Incisive Mobile Strategies Breakfast BriefingNovember 2012

AOP In SummaryThe Voice of Premium Digital Publishers

AOP represents digital publishing companies that create original, branded, quality content

Improving the way digital publishers run and develop their businessesFacilitating the share of knowledge and cross-fertilisation of ideas

Core ActivitiesMarket leading events

Professional research & benchmarking Unmatched networking

AOP Board Members

AOP B2B Members

Observations on the growing importance

of mobile

Mobile trajectory

Mobile internet

In the UK 16% of web traffic is from mobile devices

Mobile extending the day

Mobile consumption -Did you know• Google is activating 1.3m Android devices a day

• Each new version of the iPhone sells as much as all previous versions combined

• Time spent using mobile (incl internet) has more than doubled in the last two years

• Tablet users on average spent 30% more time on-site and had a 20% higher engagement score than PC users

• Smartphones influence 6% of UK in-store purchases

Mobile Advertising

Worldwide, mobile ad spending should hit

$6.4 billion this year

UK Mobile ads 2012

£181.5m

+132%H1 2012

Search 73%

+152%H1 2012

Display 27%

+91%H1 2012

7% digital ad spend nowForecast £1.6bn 2016

Mobile ads – higher CTR greater engagement

Rich media CTR 3x

Mobile CTR 3-5x vs desktop web

55% of digital magazine readers engaged Half interacted with the ad

38% touched/clicked ad to expand it34% viewed multiple pages of a multi-page ad34% accessed a Web site through the ad31% watched a video or commercial30% viewed a gallery 30% downloaded an app.

How well are we equipped?

40%6 out of 15

And it’s 42 days till Christmas!

The Publishers view

74% agree Future focus will be increasingly on developing mobile sites and apps and tablets and apps than traditional desktop sites for internet

majority of sites optimised for mobile

62%

Opportunities for next 12 months

Mobile ads

Apps for smartphones

Apps/digital editions for tablets

Mobile internet

iPad/other tablets

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

73%

76%

81%

85%

90%

Top Mobile Business Priorities for 2012

Streamline Integrations and Reporting

Reach New Mobile Users

Deepen Engagement with Existing Users

Grow Revenues

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

0%

9%

24%

65%

Growth Priorities

57% Advertising

40% Paid content/subs

Mobile traffic and Mobile revenue

mobile revenue

mobile traffic

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

3% 65%

3%

26%

10%

3%

26%

0%

6%55%

0%1-5%6-10%11-20%21-30%31-50%

87%

29%

32%

3%

Mobile revenue types

0%

10%

20%

30%

40%

50%

60%

70%

55%

26%

52%

26%

32%

68% 68%

39%

10%

26%

16%

Most significant models of next 12 months

unique mobile ad formats in-app purchase

in-app ads

0%

5%

10%

15%

20%

25%

30%

35%

40%

39%

29%23%

Main issues affecting mobile development

Developing responsive design

Managing Multiple Tech Partners (Ad Serving, Yield Management, Ad Networks, etc)

Integrating Mobile with Current Sales Effort

In-house skills and resource

Device Fragmentation (Smartphones, Tablets, Feature phones)

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

41%

44%

47%

56%

72%

The main inhibitors to mobile advertising

formats & reporting

size of audience

creation of interactive ads

sales skills in-house

dependency on low yield ad networks

agencies attitude towards or focus on mobile

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

28%

52%

17%

31%

10%

52%

28%

31%

34%

38%

52%

55% MobileTablet

AOP Mobile initiative

focus on key issues that will encourage growth of mobile advertising

on premium content sites

Tim Cain

@ukaop@timrcain

Thanks