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

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  1. 1. James Hilton CEO | james@mcsaatchimobile.com
  2. 2. Welcome toM&C SaatchiMobileThe worlds largest specialist mobilemarketing agencyAccess to M&C Saatchis full strategicresourcesOver 80 full-time mobile expertsMulti-award winning
  3. 3. Localknowledge& a uniqueglobal reach
  4. 4. Our core mobile offering Strategy Mobile advertising production
  5. 5. agendaIntroduction overview of the marketTRENDS1.Smartphone penetration is slowing in established markets while emerging markets are on the rise2.The platform shift3.Mobile ad spend to skyrocket in 20134.The year of the tablet5.Mobile retail to explode6.The evolution of the ad network, DSPs & RTB7.4g to accelerate the rich media ad space8.The rise of social and facebook on mobile9.Apps vs. mobile web10.The market is constantly changing
  6. 6. The future of digital
  7. 7. The medium is now 20years old.
  8. 8. So, how doesthe market look?
  9. 9. 2+ billion people online Global internet population (millions)Source: Interna-onal Communica-on Union. Google
  10. 10. 2/3 of the world left to go Global internet population(millions)Source: Interna-onal Communica-on Union. Google
  11. 11. HOWEVER
  12. 12. Most of the affluent community are already online Distribution of global incomeSource: UN Human Development Report, Trends In Global Income Distribu-on
  13. 13. So the markets moremature than you think.Meanwhile, somethingprofound happened lastyear
  14. 14. PC growth started to slow Global PC shipments by manufacturerSource: Gartner. IDC
  15. 15. Smartphone sales grew past pc sales Global internet device salesUnitsSource: Gartner. IDC. Strategy Analy-cs, company llings. BI Intelligence es-mates
  16. 16. Tablets are starting to take over Global computer shipments(thousands)Source: Gartner. IDC. Strategy Analy-cs company releases
  17. 17. So the future is mobile G-20 internet access ConsumerBroadbandConnections (millions)Source: Boston Consul-ng Group, Mary Meeker, Kleiner Perkins, Morgan Stanley Research, Berg Insight
  18. 18. Where are we in themobile revolution?& what are the essentialsyou need to know?
  19. 19. Trend 1.Smartphone penetration isslowing in established marketswhile emerging markets areon the rise
  20. 20. Globally, were still early Global smartphones vs. mobile phone users 2012 Global Users (millions)Source: Strategy Analy-cs, interna-onal Telecommunica-ons Union. Note: Some users own more than one device
  21. 21. But growth tends toslow after 50%penetration
  22. 22. US & other markets are past halfway US smartphone penetrationSource: Nielsen
  23. 23. Most mature markets are now over 50% France 51.4% Germany48.4% Italy51.2% Spain63.2% UK 62.3%Source: Comscore: October 2012 MobiLens report
  24. 24. smartphone growth is slowing US smartphone Market: year over year net addsUsersAdded (million)Source: comScore. Nielsen
  25. 25. Most future US & UK smartphone buyers will be older & less affluent Smartphone penetration by age & incomeSource: Nielsen
  26. 26. the focus is now on markets like china who now account for 25% of sales Global smartphone shipments(thousands)Source: Gartner. IDC. Strategy Analy-cs, Canalys, BII es-mates
  27. 27. developing markets such asbrazil, Russia, Indonesia andChina will drive much of thevolume of growth in 2013.They will generate 70-80%of additional shipments this year 38% of the global total.Source: Canalys
  28. 28. Trend 2.The platform shift
  29. 29. Right now, mobile is a two-horse race Global mobile OS market breakdownSource: Gartner. IDC. Strategy Analy-cs. BII Intelligence es-mates, and company llings
  30. 30. Android is the largest platform globally Smartphone Market Share by OS (global) Share ofGlobal Unit SalesSource: Gartner
  31. 31. Partly because of high adoption in china Chinese smartphone market share by platformSource: Analysys Interna-onal
  32. 32. And its 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 lings
  33. 33. However Apple is still dominating app revenue Mobile app revenue by platform (millions)Source: iSuppli. Forrester Research. Company releases. BII es-mates
  34. 34. And ecommerce & web trafficSource: Monetate
  35. 35. What will happen in 20131. Android is on the offensive and will be picking offindividual territories2. Google says its activating 1.3M devices a day3. By the end of 2013 Google shipments of android devicesshould pass 1 Billion4. android will account for up to 70% of devices shipped
  36. 36. Trend 3.Mobile ad spend toSkyrocket in 2013
  37. 37. The global mobile advertising market was worth $6.43B in 2012 its forecasted to hit $23B by 2016Source: Berg Insight
  38. 38. In the UK mobile advertisinggrew by 120% during 2012.growth on 2013 is estimatedat 56%Source: Flurry Analy-cs
  39. 39. However Mobile Is still the highestunder indexing channelAd spend vs. consumer time spent by media (2012)
  40. 40. What has been holdingmobile back & why is itnot going to anymore?
  41. 41. The belief that the audienceis too fragmented to bereached effectivelyWE can now directly target consumers more accurately thanever before:agelocation past locationconnection handsetdevicecontent consumed language
  42. 42. The belief thatData And trackingis elusiveSophisticated tracking is now up to 99% accurateWe can track beyond the download deposits, purchase,usage etc.DSPs and RTB changing the landscape
  43. 43. The small screenConstrainingCreative sizes
  44. 44. 360 imagery
  45. 45. Locationservices,mapsAnd gps
  46. 46. video
  47. 47. Trend 4.The year of the tablet
  48. 48. ios has dominatedthe mid to highend tier of thelandscape
  49. 49. Android is nowgaining marketshare withmultipletablets
  50. 50. Windows is notyet out ofthe running
  51. 51. The 7 inch isreaching a newtablet market andbecoming a moregenuinely mobiledevice than thanits larger cousin
  52. 52. Who is going to use the tablets? Device users plan to use as primary source of news & entertainment in 2013Source: Belkin Survey conducted by Harris Interac-ve, Jan 16, 2013
  53. 53. Ourpredictionsandroid will continue to take market share from APPLEWindows to stay a marginal playerThere will be more smartphone / tablet hybrid releasesThis year will be the year of the 7 inch
  54. 54. Trend 5.Mobile retail to explode
  55. 55. Almost of all smartphone owners have purchased via their device In the last 12 monthsSource: Mintels Smartphone Purchasing Habits report from Nov.2012 (UK only)
  56. 56. Purchases via a smartphone internet users aged 16+ who personally own a smartphoneSource: GMI/Mintel
  57. 57. 47% of consumers use their smartphone to search for local information such as a store they want to visitSource: Local and the e-tailing group, 2012
  58. 58. 46% look up a stores mobile site & 42% check inventory prior to visiting a storeSource: Local and the e-tailing group, 2012
  59. 59. Tablet shoppershave a higherpropensity topurchase on thedevice
  60. 60. What you need to consider?Tablet customers are worth more to brandsKnow your brands mobile touch points then research,prioritize & start testingEnsure you are mobile optimizedDevelop a multichannel acquisition strategy on mobileInclude mobile search and local in your mobile strategy
  61. 61. Trend 6.The evolution of the ad network,The rise of demand side platforms,& the arrival of Real time bidding
  62. 62. The way brands and agenciesbuy mobile inventory ischangingWere taking control of thebuying process
  63. 63. ad networks are changingTraditional networks (inMobi,Millenial, Adfonic) are changingtheir service offering to becomemore sophisticatedOr being bought by larger telcos(AdMob / google, Quattro / Apple)which ads more precision to theirdata
  64. 64. How?Bidding directly on inventory via exchangesDeveloping new tools that let buyers targetconsumers more accuratelyDeveloping their own bidder or using white labeledDSPs
  65. 65. Now, a new orthodoxyIs emerging based ondemand side platforms
  66. 66. What is a demand side platform?DSP Enables advertisers / agencies tobuy ads and target consumers in real timeIdentifyServe adDSP locates consumer Place bid based on themtype value
  67. 67. DSP for mobileLack of cookies has forced DSPs to come up withalternative methods for delivering critical dataIf an advertiser chooses to increase downloads of aparticular app the DSP:LearnsCreates Auto adjusts Maximizespatterns ofprofile ofbidding downloadstraffic traffic typestrategyAll refined in real time
  68. 68. The old system ofbidding on blind inventory willbecome outmoded & inefficient
  69. 69. What will real time biddingbring to mobile?A system in which data on the bids, available inventory & thebehaviour of consumers is crunched in real timeInstantaneous bids for each impression based on data &smart algorithms that change constantly in response toaudience changesTransparency
  70. 70. How will this effect marketers?The mobile DSP will transform the efficiency & effectiveness ofbuying mobile inventory.RTB can improve ad effectiveness by 20-150%*More & more agencies will have their own DSPOnly knowledgeable specialists can handle these transactionssuccessfully*Source: ICD
  71. 71. Trend 7.4g will accelerate the rich mediaspace, but not that fast
  72. 72. It has been nearly a decadesince the first 3g networkswere launched
  73. 73. Now were seeingthat excitementagain withLTE or 4g
  74. 74. Everyth
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