eMarketer_Mobile_Ad_Trends_in_France_and_Germany.pdf

7/28/2019 eMarketer_Mobile_Ad_Trends_in_France_and_Germany.pdf

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MOBILE ADTRENDS IN

FRANCE AND

GERMANYMomentum Builds, asMultinationals Lead the Way

MAY 2013

Karin von Abrams

Contributors: Victor Aka, Tobi Elkin, Natalie Marin-Sharp

Read this on

eMarketer or iPad
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MOBILE AD TRENDS IN FRANCE AND GERMANY: MOMENTUM BUILDS, AS MULTINATIONALS LEAD THE WAY 2013 EMARKETER INC. ALL RIGHTS RESERVED 2

CONTENTS

3 Overview: Mobile Advertising in Western Europe

10 France

15 Germany

20 Conclusions

21 eMarketer Interviews

21 Related Links

21 Editorial and Production Contributors

EXECUTIVE SUMMARY

The UK remains by ar the largest mobile advertising

market in Western Europe, and eMarketer estimates

it will account or nearly 53% o mobile internet ad

spending in the region this year. By comparison,

France and Germany will represent 12% and 6.8%,

respectively, o the $2.92 billion mobile ad spend total.

Yet those shares are beginning to add up to serious

money, with $349 million projected or Germany and

nearly $200 million orecast or France in 2013. Within

ve years, mobile ad spending is expected to reach

$1.8 billion in Germany and $792 million in France.

As smartphone and tablet penetration rises, consumers

in France and Germany are growing more accustomed to

seeing ads on these devices. Familiarity generally breeds

acceptance, and mobile ads prompt many recipients to

research or purchase.

For their part, advertisers increasingly recognize the

need to reach and engage consumers via mobile

channels, i only to prevent their competitors rom doing

so more quickly or eectively. So ar, though, planning

and execution o robust mobile strategiessuch as

mobile-optimized websites and high-spec campaigns

that really pack a punchhave been largely restricted to

megabrands that can aord to risk the investment and

buy the talent that helps ensure success.

KEY QUESTIONS How quickly are mobile audiences expanding in

France and Germany?

How much will advertisers spend on mobile

platorms in France and Germany this year?

What are the distinctive eatures o the mobile ad

markets in France and Germany?

How do mobile phone users in France and Germany

eel about ads delivered to their mobile phones

and tablets?

millions

Mobile Internet Ad Spending in France and Germany,2013 & 2017

2013

$349

$198

2017

$1,800

$792

Germany France

Note: includes display (banners, video and rich media) and search; excludesSMS, MMS and P2P messaging-based advertising; includes ad spending ontabletsSource: eMarketer, April 2013

156659 www.eMarketer.com


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OVERVIEW: MOBILE ADVERTISING

IN WESTERN EUROPE

Usage o mobile devices such as smartphones and

tablets is skyrocketing in Western Europe, but ad

spending on mobile platorms remains

disproportionate to the size o the audience.

eMarketer calculates that mobiles share o 2012 digital adspending was very smallless than 5% in both France

and Germany, compared with 6% on average across

Western Europe. The consultancy Capgemini estimated

the proportion to be even lower: just 1.8% o all digital ad

spending in France last year. While most advertisers are

now aware o the need to address mobile consumers,

actual spending is lower than one might expect, given the

level o mobile engagement.

In terms o ad spending on the mobile web, Germany

is emergingvery graduallyrom the shadow

o the UK. The UK remains ar larger than any otherWestern European market and is expected to account

or 52.5% o mobile internet ad spending in the region

in 2013. Nonetheless, rms in Germany will invest an

estimated $349 million this year in mobile ads, and those

in France will spend nearly $200 million. Fueled by a

bigger population and better economic health than other

nations in the region, Germany will claim an increasing

share o spending between now and 2017, while Frances

and the UKs will decline gradually through 2015 and 2017,

respectively.

millions

Mobile Internet Ad Spending in Western Europe,by Country, 2011-2017

UK*

Germany

France

Italy

Netherlands

Sweden

Norway

Denmark

Spain

Finland

Other

Western Europe

2011

$323

$112

$87

$63

$45

$21

$23

$26

$21

$10

$50

$780

2012

$806

$208

$130

$104

$78

$57

$50

$45

$36

$20

$90

$1,622

2013

$1,532

$349

$198

$168

$129

$96

$84

$70

$62

$33

$199

$2,920

2014

$2,451

$566

$295

$252

$187

$144

$126

$104

$102

$50

$366

$4,643

2015

$3,554

$879

$417

$365

$268

$195

$183

$146

$162

$71

$632

$6,872

2016

$4,621

$1,286

$578

$470

$372

$244

$238

$190

$252

$88

$939

$9,277

2017

$5,684

$1,800

$792

$588

$502

$288

$281

$237

$378

$102

$1,318

$11,968

Note: includes display (banners, video and rich media) and search; excludesSMS, MMS and P2P messaging-based advertising; includes ad spending ontablets; numbers may not add up to total due to rounding; *eMarketerbenchmarks its UK mobile ad spending projections against the IAB UK/PwCdata for which the last full year measured was 2011Source: eMarketer, April 2013


Multinational rms and top brands are responsible

or the bulk o mobile ad spendingand innovation

in both France and Germany. For example, most

campaigns reaching the nal stages o the Cannes

Mobile Lions Awards in 2012 came rom global players

with deep pockets, such as sportswear manuacturers

Nike and adidas; mobile service providers Nokia and

Orange; automakers including Audi, Ford Motor Co.,

BMW and Volkswagen; consumables giants such asProcter & Gamble, Krat Foods, McDonalds and The

Coca-Cola Co.; and media brands such as MTV Networks.

Economic actors probably contribute to this situation;

most European economies are struggling to emerge rom

a severe downturn, and many advertisers with limited

budgets have been slow to spend money on mobile

when it represents unknown territory in marketing terms

and challenges their existing skill sets.

Financial questions apart, staking a claim to mobile

competence is a priority or many major advertisers,

according to Paul Amsellem, CEO o Mobile Network

Group/Bemobee: These brands are investing a lot o

money to be sure they will be big in mobile. Weve done

campaigns or Nissan, Renault and McDonalds. Like

several luxury brands, including Chanel and Dior, all these

brands are making a move. They are now big players in

mobile in France.

Web users in France and Germany may be less

likely to access social sites via mobile devices than

users throughout the rest o Europe. As a result,

social networks dont yet attract as large a proportion

o mobile ad expenditure as they do in the UK. But

some research suggests that relatively slow adoption o

social networking in the two countries is now picking up

speed. I that is true, advertisers in France and Germany

will soon be ollowing their UK and US counterparts onto

Facebook and other social sites, aiming to capitalize on

the social-mobile link.


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The arrival o rich media is ueling a urther surge

in mobile ad spending. Historically, much mobile

advertising was text-based or composed o static,

rather unimaginative graphic elements. With millions o

consumers now using smartphones and tablets with

high-resolution screens and robust data packages,

advertisers have a chance to engage them with more

appealing visuals, including video. Top brands are leading

the way, but all marketers targeting mobile audienceswill ace pressure to move in the same directionor risk

losing brand value and market share. As Jens Oberbeck,

general manager or Germany, Austria and Switzerland

at mobile advertising rm InMobi, commented in an

interview with GIGA: I believe that one o the driving

actors behind mobile ads will be rich medialarge

animations and videos, seen not just as pre-rolls beore

other videos, but as ads in their own right.

Wider use o HTML5 and responsive design will

also boost mobile advertising in Europes largest

markets. At the moment, the variety o available mobilehandsets and their technical specications is an obstacle

or many brands. For example, advertisers oten choose

to target either Android or Apple devices because

devising ads or both operating systems (OSs) can be

costly and time-consuming. HTML5a markup language

or internet content designed to support advanced

multimedia and ensure better interoperabilitywill help

overcome some o these hurdles. The same is true o

responsive design, a programming approach that aims

to deliver optimal text and graphics to many dierent

devices and screens, removing the need to program

separately or each device type. These advances will

enable advertisers in the region to reach more mobile

consumers than ever beore, with ar greater eciency.

THE GROWING MOBILE AUDIENCEeMarketer estimates that 340.3 million people in

Western Europe will use a mobile phone in 2013,

including 66.8 million in Germany and 51.4 million in

France. In 2015, the number o mobile phone users in

the region is expected to pass 351 million. There willalso be 161.1 million people in Western Europe who use

smartphones this year.

Mobile devices account or an ever-greater share

o mobile web trac in key European markets. In a

November 2012 study rom InMobi, 40% o mobile web

users in France said their internet usage was evenly split

between a mobile device and desktop or laptop. But more

than one-quarter (26%) said they went online mostly via

mobile, and 14% said their mobile phone was their only

web access device.

The pattern was similar in Germany: 36% o mobile web

users said their internet access was divided between

mobile and a desktop or laptop, 25% said they used a

mobile device more oten, and 17% went online only

via mobile.

In both France and Germany, 10% o total page views in

February 2013 came rom internet trac via smartphones

and tablets combined, according to Adobes Digital

Index report. Tablets had the edge in both markets,

accounting or 6.1% o all page views in France and 5.7%

in Germany.

In most European countries, young adults ages 18 to

29 were most likely to be mobile web users in 2012,

according to Pew Research Center Global Attitudes

Project. In France, 65% o mobile phone owners in

that age group used the device to access the internet,

compared with 40% o those ages 30 to 49 and 14%

o respondents 50 and older. In Germany, 56% o 18- to

29-year-olds said they went online via mobile, compared

with 34% in the 30-to-49 age group and 15% o adults in

the older age bracket.

By some accounts, phone owners in France and Germany

are relatively uninterested in social networking via mobile

According to comScore MobiLens, around one-quarter

o mobile phone owners in the two countries accessed

social sites with their phones in July 2012. The UKs Oce

o Communications ound similarly low percentages o

mobile social network users in France and Germany in

October 2012, at 27% and 26% o mobile phone owners,

respectively, compared with 43% in Spain and 40% in

the UK.


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% of mobile phone owners

Mobile Social Network Users in Select Countries,Oct 2012

Spain 43%

UK 40%

US 40%

Australia 40%

China 37%

Japan 35%

Italy 32%

France 27%

Germany 26%

Note: Australia n=759; China n=899; France n=733; Germany n=790; Italyn=869; Japan n=531; Spain n=883; UK n=837; US n=684; ages 18-64Source: Office of Communications (Ofcom) - UK, "InternationalCommunications Market Report 2012," Dec 13, 2012


Evidence rom Mdiamtrie//NetRatings contradicts

this data. A study by the rm suggested that in France,at least, Facebooks mobile site was second only to

Google in unique visitor numbers in December 2012.

Similarly, eMarketers own calculations indicate that in

Germany, 38% o web usersmore than 27% o the

countrys populationwill visit Facebook at least once per

month in 2013. Inevitably, greater smartphone and tablet

penetration will lead many o those visitors to access the

site via mobile as well. It appears that mobile social media

usein parallel with social networking in generalis

simply taking longer to develop in France and Germany

than in the UK, Italy and Spain.

MOBILE ADVERTISINGeMarketer predicts that mobile internet ad spending

in France will reach $198 million this year6.8% o all

mobile spending in Western Europe. Germany will claim a

larger slice, estimated at 12% o the total, or $349 million.

As a proportion o 2012 digital ad spending, eMarketer

estimates that mobile was very small in France and

Germany, at 4.8% and 4.1%, respectively. But both

countries can expect steep rises in mobile ad spendingbetween now and 2017, with compound annual growth

rates (CAGRs) o 43.6% and 54%, respectively. Overall,

eMarketer estimates that mobile ad spending in the

region will benet rom a CAGR o 49.1% between 2012

and 2017.

Mobile, Digital and Total Media Ad Spending CAGRand Share in Western Europe, by Country, 2012-2017

Digital% of total

Mobile% of digital

CAGR (2012-2017)

UK

Denmark

Norway

Netherlands

Sweden

Germany

France

Finland

Spain

Italy

Other

WesternEurope

2012

40.4%

31.4%

29.4%

28.1%

24.4%

19.7%

17.9%

17.6%

17.5%

13.8%

18.6%

23.6%

2017

51.1%

41.8%

37.3%

37.3%

29.9%

26.6%

24.6%

22.1%

25.2%

21.9%

23.7%

31.5%

2012

9.3%

6.5%

6.1%

5.4%

6.2%

4.1%

4.8%

6.4%

3.2%

6.6%

3.3%

6.2%

2017

43.9%

24.2%

24.6%

25.0%

23.6%

24.8%

20.3%

24.2%

20.7%

21.2%

32.9%

31.1%

Mobile

47.8%

39.5%

41.5%

45.0%

38.4%

54.0%

43.6%

38.9%

59.8%

41.3%

71.2%

49.1%

Digital

8.4%

7.4%

7.0%

6.7%

5.8%

7.6%

7.7%

6.4%

9.8%

12.0%

7.9%

8.1%

Totalmedia

3.4%

1.4%

2.0%

0.8%

1.6%

1.3%

1.1%

1.7%

2.1%

2.1%

2.8%

2.0%

Source: eMarketer, April 2013


As these gures suggest, France and Germany are not

among the European nations spending the most on

mobile ads per internet user. In act, they rank rather

low by this measure. eMarketer estimates advertisers in

France spent an average $8.01 per web user on mobile

ads in 2012, while their counterparts in Germany spent

$12.25both a ar cry rom the average o $36.35 spent

in the UK. Denmark, Norway and Sweden also posted

averages between $21.25 and $35.71 per internet user.

Most Western European countries showed tremendous

growth in mobile ad impressions served in 2012. In

more mature markets such as the Nordic nations, the

number o mobile impressions that Velti, an ad serving

rm, delivered rose by several hundred percent between

January and November 2012. But changes elsewhere

were even more remarkable: 501% growth in France and

655% in Germany.

Mojiva, another ad serving company, noted phenomenal

growth between 2011 and 2012 in ads delivered

specically to tablets in the EU-5. In France, the number

rose more than elevenoldrom 45 million to 519 million

ads. In Germany, tablet ad requests jumped rom

54 million to 459 million during the year.


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millions

Tablet Ad Requests Served by Mojiva in the EU-5,2011 & 2012

2011 2012

UK 109 1,610

France 45 519

Germany 54 459

Italy 40 372

Spain 65 362

Source: Mojiva, Feb 25, 2013


However, clickthrough rates (CTRs) or mobile ads served

by Velti in France, Germany and most other Western

European countries remained relatively low in 2012, at

less than 2%.

Real-time bidding (RTB) or mobile ads is accelerating,

refecting a general shit toward RTB on all digital

platorms in more mature markets, including the UK.

This is a direct consequence o rising mobile usage,

according to Vincent Pelillo, COO o mobile agencymadvertise: Because mobile trac is growing

exponentially, there is a need to deragment the supply

o mobile inventory and make it available or marketers.

Programmatic buying o mobile ads and RTB are going to

boom in the next three years.

The Rubicon Project recently investigated the rise o

mobile RTB, canvassing the opinions o agency media

buyers across Europe.

The online advertising company ound signicant

increases overall in the percentage o total spendinggoing to mobile display. While 83% o respondents in

2012 said they spent less than 5% on mobile ads, just

17% said the same thing in 2013. More than hal (57%)

o those surveyed in 2013 said they were now spending

between 5% and 10% o their digital display budgets on

mobile advertising.

Striking, too, was the act that in 2012, just 4% o media

buyers in Europe had devoted between 10% and 20%

o their budgets to mobile, and none put the percentage

any higher. One year later, nearly one in 10 said that

mobile accounted or 20% to 40% o all spending ondigital display.

% of respondents

Mobile as a Percent of Total Digital Display AdSpending According to Agencies in Europe*,2012 & 2013


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Another aspect o technology thats vital to urther

development o mobile ads, including rich media and

video, is the provision o Wi-Fi and high-speed 4G

networks. Cities and semiurban areas in France and

Germany are quite well served by Wi-Fi, and 4G has

begun to appear in major cities. But there are rural parts

o both countries that will not have robust network

coverage or years to come. Fortunately or most

advertisers, relatively ew o their existing or potentialcustomers live in these more remote locations.

CONSUMER ATTITUDES TOWARDMOBILE ADSIn February 2013, Ipsos OTX released data rom a survey

o 18,500 web users in 24 countries indicating that only

28%, on average, had seen an ad o any kind on their

mobile phone. Perhaps surprisingly, the report stated

that 28% o respondents in France had seen a mobile ad,compared with 21% in the UK and 19% in Germany. In

Western Europe, Spain registered the highest response

rate, at 53%.

Consumers who are more accustomed to seeing mobile

ads may accept them more readily. According to InMobi,

mobile web users in many Asia-Pacic markets, who had

much greater exposure to mobile ads, were among those

most likely to say they were content to receive them. Yet

respondents in several emerging markets were also quite

tolerantperhaps because mobile ads were an intriguing

novelty. Worldwide, an average 59% o mobile web userspolled in late 2012 said they were either as comortable or

more comortable with mobile ads than with other types

o ads.

Interestingly, France and Germany registered ar

lower response rates in this studywith 34% and

42% o mobile web users, respectively, saying they

were comortable with mobile ads. Around one-third

o respondents in both countries said they were less

comortable with mobile ads than with other types o ads.

% of respondents

Comfort Level with Mobile Ads Compared to OtherAd Formats According to Mobile Internet Users inSelect Countries, Nov 2012

More/equallycomfortable

Lesscomfortable

Kenya 89% 5%

Nigeria 83% 4%

South Africa 70% 13%

India 66% 10%US 65% 16%

South Korea 62% 19%

Singapore 59% 24%

Australia 54% 22%

UK 52% 26%

New Zealand 52% 21%

China 49% 24%

Japan 44% 31%

Germany 42% 33%

France 34% 39%

Worldwide 59% 20%

Note: excludes text messagingSource: InMobi, "Global Mobile Media Consumption" conducted by

Decision Fuel and On Device Research, Feb 27, 2013153534 www.eMarketer.com

It may be a coincidence, but the same study also ound

that 16% o mobile web users in both France and

Germany said they either requently or very requently

tapped mobile ads without meaning to.

MOBILE VIDEO ADVERTISINGThe Consumer Mobile Streaming Survey rom Rovi

Corporation probed consumer reaction to mobile video

ads. In January 2013, more than two-thirds o bothtablet and mobile phone video streamers in France said

they had seen an ad while watching mobile video. This

percentage was marginally lower among video streamers

in Germany.

There were striking dierences, though, between the

types o ads the two populations viewed. In Germany,

more than 80% o tablet and mobile phone video

streamers had seen pre-roll ads. Around hal had seen

video banners, and 20% or ewer had seen an ad mid-roll.

The results were essentially reversed in France: Around

85% o mobile device owners had viewed video banners,

while no more than one in ve had seen a pre-roll ad.


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These results suggest that advertisers in Germany, like

those in the UK, have a strong preerence or pre-roll

placements but are also careul to ensure a presence

in banner inventory. Mid-roll ads in the country are not

as great a priority as they are in France. But consumer

viewing habits may also play a role here. I signicant

numbers o video streamers in France typically avoid

pre-roll ads, advertisers will be less likely to invest in

that ormat.

% of respondents

Types of Mobile Video Ads Seen by Mobile and TabletVideo Streamers in Select Countries, Jan 2013

Tablet

Banner ad

Pre-roll (video ad playingbefore the video youselected starts)

Mid-roll (video ad playingin the middle of the videocontent you are viewing)

Takeovers (static ad thatbriefly fills all or most ofyour screen)

Mobile phone

Banner ad

Pre-roll (video ad playingbefore the video youselected starts)

Mid-roll (video ad playingin the middle of the videocontent you are viewing)

Takeovers (static ad thatbriefly fills all or most ofyour screen)

France

84.7%

19.0%

31.5%

-

86.3%

20.3%

34.5%

-

Germany

53.0%

86.5%

20.0%

29.7%

50.3%

81.8%

13.8%

23.3%

Italy

43.4%

88.8%

9.1%

32.9%

40.5%

83.5%

9.1%

33.1%

Spain

31.1%

83.1%

12.2%

23.6%

37.4%

76.2%

15.4%

31.3%

UK

57.6%

77.7%

20.1%

23.1%

51.7%

72.7%

20.6%

20.6%

US

55.6%

81.7%

40.7%

33.2%

61.1%

75.6%

31.3%

30.1%

Source: Rovi Corporation, "Consumer Mobile Streaming Survey," Feb 25,2013


Overall, Rovis survey seemed to conrm better results

with ull-screen video ads viewed in connection with

primary content than with other ad ormats mobile video

streamers sawsuch as branded inotainment or ads

containing coupons or discount oers. Viewers in France

and Germany who had seen video advertising beore,

during or ater they streamed content had better recall o

the brands and products eatured or were more likely to

take action prompted by an ad.

% of respondents

Most Effective Type of Mobile Video Ad According toMobile Video Streamers in Select Countries, Jan 2013

Video ads (before, duringor after the video)

Location-based ads(ads for stores/servicesnear you)

Ads with discountcoupons or special offers

Banner ads(static display ads)

Branded video ads(infotainment ads, e.g.,extreme sports videosponsored by Red Bull)

Ads with QR codes (scanto get more information)

France

32.5%

13.2%

20.1%

9.4%

17.5%

7.3%

Germany

36.2%

17.4%

18.4%

11.6%

8.2%

8.2%

Italy

28.8%

10.6%

21.2%

15.4%

16.8%

7.2%

Spain

33.0%

9.0%

14.4%

14.1%

22.5%

6.9%

UK

40.8%

10.7%

12.9%

18.0%

13.2%

4.4%

US

42.6%

16.6%

14.3%

12.6%

9.1%

4.8%

Note: help to remember brand or product, or prompt action; numbers maynot add up to 100% due to roundingSource: Rovi Corporation, "Consumer Mobile Streaming Survey," Feb 25,2013


THE ROLE OF SEARCHFew research rms have issued estimates or orecasts o

spending on mobile search in France or Germany. Most

sources ocus on mobile display as the basis or their

calculations o the total mobile ad market and use varying

methods or arriving at a gure or search i they include

it. The methodologies or assessing search are oten

unclear. For that reason, eMarketer, which released new

gures or UK mobile search spending in April 2013, has

not produced comparable estimates or those countries.

What can be said is that search claims a substantialproportion o mobile spending in both markets, as is the

same in the UK and the US. There appear to be important

dierences, however. FirstPartner, a source that does

estimate spending on search placements, projected that

search placements will represent more than 53% o all

mobile ad spending in France this year. It expects the

share in Germany to be lower, at about 43%.

Its dicult to pin down the reasons or this variationi

it exists. It doesnt appear to refect patterns in digital

spending as a whole. That is, advertisers in France will

actually spend less on search in 2013 (42% o all digital ad

spending, eMarketer calculates) than their counterparts in

Germany (47.4%).


9/22


Patterns o device usage and preerence may be a actor.

Smartphone penetration is higher in FranceeMarketer

estimates 50% o mobile phone users in France will own

the device this year, compared with 42% in Germany

and the search process is more user-riendly on a

smartphone than on a eature phone. But by the same

token, smartphones oer better screens or display ads,

which should encourage investment in display.

The 2012 Google report Our Mobile Planet:

Understanding the Mobile Consumer, carried out by

Ipsos OTX and Ipsos MediaCT, stated that 48% o

smartphone users in France visited search engines

via mobile at least once a day, compared with 46% o

smartphone users in Germany. This small gap doesnt

seem sucient to warrant such a big dierence in

spending levels, however.

Its also possible that FirstPartners estimates, made

some months ago, are simply out o date. While

commenting on mobile search and display in France,Mobile Network Groups Amsellem said:

At the moment the most investment is in mobile display.

Then, probably, mobile search and mobile video. One

reason or this is that in the French market Apple is quite

big. But also the mobile web is not really popular. So

people preer investing in apps on iOS. Marketers

are doing display advertising on mobile apps and less

through mobile search.

It will change in the uture because the Android OS

is starting to take a bigger piece o the market now, so

marketers will probably develop more advertising or the

mobile web. Thats also because more people are used to

mobile browsing and searching, which was not the case

initially. They were going online with apps.

He added that there are still challenges: People are ready

to search, and when they search and go to a site thats

not optimized or mobile, they are really disappointed.

Less than 20% o sites in France are optimized or the

mobile web. When you see a site that you cannot read

on your mobile, youd rather take the app. But that

will change.

By contrast, Germanys mobile users are already big

Android ans. Around 67% o smartphones in the country

used Googles OS in December 2012, according to Kantar

Worldpanel. In France, the proportion was about 59%.

I Android is associated with higher levels o search

activityand potentially, spending on searchone would

expect advertisers in Germany to invest heavily in the

tactic this year.

In act, thats what madvertises Pelillo is seeing, though

he does anticipate rising investment in display in leading

regional markets. In Western Europe, mobile search is

between 50% and 60%. Text messaging is still between

10% and 15% o mobile advertising. The less mature the

market, the bigger that portion. And the rest is display

between 30% and 40%, or maybe 45%, depending on

the maturity o the market. The bigger markets or display

advertising are clearly Germany and the UK.

I spending on mobile search is proportionately much

higher in France than in Germany, another reason maybe that rms in France are more likely to be eeling an

economic squeezeand dealing with more budget

constraints. Money spent on search may well bring a

higher ROI than spending on the more complex process

o creating mobile display ads.


10/22


FRANCE

THE MOBILE AUDIENCEeMarketer estimates 51.4 million residents o France

will use a mobile phone in 2013, equivalent to 78% o

the countrys population. More than 23 million will be

smartphone owners, and an estimated 10.8 million will be

tablet users.

millions, % of population and % changeMobile Phone Users in France, 2011-2017

2011

49.0

75.0%

3.3%

2012

50.2

76.5%

2.5%

2013

51.4

78.0%

2.5%

2014

52.5

79.3%

2.1%

2015

53.6

80.5%

2.0%

2016

54.5

81.5%

1.7%

2017

55.0

82.0%

1.0%

Mobile phone users % of population % change

Note: individuals of any age who own at least one mobile phone and usethe phone(s) at least once per monthSource: eMarketer, May 2013


The rate o mobile usage among internet users in France

is higher than among the countrys general population.A survey by Iop and Psychologies ound that 45% o

resident web users ages 18 and older had a smartphone

in December 2012, while 18% owned a tablet. Sixty-ve

percent o 18- to 34-year-olds had a smartphone, and 21%

o those ages 25 to 49 owned a tablet.

% of respondents

Mobile Devices Owned by Internet Users in France,by Demographic, Dec 2012

BlackBerry Smartphone Tablet None

Gender

Female 6% 40% 14% 50%

Male 6% 51% 22% 38%

Age

18-24 8% 63% 13% 30%

25-34 6% 67% 22% 24%

35-49 8% 47% 20% 41%

50-64 5% 37% 16% 52%

65+ 1% 28% 16% 62%

Socioeconomic status

PCS+ 12% 56% 28% 29%

PCS- 4% 47% 15% 44%

Inactive 5% 35% 15% 54%

Total 6% 45% 18% 44%

Source: Ifop and Psychologies, "Les Franais et les crans numriques,"Jan 29, 2013


According to InMobi, in October 2012, mobile web users

in France spent an average o 106 minutes per day withtheir mobile phones and 34 minutes with their tablets

an average o 2 hours and 20 minutes each day when

they were, in principle, reachable by mobile advertisers.

Note, though, that simultaneous multitasking with both

devices would decrease that period o exposure.

minutes

Average Time Spent per Day with Select MediaAccording to Mobile Internet Users in France,Oct 2012

Internet 107

Mobile 106

TV 98

Radio 64

Tablet 34

Newspapers/magazines29

Note: n=626Source: InMobi, "Mobile Media Consumption In France: A 'New Wave' TakesShape" conducted by Decision Fuel, Dec 3, 2012


Moreover, the rapid expansion o mobile activity will

translate into much greater potential exposure in the nextew years. Cisco Systems predicted that the number o

smartphones in France will more than double between

2012 and 2017 rom 26 million to 57 million, while the

number o tablets connected to the web will leap rom

1 million to 12 million.


11/22


Mobile Data and Device Metrics in France,2012 & 2017

Mobile data traffic

Consumer mobile data traffic (TB/month)

Business mobile data traffic (TB/month)

Total mobile data traffic (TB/month)

Mobile users (millions)

Mobile data traffic per user (MB/month)

Mobile devices

Smartphones (millions)

Connected tablets (millions)

Total mobile connected devices (millions)

Mobile connected devices per capita

Mobile data traffic per device

Smartphone data traffic per device (MB/month)

Tablet data traffic per device (MB/month)

Laptop data traffic per device (MB/month)

4G mobile broadband

4G connections (% of total mobile connections)

4G data traffic (% of total mobile data traffic)

2012

10,781

3,004

13,785

54.4

244

26

1

78

1.2

209

424

1,528

0.1%

1.2%

2017

97,575

24,762

122,338

58.1

1,813

57

12

141

2.0

1,111

2,045

2,710

14.8%

37.8%

Note: 1 terabyte=1 million megabytes; includes only devices connected tothe mobile network; excludes devices connected via Wi-FiSource: Cisco Systems, "Cisco Visual Networking Index (VNI): Global MobileData Traffic Forecast Update, 2012-2017," Feb 5, 2013


As Cisco Systems data indicates, 4G is still little used in

France. The mobile operator SFR has oered 4G to limited

audiences in seven o Frances cities since the end o

March 2013. Orange provided it only to select recipients

in our cities and parts o Paris until early April 2013, when

the service rolled out to 10 more urban centers. Yet all

operators are racing to extend 4G to additional customers

this year and next. Bouygues Telecom has announced

nationwide coverage starting on October 1, 2013.

Cisco Systems projected that nearly 15% o all mobile

connections in France will come rom 4G within ve years

and that 4G data trac will be nearly 38% o mobile

data trac. Technical hurdles are not the only ones to

overcome, however. Mobile providers must also convince

consumers o 4Gs value. Results o an April 2013 poll

on industry website Le Journal du Net suggested that

that process may take a while. When visitors were

asked whether they were ready to pay an additional 10

($12.82) per month to get 4G, 91.2% said no. O course, it

should be noted that when mobile owners upgrade their

devices, it is oten near-impossible not to upgrade their

service packages as well. In many parts o France, mobile

operators will likely make it dicult or consumers who

upgrade to choose a package without 4G.

MOBILE ADVERTISINGMobile ad spending in France will continue to rise rapidly

through 2017, though annual growth rates will decline.

eMarketer estimates that total spending on mobile

adsincluding banners, rich media, video and search

placements, and excluding message-based ormatswill

leap by 53% this year.

millions and % changeMobile Internet Ad Spending in France, 2011-2017

2011

$87.1

43.6%

2012

$129.5

48.7%

2013

$198.1

53.0%

2014

$295.3

49.1%

2015

$417.3

41.3%

2016

$578.0

38.5%

2017

$791.8

Mobile internet ad spending % change

Note: includes display (banners, video and rich media) and search; excludesSMS, MMS and P2P messaging-based advertising; includes ad spending ontablets; converted at the exchange rate of US$1=0.78; CAGR(2012-2017)=43.6%Source: eMarketer, April 2013


37.0%

Players in the mobile marketing industry have noticed the

momentum building. According to Amsellem, Clients are

asking or mobile advertising or smartphones and tabletsbut the smartphone is the most important thing theyre

asking or at the moment. Theyre asking or traditional

HTML5 campaigns, rich media and things that are really

special, like campaigns where you can scratch the ads.

You can eel that the French market is evolving in the right

way. Marketers now want to allocate a big piece o their

digital investment to mobile, which was not the case a

year ago.


12/22


Admittedly, advertisers in France have been somewhat

slow to embrace mobile optionswith notable

exceptions. Certainly ad spending on mobile platorms

bears little relation to the number o consumers using

them. Mdiamtrie reported that 41.2% o consumers

in France were mobile internet users in September

2012. The same rm, in collaboration with NetRatings,

calculated that the top 20 mobile websites in France

attracted 21 million unique visitors in November 2012,while the top 20 internet sites drew 43 million. Yet mobile

ads accounted or just 1.8% o all digital ad spending in

France in 2012, according to Capgemini.

O course, that gure doesnt include investments in

mobile search or in-app ads. When those are actored

in, total mobile spending in 2012 would be closer to

150 to 200 million [$192.3 million to $256.4 million],

according to a statement cited in Le Journal du Net rom

Julien Billot, deputy director general o the PagesJaunes

Groupe, owner o the classieds site PagesJaunes,

Frances Yellow Pages.

Whats driving the interest in mobile advertising?

Amsellem sees several actors at work: Most o the

big ad agencies, like WPP and others, have now set up

dedicated mobile teams. So theyve got experts, which

was not the case beore. Another reason or the growth

is that multinational brands like Krat, Procter & Gamble,

Unilever and others are investing in mobile in developing

markets, so now French marketers think, Why not test

and develop a mobile strategy? The other thing is that

unlimited mobile usage plans and penetration rates or

the smartphone increased signicantly last year. All o

these actors encourage brands to go mobile now.

Another potential game changer may be the increasing

importance o social networks in the mobile experience.

Thirty-eight percent o mobile web users polled by InMobi

in late 2012 said they expected to access social media

more oten via mobile in the next 12 months. That kind o

behavioral change will persuade many more advertisers to

invest in ads on social sites.

% of respondents

Mobile Activities that Mobile Internet Users in FranceExpect to Conduct More*, Oct 2012

Social media

38%

Play games

30%

Search/download apps

27%Watch videos/listen to music

22%

Search for general information

19%

Search for local information and deals

18%

Send and receive email

18%

Shop

15%

Mobile banking and bill payments

13%

Note: n=626; *in the next 12 monthsSource: InMobi, "Mobile Media Consumption In France: A 'New Wave' TakesShape" conducted by Decision Fuel, Dec 3, 2012


Patrick Hoffstetter, director of Renaults digital

factory, on the role of mobile:

Mobile has become a medium in its own right, i

only because o its high level o penetration. Rising

usage means that the consumption o data and content

keeps on growing. Today the issue is knowing what

role mobile should play in a communications strategy.

With geolocalization, or example, we can create a realdrive-to-store dynamic, prompting users to visit shops

nearby. For that matter, in-store usage o tablets or

smartphones that are eectively up-to-date brochures is

also revolutionizing physical sales. The obstacles refect

the size o these opportunitiesin particular, the need

to target the right person at the right time. Thats where

Big Dataso oten talked aboutreally comes into its

own, allowing us to adapt the message to the behavior o

individual mobile users.

So, dierent medium, dierent content. The attributes o

the mobile screen and its potential or interactivity mean

we cant be content to replicate the models proven towork on the web. When all those parameters are taken

on board, the results soon ollow. Specically, weve done

SMS programs highlighting promotional oers that have

generated very positive results.

In an April 9, 2013, interview with Le Journal du Net


13/22


CONSUMER ATTITUDES TOWARDMOBILE ADSInevitably, Frances mobile display ad market is largely

shaped by the mobile sites with the biggest audiences.

According to Mdiamtrie//NetRatings, 10 sites attracted

at least 3.6 million unique visitors in December 2012

among them Yahoo!, Wikipedia, Apple.com and YouTube.Facebook alone registered nearly 16 million visitors that

month, though Google topped that with an estimated

16.7 million.

millions

Top 10 Mobile Internet Sites in France, Ranked byUnique Visitors, Dec 2012

1. Google 16.7

2. Facebook 15.9

3. YouTube 12.0

4. Apple 8.7

5. Orange 7.1

6. Wikipedia 5.8

7. SFR 5.0

8. Yahoo! 4.6

9. Dailymotion 4.1

10. Bouygues Telecom3.6

Note: ages 11+Source: Mdiamtrie//Netratings as cited in press release, Feb 8, 2013


On the other hand, mobile web users in France weremuch more likely to notice ads in an app than on a mobile

site, according to InMobi. Nearly two-thirds (64%) o

users surveyed said they had seen an in-app ad. Two in

ve (41%) had observed an ad on a search engine, such

as Googles mobile site, while less than one-third o

respondents said they had noticed mobile ads elsewhere.

% of respondents

Channels on Which Mobile Internet Users in FranceNoticed Mobile Ads, Oct 2012

In an app 64%

On a search engine 41%

On a video website 31%

On a retailer website 25%

Other 18%

Note: n=414Source: InMobi, "Mobile Media Consumption In France: A 'New Wave' TakesShape" conducted by Decision Fuel, Dec 3, 2012


Wherever mobile ads are seen, Frances mobile audience

is becoming more accustomed to them, and presumably,

more willing to receive themor at least more resigned

to their presence. Mobile ads also appear to have a

denite infuence on mobile web users. According to an

October 2012 survey by InMobi, more than three-quarters

(77%) o mobile internet users said they had downloaded

an app ater seeing an ad, and 53% had been to an

advertisers website.

In addition, InMobi ound that mobile advertising

served as a signicant purchase driver. Some 40% o

respondents said they visited a store ater seeing a

mobile ad in order to investigate or purchase a product,

and 30% said they bought an item directly rom their

mobile phone. Such actions are one actor in a growing

trend or mobile buying. According to the Fdration

du E-commerce et de la Vente Distance (FEVAD),

mcommerce sales in France (excluding app downloads)

were 2.6 times higher in Q4 2012 than in Q4 2011,

reaching 2% o total digital sales in the country or the

rst time.

Mcommerce still has a long way to go in France, though,

as Amsellem pointed out: I think marketers using mobile

advertising or lead generation and other actions is the

next step or us. Advertisers are going to pay or results,

and they want to be sure we are generating leads that

they can convert directly via mobile. That means that

ecommerce will be the next step. A couple o companies

are doing this, but I cannot say that its taken o. You can

buy event tickets, you can buy plane tickets, but at the

moment you cannot book a restaurant or order ood on

mobile. You know, people are not doing it.

MOBILE AD EXAMPLESMany mobile campaigns, as Amsellem noted, actually

ocus on apps. They use display ads as a prompt,

encouraging viewers to download an app and enter

into a longer-term dialog with a brand. Apps also enable

advertisers to measure engagement and solicit eedback,

all within a relatively secure environment where thequality o the experience is assured.


14/22


Nestl: Crunch cereal, A Short Film with NormanCreated by the JWT agency in Paris, this Nestl Crunch

campaign starred the young podcaster Norman, well

known in France or the videos he has posted on

YouTubeall shot in his room at home.

Crunch had used crowdsourcing beore to help create ads

eaturing Norman. In a previous campaign on its Facebookpage, Crunch sent him on a world tour. Once a week

or our weeks, brand ans were encouraged to vote on

where Norman should go next. So Norman traveled or

an entire month, posting videos rom the our selected

destinations, as well as many others, and creating a

timeline o his journey.

This time around, Crunch invited ans to submit ideas

or what Norman should do in a short movie. Every idea

was passed to a jury (rumored to be Norman himsel)

and then voted on by web users. The best ideas were

kept, and the web user responsible or the top entrywas invited to take part in shooting the lm, destined or

launch on May 20, 2013.

Smartphone and tablet users could download an app to

take part in the vote or the best lm idea. The app also

provided access to exclusive behind-the-scenes content

rom the set during lming.

Bazarchic.com: Mobile loyalty through push alertsEcommerce site Bazarchic.com oers registered

members up to 70% o designer ashion brands inlimited-period sales. In November 2012, it decided to

revamp its mobile activity completely and develop a new

loyalty program. A new app allowed it to gather more

inormation about mobile users and alert them to their

avorite sales at their preerred times so that they never

missed a deal.

BMW i: Tailored invitations and priority sign-onDigital ad agency Come&Stay worked with mobile

agency Bemobee to develop this campaignan

extension o Apples Passbook. It allowed automaker

BMW to invite consumers interested in new technology

to its stand at exhibitions. I recipients opted in, the

invitation automatically appeared on their mobile screen

and remained there while they were near the stand,encouraging them to visit. A QR code identied the

recipients, their location coordinates and the source o

their opt-in, enabling the system to issue a personalized

welcome and an exclusive presentation o BMW models.

Orange: Les Applis DaysDuring two weeks in October 2012, network operator

Orange mounted a campaign to raise awareness and

usage o its mobile apps in France. Mobile device owners

could scan a QR code to obtain a range o entertainment,

map and inormation applications. They could also takepart in an augmented-reality hunt or apps, with the

chance o winning a smartphone, tablet or PC.


15/22


GERMANY

THE MOBILE AUDIENCEeMarketer predicts that more than 82% o the population

in Germany will use a mobile phone in 2013nearly 67

million people in total. An estimated 42% o those users

will have smartphonesbut that proportion is climbing

rapidly. In 2017, our out o ve o all mobile users will use

a smartphone.

Smartphone Users and Penetration in Germany,2011-2017

Smartphone users(millions)

% change

% of mobilephone users

% of population

2011

15.8

151.2%

24.5%

19.3%

2012

21.6

37.4%

33.0%

26.6%

2013

28.0

29.6%

42.0%

34.6%

2014

35.4

26.2%

52.0%

43.7%

2015

44.8

26.6%

64.8%

55.4%

2016

51.0

13.8%

73.0%

63.1%

2017

56.4

10.6%

80.0%

69.9%Note: individuals of any age who own at least one smartphone and use thesmartphone(s) at least once per monthSource: eMarketer, May 2013


At the end o 2012, the demographic prole o Germanys

smartphone population showed a substantially younger

skew than the mobile population overall, according to

comScores Future in Focus: Digitales Deutschland

2013 report. While 29% o mobile phone users were

55 and older, just 18% o smartphone users were in this

age bracket. Some 22% o smartphone users were 13- to

24-year-olds, while 21% were ages 25 to 34.

InMobi reported that between August and November

2012, mobile web users in Germany spent, on average,

107 minutes on a mobile phone and 18 minutes on

a tablet each day. The time spent on several mobile

activities had risen since the previous year. These included

social networking (up 22%), games and entertainment

(up 20%), email, general browsing and searching (all up

12%) and shopping (up 7%). As a result, the total time

spent with mobile devices exceeded that spent online

(95 minutes, on average).

Yet data rom Bundesverband Digitale Wirtschat

(BVDW), also rom late 2012, showed that smartphone

owners in Germany were less engaged in many mobile

activitiesincluding emails, app usage, mobile search

and mobile web usecompared with the European

average. This may be because mobile users in several

other countries, notably Italy and Spain, are more likely

to use a mobile device or internet access and are ar

keener on such activities. Both these actors push up theregional average.

As noted earlier, Germany has traditionally shown a

strong preerence or the Android OS. Two-thirds o

smartphones in the country used Android in December

2012, according to Kantar Worldpanel ComTech. Apples

iOS had gained a slight share since the end o 2011, but

less than one-quarter o smartphones used it.

Theres no doubting the rate at which mobile device use

is escalating in Germany. Cisco Systems projected that

mobile data per user will multiply more than nineoldbetween 2012 and 2017, as the number o smartphones in

Germany reaches an estimated 68 million and the numbe

o connected tablets rises to 13 million.

Mobile Data and Device Metrics in Germany,2012 & 2017

Mobile data traffic

Consumer mobile data traffic (TB/month)

Business mobile data traffic (TB/month)

Total mobile data traffic (TB/month)

Mobile users (millions)

Mobile data traffic per user (MB/month)

Mobile devices

Smartphones (millions)

Connected tablets (millions)

Total mobile connected devices (millions)

Mobile connected devices per capita

Mobile data traffic per device

Smartphone data traffic per device (MB/month)

Tablet data traffic per device (MB/month)

Laptop data traffic per device (MB/month)

4G mobile broadband

4G connections (% of total mobile connections)

4G data traffic (% of total mobile data traffic)

2012

14,525

3,609

18,134

71.7

245

25

2

120

1.4

274

611

1,449

0.7%

6.5%

2017

157,238

32,647

189,885

74.5

2,245

68

13

188

2.2

1,458

3,222

2,842

20.5%

52.1%Note: 1 terabyte=1 million megabytes; includes only devices connected tothe mobile network; excludes devices connected via Wi-FiSource: Cisco Systems, "Cisco Visual Networking Index (VNI): Global MobileData Traffic Forecast Update, 2012-2017," Feb 5, 2013



16/22


In Germany, as in France, Wi-Fi is widespread except in

remote areas. High-speed network inrastructure was

completed across the country in November 2012, and

the three largest operatorsO2, Vodaone and Deutsche

Telekomcurrently oer 4G. That said, in early 2013, the

service was restricted to major cities such as Munich,

Berlin, Frankurt, Cologne, Hanover, Kiel and Leipzig, and

the actual capacity o networks is variable. Achieving

comprehensive 4G coverage will take years, accordingto one spokesperson. Nonetheless, Cisco Systems

anticipated 4G data trac growing rom 6.5% o all

mobile data trac in 2012 to more than 52% by 2017.

MOBILE ADVERTISINGIn 2013, spending on mobile web ads in Germany will

rocket by more than 68%, eMarketer estimates, and

approach $350 million. Annual growth will remain above

40% until 2017, when total investment in mobile ads is

expected to reach $1.8 billion.

millions and % changeMobile Internet Ad Spending in Germany, 2011-2017

2011

$112.4

73.7%

2012

$207.7

84.7%

2013

$349.1

68.1%

2014

$565.6

62.0%

2015

$878.8

55.4%

2016

$1,285.8

46.3%

2017

$1,800.1

40.0%

Mobile internet ad spending % change

Note: includes display (banners, video and rich media) and search;excludes SMS, MMS and P2P messaging-based advertising; includes adspending on tablets; converted at the exchange rate of US$1=0.78;CAGR (2012-2017)=54.0%Source: eMarketer, April 2013


The MAC Mobile Report rom BVDW and Nielsen

orecast a similar rise or 201370%based on theremarkable increase in mobile device use in Germany.

This report suggested that ad spending on mobile

platorms would reach 105 million ($134.6 million),

compared with 62 million ($79.5 million) in 2012.

This estimate is based on monthly Nielsen reports o

gross mobile and in-app advertising sales o several

major marketers, including Axel Springer Media Impact,

InteractiveMedia, United Internet Media and YOC.

Nielsen alone released a slightly lower estimate o

55.8 million ($71.5 million) or comparable mobile ad

spending in 2012.

Just as mobile ad spending in France bore little relation to

the amount o time consumers spent with mobile devices

in 2012, so too in Germany. BVDW estimated that adult

smartphone users went online with their phones or 2.5

hours each week, on average. The average time spent

online on a PC or laptop was 9.7 hours per week. Yet

advertisers invested only 121 million ($155.1 million) in

ad spending on mobile platorms, compared with the

4.4 billion ($5.64 billion) devoted to internet ads. As a

result, advertisers spent around 10 times more to reach

web users with PCs than those with mobile devices.

Three industry sectorsautomotive, telecoms and

services (such as travel and hotels, property, and

recreation)accounted or almost hal o all mobile

display ad sales by the leading rms BVDW monitored in

2012. The automotive industry was the heaviest investor,

spending 11.7 million ($15 million), or 18.9% o the total

spent. Telecoms companies spent 10.8 million

($13.8 million) and services 7.6 million ($9.7 million).

Other signicant spenders included the media and

nance sectors. This is a common pattern in other

countries too, as large-scale, highly competitive

businesses spend heavily in all media channels in an

attempt to gain a competitive edge.


17/22


millions of

Top 10 Industries in Germany, Ranked by Mobile AdSpending*, 2012

1. Automotive

11.7

2. Telecom

10.8

3. Services

7.64. Media

5.4

5. Miscellaneous advertising

4.9

6. Finance

4.6

7. Computer and office

4.1

8. Retail and mail order

2.7

9. Energy

1.6

10. Personal care

1.5

Note: excludes self-advertising; *gross mobile and in-app ad sales of 9leading marketers in GermanySource: Bundesverband Digitale Wirtschaft (BVDW), "MAC Mobile - Report2013/01," April 3, 2013


More than 81% o ad impressions served by InMobi in

Germany in August, September and October 2012 were

delivered to smartphones, according to its Germany

Market Overview report. Tablets accounted or less

than 17% o ads served. Around three-quarters o mobile

ads appeared in apps, and nearly 60% were seen onAndroid devices.

% of total

Mobile Ad Impressions Served by InMobi in Germany,by Type, Oct 2012

By device

Smartphones 81.1%

Tablets and connected devices 16.7%

Feature phones 2.2%

Web vs. app

App 73.0%

Web 27.0%

By OS

Android 58.4%

iOS 33.2%

RIM OS 3.6%

Note: 3 months ending Oct 2012Source: InMobi, "Germany Market Overview," Dec 2012


Pelillo does see a preerence or in-app ads among rms

he works with: Taking the example o madvertise clients

I would say that the split is probably 60/40 now between

apps and mobile sites.

Advertisers preerence or in-app vs. web ads is also in

line with data rom comScore MobiLens, which indicated

that in late 2012, mobile phone users in Germany were

more likely to access news and weather inormation,email and social media through apps than through a

mobile web browser. Search was the only requent

activity carried out as oten in a browser as through

an app.

In Germany, as in France, Facebook is beginning to play

a larger part in the mobile ad landscape. According to

mobilbranche.de, 14% o the $152 million spent on

mobile ads in Germany in Q3 2012 went directly to

Facebooks newseeds. That was roughly equivalent to

the amount advertisers in Germany had spent on mobile

display ads during the previous ve years.

CONSUMER ATTITUDES TOWARDMOBILE ADSHistorically, consumers in Germany seem to have had a

lower tolerance or mobile ads than those in many other

markets. According to Millward Browns AdReaction

2012 study, this is still the case, though acceptance o

ads on mobile devices is growing.

In the past three years, the acceptance o mobile

ormats among German consumers has grown rapidly.

We expect that the positive attitude to mobile marketing

will continue to increase strongly, as soon as marketing

decision-makers emphasize the quality o mobile content

and users in Germany become more accustomed to

mobile ad ormats, said Dr. Bernd Bchner, head o

Millward Brown or Germany, in an interview with

Marketing magazine in Switzerland.

Millward Brown ound that 65% o those surveyed were

prepared to accept in-app ads, and 68% said the sameabout ads on mobile sites. On the other hand, only 10%

o respondents viewed mobile ads positively.


18/22


November 2012 data rom InMobi painted a more

encouraging picturethough o course, a mobile

advertising rm has an interest in portraying mobile

ads as eective. The company reported that 87% o

smartphone users polled in Germany had seen mobile

ads on their phone. O those, 64% had observed an ad in

a mobile app, and 41% had seen one on a search engine.

One in ve respondents reported seeing an ad on a video

site. O all smartphone users who had viewed an ad, 34%said they elt just as willing to receive one on a mobile

device as they were to see one on TV or the web.

InMobi also discovered that ater seeing a mobile ad,

61% o mobile web users in Germany had downloaded

an app, and 45% had visited the website o an advertiser.

One in ve said they had bought something via mobile

ater seeing an ad, though they may not have bought the

item or service advertised.

The study also documented some attitudinal changes in

those who had seen mobile ads. More than hal o thosepolled said mobile ads had introduced them to something

new or helped them nd something nearby. Thirty-seven

percent said a mobile ad had alerted them to a better

option, and 26% claimed that a mobile ad had caused

them to reconsider a product.

% of respondents

Effects of Mobile Ads According to Mobile InternetUsers in Germany, Nov 2012

Introduced you to something new

57%Helped you find something nearby

56%

Provided you with better options

37%

Caused you to reconsider a product

26%

Influenced your in-store purchase

23%

Influenced you to buy via your mobile

15%

Source: InMobi, "Global Mobile Media Consumption" conducted byDecision Fuel and On Device Research, Feb 27, 2013


Consumer reaction can depend on ad ormat, o course.

In Accentures 2012 Mobile Web Watch Survey, 35% o

consumers in Germany who had seen text ads said they

ound them annoying. Yet 76% had a positive reaction to

promotions and discount oers sent to their phones.

The Mediascope 2012 report compiled by BDVW in

collaboration with the Interactive Advertising Bureau

Europe (IAB Europe) also noted that 58% o Germanys

smartphone users were very or somewhat interested in

receiving location-based vouchers on their phones, and

22% were interested in QR codes.

According to research by comScore, young adults were

more alert to mobile ads and oers than other consumersin Germany. For example, 27.4% o smartphone users

ages 18 to 24 said they had clicked on an ad on a social

networking site in Q4 2012, compared with 15.2% o

all smartphone users over the age o 13. Similarly, the

ormer age group was more likely than the latter to have

seen an in-game ad, at 21.8% vs. 10.3%.

% of respondents in each group

Mobile Ad Activities Among Smartphone Users inGermany, Ages 18-24 vs. Total, Dec 2012

Social mediahave read reviews of companies/brands/events43.5%

22.8%

Have seen a web-/app-based ad

30.3%

19.7%

Social mediahave clicked on an ad

27.4%

15.2%

Social mediahave received coupons/deals

24.0%

13.8%

Have scanned a barcode/QR code

23.1%17.6%

Have seen in-game ads

21.8%

10.3%

Ages 18-24 Ages 13+

Note: three-month average for period ending Dec 2012Source: comScore Inc., "2013 Future in Focus - Digitales Deutschland,"March 14, 2013


There is clear evidence that combining mobile

advertising with ads on other platormssuch as

online or TVis a winning strategy. In one study romOnline-Vermarkterkreis (OVK) cited by BVDW, both

aided and unaided recall ollowing cross-media

campaigns were higher than recall ater mobile-only or

online-only campaigns.


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Mobile ads increasingly shape shopping behavior, too.

Nearly one-quarter (23%) o respondents to InMobis

survey said ads seen on a mobile device had the greatest

infuence on their purchase decisions and as noted earlier,

23% said mobile ads had infuenced their purchase in

a physical store. Moreover, buying directly via mobile is

catching on. Hal o respondents polled by InMobi had

already bought somethingmost oten digital goods

such as apps, music or videowith their mobile device,and 58% planned to make a mobile purchase in the next

12 months.

MOBILE AD EXAMPLESAs in France, many advertisers in Germany use apps

as the ocal point or mobile display campaigns.

Apps provide a completely designed environment or

consumers to learn more about brands, provide personal

data and oer eedback. Apps can also anchor a

campaign that involves other media, along with the real

worldas in the rst case below. The second example

involved a mobile website rather than an app, but the goal

was very similar: using technology in an innovative way to

immerse mobile users in an intriguing experience.

Audi: A1 Heartbeat RunDirected at a relatively young target audience, this 2013

mobile campaign rom Razorsh used the call to action

Time to start your rst Audi. The automaker hid a

total o ve keys in the Rhein-Ruhr region and around

metropolitan Stuttgart. Each week or ve weeks, a

Heartbeat Run was scheduled, with one key to be

ound. All nders were entered into a nal draw to win an

Audi A1.

Central to the campaign was an app presenting a virtual

heart and linked to a Facebook site. That site told users

when a race started and provided clues to the location o

that weeks key. The heart in the app began to beat when

a mobile user rst joined the Heartbeat Run, andthanks

to integrated GPSbeat aster the nearer the hunter got

to a hidden key. Contestants could download the app viaa Shazam icon in an Audi A1 TV ad posted on YouTube or

enter the competition by visiting a dedicated microsite.

Nokia: Lumia 800 Mystery AdCreated by YOC and Carat, the Mystery Ad rich

media execution won the Gold Award at the 2012

Cannes Mobile Lions. The ad targeted iOS and Android

devices in Germany. Mobile web users browsing on

such devices ound themselves suddenly looking at

the Windows Phone interace o the Nokia Lumia 800.

Those who clicked on the ad were taken to a landingpage that delivered a high-quality, user-riendly

experienceincluding a slideshow o Lumia 800

eatures, an embedded video and descriptions o the

phones eatures. The ad was praised or its concept

showing iOS and Android users a very dierent OSas

well as its state-o-the-art rich media and its precise

targeting, which reached the audiences o most

importance to Nokia. Initial results were extremely good,

with a CTR o 29.7%.


20/22


CONCLUSIONS

The mobile ad markets in France and Germany are

still at a airly early stage o evolution, but theyre

developing rapidly. In both countries, global brands

are at the oreront o spending and thinking about what

mobile advertising can do, and how best to integrate it

with eorts in other marketing channels. But companies

o all sizes will soon benet rom the knowledge gained

by these early pioneers. Advertisers will also learn rom

a growing body o consumer data, as mobile device

users become more sophisticated in their response to

mobile ads and research rms work harder to monitor

that behavior.

Standardizing ad ormats and technologies will

reassure advertisers that mobile is a viable marketing

platorm that can yield substantial ROI in France and

Germany. This is already happening to some extent,

particularly in the UK, but more needs to be done across

the region. One initiative, the AdEx Benchmark Mobile

Working Group, with the help o the IAB Europe, aims to

monitor the current mobile marketplace, identiy trends in

mobile advertising, and establish what is desirable and

practical or mobile ad measurement.

Some national industry bodies have their own programs,

too. Earlier this year, Germanys BVDW launched a Do

Mobile! scheme to address the need. Key industry

players, including the Deutsche Post and Google

Germany, are joining with the mobile division o BVDW

to demonstrate the value o mobile and oer concretepractical tips and recommendations about which types

o mobile solutions are suitable or specic companies.

Ventures o this kind should persuade more brands in

France and Germany to take the mobile plunge.

At madvertise, the writing is on the wall, according

to Pelillo and Wittig. We see two trends coming. The

rst is measurability, and the second is tracking. There

will be a need to track everything that happens in terms

o engagement post-download. Thats really what will

cause major dollars to fow in the mobile market. Clearly,

when the market is more standardized, more targetable,advertisers will be more likely to invest more o their

money and measure their ROI, said Pelillo.

The emerging relationship between mobile device

usage and commerce in France and Germany will

strengthen connections between mobile operators,

advertisers, retailers and consumers. Recipients o

mobile ads generally respond well to relevant inormation

about new products or useul promotional oers. And

several advertisers in Europe, including a number o

major retail groups, are already using mobile platorms to

drive customers to physical stores or encouraging mobilebuying with user-riendly apps, mobile-optimized websites

and mobile coupon schemes. But because the initiative

lies chiefy with individual rms, large-scale advances in

mcommerce are likely to happen piecemealat least in

the short term.


21/22


EMARKETER INTERVIEWS

Marketing in France: Advertisers Eye MoreMobile Advertising

Paul Amsellem

CEO

Mobile Network Group/Bemobee

Interview conducted on April 22, 2013

Marketing in Germany: A Brand- andPremium-Oriented Mobile Marketplace

Vincent Pelillo

COO

madvertise


Christof Wittig

CEO

madvertise


RELATED LINKS

Accenture

Adobe

Bemobee

BMW Deutschland

Bundesverband Digitale Wirtschat (BVDW)

Capgemini

Cisco Systems

comScore

Fdration du E-commerce et de la vente Distance(FEVAD)

FirstPartner

Iop

InMobi

Interactive Advertising Bureau Europe (IAB Europe)

Ipsos

Kantar Worldpanel

madvertise

Mdiamtrie

Millward Brown

Mojiva

Nielsen

Nokia

Oce o Communications (Ocom) - UK

Online-Vermarkterkreis (OVK)

Orange

Pew Research Center

Procter & Gamble

Rovi Corporation

Rubicon ProjectVelti

EDITORIAL AND

PRODUCTION CONTRIBUTORS

Cli Annicelli Senior Editor

Kaitlin Carlin Copy Editor

Joanne DiCamillo Senior Production Artist

Stephanie Gehrsitz Senior Production Artist

Dana Hill Director o Production

Nicole Perrin Associate Editorial Director

Heather Price Copy Editor

Allie Smith Director o Charts
http://totalaccess.emarketer.com/Interview.aspx?R=6001067http://totalaccess.emarketer.com/Interview.aspx?R=6001067http://totalaccess.emarketer.com/Interview.aspx?R=6001068http://totalaccess.emarketer.com/Interview.aspx?R=6001068http://www.accenture.com/http://www.adobe.com/http://www.bemobee.com/http://www.bmw.de/http://www.bvdw.org/http://www.capgemini.com/http://www.cisco.com/http://www.comscore.com/http://www.fevad.com/http://www.fevad.com/http://www.firstpartner.net/http://www.ifop.com/http://www.inmobi.com/http://www.iabeurope.eu/http://www.ipsos.fr/http://www.kantarworldpanel.com/http://www.madvertise.com/http://www.mediametrie.com/http://www.millwardbrown.com/http://www.mojiva.com/http://www.nielsen.com/http://www.nokia.com/http://www.ofcom.org.uk/http://www.ovk.de/http://www.orange.com/http://www.pewresearch.org/http://www.pg.com/http://www.rovicorp.com/http://www.rubiconproject.com/http://www.velti.com/http://www.velti.com/http://www.rubiconproject.com/http://www.rovicorp.com/http://www.pg.com/http://www.pewresearch.org/http://www.orange.com/http://www.ovk.de/http://www.ofcom.org.uk/http://www.nokia.com/http://www.nielsen.com/http://www.mojiva.com/http://www.millwardbrown.com/http://www.mediametrie.com/http://www.madvertise.com/http://www.kantarworldpanel.com/http://www.ipsos.fr/http://www.iabeurope.eu/http://www.inmobi.com/http://www.ifop.com/http://www.firstpartner.net/http://www.fevad.com/http://www.fevad.com/http://www.comscore.com/http://www.cisco.com/http://www.capgemini.com/http://www.bvdw.org/http://www.bmw.de/http://www.bemobee.com/http://www.adobe.com/http://www.accenture.com/http://totalaccess.emarketer.com/Interview.aspx?R=6001068http://totalaccess.emarketer.com/Interview.aspx?R=6001068http://totalaccess.emarketer.com/Interview.aspx?R=6001067http://totalaccess.emarketer.com/Interview.aspx?R=6001067


22/22

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