Q3 2011 - Network Research Webinar | Smartphone | Mobile Phones

A GLOBAL VIEW OF MOBILE ADVERTISING: Quarter 3, 2011 Webinar

InMobi Mobile Insights - Network Data October 25th, 2011

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ABOUT THE RESEARCH
Project Background After launching in 2007 in Asia, InMobi quickly grew to become the world's largest independent mobile advertising network. In the third quarter of 2011, we served 138.4 billion impressions in 165 markets worldwide. With a physical presence in 5 continents, over 5,500 publisher partners, and a broad, independent market footprint, InMobi is well positioned to provide an objective, comprehensive, and representative view of the mobile advertising market. Research Objectives We have three goals with this research: 1.  Help educate the market. Statistics and information about the state of mobile advertising are lacking in most regions of the world. 2.  Track consumer opinions regarding mobile advertising. With any emerging medium, the consumer perspective is critical to overall market success. We see a need for trending across regions in this area. 3.  Collaborate with industry thought leaders to increase market insight and improve information quality ongoing. As a global independent company, we value partnerships that will strengthen our understanding of the market. Researchers, thought-leaders, and analysts are encouraged to contact us and apply for full partner access. Contact Information www.inmobi.com/research research@inmobi.com Twitter: @inmobi
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CONTENTS

InMobi Q3 Research Webinar Content
•  Q3 Network Research Highlights •  Africa •  Asia Pacific •  Central & South America •  Europe •  Middle East •  North America •  Key Insights & Global Trends •  Smartphone growth leader •  Advertisers & Smartphones •  Android is King •  Global Monetization

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NETWORK DATA
Specifications Data in this report are sourced from our global mobile advertising network which served 138.4 billion impressions in the third quarter of 2011. With 165 countries receiving over 50.4 billion impressions in September, we are able to claim one of the broadest and most representative networks in the world. Exact specifications are as follows: • Global Available Impressions in Quarter 3, 2011: 138.4 billion • Regions Represented: Africa, Asia Pacific, Europe, Middle East, North America, and South America • Countries Represented: 131 countries with over 10 million impressions per month • Base Measure: Available Impressions • Time Periods: Q2 2011 (April – June 2011), Q3 2011 (July – September 2011)

Representation
InMobi is committed to an independent and transparent leadership position in mobile advertising. With that in mind, the following issues are present in this data. Mobile Advertising Market Definition: This report covers mobile display advertising only including both Mobile Web (WAP) and APP. SMS/Text and Search are NOT included in this synopsis. Scale and Time In Market: Representation within the network is a function of the both scale and time in market. Readers can expect more fluctuation and variance in younger, smaller markets for the company. Publisher Mix: As with any ad network, market representation is a function of the publisher mix. We have over 5,500 publishers of all sizes and content types, but changes to the publisher mix in a given market could impact the data. Advertiser Mix: Similar to publisher mix, the advertiser mix could impact the numbers in our network, although to a much lesser extent than publishers.
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MEASURES AND TERM DEFINITIONS
Measures:
Available Impressions: The total number of ads requests made to the InMobi network % Share (of Available Impressions): The % of total available impressions in the specified region allocated to the inventory type, device, manufacturer, or OS under analysis. Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified region or country relative to that same inventory type, device, manufacturer, or OS share globally. Regional Development Index: Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified country relative to that same inventory type, device, manufacturer, or OS share in the relevant region. % Chg: The percentage change in absolute value between two different time periods. Pt Chg: The difference between two share percentages for an inventory type, device, manufacturer, or OS under analysis in different time periods.

Definitions:
Smartphone: Any impression served to an iPhone OS, Android OS, RIM OS, webOS, Windows Mobile OS, Linux Smartphone OS, Palm OS, Nokia N & E Series Phones, or Samsung Bada. Advanced: Any impression served to any OS or handset not included in the smart phone definition above. Mobile Web: Any impression served using Wireless Application Protocol (WAP) which is an open international standard for applicationlayer network communications in a wireless-communication environment. App (Application): Any impressions served to a mobile application resident on the consumer mobile device. Carrier: The mobile network operator (MNO), carrier service provider (CSP), wireless service provider, wireless carrier, or cellular company providing service for mobile phone subscriber served the impression. OS (Operating System): The system software (programs and data) running on the mobile devices that manages the hardware and provides common services for execution of various application software receiving the impression. Handsets and Connected Device: The make and model of the mobile device receiving the impression. Manufacturer: The OEM manufacturer of the mobile device receiving the impression. Other: An aggregation of any remaining impressions not specifically detailed previously. Typically an aggregation of everything under 1% share.

InMobi Regional Definitions:
InMobi defines all regions per Wikipedia with the following modifications: “Asia Pacific” includes the 15 Oceania countries as listed in Wikipedia. “South America” includes South & Central Americas as listed in Wikipedia.

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GLOBAL SUMMARY
The global mobile ad ecosystem continues its significant growth, increasing ad impressions by 32.6% from Q2 2011 to Q3 2011.
"  The InMobi network gained nearly 34 billion ad requests in Q3 2011. Continued significant growth in the global mobile ecosystem highlights the healthy mix of increasing consumer mobile usage, advertiser adoption and publisher focus on mobile advertising.

Smartphone impression growth far outpaces advanced phones. Smartphones now represent 43% of all mobile ads on the InMobi network.
"  52% growth in impressions on Smartphones over the past quarter clearly underlines the shift towards Smartphone usage among consumers globally.
Available Impression Volume & Composition Q2 2011 Total Smartphone Advanced Mobile Web App 104,334,888,661 39,314,783,903 65,020,104,758 86,948,843,684 17,386,044,977 Q3 2011 138,351,025,951 59,979,601,147 78,371,424,804 109,314,697,724 29,036,328,227 % Chg 32.6% 52.6% 20.5% 25.7% 67.0%

In-application advertising continues to grow quickly, although it only represents 21% of all mobile ads on the InMobi network.
"  In application ads are highly utilized in only a few key markets across the globe. Globally, most mobile ads are still delivered in the mobile web experience, which is platform agnostic.

Source: InMobi Mobile Insights – Network Research, Q3 2011

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GLOBAL
Global OS Share: Q3 2011
Available Impressions
Android 21%   22%   Nokia OS Symbian OS 10%   18%   11%   18%   iPhone OS RIM OS Others
OS Android Nokia OS Symbian OS iPhone OS RIM OS Others Impressions 31,095,406,496 25,183,777,402 24,348,191,250 15,222,377,217 13,269,885,290 29,231,388,297 % Share 22.5% 18.2% 17.6% 11.0% 9.6% 21.1% Pt. Chg +7.2 -1.8 -1.5 -3.8 +3.6 -3.7

The Android OS gained 7.2 share points and surpassed both the leading operating systems, Nokia and Symbian.
"  Although iPhone OS gained significant traction in Q2 2011, Android OS growth has outpaced all the leading OS’s on the InMobi network over the past quarter. "  Ad impressions are fairly well distributed across the top 4 mobile platforms. Android is controlling over 22% of impression share.

Source: InMobi Mobile Insights – Network Research, Q3 2011

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GLOBAL
Global Manufacturer Share: Q3 2011
1%   3%   4%   6%   6%   10%   36%   6%  

Available Impressions
Nokia Samsung Apple RIM HTC SonyEricsson LG Motorola
Manufacturer Nokia Samsung Apple RIM HTC SonyEricsson LG Motorola DoCoMo Others Impressions 49,491,045,378 24,747,590,276 15,222,377,217 13,269,885,290 8,190,274,125 7,872,153,468 5,700,658,465 3,648,747,769 1,962,380,787 8,245,913,176 % Share 35.8% 17.9% 11.0% 9.6% 5.9% 5.7% 4.1% 2.6% 1.4% 6.0% Pt. Chg -3.2 +3.1 -3.8 +3.6 +0.9 -1.5 +0.1 -0.5 +1.3 +0.1

11%  

18%  

DoCoMo Others

Nokia holds the top manufacturer spot by global ad impressions, holding a commanding 35.8% share of impressions.
"  Samsung gained 3.1 share points to surpass Apple and secure the 2nd spot in the manufacturer category. "  Outside of the top 3 manufacturers, the global ad impression market is considerably fragmented across the remaining 5 major manufacturers

Source: InMobi Mobile Insights – Network Research, Q3 2011

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GLOBAL
Global Handset and Connected Device Detail: Q3 2011
Handset Apple iPhone 4 RIM BlackBerry 8520 Nokia 6300 Nokia 5233 RIM BlackBerry 9800 Nokia 3110c Apple iPod Generation IV Apple iPad I HTC 001HT Nokia C3-00 Nokia C1-01 Nokia N73 RIM BlackBerry 9700 RIM BlackBerry 9300 Samsung GT-I9000 Impressions 5,703,047,167 4,119,025,675 2,503,775,917 2,360,111,627 2,356,015,544 2,106,099,465 2,018,186,153 1,910,102,922 1,868,878,125 1,860,928,144 1,747,778,250 1,744,569,994 1,705,622,822 1,674,867,330 1,641,743,468 % Share 4.1% 3.0% 1.8% 1.7% 1.7% 1.5% 1.5% 1.4% 1.4% 1.3% 1.3% 1.3% 1.2% 1.2% 1.2% Pt Chg +0.7 +0.6 -0.4 +0.3 +1.2 -0.5 +0.5 +0.2 +1.3 +0.0 +0.5 -0.2 +0.5 +0.6 -0.0

The Apple iPhone 4 gained 0.7 share points to remain the top device globally. 6 of the top 15 handsets are Nokia devices.
"  The Apple iPhone 4 is the top device by share of impressions. "  The top 10 handsets are mostly smartphones, once again underlining the rich opportunity for advertisers to reach audiences at scale with rich experiences.

Source: InMobi Mobile Insights – Network Research, Q3 2011

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NORTH AMERICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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NORTH AMERICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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NORTH AMERICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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EUROPE SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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EUROPE SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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EUROPE SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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EUROPE COUNTRY DETAIL

%  Growth  
1)  Spain   2)  France   3)  UK   4)  Italy   5)  Germany            105%    102%    64%    60%    -­‐9%  

%  Smartphone  
1)  France   2)  Germany 3)  UK   4)  Spain   5)  Italy              87%    86%    84%    78%    72%  

Share   1)  Germany   2)  France   3)  Spain   4)  Italy   5)  UK  

Share  

Top  Manufacturer  
1)  Germany   2)  France   3)  Italy   4)  UK   5)  Spain  
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France   Germany   Italy     Spain   UK    

         

 Apple    Apple    Samsung    RIM    Apple  

ASIA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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ASIA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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ASIA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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ASIA PACIFIC COUNTRY DETAIL

%  Growth  
1)  Taiwan   2)  China   3)  Hong  Kong 4)  Japan   5)  Malaysia 6)  India   7)  Singapore 8)  Indonesia 9)  Australia                    120%    99%    49%    45%    37%    35%    30%    1%    0%  

%  Smartphone  
1)  Japan   2)  Taiwan   3)  China   4)  Australia 4)  Singapore 6)  Hong  Kong 7)  Malaysia 8)  Indonesia 9)  India                      99%    96%    93%    85%    85%    82%    50%    16%    13%  

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ASIA PACIFIC COUNTRY DETAIL

Share   1)  Taiwan   2)  Japan   3)  China   4)  Hong  Kong   5)  Singapore   6)  Malaysia   7)  Australia   8)  Indonesia   9)  India  

Share   1)  Singapore   2)  Australia   3)  China   4)  Japan   5)  Hong  Kong   6)  Malaysia   7)  Taiwan   8)  Indonesia   9)  India  

Top  Manufacturer  
Australia   China   Hong  Kong India   Indonesia   Japan   Malaysia   Singapore Taiwan                      Apple    Apple    Samsung    Nokia    Nokia    Apple    Nokia    Apple    HTC  

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AFRICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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AFRICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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AFRICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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AFRICA COUNTRY DETAIL

%  Growth  
1)  Kenya     2)  Nigeria     3)  South  Africa    43%    42%    20%  

%  Smartphone  
1)  South  Africa   2)  Nigeria     3)  Kenya      29%    11%    8%  

Share  

Share  

Top  Manufacturer  
1)  Kenya   2)  South  Africa     3)  Nigeria   1)  South  Africa   2)  Kenya   3)  Nigeria   Kenya     Nigeria     South  Africa    Nokia    Nokia    Nokia  

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CENTRAL & SOUTH AMERICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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CENTRAL & SOUTH AMERICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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CENTRAL & SOUTH AMERICA SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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MIDDLE EAST SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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MIDDLE EAST SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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MIDDLE EAST SUMMARY

Source: InMobi Mobile Insights – Network Research, Q3 2011

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KEY MOBILE TRENDS

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ASIA LEADS SMARTPHONE GROWTH

Number  of  Smartphone  Impressions  by  Region  
(billions)  
Asia   Oct  '09   North  America   Total:   2.1bn   Europe   Middle  East   South  America   Africa  

Oct  '10  

Total:   7.2bn  

Sep  '11  

35%    

31%    

18%    

6%    4%     4%    

Total:   23.2bn   (100%)  

Asia  is  the  largest  region  based  on  number  of  Smartphone  impressions  
Source: InMobi Mobile Insights – Network Research, Q3 2011

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TOP MARKETS BY NUMBER OF TOTAL IMPRESSIONS
Q2  (billions)   1.  India  (24.3)   2.  USA  (13.7)   3.  Indonesia  (12.9)   4.  Vietnam  (4.9)   5.  Japan  (3.1)   7.  Nigeria  (2.3)   8.  Mexico  (2.3)   9.  UK  (2.2)   10.  Canada  (2.1)   Q3  (billions)   1.  India  (32.7)   2.  USA  (18.9)   3.  Indonesia  (13.0)   4.  Vietnam  (4.6)   5.  Canada  (4.5)   7.  UK  (3.6)   8.  Nigeria  (3.3)   9.  South  Africa  (3.1)   10.  Mexico  (2.8)   Fastest  Growing  Markets,  Q2  –  Q3   1.  India  (+8.4)   2.  USA  (+5.1)   3.  Canada  (+2.4)   4.  UK  (+1.4)   5.  Japan  (+1.4)   6.  China  (+1.1)   7.  Nigeria  (+1.0)   8.  Spain  (+0.9)   9.  Brazil  (+0.9)   10.  Saudi  Arabia  (+0.8)  

6.  South  Africa  (2.6)   6.  Japan  (4.5)  

•  4  of  the  fastest  growing  markets  by  number  of  impressions  are  currently  not  in   the  top  10   •  Growth  coming  from  emerging  markets  (India,  China,  Nigeria)  as  well  as   developed  ones  (UK,  Japan,  Canada)  
Source: InMobi Mobile Insights – Network Research, Q3 2011

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TOP ADVERTISERS ARE FOLLOWING SMARTPHONES

Smartphone  Impression  Growth   (billions)  
203   Fortune 1000 Advertisers - Global 138  

250  

Africa   South  America   Middle  East   Europe   North  America   Asia  

62   3   2.1  
Oct  '09  

4   2.7  
Jan  '10  

8   3.5  
Apr  '10  

25  

37  

4.7  
Jul  '10  

7.2  
Oct  '10  

11.4  
Jan  '11  

14.0  
Apr  '11  

18.3  
Jul  '11  

23.2  
Sep  '11  

Source: InMobi Mobile Insights – Network Research, Q3 2011

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IN Q1 NOKIA OS HAD THE HIGHEST IMPRESSION SHARE

Share of Impressions, Q1 2011

21.8%   19.8%   13.8%   10.0%  
Source: InMobi Mobile Insights – Network Research, Q3 2011

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ANDROID BECOMES THE #1 GLOBAL OS

Share of Impressions, Q1 2011

Share of Impressions, Q3 2011

Q1-Q3 Change

21.8%   19.8%   13.8%   10.0%  

22.5%   18.2%   17.6%   11.0%  

8.7   3.6   2.2   1.0  

Source: InMobi Mobile Insights – Network Research, Q3 2011

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IPHONE MAY BOOST IOS SHARE OVER NEXT 6 MONTHS Mobile Subscribers Who Plan on Switching to iPhone 4S: Mobile Subscribers Who Plan on Switching to iPhone 5:

27.9%   11.1%   10.8%  
Before the October 4th Apple iPhone announcement,

51.8%   50.7%   27.1%  

41% of

current mobile subscribers in North America intended to buy an iPhone 5
Source: iPhone 5 and the Mobile Market, InMobi, September 27, 2011

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GLOBAL MONETIZATION DOES NOT DIFFER BY 10X

Mobile  MoneJzaJon  (eCPM)  &  Growth  
Global  Y/Y  Change:  +84%    186      164    

 90    

 89    

 78    

 70    

+176%   Europe  

+186%   North   America  

+21%   Africa  

+674%   South   America  

+94%   Asia   Pacific  

+117%   Middle   East  

Y/Y  Change  

Source: InMobi Mobile Insights – Network Research, October 2011

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NEXT STEPS
This data is part of a series of network reports that are released monthly. Additional regions and markets will be released throughout the quarter. Release Schedule
Once a quarter InMobi will release a full data report which will include global, regional and country data views. The next full release is planned for mid January. Infographics with monthly data will be available in November and December. Monthly data updates including key information by market will be released via our mailing lists and website. While we move to a quarterly release schedule, we will still continue to release insightful data on key markets across regions on a monthly basis. These releases will shed light on emerging trends and unique developments specific to those key markets.

Open Source Research: Getting Involved
Objective industry analysts and thought-leaders are encouraged to comment, question, and participate. We will be sure to consider and update the research based on feedback and questions to improve the quality for all end users.

To join our monthly research mailing list, contact us at Research@InMobi.com To download the full reports, visit us at www.InMobi.com/research

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