cocoa chinaevent key_v2_bernie-google

Mobile Advertising for Mobile Applications

Aug 27, 2011 Bernard Tay

agenda

1

2

3

Mobile Application is big

Smartphone Users Are Target Audience

Ad-Funded, In-App or One-Time Download

Mobile Application Is BIG

Smartphone Users Are Target Audience?

31%

USA

Worldwide Smartphone Shares

15%

ZAF

37%

AUS

35%

CHN

23%

IND

28%

THA

62%

SGP

26%

TWN

6%

JPN 27%

KOR

9%

MYS

17%

IDN

35%

HKG 27 %

FRA

33%

ESP

24%

ITA

30%

DNK

18%

DEU 30%

GBR

33%

NLD

21%

AUT

25%

RUS 29%

FIN

30 %

SWE

33%

NOR

14%

TUR

xx%

POL

34%

CHE

29%

CZE

xx%

ISR

The Spectacular Rise of the Tablet

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012

Tablets

PCs

Tablet Shipments (millions)

Tablets predicted to reach 25% of PC

shipments in next two years

The iPad is Apple’s fastest-selling

device in history

0

2

4

6

8

10

12

0 Q1 Q2 Q3

iPad

iPhone

iPod

iPad, iPhone, iPod Sales, 3 Quarters

After Launch (millions)

Devices: 54% currently have their first smartphone.

Brands: They mainly use Nokia, Samsung, Apple.

Web-behaviour: 61% use the internet at least once a day via smartphone. Still heavier web-usage via PC / laptop.

Demographics: More males use smartphones, they are younger (up to 34 years), higher educated and full-time employed.

» Private urban smartphone users in China:

Used Devices

Base: All respondents, n=1000 Q1: Which, if any, of the following devices do you currently use?

Mobile phone /

Smartphone

Desktop / PC Laptop /

Notebook

Netbook /

Webbook

MP3- / Media

player with

Web access

eReader Tablet PC or

Slate / Pad

Handheld

gaming device

» 97% of urban Chinese citizens use a Mobile Phone / Smartphone

72%

Netcount Laptop / Desktop

Number and Type of Used Phones

Base: All respondents, n=1000 Q2: And how many mobile phones or smartphones do you currently use? Q6: And which of the following best describes your phones?

1

3

2 + dk

+

dk

+ dk

+ +

» 30% of urban Chinese citizens have more than one phone

67% have one phone

25% have two phones

4% have three phones

4

1% have four phones

dk

Share of Mobile Phones vs. Smartphones

Base: All respondents, n=1000 Q1: Which, if any, of the following devices do you currently use? Q6: And which of the following best describes your phones?

35%

Smart- Phone

60%

Mobile Phone

» 35% of urban Chinese citizens use a smartphone for personal reasons

97%

Number of Smartphone & Usage Duration

14

Base: All main privately used smartphones, n=354 Q7: Is your … your first smartphone? Q8: How long have you been using your smartphone?

Yes No

» For 54% of urban smartphone users it is the first smart device

Don‘t know

Demographics 1/2 All respondents Private smartphone users

Gender Female 50% 44%

Male 50% 56%

Age

18 - 24 Years 17% 24%

25 - 34 Years 31% 39%

35 - 44 Years 23% 21%

45 - 54 Years 18% 11%

55 - 64 Years 11% 5%

Average Ø 36,6 Ø 32,8

Education

Low 22% 8%

Middle 26% 26%

High 51% 65%

Employment Status Active (full + part time) 71% 81%

Inactive 29% 19%

Marital Status

Single 30% 40%

Living with partner 0% 0%

Married 69% 58%

Divorced/ separated 1% 1%

Base: All respondents, n=1000 / Private smartphone users, n=354

Demographics 2/2 All respondents Private smartphone users

Household Size

1 Person 3% 3%

2 Persons 6% 7%

3 Persons 37% 40%

4 Persons and more 53% 49%

Average Ø 4,0 Ø 3,9

Number of Children

0 Children 53% 53%

1 Child 36% 36%

2 Children 8% 8%

3 Children and more 2% 3%

Average Ø 0,6 Ø 0,6

Household income (monthly)

Top (8.000 RMB or more) 20% 30%

Middle (3.000 – 7.999 RMB) 39% 40%

Low (less than 3.000 RMB) 33% 23%

Base: All respondents, n=1000 / Private smartphone users, n=354

Are These Your

Target Audience ? ✔

Ad-Funded, In-App Purchasing And Paid ?

Ad-Funded

• Advertiser Pays

• CTR, eCPM, CPC

• Recurring Revenue

• Easy option for users

to experience full

features of apps

without paying

In-App Purchase

• User Pays

• Virtual goods

inventory, price per

payment,

• Recurring Revenue

• Great option for users

to try the app with

possibly limited

features

Pay Per Download

• User Pays

• Price of app

• One-Time-Revenue

• Great option for users

who are willing to buy

the app right out, with

either previous

knowledge of the app

(via advertising ?)

Typical Lifecycle Of Successful App

Integrate monetization SDK & Publish to Appstore

Increase Userbase via Mobile Advertising

Monetize & Use HouseAds to further drive downloads of other versions (x &

up sell)

Key Takeaways

Mobile App business is exploding and pads expected to drive even more growth

Smartphone users are also the right audience

3 main monetization models available and should be combined in an overall strategy

Time is right now, reach out to Google Mobile team to get started