opera mediaworks mobile report q3 2013

In the third quarter of 2013, we witnessed three main trends:

Growth

Traditionally, mobile web activity tapers in the middle of the summer, but, this year, we saw steady growth. We attribute this to growth from the international markets in which we operate.

Mobile publisher categories broaden and segment

In the past, a handful of site categories clearly dominated in terms of mobile ad revenue; now, a much wider range of site categories are successfully monetizing their inventory. And, within some categories, we’re seeing more segmentation. Within the Sports category, for example, we see signi!cantly different engagement pro!les among sports-speci!c sites.

+P]LYZPÄJH[PVUOn one hand, the device market has coalesced into two operating systems: iOS and Android. Yet, these two systems are becoming more diversi!ed by the increasing number of releases, each with different capabilities and often with different user demographics.

As with past reports, we continue with this edition to share data around mobile ad traf!c and monetization by device, geography and publisher category.

Advertisers include …

Insights from Opera Mediaworks the world’s largest mobile ad platform

sites & applications13,000 60 BILLION

ad impressions per month400 MILLION

global consumers reached

Q3 2013The State of Mobile Advertising

© Copyright 2013, Opera Mediaworks. All rights reserved.

Publishers include …

1

iPhone and Android are neck and

neck in race for smartphone dominance

Overall, iOS remains the clear leader in both impressions served and in monetization, capturing 44.4% of all ad requests and nearly 50% of all revenue on our platform.

However, in the case of impressions served, this lead is based on the success of the iPad. When comparing just the iPhone to Android smartphones, the difference is less than one percentage point (31% vs. 30.3%).

It is worth noting that the iPad and other tablet devices continue to become more important to mobile advertising. Together, iPad and Android tablets make up almost 10% of all impressions served. One year ago (Q3 2012), tablets accounted for just 5% of total impressions.

iOS

44.40%

Android

31.32%

Other

16.35%

Symbian

4.73%

RIM

2.84%

Windows

0.36%

;YHMÄJ�ZOHYL��TVIPSL�WOVUL�6:�OS / device ��VM�[YHMÄJ % of revenue

Windows 0.36% 0.34%

Other 16.35% 16.86%

4.73% 1.21%Symbian

2.84% 4.33%RIM

31.32% 27.73%Android

iOS 44.40% 49.53%

iPhone 31.00% 36.39%

iPad 8.87% 10.33%

Phone 30.32% 27.27%

Tablet 1.00% 0.46%

4.53% 2.80% iPod Touch

8��The State of Mobile Advertising


2

Toward the end of the quarter, Apple made its latest operating system version available to users, and, in just a few short weeks, iOS 7 became the dominant OS version for Apple devices. Still, more than a third of Apple users continue to use older versions of the OS.

The Android OS has more pronounced diversi!cation of its version usage, with over 50% of the Android user base operating without the newest software.

Android iOS

iOS

Tablet

OS Share

OS versionOS % users

P7OVUL�6:�� 61.09%

V[OLY 0.01%

P7OVUL�6:�� 33.01%

P7OVUL�6:�� 3.33%

-YV`V 2.99%Android

iOS

1LSS`�)LHU 49.77%

V[OLY 1.37%

P7OVUL�6:�� 0.60%

.PUNLYIYLHK 26.11%

0JL�*YLHT�:HUK^PJO 19.76%

P7OVUL�6:�� 1.96%



3

FroyoOther Gingerbread Ice CreamSandwich

Jelly Bean

1.37% 2.99% 26.11% 19.76% 49.77%OS 3

0.60%OS 4

1.96%OS 5

3.33%OS 6

33.01%OS 7

61.09%other

.01%

Music, Video & Media slides back to no. 1

for impression volume and revenue generation

The Music, Video & Media category is now the consistent leader in ad impression volume and this month leads in overall monetization. Sports, which rose to #1 in monetization last quarter, has now dropped to third. Business, Finance & Investing is still producing the highest revenue per impression.

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% of revenue

% of impressions

Site category

Music, Video & Media

Computers & Electronics

Social

Other

News & Information

Arts & Entertainment

Games

Sports

Health, Fitness & Self Help

Business, Finance & Investing

7.25 14.5 21.75 290

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4

Game schedules, seasons impact mobile traf!c and engagement

Even though it has dropped out of our top spot for monetization, the Sports category has shown impressive growth over the last year. It also shows signi!cant variations in traf!c (as measured by ad requests) and engagement (as measured by click-through rates). For instance, we can see that traf!c peaks on weekends, but engagement is higher towards the end of the workweek.

Why is this? Within the category, there are multiple sub-divisions by type of sport, and each has its own regular season game schedule. American football games mostly take place over the weekend while baseball and hockey games are spread throughout the week, thus creating different traf!c patterns.

Each sport, too, has its own season, which creates enormous "uctuations throughout the annual cycle. Traf!c to sport-speci!c content can drop in excess of 90% when a sport goes into its “off” season.



5

% o

f ad

requ

ests

M T W Th F Sa Su

Req

uest

s

CTR

DOW traf!c vs engagement“Sports”

% o

f ad

requ

ests

0.3

0.25

0.2

0.15

0.1

0.05

0

M T W Th F Sa Su

Baseball

Hockey

Football

“In Season” traf!c by DOW

How is a baseball fan different from a hockey fan?

We also see varying contextual parameters among the different sports. While both baseball and hockey fans seem to prefer iPhone over Android, nearly 6 out of 10 baseball fans use iPhones compared to about half of hockey fans, and they are also more likely to have an iPad (13.2% vs. 5%).

The types of ads being served to these two types of users are also different. For the campaigns we analyzed, advertising for automobiles and automotive products seems to be a consistent winner no matter the sport or season, though it monopolizes almost twice the share of impressions on hockey properties as compared with baseball.

Baseball fans see more ads for personal !nance products, insurance and electronics than hockey fans do. Ads for entertainment services and sports content and equipment are targeted more to hockey fans — in fact, about 1 in 4 impressions on hockey sites and apps are for a sports brand, and for the campaigns analyzed, 43% of revenue for hockey publishers comes from Entertainment advertisers.

OS / device ��[YHMÄJ

Other 3.47%

21.96%Android

iOS 74.57%

iPhone 58.51%

iPad 13.20%

2.86% iPod Touch

OS / device ��[YHMÄJ

Other 6.71%

30.67%Android

iOS 62.63%

iPhone 50.91%

iPad 4.97%

6.74% iPod Touch

Hockey (in season) Baseball (in season)



6

Ad requests and impression volume continue to grow worldwide

Consistent with previous quarters, the United States is driving the majority of ad requests and

revenue on the Opera Mediaworks platform — but this lead continues to shrink as international

volume increases. Last quarter the U.S. share of requests was 48.9%, while now it is 47.5% of

our total volume.

Africa

Middle East

Asia Paci!c

Europe

Americas (non-U.S.)

United States

Oceania

Top 20 countries

Spain

South Africa

Australia

Turkey

Nigeria

Vietnam

Brazil

Japan

Saudi Arabia

Malaysia

United States

United Kingdom

Canada

Italy

India

Indonesia

Russian Federation

Germany

Mexico

France

7.33%

4.56%

2.82%1.64%

47.50%

20.90%

15.25%



7

opera mediaworks mobile report q3 2013

Technology