pre-roll ads. Around half had seen
video banners, and 20% or fewer had seen an ad mid-roll.
The results were essentially reversed in France: Around
85% of mobile device owners had viewed video banners,
while no more than one in five had seen a pre-roll ad.

These results suggest that advertisers in Germany, like
those in the UK, have a strong preference for pre-roll
placements but are also careful to ensure a presence
in banner inventory. Mid-roll ads in the country are not
as great a priority as they are in France. But consumer
viewing habits may also play a role here. If significant
numbers of video streamers in France typically avoid
pre-roll ads, advertisers will be less likely to invest in
that format.
% of respondents
Types of Mobile Video Ads Seen by Mobile and Tablet
Video Streamers in Select Countries, Jan 2013
Tablet
Banner ad
Pre-roll (video ad playing
before the video you
selected starts)
Mid-roll (video ad playing
in the middle of the video
content you are viewing)
Takeovers (static ad that
briefly fills all or most of
your screen)
Mobile phone
Banner ad
Pre-roll (video ad playing
before the video you
selected starts)
Mid-roll (video ad playing
in the middle of the video
content you are viewing)
Takeovers (static ad that
briefly fills all or most of
your screen)
France
84.7%
19.0%
31.5%
-
86.3%
20.3%
34.5%
-
Germany
53.0%
86.5%
20.0%
29.7%
50.3%
81.8%
13.8%
23.3%
Italy
43.4%
88.8%
9.1%
32.9%
40.5%
83.5%
9.1%
33.1%
Spain
31.1%
83.1%
12.2%
23.6%
37.4%
76.2%
15.4%
31.3%
UK
57.6%
77.7%
20.1%
23.1%
51.7%
72.7%
20.6%
20.6%
US
55.6%
81.7%
40.7%
33.2%
61.1%
75.6%
31.3%
30.1%
Source: Rovi Corporation, "Consumer Mobile Streaming Survey," Feb 25,
2013
Overall, Rovi’s survey seemed to confirm better results
with full-screen video ads viewed in connection with
primary content than with other ad formats mobile video
streamers saw—such as branded infotainment or ads
containing coupons or discount offers. Viewers in France
and Germany who had seen video advertising before,
during or after they streamed content had better recall of
the brands and products featured or were more likely to
take action prompted by an ad.
% of respondents
Most Effective Type of Mobile Video Ad According to
Mobile Video Streamers in Select Countries, Jan 2013
Video ads (before, during
or after the video)
Location-based ads
(ads for stores/services
near you)
Ads with discount
coupons or special offers
Banner ads
(static display ads)
Branded video ads
(infotainment ads, e.g.,
extreme sports video
sponsored by Red Bull)
Ads with QR codes (scan
to get more information)
France
32.5%
13.2%
20.1%
9.4%
17.5%
7.3%
Germany
36.2%
17.4%
18.4%
11.6%
8.2%
8.2%
Italy
28.8%
10.6%
21.2%
15.4%
16.8%
7.2%
Spain
33.0%
9.0%
14.4%
14.1%
22.5%
6.9%
UK
40.8%
10.7%
12.9%
18.0%
13.2%
4.4%
US
42.6%
16.6%
14.3%
12.6%
9.1%
4.8%
Note: help to remember brand or product, or prompt action; numbers may
not add up to 100% due to rounding
Source: Rovi Corporation, "Consumer Mobile Streaming Survey," Feb 25,
2013
THE ROLE OF SEARCH
Few research firms have issued estimates or forecasts for
spending on mobile search in France or Germany. Most
sources focus on mobile display as the basis for their
calculations of the total mobile ad market and use varying
methods for arriving at a figure for search if they include
it.The methodologies for assessing search are often
unclear. For that reason, eMarketer, which released new
figures for UK mobile search spending in April 2013, has
not produced comparable estimates for those countries.
What can be said is that search claims a substantial
proportion of mobile spending in both markets, as is the
same in the UK and the US.There appear to be important
differences, however. FirstPartner, a source that does
estimate spending on search placements, projected that
search placements will represent more than 53% of all
mobile ad spending in France this year. It expects the
share in Germany to be lower, at about 43%.
It’s difficult to pin down the reasons for this variation—if
it exists. It doesn’t appear to reflect patterns in digital
spending as a whole.That is, advertisers in France will
actually spend less on search in 2013 (42% of all digital ad
spending, eMarketer calculates) than their counterparts in
Germany (47.4%).

Patterns of device usage and preference may be a factor.
Smartphone penetration is higher in France—eMarketer
estimates 50% of mobile phone users in France will own
the device this year, compared with 42% in Germany—
and the search process is more user-friendly on a
smartphone than on a feature phone. But by the same
token, smartphones offer better screens for display ads,
which should encourage investment in display.
The 2012 Google report “Our Mobile Planet:
Understanding the Mobile Consumer,” carried out by
Ipsos OTX and Ipsos MediaCT, stated that 48% of
smartphone users in France visited search engines
via mobile at least once a day, compared with 46% of
smartphone users in Germany.This small gap doesn’t
seem sufficient to warrant such a big difference in
spending levels, however.
It’s also possible that FirstPartner’s estimates, made
some months ago, are simply out of date. While
commenting on mobile search and display in France,
Mobile Network Group’s Amsellem said:
“At the moment the most investment is in mobile display.
Then, probably, mobile search and mobile video. … One
reason for this is that in the French market Apple is quite
big. But also the mobile web is not really popular. So
people prefer investing in apps on iOS. … Marketers
are doing display advertising on mobile apps … and less
through mobile search.
“It will change in the future because the Android OS
is starting to take a bigger piece of the market now, so
marketers will probably develop more advertising for the
mobile web.That’s also because more people are used to
mobile browsing and searching, which was not the case
initially. …They were going online with apps.”
He added that there are still challenges: “People are ready
to search, and when they search and go to a site that’s
not optimized for mobile, they are really disappointed. …
Less than 20% of sites in France are optimized for the
mobile web. … When you see a site that you cannot read
on your mobile, you’d rather take the app. … But that
will change.”
By contrast, Germany’s mobile users are already big
Android fans. Around 67% of smartphones in the country
used Google’s OS in December 2012, according to Kantar
Worldpanel. In France, the proportion was about 59%.
If Android is associated with higher levels of search
activity—and potentially, spending on search—one would
expect advertisers in Germany to invest heavily in the
tactic this year.
In fact, that’s what madvertise’s Pelillo is seeing, though
he does anticipate rising investment in display in leading
regional markets. “In Western Europe, mobile search is
between 50% and 60%.Text messaging is still between
10% and 15% of mobile advertising.The less mature the
market, the bigger that portion. And the rest is display—
between 30% and 40%, or maybe 45%, depending on
the maturity of the market.The bigger markets for display
advertising are clearly Germany and the UK.”
If spending on mobile search is proportionately much
higher in France than in Germany, another reason may
be that firms in France are more likely to be feeling an
economic squeeze—and dealing with more budget
constraints. Money spent on search may well bring a
higher ROI than spending on the more complex process
of creating mobile display ads.

FRANCE
THE MOBILEAUDIENCE
eMarketer estimates 51.4 million residents of France
will use a mobile phone in 2013, equivalent to 78% of
the country’s population. More than 23 million will be
smartphone owners, and an estimated 10.8 million will be
tablet users.
millions, % of population and % change
Mobile Phone Users in France, 2011-2017
2011
49.0
75.0%
3.3%
2012
50.2
76.5%
2.5%
2013
51.4
78.0%
2.5%
2014
52.5
79.3%
2.1%
2015
53.6
80.5%
2.0%
2016
54.5
81.5%
1.7%
2017
55.0
82.0%
1.0%
Mobile phone users % of population % change
Note: individuals of any age who own at least one mobile phone and use
the phone(s) at least once per month
Source: eMarketer, May 2013
The rate of mobile usage among internet users in France
is higher than among the country’s general population.
A survey by Ifop and Psychologies found that 45% of
resident web users ages 18 and older had a smartphone
in December 2012, while 18% owned a tablet. Sixty-five
percent of 18- to 34-year-olds had a smartphone, and 21%
of those ages 25 to 49 owned a tablet.
% of respondents
Mobile Devices Owned by Internet Users in France,
by Demographic, Dec 2012
BlackBerry Smartphone Tablet None
Gender
Female 6% 40% 14% 50%
Male 6% 51% 22% 38%
Age
18-24 8% 63% 13% 30%
25-34 6% 67% 22% 24%
35-49 8% 47% 20% 41%
50-64 5% 37% 16% 52%
65+ 1% 28% 16% 62%
Socioeconomic status
PCS+ 12% 56% 28% 29%
PCS- 4% 47% 15% 44%
Inactive 5% 35% 15% 54%
Total 6% 45% 18% 44%
Source: Ifop and Psychologies, "Les Français et les écrans numériques,"
Jan 29, 2013
According to InMobi, in October 2012, mobile web users
in France spent an average of 106 minutes per day with
their mobile phones and 34 minutes with their tablets—
an average of 2 hours and 20 minutes each day when
they were, in principle, reachable by mobile advertisers.
Note, though, that simultaneous multitasking with both
devices would decrease that period of exposure.
minutes
Average Time Spent per Day with Select Media
According to Mobile Internet Users in France,
Oct 2012
Internet 107
Mobile 106
TV 98
Radio 64
Tablet 34
Newspapers/magazines29
Note: n=626
Source: InMobi, "Mobile Media Consumption In France: A 'New Wave' Takes
Shape" conducted by Decision Fuel, Dec 3, 2012
Moreover, the rapid expansion of mobile activity will
translate into much greater potential exposure in the next
few years. Cisco Systems predicted that the number of
smartphones in France will more than double between
2012 and 2017 from 26 million to 57 million, while the
number of tablets connected to the web will leap from
1 million to 12 million.

Mobile Data and Device Metrics in France,
2012 & 2017
Mobile data traffic
Consumer mobile data traffic (TB/month)
Business mobile data traffic (TB/month)
Total mobile data traffic (TB/month)
Mobile users (millions)
Mobile data traffic per user (MB/month)
Mobile devices
Smartphones (millions)
Connected tablets (millions)
Total mobile connected devices (millions)
Mobile connected devices per capita
Mobile data traffic per device
Smartphone data traffic per device (MB/month)
Tablet data traffic per device (MB/month)
Laptop data traffic per device (MB/month)
4G mobile broadband
4G connections (% of total mobile connections)
4G data traffic (% of total mobile data traffic)
2012
10,781
3,004
13,785
54.4
244
26
1
78
1.2
209
424
1,528
0.1%
1.2%
2017
97,575
24,762
122,338
58.1
1,813
57
12
141
2.0
1,111
2,045
2,710
14.8%
37.8%
Note: 1 terabyte=1 million megabytes; includes only devices connected to
the mobile network; excludes devices connected via Wi-Fi
Source: Cisco Systems, "Cisco Visual Networking Index (VNI): Global Mobile
Data Traffic Forecast Update, 2012-2017," Feb 5, 2013
As Cisco Systems’ data indicates, 4G is still little used in
France.The mobile operator SFR has offered 4G to limited
audiences in seven of France’s cities since the end of
March 2013. Orange provided it only to select recipients
in four cities and parts of Paris until early April 2013, when
the service rolled out to 10 more urban centers.Yet all
operators are racing to extend 4G to additional customers
this year and next. BouyguesTelecom has announced
nationwide coverage starting on October 1, 2013.
Cisco Systems projected that nearly 15% of all mobile
connections in France will come from 4G within five years
and that 4G data traffic will be nearly 38% of mobile
data traffic.Technical hurdles are not the only ones to
overcome, however. Mobile providers must also convince
consumers of 4G’s value. Results of an April 2013 poll
on industry website Le Journal du Net suggested that
that process may take a while. When visitors were
asked whether they were ready to pay an additional €10
($12.82) per month to get 4G, 91.2% said no. Of course, it
should be noted that when mobile owners upgrade their
devices, it is often near-impossible not to upgrade their
service packages as well. In many parts of France, mobile
operators will likely make it difficult for consumers who
upgrade to choose a package without 4G.
MOBILEADVERTISING
Mobile ad spending in France will continue to rise rapidly
through 2017, though annual growth rates will decline.
eMarketer estimates that total spending on mobile
ads—including banners, rich media, video and search
placements, and excluding message-based formats—will
leap by 53% this year.
millions and % change
Mobile Internet Ad Spending in France, 2011-2017
2011
$87.1
43.6%
2012
$129.5
48.7%
2013
$198.1
53.0%
2014
$295.3
49.1%
2015
$417.3
41.3%
2016
$578.0
38.5%
2017
$791.8
Mobile internet ad spending % change
tablets; converted at the exchange rate of US$1=€0.78; CAGR
(2012-2017)=43.6%
37.0%
Players in the mobile marketing industry have noticed the
momentum building. According to Amsellem, “Clients are
asking for mobile advertising for smartphones and tablets,
but the smartphone is the most important thing they’re
asking for at the moment.They’re asking for traditional
HTML5 campaigns, rich media and things that are really
special, like campaigns where you can scratch the ads.
You can feel that the French market is evolving in the right
way. Marketers now want to allocate a big piece of their
digital investment to mobile, which was not the case a
year ago.”

Admittedly, advertisers in France have been somewhat
slow to embrace mobile options—with notable
exceptions. Certainly ad spending on mobile platforms
bears little relation to the number of consumers using
them. Médiamétrie reported that 41.2% of consumers
in France were mobile internet users in September
2012.The same firm, in collaboration with NetRatings,
calculated that the top 20 mobile websites in France
attracted 21 million unique visitors in November 2012,
while the top 20 internet sites drew 43 million.Yet mobile
ads accounted for just 1.8% of all digital ad spending in
France in 2012, according to Capgemini.
Of course, that figure doesn’t include investments in
mobile search or in-app ads. When those are factored
in, total mobile spending in 2012 would be closer to
“€150 to €200 million [$192.3 million to $256.4 million],”
according to a statement cited in Le Journal du Net from
Julien Billot, deputy director general of the PagesJaunes
Groupe, owner of the classifieds site PagesJaunes,
France’sYellow Pages.
What’s driving the interest in mobile advertising?
Amsellem sees several factors at work: “Most of the
big ad agencies, like WPP and others, have now set up
dedicated mobile teams. So they’ve got experts, which
was not the case before. Another reason for the growth
is that multinational brands like Kraft, Procter & Gamble,
Unilever and others are investing in mobile in developing
markets, so now French marketers think, ‘Why not test
and develop a mobile strategy?’The other thing is that
unlimited mobile usage plans and penetration rates for
the smartphone increased significantly last year. … All of
these factors encourage brands to go mobile now.”
Another potential game changer may be the increasing
importance of social networks in the mobile experience.
Thirty-eight percent of mobile web users polled by InMobi
in late 2012 said they expected to access social media
more often via mobile in the next 12 months.That kind of
behavioral change will persuade many more advertisers to
invest in ads on social sites.
% of respondents
Mobile Activities that Mobile Internet Users in France
Expect to Conduct More*, Oct 2012
Social media
38%
Play games
30%
Search/download apps
27%
Watch videos/listen to music
22%
Search for general information
19%
Search for local information and deals
18%
Send and receive email
18%
Shop
15%
Mobile banking and bill payments
13%
Note: n=626; *in the next 12 months
Patrick Hoffstetter, director of Renault’s ‘digital
factory,’ on the role of mobile:
“Mobile has become a medium in its own right, if
only because of its high level of penetration. Rising
usage means that the consumption of data and content
keeps on growing.Today the issue is knowing what
role mobile should play in a communications strategy.
With geolocalization, for example, we can create a real
‘drive-to-store’ dynamic, prompting users to visit shops
nearby. For that matter, in-store usage of tablets or
smartphones that are effectively up-to-date brochures is
also revolutionizing physical sales.The obstacles reflect
the size of these opportunities—in particular, the need
to target the right person at the right time.That’s where
Big Data—so often talked about—really comes into its
own, allowing us to adapt the message to the behavior of
individual mobile users.
“So, different medium, different content.The attributes of
the mobile screen and its potential for interactivity mean
we can’t be content to replicate the models proven to
work on the web.When all those parameters are taken
on board, the results soon follow. Specifically, we’ve done
SMS programs highlighting promotional offers that have
generated very positive results.”
—In an April 9, 2013, interview with Le Journal du Net

MOBILEADS
Inevitably, France’s mobile display ad market is largely
shaped by the mobile sites with the biggest audiences.
According to Médiamétrie//NetRatings, 10 sites attracted
at least 3.6 million unique visitors in December 2012—
among themYahoo!, Wikipedia, Apple.com andYouTube.
Facebook alone registered nearly 16 million visitors that
month, though Google topped that with an estimated
16.7 million.
millions
Top 10 Mobile Internet Sites in France, Ranked by
Unique Visitors, Dec 2012
1. Google 16.7
2. Facebook 15.9
3. YouTube 12.0
4. Apple 8.7
5. Orange 7.1
6. Wikipedia 5.8
7. SFR 5.0
8. Yahoo! 4.6
9. Dailymotion 4.1
10. Bouygues Telecom3.6
Note: ages 11+
Source: Médiamétrie//Netratings as cited in press release, Feb 8, 2013
On the other hand, mobile web users in France were
much more likely to notice ads in an app than on a mobile
site, according to InMobi. Nearly two-thirds (64%) of
users surveyed said they had seen an in-app ad.Two in
five (41%) had observed an ad on a search engine, such
as Google’s mobile site, while less than one-third of
respondents said they had noticed mobile ads elsewhere.
% of respondents
Channels on Which Mobile Internet Users in France
Noticed Mobile Ads, Oct 2012
In an app 64%
On a search engine 41%
On a video website 31%
On a retailer website 25%
Other 18%
Note: n=414
Wherever mobile ads are seen, France’s mobile audience
is becoming more accustomed to them, and presumably,
more willing to receive them—or at least more resigned
to their presence. Mobile ads also appear to have a
definite influence on mobile web users. According to an
October 2012 survey by InMobi, more than three-quarters
(77%) of mobile internet users said they had downloaded
an app after seeing an ad, and 53% had been to an
advertiser’s website.
In addition, InMobi found that mobile advertising
served as a significant purchase driver. Some 40% of
respondents said they visited a store after seeing a
mobile ad in order to investigate or purchase a product,
and 30% said they bought an item directly from their
mobile phone. Such actions are one factor in a growing
trend for mobile buying. According to the Fédération
du E-commerce et de la Vente à Distance (FEVAD),
mcommerce sales in France (excluding app downloads)
were 2.6 times higher in Q4 2012 than in Q4 2011,
reaching 2% of total digital sales in the country for the
first time.
Mcommerce still has a long way to go in France, though,
as Amsellem pointed out: “I think marketers using mobile
advertising for lead generation and other actions is the
next step for us. Advertisers are going to pay for results,
and they want to be sure we are generating leads that
they can convert directly via mobile.That means that
ecommerce will be the next step. A couple of companies
are doing this, but I cannot say that it’s taken off.You can
buy event tickets, you can buy plane tickets, but at the
moment you cannot book a restaurant or order food on
mobile.You know, people are not doing it.”
MOBILEAD EXAMPLES
Many mobile campaigns, as Amsellem noted, actually
focus on apps.They use display ads as a prompt,
encouraging viewers to download an app and enter
into a longer-term dialog with a brand. Apps also enable
advertisers to measure engagement and solicit feedback,
all within a relatively secure environment where the
quality of the experience is assured.

Nestlé:Crunch cereal,‘A Short Film with Norman’
Created by the JWT agency in Paris, this Nestlé Crunch
campaign starred the young podcaster Norman, well
known in France for the videos he has posted on
YouTube—all shot in his room at home.
Crunch had used crowdsourcing before to help create ads
featuring Norman. In a previous campaign on its Facebook
page, Crunch sent him on a world tour. Once a week
for four weeks, brand fans were encouraged to vote on
where Norman should go next. So Norman traveled for
an entire month, posting videos from the four selected
destinations, as well as many others, and creating a
timeline of his journey.
This time around, Crunch invited fans to submit ideas
for what Norman should do in a short movie. Every idea
was passed to a jury (rumored to be Norman himself)
and then voted on by web users.The best ideas were
kept, and the web user responsible for the top entry
was invited to take part in shooting the film, destined for
launch on May 20, 2013.
Smartphone and tablet users could download an app to
take part in the vote for the best film idea.The app also
provided access to exclusive behind-the-scenes content
from the set during filming.
Bazarchic.com:Mobile loyalty through push alerts
Ecommerce site Bazarchic.com offers registered
members up to 70% off designer fashion brands in
limited-period sales. In November 2012, it decided to
revamp its mobile activity completely and develop a new
loyalty program. A new app allowed it to gather more
information about mobile users and alert them to their
favorite sales at their preferred times so that they never
missed a deal.
BMW i:Tailored invitations and priority sign-on
Digital ad agency Come&Stay worked with mobile
agency Bemobee to develop this campaign—an
extension of Apple’s Passbook. It allowed automaker
BMW to invite consumers interested in new technology
to its stand at exhibitions. If recipients opted in, the
invitation automatically appeared on their mobile screen
and remained there while they were near the stand,
encouraging them to visit. A QR code identified the
recipients, their location coordinates and the source of
their opt-in, enabling the system to issue a personalized
welcome and an exclusive presentation of BMW models.
Orange:LesApplis Days
During two weeks in October 2012, network operator
Orange mounted a campaign to raise awareness and
usage of its mobile apps in France. Mobile device owners
could scan a QR code to obtain a range of entertainment,
map and information applications.They could also take
part in an augmented-reality hunt for apps, with the
chance of winning a smartphone, tablet or PC.

GERMANY
THE MOBILEAUDIENCE
eMarketer predicts that more than 82% of the population
in Germany will use a mobile phone in 2013—nearly 67
million people in total. An estimated 42% of those users
will have smartphones—but that proportion is climbing
rapidly. In 2017, four out of five of all mobile users will use
a smartphone.
Smartphone Users and Penetration in Germany,
2011-2017
Smartphone users
(millions)
—% change
—% of mobile
phone users
—% of population
2011
15.8
151.2%
24.5%
19.3%
2012
21.6
37.4%
33.0%
26.6%
2013
28.0
29.6%
42.0%
34.6%
2014
35.4
26.2%
52.0%
43.7%
2015
44.8
26.6%
64.8%
55.4%
2016
51.0
13.8%
73.0%
63.1%
2017
56.4
10.6%
80.0%
69.9%
Note: individuals of any age who own at least one smartphone and use the
smartphone(s) at least once per month
Source: eMarketer, May 2013
At the end of 2012, the demographic profile of Germany’s
smartphone population showed a substantially younger
skew than the mobile population overall, according to
comScore’s “Future in Focus: Digitales Deutschland
2013” report. While 29% of mobile phone users were
55 and older, just 18% of smartphone users were in this
age bracket. Some 22% of smartphone users were 13- to
24-year-olds, while 21% were ages 25 to 34.
InMobi reported that between August and November
2012, mobile web users in Germany spent, on average,
107 minutes on a mobile phone and 18 minutes on
a tablet each day.The time spent on several mobile
activities had risen since the previous year.These included
social networking (up 22%), games and entertainment
(up 20%), email, general browsing and searching (all up
12%) and shopping (up 7%). As a result, the total time
spent with mobile devices exceeded that spent online
(95 minutes, on average).
Yet data from Bundesverband Digitale Wirtschaft
(BVDW), also from late 2012, showed that smartphone
owners in Germany were less engaged in many mobile
activities—including emails, app usage, mobile search
and mobile web use—compared with the European
average.This may be because mobile users in several
other countries, notably Italy and Spain, are more likely
to use a mobile device for internet access and are far
keener on such activities. Both these factors push up the
regional average.
As noted earlier, Germany has traditionally shown a
strong preference for the Android OS.Two-thirds of
smartphones in the country used Android in December
2012, according to Kantar Worldpanel ComTech. Apple’s
iOS had gained a slight share since the end of 2011, but
less than one-quarter of smartphones used it.
There’s no doubting the rate at which mobile device use
is escalating in Germany. Cisco Systems projected that
mobile data per user will multiply more than ninefold
between 2012 and 2017, as the number of smartphones in
Germany reaches an estimated 68 million and the number
of connected tablets rises to 13 million.
Mobile Data and Device Metrics in Germany,
2012 & 2017
Mobile data traffic
Consumer mobile data traffic (TB/month)
Business mobile data traffic (TB/month)
Total mobile data traffic (TB/month)
Mobile users (millions)
Mobile data traffic per user (MB/month)
Mobile devices
Smartphones (millions)
Connected tablets (millions)
Total mobile connected devices (millions)
Mobile connected devices per capita
Mobile data traffic per device
Smartphone data traffic per device (MB/month)
Tablet data traffic per device (MB/month)
Laptop data traffic per device (MB/month)
4G mobile broadband
4G connections (% of total mobile connections)
4G data traffic (% of total mobile data traffic)
2012
14,525
3,609
18,134
71.7
245
25
2
120
1.4
274
611
1,449
0.7%
6.5%
2017
157,238
32,647
189,885
74.5
2,245
68
13
188
2.2
1,458
3,222
2,842
20.5%
52.1%
Note: 1 terabyte=1 million megabytes; includes only devices connected to
the mobile network; excludes devices connected via Wi-Fi
Source: Cisco Systems, "Cisco Visual Networking Index (VNI): Global Mobile
Data Traffic Forecast Update, 2012-2017," Feb 5, 2013

In Germany, as in France, Wi-Fi is widespread except in
remote areas. High-speed network infrastructure was
completed across the country in November 2012, and
the three largest operators—O2, Vodafone and Deutsche
Telekom—currently offer 4G.That said, in early 2013, the
service was restricted to major cities such as Munich,
Berlin, Frankfurt, Cologne, Hanover, Kiel and Leipzig, and
the actual capacity of networks is variable. Achieving
comprehensive 4G coverage “will take years,” according
to one spokesperson. Nonetheless, Cisco Systems
anticipated 4G data traffic growing from 6.5% of all
mobile data traffic in 2012 to more than 52% by 2017.
MOBILEADVERTISING
In 2013, spending on mobile web ads in Germany will
rocket by more than 68%, eMarketer estimates, and
approach $350 million. Annual growth will remain above
40% until 2017, when total investment in mobile ads is
expected to reach $1.8 billion.
millions and % change
Mobile Internet Ad Spending in Germany, 2011-2017
2011
$112.4
73.7%
2012
$207.7
84.7%
2013
$349.1
68.1%
2014
$565.6
62.0%
2015
$878.8
55.4%
2016
$1,285.8
46.3%
2017
$1,800.1
40.0%
Mobile internet ad spending % change
Note: includes display (banners, video and rich media) and search;
excludes SMS, MMS and P2P messaging-based advertising; includes ad
spending on tablets; converted at the exchange rate of US$1=€0.78;
CAGR (2012-2017)=54.0%
The “MAC Mobile Report” from BVDW and Nielsen
forecast a similar rise for 2013—70%—based on the
remarkable increase in mobile device use in Germany.
This report suggested that ad spending on mobile
platforms would reach €105 million ($134.6 million),
compared with €62 million ($79.5 million) in 2012.
This estimate is based on monthly Nielsen reports of
gross mobile and in-app advertising sales of several
major marketers, including Axel Springer Media Impact,
InteractiveMedia, United Internet Media andYOC.
Nielsen alone released a slightly lower estimate of
€55.8 million ($71.5 million) for comparable mobile ad
spending in 2012.
Just as mobile ad spending in France bore little relation to
the amount of time consumers spent with mobile devices
in 2012, so too in Germany. BVDW estimated that adult
smartphone users went online with their phones for 2.5
hours each week, on average.The average time spent
online on a PC or laptop was 9.7 hours per week.Yet
advertisers invested only €121 million ($155.1 million) in
ad spending on mobile platforms, compared with the
€4.4 billion ($5.64 billion) devoted to internet ads. As a
result, advertisers spent around 10 times more to reach
web users with PCs than those with mobile devices.
Three industry sectors—automotive, telecoms and
services (such as travel and hotels, property, and
recreation)—accounted for almost half of all mobile
display ad sales by the leading firms BVDW monitored in
2012.The automotive industry was the heaviest investor,
spending €11.7 million ($15 million), or 18.9% of the total
spent.Telecoms companies spent €10.8 million
($13.8 million) and services €7.6 million ($9.7 million).
Other significant spenders included the media and
finance sectors.This is a common pattern in other
countries too, as large-scale, highly competitive
businesses spend heavily in all media channels in an
attempt to gain a competitive edge.

millions of €
Top 10 Industries in Germany, Ranked by Mobile Ad
Spending*, 2012
1. Automotive
€11.7
2. Telecom
€10.8
3. Services
€7.6
4. Media
€5.4
5. Miscellaneous advertising
€4.9
6. Finance
€4.6
7. Computer and ofﬁce
€4.1
8. Retail and mail order
€2.7
9. Energy
€1.6
10. Personal care
€1.5
Note: excludes self-advertising; *gross mobile and in-app ad sales of 9
leading marketers in Germany
Source: Bundesverband Digitale Wirtschaft (BVDW), "MAC Mobile - Report
2013/01," April 3, 2013
More than 81% of ad impressions served by InMobi in
Germany in August, September and October 2012 were
delivered to smartphones, according to its “Germany
Market Overview” report.Tablets accounted for less
than 17% of ads served. Around three-quarters of mobile
ads appeared in apps, and nearly 60% were seen on
Android devices.
% of total
Mobile Ad Impressions Served by InMobi in Germany,
by Type, Oct 2012
By device
Smartphones 81.1%
Tablets and connected devices 16.7%
Feature phones 2.2%
Web vs. app
App 73.0%
Web 27.0%
By OS
Android 58.4%
iOS 33.2%
RIM OS 3.6%
Note: 3 months ending Oct 2012
Source: InMobi, "Germany Market Overview," Dec 2012
Pelillo does see a preference for in-app ads among firms
he works with: “Taking the example of madvertise clients,
I would say that the split is probably 60/40 now between
apps and mobile sites.”
Advertisers’ preference for in-app vs. web ads is also in
line with data from comScore MobiLens, which indicated
that in late 2012, mobile phone users in Germany were
more likely to access news and weather information,
email and social media through apps than through a
mobile web browser. Search was the only frequent
activity carried out as often in a browser as through
an app.
In Germany, as in France, Facebook is beginning to play
a larger part in the mobile ad landscape. According to
mobilbranche.de, 14% of the $152 million spent on
mobile ads in Germany in Q3 2012 went directly to
Facebook’s newsfeeds.That was roughly equivalent to
the amount advertisers in Germany had spent on mobile
display ads during the previous five years.
MOBILEADS
Historically, consumers in Germany seem to have had a
lower tolerance for mobile ads than those in many other
markets. According to Millward Brown’s “AdReaction
2012” study, this is still the case, though acceptance of
ads on mobile devices is growing.
“In the past three years, the acceptance of mobile
formats among German consumers has grown rapidly.
We expect that the positive attitude to mobile marketing
will continue to increase strongly, as soon as marketing
decision-makers emphasize the quality of mobile content
and users in Germany become more accustomed to
mobile ad formats,” said Dr. Bernd Büchner, head of
Millward Brown for Germany, in an interview with
Marketing magazine in Switzerland.
Millward Brown found that 65% of those surveyed were
prepared to accept in-app ads, and 68% said the same
about ads on mobile sites. On the other hand, only 10%
of respondents viewed mobile ads positively.

November 2012 data from InMobi painted a more
encouraging picture—though of course, a mobile
advertising firm has an interest in portraying mobile
ads as effective.The company reported that 87% of
smartphone users polled in Germany had seen mobile
ads on their phone. Of those, 64% had observed an ad in
a mobile app, and 41% had seen one on a search engine.
One in five respondents reported seeing an ad on a video
site. Of all smartphone users who had viewed an ad, 34%
said they felt just as willing to receive one on a mobile
device as they were to see one onTV or the web.
InMobi also discovered that after seeing a mobile ad,
61% of mobile web users in Germany had downloaded
an app, and 45% had visited the website of an advertiser.
One in five said they had bought something via mobile
after seeing an ad, though they may not have bought the
item or service advertised.
The study also documented some attitudinal changes in
those who had seen mobile ads. More than half of those
polled said mobile ads had introduced them to something
new or helped them find something nearby.Thirty-seven
percent said a mobile ad had alerted them to a better
option, and 26% claimed that a mobile ad had caused
them to reconsider a product.
% of respondents
Effects of Mobile Ads According to Mobile Internet
Users in Germany, Nov 2012
Introduced you to something new
57%
Helped you find something nearby
56%
Provided you with better options
37%
Caused you to reconsider a product
26%
Influenced your in-store purchase
23%
Influenced you to buy via your mobile
15%
Source: InMobi, "Global Mobile Media Consumption" conducted by
Decision Fuel and On Device Research, Feb 27, 2013
Consumer reaction can depend on ad format, of course.
In Accenture’s 2012 “Mobile Web Watch Survey,” 35% of
consumers in Germany who had seen text ads said they
found them annoying.Yet 76% had a positive reaction to
promotions and discount offers sent to their phones.
The “Mediascope 2012” report compiled by BDVW in
collaboration with the Interactive Advertising Bureau
Europe (IAB Europe) also noted that 58% of Germany’s
smartphone users were very or somewhat interested in
receiving location-based vouchers on their phones, and
22% were interested in QR codes.
According to research by comScore, young adults were
more alert to mobile ads and offers than other consumers
in Germany. For example, 27.4% of smartphone users
ages 18 to 24 said they had clicked on an ad on a social
networking site in Q4 2012, compared with 15.2% of
all smartphone users over the age of 13. Similarly, the
former age group was more likely than the latter to have
seen an in-game ad, at 21.8% vs. 10.3%.
% of respondents in each group
Mobile Ad Activities Among Smartphone Users in
Germany, Ages 18-24 vs. Total, Dec 2012
Social media—have read reviews of companies/brands/events
43.5%
22.8%
Have seen a web-/app-based ad
30.3%
19.7%
Social media—have clicked on an ad
27.4%
15.2%
Social media—have received coupons/deals
24.0%
13.8%
Have scanned a barcode/QR code
23.1%
17.6%
Have seen in-game ads
21.8%
10.3%
Ages 18-24 Ages 13+
Note: three-month average for period ending Dec 2012
Source: comScore Inc., "2013 Future in Focus - Digitales Deutschland,"
March 14, 2013
There is clear evidence that combining mobile
advertising with ads on other platforms—such as
online orTV—is a winning strategy. In one study from
Online-Vermarkterkreis (OVK) cited by BVDW, both
aided and unaided recall following cross-media
campaigns were higher than recall after mobile-only or
online-only campaigns.

Mobile ads increasingly shape shopping behavior, too.
Nearly one-quarter (23%) of respondents to InMobi’s
survey said ads seen on a mobile device had the greatest
influence on their purchase decisions and as noted earlier,
23% said mobile ads had influenced their purchase in
a physical store. Moreover, buying directly via mobile is
catching on. Half of respondents polled by InMobi had
already bought something—most often digital goods
such as apps, music or video—with their mobile device,
and 58% planned to make a mobile purchase in the next
12 months.
MOBILEAD EXAMPLES
As in France, many advertisers in Germany use apps
as the focal point for mobile display campaigns.
Apps provide a completely designed environment for
consumers to learn more about brands, provide personal
data and offer feedback. Apps can also “anchor” a
campaign that involves other media, along with the real
world—as in the first case below.The second example
involved a mobile website rather than an app, but the goal
was very similar: using technology in an innovative way to
immerse mobile users in an intriguing experience.
Audi:A1‘Heartbeat Run’
Directed at a relatively young target audience, this 2013
mobile campaign from Razorfish used the call to action
“Time to start your first Audi.”The automaker hid a
total of five keys in the Rhein-Ruhr region and around
metropolitan Stuttgart. Each week for five weeks, a
“Heartbeat Run” was scheduled, with one key to be
found. All finders were entered into a final draw to win an
Audi A1.
Central to the campaign was an app presenting a virtual
heart and linked to a Facebook site.That site told users
when a race started and provided clues to the location of
that week’s key.The heart in the app began to beat when
a mobile user first joined the Heartbeat Run, and—thanks
to integrated GPS—beat faster the nearer the hunter got
to a hidden key. Contestants could download the app via
a Shazam icon in an Audi A1TV ad posted onYouTube or
enter the competition by visiting a dedicated microsite.
Nokia:Lumia 800‘MysteryAd’
Created byYOC and Carat, the “Mystery Ad” rich
media execution won the Gold Award at the 2012
Cannes Mobile Lions.The ad targeted iOS and Android
devices in Germany. Mobile web users browsing on
such devices found themselves suddenly looking at
the Windows Phone interface of the Nokia Lumia 800.
Those who clicked on the ad were taken to a landing
page that delivered a high-quality, user-friendly
experience—including a slideshow of Lumia 800
features, an embedded video and descriptions of the
phone’s features.The ad was praised for its concept—
showing iOS and Android users a very different OS—as
well as its “state-of-the-art” rich media and its precise
targeting, which reached the audiences of most
importance to Nokia. Initial results were extremely good,
with a CTR of 29.7%.

CONCLUSIONS
The mobile ad markets in France and Germany are
still at a fairly early stage of evolution, but they’re
developing rapidly. In both countries, global brands
are at the forefront of spending and thinking about what
mobile advertising can do, and how best to integrate it
with efforts in other marketing channels. But companies
of all sizes will soon benefit from the knowledge gained
by these early pioneers. Advertisers will also learn from
a growing body of consumer data, as mobile device
users become more sophisticated in their response to
mobile ads and research firms work harder to monitor
that behavior.
Standardizing ad formats and technologies will
reassure advertisers that mobile is a viable marketing
platform that can yield substantial ROI in France and
Germany.This is already happening to some extent,
particularly in the UK, but more needs to be done across
the region. One initiative, the AdEx Benchmark Mobile
Working Group, with the help of the IAB Europe, aims to
monitor the current mobile marketplace, identify trends in
mobile advertising, and “establish what is desirable and
practical for mobile ad measurement.”
Some national industry bodies have their own programs,
too. Earlier this year, Germany’s BVDW launched a “Do
Mobile!” scheme to address the need. Key industry
players, including the Deutsche Post and Google
Germany, are joining with the mobile division of BVDW
to demonstrate the value of mobile and offer concrete
practical tips and recommendations about which types
of mobile solutions are suitable for specific companies.
Ventures of this kind should persuade more brands in
France and Germany to take the mobile plunge.
At madvertise, “the writing is on the wall,” according
to Pelillo and Wittig. “We see two trends coming.The
first is measurability, and the second is tracking.There
will be a need to track everything that happens in terms
of engagement post-download.That’s really what will
cause major dollars to flow in the mobile market. Clearly,
when the market is more standardized, more targetable,
advertisers will be more likely to invest more of their
money and measure their ROI,” said Pelillo.
The emerging relationship between mobile device
usage and commerce in France and Germany will
strengthen connections between mobile operators,
advertisers, retailers and consumers. Recipients of
mobile ads generally respond well to relevant information
about new products or useful promotional offers. And
several advertisers in Europe, including a number of
major retail groups, are already using mobile platforms to
drive customers to physical stores or encouraging mobile
buying with user-friendly apps, mobile-optimized websites
and mobile coupon schemes. But because the initiative
lies chiefly with individual firms, large-scale advances in
mcommerce are likely to happen piecemeal—at least in
the short term.

EMARKETER INTERVIEWS
Marketing in France: Advertisers Eye More
Mobile Advertising
Paul Amsellem
CEO
Mobile Network Group/Bemobee
Interview conducted on April 22, 2013
Marketing in Germany: A Brand- and
Premium-Oriented Mobile Marketplace
Vincent Pelillo
COO
madvertise
Christof Wittig
CEO
madvertise
RELATED LINKS
Accenture
Adobe
Bemobee
BMW Deutschland
Bundesverband DigitaleWirtschaft (BVDW)
Capgemini
Cisco Systems
comScore
Fédération du E-commerce et de la vente à Distance
(FEVAD)
FirstPartner
Ifop
InMobi
Interactive Advertising Bureau Europe (IAB Europe)
Ipsos
KantarWorldpanel
madvertise
Médiamétrie
Millward Brown
Mojiva
Nielsen
Nokia
Office of Communications (Ofcom) - UK
Online-Vermarkterkreis (OVK)
Orange
Pew Research Center
Procter & Gamble
Rovi Corporation
Rubicon Project
Velti
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Cliff Annicelli Senior Editor
Kaitlin Carlin Copy Editor
Joanne DiCamillo Senior Production Artist
Stephanie Gehrsitz Senior Production Artist
Dana Hill Director of Production
Nicole Perrin Associate Editorial Director
Heather Price Copy Editor
Allie Smith Director of Charts

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