AOP Mobile Insights by Tim Cain for Incisive Create

1. Incisive Mobile Strategies Breakfast Briefing
November 2012

2. AOP In Summary
The Voice of Premium Digital Publishers
AOP represents digital publishing companies that create
original, branded, quality content
Improving the way digital publishers run and develop their businesses
Facilitating the share of knowledge and cross-fertilisation of ideas
Core Activities
Market leading events
Professional research & benchmarking
Unmatched networking

3. AOP Board Members

4. AOP B2B Members

5. Observations
on the growing importance
of mobile

6. Mobile trajectory

7. Mobile internet
In the UK 16% of web traffic is from mobile devices

8. Mobile extending the day

9. Mobile consumption -Did you know
• Google is activating 1.3m Android devices a day
• Each new version of the iPhone sells as much as
all previous versions combined
• Time spent using mobile (incl internet) has more than doubled in the
last two years
• Tablet users on average spent 30% more time on-site and had a 20%
higher engagement score than PC users
• Smartphones influence 6% of UK in-store purchases

10. Mobile Advertising
Worldwide, mobile ad spending should hit
$6.4 billion this year

11. UK Mobile ads 2012
7% digital ad spend now
Forecast £1.6bn 2016
£181.5m
Search
73%
Display
27%
+132% +152%
H1 2012 H1 2012 +91%
H1 2012

12. Mobile ads – higher CTR greater engagement
Rich media CTR 3x
Mobile CTR 3-5x vs desktop web
55% of digital magazine readers engaged
Half interacted with the ad
38% touched/clicked ad to expand it
34% viewed multiple pages of a multi-page ad
34% accessed a Web site through the ad
31% watched a video or commercial
30% viewed a gallery
30% downloaded an app.

13. How well are we equipped?
40%
6 out of 15

14. And it’s 42 days till Christmas!

15. The Publishers view
74% agree
Future focus will be increasingly on developing mobile sites
and apps and tablets and apps than traditional desktop sites
for internet

16. 62%
majority of sites optimised for mobile

17. Opportunities for next 12 months
iPad/other
tablets 90%
Mobile internet
85%
Apps/digital
editions for… 81%
Apps for
smartphones 76%
Mobile ads
73%
0%
20%
40%
60%
80%
100%

18. Top Mobile Business Priorities for 2012
Grow Revenues 65%
Deepen Engagement with Existing Users 24%
Growth Priorities
Reach New Mobile Users 9%
57% Advertising
Streamline Integrations and Reporting 0% 40% Paid content/subs
0% 10% 20% 30% 40% 50% 60% 70%

19. Mobile traffic and Mobile revenue
mobile traffic
3%
10% 55%
32%
87% 26% 6%
0%
1-5%
6-10%
11-20%
3%
mobile revenue 65%
3%
29%
26% 3%
0% 21-30%
31-50%
0% 20% 40% 60% 80% 100%

20. Mobile revenue types
70%
68% 68%
60% 55%
52%
50%
40%
39%
32%
30% 26% 26% 26%
20% 16%
10%
10%
0%

21. Most significant models of next 12 months
40%
35%
30%
25% 39%
20%
15%
29%
10%
5%
23%
0%
unique mobile ad formats
in-app purchase
in-app ads

22. Main issues affecting mobile development
Device Fragmentation (Smartphones, Tablets, 72%
Feature phones)
In-house skills and resource 56%
Integrating Mobile with Current Sales Effort 47%
Managing Multiple Tech Partners (Ad Serving, 44%
Yield Management, Ad Networks, etc)
Developing responsive design 41%
0% 10% 20% 30% 40% 50% 60% 70% 80%

23. The main inhibitors to mobile advertising
agencies attitude towards or focus on 55% Mobile
mobile 52% Tablet
dependency on low yield ad networks
52%
10%
sales skills in-house
38%
31%
creation of interactive ads
34%
17%
size of audience
31%
52%
formats & reporting
28%
28%
0% 10% 20% 30% 40% 50% 60%

24. AOP Mobile initiative
focus on key issues that will
encourage growth of mobile advertising
on premium content sites

25. Thanks
Tim Cain
@ukaop
@timrcain