A MOBILE FIRST WORLD

T H E S H I F T T O

A MOBILE FIRST WORLD

T H E S H I F T T O

3

W H A T ’ S C O V E R E D

Rapid Adoption:

What are the drivers

impacting the pace of

smartphone ownership?

Factors expediting

the shift:

How should advertisers and

publishers be building for a

mobile majority first world?

Thinking Beyond

Ownership:

Now the majority of

consumers own a

smartphone, but so what?

To understand mobile migration patterns and which factors will accelerate the

shift to a mobile-first for consumers and advertisers

Background

4

RAPID ADOPTION PATTERNSH O W S M A R T P H O N E S A R E D I F F E R E N T

5

A D O P T I O N C U R V E F O R M O D E R N C O N V E N I E N C E S

100

50

1900 1915 1930 1945 1960 1975 1990 2005

The adoption curve for modern conveniences has shortened considerablyAdoption curve since 1900

Source: Visual Economics

TELEPHONE

ELECTRICITY

AUTO RADIO

STOVE

CLOTHES DRYER

MICROWAVE

DISHWASHER

COLOR TV

CELL PHONE

INTERNET

VCR

FRIDGE

CLOTHES WASHER

AIR CONDITIONING

COMPUTER

6

2014 2015 2016 2017 2018 2019 2020

Smartphone ownership reaching majority ownership rates across all major markets

7 Source: eMarketer | 2016

UKUSA BRAZILMEXICO

Adoption Rate

50% ADOPTION

87.3%86.0%

80.0%

63.7%

69.0%

ARGENTINA

The speed of smartphone adoption can be attributed to the multiple products it has replaced

8 Source: eMarketer Report / Press Play: Infographic by Nicolas Rapp / Soure: Appliance, Sept Issue, multiple years

REPLACEMENT CYCLES FOR ELECTRONICS PRODUCTS

PRODUCT AVG. LIFE (YEARS)

Cordless telephone 8

Color TV 8

CD Player 6

Telephone answering machine 6

VCR 5

Camcorder 5

Fax 4

PC 2

Mobile Phones 1

REPLACEMENT TIME

US CHINA JAPAN GERMANY MOBILE FRANCE UK ITALY RUSSIA

Source: BCG, Flurry

US CHINA JAPAN GERMANY MOBILE UK FRANCE INDIA ITALY BRAZIL

TR

ILL

ION

S (

US

D)

18.6

11.4

4.73.5 3.3

2.7 2.5 2.2 1.8 1.8

10

20

Mobile industry revenue rivals GDP of the world’s largest countriesCountry GDP in $Trillions

9

Source: StatisticsTimes.com

10

Developing for larger

screens

Creating experience

for cross-screen, not

mobile only

Adapting to trends in

the app revolution

Factors that will expedite the shift to a Smartphone Dominant world

Developing for larger

screens

Creating experience

for cross-screen, not

mobile only

Adapting to trends in

the app revolution

Factors that w i l l expedi te the shi f t to a mobi le lead wor ld

11

What does a

Smartphone Dominantconsumer look like?

12

MOBILE FIRST.

67% state that their smartphone replaces their PC, & is

the main way they access the internet

MOBILE LEAD.

75% of their digital time is a mobile device;

+50% vs. an average smartphone owner

MOBILE IMMERSED.

+50% more activities done on a mobile devices vs. an

average smartphone owner

Users who spend most of their times on

their smartphones, and are using them to

replace their PC

78%

It's more efficient to do

things on my computer

than on my smartphone

More efficient, better user experiences will accelerate the shift to Smartphone DominanceFactors that are holding back consumers from being Smartphone DominantAmong Future Smartphone Dominant Users

13

User Experience

(easier to type, read, easier

to browse/compare)

67%

Data & Internet

Improvements

54%

Better Apps

44%

FULL-SIZE TABLETS

9.74 MIN

As screen sizes grow, engagement will increase

14

SMALL TABLETS

6.88 MINMEDIUM PHONES

4.18 MIN

SMALL PHONES

3.8 MIN

Average time spent per session | Minutes

Source: Flurry by Yahoo Analytics, mapped devices only,

The Industry

responded with

more Phablet

choices

Over the course of the next 5 years, shipments for these larger screens will grow tremendouslyStrategy Analytics Forecast | Global Handset Sales by Millions of Units

15 Source: Wireless Device Strategies (WDS) service

0

500

1.000

1.500

2.000

2.500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

DEVICES Basic Phone Standard Feature Phone Smart Feature Phone Standard Smartphone

Superphone Standard Phablet Superphablet

Developing for larger

screens

Creating experiences

for cross-screen, not

mobile only

Adapting to trends in

the app revolution

Factors that w i l l expedi te the shi f t to a mobi le lead wor ld

16

Smartphone Dominant users are more digitally active across PC and Mobile# of Different Activities Done Last Day Used

17

SMARTPHONE DOMINANT USERS

# OF ACTIVITIES DONE ON DEVICE CURRENT SD FUTURE SD

Smartphone 16 11

Computer 11 14

TOTAL 27 25

+3.5 more

than the

average

smartphone

owner

Smartphone Dominant users want digital experiences to go across devices% Smartphone users agree

18 D4_12. How much do you agree or disagree with the following statements about devices? / Smartphone Dominant In Future (n=2913)

“I'm using multiple devices

at the same time more

often than I did in the past”51% TOTAL

66% CURRENT SD

56% FUTURE SD

In fact, 2 in 5 smartphone owners go across devices daily to continue the same digital activityIn the past day, I continued a digital experience across the following devices

19

42%Will go across devices on at least

one digital activity

(Among total smartphone users)

42%

28%

23%

16%

15%

14%

DEVICE TO DEVICE – CURRENT SMARTPHONE DOMINATE USERS

Smartphone to Computer

Computer to Smartphone

Smartphone to Tablet

Tablet to Computer

Computer to Tablet

Tablet to Smartphone

Communication, content & search related activities currently span across devices mostSequential Experience Activities For Any Device – Mobile, Tablet & PC Among those who had a sequential activity

20

PHOTOS

29%

ONLINE VIDEO

35%

SOCIAL NETWORK

44%

EMAIL

59%

SEARCH

42%

CONTENT

48%

PHOTOS

29%

ONLINE VIDEO

35%

SOCIAL NETWORK

44%

EMAIL

59%

SEARCH

42%

CONTENT

48%

OTHER MENTIONS

Banking 29%

Shopping 29%

Playing games 28%

Streaming music/radio 26%

Using an IM or a texting app 26%

Work/school 20%

Finding directions/using GPS 20%

Developing for larger

screens

Recognizing that it’s

cross screen, not

mobile only

Adapting to trends in

the app revolution

Factors that w i l l expedi te the shi f t to a mobi le lead wor ld

21

45%

49%

57%

60%

48%

55%

I strongly prefer apps over mobile websites

All mobile websites should deliver an app-like experience

It’s clear that apps have won!I agree with the following statements

22

Current SDTotal Future SDSmartphone Users

In fact,

88% of digital time

spent is spent on

apps as opposed

to WAP

Source: Flurry, ComScore, NetMarketShare

The majority of smartphone owners continue to download the same number of apps than past years

App Downloads vs. A Year Ago

23

Downloading about the same

Downloading fewer apps

Downloading more apps 23%

58%

19%

Download

8 APPS a month

Source: Flurry, ComScore, NetMarketShare

Saw an ad

about it

39%

I need it for a

specific task

53%

Task-based apps and replacing an existing app are top reasons users download new apps

24

Replace an

existing app

49%

Read

about in

an article

39%

Friend told

me about it

41%

How did you hear about these apps| Among Actively Downloading

Motivations to download apps | Among Total

Growth in sessions is driven by lifestyle, productivity and messaging appsChanges in annual growth in app usage | Sessions

25

74%

48%32% 28%

171%

116%

100%

88% 87%

LIFESTYLE &

SHOPPING

AVERAGE 76%

UTILITIES &

PRODUCTIVITY

MESSAGING HEALTH &

FITNESS

TRAVEL SPORTS NEWS &

MAGAZINES

MUSIC, MEDIA &

ENTERTAINMENT

GAMES

Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2014-2015

However, what will move media experiences even further is phablet ownership

26

30%

53%

29%

158%

144%

130%

SPORTS NEWS & MAGAZINES MUSIC, MEDIA & ENTERTAINMENT

PhabletsAll device types% Growth in category usage % over index

427% 172%

255%

Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2014-2015

IMPLICATIONS FOR ADVERTISERS

S M A R T P H O N E S H I F T

VIEWING HABITS HAVE SHIFTED

GROWTH YOY

25%GROWTH YOY

13%DECLINE YOY

3%

28

Yahoo 2016 Confidential & Proprietary.

DIGITAL IS THE NEW BLACK

MILLENNIALS ARE CUTTING THE CORD

of Millennials have replaced TV within

digital sites and apps

58%

AND ARE MORE DISTRACTED THAN EVER

of the time a consumer viewed an ad on TV, their

attention was diverted to another digital device

57%

29

Deep fragmentation of audiences

THE RESULT

30

Digital Trends in Brazil (2020)

Source: eMarketer, March & September, 2016

11.3M New Internet users (~80% penetration)

25.2M Additional Smartphones (64% penetration)

$1.7B Increase in Digital Spend ($4.7B)

72% Mobile ad spend / Total digital spend ($3.4B)

31

DATA

The new currency:a medium of exchange with great value for

consumers and marketers

32

Insights

Targeting

Measurement

33

© 2016 BRIGHTROLL ALL RIGHTS RESERVED. CONFIDENTIAL AND PROPRIETARY.

Technology to help you reach

audiences at scale both on

and off Yahoo.

TECHNOLOGY

Deep data from the most

complete set of signals,

including sources like mail,

search, content, mobile app

usage and social.

DATA

Leading news,

sports, finance and lifestyle

properties

for brand building and

content marketing.

CONTENT

Yahoo offers personalized messages at scale…

34

GLOBAL USERS

1B 165B 2.7BDAILY ACTIVITES MOBILE DEVICES

EMAIL SEARCH CONTENTCONSUMPTION

MOBILEAPP USAGE

REGISTRATION / DEMO

By combining insights from multiple signals and platforms

35

© 2016 BRIGHTROLL ALL RIGHTS RESERVED. CONFIDENTIAL AND PROPRIETARY.

GLOBAL USERS

1B

165BDAILY ACTIVITES

2.7BMOBILE DEVICES

USER REGISTRATION / DEMO

EMAIL

MOBILE

SEARCH

CONTENT CONSUMPTION

NATIVE

CROSS-DEVICE

VIDEO

DISPLAY

Advertiser data

Third party data

36

Yahoo Native Ads

Native Ad SpecsCREATIVE ASSETS

MP41200X627 627X627

Ad Title, Description, Landing Page

Native: engaging and effective ad format

37

na·tive ad·ver·tis·ingn. A form of paid media where the ad experience

follows the natural form and function of the user

experience in which it is placed.

Identity and creative execution are key for driving Mobile growth

38

39

TAKEAWAYS

MORE SPACE When building a mobile strategy, companies should account for the rapid adoption of larger phablet devices.

More screen space = more ways to connect with your user. Native ad formats account for this size naturally

and beautifully.

INTEGRATED MOBILE BUDGETSMobile ad budgets should not be thought in isolation. With 2 in 5 consumers crossing devices daily, siloed

mobile budgets should evolve to larger cross-device buys. Native advertising, that runs specifically on

responsive design, is a must-buy that creates that efficiency and ease for marketers.

DATA CREATES OPPORTUNITIESData has become a fundamental tool for marketers, helping with improving insights, targeting, and ability to

measure results, and inspiring more relevant and valuable creative.

MEDIA PARTNER IS NOW YOUR DATA PARTNERYahoo collects 165B signals each day. Combining Yahoo’s data with advertiser and 3rd party data allows for

superior targeting at scale.

THANK YOU

IAB BRASIL

DATA DRIVEN MARKETING IN A DEVICE AGNOSTIC WORLD

DATA

42

ACTIONABLE DATA

43

Insights for

Strategic

Planning

Campaign

Performance

Measurement

Audience

Targeting

Con

su

mer

Rela

tio

nship

s

Breadth and Depth of Data

Advertiser Data

Retargeters

APP USAGE

SOCIALBEHAVIOR

CONTENTCONSUMPTION

SEARCH

EMAIL

DATA LANDSCAPE

Market Scarcity

Perf

orm

ance

Purchase

Search

CRM

Website Visits

Brand Followers

DemoGeo Country

Techno

Interests

Location

Lifestage

DIGITAL MARKETING THRIVES ON SPECIFICITY

Lifestyle

Travel Plans

46Source: Online SurveyYahoo 2016. Confidential & Proprietary.

Territories occupied by different screens based on

correspondence mapping

PASSIVE ACTIVE

FUNCTIONAL

Note: this is a largely consistent picture

among younger 16-24 year old and older 25-44 year old age groups

Engaging

Comforting

Entertaining

Convenient

Personal

Supportive

Trustworthy

Informative

EMOTIVE

Consumer Behaviour Across Multiple Devices

Most Favourable Screen for Commercial Activities

47Yahoo 2016. Confidential & Proprietary.

Which screen is most suitable for ?

Source: Online Survey

Researching a

city break

35%

18%

Booking tickets for

an event

33%

19%

Watching a branded

content film

28%

22%

Sharing event

experiences

47%

18%

Retail

rewards

48%

10%

Consumers want to interact with brands

48Source: Depth Interviews

Open to commercial momentsClosed to commercial moments

Yahoo 2016. Confidential & Proprietary.

Shopping

Travelling

Exercising

Socialising

Relaxing

THE FUTURE OF DIGITAL MARKETING IS

AUDIENCE CENTRIC, DEVICE AND

FORMAT AGNOSTIC

49

Deep and Unique

Audience Insights

Engaging Formats

Across Devices

Audience Centric Approach

Millions of users

mapped to more

than

one device

THINKING HOLISTICALLY

COMBINE INSIGHT FROM

MULTIPLE SOURCES

CONSUMER LIFECYCLE

Awareness

Consideration

EvaluationPurchase

Loyalty

PASSIVE

ACTIVE

Awareness

Consideration

Purchase

Incomplete

measurement

across platforms

and devices

Difficulty in tying

online campaigns

to offline sales

Need to measure

user engagement

beyond

the click

33% of marketers fear omni-channel approaches

Challenges for Marketers Need to connect the dots

Yahoo’s Approach to Measurement

A set of simple and turn-key

measurement solutions

across channels and

devices

54

SCALABLE OPEN ACTIONABLE

Ability to use your preferred

partner through our third-

party measurement

partnerships.

A holistic view into how your

campaigns are working so

you can optimize ROI.

Measuring Marketing Impact

Offline Sales/Behavior

OnlineBehavior

Brand Impact

Verification

• Offline Purchase

• Offline Spend

• Store Visits

• Engagement with Ads

• Clicks

• Conversions/Actions

• App Installs

• Conversion Value

• Search Lift

• Awareness

• Favorability

• Intent

• Recommendation

• Reach &

Frequency

Audience Composition - Viewability - Fraud - Brand Safety

55

Campaign Report

56

Holistic campaign wrap-up for online

campaign metrics and performance

BENEFITS

• View campaign overview, trends,

search lift, target audience,

cross-device attribution, reach

and frequency analysis all in one

dashboard

• Optimize campaign tactics

including audience targeting,

frequency and cross-device

media mix

• Inform future marketing strategy

Search Lift

57

Measures the lift in searches for your brand

amongst users who were exposed to your

display campaign

BENEFITS

• Evaluate whether your display

campaign is keeping your brand

top of mind with consumers

• More accurately attribute brand

lift from digital marketing efforts

Yahoo Synergy

58

A cross-channel analytics solution that

provides a unified view of your marketing

campaigns

BENEFITS

Learn to:

• Measure the impact of one

marketing strategy on another

• See how low-funnel and

branding campaigns work in

conjunction

• Optimize media mix

Cross Device Report

59

Enables conversion attribution

regardless of the devices where the ads

were served

BENEFITS

• Gain visibility and understand

the impact of post-click and

post-view conversions across

devices

• Optimize media spend across

channels

Case Study Cross Device Targeting

0,00%

0,10%

0,20%

0,30%

0,40%

PC+Mobile+Tablet PC+Mobile Any Cross-Screen Mobile+Tablet PC+Tablet PC Only

88%

Lift

CO

NV

ER

SIO

N R

AT

E

Viewability Measurement

61

Across all ad formats and Yahoo ad

platforms

BENEFITS

• Better performance (more

brand exposure)

• Better analysis (improved

attribution modeling and cross

media measurement)

• Increased transparency

Audience Verification

62

Yahoo allows advertisers to use their preferred measurement vendor to

verify:

• Audience composition

• Viewability

• Fraud

• Brand safety

BENEFITS

Advertisers can be confident that

campaigns were viewed by their

intended target on the right sites.

PARTNERS

INCLUDE

Brand Effectiveness Study

63

Automated turn-key solution to measure brand and behavioral

impact of campaigns using control/exposed methodology

BENEFITS

Measure lift in:

• Brand awareness

• Brand favorability

• Consideration

• Purchase intent

• Branded search

• Site visitation

PARTNERS

INCLUDE

Your referee shouldn’t also

be playing the game.““

Importance of Independent Measurement

3 Questions Every Advertiser Should Ask

1

Are you able to measure

my campaigns across

platforms and devices?

2

Are you able to measure

offline sales impact of

my campaigns?

3

Do you allow third-party

measurement for my

campaigns?

THE FUTURE OF DIGITAL MARKETING IS

AUDIENCE CENTRIC, DEVICE AND

FORMAT AGNOSTIC

66

THANK YOU