state of mobile report 2012 eoy

The close of 2012 finds clear trends in the global mobile advertising market with important implications for

marketers and publishers. Instead of losing ground to Android-based devices as some had predicted, Apple

has regained its dominance with 63 percent market share for its iOS devices, due in part to the introduction

of popular new iPhone and iPad models and the increasing a�ordability of established o�erings. This has in

turn depressed the share of impressions on Samsung tablets and smartphones, as well as the impressions

delivered by mobile carriers that do not carry the iPhone. By comparison, AT&T, with the longest-running

iPhone business, holds nearly twice the mobile impression share of its nearest competitor.

Meanwhile, international mobile sales and mobile ad impressions continue to grow rapidly, especially in

emerging economies, which also show the highest click-through rates (CTR). Among apps, games continue

to lead all categories in both popularity and impressions served, though photography is growing quickly.

The report below explores these and other key findings in depth, providing essential insight to help every

member of the fast-growing mobile advertising ecosystem develop strategies to capitalize on the

opportunities it o�ers.

2012 Year in Review

State of Mobile Advertising

EXECUTIVE SUMMARY

2012 Year in Review

Consumers in emerging markets are more likely to click through to an ad—three out of the top five countries

with the highest CTR are emerging markets. Brazil leads the pack with an average CTR of 2.58%, while China

trails close behind at 2.4%. Italy comes in third at 2.18%, while Russia places fourth at 1.88%.

Fun Fact: Smartphone sales in Brazil were predicted to increase 77% in 2012 compared to 2011 (IDC,

September 2012), which may explain their number 1 spot.

Smartphone users in developed markets were less likely to click on ads. The UK places eighth at 1.67%,

while Australia, the U.S., Japan, and Canada trail.

Source: Mobclix Exchange, Global Data, January 1 - November 30, 2012Includes Top 15 Countries (by impressions served).

.........................................................................................................................


CONSUMERS INBRAZIL SHOW HIGHEST ENGAGEMENT

01

2.58%

2.40%

2.18%

1.88%1.76% 1.69% 1.68% 1.67% 1.66% 1.63% 1.62%

1.56%1.46% 1.43%

0.99%

Bra

zil

Chi

na

Italy

Russ

ia

Nor

way

Fran

ce

Mex

ico

Uni

ted

King

dom

Den

mar

k

Ger

man

y

Aus

tralia

Uni

ted

Stat

es

Japa

n

Can

ada

Spai

n

AVERAGE CTR BY COUNTRY

2012 Year in Review


The U.S. and Canada lead the world in impressions served, with a 43% market share. Western Europe comes in

second at 24%, while APAC trails in at third place with 17% share of the market.

GLOBAL IMPRESSIONS BREAKDOWN

The U.S. saw the most ads clicked per minute with 1,202. Other countries listed saw only a fraction of the number.

Source: Mobclix Exchange, Global Data, January 1 - November 30, 2012; World Bank, 2011.

.........................................................................................................................

Latin America 4%

Australia 3%

Middle East / North Africa 7%

APAC 17%

Eastern Europe 2%Western Europe 24%

USA / Canada 43%

SHARE OF IMPRESSIONS BY REGION

ADS CLICKED PER MINUTE

Uni

ted

Stat

esC

anad

a

Uni

ted

King

dom

Spai

nC

hina

1,202

Japa

nN

ethe

rland

sG

erm

any

Fran

ceSo

uth

Kore

aM

exic

o

Bra

zil

Swed

en

Italy

268

227

221

183

169

156

131

124

83 77 74 74 74

2012 Year in Review


Source: Mobclix Exchange, Global Data, January 1 - November 30, 2012

SPOTLIGHT: EUROPE AND ASIAEUROPE: IMPRESSION GROWTH, JANUARY THROUGH NOVEMBER

ASIA: IMPRESSION GROWTH, JANUARY THROUGH NOVEMBER

1020.7%Sp

ain

Russ

ia

Italy

Ger

man

yU

nite

d Ki

ngdo

m

Fran

ce

Nor

way

Net

herla

nds

Den

mar

k

Swed

en

726.7%671.3% 654.8%

553.3%500.7%

323.3% 314.4% 298.7% 263.2%

In Europe, Spain saw the highest impression growth in 2012 at 1,020.7%. Not surprising considering that Spain sees

higher smartphone consumption (63.2%) than the average penetration rate for Europe (54.6%) (comScore, 2012).

France saw just half the impression growth of Spain at 500.7%. Despite seeing high smartphone consumption in

Europe, the U.K. (62.3%) came in fifth place.

.........................................................................................................................

1115.2%

Thai

land

Sing

apor

e

Indi

a

Phili

ppin

es

Japa

n

Mal

aysi

a

Hon

g Ko

ng

Taiw

an

Chi

na

Kore

a

886.5%809.4% 784.7%

587.9%509.9%

390.1%

294.3%

83.7%29.2%

Smartphones are exploding in Asia: Thailand saw even higher impression growth than Spain (1,020.7%) at 1,115.2%.

Fun Fact: One in four consumers in Thailand will have a smartphone by the end of 2012 (Ericsson, Sep 2012).

China saw only an 83.7% growth of impressions through 2012, despite the fact that smartphone shipments in China

surpassed feature phone shipments in August of this year (IDC, August 2012).

Fun Fact: China is predicted to surpass the U.S. in smartphone shipments at the end of this year (IDC, Aug 2012).

2012 Year in Review


The Samsung Galaxy S3 came out onto the market with a big bang (more impressions in its first month than the

iPhone 5 had in its first month), but it looks like the iPhone 5 will win the “most popular device of the year” title.

Despite the popularity of the Galaxy S3, which was released at the end of May, the iPhone 5, released in

mid-September, was able to match impression share by the end of November.


DEVICE WARS:IPHONE 5 VS. SAMSUNG GALAXY S3.........................................................................................................................

MARKET SHARE:

IPHONE 5 VS. SAMSUNG GALAXY S3

0.0%

100%

July

0.0%

Aug

1.6%

98.4%

Sep Oct

50.0%

Nov

14.8%

50.0%

98.4%85.2%

100%

02

Samsung Galaxy S3

iPhone 5

2012 Year in Review



BATTLE OF THE OS: IOS VS. ANDROID

2011 IMPRESSION SHARE BY OS 2012 IMPRESSION SHARE BY OS

OS IMPRESSION SHARE BREAKDOWN BY MONTH

Android lost significant market share in 2012—with an average of 37% market share compared to 53% in 2011. At the

end of 2012, iOS held a 63% average share of the market.

The iPad more than doubled their average market share from 6% in 2011 to 13% in 2012.

The iPad started to grab a larger share of the market at the same time the iPad 3 was released in a number of

countries in March and April, but lost market share in May and June. The iPad’s market share began to pick back up in

July, the month the iPad 3 became available in China.

On the other hand, the release of the Samsung Galaxy S3 at the end of May might have contributed to Android’s

increasing share of the market in June through August.

The release of Android-based tablets, such as the Samsung Galaxy Tab 10.1 and the Kindle Fire HD, hardly put a dent

in the iPad’s share of the market in 2012, thanks to the popularity of the iPad and the release of the iPad Mini. By

November, the iPad had the highest market share it had seen the entire year, while Android devices lost market

share—down to 33.0% in November.

.........................................................................................................................

Android 53%

iPhone/iPodTouch41%

iPad 6%

iPhone/iPodTouch50%

iPad 13%

Android 37%

44.5%

10.2%

45.3%

43.2%

10.4%

46.4%

39.2%

11.5%

49.2%

33.3%

12.9%

53.8%

28.2%

11.2%

60.6%

34.3%

9.9%

55.8%

37.8%

11.6%

50.6%

40.7%

12.4%

47.0%

38.1%

14.3%

47.6%

36.9%

15.3%

47.8%

33.0%

16.9%

50.1%

FebJan Mar April May June July Aug Sep Oct Nov

iPhone / iPod Touch iPad Android

2012 Year in Review



CTR BY PLATFORM

iPhone and iPod Touch users are more likely to click on ads with a 1.62% average CTR.

Android users were less likely to click on an ad. This could in part be due to the varying data consumption between

iOS & Android tra�c from ad impressions.

iPhone/iPod Touch Android iPad

1.62%

1.28% 1.30%

2012 Year in Review



THE IPAD MINIDIDN’T DISAPPOINT.........................................................................................................................

Out of the three tablets listed, the iPad 3 and Kindle Fire had roughly equal impression share in July, but the Kindle

Fire’s share increased by 26% in August.

Fun Fact: The iPad Mini saw more total impressions in November than the Samsung Galaxy Tab 10.1 did in the

entire year—20x more impressions.

IMPRESSION SHARE AMONGST THREE MAJOR TABLETS RELEASED IN 2012

50.0%

July August September October November

51.4%

48.5%

0.0% 0.0% 0.0% 0.0% 2.7%

77.0%

23.0%

56.1%

43.9%

32.5%

67.5%

15.4%

81.9%

iPad Mini iPad 3 Kindle Fire

03

2012 Year in Review



PHOTOGRAPHY APPSSTEPPED UP IN 2012.........................................................................................................................

The category that saw the highest growth in impressions between January and the end of November was

Photography—impressions served on photography apps grew 289.7%. This may have been due to the increased

popularity of photo sharing apps and an improvement in hardware capabilities.

The most popular app category was games, which left almost all other categories in the dust with 51% share of

impressions served in 2012.

TOP 10 CATEGORIES

BY IMPRESSION SHARE

GROWTH IN IMPRESSIONS BY CATEGORY

.........................................................................................................................

51.0%

21.6%

7.9%4.4% 3.5% 3.1% 2.5% 1.4% 1.3% 0.8%

289.7%56.2%

54.1%

45.1%

26.7%

26.5%

22.2%

8.0%

6.9%

6.9%

-4.8%

-6.3%

-18.5%

-29.8%

-39.8%

-43.6%

-45.8%

-55.7%

-64.0%

-77.4%

Utilities

Books

Lifestyle

Games

Finance

Sports

Social Networking

Travel

Music

Healthcare & Fitness

Photography

Productivity

Weather

Medical

Navigation

Education

Reference

Business

Entertainment

News

04G

ames

Ente

rtain

men

tSo

cial

Net

wor

king

Util

ities

Phot

ogra

phy

Mus

icPr

oduc

tivity

Life

styl

e

Boo

ks

Educ

atio

n

2012 Year in Review



IPHONE: IMPRESSION SHARE BY APP CATEGORY

IPAD: IMPRESSION SHARE BY APP CATEGORY

Entertainment 24%

Games 50%

Social Networking

11%

Photography 5%

Utilities 5%Music 4%

Productivity 1%

Entertainment 13%

Games 73%

SocialNetworking

4%

Photography 3%

Utilities 2%Music 1%

Productivity 1%

Education 3%

ANDROID SMARTPHONE:IMPRESSION SHARE BY APP CATEGORY

ANDROID TABLET:IMPRESSION SHARE BY APP CATEGORY

The iPad is the go-to tablet for teachers and students—education apps are most popular among iPad users.

Photography apps are most popular amongst iPhone users. This is likely the result of the iPhone’s high-quality

camera and large number of photo apps available on iOS.

Games were the most popular type of apps across Android and iOS devices with iPad users leading the charge.

On average, people spend 42 minutes per day playing games on the iPad, 50% more than on the iPhone (assuming

consumers spend a total of an hour a day using apps).

Entertainment 28%

Games 49%

Social Networking

10%

Photography 1%

Utilities 4% Music 2%

Productivity 6%

Entertainment 33%

Games 47%

SocialNetworking

11%

Photography 1%

Utilities 6%

Music 1%

Productivity 1%

TOP APP CATEGORIES BY DEVICE

2012 Year in Review

Throughout the year, Wi-Fi impressions consistently beat out carrier impressions by a margin of 3:1. This behavior

may indicate a surge in tablet usage which tends to take place at home or work where Wi-Fi is more available.

Wi-Fi’s impression share grew from January to February, reaching the highest point in August, and then steadily

decreasing through the fall. This may have been due to the end of summer and beginning of back-to-school

season, with consumers connecting less from home and more on the go.


WI-FI VS. CARRIER IMPRESSIONS

.........................................................................................................................


05

.........................................................................................................................

WI-FI IMPRESSIONS TRUMPED CARRIER IMPRESSIONS THROUGHOUT 2012

05

Jan Feb Mar Apr May Jun Jul

74.0%

26.0%

75.5%

25.0%

74.6%

25.4%

75.0%

25.0%

74.7%

25.3%

78.4%

21.6%

79.4%

20.6%

Carrier Wi-Fi

Aug Sep

79.6%

20.4%

78.2%

21.8%

Oct

78.6%

21.4%

2012 Year in Review


Source: Mobclix Exchange, Global Data, January 1 - November 30, 2012Note: Telefonica and 3 were not included due to inability to breakdown impressions by region for these two carriers.

AT&T takes a huge chunk of impression share in

the U.S. – almost twice the share of Verizon and

more than four times the share of T-Mobile.

Vodafone is the leading mobile carrier in Europe,

by far, with 31%.

Despite having the most total users in China,

China Mobile has a much smaller share of

impressions than China Unicom (5% and 11%,

respectively). This is most likely due to the fact

that China Mobile does not carry the iPhone.

CARRIER BREAKDOWN: U.S., EUROPE AND ASIA

IMPRESSIONS BY CARRIER: U.S. IMPRESSIONS BY CARRIER: EUROPE

AT&T45%

Sprint19%

Metro PCS1%

T-Mobile10%

Verizon25%

IMPRESSIONS BY CARRIER: ASIA

Telkomsel3%

Vodafone IN 5%

Airtel 4%

China Unicom 11%

SoftBank15%

NTT Docomo

17%

SingTel8%

LGT3%

Olleh (KT) 8%

SKT 8% China Telecom 2%

Chungwa 3%

Taiwan Mobile 3%

China Mobile 5%

FarEasTone 3%

Orange20%SFR 4%

E-Plus 4%

Telecom Italia - TIM 5%

Vodafone31%

Tele2 2%Bouygues

3%

Telenor 5%

Sweden 3G 2%

Telia 3%

KPN 4%

O2 13%MTS 4%

Velti’s ‘State of Mobile Advertising 2012: Year in Review’ report delivers insight into trends in the mobile

advertising market during 2012.

The data is from the Mobclix Exchange, which sits at the intersection of +33,500 apps and +45 demand sources.

The outcomes of many sales teams, business development teams, and ad networks are aggregated and

reflected in this report to give the reader a highly accurate picture of the market.

2012 Year in Review


ABOUT THE VELTI ‘STATE OF MOBILE ADVERTISING’ REPORT

Velti is the leading global provider of mobile marketing and advertising technology and solutions that enable

brands, advertising agencies, mobile operators and media to implement highly targeted, interactive and

measurable campaigns by communicating with and engaging consumers via their mobile devices. The Velti

platform, called Velti mGage™, allows customers to use mobile and traditional media to reach targeted

consumers, engage the consumer through the mobile Internet and applications, convert them into customers and

continue to actively manage the relationship through the mobile channel. Velti is a publicly held corporation

based in Jersey, and trades on the NASDAQ Global Select Market under the symbol VELT.

Visit www.velti.com for more information and to read our blog on mobile advertising and marketing insights.

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