- Mobile device ownership in the UK has grown significantly, with smartphone ownership reaching 67% in 2013. Tablet ownership has also doubled in the last year. - Mobile advertising spend in the UK has grown strongly, with over £1 in every £10 of digital advertising now being spent on mobile. Mobile display advertising saw particularly strong growth between 2011-2012. - Major publishers are seeing nearly half of their online content being consumed via mobile devices. Many companies also report a significant portion of online sales coming through mobile. - Successful mobile marketing examples demonstrate using mobile to enhance other media like print, outdoor, and driving in-store purchases. The future will require completely adjusting strategies to focus on mobile.

1. Small is beautiful- why mobile is the
tool marketers can‟t afford to ignore
Alex Kozloff, Head of Mobile IAB UK

2. iabuk.net/contact
Who am I and what do I do?
• Trade body for digital
advertising
• 850 members including
advertisers, agencies and
publishers
• Head of Mobile,6 years
mobile experience

3. Agenda
• An overview of consumer trends in mobile & tablet
• The UK mobile advertising revenue landscape
• Best in class examples of mobile marketing
• A few thoughts on the future

4. An overview of consumer trends in mobile
& tablet
15 June 2013iabuk.net/contact

5. iabuk.net/contact
Pope John Paul II‟s
body is carried across
St. Peter‟s Square
following his death in
2005
Pope Francis speaks to
St. Peter‟s Square for
the first time after he
was elected

6. Source: comScore mobiLens 3 month average
55%
Smartphone
ownership March
2012
UK smartphone growth 2012- 2013
67%
Smartphone
ownership March
2013

7. Mobile has made fundamental, irreversible
changes to our lives
Source: 20 or so IABeers in the pub
What do you not do any more now you have a mobile?

8. GNM weekly total audience by platform
Source: comScore
Source: GNM Total Audience, Wave 2 2012
Major UK publishers are seeing nearly the
majority of content consumption via mobile
55%
of Guardian‟s weekend
football content is
consumed on
tablet/mobile
45%
of the Guardian‟s weekly
audience comes from
digital only

9. Mobile is big business
30%
of all Debenhams
traffic via mobile
1 in 5
of all online sales
via mobile
€15.2bn
global sales
through mobile in
2012
Source: Debenhams 06/12, eBay 05/13, Dominos 09/12

10. Tablet ownership has doubled in a year
10%
22%
March 2012 March 2013Source: comScore mobiLens

11. 0%
5%
10%
15%
20%
25%
30%
35%
Night Time
1-3am
Early
Morning 4-
6am
Morning 7-
9am
Late
morning
10am-12am
Early
Afternoon
1pm-3pm
Afternoon 4-
6pm
Early
Evening 7-
9pm
Late
Evening 10-
12pm
Day in the Life of Device Usage - Weekday
Desktop
Mobile
Tablet
50% of tablet uses are after 7pm
%interactions
Source: IAB Three Device Lives: Tablets in context

12. 3 key trends emerging for tablets
Dual Screening Entertainment Retail
51%
Tablet usage
with TV
35%
Mobile
usage
with TV
33%
Laptop /
desktop
usage
with TV
Source: IAB Three Device Lives: Tablets in context / IAB Mojo Study
Tablet,
49%
Mobile,
22%
PC,
29%
Which of your
devices best allows
you to be
entertained?
2:56
2:12

13. Mobile Adspend- the highlights
iabuk.net/contact

14. SOURCE: IAB / PwC Digital Adspend 2012
(€617m)
(€234m)

15. Strong like for like growth 2011 to 2012
SOURCE: IAB / PwC Digital Adspend 2012

16. The mobile media mix
% share of revenues 2012
SOURCE: IAB / PwC Digital Adspend 2012
Category 2011 Share
Search 67%
Display 30%
Classified 0%
SMS & Other 3%
(€617m)

17. Mobile display breakdown
SOURCE: IAB / PwC Digital Adspend 2012
(€176m)

18. Change in industry sector mobile display
market shares 2011 to 2012
Based on 86% of submitted display ad spend
SOURCE: IAB / PwC Digital Adspend 2012
1%
3%
3%
8%
10%
10%
11%
12%
12%
13%
16%
1%
3%
1%
10%
11%
4%
7%
12%
13%
14%
23%
Leisure Equipment
Business & Industrial
Government, Social, Political Organisations
Motors
Telecomms
Travel & Transport
Technology
Finance
Retail
Consumer Goods
Entertainment & The Media
H2 2011
H2 2012

19. Mobile hits the mainstream?
SOURCE: IAB / PwC Digital
Adspend 2012
£1.25
in every £10 spent
on digital display
advertising is
spent on mobile
£1
in every £10 spent on
digital advertising is
spent on mobile

20. UK Mobile Advertising Spend Forecast 2013-
2017
Source: FirstPartner Western European Mobile Ad Spend Forecast 2013-2017
0
500
1,000
1,500
2,000
2013 2014 2015 2016 2017
£Millions
Display (Banners& Text Links) Search Messaging Mobile Content (Video and In Game)
£853.8m
£1234.0m
£1957.4m
£1537.8m
£1762.8m
(€2.3bn)
(€1.0bn)
(€1.4bn)
(€1.8bn)
(€2.1bn)

21. Some great examples
iabuk.net/contact

22. iabuk.net/contact
Mobile display is what you make of it
http://www.youtube.com/watch?v=45Z-GevoYB8

23. Mobile with other media- press
http://www.youtube.com/watch?feature=player_embedded&v=640v8yBcXg8

24. Mobile with other media- outdoor
http://www.youtube.com/watch?feature=player_embedded&v=ScrNSrOAoUM

25. Mobile driving „in store‟ purchases
http://www.youtube.com/watch?v=uUmSg2LqTyg

26. A few thoughts on the future
iabuk.net/contact

27. 75%
2013
Smartphone
Ownership (UK)

28. In 2013 the
majority of
search clicks in
the UK will come
from mobile
devices

29. The only option is to completely adjust your
strategy
“We made this transition to being a
public company, and at the same
time we made this transition to
being a mobile company. And the
transition to being a mobile
company had probably 10 times
the difference on the company that
anything about being public had.”

30. Thanks
alex@iabuk.net
iabuk.net/contact