APAC - The state of mobile Advertising - Q2, 2015

8/20/2019 APAC - The state of mobile Advertising - Q2, 2015

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In the past decade, Asia4 has stood out as a world leader in mobile innovation, leading the global adoption of

many mobile devices and services. Its dive into mobile advertising is no exception.

While much of the growth and adoption of mobile advertising has been fueled by the strength of the mobile

ad market in Japan, Korea and China, we have seen significant growth in the four countries of India, Indonesia

the Philippines and Vietnam. We have grouped these countries into a sub-region called The Power 4, or P4

www.operamediaworks.com [email protected]

THE STATE OF MOBILEADVERTISING - Q2, 2015APAC

Vietnam

Philippines

Indonesia

India

Population 20141 Internet adoption2 Share of Asia internet users2% of internet users

mobile capable3OMW share of mobile users

2.29% 43.90% 2.92% 57.56% 43.38%

2.53% 41.10% 3.15% 58.42% 38.27%

6.38% 28.10% 5.07% 93.16% 72.53%

31.99% 19.70% 17.30% 77.48% 43.90%

1. http://www.worldbank.org, 2014

2. http://www.internetworldstats.com/stats3.htm

3. Based on eMarketer estimates of smartphone users by country (2014), added to users of Opera Mini / Internet World stats estimate of internet users

4. As defined by the United Nations, with the exception of Western Asia which we refer to as the Middle East. Refer to page 11 for a full list.

Insights presented by Opera Mediaworks in partnership with the Mobile Marketing Association


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Part 1: Mobile-device use and market share

The P4 countries represent 43% of the population of Asia, yet they account for less than 30% of regionalinternet users. However, over 76% of these users access the internet using a mobile device. This group is led

by Indonesia, where we estimate a remarkable 93%1 of internet users can access the web via a mobile device

Despite the slower adoption of the mobile web (compared to Japan and Korea), the use of smartphoneshas seen impressive growth in the last two years. As shown in the chart, smartphone ownership hasincreased by over 545% since the beginning of 2013.

Asia has consistently been one of the top markets, both in terms of unique users accessing the OperaMediaworks platform for advertising and for the number of impressions served to those users. Opera’sreach within this market is approximately 400 million unique users each month, across both apps and

mobile web.

www.operamediaworks.com page 2

1. Based on eMarketer estimates of smartphone users by country (2014), added to users of Opera Mini / Internet World stats estimate of internet users

70%

60%

50%

40%

30%

20%

10%

0%1 2 3 4 5 6

2013 2014 2015

8 9 10 11 12 1 2 3 4 5 6 77 8 9 10 11 12 1 2 3 4 5 6

Smartphone adoption within Opera’s audience reach in the “P4”

S m a r t p h o n e s


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100

90

80

70

60

50

4030

20

10

0

700

600

500

400

300

200

100

0

Asia “P4” audience use of mobile devices

Indonesia, the Philippines lead in page views, Vietnam in data use

Compared to global averages, as seen in our Q2 State of Mobile Advertising report, use of mobilewebsites and apps tends to be lower in the P4. However, this sub-region is on par with the rest of Asia, an

both the Philippines and Indonesia exceed the global average for page views consumed per user. Vietnamtrails the average volume of page views by a significant margin, but it has a sizable lead in data consumptionwith each user in Vietnam using 85 MB per month – very close to the global average of 90 MB/month.

“Other” devices still prevail in Asia and P4 sub-region

The Asia region and the P4 have a much higher percentage of “other” devices (i.e., those with operatingsystems other than iOS or Android) than our global user base.

These devices tend to monetize at lower rates than Android or iOS, and they also tend to drive fewerimpressions per user. However, in Asia – and more specifically, in our P4 region – these devices do drive

a significant number of impressions.

Additionally, while the Asia region has easily maintained pace with the rest of the world in the adoptionof Android devices, adoption of iOS has been much slower, leaving a large, untapped smartphone marketopportunity.

India Indonesia Philippines Vietnam Asia Global

PV/User

MB

M e g a b y t e s p er u s er P

a g e v

i e w s p e r u s e r

Other

iOS

Android

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Unique users by OS platform

IndiaIndonesiaPhilippinesVietnam Global

% u

n i q u e u s e r

s


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1.2:1

1.0:1

0.8:1

0.6:1

0.4:1

0.2:1

0.0:1

1.0:1

0.68:1

0.47:1

0.69:1

1.07:1

0.41:1

Demand for mobile video in the P4

Globally, we have witnessed increaseddemand for and rapid adoption of mobilevideo-ad units. Within the P4 region, thePhilippines has the highest ratio of video-adimpressions compared to the volume of allimpressions served in its market, and it alsoexceeded the expected global standard(ratio of 1:1). Both India and Vietnam

exceeded the average across all of Asia(0.41:1).

Impressions by OS platform

Use of mobile video advertising

Android is market leader for impressions

Looking at the market share of each operating system (as measured by impressions served), it is clear thatAndroid is dominating the market, driving the lion’s share of impressions globally, regionally (Asia) and also

within the P4.

The no. 1 obstacle to revenue growth

Due largely to the continuing presence (and large marketshare) of “Other” devices, which monetize at lower rates,the Asia region and the P4 both fall below the globalaverages for monetization potential, or the ratio of money

earned to impressions served.The P4 ratio of percentage of revenue to percentage ofimpressions is 0.47:1, just under that of APAC (.49:1).


Other

P4

Global

Asia

iOS

Android

0% 10% 20% 30% 40% 50% 60% 70% 80%

India Indonesia Vietnam Philippines Asia region

R a t i o o f v i d e o i m p r e s s i o n %

t o t h e

p e r c e n t a g e o f a l l i m p r e s s i o n s

30%

20%

10%

0%

Impressions and revenue by region

Revenue Impressions

P4 Asia


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1. Source: Based on survey responses from over 260,000 Opera mobile device browser users from P4 countries, and Opera Mediaworks research.

Part 2: Mobile consumer behavior and trends

Demographics

Frequent vs. occasional users

We categorized mobile users into three groups:

1. “High” frequency users, who access mobile sites and apps five or more days each week

2. “Regular” users, who access mobile sites three or four days per week

3. “Low” volume users, who access mobile sites one or two days in a week

In our findings, we saw that both Vietnam and Indonesia have a higher percentage of high-frequency users

than the global average, while India and the Philippines contain more low-frequency users. Interestingly

the “regular” frequency group for the P4 are all similar in market share and are also quite close to the

global average.

% of total users in one week


0%

10%

20%

30%

40%

50%

60%

High

Low

Regular

Global India Indonesia Philippines Vietnam

Vietnam• Average age: 21 years old

• 50% are 19 years old or younger


India• Average age: 22.6 years old

• 50% are 18-23 years old

65.3% 34.7% 85.9% 14.1%

Indonesia• Average age: 24 years old


Philippines• Average age: 21 years old


76.4% 23.6% 54.5% 45.5%


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Most popular types of mobile content

Considering the volume of active users, there are five media categories that lead the pack across theP4 region:

1. Social Networking2. News & Information

3. Arts & Entertainment

4. Business & Finance

5. Technology & Computing

However, as shown in the chart, user interest in these categories varies significantly within the sub-regionand also when compared to our global data set. For instance, when compared to the global average:

• Social Networking is far more popular in the Philippines than other markets, but interest in other categorieswanes, particularly for News.

• Indonesians also top the global average for Social Networking use, but far outpace the rest of the world whenit comes to consumption of Business content.

• Vietnam shows a strong preference for News.

• In India, mobile users are visiting more sites and apps in the Music, Video, Media & Entertainment and the

Technology & Computing categories than the average global user.


-80%

-60%

-40%

-20%

0.0%

20%

40%

Social Networking

News & Information

Music, Video, Media

& Entertainment

Business, Finance

& Investing

Technology &

Computing

Global

India

Indonesia

Philippines

Vietnam

% o

f u n i q u e u s e r s

Percentage of total unique users accessing site/app category


7/11

9

8

7

6

5

4

3

2

1

0

0 2 4 6 8 10 12 14 16

Diversity of mobile consumption

Do mobile users in these countries spend most of their time and attention on one or two types of mobile

content, or do they have a broad set of interests? We examined the dispersion of users across site andapp categories. The chart above compares the dispersion of each country's users' page views across sites(vertical axis) with the dispersion of unique users across sites (horizontal axis). The horizontal axis can beenvisioned as how many different sites the average user visits. The vertical axis depicts the extent towhich users disperse their page views across the different sites they visit.

We found that:

• Indonesian users have a broad range of interests, with significantly more users engaging in cross-site/ap

activity than our global average (or the Philippines, where cross-site interest is low). As such, cross-site

behavioral advertising has the greatest potential in Indonesia.

• Vietnam, while having a low level of cross-site activity, are extremely loyal and, therefore distribute their tota

page views across a small group of sites and apps. So, in Vietnam, contextual targeting would be the most

successful approach.

• Filipino users focus their interests and their page views on a very small, select group of sites and apps, making

success in advertising dependent on close partnerships with those top publishers.

Variance across the population

India

Indonesia

Vietnam

Philippines

I n d e x b a s e d o n d i s p e r s i o n o f p a g e v i e w s a c r o s s s i t e s

( b a s e d

o n p

o p u l a t i o n v

a r i a n c e )

Index based on dispersion of users across site categories

(based on population variance)


Global


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45%40%

35%

30%

25%

20%

15%

10%

5%

0%

Part 3: Traffic and revenue breakdown

Top media categories, by overall traffic volume

On a global level, Social Networking is the top category in terms of total mobile traffic, as measured byimpressions. This holds true as well in the P4 region, where 26.5% of all impressions are served on SociaNetworking sites and apps.

However, when it comes to revenue, there is a big difference. Globally, Social Networking leads in totarevenue generation, but in the P4 region, Business, Finance & Investing sites and apps are the clear winnerThey are responsible for nearly 42% of the revenue paid to publishers across the P4 sub-region.

Revenue winners: Business & Finance, Communication Services

When we compare the top media categories in the P4 region with the global market, we find some significantdifferences around share of impressions served and the amount of revenue delivered to publishers.

As seen in the graph on the previous page:

• Social Networking leads for impressions served in both the global and P4 sub-markets, but it falls well short

of the lead position for revenue generation across the P4 countries.

• News & Information, while a solid performer in both markets for impressions, underperforms when it come

to revenue generation.

• In contrast, the Business, Finance & Investing category, as well as the Commmunication Services category,performs much better in the P4 than globally for both impression volume and revenue generation.


0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Social

Networking

News &

Information

Business,

Finance &Investing

Sports Communication

Service

Games Music, Video,

Media &Entertainment

Shopping

Revenue

Impressions

Global impressions

Global revenue

P4 impressions

P4 revenue

Social Networking

News & Information

Business, Finance & Investing

Sports

Communication Service

Games

Music, Video, Media & Entertainment

Shopping


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Monetization tactics and levels vary by category, country

Given the variable levels of interest and degrees of engagement in each media category shown by each of

the countries in the P4, it is not surprising that there are are significant differences in monetization models

The chart below shows the top three publisher categories in each country and compares them by percentageof users engaging with that media category (bubble size), the relative eCPM paid for impressions byadvertisers and the percentage of impressions the site category generates on our platform.

Here we can see:

• There is a wide range of eCPM paid to publishers in the region. At the high end of the range is the Games

category, fueled by the Vietnamese market. In fact, Vietnam is the only country in the P4 where Games rankedin the top three. Globally, the Games category also demands a fairly high premium, but it does not drive nearlyas large of a percentage of our global impression volume, so Vietnam is somewhat unique in this regard.

• Having a large number of users does not necessarily drive higher eCPM. Social Networking sites and apps had

the greatest percentage of users in each of the countries that make up the P4. However, only in the case ofthe Philippines did this leadership position result in the highest eCPM rate. This was true even as the SociaNetworking properties in the Philippines had the lowest percentage of impressions across the entire region

Methodology

Information contained in this report is based on aggregated information obtained from the OperaMediaworks mobile advertising platform and mobile ad exchange servers. The data presented representstraffic and monetization metrics and statistics compiled across multiple advertising campaigns deliveredby us to our mobile publisher customers. The data includes ads requested from and delivered by us onbehalf of multiple ad networks as well as directly sold campaigns created by our customers themselves.Country level details are based on IP addresses of the originating ad requests as forwarded to us by ourmobile publisher/app developer customers. Device details are similarly based on device user agents

provided by these same customers.

India

Philippine

Indonesia

Vietnam

% o

f i m

p r e s s i o n s s e r v e d

eCPM Index


0 1 2 3 4 5

Games

Business, Finance & Investing

Social Networking

Social Networking

Social Networking

News & Information

News &

Information

Bubble size is % of users engaging with site category

Sports

CommunicationsService

CommunicationService

Music, Video, Media & Entertainment

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Music, Video,Media &

Entertainment


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Campaign Spotlight

The AskMeBazaar mobile engagement campaign is first in its class. No other brand or

company has ever customized a mobile campaign to this extent, from the first contact withthe consumer to the targeted delivery of specific creative developed for the user. It

succeeded in disrupting the e-commerce market in India and it also demonstrated thepower of utilizing great technology and consumer insights to redefine a sector.

The goal:AskMe, known primarily as India’s Yellow Pages, wanted to challenge the market inIndia by launching AskMeBazaar.com to be the e-commerce site of choice

among all consumers.

The target audience:India’s 55 million active Opera mobile browser users

The strategy:

Opera Mediaworks, together with AskMeBazaar, studied how to attract the new brands’ early adopters and the m-commeheavy users by leveraging the catalog offering of AskMeBazaar.

Over 12 audience segments (personas) were identified and served only the most relevant ads with customized product

categories by using “Surf DNA,” our proprietary targeting technology, which attracted the best transacting customers andincreased campaign efficiency in a major way.

For example, one of the audience segments, identified as the “High Rollers” segment, were served specific advertisements frelevant products such as watches and optical wear, luxury bags & luggage, jewelry, art & decorative items, furnishings,

laptops, fitness equipment, etc.

More than 1,500 creatives were delivered each week to the targeted audience segments. Over 200 campaigns ran across t12+ specific audience segments with matching 34 categories of relevant products found on AskMeBazaar.

The results:

Combining the insights from user behavior, AskMeBazaar was able to

provide the best-performing products (deals), add similar deals, and,

more importantly, remove non-performing products.

Watch a video highlighting the AskMeBazaar campaign:

https://vimeo.com/136583923

BRAND IMPACT LEAD GENERATION

12 billion impressions delivered over 6 months

55 million unique users, 40% audience share

11% engagement

45million visits, driving 80% of total sales on mobile

200 sales/day to over 3,800 sales/day

260K+ unique transactions during the campaign


https://vimeo.com/136583923https://vimeo.com/136583923https://vimeo.com/136583923


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Asia as defined by the UN1

Southern AsiaAfghanistan

BangladeshBhutan

IndiaIran (Islamic Republic of)

MaldivesNepalPakistan

Sri Lanka

South-Eastern AsiaBrunei DarussalamCambodia

Indonesia

Lao People's Democratic RepublicMalaysiaMyanmarPhilippines

SingaporeThailand

Timor-LesteViet Nam

Central AsiaKazakhstan

KyrgyzstanTajikistanTurkmenistan

Uzbekistan

Eastern AsiaChinaChina, Hong Kong Special Administrative Region

China, Macao Special Administrative RegionDemocratic People's Republic of Korea

JapanMongoliaRepublic of Korea

Not IncludedWestern Asia

ArmeniaAzerbaijanBahrain

CyprusGeorgia

IraqIsrael

JordanKuwaitLebanon

OmanQatar

Saudi Arabia

State of PalestineSyrian Arab RepublicTurkeyUnited Arab Emirates

Yemen

1 http://unstats.un.org/unsd/methods/m49/m49regin.htm


Documents

APAC - The state of mobile Advertising - Q2, 2015