Mobile vs. fixed advertising IDATE Insight Soichi NAKAJIMAInternet Services Lead Analyst, IDATE 20 November 2014

1. Narrowing the gap between explosive usage and limited ad revenues
Mobile vs. fixed advertising
IDATE Insight
Soichi NAKAJIMA
Internet Services Lead Analyst, IDATE
20 November 2014

2. The key takeaways from my presentation today…
Mobile advertising market has grown and still growing
Some IDATE figures to show you the trend
Same players dominate fixed & mobile… but different market shares
Google has a bigger competitor in mobile
Mobile advertising is an extension of fixed
Most mobile advertising a re-hash of fixed technologies
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3. 11. Mobile advertising market grew and growing
Global mobile advertising revenues and their share of total online advertising revenues
5% 6%
2
8%
4 5
11%
13%
15%
17% 18%
20%
8 12 17 21 27 32
30
20
10
Global mobile advertising annual ARPU, 2010-2018 (EUR)*
8
6
4
2
*Calculated by dividing annual
revenue by average number of
mobile Internet users per year
Market in 2018:
32 billion EUR
=
20% of total online
CAGR 2014/2018
27.3%
ad market
ARPU in 2018
8.5 EUR / year
=
6.4% of all media
advertising market
0
2010 '11 '12 '13 '14 '15 '16 '17 '18
25%
20%
15%
10%
5%
0%
0
2010 '11 '12 '13 '14 '15 '16 '17 '18
Mobile Advertising revenues
Share of mobile advertising revenues in online ad revenues
Source: IDATE, State of online advertising worldwide, July 2014

4.  Same players dominate fixed & mobile… but have different shares
Baidu 5% Microsoft 3%
Google 49% Others 32%
Source: IDATE, State of online advertising worldwide, July 2014
Google 45%
Facebook 28%
Others 18%
Player shares of MOBILE advertising revenue, in 2013
Source: IDATE, State of online advertising worldwide, July 2014
Google dominant in fixed
ad market
Google also dominant in
MOBILE ad market
In both fixed and mobile,
Facebook is 2nd
But much closer to Google
in mobile advertising
Player shares of ONLINE advertising revenue, in 2013
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Facebook 7% Yahoo! 4%
Twitter 1%
Baidu 7%
Twitter 2%

5. 3. Mobile advertising as an extension of fixed
80% of mobile ad market a rehash of fixed technologies
 Explains why Google was able to transfer fixed dominance smoothly
Uniquely “mobile” apps” account for 20%
 Many in-app ads promote their own in-app purchases (e.g. games)
Current market breakdown between search and display advertising, comparing fixed and mobile
Source: IDATE, State of online advertising worldwide, July 2014
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Share expected to decrease
over time as the popularity of
the mobile Web increases

6. So, IDATE concludes…
The mobile advertising market has grown and growing
> 2018: 32 billion EUR market, 20% of all online ads
Mobile advertising dominated by certain players
> A two-way tussle between Google and Facebook
Mobile advertising is an extension of fixed
> 80% of mobile ad market is a rehash of fixed;
> 20% mobile only applications
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