Vietnam Mobile App Advertising & Monetization Report (Q3-2017)

Q3 2017
REPORT
An Advertising Company Under Appota Group
Vietnam Mobile App Advertising & Monetization

Mobile App Market:
Overview01
Mobile Ads &
App Monetization Insight02
Highlight:
App Development,
Monetization Trends
and Opportunities
03
Summary
In the third quarter of 2017, major trends in the global and Vietnam
mobile market converge in some interesting dimensions:
Operating System: Android continued to dominate the playing ﬁeld
App Stores: Google Play is where users download, but Apple App Store is where
they pay.
Web vs. Apps: Mobile apps command more consumer attention and ads spending.
Monetization shifting : more ads and subscription, less paid download; video and
native ads on the rise
Globalization in mobile industry: choosing reachable market and suitable
monetization models are key success factors.
Let’s get into details:

1
Mobile App Market Landscape
Overview

Source: App Annie, AppBrain, Statista | Oct 2017
Note: Percentage of total app number
3.9M+ Apps
1M+ Publishers
2.2M+ Apps
500K+ Publishers
25%
8% 6% 8% 10%
3% 5%
Game Education Entertainment Lifestyle Business
Music
& Audio
Tools,
Utilities Others
18%
8%7%7%7%6%5%
GameEducationEntertainmentLifestyleBusinessMusic
& Audio
Tools,
Utilities
Others

Source: App Annie, ComScore | Q3 2017
Time Spending
0
100
200
300
Q3 2016 Q3 2017
Global Time Spent in Mobile Apps
*Android phone total time, excluding China
+ 40%
Hours
(in Billions)
Global Mobile Share of Total Digital Minutes, By Activities
0%
20%
40%
60%
80%
100%
Instant Messengers Social Media Games Retail Travel Banking
• 3rd quarter of 2017
experienced a global
increase of 40% in
time spent in Android
phone, reaching 300
billion hours.
• Instant Messenger
and Social Media
were mostly accessed
via mobile rather
than other devices by
people around the
world.

Source: StartCounter, Facebook | Q3 2017
Note: Based on each operating system’s share of all global mobile web requests.
Mobile Operating System Market Share
63%
32%
GL BAL
VIE NAM
73% 20% Others: 7%
5% Others
GL BAL
73% 20% Others: 7%
VIE NAM
63%
32% 5% Others

Source: Appota, GSO Vietnam, VNTA,
Google, We are social | 2017
Vietnam Digital Snapshot
Population Internet Users
Internet SpeedSmartphone Devices
94M 53M 54%
6.2 Mbps43.2M
Social Network Users
46M 48%
*Percentage of total population
* *

Source: Nielsen | Q4 2017
Vietnam Smartphone Penetration
78% 84%
2016 2017
Key Cities
62% 71%
2016 2017
Secondary Cities
68%
2017
Rural
Note: Smartphone users / Total mobile phone users
• In key cities like Hanoi, Ho Chi
Minh, Da Nang, 84% of those
using mobile phone are
smartphone users.
• In secondary cities, smartphone
users also captured a big share
(71%) of total people who use
mobile phone, in comparison
with 62% in 2016.
• Smartphone usage in rural area
reach up to nearly 70%.

Source: Google | 2017
* Monthly Average per User
** Among monthly new apps installed
Mobile Apps Downloads & Installs in Vietnam
New Apps
Installed*
0% 20% 40% 60% 80%
Shopping & M-commerce
Education
News & Weather
Books, Comics, Magazine
Search
Music & Audio
Media & Entertainment
Messaging, Communication
Social
Game
Apps Installed,by Categories **
• In average,
Vietnamese
smartphone users
install 5 new apps per
month, making
Vietnam the highest
of APAC market.
• Game, social and
messaging &
communication are
installed the most.

* Average apps of Vietnamese smartphone users
** Percentage of apps used by Vietnamese smartphone users
Apps of Vietnamese Smartphone Users
51.5%
48.5%
Pre-Installed
Self-Installed
33
0% 5% 10% 15% 20% 25% 30%
Never used
Stopped using
Occasionally
Regularly
Daily
Percentage of Apps, by Usage Frequency **
Apps *
• In average,
Vietnamese users
have about 33 apps
in their smartphone,
including 17 pre-
installed apps and 16
apps installed by
themselves.
• Among 33 apps
mentioned above, 8
apps are used daily,
and 5 are never used.

Source: Applyzer | Sep 2017
Note: Percentage, among top 1M+ grossing apps in Vietnam
Top Grossing Apps in Vietnam, by Categories
- In Vietnam, Game is the most proﬁtable category with the biggest number of grossing apps.
- Education and Tools types of app are promising investment for publishers in Vietnam on both Android and
iOS platform. Photography is a signiﬁcant money-making opportunity for mobile publishers on iOS.
0%20%40%60%80%100%
Media & Video
Social
Tools
Education
Game
0% 20% 40% 60% 80% 100%
Productivity
Education
Tools
Photography
Game

Source: Applyzer | Sep 2017
Note: Percentage, among top grossing game apps in Vietnam
Top Grossing GAME in Vietnam, by Categories
- Generally, there are not much differences between Android and iOS, regarding grossing game apps. Differences
mostly come from Casual, Adventure, Simulations and Casino categories.
- Role playing, Strategy and Action have the highest number of grossing game apps in Vietnam on both Android
and iOS platform.
0%10%20%30%
Puzzle
Simulations
Sports
Arcade
Card
Casino
Casual
Action
Strategy
Role Playing
0% 10% 20% 30%
Board
Casino
Card
Puzzle
Arcade
Simulations
Adventure
Strategy
Role Playing
Action

2
Mobile Ads &
App Monetization Insight

Source: App Annie, Google | 2017
Top Countries are not listed in rank order
Global App Downloads
• During Q3 2017, GooglePlay
beat AppleApp Storein total
number of applications, with
the gap of 125%.
• India was the country with
the biggest number of apps
downloaded from Google
Play. Indonesia and Vietnam
ranked at 4th and 7th place,
respectively.
• For AppleStore, top 3
countries of downloads
number were China, USA and
Saudi Arabia.

Source: App Annie, Google | 2017
Top Countries are not listed in rank order
Global Gross Consumer Spend
• At the end of Q3 2017,
worldwide consumerspend
for iOS and Google Play
combined reached
approximately 17 billion
USD.
• iOS users were more willing
to pay, with consumerspend
nearly doubling that of
Google Play.
• In Apple Store,China paid
the highest.
• South Korea stood at high
place on both Google Play
and iOS’s lists of top
spending countries.

Source: Comscore, eMarketer, Adsota | Q3 2017
Global Mobile App Vs. Mobile Web Ads Spending
- Over a last year, a huge amount of mobile ads budget has been spent on app over a last year.
- Mobile App has a tendency to take over all ads spending all mobile, leaving a smaller and smaller share for
mobile web.
81%
Mobile WebMobile App
96%
85% 91% 94%
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017F

Source: eMarketer | Sep 2017
Note: Including display (banner, video and rich media), search;
excluding SMS, MMS, P2P messaging-based ads; including ads spending on tablets
Mobile Ads Spending In Southeast Asia
$-
$0.50
$1.00
$1.50
$2.00
$2.50
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
2016
2017
2019
2018
In Billions
Of Total Digital Spending
• South East Asia is considered
to be one of the most
dynamic growing mobile
market in the world.
• Mobile ads expenditure was
forecasted to exceed 2 billion
USD in 2020.
• Indonesia, Philippinesand
Vietnam share the same
pattern, with the strongest
growth in mobile ads
spending and huge
smartphone adoption.

Source: Chartboost| Oct 2017
(Game CPI at signiﬁcant countries of each segment)
Global Mobile CPI
Australia
$2.18
$3.25
Japan
$2.28
$3.06
Indonesia
$0.69
$0.69
Canada
$1.99
$2.63
India
$0.11
$0.52
Philippines
$0.27
$0.65
New Zealand
$1.66
$2.42
China
$0.93
$1.52
Vietnam
$0.17
$0.52
UK
$1.64
$2.50
US
$1.97
$2.32
Brazil
$0.15
$0.66
Highly DevelopedMobileMarkets
Fast-Growing MobileMarkets

At signiﬁcant game categories
VIETNAM MOBILE GAME MARKET:�Domestic vs. International Spending
(CPIs) $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5
Action
RPG
Strategy
Adventure
Casual
Domestic International
• CPIs from foreign game
advertisers were much higher
than Vietnamese counterparts.
• Casual and Strategy categories,
which require little localization
and potentially survive with long
app lifecycle, got the most
aggressive CPIs from international
publishers ($4 - $5.5).
• Vietnamese advertisers paid the
highest CPIs for RPG and Casual
Game (about $0.4 - $0.7).

Source: Appsflyer | Q3 2017
*Score set by Appsflyer
**Recorded by Appsflyer, on games, Q3 2017
Global App Engagement
- Without any doubt, organic users were 60% more likely to engage with apps more than non-organic.
- Global Users on iOS platform were recorded to retain longer than Android. Big mobile markets with higher
retention on Android are Japan, India, South Korea and Thailand **.
0%
10%
20%
30%
40%
50%
Day 1 Day 3 Day 6 Day 10 Day 16 Day 21 Day 27
Global RetentionRate Retention score comparison, by Type*
Retention score comparison, by OS
+60%
+18%
Non-organic
Organic

Note: Non-organic users, among 40 countries & territories
Global App Un-installation
23.9Global Uninstall Rate
%
33.0%
13.1%
0%
10%
20%
30%
40%
50%
Vietnam Germany Japan Australia France Taiwan US
Uninstall Rate In Top Markets

Note: of Game, among 40 countries & territories, during 90-days-period
Average Revenue Per User (ARPU) In Top Markets
• Japan and Taiwan lead
worldwide top mobile
market with ARPU
surpassing $3.7 on both
Android and iOS platform,
distantly followed by
German and USA.
• In US, UK and South Korea
market, ARPU on Android
is higher than iOS
platform.
Note: No record of China’s performanceon Android platform

Note: of Game, among 40 countries & territories, during 90-days-period
Average Revenue Per Paying User (ARPPU)�In Top Markets
• Similar to ARPU, Japan ($94.4 on
iOS and $81.8 on Android)
dominated global list of top
ARPPUcountries.
• While South Korea came second
on Android, Taiwan was the 2nd
runner-up on iOS.
• ARPPUfrom fast-growing mobile
markets like Russia, China and
Vietnam ranged from $10 to $35.
Note: No record of China’s performanceon Android platform

*Of Game Apps, during 90-days-period
Return – On – Investment (ROI)
- Globally, non-organic trafﬁc created negative ROI. Global ROI turned positive when adding organic users.
- Android platform produced higher return-on-investment than iOS.
-20.0%
33.0%
Global ROI, by platform
Overall
Non- Organic
30.6%
35.4%
Global ROI

Return – On – Investment (ROI)
Note: among 40 countries & territories
• Japan and Taiwan lead the
group of top markets with
the highest ROI for gaming
app on both Android and iOS.
• Vietnam’s high ROI was
mainly due to low media cost
in this country.
• The UK and South Korea had
negative ROI on Android
platform.

Source: Smaato, Appodeal | Sep 2017
(approximate number)
Global eCPM
• The highest eCPM statistics, as an undeniable fact,
came from highly-developed mobile markets, like
Japan and The US.
• Since the beginning of 2017, APAC has always been the
most dynamic area in terms of eCPM growth. The
largest eCPM increase mostly came from Indonesia,
Vietnam, China and South Korea.

Source: AppotaX, Appodeal|2017
Note: Comparison might not be relevant due to different ads platform)
AdMob Facebook Google DFPSmaato
eCPM Statistics in Vietnam
$-
$0.10
$0.20
$0.30
$0.40
$0.50
Jan Feb Mar Apr May Jun Jul Aug Sep
Android
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
iOS
Ads Format: Banner

Note: Comparison might not be relevant due to different ads platform.
AdMob Facebook Google DFPinMobi Chartboost
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Android
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
iOS
Ads Format: Interstitial

Note: Comparison might not be relevant due to different ads platform.
Vungle Unity Ads TapjoyAdColony Chartboost
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Android
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
iOS
Ads Format: Rewarded Video

Note: Comparison might not be relevant due to different ads platform)
Vungle Unity Ads AdColony
Ads Format: Video
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
iOS
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Android

3
Highlight:
App Development,
Monetization Trends
and Opportunities

Source: Google
App Development Trends
- Art & Design and Dating are the fastest growing types of app. This trend is the opportunity for app developers to
get into these areas with new ideas and new products.
- However, there is not much chance in Communication and Social, the slowest growing app categories.
Art&Design
Dating
Food&Drink
Finance
News/Magazines
Maps
Navigations
Books&References
Entertainment
Lifestyle
Comics
Photography
Shopping
Sports
Productivity
Medical
Business
Tools
Health
&Fitness
Music&Audio
VideoPlayer
Weather
Personalization
Communication
Social
Global Growth, by App Categories

Source: Google
App Development Trends
- Simulation, Adventure and Board are the 3 fastest growing game app categories.
- Arcade and Word’s growth rate are the lowest, with very small number of new apps developed.
Simulation
Adventure
Board
Action
Educational
Card
Trivia
Sports
Music
Racing
Puzzle
Casual
Casino
RolePlaying
Arcade
Word
Global Growth, by Gaming App Categories

Source: Google, AdColony, Adsota
(based on percentage of researched developers)
Mobile Ads & Monetization Trends
Advertising
In-appPurchase
Pay-Per-Download
Subscriptions
eCommerce
The Rise Of Video & Native Ads
Banner
Native
Interstitials
Video
Rewarded Video
Effectiveness
Interstitial Video
Banner Display
Interstitial Display
Native
Rewarded Video
Friendly UX Delivery
Hybrid Monetization Shifting

Source: Google, Adsota, AppotaX
(based on AdMob/AdX statistics, mobile experts & publisher client’s evaluation)
Global Trends & Opportunity For Vietnamese Mobile Developers


Go Global
Earn
Global
Revenue
95%
85%
* percentage of Global apps/Total top apps
* percentage of
international/domestic revenue source

Experts Evaluation on Mobile App Trends
Mr. TU BUI (Bui Quang Tinh Tu)
Founderof CONVERSION VIETNAM
Founderof UNDERGROUND AGENCY NETWORK
i
App-in-appis a certain future.
Mobile users can do whateverthey want to do with only one or two applications on
their smartphones. There is no need to open a numer of apps to fullﬁll each of every
different demand. For instance, by opening an app like Uber/Grab, users can access to
Map/Navigation/GPS; or making payments within a messaging app.
Personalization
“One-Size-Fits-All” does not work anymore. It’s time for every developerand
mobile publisher to take the differences of different users seriously.
It starts with undertanding users’ preferences with app analytics, advanced
predictive data or even machine learning.
Get messages, promotion programs, in-app ads, etc. personalized to enhance
mobile users experience and advance their loyalty.

Experts Evaluation on Mobile App Trends
Mr. CUONG NGUYEN (Nguyen Tuan Cuong)
CPO/Co-Founderof AMANOTES
Global Trends
A number of Vietnamese Studio will be successful in global market. The US, especially, is a highly propitious place for
publishers to try, and many achieved success in this market.
Monetization Trend
In-app Ads has always been and will still be the most effective, proﬁtable and uncomplicated
type of monetization for mobile app in the next few years.
UA Trend
- Facebook and Google still play a remarkable role in mobile app marketing.
- Advertisers have a tendency to lessen incentive trafﬁc, target high-quality
users, pay more attention to ROI (Reture-on-investment) or ROAS (Return-on-
advertising-spend), and apply third-party tracking tools.

Vietnam Mobile Ecosystem
Publisher
Social Platform
Carriers
Media Events
Infrastructure
Advertising
& Marketing
Foreign Publishers Mobile Payment Live Streaming
Platform

Vietnam Programmatic Mobile Ads Ecosystem
Video-Oriented Ad Network
Ad Network Ad Mediation Demand-Side
Platform (DSPs)
Supply-Side
Platform (SSPs)
Ad Exchange Measure & Analytics

Adsota, as the official partner of Google
and Facebook in Vietnam, provides
advertisers with effective solution to
achieve high return-on-investment
including driving high-quality users
and boosting sales performance &
brand awareness for businesses.
On the aspect of app monetization,
Adsota, the official partner of Google
Ad Exchange, proudly helps mobile
publishers in Vietnam and South East
Asia maximize in-app ads revenue.
ABOUT ADSOTA
cpi
User Acquisiton
[CPI/CPA, Burst-top, Adsota
network, ASO]
Traffic Monetization
[Official Partner with
Google in Ad Exchange]
http://adx.appota.com
Branding
[Media Coverage/Viral
Clip/KOLs/Community]
Lead Generation Service
[The First & Only Facebook Gaming
Agency in Vietnam]
Dịch vụ

CONTACT US
HEAD OFFICE: Building 11 (LE Building), Alley
71, Lang Ha St., Ba Dinh Dist., Hanoi, Vietnam
Tel: (+84) 435 191 618
Hotline: (+84) 168 999 1490
Email: sale@adsota.com
Fanpage: facebook.com/adsota
Twitter: twitter.com/Adsota
Website: adsota.com

Vietnam Mobile App Advertising & Monetization Report (Q3-2017)

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Vietnam Mobile App Advertising & Monetization Report (Q3-2017)