Business insider digital media strategies

MOBILE:

Embrace It Or Be

Run Over By It

March 5, 2014

Mobile Is Eating

The Internet

2

3 Source: Business Insider Intelligence

~60% Of Connected Devices Are Smartphones Or Tablets

Global Internet Device Installed Base

Computers

Smartphones

Tablets

Smart TVs

Wearables

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E

Nu

mb

er

Of D

evic

es In

Use

(I1

00

0s)

4 Source: StatCounter, September 2013

20% Of Total Internet Traffic Is From Mobile Devices

Global Internet Traffic (Desktop Vs. Mobile)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Desktop Mobile

5 Source: Gartner

Feature Phones Have Given Way To Smartphones

Global Mobile Phone Sales

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1Q08 4Q08 3Q09 2Q10 1Q11 4Q11 3Q12 2Q13

(10

00

s)

Smartphone Shipments Feature Phones

Especially In Developed Markets Like The U.S.

6 Source: comScore

18%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13

(as

a p

erc

en

tag

e o

f th

e m

ob

ile

po

pu

lati

on

)

U.S. Smartphone Penetration

7 Source: Gartner, IDC, Strategy Analytics, Company Filings

Tablets Continue To Cannibalize PCs

Global Internet Connected Device Shipments

PCs

Tablets

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1Q08 4Q08 3Q09 2Q10 1Q11 4Q11 3Q12 2Q13

(th

ou

sa

nd

s)

Android 45.8%

Android 61.9%

iOS 52.8%

iOS 36.0%

Microsoft, 1.0% Microsoft, 2.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013Source: Gartner, March 2014

Global Tablet End User Sales (Market Share)

And Android Continues To Gain Share

8

So how are people using their

devices?

9

10 Source: Source: Experian Marketing Services, May 2013

Smartphones Are More Useful Than Swiss Army Knives

Other 8%

Visit Websites 14%

Games 8%

Social Networking

15% Talk 26%

Text 20%

Email 9%

Average Smartphone Owner’s Daily Time Allocation

11 Source: Cisco, 2013

They Watch TONS Of Video On Mobile

Projected Global Mobile Video Traffic

0

1

2

3

4

5

6

7

8

2011 2012 2013 2014 2015 2016 2017

Mil

lio

ns o

f Tera

byte

s P

er

Mo

nth

12 Source: Google, August 2012

They Spend ½ Hour On Tablet Each Time They Pick It Up

Average Minutes Spent Per Interaction By Device

43

39

30

17

0

5

10

15

20

25

30

35

40

45

50

TV PC/Laptop Tablet Smartphone

Min

ute

s

62%

39%

67%

46%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Multiple Times A Week Daily

% O

f R

es

po

nd

en

ts

2Q 2012 1Q 2013

13 Source: Nielsen, BI Intelligence

They Use A Smartphone While Watching TV

More Than Half Combine Smartphone + TV Routinely

60%

44% 42%

25% 23%

15%

9%

0%

10%

20%

30%

40%

50%

60%

70%

Emailing Internet Browsing Social Media Playing a Game Searching Work Documents Watching Video

14 Source: Google, August 2012 (Concurrent multiscreen use is using two devices simultaneously to complete an activity)

They Email, Browse, And Share While Watching

Top Activities During Simultaneous Screen Usage

This screen fragmentation is

creating big challenges and

opportunities.

15

16

Specifically:

Where’s the money

in all of this?

17

The money goes where

the eyeballs go…

eventually.

45%

25%

17%

4%

9%

7%

44%

26%

16%

6%

8% 8%

43%

26%

15%

9%

7% 7%

42%

26%

14%

12%

6% 5%

38%

20%

12%

20%

4% 5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

TV Online Radio Mobile Print Other

2009 2010 2011 2012 2013

18 Source: eMarketer (August, 2013)

Mobile’s Share Of The Media Pie Continues To Grow

U.S. Consumer Media Consumption Share

19 Source: IAB 2013

More Attention = More Money

U.S. Digital Ad Revenue By Format

48% 43%

21%

19%

7% 15%

7% 6%

6% 7%

5% 4% 2% 2% 3% 3%

0.50% 0.40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H1 2012 H2 2013

% O

f T

ota

l D

igit

al

Ad

Rev

en

ue

Email

Rich Media

Sponsorship

Lead Generation

Digital Video

Classifieds

Mobile

Display/ Banner

Search

6%

42%

26%

14%

12%

23%

43%

22%

10%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Print TV Web Radio Mobile

Time Spent Ad Spend

20 Source: Mary Meeker, IAB, eMarketer

The Gap Between Mobile Spend And Time Spent Is Huge

2012 U.S. Ad Spending Vs. Consumer Time Spent By Media

$3.50

$0.75

Desktop Internet Mobile Internet

21 Source: comScore, Vivaki, Mobclix Exchange

And While Mobile CPMs Are Vastly Lower Than Desktop

Effective CPM, Desktop Vs. Mobile

22 Source: Ad platforms, BII Research, Greg Sterling, Opus Research

Certain Formats Are Improving

CPMs For Selected Mobile Ad Platforms

$10.00

$5.00

$5.00

$3.50

$- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00

Flurry video ads

Adsmobi video ads

LSN Mobile local ads

xAd local

0.07%

2.43%

1.21%

0.08%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

No Placement Targeting Mobile News Feed Only Desktop News Feed Only Desktop News Feed + RightHand Side Panel

Source: TBG Digital, Q3 2012

Facebook Ad Performance By Click-Through Rate

Native Advertising Is The Essential Social/Mobile Format

23

What does the environment

look like for premium

publishers?

24

Source: comScore Media Metrix (December 2013)

Device Traffic Breakout Among Business And Tech Sites

Unique Visitors By Device – Multi Platform (December, US)

0

5000

10000

15000

20000

25000

30000

Mobile Desktop

25

Business Insider Is Leading The Mobile Charge

% Of Uniques From Mobile (US)

Source: comScore Media Metrix (December 2013) 26

WSJ, Bloomberg, Forbes,

Economist, CNNMoney

0%

10%

20%

30%

40%

50%

60%

Business Insider Business Category Average Tech Category Average

Mashable, The Verge,

Wired, Gizmodo,

Engadget, TechCrunch

For Most, Mobile Growth Has Been Anemic

Uniques From Mobile (US)

Source: comScore Media Metrix (December 2013) 27

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

Business Insider Business Category Average Tech Category Average

Mashable, The Verge, Wired,

Gizmodo, Engadget, TechCrunch

WSJ, Bloomberg, Forbes,

Economist, CNNMoney

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tablet

Mobile

Desktop

Phone: 39%

For Business Insider, The Growth Has Been Explosive

Source: Google Analytics (January, 2014)

MOBILE + TABLET

50%

118% YoY Tablet Growth

(Uniques)

Of All Uniques

240% YoY Mobile Growth

(Uniques)

Desktop: 50%

Tablet: 11%

Nov 2009 January 2014

Business Insider Global Uniques By Device

28

Mobile’s Share Of Total Visits Continues To Climb

Source: Google Analytics (January, 2014)

0%

10%

20%

30%

40%

50%

60%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

iPhone iPad Android Blackberry Windows Share Of Total Visits

Share Of Total Visits Visits Visits By Device Vs. Share Of Total Visits

29

30 Source: Google Analytics, Business Insider

Mobile Makes Weekends Media Time

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

11/1/13 11/8/13 11/15/13 11/22/13 11/29/13 12/6/13 12/13/13 12/20/13 12/27/13 1/3/14 1/10/14 1/17/14 1/24/14 1/31/14

Desktop Visits Mobile Visits

Source: Google Analytics (January 2013)

Same For Off-Hours As Readers Juggle Their Devices

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

4:00AM

5:00AM

6:00AM

7:00AM

8:00AM

9:00AM

10:00AM

11:00AM

12:00PM

1:00PM

2:00PM

3:00PM

4:00PM

5:00PM

6:00PM

7:00PM

8:00PM

9:00PM

10:00PM

11:00PM

Visits From Smartphone Visits From Desktop

Average Visits Per Hour

31

Source: Google Analytics (January 2014)

Evening Is Tablet Time

Visits From Tablet Devices By Hour Of Day

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

12:00AM

1:00AM

2:00AM

3:00AM

4:00AM

5:00AM

6:00AM

7:00AM

8:00AM

9:00AM

10:00AM

11:00AM

12:00PM

1:00PM

2:00PM

3:00PM

4:00PM

5:00PM

6:00PM

7:00PM

8:00PM

9:00PM

10:00PM

11:00PM

Visits From Tablet

32

0

0.5

1

1.5

2

2.5

3

3.5

4

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

Smartphone Visits Mobile PVs / Visit

Mobile Is Transforming User Behavior

Source: Google Analytics

As Mobile Visits Surge, Duration Drops But Frequency Grows

33

How has Business Insider

responded to the trend?

34

Consistent UX Across All Devices, Platforms

App Browser

“Mobile Parity”

35

Should we be

“mobile first?”

or

“mobile only?”

36

NO.

37

Digital is multi-screen.

38

People Like Big Screens

39

We Need Distribution On All Platforms

PersonalComputers

Smartphones

Tablets

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E

Units

Source:Gartner,IDC,StrategyAnaly cs,CompanyFilings,BIIntelligenceEs mates

GlobalInternetConnectedDeviceShipmentsGlobal Connected Device Shipments

40

We should be everywhere.

41

Our Advertising Clients Should Be Too (We’ll Help)

THE PROBLEM:

Creative agencies continue to build in Flash, a format that doesn’t translate to

mobile. Static images typically used to back up Flash are boring.

THE SOLUTION:

Business Insider offers Flash to HTML5 conversion, allowing creative to flourish

on all screens.

42

In-stream “Native” Mobile Placements (Sponsor Content)

43

Sponsor content in-stream on smartphones Major uptick in engagement.

So what’s next?

44

Cross-Device Targeting With Big Data

With device fragmentation (and lack of cookies), it’s difficult to reach the same

readers as they move between devices.

Using our own and third-party data,

we’ll soon be able to do so.

Cross-Device Targeting

Same Reader

45

THANK YOU

46