Opera Mediaworks State of Mobile Advertising report - Q4 2012

In this edition of the State of Mobile Advertising report, we provideour usual insights to mobile ad monetization by device, geographyand publisher category, based on data from the Opera Mediaworks mobile ad platform during the last quarter of 2012. However, we also investigate several indicators of changes in the market, as a way to identify three emerging trends to keep a close watch on in 2013.

The growth of Android as a platform that is driving the acceleration of ad requests and impression volume

The emergence of the Russian Federation as a vibrant mobile ad market

The rapid adoption of more sophisticated devices driving equallyrapid innovation in ad units

Advertisers include …

Insights from Opera Mediaworks The world's leading mobile ad platform

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Publishers include …

sites & applications

12,000 + 50 BILLION +ad impressions per month

$400 MILLION +in revenue to mobile publishers in 2012

The State of Mobile Advertising | Q4 2012

© Copyright 2013, Opera Mediaworks. All rights reserved.


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Opera Mediaworks is theworld’s leading mobile advertising platform, helping to powerthe global mobile economy.We improve ef�ciency, through technology, innovation, transparency and trust, to create an open and vibrant marketplace for publishers and advertisers across the globe. Opera Mediaworks includes AdMarvel, an ad-serving and mediation platform; Mobile Theory,a premium mobile ad network in the US; and 4th Screen Advertising Ltd., a premium ad network in the United Kingdom. Also included are impressions served within Opera mobile properties, including the Opera Mini Smart Page and the Opera Mobile Store. Opera Mediaworks is a member of the Opera Softwarefamily of companies.

Q4 was a record quarterThe fourth quarter represented more than a two-times increase in impressions and revenue to publishers compared to any other quarter in 2012. This re�ects the magnitude of marketing and advertising spend during this quarter,associated with the seasonal impact of holiday shopping.

Requests

Revenue

Growth in Total Requests and Revenue to Publishers

240%

220%

200%

180%

160%

140%

120%

100%Q1 Q2 Q3 Q4

% o

f Q

1 R

even

ue &

Req

uest

s


Opera, Opera Software, Opera Mini and 'O'logo are trademarks of Opera Software ASA.

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iOS is still the top OS in monetization — but Androidtakes the lead in mobile phone impression volumeWhen it comes to monetization, iOS continues to outperform other device platforms. It leads the group with the highest average eCPM and providesthe greatest percentage of publisher revenue.

However, with steady increases throughout 2012, Android emerged late inthe year as the leading mobile phone OS as measured by impression volume.The growth in Android impressions was partly driven by the introduction of the Samsung Galaxy S III, a device that now accounts for 9% of all Android traf�c.

iOS

41.91%

Android

30.94%

Other

14.40%

Symbian

9.01%

RIM

3.74%

Traf�c Share (mobile phone OS)

OS Share % of traf�c % of revenue

Other 14.40% 13.20%

7.01% 3.26%

30.94% 29.97%

iOS

9.01% 1.69%Symbian

3.74% 4.12%RIM

Android

41.91% 51.02%

- iPhone 29.08% 37.28%

- iPad 5.82% 10.49%

- iTouch



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Music, Video & Media is #1 Category for impression volumeAmong all publisher categories, Arts & Entertainment now generates the most revenue (17.18%), taking a thin lead over Music, Video and Media (17.15%). However, in termsof impression volume, Music, Video and Media is No. 1, with 21.4% of all impressions. Business & Finance continues to produce the most revenue per impression.

Site Category

Social

Business, Finance & Investing

Music, Video & Media

Computers & Electronics

News & Information

Sports

Health, Fitness & Self Help

Games

Arts & Entertainment

Other

% of Revenue

% of Impressions

Social

Business, Finance & Investing

Music, Video & Media

Games

Computers & Electronics

News & Information

Sports

Arts & Entertainment

Health, Fitness & Self Help

Other

6.25 12.5 18.75 250

#1 Impressions

#1 Revenue



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Ad requests and impression volume is acceleratingacross multiple geographiesAcross the Opera Mediaworks platform, North America (USA & Canada) continues to drive the majority of ad requests (64%). Compared to Q3 2012, when North America generated 70% of all requests, we can see that the lead is shrinking.

Vietnam

Nigeria

South Africa

Australia

France

Germany

Spain

Brazil

Pakistan

Malaysia

Top 20 Countries by Impressions

United States

Indonesia

United Kingdom

Russian Federation

India

Canada

Italy

Mexico

Ukraine

Japan

Africa

Middle East

Asia Paci�c

Europe

Central & Latin America

North America

3.39%2.20%

63.96%

1.45%

14.61%

14.40%

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One of the most noticeable growth markets emerging over the last few months is the Russian Federation.

Midway through 2012, the RussianFederation was No. 7 in our list of markets with the most ad requests. It is now No. 4, after ad impressions increased over 60% from the end of Q3 to the end of Q4 2012.

This growth closely parallels the uplift in adoption of Android devices in the Russian Federation, which we saw rise over 22% in the same time period.

This shrinking U.S. share of ad requests andimpressions is due to the growth in international traf�c.

Non-U.S. Ad Impressions

Aug Sep Oct Nov DecJuly

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Innovative ad units capitalize on enhanced device capabilitiesAs smartphones proliferate and more consumers’ handheld devices contain features such as voice recognition, new-to-market gestures, social sharing and even augmented reality capabilities, the opportunity for creative ad units and campaigns appearslimitless. Below are two examples of rich media campaigns we created and executed on our mobile-ad platform that take advantage of the sophisticated features of today’s mobile devices.

Madagascar 3 Theater ReleaseThis DreamWorks Animation 3D movie was released in the United States inJune. The studio sought to generate excitement about the movie with an interactiveentertainment experience that let the user play with and learn more about themuch-loved characters. With camera overlay, video, animation and social sharing, the rich media execution leveraged the phone’s inherent features to pull the user deep into the experience.

Sour Patch Kids – UK LaunchGiven the 8% growth of pocket candy sales and 15% growth of the “sours”category, Kraft Foods decided to introduce a rebranded version of the well-known U.S. line of candy, Sour Patch Kids, to the U.K. market. The campaign portrayed the concept of “Sour, then Sweet” with animated �gures “breaking the glass” on thephone – including a sound effect – only to immediately �x it with Band-Aids.

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Documents

Opera Mediaworks State of Mobile Advertising report - Q4 2012