Mobile Advertising in the UK

Carl Uminski

March 2011

1Somo Ltd – Copyright & Confidential

MOBILE WEB SITES

APPLICATIONS

CREATIVE

A full service mobile marketing agency

2

YIELD MANAGEMENT

MEASUREMENTOPTIMISATION

DELIVER ROI

ADVERTISING CAMPAIGN

PLANNING &BUYING

STRATEGICCONSULTANCY

BRANDTRANSITION

Somo Ltd – Copyright & Confidential

The Founding Team

3Somo Ltd – Copyright & Confidential

Nick Hynes – CEOChairman, Reward Ltd (current)Chairman, Review Centre (current)Non-executive Director, TradeDoublerFounder & CEO, The Search WorksFounder & CEO, Overture EuropeFounding team, Airmiles

Dave Evans – DirectorCTO, SurfKitchen Mobile PortalsVP Product Platforms, O2CTO BTLooksmart

Carl Uminski - COOCTO, Trutap Mobile Social NetworkHead of Mobile Search, Yahoo WorldwideCo-Founder & CTO, Overture Europe Systems Manager, British Airports (BAA)

Simon Edelstyn – DirectorMD Europe, Outbrain IncMD, Contraco ConsultingMD, EQO InternationalDistribution Director, Google EuropeGM, BTLooksmart

A selection of our 40+ global clients

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UK handsets represent a huge brand opportunity

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34% + of all mobiles are REAL smartphones today

• Affordable data

• Mass wi-fi coverage

• Advanced applications

• Powerful micro-computer

• High spec. camera

• GPS location aware

• Accelerometer

• A wallet

UK smartphone market within a European context

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The UK has Europe’s largest volume of high end smartphone users

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Microsoft

Android

RIM

Apple

Symbian

16M 16M 14M 13M 12M

34% 34% 25% 37% 36%% smartphoneadoption

No. of smartphonesubscribers

% S

mar

tph

on

e O

pe

rato

r Sh

are

+ Source: ComScore MobiLense Dec 2010, July 2010

High end smartphones drive the revenue opportunity

IAB

Results

£771M Missed

Opportunity

Av. Order Value £14.50+

51% bought

using their mobiles +

+ Source: IAB Consumer M-Commerce October 2010, * ComScore MobiLense December 2010

10%

15%

20%

25%

30%

35%

40%

UK

US

Increase in smartphones*

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Print TV Radio Desktop Mobile

Time Spent

Ad Spend

Growing proportion of consumer time*

0%

20%

40%

60%

80%

100%

120%

Email News and Information

Social Networking

YoY increase of mobile activity*

MM

M

M

M

M

Source: IAB/PwC Mobile Ad Spend Study April 2010

3850

86

135

211

285

2009 2010 2011 2012 2013 2014

iab forecast UK mobile ad spend to increase

HTML5 and Applications are driving brands to smartphones

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FREE PAID

• The majority of apps are paid• 40% free apps• Downloading of paid apps is in decline• Ad funded applications growing

Application stores

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Applications and mobile internet browsers have equal usage*

+350,000 apps

(Est. 7M UK iPhone & iPod)

(Est. 1M UK iPads)

+200,000 apps

(Est. 1.5M UK Devices)

50,000 apps

The average user installs 7 new apps per month, up 40% y/y**

Global mobile app revenue due to hit $35B by 2014***

Source: * Comscore Feb 2011 / ** Flurry statistics / *** IDC

Positioning on mobile matters = success

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Every element of your SEO strategy needs to be re-thought for mobile

App stores are of key importance

• Mobile content often duplicated

from web

• Touch screens UI image focused

• Limited content

• Mobile link building in it’s infancy

• Most tools (including Google’s) not optimised for mobile sites

Challenge of Mobile SEO

Advertising on mobile is highly fragmented

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blind networks

search Stores & social

...which makes buying a specialist task

premium publishers & operators

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Multiple advertising options have multiple formats

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Gaming and virtual goods have enjoyed huge success

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125 years of Angry Birds played daily

£10 per month ARPU from virtual goods

Luxury global brands pioneer in UK m-Commerce...

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The near future

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SOcial LOcal MObile

Top tips for mobile advertising

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Understand your

customers need

Take advantage of the

personal nature of mobile

Advertise in contexts that are

relevant to your consumers

Track direct actions and research

indirect effects of activity

Create an asset that solves your

customers need

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ありがとう

Carl Uminski carl@somoagency.com

+ 44 7740 758494

17Somo Ltd – Copyright & Confidential