report opera mobile

The State of Mobile Advertising

2. A deep dive into the United Kingdom — the top performing market in Europe

3. What’s next in mobile ad creative, featuring examples from two global automotive brands

Q3 2012

1© Copyright 2012, Opera Software ASA. All rights reserved.

Insights from OperaThe world’s leading mobile ad platform

sites & applications

10,000 + 40 BILLION +ad impressions per month

$400 MILLION + projected revenue to

mobile publishers in 2012

Advertisers include …Publishers include …

In this edition of the State of Mobile Advertising report, based on data collected from Opera’s subsidiaries AdMarvel, Mobile Theory and 4th Screen Advertising, we will cover insights from the third quarter of 2012, with a focus on three key areas of business:

1. A look at monetization across devices, geography and publisher category

OS share % of traf c % of revenue eCPM

Other 20.04% 19.67% $1.28

25.66% 16.79% $0.88Android

46.37% 58.40% $1.64iOS

3.53% 0.99% $0.37Symbian

4.40% 4.15% $1.06RIM

30.43% 34.38% $1.48- iPhone

5.08% 17.19% $4.42- iPad

10.81% 6.83% $0.82- iTouch


Symbian

3.35%

RIM

4.40%

Other

20.04%

Android

25.66%

iOS

46.37%


iPhone continues as the top OS in monetization performance

Once again, this quarter, iOS leads the pack in monetization performance with an averageeCPM of $1.64. This outperforms the global average eCPM of $1.31 by over 25%.

Traf c share

Social

Business, Finance & Investing

Music, Video & Media

Games

Computers & Electronics

News & Information

Sports

Arts & Entertainment

Health, Fitness & Self Help

Other

6.25 12.5 18.75 25



Sports = No. 1 category for mobile ad revenueMobile apps drive 73% of revenue across the platform

Business, Finance & Investing continues to generate the most revenue per impression

The overperformance of mobile web is attributed to the relative scarcity of impressions, which results in a higher eCPM for publishers.

Among all of the publisher categories, Business, Finance & Investing generates more revenue per impression than any other publisher category. However, this last quarter, the rapidly growing Sports category — closely followed by Music, Video & Media — caught, and then overtook, the Business category in terms of total revenue.

One noteworthy trend to watch isthe fast trajectory of total Social Media impressions. As publishers in this category enhance and optimize their ad offerings, look for levels of monetization to climb accordingly.

Social




News & Information

Sports

Health, Fitness & Self HelpGames


Other

% of revenue

Site category

% of impressions

0

North America is the home of 7 out of 10 mobile ad requestsAcross the Opera platform, North America (United States & Canada) continues to generate thevast majority of ad requests (70%).


eCPM by region

Global average eCPM

US eCPM

EU5 eCPM

Rest of World

$1.31

$1.37

$1.13

$0.73


Vietnam

Ukraine

France (EU5)

China

South Africa

Netherlands

Saudi Arabia

Germany (EU5)

Singapore

Nigeria

Malaysia

Brazil

Philippines

Spain (EU5)

Republic of Korea

Top 25 countries by impressions

United States

Indonesia

Canada

United Kingdom (EU5)

India

Russian Federation

Japan

Mexico

Italy (EU5)

Australia

Africa

Middle East

Asia Paci c

European Union

Central & Latin America

North America70%

2% 2%

1.3%

14%

10%

While the list of top countries is similar to that of Q2,the average ll rate improved from 85.2% to 87.4%.

One area of particular interest is the widening gap between the average eCPM of US and EU5 countries and that of the global and “Rest of World” (ROW) countries. InQ2, we saw the EU5 eCPM rate almost identical to the global average, while the ROW average was approximately17% less than the global average. Today, we find the EU5 below the global average with the ROW trailing by almost44%.


Deep dive into the United Kingdom: Mobile as a culture companion,wellness tool

The United Kingdom is our best performing market in Europe, ahead of Italy and France. It’s a market with much promise: according to the latest Internet Advertising Bureau UK (IAB) advertising expen- diture report, mobile ad spend grew 132% year-over-year to reach $291.6 million in the first half of 2012. Mobile now accounts for 7% of all digital ad spend in the United Kingdom.

We took a deeper look at the types of impressions across our UK traffic and found that UK mobile users are similar to the rest of the world in that their top destinations are Social Networking (30%) and Music, Video & Media (22.5%) sites and apps. Comparatively, visits to these categories are slightly higher than the global average.

However, UK mobile users are considerably less likely than their global counterparts to play games, consume content about computers & electronics and use their phones for sports information. They are more likely to interact with content in the Arts & Entertainment and the Health, Fitness & Self Help categories.


Social



Games

News & Information


Sports


Health, Fitness & Self Help

Other

7.5 15 22.5 300

UK users Global average

Impressions


Strong showing for UK smartphone usage

While the rest of the world, particularly the United States, seems to be moving away from RIM’sBlackBerry device, UK adoption is still strong. Traf c from BlackBerry devices isnearly 4 times that of the US levels.


53.9%of UK traf c comes

from BlackBerry

14%of US traf c comes

from Blackberry


What’s next in Mobile Creative?

Perhaps the most exciting part about mobile advertising is the opportunity to be truly creative, the ability to use (and even invent) entirely new types of ad units and visual experiences that push consumers to interact and engage with the brand.

As we noted in Q2, campaigns that take full advantage of the sophisticated capabilities of modern smartphones (e.g., HTML5, camera, video) result in higher dwell times and interaction rates post-click.

This quarter, we’ve observed from our most successful creative campaigns that those that emphasize fun and simplicity catalyzed the most user interaction and brand stickiness, while innovative, new ad units delivered click-through rates of 5% and higher. They also generated the most revenue and publisher satisfaction.

These best practices are illustrated below, in two campaigns we ran in the United Kingdom for two global automotive brands.

Challenge the user’s expectations. For Mazda, we used a “break-in” unit that enters from the outside and places the ad in position. The expanded unit dynamically drags the ad across the screen, causing surprise, as the user is accustomed to the static screen content of their mobile web browser.

Appeal to the senses.Mazda’s robotic arm effect was visually satisfying because of the movement, and Fiat’s bright, bold colors served to add an elementof fun to its campaign – alsoin alignment with the nature ofthe brand.

Invite the user tocreate and customize.Mobile users are accustomed both to playing games and creative expression such as taking photos, sketching or even including emoticons within email and text messages. Ads that allow them to continue to play and create on their phones offer incredible brand engagement opportunities. The Fiat campaign, for example, allowed consumers to swipe the color onto the car, letting them customize the image as they would want to customize their cars in real life.


Mobile Creativebest practices

SHOW REEL

MazdaDynamic creative demonstrating the car as strong, but light.

Fiat 500A swipe changes the color of the car, showing customizability

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