3 broad trends in mobile marketing and how they may impact the landscape in 2016 and beyond

1. 3 Mobile Marketing Stories:
2016 and beyond
Eric Benjamin Seufert
VP of User Acquisition, Rovio
Owner, Mobile Dev Memo

2. Who am I?

3. Who am I?

4. Who am I?

5. Who am I?

6. Presentation Structure

7. Presentation Structure
• Story 1: Rich Media

8. Presentation Structure
• Story 1: Rich Media
• Story 2: Television

9. Presentation Structure
• Story 1: Rich Media
• Story 2: Television
• Story 3: China

10. Story 1:
Rich Media

14. Facebook Mobile Users
2015 – 2018 (billions, projected)
Source: eMarketer
0.99
1.12
1.23
1.34
70%
73%
74%
75%
67%
68%
69%
70%
71%
72%
73%
74%
75%
76%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2015 2016 2017 2018
Mobile Users
Mobile Users
as Percentage
of Total
Facebook
Users

15. Facebook Worldwide Ad Revenue
2015 – 2016 (projection, billions)
Source: eMarketer
$10.90
$13.64
$4.03
$4.55
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
2015 2016
Mobile
Desktop

16. Time Spent on Mobile Devices
(minutes per day)
Source: Flurry
158 162
220
20%
14%
10%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
Q1 2013 Q2 2014 Q2 2015
Time Spent
on Mobile
Percentage of
Mobile Time
Spent in
Browser

17. $68,695
$101,366
$133,743
$166,628
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
2015 2016 2017 2018
Global Mobile Advertising Spend (millions)
2015 – 2018 (Projected)
Source: eMarketer

18. US Mobile Ad Spending
2015 – 2018 (projection, billions)
Source: eMarketer
$30.45
$42.01
$50.84 $57.95
52%
63%
67%
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
2015 2016 2017 2018
Mobile Ad
Spending
Mobile Ad Spend,
Percentage of
Total Digital
Spending

19. US Mobile Ad Spending
2015 – 2018 (projection, billions)
Source: eMarketer
$30.45
$42.01
$50.84
$57.95
17%
22%
25%
27%
0%
5%
10%
15%
20%
25%
30%
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
2015 2016 2017 2018
Mobile Ad
Spending
Mobile Ad Spend,
Percentage of
Total Advertising
Spend

20. US Mobile Ad Spending by Sector
(billions)
Source: eMarketer
$6.65
$3.49 $3.43 $3.27
$2.38 $2.33 $2.09 $1.73 $1.50
$0.66
$1.20
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00

21. Mobile Time Spent by App Type
(minutes per day)
Source: Flurry
45
13
52
68
44
33
0
10
20
30
40
50
60
70
80
Messaging and Social Entertainment Gaming
Q2 2014
Q2 2015

22. US Mobile Video Ad Spending
2015 – 2018 (projection, billions)
Source: eMarketer
$2.62
$3.94
$5.09
$5.96
34%
41%
45%
46%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
2015 2016 2017 2018
Mobile Video Ad Spend
Mobile Video Ad Spend,
Percentage of Total

23. Smartphone Habits
Source: Nielsen

24. Source: Mary Meeker Internet Report / KPCB
Mobile Data Traffic vs. Total Consumer Internet

25. Rich Media Ad Platforms (Non-gaming)

26. Rich Media Ad Networks

27. Rich Media

28. Rich Media
• Growing availability of mobile data is driving
mobile usage;

29. Rich Media
• Growing availability of mobile data is driving
mobile usage;
• That usage is concentrated in mobile apps;

30. Rich Media
• Growing availability of mobile data is driving
mobile usage;
• That usage is concentrated in mobile apps;
• It’s not exclusively in gaming;

31. Rich Media
• Growing availability of mobile data is driving
mobile usage;
• That usage is concentrated in mobile apps;
• It’s not exclusively in gaming;
• It’s where people are spending their time and
it’s how they want to consume content.

32. Story 2:
Television

33. Mobile’s Share of Advertising Spend
2015 – 2018 (Projected)
Source: eMarketer
40%
51%
59%
66%
12%
17%
21%
24%
0%
10%
20%
30%
40%
50%
60%
70%
2015 2016 2017 2018
Mobile as Percentage
of Digital Ad Spend
Mobile as Percentage
of Total Ad spend

34. US Advertising Spend
2008 – 2018 (projection, billions)
Source: FTI Consulting
• Digital
advertising
spend to
surpass
broadcast TV
spend in 2015.

35. Television Advertising
Source: FTI Consulting

36. Television Advertising
Source: FTI Consulting

37. Online vs. Television Ad Revenues
Source: PwC Outlook

38. Mediapalooza
Source: Wall Street Journal

39. Television
• Less effective than mobile advertising for
mobile developers;

40. Television
• Less effective than mobile advertising for
mobile developers;
• Less and less relevant as consumers spend
more time on the mobile phones;

41. Television
• Less effective than mobile advertising for
mobile developers;
• Less and less relevant as consumers spend
more time on the mobile phones;
• Spending on television is far less transparent
than on digital.

42. Story 3:
China

43. Uber removed from WeChat
Source: Bloomberg

44. Competitive Landscape in China
Source: Wikipedia

45. +36%
+11%
-8%
-
50,000
100,000
150,000
200,000
250,000
300,000
iOS Android Others
Units Sold,
2Q 2014
Units Sold,
2Q 2015
Source: Gartner
Global Platform Unit Sales
Q2 2014 vs. Q2 2015 (thousands)
• Apple growing
faster than
Android in
terms of sales;
• Android still
dwarfs Apple,
despite slowing
sales growth;
• Sales
plummeting for
“3rd” platforms.

46. Source: Gartner
Global Platform Market Share
Q2 2014 vs. Q2 2015 (thousands)
+19%
-2%
-20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
iOS Android Others
Market Share,
2Q 2014
Market Share,
2Q 2015
• Strong growth
in iOS market
share.

47. Source: Gartner
Global Manufacturer Market Share
Q2 2014 vs. Q2 2015 (thousands)
• Significant
market share
decline for
Samsung;
• Large market
share wins for
Apple, Huawei,
and Xiaomi.
-9%
+35%
-37% +43% -2% -14% +28%
+2.%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Market Share,
2Q 2014
Market Share,
2Q 2015

48. Source: Gartner

49. Global Mobile Advertising Spend by Region (millions)
2015 – 2018 (Projected)
Source: eMarketer
US
China
UK
Japan
ROW
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2015 2016 2017 2018
US
China
UK
Japan
ROW

50. China
• The Chinese market can be anti-competitive
for Western developers;

51. China
• The Chinese market can be anti-competitive
for Western developers;
• Smartphone sales are no longer growing in
China. It is no longer a boundless greenfield;

52. China
• The Chinese market can be anti-competitive
for Western developers;
• Smartphone sales are no longer growing in
China. It is no longer a boundless greenfield;
• Strong iPhone and Xiaomi sales in China mean
dealing with different app stores / distribution
partners might not remain necessary.