This document provides a summary of mobile programmatic advertising trends in Asia Pacific from January to June 2016 based on data from Vpon, a leading programmatic advertising company in Asia. Some key findings include: - The top 3 countries (China, Indonesia, Japan) accounted for 60% of total programmatic mobile ad inventory. - Mobile apps dominated the mobile ad market, accounting for over 50% of impressions in most countries. - Android's mobile operating system market share was over 90% in India and Indonesia. - Native and video ad formats grew the fastest while banner ads remained the most common format. - Performance-based mobile ads in the gaming industry had the largest mobile ad budgets.

1. Mobile Programmatic Advertising
Semiannual Statistics and Trends Report
2016 Asia Pacific

2. TABLE OF
CONTENTS
Overview of Mobile Ad Market
- Mobile advertising inventory
- Mobile advertising inventory – mobile web and app
- Market share of operation system
- eCPM
- Ratio of mobile advertising format
Observation of Brand-based Mobile Advertising
Observation of Performance-based Mobile Advertising
Observation of DMP Trends
Special Edition:
Targeting Chinese Travelers Through Programmatic Buying
About Vpon
Appendix – Terminology
Report Source
Contact Us

3. Overview of Mobile Advertising Market

4. 3.90
0.95
0.29
0.02
2.64
1.24
0.20
0.45
0.88
0.91
3.68
2.05
0.59
0.06
Top 3 inventory sources (China, Indonesia, and Japan) take approximately 60%
of total biddable inventory
Biddable Inventory In Asia Pacific
Source: Vpon Big Data Group
Greater China Northeast Asia Association of Southeast Asian Nations
South
Asia
Oceania
Unit: Billion per day

5. Mobile Web Mobile App
61% 67%
52% 52%
74%
56% 54% 53% 58% 63%
13%
38%
67% 63%
39% 33%
48% 48%
26%
44% 46% 47% 42% 37%
87%
62%
33% 37%
Web App
In Indonesia, 87% of the impression is dominated by mobile apps
51% 49%
Mobile
APP
Mobile
Web
Mobile Web / Apps Mobile Web / Apps by Country
Source: Vpon Big Data Group
Greater China Northeast Asia Association of Southeast Asian Nations
South
Asia
Oceania

6. s
Android iOS
49%
71% 64%
34%
47%
80%
63%
82% 77%
68%
93% 94%
40%
51%
51%
29% 36%
66%
53%
20%
37%
18% 23%
32%
7% 6%
60%
49%
Android iOS
Android accounts for more than 90% market share in India and Indonesia
31%
Android iOS
69%
Operation System Operation System by Country
Source: Vpon Big Data Group
Greater China Northeast Asia Association of Southeast Asian Nations
South
Asia
Oceania

7. Unit: USD
Macau has the highest eCPM, which is 7.5 higher than the lowest one (Thailand)
Source: Vpon Big Data Group
eCPM by country
Greater China Northeast Asia Association of Southeast Asian Nations
South
Asia
Oceania

8. Banner is the commonest mobile advertising format while native and video ads
have a greater growth momentum
Source: Vpon Big Data Group
Banner Native Interstitial Video
Ad Format Comparison Across APAC
Native 9%
Interstitial 5%
Video 2%
Banner 84%
*The IHS study anticipates in-app native advertising (exclude running
on Facebook) will be the fastest-growing ad format in digital
advertising and will grow at a 70.7-percent compound annual growth
rate between 2015 and 2020

9. PMP (Private Market Place) is one step above open exchange in the programmatic
purchasing landscape, since only invited brands can take part in the auction, and the
inventory is typically more premium than in open exchanges. PMP is quickly gaining
traction with brand-based advertisers.
On the other hand, high-traffic apps and websites have been able to achieve higher
CPM (Cost-Per-Mille) by offering advertising placements through PMP, and their
relationships with advertising clients have grown stronger as well.

10. H&B
29%
Retail
14%
F&B
13%
Tech
10%
Finance
9%
Entertainment
6%
A&A
6%
Pharma
4%
Other
3%
Automobile
2%
Real Estate
2%
Travel
2%
H&B Retail F&B Tech Finance Entertainment A&A Pharma Other Automobile Real Estate Travel
Industry Comparison
Unit: Mobile ad budget in USD
Source: Vpon Big Data Group , statistic of programmatic buying mobile ads in Greater China, and Japan.

11. Apps in China / Hong Kong / Taiwan

12. Apps in APAC

13. Thanks to big data analytics technology and machine learning that enable
campaign optimizations, marketers who run performance-based mobile
campaigns can focus on their efforts to drive ROI.
Marketers cited the following benefits of programmatic buying as the most
important:
Source: Campaign Asia-Pacific
Better
Contextual targeting
Faster and
more efficient
execution
Real-time
optimization

14. Gaming industry evaluates campaign performance by various indicators: Cost Per Acquisition (CPA), Cost Per
Install (CPI), Cost Per Engagement (CPE), Customer Lifetime Value (CLV), Lifetime Value (LTV), etc. Gaming industry
is the main contributor to performance-based mobile advertising.
Industry Comparison
Game e-Commerce Emerging industry Travel Finance Others
e-Commerce 12%
Emerging Industry 12%
Travel 7%
Source: Vpon Big Data Group
Finance 6%
Others 3%
Gaming 60%
Unit: Mobile ad budget in USD
, statistic of programmatic buying mobile ads in Greater China, and Japan.

15. 20.00
20.00
0.00
5.00
10.00
15.00
20.00
$2-$6 $3-$9 $2-$4 6$-$10 $15-$19
Game
0.00
5.00
10.00
15.00
20.00
$3-$7 $4-$10 $3-$6 7$-$10 $16-$20
Android iOS
Customer Acquisition Cost
e-Commerce
Emerging
Industry Travel Finance
Unit: USD
$7-$10$6-$10
Game
Emerging
Industry Travel Financee-Commerce
Source: Vpon Big Data Group , statistic of programmatic buying mobile ads in Greater China, and Japan.

16. 24%
19%
14%
14%
10%
0% 5% 10% 15% 20% 25% 30%
Improve ROI of marketing and advertising activities
Ability to turn data in insighht
First-party data integration
Reduce wastage in media buying
Data normalization
Reasons for implementing a DMP According to Media Buyers Worldwide
Source: Exhange Wire, “The Evolution of Data Management Platforms: Uniting Media Sellers and Media Buyers in a Quest for Effective Media in Association with Oracle, Sep 2015
Agencies and advertisers implement a DMP in order to integrate systems, merge cross-device data, and take
control of primary source data. With DMP, it is accountable to generate more holistic analytics and insights to
drive efficient marketing and communications.

17. Top prioirty Very important Average Not important currently Invest more Won't invest more Not sure/It depends
Source: Joint exploratory research between Zenith Optimedia and Nielsen of over 20 China-based marketing and media senior leaders
Getting a DMP in place has become critical for marketers in China - Asia Pacific’s largest programmatic buying
market
Degree of Importance of DMP Future Investment Intention
Very important
62%
Top priority
24%
Average10%
Not important
currently
5%
Invest more
62%
Not sure / it depends
29%
Won’t invest more
10%

18. Popular Tags Collected from Mobile Devices
- Gender
- Age
- Vocation
- Marital status
- Ownership of car
- Ownership of passport
- Country
- City
- District
- Frequently-visit location
- Digital footprint
- Brand
- Model
- Web
- Connection
- Telecom operator
- Screen resolution
- Installation
- Activation
- App ranking
- Category
- Browsing history
- Ads engagement
- Lookalike similarity
- Media preference
- Purchase preference
Demographic Location Device App Interest

19. Data Management Platform
Beauty Expert
General Consumer
Modern Parents
Night Gamers Zealous Youth
Chic Cosmopolitan
Property Searcher
Online Shoppers
Gadget Guru
Cool Driver
Digital Readers
Sport Fanatics
Fun Seeker
Active Senior
Finance Guru
World Explorer
Popular Audience Segmentations Adopted by Mobile Marketing Campaigns

20. Special Edition
Targeting Chinese Travelers by Programmatic Buying
X

21. Hong Kong
68%
Others
32%
The mobile device and programmatic buying have revolutionized the way that brands and consumers interact.
With the support of big data technology, brand can reach cross-border travelers via mobile devices more easily
and accurate than ever.
“Programmatic advertisement helps marketers deliver ads to travelers in different stages of their journey: pre-trip,
during the trip, and after the trip.” said Victor Wu, CEO at Vpon Big Data Group.
“Chinese travelers receive advertisements and also obtain information on their smartphones. It’s important for
brands to leverage mobile devices to connect with cross-border tourists.” said Roland Leung, Commercial Director
of APAC Market Opportunities & Innovation at GfK.
Now that technology and the internet have put the world in the palm of our hands,
it is high time for marketers to find the right ways to stay connected with global
consumers on a more personal level.

22. TRAVELERS SPENDING
The number of Chinese travelers will rise to
200 million by 2020
By 2025, China’s traveler spending will
increase to US$278.7 billion
0
20
40
60
80
100
120
140
160
180
200
China Outbound Travelers
(in million border crossings)
China Outbound Traveler Spending
(in US$ billion)
US$278.7
US$ 215
Source: World Urban Tourism Federation (WTCF); UNWTO (World Tourism Organization) Source: World Travel & Tourism Council (WTTC)
2010 2015 2020 2025

23. Shopping accounts for 27% of spending, while eating well and getting around account for another 20%.
Luxury brands are the pioneers when it
comes to targeting Chinese travelers.
Tourism-related industry shall seize the
revenue opportunities by approaching
cross-border consumers via mobile
throughout the journey.
Source: GfK survey
Q16:. In terms of Renminbi, how much did you spend in the following items in your last overseas trip?
Base: n=148
27%
24%20%
11%
6%
3%
9%
Shopping Travel expenses Accommodations
Food and beverages Sight-seeing Local transportation
Others

24. Banner
In terms of consumers' activities with smartphones in stores, the adoption rates of Chinese respondents are ranked
top 3 in the following categories.
43% 50% 54% 49%
Take pictures of
advertisement
product information
Scan barcodes or
QR codes to obtain
more information
Compare prices Take pictures of
actual products they
might buy
41%
Buy products through
the store's or another
website
39%
Buy products through an
app on their device
Source: GfK survey among 25,000+ mobile users (ages 15+) in 23 countries – rounded

25. Banner
Hong Kong Others
Hong Kong
68%
Others
32%
Hong Kong
68%
1 Thailand
2 Hong Kong
3 South Korea
4 Taiwan
5 Macau
6 Singapore
7 Vietnam
8 Malaysia
2015 Q4 Top 10
Chinese Travelers Destinations
Source: China National Tourism Administration,
Q4, 2015
New Zeland
4%
Indonesia
3%
Malaysia
3%
Vietnam
3%
Macau
7%
Singapore
7%
South Korea
10%
Thailand
10%Australia
10%
Taiwan
20%
Japan
23%
Mobile ads inventory generated
by Chinese Travelers during trip

26. Banner
Attention and Planning
After TripBEFORE-TRIP DURING-TRIP
Retail Traffic
AFTER-TRIP
Retargeting
Deliver travel information to
create interests and attentions
Drive online traffic to physical
stores upon arrival at destinations
Retarget audience
for continuous purchase,
creating brand loyalty

27. Banner
Hong Kong
68%
Others
32%
Target audience: Tourists from Mainland China traveling to Japan
Creative: Ads with different communication messages to target tourists
traveling to different regions with different interests.
Campaign period: April – May, 2016
Location: Japan
Campaign is executed by Vpon Big Data Group
Multinational cosmetics and beauty group steps into cross-border tourists market
Background and objective of the campaign
To escalate the revenue in a regional level, the business group has decided to go beyond its geographic
boundaries. Instead of maintaining local market growth within each country in APAC region, this multinational
cosmetic and beauty company took a bold step into developing cross-border market. The primary aim is to
increase the transactions made by tourists and build a new revenue source to boost the revenue in a larger scale.
Campaign details

28. Hong Kong
68%
Others
32%
To encourage an immediate action, a strong incentive was designed to call for action.
When the Chinese travelers clicked the mobile ads, mobile-vouchers with exclusive offers were provided
to attract tourists to visit the physical stores and to make offline purchases at point-of-sale. The seamless
experience helps both parties: for customers, they can store the mobile voucher in their smart devices;
for advertisers, they can target the right audience and track ad performance easily.

29. Banner
.
In this campaign, travelers from Mainland China were categorized by Vpon into two groups:
1) travelers in Tokyo; and 2) travelers in cities other than Tokyo in Japan.
The travelers could be identified through the collaboration with the China-based SSP platforms, such as Baidu,
AMEX via data exchange. The features of audience tagging and location targeting allow ads to be timely delivered
and make the ads relevant to the audience even while they are abroad.
The advertisements of two
different cosmetics and
beauty brands could be
delivered based on the
location and user behavior
of the Chinese travelers.

30. The CTR was 35% higher than benchmark. Thanks to the
machine learning mechanism of the bidding engine, the CTR
was shown an obvious growth since week 2 after the
optimization of finding high potential Chinese travelers. The
CTR was improved by 41% and has remained in a constant
level after reaching the optimal point.
CTR (Click Through Rate)
The CVR of targeted mobile ads through Vpon DSP was
7.4 higher than that of display network ads and 1.4
higher than that of paid search.
CVR (Conversion Rate)
Paid Search Network display ads
5%
Conversion Rate (CVR)
Targeted mobile ads
through Vpon DSP
0.96%
7.10%
Strive the best performance by machine learning & RTB
To look for the potential audience who are most likely interested in beauty mobile-vouchers among the Chinese travelers
in Japan, Vpon’s bidding engine kicked off its machine learning process to find out the valuable target audience and then
automatically adjusted the real-time bidding (RTB) price to reach them. As a result, marketing budget was effectively
allocated to female shopping enthusiasts to deliver a better performance in this campaign.

31. Vpon, an Asia’s leading Bid Data Technology company.
With extensive media resource reach
over 120 billion biddable inventory
across Asia Pacific and advanced big
data analytic technology, Vpon offers
solutions in the areas of cross-border
target marketing, driving transactions
for O2O and e-Commerce business, as
well as increasing awareness of brands.

33. Sources are from database of Vpon mobile DSP, DMP, VDAS SaaS, and several partners
including advertisers, ad networks, and some 3rd party data research companies. The report
is based on the findings from the campaigns run by all Vpon branch offices. Till June 30th,
2016, Vpon Mobile DSP has connected with dozens of mainstream media platforms, including
programmatic buying ad exchange, SSP, PMP, etc. and the coverage has reached 600 million of
unique devices across Asia.
Duration: January, 2016 – June, 2016

34. Ad Exchange
An ad exchange is a virtual marketplace where publishers auction ad inventory individually in real-time. Whenever a user loads an ad on a webpage or mobile app, ad
exchange generates an impression. Publishers can sell these impressions at the time they are generated by auctioning them to programmatic buyers on an exchange. Buyers
use algorithms to seek out and bid on auctions that match their criteria, in terms of the quality of the placement and whether the user viewing the ad is part of a target
audience. When an auction is completed, the winning bidder’s ad is delivered to the user via an ad server.
Data Management Platform, DMP
A Data Management Platform is a unified technology platform that intakes disparate first-, second-, and third-party datasets, provides normalization and segmentation on
that data, and allows a user to push the resulting segmentation into live interactive channel environments.” The First-party data refer to advertisers’ own data, second-party
data refers to a partner’s first-party data. Third-party data refer to any data that you can get your hands on, which isn’t first- or second-party data.
Demand-Side Platform, DSP
A Demand-Side Platform is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface.
DSPs apply audience targeting algorithms to search through a large supply of available impressions and find those that meet the buyer’s audience and placement criteria.
They also manage media delivery and report on campaign performance.
Private Marketplace , PMP
A Private Marketplace is an invite-only marketplace where high caliber publishers offer their advertising inventory to a selected group of advertisers. In order to be
approved, the buyer may need to pre-negotiate terms with the publisher, pay a sitting fee, or commit to a minimum spend on the platform. Typically, private exchanges host
premium inventory, which is more expensive and considered to be higher-quality than that available on open-access exchanges.
Supply-Side Platform, SSP
A Supply-Side Platform is a technology platform to enable app/web publishers to manage their advertising inventory, fill it with ads, and generate revenue.

35. www.vpon.com
sales.global@vpon.comAdvertisers
Publishers bd.global@vpon.com
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