1. Smartphone usage in Australia is growing rapidly and surpassing personal computer use, with Android dominating the mass market and iOS users being younger and wealthier on average. 2. Mobile advertising is experiencing strong growth driven by the rise of smartphones, and advertising is becoming richer and more targeted as new formats replace old ones. 3. Location-based mobile advertising is positioned to be the next big driver of growth in the industry as marketers aim to reach consumers across all stages of the customer lifecycle.

1. “Where is Mobile Advertising Heading?”
Matt Bruce – M.D. Nielsen Media & Telco
#ATSYD

2. Smartphones are 3rd favourite and catching PC’s fast
#ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

3. Android wins the mass market but iOS users are young and rich
#ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

4. iOS users do more with their phones
#ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

5. Watching TV on mobile screens has doubled in 2 years
#ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

6. We also use our mobile more regularly while watching TV
#ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

7. During the Olympics we used mobiles to keep up with the action
#ATSYD

8. Mobile and TV as popular for Olympics at some points in the day
#ATSYD

9. Smartphones are driving stongest mobile ad growth in years
#ATSYD Source: PwC/IAB Online Advertising
Expenditure Report December 2012

10. Richer and more targeted ads are replacing old formats
#ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

11. Location based ads will drive the next wave of growth
#ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

12. #ATSYD Source: Nielsen Australian Connected
Consumers Report 2012 -2013

13. “Where is Mobile Advertising Heading?”
Graham Christie – Partner, Big Mobile.
#ATSYD

14. We live in wacky times…
#ATSYD

15. 1. Change (duh)
Still over 10% of AUS brands are hesitant of Mobile.
Pockets of advertisers are KPI’d on how cheap the clicks are.
Practitioners that put operational considerations above value creation
#ATSYD

16. 2. Mobile’s pivotal position.
66% 2013. 45% of
penetration of AUS users will
Smartphones in watch video on
AUS. mobile.
2013. A quarter of By 2016 88% of
all digital media local online ads
time spent – will be served onto
on mobile in AUS. mobile (U.S.)
By 2015, amongst G-20, internet access
on mobile will be x4 that of fixed.
#ATSYD ComScore Digital Future 2013
Boston Consulting Group, Kleiner Perkin, Berg Insight
TNS Mobile Nation

17. 3. Customer lifecycle.
COST TO ACQUIRE
Tempting
COST TO RETAIN
COST TO SERVE
Apologisin
g Winning
Saving back
Selling
Advocating
Friending Incentivisi
ng
LIFETIME VALUE
#ATSYD

19. Telecommunication Trends over time
100%
96.0% Have home phone connected
89.9%
Own or use a mobile phone 79.4%
80%
76.6%
71.4%
%age of Australians 14+
60%
Have Broadband
Have Internet
service at home
connection at home
40% 40.3%
Subscribe to Pay
TV at home 27.9%
29.3%
20% 19.2%
1.4%
0%
Base Aust Population aged 14+; Source: Roy Morgan Research; 12 month moving average.

20. New Communication Technological
Products 70%
Own a plasma or LCD TV 65.6%
60%
50% 48.8%
Smartphone
44.5%
%age of Australians 14+
as main mobile
40%
30%
Own a 3G/4G 24.8%
mobile phone
20%
16.2%
10%
Own a Tablet 6.8%
0.2% Computer
0%
Base Aust Population aged 14+; Source: Roy Morgan Research; 12 month moving average.

21. Roy Morgan Technology Adoption
Segments
Older Tech
Digital Explorers
Life
Professional
Technology Technology
Mainstream Traditionalists
Technology Early Technophobes
Adopters
16% 18% 14% 9% 24% 19%
Early Adopters Early Majority Late Majority Laggards
Early Adoption Mass Market Maturity

22. Did one or more internet activities online
by mobile in the last 4 weeks
Technology Early Adopters, 72%
70%
%age of Australians 14+ who own/use a mobile phone
60%
Digital Life, 57%
Prof. Tech Mainstream, 55%
50%
All Australians 14+, 46%
Older Tech Explorers, 42%
40%
30% Technology Traditionalists, 30%
Technophobes, 28%
20%
10%
0%
Rolling 12 month quarters

23. Types of mobile phone internet
activities
Entertainment, 48%
inc. streaming video games 25%
38%
Research & information, 55%
inc. maps, weather 36% Technology Early
35% Adopters
41%
Social media activities 20%
21% Professional
Technology
Mainstream
Shopping, 27%
inc. product/service research 14%
14%
Digital Life
Banking, inc. online 40%
banking, check balance 25%
19%
Single Source,
Oct-Dec 2012
Communication, 57%
inc. Email, VoIP, IM 35%
33%
% Australians 14+ who own/use a mobile phone

24. Technology Early Adopters
Top 20 Online Activities by mobile
phone
Traffic or public transport info
Instant Messaging
12%
13%
Downloaded games 13%
Uploaded photos to website 14%
Made telephone calls using VoIP 14%
Streamed music 14%
Accessed news 15%
Viewed online bank statements 15%
Read newspapers online 16%
Paid bills online 16%
Researched a product /service 19%
Downloaded software 24%
Conducted banking transactions 30%
Weather 32%
Single Source,
Checked bank account balances 33% Oct-Dec 2012
Streamed video 33%
Social networking 39%
Maps or directions 39%
General browsing/surfing 43% 54%
Email
% Australian 14+ who own/use mobile phone

25. Business investment in mobile
as a marketing channel in next 12
months 61%
64%
62%
54%
50% 51%
% of Australian businesses
42%
40%
37% Mobile Phone
34%
31% Internet
28%
Social Media
"In the next 12 months, will the following channels will be more or less Business Single
Source,
important as part of your marketing mix?" Oct-Sep 2012
Micro Business Small Business Medium Business Large Business
(under 5 employees) (5 - 19 employees) (20 - 199 employees) (200 employees or more)