state of

FEBRUARY 2013

MOBILE ADVERTISING

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Data Feature:

iPhone 4 Takes the Top Spot in US, Asia and Europe

Despite Samsung dominating the smartphone market, Apple continues to win advertising dollars.

US / Canada

ASIA

20.8%
20.0

19.1%

20.0

18.7%

% Share OF Impressions

15.5%

10.0

10.0

5.0

5.0

0.0

iPhone 4

iPhone 4S

iPod Touch

0.0

iPhone 4S

iPhone 4

iPhone 5

EUROPE
20.0

iPhone 4 Takes the Cake

18.5%

% Share OF Impressions

13.6%

15.0

16.0%

10.0

The only Android device that makes it into the top 5 is the Samsung Galaxy S2, which took #5 in Europe. Asia is the only region where the iPhone 5 is a top 3 device. This may be due to consumers in highly connected countries with higher smartphone penetration such as South Korea, Japan, Singapore, and Hong Kong demanding the latest and greatest devices.

5.0

0.0

iPhone 4

iPhone 4S

iPad 2

* Source: Mobclix Exchange, Global Data, February 1 28, 2013

11.8%

15.0

% Share OF Impressions

15.0

19.2%

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Monthly Indices
Device Index: iPhone Gaining Share
top 10 devices % Share OF Impressions
20.0 15.0 10.0 5.0 0.0

14.5% 13.7% 9.4% 7.5% 6.4% 5.4%

2.8% 2.8% 2.4% 1.8%

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d2

e4

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on

iPa

on

iPa

d3

e4

e5

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iPh

on

iPh

ala gG

xy

iPh

iPo

* Source: Mobclix Exchange, Global Data February 1 28, 2013

iOS devices accounted for 8 out of every 10 devices, by impression. iPhone devices alone had a 37.4% share, while iPads comprised 17.2% of all impressions served in February.

Sa

Platform Index: iOS Maintaining Market Share

jan 2013
Android iOS Android

feb 2013
iOS

ms

un

Although Samsung Galaxy devices only comprised less than 5% share in February combined, the release of Samsungs new Galaxy S IV in March might prove to be an interesting shift in upcoming months.

34.9% 65.1%

34.6% 65.4%

There wasnt significant movement in OS market share between January and February; iOS gained only 0.3% share. Advertiser demand remains consistent with iOS, garnering more than 60% of impressions for the past 6 months.

* Source: Mobclix Exchange, Global Data January 1 February 28, 2013

iPh

on

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Category Index: Games Hold Steady
Top 10 Categories
50.0 40.0 30.0 20.0 10.0 0.00

48.8% 47.8%

% Share OF Impressions

Jan-13

Feb-13

22.6% 24.3% 5.1% 5.3%

4.6% 4.5%

3.5% 3.7%

3.6% 3.4%

3.2% 2.8%

3.9% 2.8%

1.1% 1.8%
Healthcare & Fitness

Games

Entertainment Photography

* Source: Mobclix Exchange, Global Data January 1 February 28, 2013

Social Networking

Books

Utilities

Music

Productivity

Game and Entertainment apps continue to lead in impression share early in 2013, with 47.8% and 24.3% respectively.

Photography apps stole the #3 spot from Social Networking apps this month, moving up from #4 where they ended in 2012.

Day of Week: App Usage Peak Shifts to Weekends

Impression Breakdown By Day of Week
17.0
% Share OF Impressions

Jan-13

Feb-13

15.7%
15.5

15.3% 14.3% 13.9%

16.5% 13.8%

15.4% 13.7% 13.7% 12.9%

14.9%

14.1%
14.0 12.5 11.0

13.2%

12.6%
Sun Mon Tue Wed Thu

Fri

Sat

* Source: Mobclix Exchange, Global Data January 1 February 28, 2013

In February, weekends saw the highest levels of app usage, with Sundays accounting for 15.7% of all impressions served. Users interact less with their mobile devices as the work week progresses the prospect of getting work done and starting weekends earlier might be the only thing that can pry our devices away from us.

In contrast, January usage dipped on Mondays, increased through Tuesday and spiked Wednesday before slowly declining through Friday. Publishers and marketers should keep in mind daily usage patterns as an important factor in getting the highest return on clicks, and ultimately revenue, for their specific site or app.

1.0% 1.1%
Lifestyle

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Tablet Index: iPads Dominate
Tablet Impression Breakdown by Device
iPad Kindle Fire Samsung Galaxy Tab iPad Mini 0.7% 1.9% 5.2%

92.3%
Feb-13

iPads are dominating tablet usage; Android tablets only make up a fraction of tablet impressions, at 0.7%. For the first time since 2010, we might see a significant shift in tablet share. According to IDC, Android is expected to grow share to 49%, taking the top spot in 2013.

93.0%
Jan-13

0.7% 1.6% 4.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100%

% Share OF Impressions
* Source: Mobclix Exchange, Global Data January 1 February 28, 2013

Region Spotlight: Europe

Europe Impression Breakdown by Country
20.0

% Share OF Impressions

16.7% 14.2%

16.4% 16.0%

16.1% 15.3%

Jan-13

Feb-13

15.0

8.5% 8.9%

8.6% 8.8%

4.9% 6.2%

5.6% 5.1%

10.0

6.6% 6.6%

3.6% 3.7%
Denmark

5.0

0.0

Netherlands

UK

Spain

Germany

France

Sweden

Russia

Italy

* Source: Mobclix Exchange, Global Data January 1 February 28, 2013

Surprise: The Netherlands saw the highest share of impressions in Europe at 16%, while its population comprises only 2.3% of the population in Europe. Despite the buzz around growing smartphone and tablet usage in the UK, the UK trailed the Netherlands. However, at 8.5% the population of Europe, the country still comprised 15% of impressions.

Despite having 72% more citizens, Germany trailed behind Spain at 9% of impressions, while Spain saw 14%. However, Germanys share of impressions increased by 0.4%, while Spains fell by 2.5% in February. Russia saw a 1.3% increase in impression share between January and February.

3.0% 3.0%
Norway

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Region Spotlight: Asia
Asia Impression Breakdown by Country % Share OF Impressions

20.0

19.0% 15.7%

18.7% 18.8%

Jan-13

Feb-13

15.0

12.6% 12.2%

4.4% 8.2%

7.3% 7.0%

6.6% 6.6%

5.7% 6.5%

4.9% 4.1%

10.0

5.4% 6.1%

5.0

0.0

China

Japan

India

South KoreaSingapore Thailand

taiwan

malaysia Indonesia Philippines

* Source: Mobclix Exchange, Global Data January 1 February 28, 2013

Singapore comprises 0.13% the population of Asia (World Bank, 2011), yet accounted for 7% of ad impressions. Japan comprises 3.1% the population of Asia (World Bank, 2011) but 16% of impressions in the region, dropping more than 3% from January.

South Korea comprises just 1.2% the population of Asia (World Bank, 2011) but 8% of ad impressions. As a matter of fact, the highly connected countrys share of impressions in the region nearly doubled between January and February.

CTR Index: China Takes the Lead

CTR Index of Top 10 Countries
400

330 343

Jan-13

Feb-13

China, the largest potential market in the world, saw excellent click-through rates 3.4x higher than Spain, while established markets like the US, UK and Germany lagged. China and Japan were two out of four countries in the top 10 that saw CTRs increase between January and February, most likely due to the Lunar New Year holiday in February. Although Spain comprises 14% of impressions served in Europe, the country saw relatively low CTR compared to the other nine countries in which the most impressions were served.

249 228 241 227

200

235 217 223 213 199 212 213 195

300

267 255 229 238

100

China Netherlands US

UK

Germany Australia France

Japan

Canada

* Source: Mobclix Exchange, Global Data January 1 February 28, 2013 Methodology: Smallest number in January was used as base. Divided all numbers for both months by this number.

100 111

Spain

4.5% 3.9%

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CTR Index: Android Seeing More Clicks
ctr INDEX by platform

200 150

Jan-13

Feb-13

100

136

Despite a lower share of impression, Android users are more likely to interact with ads; Android saw nearly a 50% higher CTR than iOS in February. CTRs fell across iOS and Android devices in February, as consumers settle from the post-holiday frenzy.

100 50 0

iOS
* Source: Mobclix Exchange, Global Data January 1 February 28, 2013

91

Methodology: Smallest number in January was used as base. Divided all numbers for both months by this number.

eCPM Index: iOS A More Lucrative Platform

ecpm index BY PLATFORM

200 150

140

Android

Jan-13

Feb-13

Despite its advantage in CTR, iOS is still the advertisers darling: iOS commands a 20% premium over Android. eCPM for both iOS and Android declined slightly between January and Februarythis may have also been due to consumption settling after the holidays.

121

110

100

100 50 0

iOS
* Source: Mobclix Exchange, US Data January 1 February 28, 2013

Android

Methodology: eCPM is based on a scale. eCPM was calculated by taking the smallest number in January as the base, dividing all numbers for both months by that number, and then multiplying allnumbers by 100.

91

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About the Velti State of Mobile Advertising Report
Veltis State of Mobile Advertising report delivers insight into trends in the mobile advertising market on a monthly basis. 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.

About Velti
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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