Mobidays KM-Report JULY 2015

2. 2015/062015/052015/042015/03
2015/022015/012015/122015/11
Mobidays [KM Report] Article & Advertisement Contact : j3y_sj@mobidays.com
Mobidays is a specialized mobile marketing company,
making every effort to have proper understanding of mobile market and to activate mobile eco-system.
In order to do so, Mobidays established [Mobile Advertisement Research Institute: MARI] in August 2014
(blog.naver.com/mobidays01).
[Mobile Advertisement Research Institute: MARI] collects and studies domestic and overseas mobile
related information and issues ‘VEUM’ (Very easy understanding of mobile) a main column, and
‘KM report’ a monthly trend report.
KM report is a report based on insight and information articles such as domestic / overseas mobile
related investment news and market issues which provides mobile eco-system trend and issues.
We will keep working our best to release various and interesting news about mobile market in succession.
Thank you.
Mobidays Team

3. Overall Table of Contents
Domestic ISSUE
1. Unstoppable Plays of Mobile Videos
2. Mobile Searches exceed PCs
3. Mobile Games, a New Trend on the way?
4. Mobile Banking and Mobile Shopping
5. Leaving in search of New Markets
Global ISSUE
1. BRIC, Mobile Game Market’s Cradle
2. China has its eyes on the Wi-Fi Business!
1

4. Domestic ISSUE
1. Unstoppable Plays of Mobile Videos
2. Mobile Searches exceed PCs
3. Mobile Games, a New Trend on the way?
4. Mobile Banking and Mobile Shopping
5. Leaving in search of New Markets
2

5. 4.8
95.2
5.2
7.7
94.8 92.3
31.7
68.3
Desktop PC
& Laptop
Tablet PCSmartphones
49.6mins 48.3mins 46mins
Internet users with
online video view experience
Online video viewing rate
per device type
Online Video View Time of Adults
48.5mins per day on average
Yes No Yes No
PC/Laptop
Source: DMC Media, overall on and offline internet users(n=1,014) Source: DMC Media, overall online video users(n=966)
Smartphones Tablet PC
Video view time
by device
Unstoppable Plays of Mobile Videos
3

6. Video platforms preferred by internet users
YouTube
40.3%
Naver
TVCast
14.1%
Facebook
12.8%
DaumTVPot
6.2%
GomTV
5.7%
4
Source: DMC MediaSource : June 17th, 2015. Newsis Average internet video view time per day 48.5 mins
84.5% of online video viewers have
watched video advertisements within 3 months
49.8% of video advertisement viewers
clicked on the advertisements
Video advertisement click rate by devices
• smartphone ads : 52.8%
• desktop PC/laptop ads : 46.1%
• tablet PC ads : 39.8%
Unstoppable Plays of Mobile Videos Accompanied growth of
mobile video advertisement

7. Naver reorganizes mobile main video
• Naver newly created a fixed area that presents video contents that signed a partnership
with Naver such as ‘Naver Original’, ‘Web Animation’, ‘Web Drama’, and ‘Documentary’ in the
mobile home video area.
• According to Naver, after the reorganization of the video area, there was a 6% increase in
usage time and 4% increase in times of videos played per user.
*RUBICS, Real-time User Behavior-based Interactive Content recommender System
A system that automatically recommends various contents that users may like based on
machine learned users preference
DaumKakao releases Kakao TV
• DaumKakao released ‘Kakao TV’ that allows its users to view video clips, VOD, and
live broadcast using KakaoTalk.
• Kakao TV formed a partnership with SMR(Smart Media Representative) and provides
the contents of terrestrial broadcast, CJ E&M, and Comprehensive programming channels
that are owned by SMR, in video clips.
• Kakao TV analyzes user view patterns and recommends(*introduction of RUBICS)
videos that users may like, and also firstly exposes videos with comments from users’ friends.
Source : June 17th, 2015. INews24 Video Market, Facebook – Naver TV Cast’s rapid progress
Unstoppable Plays of Mobile Videos Accompanied growth of
mobile video advertisement
5

8. Mobile ads, market size and forecast
(Unit: 1 million KRW)
150
100
50
2012.1 12
110.2
2013.12 2014.12 2015. 5
181.4
2013
415,989
2014
832,870
2015(e)
1,059,573
666,363
393,212
Source : May 29th, 2015. IT Dong A From ‘web’ searches to ‘app’ searches, the unstoppable evolution of Google search
June 16th, 2015. Chosun Biz Twice the size of PCs… competition of ‘mobile searches’ ignited in IT business
Source: : November 2014 analysis of mobile advertisement business current state,
KISA (Korean Internet & Security Agency)
Naver’s rate of mobile
searches compared
with PC searches
(Unit: %)
Source: Naver
• Mobile search size has now exceeded
PC search size.
• New mobile search services are being
released by various domestic and
foreign IT companies.
• As the mobile search market becomes
more vitalized, mobile search
advertisements are expected to grow
rapidly as well.
All mobile ads Display ads Search ads
Mobile Searches Exceed PCs
6

9. Domestic mobile search query share
자료: 2015년 4월, 코리안클릭
73% 14.5% 12.3%
Sources : June 7th, 2015. Yonhap New "It finds a desire that I never even knew I had” … mobile searches being recommended
June 11th, 2015. Digital Daily mobile search competition growing fierce… ‘a focus on winning the fingertips>
DaumKakao releases Kakao TV
•REACT(REaltime ReACT) system :
When users actively participate in other people’s response about a certain issue,
the search results immediately incorporates this
•RED(Realtime Event Detection) system in development Based on various information extracted and
analyzed , the general public’s real-time interests are searched and provided more rapidly
•NCKP(Naver Contextual Knowledge Plus) technology imported through big data analysis,
users’ next search information is predicted and provided as soon as users type in their
first search words
DaumKakao imports search features into KakaoTalk
• DaumKakao added a KakaoTalk #(sharp) feature which allows users to search for information while
using the KakaoTalk chat rooms.
• By adding a search feature, it is expected that DaumKakao will be able to increase their share in the
mobile search and search advertisement area
Strengthening mobile ads with search services
Mobile Searches Exceed PCs
7

10. Global Social Casino
Market size
Global social casino’s
mobile profit weight
Mobile web board games becoming charged
Domestic social
casino game’s size
about 2.8 trillion KRW
in year 2014
61%
2014
$2.8 billion
(about 3 trillion KRW)
2015(e)
$3.8 billion
(about 3.8 trillion KRW)
10
10
J
J
Q
Q
K
K
A
A
Source : June 4th, 2015. GameChosun Game business, a global casino, direct aim at the mobile market
• Mitigation of government regulation on web board games
• Permission of the Game Rating And Administration Committee to allow
and mobile web board games to charge users (payment in mobile
web board games become possible)
• With a 300,000 KRW purchase limit per user, charge made possible
through either PCs or mobile platforms
Source: Eilers Research
* Web board game?
Games played with a board created on the screen through the internet
Web board games’ vitalization
Mobiles Games, a New Trend on the way?
8

11. Source : May 26th, 2015. eDaily PatiGames takes over Dada Soft at 22.7billion KRW
June 17th, 2015. Money Today Web board, social casino… would they be enough to be a breakthrough for game companies
trying to expand their business
• Neowiz released ‘SEASTAR CASINO’, a social casino game,
in the Southeast Asian market in April of 2015.
• Netmarble founded a subsidiary company, 1111 (Thousand Hundred and
Eleven)’, which mainly consists of the labor force with web board game
creation experience, in order to develop social card games.
• 1111 will develop a social card game that targets the foreign market.
• NHN Entertainment released ‘GOLDEN SAND CASINO’ in the
North American market in August 2014, through ‘Monarch Gaming Labs’,
a North American subsidiary company.
• Pati Games acquired ‘ Dada Soft(founded in 2011)’, a web board game
company, at 22.7billion KRW in order to enter the web board games market.
• Due to the eased government regulation on web board games and partner
companies’ entrance inquiries, DaumKakao is carefully looking over web
board games’ entrance on KakaoTalk
Web board games’ vitalization
Mobiles Games, a New Trend on the way?
9

12. •2014 July, Korean firm Locojoy Entertainment established
•2014 December, raised a 15-billion-won-fund with domestic VC
•2014 sales : 280 billion KRW, Operating profit : 140 billion KRW
• Ranking number 8 in China’s top local sales as of 2014
• Annual sales 300 billion KRW
Source : 2015.06.05 Asia Business Daily Korean Mobile Games, facing risk by takeover of China
2015.06.11 INews24 Chinese game companies buying Korean listed companies instead of direct entry, “Why?”
• Locojoy, China’s game developing company that developed the “Master Tanker” series, becomes the largest
stockholder of a KOSDAQ listed company ENUStech.,Inc. through paid-in capital increase by a way of third party allotment.
• ENUStech.,Inc. will change its name to Locojoy International and regularize game development and publishing business in Korea.
• It will recruit maximum 100 workers in Korea to equip with game developing skills and operate global publishing business.
• Giant is China’s online/web game specialized company which is seeking change into mobile game company as of 2014.
• Giant is planning to expand its influence in the mobile game market by acquiring and investing in small and
medium sized game developing companies in Korea.
• The news that Giant will acquire a KOSDAQ listed company “M Game” turned out to be groundless,
but M Game’s stock price rose in anticipation for being acquired by a Chinese enterprise.
Locojoy acquires ‘ENUStech.,Inc.’ ,
a wireless communication device development company
Giant is in search of a Korean company to strengthen
its ability in the mobile games market
Chinese game companies aim for
entrance into Korean market!
Mobiles Games, a New Trend on the way?
10

13. 52.4%
2013년
3,700
2014년 1분기
4,000
2015년 1분기
5,223
Transaction amount
2.2 trillion KRW
Number of average
daily dealings
40 million
Source :
Source:: Bank of Korea
May 25th, 2015. etnews Smartphone banking users exceed 50 million
2015.06.10 Hankyoreh Simplified mobile payment system “00 pay” pouring…aiming of each company varying
Domestic smartphone based
mobile banking users
(Unit: 10 thousand, including overlaps)
weight of mobile banking
out of total internet banking
Performance of smartphone banking
in the 1st quarter of 2015
Banks enhancing smartphone baking business
• Banks are trying to provide equal level of service with Internet banking in smartphones.
• As self authentication methods diversifies, various security functions are appearing such as
smart OTP cards and NFC.
• Banks are planning to operate a customized marketing through customer managing
program based on big data and mobiles.
Mobile banking becoming more sophisticated
Mobile Banking and Mobile Shopping
11

14. 5.06trillion KRW
79.2% increase compared to
1st quarter of 2014
40% of Internet users
Have searched about the product
using mobiles before purchasing
37% of users who have searched
about the products using mobiles
Purchased products using mobiles
62% of Korean population
Have purchased something online
within the last month
37% of online shoppers
Purchased products using mobile phones
2014
Internet shopping
market size (PC+mobile)
PC based internet
shopping
Mobile shopping
33.8 trillion KRW
2013
5.91 trillion KRW
13.1 trillion KRW
32.0 trillion KRW
(Source: Statistics Korea)Source: KIET (Korea Institute for Industrial Economics & Trade
Source: KISA, 4th quarter of 2014Source : 2015. 6. 15 ZDNET Domestic Mobile Shopping Market, 1st quarter growth by 79.2%
2015.06.19 Yonhap News Last year Mobile Shopping 13 trillion 140 billion KRW… 122% increase year on year
Domestic internet shopping size The turnover of mobile shopping
in the 1st quarter of 2015
39.7 trillion KRW
45.1 trillion KRW
- Purchase of products through mobiles without the limit
of time and space
- Increase in purchase of daily necessities using mobile
during rush hours due to increase of single-person households
- Original distributors also introducing mobile distribution
channels (releasing mobile applications, introducing simplified
mobile payment system)
Convenience of mobile shopping
Mobile Banking and Mobile Shopping
12

15. (Source : eMarketer)
Source : 2015. 6. 15 ZDNET Domestic Mobile Shopping Market, 1st quarter growth by 79.2%
2015.06.19 Yonhap News Last year Mobile Shopping 13 trillion 140 billion KRW… 122% increase year on year
•This year’s 1st quarter MAU of LINE is 26 million
• Naver’s messenger LINE is currently holding the 2nd place in
Indonesia’s messenger market share
• Yello Mobile took over PriceArea, an Indonesian domestic price
comparison website, and AdPlus, a digital marketing company
•KakaoTalk launched into Indonesia 3 years ago and secured
18 million downloads
•DaumKakao took over the Indonesian social network service,
Path and Path Talk’s partial assets at 22 billion KRW
•Path’s MAU is 10 million
Current State of Indonesia
Population
253 million
Internet users
72.7 million
Social media users
72 million
PSmartphone users
52 million
Indonesia, land of opportunities!
Leaving in search of New Markets
13

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17. Global ISSUE
1. BRIC, Mobile Game Market’s Cradle
2. China has its eyes on the Wi-Fi Business!
15

18. •India: $102.9 million
• Brazil: $184.7 million
• Russia: $323.2 million
• China: $4.4 billion
Brazil Russia India China
2014 2015(e) 2016(e)
44.13
39.6
123.2
298.1
48.52
42.8
158.7
349.4
51.41
46.1
194.3
405.1
Source : May 29th, 2015. Sports Chosun Brazil, Russia, India, China’s mobile games achieve a 91.7% growth
Year 2014 BRIC mobile game
market size
Mobile game user forecast in different countries (Unit: 1 million)
Yearly growth rate of mobile games’
sales in different countries
Source: Onesky & Newzoo
BRIC, Mobile Game Market’s Cradle
16

19. Source: 2015.06.08 Aju New China’s BAT focuses on Wi-Fi industry, the new battlefield of “the Age of Internet +”
The 3 major IT companies of China, ‘BAT(Baidu, Alibaba, Tencent)’ run large scale investments
Open free WIFI provided in public areas
• The Chinese government plans to provide open free WIFI in all public places in GuangZhou an
ShenZhen, China by the end of the year.
• This plan will be extended to all of GuangDong Province within 3 years.
(The area of GuangDong Province is about 17 times larger than that of GyeongGi Province in Korea.)
• Free WIFI zones will be set up in about 15 areas including public transportation, parks,
popular tourist sites, exhibition halls, and government buildings.
Baidu participated as the core investor to a funding by 16 Wifi,
China’s public transportation Wi-Fi Service Providers and VisionChina Connected.
Alibaba invested in Treebear Networking Co., Ltd.,
a Wi-Fi service provider in 2014.
Tencent, together with Dazhong Dianping, China’s lifestyle
portal site, invested 300 million CNY in WiWide, a Wi-Fi service provider.
Chinese Internet Users
649 million
Mobile Internet Users
557 million
WIFI users out of mobile internet users
75.6% of total
China has its eyes on the Wi-Fi Business!
17

20. MAX Summit is where trend leaders in the mobile business
within the field of Gaming, Ad-tech, Social Media,
Commerce, Start-ups and Venture Capitals gather to
pioneer the path into the future.
Gain insights and maximize your imagination for the
future of the mobile eco-system.
URL : http://maxsummit.co
E-mail : hello@maxsummit.co

21. Event News
1. KITAS 2015: IT Accessory / Smart Device Show
Location: COEX C Hall 1,2
524, Bongeunsa-ro, Gangnam-gu, Seoul
Date: August 20th, 2015. (Thurs) ~ August 22nd (Sat)
www.kitas.kr
2. Busan International Advertising Festival
Location: BEXCO
1291, U 1-dong, Haeundae-gu, Busan
Date: August 20th, 2015. (Thurs) ~ August 22nd (Sat)
www.adstars.org
3. 2015 Global Mobile Vision
408, Hallyu world-ro, Ilsanseo-gu, Goyang-si, Gyeonggi-do
Date: September 16th, 2015. (Wed) ~ September 18th (Fri)
www.gmv.or.kr
19

22. http://it.donga.com/21314/
http://www.yonhapnews.co.kr/bulletin/2015/06/05/0200000000AKR20150605163500017.HTML?input=1195m
http://www.ddaily.co.kr/news/article.html?no=131349
http://biz.chosun.com/site/data/html_dir/2015/06/15/2015061500053.html
Sources
Domestic ISSUE
1. Unstoppable Plays of Mobile Videos
June 5th, 2015. Digital Daily Portals concentrating on video services… a strong focus on ‘visual services’ that are treats to the eye
June 17th, 2015. Newsis Average internet video view time per day 48.5 mins
June 17th, 2015. INews24 Video Market, Facebook – Naver TV Cast’s rapid progress
May 29th, 2015. IT Dong A From ‘web’ searches to ‘app’ searches, the unstoppable evolution of Google search
June 7th, 2015. Yonhap News "It finds a desire that I never even knew I had” … mobile searches being recommended
June 11th, 2015. Digital Daily mobile search competition growing fierce… ‘a focus on winning the fingertips’
June 16th, 2015. Chosun Biz Twice the size of PCs… competition of ‘mobile searches’ ignited in IT business
2. Mobile Searches Exceed PCs
http://www.ddaily.co.kr/news/article.html?no=131148
http://www.newsis.com/ar_detail/view.html?ar_id=NISX20150617_0013733423&cID=10401&pID=10400
http://news.inews24.com/php/news_view.php?g_serial=903746&g_menu=020310&rrf=nv
20

23. Sources
Domestic ISSUE
3. Mobile Games, a New Trend on the way?
Chinese games companies aim for entrance into Korean market!
2015.05.27 Hankyung Gametoc [HOT] China game company Locojoy, acquires KOSDAQ ENUStech.,Inc.
2015.06.05 Asia Business Daily Korean Mobile Games, facing risk by takeover of China
2015.06.11 INews24 Chinese game companies buying Korean listed companies instead of direct entry, “Why?
2015. 6. 15 Digital Times Large Chinese game company, promoting takeover, invest in Korean company
Chinese games companies aim for entrance into Korean market!
2015.05.26 . eDaily PatiGames takes over Dada Soft at 22.7billion KRW.
2015.06.04 . GameChosun Game business, a global casino, direct aim at the mobile market
2015. 6. 17 Money Today Web board, social casino… would they be enough to be a breakthrough for game companies
trying to expand their business
http://gametoc.hankyung.com/news/articleView.html?idxno=28747
http://view.asiae.co.kr/news/view.htm?idxno=2015060511074124519
http://news.inews24.com/php/news_view.php?g_serial=902620&g_menu=020521&rrf=nv
http://m.media.daum.net/m/media/digital/newsview/20150615154645098
http://m.edaily.co.kr/html/news/news.html#!it-view-01239846609372856-E
http://www.gamechosun.co.kr/article/view.php?no=125001
http://www.mt.co.kr/view/mtview.php?type=1&no=2015061515004492442&outlink=1
21

24. Sources
Domestic ISSUE
4. Mobile Banking and Mobile Shopping
Mobile banking becoming more sophisticated
May 25th, 2015. etnews Smartphone banking users exceed 50 million
2015.06.09 Digital Daily Banks Smartphone banking keyword…Big data, new security method
2015.06.10 Hankyoreh Simplified mobile payment system “00 pay” pouring…aiming of each company varying
5. Leaving in search of New Markets
June 1st, 2015. etnews Southeast Asia rises as the new fighting grounds for domestic mobile services
June 17th, 2015. eDaily Korean mobile service gets ahold of 25 million Indonesian users’ fingertips
http://www.venturesquare.net/587800
http://www.edaily.co.kr/news/NewsRead.edy?SCD=JE41&newsid=01210326609403032&DCD=A00504&OutLnkChk=Y
http://www.etnews.com/20150525000140
http://www.ddaily.co.kr/news/article.html?no=131228
http://www.hani.co.kr/arti/economy/economy_general/695418.html
Convenience of mobile shopping
2015. 6. 15 ZDNET Domestic Mobile Shopping Market, 1st quarter growth by 79.2%
2015. 6.19 Yonhap News Last year Mobile Shopping 13 trillion 140 billion KRW… 122% increase year on year
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150615165704
http://www.yonhapnews.co.kr/bulletin/2015/06/19/0200000000AKR20150619057000003.HTML?input=1195m
22

25. Sources
Global ISSUE
1. BRIC, Mobile Game Market’s Cradle
May 29th, 2015. Sports Chosun Brazil, Russia, India, China’s mobile games achieve a 91.7% growth
http://sports.chosun.com/news/ntype.htm?id=201505300100335660023807&servicedate=20150529
2015.06.08 Aju New China’s BAT focuses on Wi-Fi industry, the new battlefield of “the Age of Internet +”
http://www.ajunews.com/view/20150608102522615
2. China has its eyes on the WIFI business!
23

26. Thank you
Contact Us
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Seung Je, Lee
j3y_sj@mobidays.com
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