MADVERTISE MOBILE NETWORK INSIGHTS

Q4.2012

Social and MeSSaging doMinate

Rich Media adS booSt peRfoRMance
MADVERTISE & O2

GLOBAL APP MARKET

fRee vS. paid

IPHONE AND IPAD APPS

2 INTRO

Q4.2012

MADPLUS 3

Dear mobile fans,

In this madReport edition wed like to introduce our new madPlus technology. Well also be showcasing a brand new Advertising Effectiveness Study conducted with o2 the first of its kind in Europe. This Rich Media study provides solid evidence of mobile advertising success in corporate communication strategies.

adPlus
ThE nEW CuTTIng-EdgE TEChnOlOgy

Welcome to the 6th edition of our madreport. As always we have some interesting topics and research to share with you. 2012 has been an exciting year for both madvertise and the mobile industry. This year we acquired the Turkish market leader Mobilike and also launched our in-house built madPlus technology, meanwhile mobile spending is on the rise and the madvertise growth story continues.

Once again weve teamed up with AppZapp, the App bargain guide for the App Store to bring you an analysis of free and paid shares within the different App categories. Weve also collaborated with Xyo to showcase a detailed study of Android and iPhone app download numbers and popular categories throughout 2012. So without further ado, enjoy reading and all the best,

madvertise launches madPlus!

New cutting-edge technology optimises mobile ad campaigns & introduces mobile real-time bidding

Carsten Frien CEO und Co-Founder madvertise

Content

madPlus combines a number of different components; one of them being madPlus Trading, a tool that provides media agencies with direct access to the madPlus technology and empowering them to independently plan their campaigns, reach and budget.

With madPlus we are launching a technology platform that puts us in the position to further optimize the performance and return on investment from mobile campaigns for our media agencies and advertising clients.

madreport Q4.2012

Opportunities
madPlus offers targeting capabilities beyond established geo-targeting and device targeting. Media agencies and the advertising industry now have access to extended audience targeting opportunities, selecting predefined audiences (eg. shopping mums or globetrotters) to whom their campaigns will be delivered. Better targeting results in a further reduction of ad wastage.

Real Time Bidding

madPlus also comes with a mobile Real-Time Bidding (RTB) offering. madvertise is one of the first mobile ad firms to implement this technology. With RTB, mobile advertising space can be auctioned in real-time, leading to better purchasing conditions for media agencies and their clients.

03

madvertise

madPlus Launch!
Boost performance with

04 08

global App Market

App Categories in Europe

iPhone & iPad

06 Rich Media Ads!

Feel free to let us know

Free vs. Paid Apps

what you think!

4 APPS

Q4.2012

APPS 5

global App Market

Social Networking and Messaging Categories Dominate in Europe

madvertise and xyo team up to analyse the global app market. Total of 790 million Android & iPhone apps downloaded by September. UK is Europes biggest app market.
madvertise and xyo have once again taken on the challenge of analysing the fast-changing and ever growing global market of apps for the iOS and Android platforms. And it makes for some very interesting reading Unbelievably, the total number of Android and iOS downloads in EU5 reached 790 million in September - an increase of 43% since January but a little less than in July where there were 809 million downloads. Thats over double the population of America! The share of iOS apps being downloaded fell from 53% in January to under 30% in September. Monthly Android app downloads doubled in all key demographics between January and September 2012. During the same time span, iOS app downloads dropped by 20%. The much talked about rise from the ashes of Android seems to be continuing. In Q3 2012, the Samsung SIII, Androids number one smartphone, outsold the new iOS 5. The UK remains Europes biggest app economy at 277 million monthly downloaded apps (207 million Android apps and 70 million iOS apps) and more than 4 monthly app downloads per capita in September 2012. Germany is second at 168 million apps (122 Android and 46 million iOS) - thats 2 monthly app downloads per capita. Spain follows at 2.6 apps per capita a month with 93 million Android and 27 million iOS apps downloaded. The top 10 lists across all EU5 countries feature fewer games and lean towards communication tools like WhatsApp or Viber and social networking apps, most prominently Facebook. Source: www.xyo.net Android is leading in all the EU5 countries. The share of Android apps compared to iOS is highest in Spain (78%) and lowest in France where 59% of all download apps in September were Android apps.

uK App Market

uK App Market

Android
Tools for communication proved successful with three messengers leading the charts in September: Facebook Messenger, WhatsApp and Viber. Free apps rule on Android all of the 10 most downloaded apps were free. Only one game made the top 10: SpeedCar, representing the current racing game trend on mobile.

iOS
It seems the Brits love being social. The Social Networking category gains in popularity. Compared to July, the number of games in the iPhone top 10 went down from 8 to 4. In September. Games were replaced by social networking and photography apps. The freemium trend continues: All top ten apps were free or free with in-app purchase apps in September.

uK

uK

Android Top 10 categories

iOS Top 10 categories

Communications Media & Video

Games Social Other

Games

Social

Photography

Lifestyle

Eu5

App Download Development

01/2012

53%
30%
iOS

47%

552 m

09/2012

70%
Android

790 m

6 RICH MEDIA ADVERTISING EFFECTIVENESS STUDY

Q4.2012

COMPANY 7

madvertise & O2

INTENTION TO BUY
39%

First Ever Mobile Rich Media Advertising Effectiveness Study

madvertise has once again collaborated with Interrogare to conduct a first-of-its-kind advertising effectiveness study.

51%
The rich media campaign pushed intention to buy by 30 percent. IMPROVED BRAND IMAGE INCREASED AD RECOGNITION

The study provides impressive insights into the success of rich media campaigns rich media, interactive ads, motion picture & non-standard banner formats, and shows significant increase in ad recognition, brand image and purchase intent through the use of mobile rich media. Telco operator O2 ran the campaign alongside the launch of the Samsung Galaxy SIII to promote the launch of a new tariff having integrated the mobile communication channel in their cross-media advertising strategy. The campaign was realized by Zenith for O2.

This rich media advertising impact study, the first of its kind in the UK, shows that branding campaigns in the mobile advertising channel are highly effective and should be included in any balanced media mix. The increasing amount of high quality content available, along with positive advertising environments on mobile devices, are ideal for cross-media branding campaigns. In addition, the survey results show that users interact with mobile rich media advertising up to seven times more effectively than with traditional banner ads.

Results
Following a control group survey before the campaign began, the study examines the effects on mobile ad recognition, brand image and consumer acceptance of new products. The results show positive effects across all areas, concluding a 130% increase in ad recognition, a 16% improvement in brand image and a staggering 30% increase in purchase intention.

37%

37%

43%

The client

17%
BEFORE AFTER
Source: www.madvertise.com

Significant increase of ad recognition by 130 percent after the campaign.

The positive perception of the O2 brand was improved by 16 percent.

We are very pleased with the results of the advertising impact study led by madvertise, said Tino Krause, Head of Media CRM & Direct Communication, O2 Germany. On the one hand its evidence that we should continue with mobile as the right advertising platform, as well as confirming the leading position of O2 in Germany. Innovative mobile advertising formats will continue to be a big part in our communication play.

8 FREE VS PAID

Q4.2012

FREE VS PAID 9

Which App Categories Offer the Most Freebies?

Free vs. Paid Apps for iPhone & iPad

For some of us, the thought of paying for an app is an absolute no, no. With the amount of freebies on offer, why would you?
Others like to pay for a better experience or may have been convinced after hearing good things from friends or family.Either way, its good to know which iPhone and iPad app categories have the most free or paid apps available enter madvertise and AppZapp, the app bargain guide for the App Store, who have collaborated once again to bring you an analytical comparison of the difference in free versus paid apps across all iPhone and iPad app categories. In doing so, weve managed to uncover some pretty cool findings: According to AppZapp, there is more than THREE TIMES the amount of iPhone apps available than on the iPad. Over 100 MILLION iPads have been sold 1) to date, with iPhone sales coming in at 260 MILLION 2). These figures in particular make for interesting reading - in total the iPad actually has a higher percentage of paid apps. In the UK out of a staggering 532,798 apps in total, 281,223 are free and 251,575 are paid A recent study from ComScore 3) confirms the above when it comes to iPad owners having to shell out more often for their apps. The study revealed iPad owners are both younger and wealthier than average tablet users, meaning theyre a perfect target audience for developers who charge for their apps. It also discovered that one of the key purchasing factor for many consumers when it comes to tablets isnt just the retail price, its the pricing and selection of apps too. So, do we think there are many iPad users who would be shocked by having to pay 4.99 for a navigation app? It happens to be quite the contrary actually. These figures from AppZapp further conclude research in to the behaviour and buying patterns of iPad users, and show that despite slightly less sales, the iPad app economy is progressively booming

iPhone offers more free apps

Paid apps break through halfway mark on iPad

53% 47%
FREE PAID
Feel free to let us know

51% 49%
PAID FREE

Across EU5 (UK, Germany, France, Italy, Spain) and Turkey, just 47% of ALL iPhone apps on offer are paid, meaning users stand a better chance of grabbing some great apps for free. It seems the iPad is definitely a platform that could cost you more long terms - numbers break through the halfway mark with 51% of ALL iPad apps needing you to dig deep for.

what you think!

Source www.AppZapp.net

iPhone
Source: AppZapp

iPad

1) http://en.wikipedia.org/wiki/Ipad 2) http://en.wikipedia.org/wiki/IPhone 3) http://www.padgadget.com/2012/08/07/new-study-finds-ipad-owners-are-younger-and-richer-than-their-android-peers/

25

MOBILE-EVENTS
12. December 2012 III Congreso de Marketing Mvil

Madrid

5. 6. February 2013

25. - 28. February 2013

24. - 25. April 2013

m-days
Frankfurt

Mobile World Congress

Barcelona
(Hall 8.1, Booth C15)

OMExpo
Madrid

cover: photocase.com

madvertise Mobile Advertising GmbH Paul-Lincke-Ufer 39-40, 10999 Berlin, Germany

www.madvertise.com