- 1. Tablet Video AdvertisingThe Future of Tablets, CTIAMay 8,
2012John FletcherSenior Analyst1
2. Outline Perspective iPad video app trends Checking in with
Social TV (Second Screen) Mobile video ad targeting, formats and
metrics User experience 2012 SNL Kagan, a division of SNL Financial
LC, estimates. All rights reserved. 2 3. Perspective, U.S.
Advertising Revenue Total Advertising
InternetAdvertisingMobileAdvertising $2.4 bil. $31.0 bil.$218.1
bil. 2012 SNL Kagan, a division of SNL Financial LC, estimates. All
rights reserved. 3 4. Perspective: Tablet Timeline 196
B.C.1980s-1990s200120102011 2012 SNL Kagan, a division of SNL
Financial LC, estimates. All rights reserved. 4 5. Perspective:
U.S. Tablet Users~ One in ten Americans owns a tabletEarly Adopters
2012 SNL Kagan, a division of SNL Financial LC, estimates. All
rights reserved. 5 6. Perspective: Mobile Video SubscriptionsWha
Appened?(000)125,000Smartphone users100,000 Tablet usersWireless
operator75,000mobile video subs*50,00025,0000
20072008200920102011Note: U.S. subs. *Includes only users paying
additionally each month for a carrier-branded mobile video
subscription service. Excludessubscribers of bundled access data
services that include access to mobile video but that users do not
access. 2012 SNL Kagan, a division of SNL Financial LC, estimates.
All rights reserved. 6 7. Perspective: Ironic Wireless Data
TrafficFeb. 2012, BytemobileAll OtherVideo 50%50% 2012 SNL Kagan, a
division of SNL Financial LC, estimates. All rights reserved. 7 8.
Perspective: CulpritsLeading Mobile Video Bandwidth Hogs: YouTube
Netflix Hulu Plus Amazon Prime Inst. Vid. Crackle Vevo Slingbox
DTC: HTML websites Other OTT Eventually TV Everywhere 2012 SNL
Kagan, a division of SNL Financial LC, estimates. All rights
reserved. 8 9. App Trends Average app Prices iPad video app trends
2012 SNL Kagan, a division of SNL Financial LC, estimates. All
rights reserved. 9 10. App Trends: App PricesAverage iPhone App
Prices Average iPad App Prices$3.00
$4.60$4.40$2.50$4.20$2.00$4.00$1.50$3.80$1.00 $3.60Q1 Q2 Q3 Q4 Q1
Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 2009
20102011 2012 SNL Kagan, a division of SNL Financial LC, estimates.
All rights reserved.10 11. App Trends: Caution, Eye Charts Ahead
2012 SNL Kagan, a division of SNL Financial LC, estimates. All
rights reserved. 11 12. Top Grossing Hollywood iPad Apps, Q1
2012WeeklyRank Content ProducerApp(s)Instances Genre(s)in Top
100Walt Disney (Disney Publishing Wheres My Water? (12) ($.99),
Hidden Objects: Gardens of Entertainment,117Worldwide
Applications)Time (5) (Free) GamesCapcom Interactive, Peyo,2Smurfs
Village (Free) 13 GamesLafig BelgiumNews Corp. (Fox Mobile, Rovio,
Angry Birds Rio HD (13) ($2.99)13 GamesNYP Holdings) Team Umizoomi
Math: Zoom into Numbers HD (12) ($6.99),Education, Books,Viacom
(MTV Networks) 13 SpongeBobs Super Bouncy Fun Time HD
($3.99)GamesPeanuts Worldwide, CE Europe,5Snoopys Street Fair
(Free)12 GamesBeeline InteractiveSling MediaSlingPlayer for iPad
($29.99)12 Entertainment7 National Geographic SocietyNational
Geographic Magazine (Free)11 Reference, Books8 Pandora MediaPandora
(Free) 6MusicMajor League Baseball9MLB.com At Bat
(Free)4SportsAdvanced Media Midway Arcade (2) ($.99), Batman Arkham
City LockdownWarner Bros. Entertainment4Games ($2.99), LEGO Harry
Potter: Years 1-4 ($2.99) 11 Sony Pictures Television Wheel of
Fortune HD ($4.99)3GamesTurner Broadcasting System 12NCAA March
Madness Live (Free)2Games(Cartoon Network)Dr. Seuss Enterprises
13The Lorax - Dr. Seuss ($.99) 1Books(Oceanhouse Media)Python
(Monty) Pictures Ltd. Monty Python: The Holy Book of Days
($4.99)1Entertainment(Melcher Media)Television Food NetworkFood
Network In the Kitchen ($1.99)1LifestyleTHQ, World Wrestling
Entmnt. WrestleFest HD ($3.99) 1Games Source: SNL Kagan analysis of
Apple iTunes data. 2012 SNL Kagan, a division of SNL Financial LC,
estimates. All rights reserved.12 13. Hollywood Paid iPad Leaders,
Q1 2012WeeklyRank Content Producer App(s)Instances in Genre(s)Top
100Team Umizoomi Math: Zoom into Numbers HD (13), Doras Skywriting
ABCs (9), Monkey Education,1 Viacom (MTV Networks,
Nickelodeon)Quest: Thunderbow HD (3), Doras Enchanted Forest
Adventures (HD) (2), SpongeBobs28 Books, GamesSuper Bouncy Fun Time
HDScribblenauts Remix (13), Midway Arcade (3), LEGO Harry Potter:
Years 1-4 (3), Batman2 Warner Bros. Entertainment21 GamesArkham
City Lockdown (2)Public Broadcasting Service (Sesame WorkshopElmo
Loves ABCs for iPad (10), SUPER WHY! for iPad (7), The Monster at
the End of This3 19 GamesApps, PBS Kids) Book...starring Grover!,
Another Monster at the End of This Book...Starring Grover &
Elmo!Walt Disney (Disney Publishing WorldwideWheres My Water? (13),
The Lion King: Timons Tale (2), Puffle Launch, Toy Story 3:
Entertainment,4 17Applications) Operation Camouflage
GamesDreamWorks Animation LLC (FrogDogMedia,5 Fruit Ninja: Puss in
Boots HD (13)13 Games, Bookszuuka, Halfbrick Studios)News Corp (Fox
mobile, Rovio, NYP Holdings) Angry Birds Rio HD (13) 13
GamesSkyfire LabsSkyfire Web Browser for iPad13
UtilitiesTuneInTuneIn Radio Pro13 MusicThe Lorax (3), Green Eggs
and Ham - Dr. Seuss (2), The Cat in the Hat - Dr. Seuss, Oh, the9
Dr. Seuss Enterprises (Oceanhouse Media)7BooksPlaces Youll Go! -
Dr. SeussFood Network In the Kitchen (5), In the Kitchen: Food
Network Recipes, Chefs, Cooking ToolsTelevision Food Network
7Lifestyleand Shopping Lists (2) 11 CBS (CBS Mobile, CBS
Interactive) 60 Minutes for iPad (3) 3NewsNational Geographic
Society World Atlas HD (2), Weird But True3Reference, Bks.Turner
Broadcasting System (Cartoon Network)Regular Show - Nightmare-athon
(2), Robot Unicorn Attack3Games 14 Lucasfilm Star Wars Pit
Droids2GamesNBC Universal (Universal Studios, Chillingo,Law &
Order: Legacies, Woody Woodpecker 2GamesWalter Lantz
Productions)Python (Monty) Pictures Limited (Melcher Media) Monty
Python: The Holy Book of Days (2) 2Entertainment 17 Alicia Rivoli
FreeTV HD - Unlimited 1NewsCallaway Digital Arts Thomas &
Friends: Engine Activities
1GamesEPLAYWORKSAVPlayerHD1EntertainmentMarvel Entertainment
(Gameloft) Iron Man 2 for iPad 1GamesParamount Pictures (Gameloft)
The Adventures of Tintin - The Game1GamesScripps Networks (The
Travel Channel) Travel Channel Layover Guide with Anthony
Bourdain1TravelSony Pictures TelevisionWheel of Fortune HD (13),
JEOPARDY! HD1GamesTHQ (THQ Wireless, Inc.)WrestleFest
HD1GamesSource: SNL Kagan analysis of Apple iTunes data. 2012 SNL
Kagan, a division of SNL Financial LC, estimates. All rights
reserved.13 14. Hollywood Free iPad Leaders, Q1 2012 WeeklyRank
Content ProducerApp(s)Instances in Genre(s) Top 100 ABC Player
(13), Wheres My Water? Free (13), WatchESPN (6), Hidden
Objects:Walt Disney (ABC Digital, ESPN, Disney Publishing
Entertainment,1Gardens of Time (5), ABC Family (4), Oscars (4),
ScoreCenter XL (4), Disneyland 54Worldwise Applications) Games,
Travel Explorer (2), Disney Mobile Magic, Cars 2 AppMATes,
Motorcity: DriveTime Warner (Warner Brothers Entertainment, Turner,
News,2CNN App for iPad (12), HBO GO (8), Happy Feet Two: The
Penguin App21CNN, HBO, Time Inc.)Entertainment3 News Corp. (Fox
News Digital, Rovio) Angry Birds Rio HD Free (13), FOX News for
iPad (2) 15 Games, News4 Hulu Hulu Plus 13
EntertainmentNetflixNetflix 13 EntertainmentPandora RadioPandora 13
MusicThe Weather Channel InteractiveThe Weather Channel Max for
iPad13 Weather8 Clear Channel Broadcasting iheartradio for iPad12
Music9 Comcast (Comcast Interactive Media)XFINITY TV 9
EntertainmentEntertainment, 10 NBC Universal (MSNBC Interactive
News) NBC (7), Jaws Revenge8Games, News National Geographic
Magazine (4), National Geographic Traveler Magazine (2), News,
Education, 11 National Geographic Society7 National Geographic
Explorer Travel 12 CBS (CBS Mobile, CBS Interactive, Showtime
Networks) GRAMMY Live, Showtime Anytime, CBS Sports for
iPad3Entmnt., SportsLafig Belgium / Capcom Smurfs Village
3GamesPublic Broadcasting ServicePBS for iPad3Entertainment 15
IMDb.com,IMDb Movies & TV2EntertainmentVEVO LLC VEVO HD
2MusicShazam Shazam for iPad 2MusicSmithsonian Networks Smithsonian
Channel for iPad2EntertainmentCBS / Time WarnerThe CW
Network2Entertainment 20 AppleiTunes Movie Trailers
1EntertainmentBBC WorldwideTop Gear: Wheres Stig? HD1GamesDr. Seuss
EnterprisesDr. Seuss Band1GamesLions Gate Films Hunger Games: Girl
on Fire1GamesNPRNPR for iPad1NewsOur Film FestivalFandor Movies
1LifestyleScripps Networks HGTV Color Guide1LifestyleSpotifySpotify
1MusicViacom (MTV Networks)Kids Choice Awards
20121EntertainmentSource: SNL Kagan analysis of Apple iTunes data.
2012 SNL Kagan, a division of SNL Financial LC, estimates. All
rights reserved.14 15. App Trends Pricing Summary 2012 SNL Kagan, a
division of SNL Financial LC, estimates. All rights reserved. 15
16. Checking in with Social TV AppsWhat do tablets want to be when
they grow up?TV Screens or PCs? Yes. 2012 SNL Kagan, a division of
SNL Financial LC, estimates. All rights reserved. 16 17. Checking
in with Social TV AppsSecond Screen Start upsLaunchedLaunched in
before 2011 past year28%72% 2012 SNL Kagan, a division of SNL
Financial LC, estimates. All rights reserved. 17 18. Checking in
with Social TV Apps GetGlue Active Usersas a % of Total U.S. Pop
1%99% 2012 SNL Kagan, a division of SNL Financial LC, estimates.
All rights reserved. 18 19. Checking in with Social TV Apps Viggle
app offers product discounts for checking into TV programs. Also
for watching mobile video ads on the app. 250K Monthly Active Users
Average app session is 89 minutes. 2012 SNL Kagan, a division of
SNL Financial LC, estimates. All rights reserved. 19 20. Checking
in with Social TV AppsApps hear TV programming and allow users to
dig deeperinto ads or programming via Tablet and Smartphone apps.
2012 SNL Kagan, a division of SNL Financial LC, estimates. All
rights reserved. 20 21. Mobile Video Ad Formats, Targeting &
MetricsLong termInstantBrandingand/orInteractivity 2012 SNL Kagan,
a division of SNL Financial LC, estimates. All rights reserved. 21
22. Mobile Video Ad Formats, Targeting & MetricsMobile Video ad
formats: Banners with embedded video Video ad mid-roll Video ad
preceding content (Pre-roll / In-Stream) Video/banner hybrids
Screen takeovers Banners Overlays Others TDB 2012 SNL Kagan, a
division of SNL Financial LC, estimates. All rights reserved. 22
23. Mobile Video Ad Formats, Targeting & Metrics Targeting is
the No. 1 attribute of what advertisers are lookingfor on mobile
(September 2011 Jumptap/Digiday survey). While operators protect
their subscriber privacy, fivetargeting methods are possible
without carrier consent. 1. Social-targeting: user logs into a
service with Facebook UNand PW, publisher can scrape demographic
details right fromprofile. 2. Content-based targeting matches an ad
with a publishersparticular audience. 3. Carrier-based targeting.
4. Device-targeting: campaigns that run only on iOS, for instance.
5. Location-targeting: ranging from within 100 yards of a user
tosimply being within a certain zip code. 2012 SNL Kagan, a
division of SNL Financial LC, estimates. All rights reserved. 23
24. Mobile Video Ad Formats, Targeting & MetricsCost per
Engagement (CPE), Click Through Rates (CTR), Cost Per Click(CPC),
Cost per Thousand Impressions (CPM), Cost per Acquisition (CPA)($)
Mobile CPMs, US100 80Mobile Video* 60 Premium Display^ 40 20 0
20072008 2009 20102011 *Ranges from $10 to $50+ based on value of
content, targeting criteria and audience. ^Many mobile ad networks
average < $1 CPMs 2012 SNL Kagan, a division of SNL Financial
LC, estimates. All rights reserved. 24 25. Mobile Video Ad Formats,
Targeting & Metrics No Standardized Measurement (Nielsen?
Arbitron?) Post-campaign sales lift CTRs: On desktop a 1-2% banner
CTR is fantastic What happens after the click through? CPE:
normally under $.50 per engagement Mobile has lots of ACT 2012 SNL
Kagan, a division of SNL Financial LC, estimates. All rights
reserved. 25 26. User Experience I hate all advertising! 2012 SNL
Kagan, a division of SNL Financial LC, estimates. All rights
reserved. 26 27. User Experience Apps are easier than WAP, but we
can do better. 2012 SNL Kagan, a division of SNL Financial LC,
estimates. All rights reserved. 27 28. User Experience Context Does
a bad user experience with an ad have thereverse effect on that
brand? 2012 SNL Kagan, a division of SNL Financial LC, estimates.
All rights reserved. 28 29. User Experience Lots of inventory, not
many ads Opportunity to stick out at this early stage 2012 SNL
Kagan, a division of SNL Financial LC, estimates. All rights
reserved. 29 30. Conclusion Its early days Experiment Consumer
experience Consumer experience Consumer experience 2012 SNL Kagan,
a division of SNL Financial LC, estimates. All rights reserved. 30
31. Weve just scratched the surface John Fletcher Sr. Analyst SNL
Kagan 831 622 3814 [email protected] 2012 SNL Kagan, a division of
SNL Financial LC, estimates. All rights reserved. 31
