- The digital media landscape has changed dramatically in recent years. Digital advertising and content revenues are growing rapidly while print newspapers have seen ad revenue collapse as readers have moved online. - Google now generates more US ad revenue alone than the entire US newspaper and magazine industries combined, demonstrating the disruption of traditional media business models by online players. - As consumption of news and other media moved online, digital platforms have seen large audience and revenue growth while print newspapers and magazines have faced declining audiences and revenues.

1. GoldenMarket vous conseille pour
adapter votre stratégie digitale à
votre stratégie d’entreprise
Voici une présentation intéressante proposée par :
Business Insider
Notre savoir faire
au service de votre projet
Une communication
The futur of Digital 01 70 320 200
www.goldenmarket.fr 01 70 320 200

2. The Future Of Digital
Henry Blodget
CEO & EIC, Business Insider

3. The medium is now ~20
years old.

4. So, how are we doing?

5. 2+ billion people online
Global)Internet)Popula4on)
2,500"
2,000"
1,500"
1,000"
500"
0"
1990" 1991" 1992" 1993" 1994" 1995" 1996" 1997" 1998" 1999" 2000" 2001" 2002" 2003" 2004" 2005" 2006" 2007" 2008" 2009" 2010" 2011"
Source:(Interna-onal(Communica-on(Union,(Google(

6. 2/3 of the world left to go
Global&Internet&Popula*on&
7,000"
6,000"
5,000"
4,000"
Global&Popula*on&
3,000"
2,000"
1,000"
Internet&Popula*on&
0"
1990" 1991" 1992" 1993" 1994" 1995" 1996" 1997" 1998" 1999" 2000" 2001" 2002" 2003" 2004" 2005" 2006" 2007" 2008" 2009" 2010" 2011"
Source:(Interna-onal(Communica-on(Union,(Google(

7. However…

8. Most of the money is already online
Distribu(on+Of+Global+Income,+2000++
Bo#om%70%
percent%
18%%
Top%30%percent%
82%%
Source:(UN(Human(Development(Report,(Trends(In(Global(Income(Distribu=on(

9. So the market‟s more
mature than you think.

10. Meanwhile, something
profound happened last
year…

11. PC growth stalled
Global#PC#Shipments#By#Manufacturer#
100,000"
iPad"released"
90,000"
80,000"
70,000"
Other#
60,000"
50,000"
Apple#
40,000" Acer#
30,000" Dell#
20,000" Lenovo#
10,000"
HP#
0"
1Q08" 2Q08" 3Q08" 4Q08" 1Q09" 2Q09" 3Q09" 4Q09" 1Q10" 2Q10" 3Q10" 4Q10" 1Q11" 2Q11" 3Q11" 4Q11" 1Q12" 2Q12" 3Q12"
Source:(Gartner,(IDC(

12. Smartphone sales blew past PC sales
Global)Internet)Device)Sales)
)1,000,000,000))
)900,000,000))
)800,000,000))
Tablets)
)700,000,000))
)600,000,000))
Units) )500,000,000))
Smartphones)
)400,000,000))
)300,000,000))
)200,000,000))
)100,000,000)) Personal)Computers)
)3))))
2000) 2001) 2002) 2003) 2004) 2005) 2006) 2007) 2008) 2009) 2010) 2011)
Source:(Gartner,(IDC,(Strategy(Analy5cs,(company(filings,(BI(Intelligence(es5mates(

13. Tablets are now driving all the growth in PC mar
Global$Computer$Shipments$
140,000"
120,000"
100,000" Tablets$
80,000"
60,000"
40,000" PCs$
20,000"
0"
1Q08"2Q08"3Q08"4Q08"1Q09"2Q09"3Q09"4Q09"1Q10"2Q10"3Q10"4Q10"1Q11"2Q11"3Q11"4Q11"1Q12"2Q12"3Q12"
Source:(Gartner,(IDC,(Strategy(Analy5cs(company(releases(

14. So the future is mobile
G>20&Internet&Access&
3,000&
2,500&
2,000&
Consumer&
Mobile&
Broadband&
1,500&
Connec:ons&
(milions)&
1,000&
Mobile&
500&
Fixed&
Fixed&
Fixed&
0&
2005& 2010& 2015&
Source:(Boston(Consul/ng(Group,(Mary(Meeker,(Kleiner(Perkins,(Morgan(Stanley(Research,(Berg(Insight(

15. Where are we in the
mobile revolution?

16. Globally, we‟re still early…
Global&Smartphone&vs.&Mobile&Phone&Users,&2012E&
7,000# 6B#
Mobile#
Phone#Users#
6,000#
5,000#
4,000#
3,000#
1B#
2,000#
Smartphone#
Users #
1,000#
0#
Smartphone# Mobile#Phone#
Source:#Strategy#AnalyCcs,#InternaConal#TelecommunicaCons#Union#
Note:#Some#users#own#more#than#one#device#

17. But growth slows after 50% penetration

18. U.S. and other markets are past halfway po
U.S.'Smartphone'Penetra6on'
80%#
70%#
Feature'Phones'
60%#
55%'
50%'
50%#
45%'
40%#
Smartphones''
30%#
20%#
10%#
0%#
Oct/10# Nov/10#Dec/10# Jan/11# Feb/11#Mar/11#Apr/11#May/11#Jun/11# Jul/11# Aug/11# Sep/11# Oct/11# Nov/11#Dec/11# Jan/12# Feb/12#Mar/12#Apr/12#May/12#Jun/12#
Source:(Nielsen(

19. US smartphone growth starting to slow
U.S.%Smartphone%Market:%Year9Over9Year%Net%Adds%
40"
35"
30"
25"
Users%
Added% 20"
(millions)%
15"
10"
5"
0"
Q1" Q2" Q3" Q4" Q1" Q2" Q3" Q4" Q1" Q2" Q3" Q4" Q1" Q2" Q3" Q4" Q1" Q2" Q3"
2008"2008"2008"2008"2009"2009"2009"2009"2010"2010"2010"2010"2011"2011" 2011"2011"2012"2012"2013"
Source:(comScore,(Nielsen(

20. Most future US smartphone buyers will be
older and poorer
Smartphone#Penetra=on#By#Age#And#Income#(U.S.)#
90%#
80%$
80%# 77%$
75%$
74%$
69%$70%$
70%#
65%$ 65%$65%$
63%$
60%$
60%# 58%$
56%$
53%$ 52%$
51%$
50%$
50%# 48%$
43%$ 44%$ 42%$
41%$
38%$
40%#
31%$ 32%$
30%$
30%# 27%$
23%$ 24%$
21%$
20%# 18%$ 17%$
16%$ 16%$15%$16%$
10%#
0%#
Ages#18#1#24# Ages#25#1#34# Ages#35#1#44# Ages#45#1#54# Ages#55#1#64# Ages#65+#
<15k# 15k#1#35k# 35k#1#50k# 50k#1#75k# 75k#1#100k# 100k+#
Source: Nielsen

21. So the focus is on markets like China, wh
now accounts for ~25% of smartphone sale
Global%Smartphone%Shipments%
!180,000!!
!160,000!!
!140,000!!
!120,000!!
!100,000!!
!80,000!!
Rest%Of%The%World%
!60,000!!
!40,000!!
!20,000!!
China%
!"!!!!
1Q11! 2Q11! 3Q11! 4Q11! 1Q12! 2Q12!
Source:(Gartner,(IDC,(Strategy(Analy5cs,(Canalys,(BII(es5mates(

22. China is already twice the size of US mark
Chinese'Internet'Users'
600"
Total'
500"
Mobile'
400"
Broadband'
300"
200"
100"
0"
June"06" Dec"06" June"07" Dec"07" June"08" Dec"08" June"09" Dec"09" June"10" Dec"10" June"11" Dec"11" June"12"
Source:(China(Internet(Network(Informa5on(Center(

23. MEDIA

24. Remember when they said no
one would ever pay for conte

25. Digital content revenues are exploding
Digital'Content'Revenue,'2005<2011'
$14,000,000#
Glenn'Beck'TV'
$12,000,000#
TheStreet.com'
WSJ'Digital'
NY'Times'Digital'
$10,000,000#
LinkedIn'
Hulu'
SpoDfy'
Dropbox'
$8,000,000#
Total'' Zynga'
Digital'
Content' Kindle
Revenue' $6,000,000#
(thousands)'
Ne)lix'
$4,000,000#
$2,000,000#
iTunes'
$0#
2005# 2006# 2007# 2008# 2009# 2010# 2011#
Source:(BI(Intelligence,(company(filings(

26. Digital Advertising still growing rapidly
U.S.)Digital)Adver6sing)
$35#
$30#
$25#
$20#
$15#
$10#
$5#
$0#
1995# 1996# 1997# 1998# 1999# 2000# 2001# 2002# 2003# 2004# 2005# 2006# 2007# 2008# 2009# 2010# 2011#
Source:(IAB(

27. At largest U.S. tech and media companies
nearly 40% of ad revenue is digital
Online$vs.$Offline$Adver*sing$(U.S.),$2006<2011$
$80,000#
$70,000#
$60,000# 38%#
23%# share#
share#
$50,000# Online
U.S.$
$40,000#
Adver*sing$
Revenue$
(millions)$ $30,000#
62%#
77%#
share#
share#
$20,000# Offline
$10,000#
$0#
2006# 2007# 2008# 2009# 2010# 2011#
Source:#Company#filings#and#BI#Intelligence#esFmates.#Companies#include:#Google,#Yahoo,#AOL,#MicrosoN,#Facebook,#Time#Warner,#Disney,#Viacom,#CBS,#News##
Corp,#New#York#Times,#GanneX,#McClatchy,#Time#Inc,#Entercom,#CBS#Radio,#Clear#Channel,#Citadel,#Cum#

28. TV still biggest. Online close behind.
Print getting smashed.
U.S.$Adver*sing,$2006:2011$
$80,000$
4%$
$70,000$
7%$
Outdoor$
$60,000$ 6%$ Radio$ 9%$
11%$
Print$ 14%$
$50,000$
20%$
U.S.$
All$Other$Online$
Adver*sing$$40,000$ 23%$
Revenue$ 13%$
(millions)$ $30,000$
10%$ Google
$20,000$
42%$
41%$ Television$
$10,000$
$0$
2006$ 2007$ 2008$ 2009$ 2010$ 2011$
Source:$Represents$annual$U.S.$adverAsing$revenue$for$20$large$media$companies$based$on$company$filings$and$our$own$esAmates$

29. Digital has already “disrupted
one media sector…

30. As news consumption moved online…
News%Media%Audience%and%Revenue%Growth,%201092011%%%
25%$
23%$
20%$
17%$
15%$
10%$ 9%$
5%$
5%$
1%$ 1%$ 1%$ 1%$
0%$
&1%$
&5%$ &4%$ &4%$
&6%$
&7%$
&7%$
&10%$
Online$$ Network$TV$ Local$TV$ Audio$ Cable$TV$ Magazines$ Newspaper$
Audience$Growth$ Revenue$Growth$
Source:(Nielsen(Media(Research,(the(Audit(Bureau(of(Circula9on(and(Arbitron,(SNL(Kagan,(eMarketer,(Veronis(Suhler(Stevenson,(Radio(Adver9sing(Bureau,(Publishers(
Informa9on(Bureau,(Na9onal(News(Associa9on,(BIA/Kelsey(

31. Newspaper ad revenue collapsed

32. Google now generates as much U.S. ad revenue
newspapers and magazines (all of them)
Google$Generates$More$U.S.$Ad$Revenue$Than$Newspapers$
$50,000##
$45,000##
$40,000##
$35,000##
$30,000##
U.S.$Ad$
Revenue$ $25,000##
(millions)$
$20,000##
$15,000##
$10,000##
$5,000##
$0##
2004# 2005# 2006# 2007# 2008# 2009# 2010# 2011# 1H2012#
Google#(U.S.)# U.S.#Magazines## U.S.#Newspapers##
Source:(Google,(NAA,(PIB(

33. (Some) paywall subscriptions are growing, b
New+York+Times+Digital+Subscribers+
600"
500"
400"
300"
200"
100"
0"
2Q11" 3Q11" 4Q11" 1Q12" 2Q12" 3Q12"
Source:(company(releases(
Note:(does(not((include(print(subcribers(with(digital(access(

34. “Digital dimes” don‟t offset lost print dolla
Newspaper(Ad(Revenue((Print(vs.(Online)(
!$60,000!!
!$50,000!!
!$40,000!!
!$30,000!!
!$20,000!!
!$10,000!!
!$#!!!!
2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011!
Source:(Newspaper(Associa0on(Of(America( Print! Online!

35. Of course, print news is
old news…

36. Now the question is…

37. Is TV next?
Nielsen'Prime+me'Household'Ra+ngs'
6.2$
6.1$
6.0$
5.9$
5.8$
5.7$
5.6$
5.5$
5.4$
5.3$
2007-2008$ 2008-2009$ 2009-2010$ 2010-2011$ 2011-2012$
Big$4$U.S.$TV$Networks$Average$

38. For now, TV ad spending still growing
TV&Ad&Spend,&200772011&
$74$
$72$
$70$
$68$
Total&TV&
Ad&Spend&$66$
(billions)&
$64$
$62$
$60$
$58$
2007$ 2008$ 2009$ 2010$ 2011$
Source:(Nielsen(

39. But behavior is changing
U.S."Prime2me"TV"Viewing"
(%"of"18949"TV"set"users"during"899"PM"hour,"mul2ple"responses"permiBed)"
6%$ 6%$ 7%$
8%$
17%$ 16%$
26%$
82%$ 83%$
64%$
2004$ 2008$ 2012$
Live$TV$ Recorded$TV$ Video$game$ Streaming$video$
Source:(GfK(

40. Pay TV subscriptions are now trending dow
Pay&TV&Subscriber&Net&Addi3ons&
1000$
800$
600$
400$
TelCo&
200$
Satellite&
Subscriber&
Net&Addi3ons& 0$
(thousands)& Total&
!200$
!400$
Cable&
!600$
!800$
!1000$
1Q09$ 2Q09$ 3Q09$ 4Q09$ 1Q10$ 2Q10$ 3Q10$ 4Q10$ 1Q11$ 2Q11$ 3Q11$ 4Q11$ 1Q12$ 2Q12$ 3Q12$

41. „Over--‐the--‐top‟ video is real and growing fa
Digital'Video'Revenue,'2006?2011'
$5,000#
Hulu'
$4,000#
YouTube'
$3,000#
Total'
Digital'
Revenues'
(millions)'
$2,000#
$1,000#
Ne#lix'
$0#
2006# 2007# 2008# 2009# 2010# 2011#
Source:#Company#filings#and#BI#Intelligence#esDmates#

42. Live events are increasingly being viewed o
the Internet
Growth'Of'Total'Live'Video'Viewing'Time'Via'Connected'TV'
Devices'And'Gaming'Consoles'(Q3'2012)'
300%#
250%#
200%#
150%#
100%#
50%#
0%#
2(Jul# 9(Jul# 16(Jul# 23(Jul# 30(Jul# 6(Aug# 13(Aug# 20(Aug# 27(Aug# 3(Sep# 10(Sep# 17(Sep# 24(Sep#
Source:(Ooyala(

43. Digital video advertising is on the rise
Online)Video)Ad)Revenue)(U.S.))
$2,500#
$2,000#
$1,500#
$1,000#
$500#
$0#
2006# 2007# 2008# 2009# 2010# 2011#
Source:(Interac-ve(Adver-sing(Bureau,(eMarketer,(comScore,(BI(Intelligence(es-mates(

44. But as with print, digital = less money than TV
Ad#Loads,#TV#vs.#Digital#
(%#share#of#programming)#
1.5%&
100%&
7.9%&
90%&
24.8%&
80%&
70%&
60%&
50%& 98.5%&
92.1%&
40%&
75.2%&
30%&
20%&
10%&
0%&
TV& Online&video& Streaming&TV&online&
Content& Ads&
Source:(comScore,(June(2012(

45. What does history teach us?

46. As habits change…

47. The money follows.

48. By the way, “old media” isn‟
the only media being
disrupted...

49. Americans now spend more time on
social networks than portals
Average'Time'Spent:'Portals'vs.'Social'Networks'(U.S.)'
30'
Social'Networks'
25'
20'
Portals'
Average'Minutes'15'
Per'Usage'Day'
10'
5'
0'
Nov62010' Dec62010' Jan62011' Feb62011' Mar62011' Apr62011' May62011' Jun62011' Jul62011' Aug62011' Sep62011' Oct62011' Nov62011' Dec62011
Source:(comScore(

50. 1/7th of the world‟s population now use Faceboo
Facebook(Ac+ve(Users(
1,100(
1,000(
900(
800(
700(
Ac+ve( 600(
Users( Monthly(Ac+ve(Users(
(millions)(500(
400(
300(
200(
Daily(Ac+ve(Users(
100(
0(
1Q09( 2Q09( 3Q09( 4Q09( 1Q10( 2Q10( 3Q10( 4Q10( 1Q11( 2Q11( 3Q11( 4Q11( 1Q12( 2Q12( 3Q12(

51. Time spent on Yahoo, et al, continues to dec
Yahoo%Time%Spent%%%vs.%Total%Internet%(U.S.)%
16%#
14%#
12%#
10%#
8%#
6%#
4%#
2%#
0%#
1Q07#2Q07#3Q07#04Q7#1Q08#2Q08#3Q08#4Q08#1Q09#2Q09#3Q09#4Q09#1Q10#2Q10#3Q10#4Q10#1Q11#2Q11#3Q11#4Q11#1Q12#
Source:(comScore,(Ci-(Investment(Research(And(Analysis(

52. Now, in online ads, it‟s Google, Facebook, and “oth
Google

53. Facebook has blown past AOL,
Microsoft, and Yahoo
U.S&Digital&Adver:sing&
$9,000#
$8,000# 15%&
4%&
$7,000#
7%&
$6,000# 8%&
Other& 11%&
Digital& $5,000#
Adver:sing& AOL&
Revenue& Facebook&
(millions)& $4,000#
Yahoo&
6%&
13%&
$3,000# Microso0&
30%& 55%&
$2,000#
11%&
Google&
$1,000#
40%&
$0#
2Q06# 3Q06# 4Q06# 1Q07# 2Q07# 3Q07# 4Q07# 1Q08# 2Q08# 3Q08# 4Q08# 1Q09# 2Q09# 3Q09# 4Q09# 1Q10# 2Q10# 3Q10# 4Q10# 1Q11# 2Q11# 3Q11# 4Q11# 1Q12#
Source:(company(filings(BII(es5mates(

54. YouTube, Hulu, Glam, Twitter, Demand, et al.,
also taking portal share…
US(Digital(Adver=sing:(New(Growth(Companies(
$1,800#
Glam(Media(
$1,600#
Federated(Media(
Twi6er(
$1,400#
$1,200#
Demand(Media(
Digital( $1,000#
Adver=sing(
Hulu(
Revenue(
(millions)( $800#
WebMD(
$600#
$400#
YouTube(
$200# Facebook(
$0#
2Q06#3Q06#4Q06#1Q07#2Q07#3Q07#4Q07#1Q08#2Q08#3Q08#4Q08#1Q09#2Q09#3Q09#4Q09#1Q10#2Q10#3Q10#4Q10#1Q11#2Q11#3Q11#4Q11#1Q12#
Source:(company(filings(BII(es5mates(

55. “Display” ad growth is flattening
U.S.&Display&Adver9sing&
$3,000#
$2,500#
Microso3&
$2,000#
AOL&
Display&
Adver9sing&
$1,500#
Revenue& Yahoo&
(millions)&
$1,000# Other&
$500#
Google&
$0#
2Q06#3Q06#4Q06#1Q07#2Q07#3Q07#4Q07#1Q08#2Q08#3Q08#4Q08#1Q09#2Q09#3Q09#4Q09#1Q10#2Q10#3Q10#4Q10#1Q11#2Q11#3Q11#4Q11#1Q12#
Source:(company(filings,(BII(es6mates(

56. Real--‐time bidding is automating what‟s le
RTB$As$%$Of$Digital$Display$Ad$Spending$
30%#
25%#
20%#
15%#
10%#
5%#
0%#
2010# 2011# 2012# 2013# 2014# 2015# 2016#
Source:(eMarketer(

57. So, will Facebook ever be bigger
than Google?

58. Unlikely.

59. Google is like
advertising at a store.

60. Facebook is like
advertising at a party.

61. Social referrals to commerce sites are tiny
Drivers&of&ELCommerce&Traffic&
90.0%&
80.0%&
70.0%&
60.0%&
50.0%&
Percentage&
Of&Traffic&&
40.0%& 80.6%&
30.0%&
20.0%&
10.0%&
9.7%& 7.5%& 1.7%&
0.5%& 0.02%&
0.0%&
Google& Yahoo& Bing& AOL& Facebook& TwiBer&
Source:(RIchRelevance(

62. And speaking of advertising
at stores.. .

63. E--‐tailers are now building ad businesses
U.S.$Retailers:$Total$Display$Ad$Impressions$$
30,000"
25,000"
20,000"
15,000"
10,000"
5,000"
0"
Q3"2011" Q4"2011" Q1"2012" Q2"2012" Q3"2012"
""""Other" """"Target"Corpora8on" """"Best"Buy"Sites" """"WalBMart" """"Amazon"
Source:(comScore(

64. Amazon ad revenue is already $1+ billion a yea

65. And as eCommerce continues to take share
U.S.&Retail&Sales&
$5,000,000#
E.Commerce&
$4,500,000#
$4,000,000#
$3,500,000#
$3,000,000#
$2,500,000#
$2,000,000#
Offline&Retail&Sales&
$1,500,000#
$1,000,000#
$500,000#
$0#
1995# 1996# 1997# 1998# 1999# 2000# 2001# 2002# 2003# 2004# 2005# 2006# 2007# 2008# 2009# 2010# 2011#
Source:(Federal(Reserve(Economic(Data66St.(Louis(Fed,(BI(Intelligence(es=mates(

66. New brands are blending marketing and comm
Social'Commerce'Revenues'
$3,500'
Fab'
$3,000'
ShoeDazzle'
One'King's'Lane'
$2,500'
Ideeli'
Zulily'
$2,000'
Total'
Beyond'The'Rack
Revenue'
(millions)' HauteLook'
$1,500'
Rue'La'La'
LivingSocial'
$1,000'
$500'
Gilt'Groupe'
Groupon'
$0'
2008' 2009' 2010' 2011'
Source:(Company(Filings,(BII(Es8mates(

67. MOBILE

68. So, what do people
do on mobile?

69. Well, first, they do pretty much
everything they do online…

70. They play games and social--‐network…
Daily&Smartphone&App&Consump4on,&Minutes&Per&Category&
7#
7# 10#
10# 12#
11#
24#
15#
25# 24#
Q1#2011# Q1#2012#
Games# Social#Networking# News# Entertainment# Other#
Source:(Flurry(Analy/cs(

71. They listen to music...
75%#
70%#
55%#
Pandora#
50%#
Twi6er#
33%#
Facebook#
25%#
5%#
1%#
0%#
2008# 2009# 2010# 2011#
Source:#Mary#Meeker,#Kleiner#Perkins,#companies#

72. They consume content…
Top&Mobile&Categories&By&Growth&In&Audience,&Dec.&2010&vs.&Dec.&2011&(U.S.)&
35,000%
30,000%
25,000%
Total& 20,000%
74%%
Mobile&
Audience&
72%%
(thousands)&
15,000%
94%%
77%% 70%%
80%%
74%%
10,000%
69%%
134%%
5,000% 82%%
0%
Health% Online%Retail% Men's% Electronic% Gaming% Job%Lis:ngs% General% Classifieds% Auc:on%Sites% Family%
Informa:on% Magazine% Payment% Informa:on% Reference% Entertainment%
Content%
DecS10% DecS11%
Source:(comScore(MobieLens,(3(mon.(avg.(ending(Dec82011(vs.(Dec82010(

73. They look at pictures and video.
U.S.$Video$Engagement,$Monthly$Minutes$Per$Ac;ve$User$
472#
425#
378#
324#
276#
231#
152#
110#
93#
63#
Mar#2011# June#2011# Sept#2011# Dec#2011# Mar#2012#
Google#Internet#Sites# iOS#&#Android#Photo#&#Video#Apps#
Source:(Flurry(Analy/cs,(comScore(Video(Matrix(

74. They use their devices while they watch TV
Percentage)Of)Smartphone)Users)Who)Use)Their)Phones)
While)Watching)TV)
90%#
80%#
70%#
60%#
50%#
40%#
30%#
20%#
10%#
0%#
Monthly# Mul5ple#Times#A#Week# Daily##
Source:(Nielsen(Cross/Pla2orm(Report(Q2,(2012(

75. They shop…
Ecommerce#Website#Traffic#By#Device#
100%#
Tablet#
90%# Smartphone#
80%#
70%#
60%#
50%#
PC#
40%#
30%#
20%#
10%#
0%#
Q1#2011# Q2#2011# Q3#2011# Q4#2011# Q1#2012# Q2#2012# Q3#2012#
Source:(Monetate(

76. They use smartphones to make buying
decisions in stores.
U.S.$Smartphone$Owners$Ac3vity$In$Retail$Stores$
24.0%&
22.3%&
20.4%& 20.2%&
19.7%&
18.8%&
16.2%&
14.6%&
14.1%&
13.1%&
12.3%&
10.0%& 11.1%& 10.9%&
8.3%&
7.2%&
6.3%&
5.2%&
Took&Picture&Of& Texted/Called& Scanned&A& Sent&Picture&Of& Found&Store& Compared& Found&Coupons&Research&Product&Checked&Product&
Product& Friends/Family& Product&Barcode& Products&To& LocaJon& Product&Prices& For&Deals& Features& Availability&
About&Product& Family/Friends&
Males& Females&

77. They pay for stuff
PayPal#Mobile#Payments#Processed#
$5,000#
$4,000#
$3,000#
Total##
Payment#
Volume#
(millions)#
$2,000#
$1,000#
$0#
2008# 2009# 2010# 2011#

78. They buy content
Media&Content&Paid&For&On&A&Tablet,&Q4&2011&
70%#
60%#
50%#
40%#
30%#
20%#
10%#
0%#
Downloaded# Books# Movies# Magazines# TV#Shows# Streaming# Sports# News#
Music# Radio#
US# Italy# UK## Germany#
Source:(Nielsen(

79. And they do stuff they
DON‟T do online…

80. Play Angry Birds, et al
Angry&Birds&Downloads&vs.&Nintendo&DS&Sales&
700,000"
600,000"
500,000"
400,000"
Total&
Downloads&
Or&Sales&
(thousands)&
300,000"
200,000"
100,000"
0"
Mar"10" Jun"10" Sept"10" Dec"10" Mar"11" Jun"11" Sept"11" Dec"11"
Note:&Includes&Nintendo&3DS&Sales&
Source: New reports, company releases, BI Intelligence estimates

81. Take and share pictures
Instagram&Es5mated&Users&
100,000"
90,000"
80,000"
70,000"
60,000"
Total&&
Users& 50,000"
(thousands)&
40,000"
30,000"
20,000"
10,000"
0"
3/2011" 4/2011" 5/2011" 6/2011" 7/2011" 8/2011" 9/2011" 10/2011"11/2011"12/2011" 1/2012" 2/2012" 3/2012" 4/2012" 5/2012" 7/2012" 7/2012" 8/2012" 9/2012"
Source:(news(reports,(company(releases,(BII(Es6mates(

82. BOTTOM LINE:
Mobile devices =
More Internet usage +
New applications

83. In fact, mobile has made digital 24/7
Share Of Device Page Traffic Over A Day:
Source: comScore, Telefonica, Macquarie Capital (USA), December 2011

84. This leads to another big
question…

85. Mobile usage is up across the board
U.S.%Mobile%Content%Usage%
80%#
Sent%Text%Message%
70%#
60%#
Used%Downloaded%Apps%
50%#
Used%Browser%
Accessed%Social%Network%
40%#
%Or%Blog%
Played%games%
30%#
Listened%to%music%%
20%#
10%#
0%#
Feb#Apr#May#Jun# Jul#Aug#Sept#Oct# Nov#Dec#Jan#Feb#Mar#Apr#May#Jun# Jul#Aug#Sept#Oct#Nov#Dec#Jan# Feb#Mar#Apr#May#June#July#Aug#Sep#
10#10#10#10#10#10#10#10#
10#10#11#11#11#11#11#11# 11#11#11#11#11#11#12# 12#12#12#12#12#12#12#12#
Source:(comScore(

86. People are consuming a huge amount of
content through mobile…
Media&Content&Accessed&Through&Mobile&Device&
59%$
57%$
53%$53%$
41%$
29%$ 29%$
27%$ 26%$ 27%$
25%$
23%$ 22%$
20%$
9%$ 10%$ 9%$
5%$
Books$ Movies$ TV$Shows$ Magazines$ News$ Social$ Downloaded$ Sports$ Streaming$
Networking$ Music$ Radio$
Tablet$ Smartphone$
Source:(Nielsen(Q4(2011(Mobile(Connected(Device(Report(

87. As mobile increases, all other media decrea
Share&Of&Consumer&Time&Spent&With&Major&Media&
45%$
44%$
43%$
42%$
25%$ 26%$
26%$ 26%$
17%$
16%$
15%$
14%$
12%$
9%$ 9%$
8%$ 8%$
7%$ 7%$ 7%$
6%$ 6%$
5%$
4%$
TV$ Online$ Radio$ Mobile$ Print$ Other$
2009$ 2010$ 2011$ 2012$
Source:(eMarketer,(October(2012(

88. So mobile advertising
will be huge, right?

89. Hmmm…

90. The “bullish” mobile--‐ad story is the huge
gap between time--‐spent and ad spending.
2011$U.S.$Ad$Spending$vs.$Consumer$Time$Spent$By$Media$
43%$
42%$
26%$
25%$
22%$
15%$
11%$ 10%$
7%$
1%$
TV$ Print$ Web$ Radio$ Mobile$
Ad$Spend$Per$Media$ Time$Spent$Per$Media$
Source: Mary Meeker (KPCB), eMarketer, IAB

91. But maybe there‟s a good reason
for that gap…

92. The screen is really small.

93. Mobile monetization still behind the deskto
ARPU,&Desktop&vs.&Mobile&&
$58.95&
$25.00&
$17.61&
$6.62&
$3.87& $5.00&
Pandora& Zynga& Tencent&
Mobile& Desktop&
Source:(Pandora,(Zynga,(Tencent(

94. Mobile CPMs are much lower
Effec%ve'CPM,'Desktop'vs.'Mobile'
$3.50&
$0.75&
Desktop&Internet& Mobile&Internet&
Source:(comScore,(Vivaki,(Mobclix(Exchange(

95. Most “mobile” ads are mainly web search
display ads viewed on mobile
2011$Global$Mobile$Ad$Spend$By$Category$
Messaging'
10%'
Display'
28%'
Search'
62%'
Source:((IAB(

96. Google completely owns mobile search
Global&Mobile&Search&Market&Share&
100%#
Google&
90%#
80%#
70%#
60%#
50%#
40%#
30%#
20%#
10%# bing&
Yahoo!&
0%#
Dec# Mar# Jun# Sep# Dec# Mar# Jun# Sep# Dec# Mar# Jun# Sep# Dec# Mar# Jun# Sep#
08# 09# 09# 09# 10#
09# 10# 10# 10# 11# 11# 11# 11# 12# 12## 12#
Source:(Global(StatCounter(

97. So Google owns mobile, too
Mobile&Ad&Market&Share&
100%#
90%#
Microso4&
80%# Other&
Yahoo&
Apple&
70%# Pandora&
60%#
50%# Millennial&Media&
40%#
30%#
Google&
20%#
10%#
0%#
1Q09# 2Q09# 3Q09# 4Q09# 1Q10# 2Q10# 3Q10# 4Q10# 1Q11# 2Q11# 3Q11# 4Q11#
Source:(news(reports,(company(releases,(BII(es5mates(

98. Overall, mobile is still a tiny fraction of
digital ad spending.
U.S.'Digital'Adver7sing'Revenues'
$35#
Mobile'
$30#
$25#
$20#
$15#
$10#
$5#
$0#
2007# 2008# 2009# 2010# 2011#
Source:((IAB,(BIA-Kelsey,(BII(es2mates(

99. And it‟s growing much slower than TV +
Internet in the first 5 years
Compara've*U.S.*Adver'sing*Media*
Annual*$*Revenue*Growth*(First*5*Years)*
$5,000%
$4,621%
$4,500%
$4,000%
$3,698%
$3,500%
$3,000%
$2,500%
$2,162% $2,162%
$1,920%
$2,000%
$1,500%
$1,171%
$1,012%
$907%
$1,000% $806%
$500% $358% $392%
$267%
$160%
$80% $55%
$0%
Year%1% Year%2% Year%3% Year%4% Year%5%
Broadcast%TV% Mobile% Internet%
Source:((IAB,(McCann1Erickson,(BIA1Kelsey,(BII(es9mates( Note:(Adjusted(for(infla9on(

100. But!

101. “Native” mobile ads are finally beginning
to appear…
• Ads in timelines (Twitter / Facebook)
• Shareable ads
• Location--‐based mobile ads

102. Location--‐based mobile ads can target us
at the mall, restaurants, car dealers …
Monthly(Ad(Requests(Per(Mobile(User(By(Loca9on(
80"
70"
60"
50"
40"
30"
20"
10"
0"
Source:(JiWire,(Q3(2012(

103. Targeted mobile ads have higher CPMs
CPMs%For%Selected%Mobile%Ad%Pla3orms%
xAd!local! !$3.50!!
LSN!Mobile!local!ads!! !$5.00!!
Adsmobi!video!ads! !$5.00!!
Flurry!video!ads! !$10.00!!
!$(!!!! !$2.00!! !$4.00!! !$6.00!! !$8.00!! !$10.00!! !$12.00!!
Source:(Ad(pla.orms,(BII(Research,(Greg(Sterling,(Opus(Research(

104. So, yes, mobile ads are just getting starte
U.S.&Mobile&Ad&Forecast&
$7,000#
$6,000#
Local&
$5,000#
Mobile&Ad& $4,000#
Revenue&
(millions)&
$3,000#
We are here
$2,000#
Media&
$1,000#
$0#
2009A# 2010A# 2011A# 2012E# 2013E# 2014E# 2015E# 2016E# 2017E#

105. APPS

106. App Store downloads on pace to hit 60
billion by mid--‐2013
Apple%App%Store%Downloads%
65,000,000,000"
60,000,000,000"
55,000,000,000"
50,000,000,000"
45,000,000,000"
40,000,000,000"
35,000,000,000"
30,000,000,000"
25,000,000,000"
20,000,000,000"
15,000,000,000"
10,000,000,000"
5,000,000,000"
0"

107. Smartphone users spend more time on apps than
Total'Time'Spent'Using'Mobile'Web'vs.'Apps'
140"
120"
100"
80"
Minutes'Spent'
Per'Month'
(Biillions')'
60"
Apps'
40"
20"
Mobile'Web''
0"
Mar+11" Apr+11" May+11" Jun+11" Jul+11" Aug+11" Sep+11" Oct+11" Nov+11" Dec+11" Jan+12" Feb+12" Mar+12"
Source:(Nielsen(Smartphone(Analy5cs(

108. Mobile app revenue is growing fast, but
still relatively small.
Mobile)App)Revenue)
$4,000#
$3,500#
$3,000#
$2,500#
$2,000#
$1,500#
$1,000#
$500#
$0#
2008# 2009# 2010# 2011#
Source:(iSuppli,(Forrester(Research,(company(releases,(BII(es8mates(

109. Because most downloads are free
Mobile'App'Store'Downloads,'Free'vs.'Paid:'2011'
Total'Downloads'
Free$Downloads$
89%$
Source:(Garner,(Septem

110. “Freemium” is the dominant model

111. Games are the biggest money makers

112. Mobile has become a
platform game.

113. Platform markets tend to
standardize around one or two
platforms.

114. Right now, mobile is a two--‐horse race.
Global'Mobile'Pla:orm'Market'Share'
100%#
90%#
80%# Other'
70%#
60%#
50%# Windows'
Blackberry'
40%#
Apple'
30%#
20%# Android'
10%#
0%#
Q1#2009# Q2#2009# Q3#2009# Q4#2009# Q1#2010# Q2#2010# Q3#2010# Q4#2010# Q1#2011# Q2#2011# Q3#2011# Q4#2011# Q1#2012# Q2#2012# Q3#201
Source:(Gartner,(IDC,(Strategy(Analy5cs,(BI(Intelligence(es5mates,(and(company(filings #

115. Android has the largest smartphone
platform globally.
Smartphone'Market'Share'By'OS'(Global)'
100%#
Microso8'
90%# Other'
80%#
70%# Symbian'
60%#
Share'of'
Global'Unit' 50%# Blackberry'
Sales'
40%# Apple'
30%#
20%#
Android'
10%#
0%#
Q3#2009# Q4#2009# Q1#2010# Q2#2010# Q3#2010# Q4#2010# Q1#2011# Q2#2011# Q3#2011# Q4#2011# Q1#2012# Q2#2012# Q3#2012#
Source:(Gartner(

116. Partly because it owns China
Chinese'Smartphone'Market'Share'By'Pla9orm'
100%#
Other'
90%#
80%# Symbian'
Apple'
70%#
60%#
50%#
40%#
Android'
30%#
20%#
10%#
0%#
Q2#2011# Q3#2011# Q4#2011# Q1#2012# Q2#2012# Q3#2012#
Source:(Analysys(Interna1onal(

117. And it‟s the same two--‐horse story in table
Tablet%Market%Share%By%Pla8orm%
100%# Blackberry%
Nook%
90%#
80%# Kindle%
70%#
60%# Android%
50%#
40%#
30%#
iPad%
20%#
10%#
0%#
Q2#2010# Q3#2010# Q4#2010# Q1#2011# Q2#2011# Q3#2011# Q4#2011# Q1#2012# Q2#2012# Q3#2012#
Source:(Es+mates(based(on(informa+on(from(IDC,(Strategy(Analy+cs,(and(company(filings#

118. But a big mystery has
arisen...

119. Where are all these Android
users?

120. Apple is dominating app revenue
Mobile%App%Revenue%By%Pla<orm%
$4,000#
$3,500#
Other%
$3,000#
Android%%
$2,500#
$2,000#
$1,500#
$1,000#
Apple%iOS%
$500#
$0#
2008# 2009# 2010# 2011#
Source:(iSuppli,(Forrester(Research,(company(releases,(BII(es8mates(

121. And most commerce and web traffic is from A
Ecommerce%Website%Traffic%By%Mobile%Pla:orm%
100%# Other%
Android%Tablets%
90%#
Android%
80%#
70%#
60%#
iPhone%
50%#
40%#
30%#
iPad%
20%#
10%#
0%#
Q1#2011# Q2#2011# Q3#2011# Q4#2011# Q1#2012# Q2#2012# Q3#2012#
Source:(Monetate(

122. Do Android folks actually use
their devices?

123. Mobile profits are going mainly to two playe
Opera?ng%Profit%Share%By%Vendor%
80%%
70%%
Nokia%
Apple%
60%%
50%%
Samsung%
40%%
30%%
20%%
Sony%Ericcson%
10%%
RIM%
HTC%
LG%
0%%
Motorola%
!10%%
!20%%
2007% 2008% 2009% 2010% 2011% Q1%2012% Q2%2012% Q3%2012%
Source:(Company(releases,(Canaccord(Genuity(es6mates(

124. So, what‟s the future of media

125. Digital?

126. Yes.

127. Mobile?

128. Yes.

129. Mobile ONLY?

130. No.

131. Digital is now a 4--‐screen world…

132. Maybe 5 screens soon…

133. But mobile FIRST?

134. Only if you have a totally
mobile--‐centric app...

135. ...Or you want to annoy your
users and customers.

136. Thank you very much.

137. Henry Blodget
Founder, CEO & Editor-in-Chief, Business
Insider
Marcelo Ballvé, Editorial Director
Alex Cocotas, Analyst
Josh Luger, Director of Subscription Products
Peter Lee, Intern
BI Intelligence is a new subscription service from Business Insider
that provides in--‐depth insight, data, and analysis of the mobile industry.
More info at intelligence.businessinsider.com

138. GoldenMarket vous propose des
optimisations pour le mobile :
Demandez nous plus d’informations :
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