Insights from Opera Mediaworks

1. Highlights for the first quarter of 2014
Android now the No. 1 device platform
Asia solidifies its position in the global
mobile ad market
An in-depth look at the United Kingdom
Insights from Opera Mediaworks
sites & applications
14,000 64 BILLION
monthly ad impressions under management
500 MILLION
global consumers reached
Q1 2014
The State of Mobile Advertising
POW
ERI
N
G
THE MOBILE AD
EC
O
NOMY
Advertisers include …
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Publishers include …

2. Android is the top platform within the smart device market
After taking over as the leading smartphone platform in Q4 of last year, Android is now the top smart
device platform. Although still trailing iOS in terms of monetization, Android is making slow
advancement in that category, as well. Last year at this time, Android accounted for 26.72% of
revenue, compared to over 33% today. Most of this gain is at the expense of BlackBerry and Symbian.
3.32%
2.59%
Others
17.02%
5.73%
11.11%
60.22%
HTC
ZTE
Others
Motorola
LG
Samsung
HTC ZTEMotorolaLGSamsung
% of impressionsphone
Android iOS Other Symbian BlackBerry Windows
42.83% 38.17% 11.84% 5.83% 1.14% 0.18%
60.22% 17.02% 11.11% 5.73% 3.32% 2.59%
Q1 2014
The State of Mobile Advertising
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Traffic share (mobile phone OS)
OS / device % of traffic % of revenue
Windows 0.18% 0.28%
Other 11.84% 11.69%
5.83% 1.14%Symbian
1.14% 1.15%BlackBerry
42.83% 33.46%Android
iOS 38.17% 52.27%
iPhone 25.36% 40.30%
iPad 9.66% 10.06%
Phone 41.25% 31.82%
Tablet 1.58% 1.64%
3.15% 1.92%iPod Touch
Samsung is the clear leader of the Android device market with more than 60% of impressions.

3. Social-networking services are No. 1 for traffic volume;
Arts & Entertainment generate the most revenue
This quarter we’ve seen some changes in the top app and site categories. The Social category leads in mobile ad traffic volume as it did in Q4
2013, but this quarter, the Arts & Entertainment category displaces Music, Video & Media from the top spot for revenue generation. Business,
Finance & Investing has the highest revenue per impression, holding its top position for over a year now.
Social
Music, Video & Media
News & Information
Arts & Entertainment
Sports
Other
Health, Fitness & Self Help
Religion & Spirituality
Games
Business, Finance & Investing
Education
Computer & Electronics
Shopping
0 5 10 15 20 25 30
% impressions % revenue
#1 impressions
#1 revenue
Q1 2014
The State of Mobile Advertising
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4. Asia solidifies its position in the global mobile ad market
Even though the United States continues to drive the majority of ad traffic (50.61%) and revenue on the Opera Mediaworks platform, Asia is now
in a solid second place. Last quarter we saw Asia leapfrog Europe as the second largest mobile ad market. Asia continues to hold this position,
even lengthening its lead on Europe this quarter.
Q1 2014
The State of Mobile Advertising
Africa
Middle East
Asia Pacific
Europe
Americas (non-U.S.)
United States
Oceania
Top 20 countries
Nigeria
Australia
Ukraine
France
Germany
Pakistan
Vietnam
Bangladesh
Italy
Saudi Arabia
United States
India
Canada
United Kingdom
Russian Federation
Indonesia
Brazil
South Africa
Mexico
Japan
50.61%22.85%
13.16%
2.71%
1.39%4.03%
5.78%
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5. FOCUS ON THE UNITED KINGDOM
The United Kingdom is one of the most advanced mobile markets in the world, and as such it can provide insight to the potential future for
global markets. However, when compared to global and other advanced markets today, the U.K. mobile audience shows itself to be truly unique.
Our analysis of the mobile audience in the United Kingdom is based on mobile advertising traffic generated by over 1,000 sites and applications
specific to the U.K. market, as well as traffic from UK consumers directed to over 11,000 sites and applications distributed worldwide. Therefore,
our first observation is that the U.K. mobile audience is quite international in nature. The audience not only engages with U.K.-centric content but
also interacts extensively with a global “who’s who” of digital media sites and applications.
Unique preferences in site category
Mobile users in the United Kingdom interact with advertisements on News & Information and Sports sites much more than the global audience,
which favors Social, Entertainment and Music sites. However, when the U.K. audience interacts with non-U.K.-centric sites and apps, those sites
tend to be the global favorites: Social, Entertainment and Music.
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Social
Music, Video & Media
News & Information
Arts & Entertainment
Sports
Other
Health, Fitness & Self Help
Education
Computer & Electronics
0 5 10 15 20 25 30
Global % impressions UK % impressions
Q1 2014
The State of Mobile Advertising

6. Advertiser category performance
Of the brands advertising on sites popular with the audience in the United Kingdom, those advertising mobile phone services and games have
the highest monetization levels (as measured by eCPM). Game advertisers also see the highest click-through rates (CTR), while mobile phone
device advertisers produced the highest volume of impressions served.
3.5
3.0
2.5
2.0
1.5
1.0
.5
0.0
-0.5
-0.5 -0.0 0.5 1.0 1.5 2.0 2.5 3.0
Auto
Clothing & Fashion
Computers and Electronics
Food and Drinks
Mobile Phone Devices
Mobile Phone Service
Sports Event
Travel
Games
Click through (1=Average)
eCPM(1=Average)
Ad category performance
(ball size represents relative number of impressions served)
Clothing & Fashion
Computers and Electronics
Food and Drinks
Mobile Phone Devices
Mobile Phone Service
Sports Event
Travel
Games
Auto
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Q1 2014
The State of Mobile Advertising

7. A unique mix of devices
Even though most analysts report a very high adoption rate for Android devices in the U.K. market, our traffic shows iOS to be the clear leader.
Also, the U.K. audience is much more likely to own a BlackBerry device than our global audience.
Similar usage patterns across the days of the week
The U.K. audience is similar to the global audience in that it shows strong usage over the weekend period, all the way through Monday. In the
United Kingdom, however, we see a much more pronounced drop in iOS users midweek than we do for other platforms, and, for that matter, for
iOS in other markets.
OS
iOS
Android
BlackBerry
Other
38.17
42.83
1.14
17.86
58.06
20.70
16.10
5.14
66.85
19.05
13.50
0.61
62.28
18.58
14.03
5.11
% global
impressions
% UK unique
users% of impressions % of revenue
UK audience
Q1 2014
The State of Mobile Advertising
20%
18%
14%
10%
6%
2%
16%
12%
8%
4%
0%
SUN MON TUE WED THU FRI SAT
% of total weekly users
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iOS
Android
Blackberry

8. Uniquely favor mobile applications, rich media and video
When compared to our global distribution, where 69% of our traffic is for mobile web impressions, the United Kingdom shows a significant
preference for engagement within mobile applications, with 72% of ad impressions taking place within a mobile app.
Advertisers and mobile media properties in the United Kingdom show a strong preference toward rich-media advertising, where click-through
rates are almost double those of regular banner ads.
Video ads are a key driver of rich-media success in the United Kingdom, where 30% of rich media advertising (13.4% of all mobile advertising)
contains a video. This is significantly higher than the worldwide average, where 2.5% of advertisements contain a video.
% impressions served to
UK mobile users
% of impressions by
type UK
CTR on UK media sites and
applications
Web
App
72%
28%
Rich media
Regular
0.9%
0.8%
0.7%
0.6%
0.5%
0.4%
0.3%
0.2%
0.1%
0.0%
Rich media
Regular
55%
45%
Q1 2014
The State of Mobile Advertising
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9. In addition, video advertising in the United Kingdom tends to be longer in duration than its U.S. counterpart. Based on research by the Mobile
Marketing Association and shown in their “Mobile Video Benchmark Study 2013”, 56% of U.S. mobile ads are 15 seconds or less in duration. In the
United Kingdom, our data shows that 67% of video ads are between 26 and 30 seconds long.
Global
US
UK
UK
Percentage of mobile ads
that are video
Video advertising length
15%
10%
5%
0%
:15 or less
56%
:20-:25
19% :26-:30
67%
>:30
14%
:16-:33
56%
:31+
8%
unknown 3%
Q1 2014
The State of Mobile Advertising
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10. Best practices for UK mobile creative
Our experience advertising in the United Kingdom clearly shows that the fewer the barriers an advertiser puts between their audience and the call to
action (CAT), the better the engagement. For example, once a consumer engages with a video ad unit, each additional interaction required by the
consumer before being able to view the ad lowers the completion rate for the video.
Successful calls to action, especially for video advertising in the United Kingdom, rely on ease of use. Consumers who want to engage with brands
demand a fast and easy way to get to the advertiser’s most compelling content. An example of success is a recent Sony campaign for PS4, where
the advertiser capitalized on a carefully targeted, automatically playing, rich-media video ad, with a completely unencumbered call to action.
Q1 2014
The State of Mobile Advertising
receive
callto
action
12%
10%
8%
6%
4%
2%
0%
2
1
0
barriers to CTA >75% complete CTA
completionrate
barriers
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