Consumers go mobile in CEE

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Consumers go mobile in CEE Mobile market overview Source: stock image bank Fotolia
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Transcript of Consumers go mobile in CEE

Page 1: Consumers go mobile in CEE

Consumers go mobile in CEE

Mobile market overview

Source: stock image bank Fotolia

Page 2: Consumers go mobile in CEE

CONTENT

Mobile internet in CEE 2-11

12-13

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20-21

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44-4647-48

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Belarus

Bulgaria

Croatia

Czech Republic

Estonia

Hungary

Latvia

Lithuania

Macedonia

Moldova

Poland

Romania

Russia

Serbia

Slovakia

Slovenia

Turkey

Ukraine

Methodological Note

Authors

Page 3: Consumers go mobile in CEE

MOBILE INTERNET IN CEE

IS 2014 FINALLY THE YEAR OF MOBILE?

DESPITE THE DYNAMIC GROWTH, MOBILE AD SPEND CONSTITUTESA SMALL SHARE OF TOTAL ONLINE BUDGETS

The year of mobile has been announced each and every year since 2012, but market professionals seem to agree that 2014 is finally the year when mobile truly becomes a mainstream marketing solution. According to the latest , the definitive guide to the state of the European online advertising market, there was a breakthrough in mobile advertising already in 2013. Mobile was neither only a part of advertisers' experimental budgets, nor an afterthought to a digital campaign. Mobile advertising spend continued to grow dynamically in most investigated markets. Mobile display advertising was also the main factor influencing the growth of online display advertising. It grew by 14.9% in total, but would only have increased by 1.1% without the contribution of mobile.

IAB Europe AdEx Benchmark report

However, when we look more closely at the numbers, the reality does not reflect the industry's enthusiastic approach. Close scrutiny of the top 3 European spenders on mobile advertising shows that mobile advertising is becoming a reality only in United Kingdom, where a quarter of online display ad spend is allocated to mobile. In France and Germany, it constituted only 9.2% and 4.9% of total online display ad spend, respectively (see Figure 1).

Figure 1. Top 3 European countries by mobile advertising spend

Source: IAB Europe AdEx Benchmark 2013 report, IAB Europe and IHS, July 2014,

http://www.iabeurope.eu/files/8014/1111/3050/IAB_Europe_AdEx_Benchmark_2013_Report_v3.pdf

54.9%

66.7%

92.9

65.0

184.9

47.8

43.0

Mobile display ad spend

2012 (€m)

Mobile display ad spend

2013 (€m)YoY Growth (%)

192.7%549.0

1015

1319

Total online display ad spend

2013 (€m)

2192

AdEx Benchmark YoY growth rate calculation: to provide data on previous year growth rates, the prior year's figures arealso re-calculated using the current report's year-average exchange rate (i.e. the 2013 exchange rate is used on the 2012 figures) in order to give transparency over the growth rate.

Mobile display as a share of total

online display (%)

9.2%

4.9%

25.1%United

Kingdom

France

Germany

The situation in countries of the Central and Eastern Europe is very similar. The dynamics of growth in many countries, such as Romania (244.9%), Serbia (153.3%), Hungary (126.1%) and Poland (110.6%), is still very high, yet mobile ad spend constitutes a small part of total online budgets (see Figure 2).

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Figure 2. Mobile ad spend in CEE

Source: IAB Europe AdEx Benchmark 2013

5.0

4.1

3.6

0.5

0.4

0.2

0.2

0.1

7.6 49.1%

27.3%

126.1%

110.6%

n/a

153.3%

244.9%

55.2%

15.0%

223

61

259

11

12

33

13

7

Turkey

Czech Republic

Hungary

Poland

Slovenia

Serbia

Romania

Bulgaria

Croatia

Mobile display ad spend 2013 (€m) YoY Growth (%)

Total online display ad spend 2013 (€m)

Mobile display as a share of total

online display (%)

275 2.8%

2.2%

6.7%

1.4%

4.6%

3.1%

0.7%

1.2%

2.1%

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ONLY 8% OF PLANNED AD IMPRESSIONS IN CEE ALLOCATED FOR MOBILE ADVERTISING

Advertisers and media agencies in CEE are more focused on their current marketing plans, perceiving mobile as a matter of the future. Only 8% of planned ad impressions in campaigns measured by gemiusDirectEffect (see Methodological Note), a campaign monitoring tool for measuring impressions, clicks on the creatives and visits on the website, in CEE between December 2013 and May 2014 were allocated for mobile advertising. The undisputed leader is Serbia with 18% of mobile impressions.

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DesktopImpressions

MobileImpressions

94% 6%

Figure 3. Mobile vs. desktop ad impressions

82% 18%Serbia

90% 10%Slovakia

91% 9%Hungary

91% 9%Bulgaria

91% 9%Czech Republic

92% 8%CEE

93% 7%Croatia

93% 7%Romania

94% 6%Latvia

94% 6%Poland

Lithuania

Source: gemiusDirectEffect, Dec 2013 - May2014

Aggregated data for the CEE include the following countries: Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia.

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Page 5: Consumers go mobile in CEE

Source: gemiusDirectEffect, Dec 2013 - May2014

Desktop CTR

Mobile CTR

0.67% 0.67%

0.96%

0.33%

0.65%

0.44% 0.45%

0.49%

0.43%0.41%

0.26%

0.44%

0.20%

0.28%0.24%

Serbia

Slovakia

HungaryBulgariaCzech

Republic Croatia Romania

Latvia

Poland

Lithuania

0.00%

1.00%

0.80%

0.60%

0.40%

0.20%

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0.67%

0.52%

0.67%

0.50%

0.27%

Figure 4. Mobile vs. desktop Click Through Rate (CTR)

There are several challenges the markets have to face in order to increase the popularity of mobile advertising and monetize the mobile audience.

The last, but obviously not the least important reason for the rather small interest from the markets in mobile advertising is the high price of mobile inventory in comparison to the standard display pricing.

Despite the fact that mobile advertising is still far from becoming a mainstream marketing solution in the CEE region, this process has already started and will be continuing due to the increasing usage of mobile devices among internet users.

Moreover, markets lack proper measurement of the mobile audience, which is essential for effective media planning. Measurement of PC, phone and tablet platforms has been available via Gemius Multiplatform Audience Measurement since March 2014.

Content is king regardless of the device used for browsing the web. Mobile devices give the opportunity to target users with the right content in the right place and time on an unprecedented scale. However, the biggest challenge for advertisers is to keep the balance between personalized and intrusive content.

Investments in mobile or at least responsive versions of websites are required for attracting advertisers. Users tend to surf the web on their tablets or smartphones more and more often and this trend sets a new standard for website building. Despite this requirement, on most markets the majority of websites have not yet been adapted to the new mobile reality. Most brands are taking a rather slow approach by simply adapting their existing websites. Just to mention Bulgaria, where out of 300 websites taking part in gemiusAudience research only 30 have a mobile version.

Page 6: Consumers go mobile in CEE

Mobile internet used to be a luxury that only few could afford and use on a daily basis. Nowadays almost everyone, from children in playgrounds to seniors, have mobile phones or/and tablets connected to the internet. According to GSMA Intelligence, SIM card penetration in almost all of CEE countries, apart from Serbia, Bosnia & Herzegovina and T urkey exceeded 100% in Q4 2013.

MOBILE TRAFFIC IN THE CEE GREW FROM 3% TO 10% IN THE LAST TWO YEARS

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Source: GSMA Intelligence, www.gsmaintelligence.com, Q4 2013.

Figure 5 . Number of SIM connections and SIM penetration in CEE

The ongoing development of new technologies means that a growing share of online population connect to the internet via their mobile devices. A dynamic growth of mobile traffic could be observed in the past two years. In 2012, mobile constituted only 3% of the internet traffic in CEE, excluding in-app traffic. This number has grown to 10% at present, mostly due to the rapid increase of smartphone page views.

penetration

Page 7: Consumers go mobile in CEE

Source: gemiusRanking, June 2011 - June 2014

3Aggregated data for the CEE region include the following countries: Belarus, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Ukraine.

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Despite the growing popularity of the mobile internet, it has to be noted that the CEE region is highly diversified in respect of the number of users or the share of mobile page views per device. The leader is Croatia, where in June 2014 over 20% of page views were made via mobile devices. Above the CEE average are also countries such as Lithuania (18%), Slovakia (17%), Serbia (16%), Turkey, Macedonia, Bosnia & Herzegovina and Estonia (14%). On the other hand, there are countries performing much below the average, like Moldova (1%), Ukraine (5%) and Belarus (6%).

Phone Tablet

3%

4%

4%

2%

3%

2%

3%

2%

4%

5%

3%

3%

5%

4%

2%

3%

2%

1%

14%

13%

14%

8%

12%

7%

12%

5%

9%

6%

9%

4%

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4%

8%

3%

0%

18%79%

82%

83%

84%

89%

86%

90%

86%

91%

86%

91%

88%

91%

89%

94%

PC

89%

95%

99%

89% 8% 3%

Bosnia & Herzegovina

Croatia

Lithuania

Slovakia

Serbia

Macedonia

Estonia

Czech Republic

Hungary

CEE

Slovenia

Romania

Belarus

Latvia

Bulgaria

Ukraine

Moldova

Poland

Russia

Figure 7. Mobile page views in CEE by countries

Source: gemiusRanking, June 2014

Figure 6. Mobile page views growth in CEE3

PC Tablet Phone

20

11

.01

2013.012013.06

2014.01

20

14

.06

2011

.06

2012.01 2012.06

3%97% 7%2% 90%1%

Page 8: Consumers go mobile in CEE

INTERNET CONSUMPTION PATTERNS ARE DIFFERENT ON EACH DEVICE TYPE

With the growing popularity of mobile devices, the consumer behavior on the internet has become more complex than ever before. Internet consumption patterns are very different on each device type. During the week, 52% of the PC traffic happens during the working hours, between 9 a.m. and 5 p.m. During the weekend, the pattern changes: 54% of the PC traffic takes place between noon and 8 p.m. During the weekday, tablets are mostly used in the afternoons – 50% of the tablet traffic is recorded between 4 p.m. and 11 p.m. However, during the weekend, tablets are used equally during the whole day starting from 9 a.m. and ending at 11 p.m., reaching its peak between 10 and 11 p.m. Similarly, phones are used equally during the whole day, with a peak time between 9 and 11 p.m. during the weekday, and between 9 and 10 p.m. during the weekend.

Source: gemiusRanking, 27 June 2014, 1 June 2014

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

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0%

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2%

3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

Figure 8. Hourly distribution of page views for PCs, phones & tablets in CEE (weekday, 27 June 2014 vs. weekend, 1 June 2014)

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Phone Weekday

Phone Weekend

Tablet Weekday

Tablet Weekend

Page 9: Consumers go mobile in CEE

APPLE RULES TABLETS, SAMSUNG – PHONES

Some very interesting conclusions may be drawn when analyzing the most popular mobile producers and operating systems. Apple is the most popular manufacturer of tablets – 55% of page views in CEE in June 2014 were made with the use of devices of the Cupertino giant. However, its gradually losing its position, while Samsung is on the rise – in the last two years the number of page views generated from Samsung tablets increased from 18% to 23%.

Source: gemiusRanking, June 2014

When it comes to smartphones, the undisputed leader is Samsung - 37% of page views in CEE in June 2014 were made with the use of its devices. Both, Samsung and Apple, are steadily strengthening their position in the smartphone producers segment. This is caused by the slow decline in the popularity of Sony devices and the spectacular drop of Nokia (from 21% in January 2013 to only 12% in June 2014) due to its late entry into the market with smartphones.

Source: gemiusRanking, June 2014

Figure 9. CEE: Top tablet manufacturers and operating systems by share of page views

45% 55%

16%

13%

14% 16%

33% 37%15% 14%

34%

14% 15%

35%

01.2013 06.2013 01.2014 06.2014

6%

68%

18%

01.2013

7%

60%

19%

06.2013

6.5%

58%21%

01.2014

6%

55%23%

06.2014

72% 16% 4%

Figure 10. CEE: Top phone manufacturers and operating systems by share of page views

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WindowsPhone 8

Android

iOS

Samsung

Sony

Android

Apple

iOS

Samsung

Asus

Apple

Page 10: Consumers go mobile in CEE

The nature of the mobile device has changed dramatically in the 41 years since the first hand-held cell phone was introduced in 1973. Still, mobile devices will change even more radically in the next 10 to 15 years. Hardware improvements will take a backseat to ways in which the mobile devices can make people's lives better. After all, how many megapixels, megahertz, and megabits per second do we really need? Main directions of change will occur in three areas: customization, simplification, and machine to machine (M2M) communication.

Martin Cooper, Mobile Phone Inventor

The concept of wearable devices is still in its infancy. But we are evolving the vision of devices that measure dozens of vital signs on the body and communicate these to computers that can analyze them and determine whether our bodies are about to malfunction. Other devices will give us the ability to control our surroundings and our property without regard to distance. These devices will protect us and make us more productive.Of course, this future that I envision will not happen unless the cost of wireless service is radically reduced. History tells me that this most certainly will happen. The cost of sending a bit of information has gone down by half every 3 1/2 years since Marconi sent the few bits that he transmitted across the ocean. This translates to 1 trillion times improvement up to the present and that trend will continue.

Smartphones are much too complicated! As with any really good technology, the smart phone of the future will, virtually automatically, adapt itself to the individual who acquires that device. The intelligent phone will ask a few questions and observe the habits and processes of the individual and adjust itself accordingly. The opposite extreme is the present situation: a customer buys a smartphone and is told that there are over one million applications available, and is left to figure out which of them are useful. As an example, the optimum voice communicator will ultimately be embedded under our skin, perhaps behind our ears, and will work virtually automatically. We will only have to think about speaking to somebody and we will be connected.

One of the wonderful things about human beings is that we are all different from one another and yet, when it comes to our mobile devices we have been severely limited in our choices. Steve Jobs decided that he knew exactly what we would all love and offered us essentially one model. The variety in mobile device offerings is increasing, but we have a long way to go before mobile phone subscribers have the same variety of choice as automobile buyers.

The smartphone of the future will, in a virtually automatic manner, adapt itself to the individual who acquires that device.

IT IS THE ERA OF MOBILE CONSUMERS IN CEE, BUT MOBILE ADVERTISING LAGS BEHIND

Summing up, we can already say that the era of mobile consumers in CEE has come, but it is still not the era of mobile advertising. The very nature of the web use is changing, which largely stems from the technological progress. In practice, the growing number of smartphones and tablets means significant changes in the behaviour of users. This will affect the ways in which they spend their leisure time, the frequency of browsing the web, and increase their appetite for mobile apps. With these devices, internet access has become practically unlimited. The smartphone and tablet market boom is observed all over Europe – of course with some variations in the scope of the phenomenon. Yet, the common ground is the rise in the demand for this type of devices. This trend poses new challenges to advertisers who are interested in getting their message across via the internet, to online publishers and the entire business operating on the web. Every industry or company operating online must address the specificity of mobile devices and the new obstacles, but also the chances they offer.

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Page 11: Consumers go mobile in CEE

Understanding the trend should serve as a basis for a new model of online business presence: both brand and sales oriented. Because we are dealing with a market where every fourth or third web connection is made with a mobile device, this must be taken into account, so that the contact with internet users is not broken. Be them the current or potential customers.

According to GSMA Intelligence SIM Penetration exceeds 100% in almost all countries in our region. Share of mobile page views for the whole region grew in the last two years from only 3% to 10%. In western countries this is even more visible – in Denmark mobile traffic grew from 19% in July 2012 to 45% in July 2014. We have to face it - mobile is not anymore a buzz word but it is the new reality. But advertisers can't think about mobile as a stand-alone strategy. Customers may be using different channels to communicate or interact with a brand. Our research shows how users are waking up with the phone & tablets, spending their working day with PC and using more intensively again tablets in the evenings. We should not overlook this fact. Advertisers need to plan how to reach the right consumer with the right message via the right channel. What they need to do is to incorporate mobile in their overall communication strategy. And mobile channel gives them a lot of possibilities to be creative, from mobile websites and apps, through mobile video and social networks that are mainly used via mobile phones. But all those actions have to derive from characteristics of particular target group we are aiming to reach, their needs, preferences and online behavior – only data driven approach can lead us to become customer centric organization.

Vesna Gordon, CSO & CMO, Member of the Board of Directors, Gemius

WHAT DOES THIS MEAN FOR THE ONLINE BUSINESS?

In practice, it is all about customer - centric approach.

THE KNOWLEDGE ABOUT THE MOBILE CONSUMER WILL BECOME A COMPETITIVE ADVANTAGE

Gemius, being well aware of this trend, has recently launched Multiplatform Audience Measurement with consideration of internet access platforms – stationary or mobile. The research project facilitates division of users into those who use tablets and those who surf the web on their smartphones. The solution has been already implemented in Denmark, Latvia, Lithuania, Estonia and Turkey. In the coming months, the research project will start in other countries where Gemius operates.

Taking into consideration the growing popularity of mobile devices and its usage one thing can be said for sure - the knowledge about the mobile consumer will become a source of competitive advantage for all companies operating online.

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Page 12: Consumers go mobile in CEE

Computers and other connected devices have become an integral part of the education of a significant segment of the public, but the impact of these devices has been limited by the inability of our educational system to understand, never mind embrace, the power of full time access to most of the knowledge of the world, and the economics that exclude most people from such access. Further, we have not yet been able to demonstrate that the good side of the “digital divide” is demonstrably superior to the other side. The concept of the “flipped classroom” is about to change this.

Martin Cooper, Mobile Phone Inventor

The basis of the new educational system is the “flipped classroom” model, a concept in which students do most of their learning outside of school. In lieu of paper books, each student carries a device that provides curated, ubiquitous, and full-time access to his or her course work, and to much of the knowledge of the world. Classroom time is dedicated to collaboration with other students and teachers, team experiments, personal counseling and problem resolution by teachers. In this educational paradigm, there are few lectures. Students may tackle assignments that transcend narrow subject matters in favor of broad learning experiences tailored to their needs and abilities. The devices and software that teach them are designed specifically for this purpose. The teaching programs measure students' progress by monitoring their expressions and vital signs. When necessary, a program may require a student to repeat an exercise or will divert the student to a different approach to understanding a concept or even to a different course of study more appropriate to the student's aptitudes.

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Education and Wireless Broadband Are Irresistibly Intertwined. There is evidence that new approaches to education will not only create people who are more educated, but rather a class of people who are better at problem solving, at abstracting, and even at learning than people who are traditionally educated. Children who grow up immersed in the new educational paradigm will have more developed brains, a larger neocortex, more synapses. Collectively, they will represent a step forward in the evolution of mankind (and, of course, womankind).

Mobile affects more areas of human life, not only business - the concept of the “flipped classroom”.

Page 13: Consumers go mobile in CEE

BELARUS

According to various estimations, this year smartphone penetration has exceeded the threshold of 30% within total mobile subscribers – this group has more than 11 million users in Belarus. Belarus is rapidly approaching the rates of developed markets. It shows in the growth of users, in affordable price and high quality of 3G mobile internet coverage. The talk about growth of mobile advertising segment is not warranted yet. At the time, due to regulatory restrictions, mobile advertising was actually put under a ban in Belarus. Today ads in applications or mobile browsers can be classified as online media advertising. And as soon as it becomes an interesting issue for advertisers due to a number of parameters, sales agencies will quickly position themselves and offer some solutions. This means that this segment in Belarus will be developing in keeping with the laws applicable in all the other media and contextual advertising under strict supervision of sale houses. Mobile internet will drive the overall online business in the country. And that is good.

The talk about growth of mobile advertising segment is not justified yet

Sergej Skorohoda, CEO, Marketing.by project

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Mobile page views growth

PC

Tablet

Phones

Source: gemiusRanking, Jan. 2011 - June 2014

Source: gemiusRanking, June 2013 - June 2014

Source: gemiusRanking, June 2013 - June 2014

2%

98%

4%

2%

94%

0%

01.2014

01.2014

01.2013

01.2013

10%

10%

15%

20%

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0%

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60%

29%

46%

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11%

40%

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06.2014

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06.2013

Huawei

Prestigo

Samsung

Samsung

Nokia

Apple

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

Page 14: Consumers go mobile in CEE

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

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Hourly distribution of page views for PCs, phones and tablets

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PC Weekday

PC Weekend

Phone Weekday

Phone Weekend

Tablet Weekday

Tablet Weekend

A breakthrough on the Belarusian mobile internet happened in 2010, when all three GSM operators offered 3G service. It all started with operators' offer of 3G-modems to their customers. This has led to a slowdown and stagnation of Wi-Fi networks development in Belarus. Since 2012, operators have been actively promoting smartphones with good internet plans in package. Further development will be related to the decreasing in the cost of mobile internet, increasing its speed and improving its quality. So far budgets for mobile display advertising are small and, to a considerable extent, represented by the same mobile operators. But, since mobile traffic increases and the diagonal of mobile devices grows, more and more advertisers focus on mobile versions of their sites.

Budgets for mobile display advertising are small and, to a considerable extent, represented by the same mobile operators

Mikhail Doroshevich, Online Media Consultant and Contractor, e-belarus.org

Source: gemiusRanking, weekday, 27 June 2014 vs. weekend, 1 June 2014

Page 15: Consumers go mobile in CEE

BULGARIA

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Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

At the present stage, mobile ads are perceived much more as a tool for focused communication with the users and a channel that supports the main online campaign. This is why most of websites give it as a bonus for online campaigns with more substantial budgets. The increasing and significant growth of smartphone usage and mobile internet is undeniable, which is in contradiction with the small amount of budgets allocated to this channel. More and more publishers, however, are offering ad formats and functionalities visualized in multiscreen environment. Thus the publishers help to increase the campaign reach and to attract more quality traffic to the client's landing page.

Most of the advertisers and the media agencies are probably at a stand-by, watching the processes and carefully evaluating strategies - without taking any big risks, which as a matter of fact was until some time ago the same path of development for the standard online advertising in Bulgaria. It will take some time, but soon the mobile advertising will take its rightful place in the digital media mix. Hopefully this will happen next year. We believe that the standard mobile advertising is not the most felicitous path for development. The possibilities for more deep and complicated projects, which by the way will be more result-oriented, will help the future growth of this media channel.

The mobile internet is successfully progressing and as a result the online advertising business can not stay uninterested for a long time. The investments in mobile versions of the already existing website as well as the creating of applications is an obligatory part of the strategic planning and media presence of the companies. Probably soon each media plan will contain a separate obligatory part where all suitable mobile channels will be listed. The online business is influenced by the users' actions which more often now are created through mobile devices. The easier the mobile consumption and usage of certain website, the bigger the return of investment.

The mobile advertising did not succeed to develop up to the levels expected for 2014.

Kornelia Boiadjieva, Digital Account Executive, Universal Media, Bulgaria

Mobile page views growth

PC

Tablet

Phones

100%

01.2014

01.2014

01.2013

01.2013

10%

10%

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20%

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0%

25%

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06.2013

06.2013

Apple

Lenovo

Samsung

Samsung

Nokia

Apple

3%

6%

0%

91%

0%

Source: gemiusRanking, Jan. 2011 - June 2014

33%

54%

38%

37%

22%

25%

19%

24%

16%

0%

10%

16%

Source: gemiusRanking, June 2013 - June 2014

Page 16: Consumers go mobile in CEE

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

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8%PC Weekday

PC Weekend

Only 9% of all planned ad impressions are allocated for mobile advertising

Despite the long-anticipated invasion of the mobile advertising, up until now, 2014 cannot be described as the 'year of mobile'. Only 9% of all planned ad impressions in the campaigns measured by our 3rd party ad serving system (gemiusDirectEffect) are allocated for mobile advertising.There are a few main reasons in my opinion. Even now, only some of the media websites in Bulgaria have developed a successfully working mobile version. Less than 10% of all websites have a mobile version - from 300 websites measured in gemiusAudience monthly research study, only 30 mobile versions were present. Mobile versions of the sites are developed mainly by the large and mid-sized media groups. This is why most of the advertisers probably don't allocate big parts from their budgets in mobile - they don't have a large variety of possible mobile channels, and as a result they cannot get the aimed reach as easily and cost-effective as they want. The good news is that when redesigning the websites, they are now planning responsive designs, which easily adapt to different devices via which the site is visited. More and more often, the publishers are creating different applications that improve the users' experience and help them save time when using their favourite media channels. The other reason is that mobile advertising is still perceived as a new channel. Most of the advertisers are usually looking for feedback and interesting case studies before they even think to invest more actively in mobile. This is why the more interesting and useful information there is on the market, the more likely new budgets for mobile are. Last but not least, the mobile CPM is relatively higher than the standard one. Mobile advertising also needs special formats, which callls for additional costs. With that in mind, it's no surprise that mobile is still only a supporting channel in the digital media mix.

Almost all of mobile operators in Bulgaria are currently focused on smartphones usage expansion. The reason is simple - the usage of smartphones demands constant internet connection (3G, etc.) which allows them to upsell more of their products. The mobile operator clients now are using their phones not only for conversations as it used to be in the past, but also for digital communication, sending/receiving e-mails, instant chatting, Facebook, twitter, Instagram, foursquare, etc. So the future of the mobile internet looks bright. This of course, will affect the online business positively, because the users will always be online and ready to click- whether they are in the office, in the car or in the street.

15

Hourly distribution of page views for PCs, phones and tablets

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8% PC Weekday

PC Weekend

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%PC Weekday

PC Weekend

Yordanka Blazheva, Account Manager, Gemius Bulgaria

Page 17: Consumers go mobile in CEE

CROATIA

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

Mobile has rapidly showed increase in terms of usage in this year. This happened partially due to the content (where more of it is available on mobile enabled and responsive sites) or technology and infrastructure side (much more mobile flat-rate tariffs, bigger and faster devices, etc.). For the first time, some sites, obviously depending on regional traffic source and type of industry, showed desktop traffic falling below 50%. This is the sign that the long-awaited boom of mobile has happened in Croatia.

Unfortunately, this boom did not affect the growth in advertising budgets, mainly for two reasons: majority of clients still didn't adapt their sites to mobile, and there is no measurement and/or research of mobile specific traffic on sites and apps. Both these facts are objective obstacles to serious growth of mobile advertising budgets.

Although the rise of mobile is staggering and it influences some decrease in desktop traffic, depending on the type of service and content offered, it will accelerate the downfall in consumption of other media, especially print and traditional radio. More and more people, when outside and in needed some information or entertainment, reach for their mobile and tablet rather than newspaper when having a coffee. Car radio consumption for example will experience more decrease with the growth of digital streaming services and podcast services. It will definitely direct more budgets towards digital advertising in all of its forms.

Saša Škorić, Digital Manager, Omnicom Media Group Croatia

01.2014

01.2014

01.2013

01.2013

10%

20%

0%

40%

60%

30%

50%

10%

15%

0%

25%

35%

20%

30%

40%

70%

06.2014

06.2014

06.2013

06.2013

Apple

Huawei

Samsung

Samsung

Sony

Apple

Long-awaited boom of mobile has come to Croatia, but still is not reflected in growing mobile advertising budgets

16

Source: gemiusRanking, June 2013 - June 2014

Source: gemiusRanking, June 2013 - June 2014

37%

68%

55%

37%

27%

13%

26%

27%

13%

7%7%

13%

Mobile page views growth

PC

Tablet

Phones

3%

18%

79%

Source: gemiusRanking, Jan. 2011 - June 2014

98%

2%0%

Page 18: Consumers go mobile in CEE

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets

PC Weekday

PC Weekend

Although by looking at the statistics of consumer consumption of mobile internet, one can say that the year of mobile has come to Croatia, this trend is not so apparent in advertising expenditures. Mobile traffic is at a constant rise of 5% quarterly and accounts for almost 20% of all page views made in Croatia. However, the share of overall advertising budget for mobile is approximated at less than 5%. Gemius is planning to introduce a multi browser approach and we are sure this will bring transparency and help to increase the advertisers' interest and expenditures in mobile.

As currently most half of the websites whose business model is online advertising are not responsive, it is expected that most of them will change their design accordingly in the next couple of years. Also, we can most probably expect an appearance of networks and agencies specialized in mobile advertising that will offer specialized mobile advertising solutions. The market in Bosna & Herzegovina is following the trend, except it is not yet as developed.

Mobile traffic is at a constant rise of 5% quarterly in Croatia

Vibor Kalogjera, Country Manager, Gemius Croatia and Bosnia & Herzegovina

17

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Page 19: Consumers go mobile in CEE

18

CZECH REPUBLIC

I think the year of mobile for the Czech Republic was actually the last year, i.e. 2013, when lots of new devices appeared on the market and the share of mobile page views grew from 5 to 10%. Currently, over 40% of the online population is connected on a mobile device and the growth of usage goes on.

I believe the marketers are already taking into account the importance of mobile and the second screen. We can see the mobile ad spend rapidly growing and together with the growing penetration it is one of the key drivers of the online business.

The year of mobile for the Czech Republic happened in 2013

Pavel Ševera, Project Coordinator, SPIR/IAB Czech

Mobile page views growth

PC

Tablet

Phones

Source: gemiusRanking, Jan. 2011 - June 2014

3%

99%

8%

1%

89%

0%

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Prestigio

Samsung

Samsung

Sony

Apple

35%

68%

50%

39%

15%

16%19%

15%

14%

2%

10%

14%

10%

20%

0%

40%

60%

30%

50%

70%

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

10%

0%

20%

30%

40%

Page 20: Consumers go mobile in CEE

Phone Weekday

Phone Weekend

19

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets

PC Weekday

PC Weekend

In two years, the traffic from mobile devices increased nearly four times, which means that in June 2014, almost 11% traffic was generated by mobile devices: 8% by mobile phones and 3% by tablets. If we consider the global trends, the mobile boom is still to come and we are expecting a constant growth in this area in the Czech Republic. In May 2014, the number of users visiting the mobile websites measured in NetMonitor (gemiusAudience) from mobile phones and tablets exceeded 3 million, which means that almost half of Czech internet population uses mobile devices to connect the internet. The number of mobile page views in comparison to April grew by more than 14% and now amounts to nearly one billion. Among the most visited websites from mobile devices we can find news portals such as m.novinky.cz and m.idnes.cz as well as horizontal and tabloid portals such as m.seznam.cz and m.super.cz (all with around 900 thousand - 1 million real users). Apart from that, Czech users spend most time on a website broadcasting online sport matches - on average two hours per user per month.

In June 2014 almost 11% traffic was generated by mobile devices

Josef Richtr, Research Manager, Gemius Czech Republic

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Page 21: Consumers go mobile in CEE

20

ESTONIA

We are glad that clients are investing more in mobile environment, where the ad clutter is relatively low and therefore qualitative parameters are high above average digital advertising levels. Mobile advertising revenue increase is exceeding our expectations on monthly basis.The growing mobile penetration builds a strong platform for location based advertising, gives additional targeting possibilities and allows to display technically very interesting solutions. In general, mobile allows digital advertising to continue grow.

In 2014 mobile advertising has started to show its full potential

Liis Ristal, Advertising Director, Postimees

Mobile page views growth

PC

Tablet

Phones

Source: gemiusRanking, Jan. 2011 - June 2014

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Asus

Samsung

Samsung

Sony

Apple

5%

9%

86%

100%

0%0%

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

10%

20%

0%

40%

60%

30%

50%

70%

10%

0%

20%

30%

40%

63%

50%

28%32%

6% 7%

35%33%

21%

23%

18%18%

Page 22: Consumers go mobile in CEE

Tablet Weekday

Tablet Weekend

21

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets

The year of the mobile has definitely come to Estonia. Compared to 2011, mobile devices share of page views has increased by more than twenty times (from 0.65 per cent in June 2011 to 13.81 per cent in June 2014). We are glad to see that advertising budgets are growing and mobile market is monetizing the new inventory. We are also proud of the fact that we are launching a multiplatform file including data about Real Users and usage by device type: mobile, tablet and PC. We are sure this will bring even more focus on mobile devices!What about the future? Even now mobile internet in Estonia has good coverage and decent speeds that are affordable. One of the biggest challenges is to monetize mobile users and their page views.

One of the biggest challenges is to monetize mobile users and their page views

Paap Peterson, Country Manager, Gemius Estonia

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Page 23: Consumers go mobile in CEE

3%

18%

79%

99%

1%0%

22

HUNGARY

The traffic source of online contents is changing as expected, due to the new trends on the mobile phone market set in motion after 2007. While the sales of classic PCs are in a slump, smartphones and tablets are getting stronger, with the rise of the cheap and more affordable variants. Telecommunications companies offer a large vaiety of data packages and are making it a focal point of their campaigns. This, combined with widely accessible free wifi networks, has led to a notable breakthrough on the mobile market. Beside the web services it also affects the entire application market. Although slightly behind the Western European trends, the domestic market has started to adjust to the post-PC era, the traffic running through telecommunications companies is growing in all major digital service segments.

The domestic market has started to adjust to the post-PC era

Mátyás Dobó, Telekom Hungary, Head of Product Development

Mobile page views growth

PC

Tablet

Phones

Source: gemiusRanking, 06.2012 - 06.2014

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Asus

Samsung

Samsung

Sony

Apple

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

35%

37%

18%

21%

17%14%

10%

5%

0%

20%

15%

30%

25%

40%

35%

10%

20%

0%

40%

60%

30%

50%

70% 68%

61%

17%

22%

5% 6%

Page 24: Consumers go mobile in CEE

23

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets

Smartphones play an increasingly important role in people's daily lives. By mid2014, mobile page views have reached 13% of total page views, which means that every 8th page view comes from a mobile device - including smartphones and tablets. Mobile devices are not only important in our everyday lives, but more so for the business segment as well. Mobile ad spending reached almost EUR 6.4 m in 2013, which is 5% of the digital advertising market (IAB ADEX 2014). So there is a growing need from advertisers and agencies to understand the market better, which was previously mostly the focus of mobile electronics and related companies.

Mobile ad spending reached almost EUR 6.4 m in 2013

Géza Ambruszter, Country Manager, Gemius Hungary

PC Weekday

PC Weekend

Phone Weekday

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Page 25: Consumers go mobile in CEE

24

LATVIA

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views.

The picture looks quite promising in terms of consumers usage and adaptation to mobile devices, but clients, on the other hand, have a more conservative attitude towards this trend. The budgets have seen a slight increase due to new ad publishers, for instance AdQuota with new and interactive advertisement formats. It does seem that a lot of clients are focusing only on current marketing plans and don't see the larger picture. In order to adapt to mobile later it will need to happen even faster and at more cost. Large portion of clients are not ready to invest in creating a separate mobile website, but are rather okay with a concept of creating a responsive/adaptive page for separate projects/landing pages. Apps are still a very risky area due to adaptation challenges faced by most brands. Another segment that is increasing in mobile is mobile search – Google has started to take a larger share of clients budgets due to official entree of YouTube and now their share has increased even more due to mobile search.

Mobile will continue to grow rapidly. This will be influenced by increase in smartphone penetration as well as larger coverage of LTE (4G) and affordable data plans. As mobile traffic will grow rapidly, this should encourage clients to experiment more in this area and actually consider mobile as part of their online strategy, which now applies in our case only to global clients.

Online business will largely benefit from this adaption if users are given the right content where and when the consumers want it. If brands are aware of user location, intent and context it's a powerful tool to grow brands business as even in this realm – content is king.

Ilja Olijevskis, Head of Digital, Mediacom

Mobile page views growth

PC

Tablet

Phones

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

LG

Prestigio

Samsung

Samsung

Apple

Apple

Content is king of mobile users' engagement

3%8%

89%

99%

1%0%

Source: gemiusRanking, Jan. 2011 - June 2014

10%

5%

0%

20%

15%

30%

25%

40%

45%

35%35%

46%

25%

17%

5%

10%

10%

20%

0%

40%

60%

30%

50%

70% 65%

47%

27% 36%

1%4%

new & interactive na new and interactive

Page 26: Consumers go mobile in CEE

25

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets

We believe that the data on internet consumption divided into different platforms (PC, mobile, tablet) will be a good basis for the further development of internet media market. Current audience data shows that internet traffic from mobile devices has gained considerable results – the most visited website from mobile phones in one month can reach the same audience as 7-8 most popular website visited from computers. This means that audience from mobile devices certainly should be taken into account. New, advanced solutions and options adapted for each environment should be offered. Latvia is one of the first markets where Gemius has implemented multiplatform in gemiusAudience research and where such data are provided. We are really proud to deliver these data to our customers and we already can see the effects. Internet audience share in three platforms – PC, phones and tablets opens new opportunities and gives internet media a chance to attract more advertisers. For example, websites who lag far behind the top visited websites (from traditional PC) show great engagement results from mobile devices. This opens new horizons and opportunities.

Internet traffic from mobile devices records considerable results

Linda Egle, Country Manager, Gemius Latvia

PC Weekday

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PhoneWeekday

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Page 27: Consumers go mobile in CEE

26

LITHUANIA

I think Lithuania was the first country in the world where mobile came in, because historically we had more than 100% penetration of mobile devices. Speaking about mobile data traffic it's just about to boom - fixed plans for data traffic from operators, websites adapting their contents to mobile or even creating apps, changing lifestyle for all of us. Ads are a part of mobile already, but we just need a little bit of time from customers - mobile is now where internet ads were in the middle of 1990s.

Mobile is there and it's transforming already. The future belongs to those who prepare for it today and we can already see it for such industires as wearables, healthcare or education. Facebook already makes more than 50% of all ads from mobile, Google dominates as No. 1 this market already (source: http://online.wsj.com). Even Amazon launched its own mobile phone for usage of its services. And there is more to come and we have a bright future ahead, I believe.

Ričardas Baltaduonis, Managing Director, Lrytas.lt

Mobile page views growth

PC

Tablet

Phones

Mobile is now where internet ads were in the middle of 1990s

4%14%

82%

99%

1%0%

Source: gemiusRanking, Jan. 2011 - June 2014

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Asus

Samsung

Samsung

Nokia

Apple

Top 3 tablet manufacturers by share of page views

39%

48%

21% 19%

19%

11%10%

0%

20%

30%

50%

40%

10%

20%

0%

40%

60%

30%

50%

70% 66%

54%

26% 33%

4% 4%

Top 3 phone manufacturers by share of page views

Page 28: Consumers go mobile in CEE

27

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

Hourly distribution of page views for PCs, phones and tablets.

Mobile audience is there already – some digital media channels reach 50%+ of their desktop audience in mobile. But mobile advertising is lagging in the advertisers' adoption rates for several reasons:1.Natural resistance of decision makers to change habits and implement “mobile-first” strategy framework. 2.No or little investments in proper development of m-websites makes it hardly viable to have mobile campaigns- no proper landing page usually limits the success of digital bought media. 3.Lack of audience data – this in part has been resolved by Gemius with introduction of mobile data in Audience researches. 4.Pricing of mobile inventory is still (inadequately) high, but media owners are already offering large discounts, so prices will definitely correlate to a lower side once advertisers will start measure the actual reach/frequency data properly and will start demanding efficiency from media channels.

Numbers show facts. During the last 12 months, we have been observing a significant increase in page views generated with mobile devices – the share of mobile page views increased from 8% to 18%. This means that not only the number of mobile devices is growing fast, but also it proves that people are spending more and more time browsing with their phones and tablets. And although publishers' income from mobile traffic doesn't show the same pace of growth, with such acceleration we should expect local market players to implement additional strategies during the next 12 months and monetize mobile traffic to a greater extent.I am very glad that this July Gemius officially launched the multiplatfrom audience measurement in Lithuania, because accurate statistics of phone and tablet users and their habits should fuel online business with additional insights and knowledge. Next step I expect to see is our market players making knowledge driven business decisions and continue to increase online media market share.

Mobile advertising is lagging in the advertisers' adoption rates for several reasons

The share of mobile page views increased from 8% to 18% during last 12 months

Tomas Čerkasas, Account manager, iProspect

Gryta Balseryte, Regional Manager for Lithuania and Latvia , Gemius Baltic

PC Weekday

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Hourly distribution of page views for PCs, phones and tablets

Page 29: Consumers go mobile in CEE

28*

MACEDONIA

I would say the year of mobile is already in Macedonia, but still not everyone is aware of that fact. It is here in as far as the growth in the number of mobile devices - including smartphones and tablets - and the positive increase in use of mobile internet is concerned, but the advertising budget is still far from that.In order to encourage advertisers to invest in mobile some steps need to be made. The priority is the content.

Macedonian market, mostly because of the its small size, needs more time to justify the need for mobile first content strategy – apps, services, news, etc. The publishers and developers don't see enough money on the market to justify any serious investment in this segment, so it is the chicken or the egg dilemma.

The future, in my opinion, will lean more towards development of mobile apps for business services provided by companies as additional tools for their clients and less movements in the media sector. However, I do see a market for some good mobile news apps from which the parent media brands will benefit.

Darko Buldioski, Founder & CEO, New Media Agency, Macedonia

Mobile page views growth

PC

Tablet

Phones

The year of mobile is already here but still not all are aware of that fact

2%

86%

90%

8%2%

Source: gemiusRanking, Jan. 2011 - June 2014

01.2013

01.2013

06.2014

06.2014

03.2014

03.2014

Apple

Asus

Samsung

Samsung

Sony

Apple

Top 3 tablet manufacturers by share of page views

27%30%

23%20%

16%14%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

9% 12%

16% 16%

64%

54%

Top 3 phone manufacturers by share of page views

12%

Page 30: Consumers go mobile in CEE

29

The year of mobile has come in Macedonia, but only in usage of mobile internet, not so much in mobile advertising. Given the fact that the digital market itself is not completely regulated and developed, with digital spending still being less than 5% (estimated), the mobile advertising is still just an insignificant fraction. Yet, if you compare the mobile advertising 2 years ago, we can conclude that there are changes towards more mobile advertising spending - but it is still insignificant, budget and percentage wise.

The future of the mobile internet is almost here, almost everyone that has a phone, together with internet access on it, with mobile internet being relatively cheap and accessible for majority of mobile users. Next step will probably be online mobile shopping. This is an area that has huge potential, and it is a trend that has already proven successful in other more developed countries, trend that we expect to come here very soon.

The huge potential of online mobile shopping

Nikola Peshev, Digital Manager, New Moment Agency, Macedonia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

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Phone Weekend

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Hourly distribution of page views for PCs, phones and tablets

Page 31: Consumers go mobile in CEE

30

MOLDOVA

The year of mobile came to our country only in terms of mobile internet accessibility; we have 3Gconnection, at great speed for less than 5-7 EUR per month. But the year of mobile hasn't come yet in terms of mobile device usage for internet connectivity. Moldova is more traditional in terms of internet consumption, most of the traffic being registered on PCs. So if we speak about mobile as a media channel and media market, we have some way to go. At the moment, the only publishers that monetize the Moldavian mobile traffic, are Google and Facebook, which have the option of mobile forms of ads already built in for all the markets. Local publishers still hesitate to build special ads formats for mobile versions, again, mostly because the traffic generated from mobile is still at a very low level in Moldova.

As we have seen already, Moldova in a certain moment started at least to follow the region’s trends, therefore the evolution of mobile in Moldova is a question of 1 or 2 years. The influence it will have can already be seen: taking into account that PayPal added Moldova to its operation country list and that the quality of mobile internet is high, this is a huge opportunity for online shops. Secondly, the growth will come from mobile campaigns’ activation by Advertisers, which are not using this option now, mostly due to lack of data in the amount of smartphone and mobile internet users (on smartphones and tablets). However, we will assist to an increase in interest to this channel and potential researches will be done by current MMI (TGI) provider company in Moldova, that can change the situation.

Dorel Samoila, Vice CEO VivaKi Moldova

Mobile page views growth

PC

Tablet

Phones

The year of mobile is already here but still not all are aware of that fact0%

100%

90%

1%1%

Source: gemiusRanking, June 2012 - June 2014

01.2014

01.2014

06.2014

06.2014

03.2014

03.2014

Top 3 tablet manufacturers by share of page views

30%32%

26%

31%

18%

13%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

7% 7%

18%20%

66%

64%

Top 3 phone manufacturers by share of page views

0%

NokiaApple Samsung

NokiaApple Samsung

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31

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

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3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

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4%

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8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

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3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

Phone Weekday

Phone Weekend

Tablet Weekday

Tablet Weekend

Hourly distribution of page views for PCs, phones and tablets

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32

POLAND

Polish mobile market grows with similar dynamics as in other countries of the region. One of the most important factors stimulating this process is the competence of Polish engineers. Creativity and quality of their products gains huge recognition in the other markets, including the US. Lots of Polish mobile applications, including hardware based projects, successfully compete in Appstores or on Kickstarter. In these two areas we are definitely at the European forefront. Global opportunities tempt best local companies, which in long term can affect the quality of products prepared exclusively for the Polish market.

On the other hand, Polish publishers are trying to select from their offer those pieces that can be delivered as applications. However, more than one million downloads per platform is still an achievement. What is more, the mobile advertising market has the slowest growth in segment due to the low awareness of people who plan campaign budgets. That problem can be solved by establishing common research standards for mobile web and application traffic, which will give decision-makers scale of mobile page views, but also retention and time that users spend on their mobile applications. After that problem is solved, the budgets will grow much faster than now.

The future, in my opinion, will lean more towards development of mobile apps for business services provided by companies as additional tools for their clients and less movements in the media sector. However, I do see a market for some good mobile news apps from which the parent media brands will benefit.

Global major challenge that is still before us is not just a matter of using RWD, HTML5 or native apps technology, but also the right proportion of content or service range provided on mobile terminal which now is used much often than desktop computer.

For all online industry itself it is extremely important to build the appropriate in-house competences on strategy level. It is always possible to outsource some development tasks but the providers have to be sure that they choose the right “mobile” strategy for their businesses. Especially because a lot of publishers will see drops of their revenues due to increased traffic from mobile devices that cannot display so many advertising forms as regular websites. Profits from mobile video ads can cover some of the losses but do not guarantee full coverage.

Also the e-commerce companies have to focus on mobile users too. Next few years will definitely show large migration from desktop to mobile, especially to tablets, which ensure great user experience in online shopping.By far the greatest opportunities are given to the providers of entertainment and mobile services. They do not have to worry about their future.

Tomasz Woźniak, co-owner and CEO, Future Mind

Mobile page views growth

PC

Tablet

Phones

Competences of Polish engineers stimulating Polish mobile market growth

3%

89%

99%

1%0%

Source: gemiusRanking, Jan. 2011 - June 2014

8%

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Apple

Lenovo

Samsung

Samsung

Sony

Apple

10%

5%

0%

20%

15%

30%

25%

35%32%

34%

20% 19%

10%

14%

10%

20%

0%

40%

60%

30%

50%

70% 69%

55%

18%

24%

0%5%

Page 34: Consumers go mobile in CEE

33

For years now we hear the opinions that the next year will belong to mobile, however, it is difficult to define precisely what exactly the "year of mobile" would mean. If the major determinant would be the popularity and prevalence of mobile devices – smartphones and tablets – then we should state that the "year of mobile" is already behind us. Over the past 2 years only, the percentage of traffic from mobile devices increased almost fourfold. On the other hand, if we analyze the situation in respect of the interest the advertisers have in mobile advertising and the unique opportunities it offers, it turns out that we still have to wait for the "year of mobile". Obviously, the advertising budgets spent on mobile rise steadily YOY, but they still represent only a small percentage of the online advertising pie - according to IAB / PwC AdEx Report, mobile advertising represents 1.1% of the online advertising market (data for 2013).The further growth of traffic from mobile devices will result in increasing interest of the advertisers, who will soon appreciate the unique possibilities mobile advertising gives. The clutter on the mobile platform is still quite insignificant comparing to other online channels and the mobile devices provide targeting capabilities which are not to be underestimated. All the time we observe the constant development of mobile technology which enables precise localization of smartphones' and tablets' users (e.g. using GPS or IPS technology such as Apple iBeacon) and so on. This opens up completely new possibilities for advertisers in reaching the target audience with their message in a particular time and place, for example by serving information on the store or restaurant promotion to the potential customers who happened to be nearby.

Advertisers will soon appreciate the unique possibilities mobile advertising gives

Joanna Skierska, Country Manager, Gemius Poland

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

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3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

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0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

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PC Weekday

PC Weekend

Phone Weekday

Phone Weekend

Tablet Weekday

Tablet Weekend

Hourly distribution of page views for PCs, phones and tablets

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34

ROMANIA

Mobile penetration is already big, and with +22 m active SIM cards, sounds like a +100% penetration... It is very important for digital advertising industry that one: the share of smartphones/tablets should be also increased – there are some estimations such as an average of 1 in 4 Romanians owning one, and two: to decrease internet mobile data costs. But both these issues already resolved by the telecom players who are coming with ever improving offers exactly in this area. So we can consider it done.Regarding mobile advertising, there is certainly a wish in the market to use its potential, and if clients meet the right specialists, campaigns can note great results and promote biggest share for the next one, and so on.

One more point here, related to research of how much mobile traffic is these days vs. desktops: there is still an impressive share of the desktops, but consider mobile versions as generally being really optimized. What I mean is that the traffic data volume in terms of kb just says that on desktops we consume “richer” content, not necessarily less time… The future of mobile internet is probably easy to predict, because entire future will be… mobile. There is already a big trend towards “mobility”, with desktops and even laptops manufacturers trying to find a way to stop the total decline, while losing ground to all the “super” (because also laptops are mobile, aren't they?) mobile devices of the moment. To provide a parallel, just think about Nokia's delay in venture to smartphones, and see how hard their mission is now - just to have an image of how fast things are moving… So the influence of mobile (internet also) will be more than big, becoming probably the core in few years. Because there is a media rule which says: we go where the audience goes… Is just one big thing we have to take care of: mobile devices are really personal…and this means that somehow they can become the greatest friend (of advertisers) but also with a big risk to become intrusive – I think that this will be the big challenge of the next years: to be visible, with engagement potential, but to succeed to skip the intrusive effect.

Romania has all the reasons to follow the mobile trend. Just think about all the telecom players' communication of these days , with so much focus on smartphones/tablets and data offers. With T-mobile also entering the market this September, we have all the premises to increase the reach and time spent. The next link in the chain are the brands, who just need to adapt their strategy, creative and so on, and start, if they didn't already, to communicate properly. So, Romania will certainly be part of this story.

Cosmin Otel, Digital Strategy Director,

Initiative Romania

Mobile page views growth

PC

Tablet

Phones

Mobile is a part of Romanians' lives

4%

91%

99%

1%0%

Source: gemiusRanking, Jan. 2011 - June 2014

5%

Top 3 phone manufacturers by share of page views

Top 3 tablet manufacturers by share of page views

01.2014

01.2014

01.2013

01.2013

06.2014

06.2014

06.2013

06.2013

Nokia

Asus

Samsung

Samsung

Apple

Apple

40%

45%

29% 27%

13% 12%

10%

20%

0%

40%

60%

30%

50%

70%

80% 79%71%

13%

20%

4%5%

10%

0%

20%

30%

50%

40%

Page 36: Consumers go mobile in CEE

35

I think that mobile has come in Romania, but not in a giant leap - rather through a steady growth in terms of mobile penetration, mobile business and time spent on mobile internet by users. However, in terms of advertising, ad spend on mobile is made mostly by pioneering initiatives rather than strategic focus. We do expect slow but steady growth in mobile ad spend in Romania. We perceive mobile more as a part of the development process experienced by the entire digital sphere rather than a medium competing with desktop. From this perspective, we think this brings opportunity to online business, opportunity that today is up for grabs, but tomorrow you will hardly find an uncrowded spot.

Mobile ad spends come mostly from pioneering initiatives rather than strategic focus

Victor Avram, Country Manager, Gemius Romania & Moldova

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

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8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

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0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

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4%

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8%

9%

PC Weekday

PC Weekend

Phone Weekday

Phone Weekend

Tablet Weekday

Tablet Weekend

Hourly distribution of page views for PCs, phones and tablets

Page 37: Consumers go mobile in CEE

36

RUSSIA

If under the statement “the boom of mobile internet” we understand the boom of consumption, then this trend has already started and has continued in Russia for 3-4 years already. It began once operators have established a decent mobile connection. With regard to mobile advertising boom, it is likely to bang next year. This year's budgets for mobile ads were dripping very carefully. The future of mobile depends on many factors, e.g. the speed of mobile internet or the quality of mobile production. In a nutshell – it is too early to make more precise predictions in this area.

Elena Pikunova, Director, Sales & Product Marketing, Opera Media Networks

Mobile page views growth

PC

Tablet

PhonesBoom in consumption, but not in mobile advertising

5%

91%

98%

2%0%

Source: gemiusRanking, Jan. 2011 - June 2014

01.2013

01.2013

06.2014

06.2014

Samsung

Asus

Apple

Samsung

Nokia

Apple

Top 3 tablet manufacturers by share of page views

27%

35%

30%

22%

10%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

80%

3% 4%

13%18%

79%

69%

Top 3 phone manufacturers by share of page views

4%

01.2014

01.2014

06.2013

06.2013

25%

Page 38: Consumers go mobile in CEE

37

The mobile internet boom in Russia has been already present for quite a long time. Our research shows that in June 2014 already 9% of all traffic was coming from mobile devices, which means 450% growth in comparison to January 2011. Main mobile operators in Russia (MTS, Beeline, Megafon, Tele-2) are actively promoting the popularity of mobile internet, providing for their customers good connection quality and great rates. Mobile devices become more and more available, and for the user purchase of personalized portable device is often a more effective investment in getting network access than purchasing a laptop or PC.

According to IDC data, within the 3rd quarter of 2013, Russia received nearly 2.71 million desktop and laptop PCs. Comparing to the same period last year, PC market decreased by 30.7% in terms of units and by 23.9% in terms of money. Earlier this year, MTS published a study of mobile retail market and consumption of telecommunications services in Russia in 2013. According to the study, the total mobile market in terms of money amounted to 230.7 billion rubles. The monetary growth of Russian mobile devices market in 2013 slightly dropped to 12.2% (15.6% in the same period of 2012). The number of smartphones sold in Russia in 2013 reached 19.7 million - 54.2% more than in 2012.

From the advertisers' point of view, we observe a growing interest in mobile advertising, but at the moment there is one important problem - the transparency of the market. Also some technical problems, which advertisers experience quite often, can be highlighted. According to the Digital Insights, within 140 sites which are in the top 100 of Russian advertisers rated by AdIndex, mobile or adaptive version of web-sites amount only to 62, which means that landing page is tailored only for PC. But advertisers from the automotive sector, telecom and communication outlets are much better adapted to the new realities - nine out of ten sites have the needed versions. It is worse in the Bank sector, HoReCa (hotels, restaurants, cafes) and retailers.Mobile internet will make serious adjustments in the structure of advertising budgets, as for many companies it will be greatly beneficial to use a personalized communication channel with users, and to have the ability to use geo-targeting, displaying advertising messages. The internet is becoming more and more personalized also for advertisers. In the first place comes the ability to properly and effectively build communication with each current or potential customer. Mobile for such needs - the best option.

Transparency of the market as the main barrier for mobile advertising development

Anton Melekhov, Country Manager, Gemius Russia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

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PC Weekday

PC Weekend

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Hourly distribution of page views for PCs, phones and tablets

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38

SERBIA

Mobile marketing recorded the fastest growth in the digital segment, but we can't talk about “the year of mobile“ as long as the percentage of this type of advertising remains token - in total digit, only few percent. From year to year, the growth will continue, but there is not going to be a “big jump“ until the basic problems are resolved, which at this point represent serious obstacles: the unification of the mobile traffic (apps, mobile sites, desktop sites, etc.) and the lack of relevant socio-demographic statistics. The first and the main problem is the lack of content for mobile platforms, and the fact that most sites are still not optimized for mobile.

Insufficient content is the eternal theme of the local market, and in case of mobile the situation is more serious. However, I expect this situation to be resolved soon, most CMSs allow quick and easy optimization for mobile platforms and media should take advantage of this chance. Also, I am more concerned about the tendency of the local media to show the mobile traffic as desktop traffic, because at the moment they can't monetize mobile as they wish.

Bojan Rendulic, Managing Director, Initiative FB

Mobile page views growth

PC

Tablet

Phones

Mobile marketing is growing, but there is not going to be a "big jump" until the basic problems are resolved

2%

84%

96%

4%0%

Source: gemiusRanking, Jan. 2011 - June 2014

01.2013

01.2013

06.2014

06.2014

Nokia

Asus

Samsung

Samsung

LG

Apple

Top 3 tablet manufacturers by share of page views

33%38%

16%

4%

9%10%

0%

20%

30%

40%

10%

20%

0%

40%

60%

30%

50%

70%

6% 8%

17%

22%

64%

53%

Top 3 phone manufacturers by share of page views

14%

01.2014

01.2014

06.2013

06.2013

26%

Page 40: Consumers go mobile in CEE

39

Large increase of mobile traffic in Serbia during the recent years is followed by theoretically large growth of mobile advertising budgets in percentages (200% YOY 2012 vs. 2011; 150% YOY 2013 vs. 2012), but in reality absolute mobile ad spend numbers are still quite small, making undeservingly low part of the total online ad spend. On the other side, investments that most of the publishers made in keeping the pace with the mobile trends development are significant, and publishers are now looking for ways to get a return and make mobile based profit. At this stage of development, we can say that the year of mobile has come only partially (in the terms of traffic and technology development), but not yet completely (in terms of monetization). Having current trends in mind, it is very likely that the year of mobile, in the full meaning of the word, will not happen before 2015.

The year of mobile, in the full meaning of the word, will not happen before 2015

Milan Kovačević, Country Manager, Gemius Serbia

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

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PC Weekday

PC Weekend

Phone Weekday

Phone Weekend

Tablet Weekday

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Hourly distribution of page views for PCs, phones and tablets

Page 41: Consumers go mobile in CEE

40

SLOVAKIA

Despite the fact that the mobile internet is very popular in Slovakia, it has not reached the peak yet. Mobile internet population amounts to only one third of the number of (standard) internet population. Technology as well as the speed of connection and opportunities are constantly changing, so the users' behavior is not stable as well. Probably this is also the cause of the fact that the volume of advertisement on mobile devices is still low. We expect that the benefits associated with the mobile advertisement – whether intensive use of social contact and sharing actual experiences or the advantage of the local reach - will come to the foreground of marketers' interest, since the accurate targeting the right people in the right time and the right place is the aim of every effective advertisement.

The future of mobile internet is in the hands of providers and producers of devices which can be used. Their quality and availability is constantly increasing, so the penetration will continue to grow in a fast pace as well, which can soon result in the combined use of several devices and later it can cause that certain groups of users can completely replace the traditional devices for obtaining information and for entertainment.

Marek Zámečník, Vice Director, Mediaresearch Slovakia

Mobile page views growth

PC

Tablet

Phones

The future of mobile internet is in the hands of providers and producers of devices

4%

83%

98%

2%0%

Source: gemiusRanking, Jan. 2011 - June 2014

13%

01.2013

01.2013

06.2014

06.2014

Sony

Prestigio

Samsung

Samsung

Apple

Apple

Top 3 tablet manufacturers by share of page views

30%36%

17%

8%

14%10%

0%

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40%

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40%

60%

30%

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3% 14%

26%

21%

48%43%

Top 3 phone manufacturers by share of page views

01.2014

01.2014

06.2013

06.2013

21%

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Mobile internet in Slovakia is a very fast growing trend. People are willingly switching from classical to mobile devices, which proves that 16% of all page views generated on websites measured by AIMmonitor research (gemiusAudience) in Slovakia comes from mobile devices: 12% from mobile phones and 4% from tablets. This is a relatively high number in the CEE region (4th place after Croatia, Serbia and Lithuania). The number of users visiting websites included in research from mobile devices has exceeded 1.2 million in June 2014, which means almost 35 thousand new users in comparison with May. Slovak internet users are generating by mobile phones and tablets nearly 275 million page views in a month and the highest number of page views was reached in categories: Social media, News portals and Homepages of portals. The highest share of mobile page views compared to traffic from PC is noted in two categories: Services, Maps, Travel schedules as well as Sport, where almost one third of page views is generated by mobile devices. Mobile internet users spend most time on Dating websites (4.5 hours per month), which is about 1.5 hours more than the time spent on the category which took the second place: Home pages.

More than 1.2 million users visited websites from mobile devices in June 2014

Ľuboš Ivanič, Country Manager, Gemius Slovakia

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Hourly distribution of page views for PCs, phones and tablets

Page 43: Consumers go mobile in CEE

42

SLOVENIA

We have seen a boost in mobile internet usage last year in Slovenia and in my opinion we will be seeing much more of it when prices will fall even more. Unfortunately, I do not see advertising budgets switching to mobile yet in this year.

I see the mobile internet mainly as a huge booster for different services that use location/time/ personal data combination. I see huge potential in terms of the possibility of big revenues for those services, as these can become a big game changer when used on mobile (so big, that people will want to pay big for them). On the other hand, I do not see a huge potential in advertising, as the screens are smaller there and honestly, Slovenia is not doing great on web advertising right now, let alone mobile.

That being said, I think that mobile advertising (in terms of the right data at the right moment) will be a game changer when we are all online 24/7 as this can be the ultimate bridge between the user and the brand. But I do not see that coming in Slovenia for the next year or so.

Zoran Savin, CEO, Mojedelo.com

Mobile page views growth

PC

Tablet

Phones

Mobile internet is a huge booster for different services that use location/time/personal data combination

4%

89%

99%

1%0%

Source: gemiusRanking, Jan. 2011 - June 2014

01.2013

01.2013

06.2014

06.2014

Apple

Asus

Samsung

Samsung

Sony

Apple

Top 3 tablet manufacturers by share of page views

48%47%

16%

13% 11%

10%

20%

0%

40%

60%

30%

50%

70%

4% 4%

24%

33%

67%

54%

Top 3 phone manufacturers by share of page views

7%

01.2014

01.2014

06.2013

06.2013

16%

10%

0%

20%

30%

50%

40%

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43

The year of mobile has already come to Slovenia, but only in terms of growing usage, not in terms of growing advertising budgets, as they are still remaining very small. I expect mobile internet to grow even more in the following years and also advertising budgets are going to reallocate more into mobile. Online businesses will expand on a mobile devices as access to internet is granted on almost every step. This will speed up the growth of online advertising budgets in general.

Mobile traffic is growing, but mobile ad spends remain small

Gregor Nisavic, Country Manager, Gemius Slovenia

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PC Weekday

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Tablet Weekend

Hourly distribution of page views for PCs, phones and tablets

Page 45: Consumers go mobile in CEE

Hourly distribution of page views for PCs, phones and tablets.

We have 9,5% mobile penetration, 51 mio 3G user and more than 26 mio mobile broadband user in Turkey. According to the research conducted by Millward Brown in Turkey, users spend 132 minutes on mobile in Turkey and 40% use 2 screens at a time. Even though penetration and time spent on internet is that high, the medium can not get a proportionate share from the advertisement spendings; according to IAB Adex report, the share digital gets from ad spendings is only 4% of total. The reasons lying behind this low share may be the advertisers’ not yet using the mobile destinations effectively as well as their not being familiar with the ad formats eligible to the nature of mobile.

If we talk about the global data of trends and formats that will help grow the medium; in 2013, 53% of the mobile data traffic has come from video and it is expected that this ratio would rise up to 69% in 2018. Parallel to this, mobile video ads are increasing... There expected an increase of 84% in mobile video as spendings in 2015.

The applications notifications at smartphone and tablets, native ad applications such as advertorial, sponsorships intergrated into site content and proximity marketing, integrated ad display with SKD code will have an important role on the growth of the medium.

Also, I believe that multiscreen advertisement will help the medium to get the deserved share.

Turkey go mobile

Rima Erdemir, Board Member and Marketing Council Chair, IAB Turkey

44

TURKEY

4*source: ICTA –Informations and Telecommunications Informations Technology.

4

Page 46: Consumers go mobile in CEE

45

In terms of investing in mobile display ads, our relationship status may be described as "flirting". Both smartphone penetration and 'digitalization' of marketeers have direct effect on media budgets, and we're still in the learning phase. As we progress to build effective mobile media experiences, the total mobile adspend will surely increase exponentially. Right now, majority of marketeers are choosing their traditional comfort zone over this experimental area. But we can also read the growth of Mobile and Video as a sign of high potential over the upcoming adspend. Advertisers or Agencies may also want to look into mobile search volumes to come up with new ideas and approaches, since it's one of the biggest reasons that affects mobile usage. Development of mobile internet will surely challenge any type of business. Right now, we're barely keeping up with digital ways of marketing. To overcome this, we need different HR approaches, challenge our traditional ways and appreciate people who are pushing the boundaries. As things are becoming more and more digital & real time, businesses will also have to be mobile agile and invest to influence their customers anywhere. This could affect both branding and top-of-mind topics that researchers have been focusing upon when it comes to online businesses. In short, it's a fast growing world and this is the perfect time to be in the eye of the digital storm.

Bora Başman – IAB Turkey Education

Committee Member

Mobile page views growth

PC

Tablet

Phones

Majority of marketers are choosing their traditional comfort zone

2%

86%

100%

0%0%

Source: gemiusRanking, Jan. 2011 - June 2014

12%

01.2013

01.2013

06.2014

06.2014

Apple

Asus

Samsung

Samsung

Nokia

Apple

Top 3 tablet manufacturers by share of page views

38%

51%

23%21%

12%

1% 2%8%

19%

87%

75%

Top 3 phone manufacturers by share of page views

01.2014

01.2014

06.2013

06.2013

26%

10%

0%

20%

30%

50%

40%

20%

0%

40%

60%

100%

80%

Page 47: Consumers go mobile in CEE

46

We all went to mobile, and we're not only talking about mobile phones and tablets, but also mobile advertising used by various companies to promote their products and services. The most significant reason of mobile advertising usage is due to the increase of mobile phone penetration growth rate in Turkey (30% by the end of the year). According to BTK reports published at the beginning of 2013, there were nearly 20 million mobile internet users in Turkey and this number has increased to 24 million in one year.Because of this growth in the mobile sector, companies and media planners prefer to use mobile channels for advertising much more than last year. To state it in figures, in 2012, advertising investments of companies were 36 million TL and by the end of 2013 it reached 44 million TL.

We can see both a growth in mobile ad spend and penetration in 2014. In Turkey, young generation see smartphones as a must. With the multiplatform measurement of Gemius, now mobile audience can be measured. This will be the catalyst of real mobile boom. Expect the unexpected! What about the future of mobile internet? Its growth will make a revolutionary impact at traditional press, for sure. On the other hand, online transactions and banking would be affected. People do not carry their PC's everywhere but our mobile devices, smart and tablets, are all the time with us. I believe that today's smartphones will be much smarter and personalized. Probably, in the future we will not carry a credit card or a car key. We should be just at the very beginning phase of mobile transformation.

Since the mobile sector's combined revenues from application usage and data services are growing fast, companies' transition to the mobile world is happening more quickly. For these reasons, nowadays a lot of companies, not only the online businesses, but also other various companies in Turkey, decide to sever part of their marketing budget to mobile advertising activities, because this technology allows them to get more detailed data and to reach the targeted audience. Also, it enables them to respond to the business and marketing strategy and customer engagement with greater ease and at lower costs than before. On the other hand, as we all know, using the mobile internet makes our lives much easier as a user. The range of mobile internet usage is increasing day by day. Because of all these reasons, we believe that in the future mobile internet usage will take more space in our lives and companies business strategies than today. We are proud of being a part of such an innovative sector.

2013 was the year of mobile

We are just at the very beginning phase of mobile transformation

Volkan Biçer, IAB Turkey Technical Board Member and the CEO of Mobilike

İdil Kesten, Country Manager, Gemius Turkey

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

Phone Weekday

Phone Weekend

Tablet Weekday

Tablet Weekend

Hourly distribution of page views for PCs, phones and tablets

Page 48: Consumers go mobile in CEE

47

UKRAINE

We are definitely seeing an increase in demand for mobile internet activity; however, the talk about recent boom is premature. The main factor hampering the proper growth is still the lack of high-speed mobile communication technologies (3rd and 4th generation), but do not forget about the very extensive network of Wi-Fi points, which currently replaces widespread high speed mobile coverage. Also, the mobile advertising market research shows that 90% of sites in the world do not have a mobile version, which complicates the work. The increase in demand connected with the set of indicators. In the first place - it is the growth of consumer characteristics (number of smartphone users, duration of mobile Internet usage, and mobile traffic on sites). Mobile internet usage, in turn, affects the advertisers, encouraging them to communicate with their audience in places with its concentration, which leads to an increase of the budget.

Mobile internet is the main trend of the global advertising market and Ukraine won't be an exception. However, for this purpose, in addition to the above reasons, we'll need to work on the expertise of the entire market: starting from the mobile internet advertising sellers and ending with advertisers – for all market players it should be very clear that the work with this segment is even more labor-intensive than online advertising and advertising campaigns themselves require specialized tools and radically different approaches to implement. In the future, we'll come to the situation that exists in the developed markets - mobile will become a separate direction, advertising holdings will allocate specialized departments, which will be separated from the internet departments.

Anton Kopytov, CEO Ukraine, Belarus,

Moldova, GroupM

Mobile page views growth

PC

Tablet

Phones

The main factor hampering the proper mobile internet growth is lack of high-speed mobile communication technologies

2%

95%

99%

1%0%

Source: gemiusRanking, Jan. 2011 - June 2014

01.2013 06.2014

Nokia

Apple

Samsung

40%42%

22%

18%12%

Top 3 mobile manufacturers by share of page views

3%

01.201406.2013

24%

10%

20%

0%

40%

30%

50%

Page 49: Consumers go mobile in CEE

48

Not only measuring the number of mobile audience is important, but also its socio-demographic profile. For sure, mobile audience differs from the PC one, so ad messages for this group should be more "personalized". Defining the socio-demographic profile of mobile audience will help to plan advertising budgets. Lately, big portals in Ukraine have started their preparation for mobile traffic growth and mobile advertising sales – they launched mobile versions of websites and developed applications. However, in order to get more of advertisers' interest in the mobile ads, the majority of publishers of the market should develop their business in this direction. Fortunately, this process has already begun and appropriate transition is just a matter of time.Meanwhile, recent events in Ukraine have strongly influenced the consumption of online content in general. The share of news consumption increased significantly both on PC and mobile devices. Ukrainian internet users go to bed and wake up with a mobile devices, day starts and ends with watching or reading the news. But the effect on the mobile advertising market, which can be caused by the controversial situation in Ukraine, is still hard to predict.

Recent events in Ukraine have strongly influenced the consumption of online content in general

Lesya Prus, Country Manager, Gemius Ukraine

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

0%

1%

2%

3%

4%

5%

6%

7%

8%

PC Weekday

PC Weekend

Phone Weekday

Phone Weekend

Tablet Weekday

Tablet Weekend

Hourly distribution of page views for PCs, phones and tablets

Page 50: Consumers go mobile in CEE

METHODOLOGICAL NOTE

AUTHORS

GEMIUS EXPERTS

GemiusRanking service, which is a collection of 22 websites presenting data based on Gemius internet sites traffic measurement conducted in Belarus, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, Ukraine, as well as the MENA region. The study includes rankings of browsers, search engines, operating systems, mobile devices and online population preferences in terms of technical parameters of the tools they use to browse the Web (screen resolution, color depth, or Flash version). The measurement excludes in-app traffic.)gemiusDirectEffect is a third-party quantitative study. Tracking scripts embedded in the codes of the campaign's creatives and on website are responsible for monitoring impressions, clicks on the creatives and visits. The system is able to track in-app advertisements. It can also optionally serve creatives which allows advertisers and agencies to optimize their advertising campaigns in real-time.

Natalia Płomińska, Asta Smagurauskaite, Elina Platonova, Olena Gadzhuk

Anton Melekhov, Country Manager, Gemius Russia

Géza Ambruszter, Country Manager, Gemius Hungary

Gregor Nisavic, Country Manager, Gemius Slovenia

Gryta Balseryte, Regional Manager for Lithuania and Latvia , Gemius Baltic

İdil Kesten, Country Manager, Gemius Turkey

Joanna Skierska, Country Manager, Gemius Poland

Josef Richtr, Research Manager, Gemius Czech Republic

Lesya Prus, Country Manager, Gemius Ukraine

Linda Egle, Country Manager, Gemius Latvia

Ľuboš Ivanič, Country Manager, Gemius Slovakia

Milan Kovačević, Country Manager, Gemius Serbia

Paap Peterson, Country Manager, Gemius Estonia

Vesna Gordon, International Sales & Marketing Director and Member of the Board of Directors, Gemius

Vibor Kalogjera, Country Manager Croatia and Bosna & Herzegovina, Gemius

Victor Avram, Country Manager Romania & Moldova

Yordanka Blazheva, Account Manager, Gemius Bulgaria

Page 51: Consumers go mobile in CEE

MARKET EXPERTS

Anton Kopytov, CEO Ukraine, Belarus, Moldova, GroupM

Bojan Rendulic, Managing Director, Initiative FB

Bora Başman – IAB Turkey Education Committee Member

Cosmin Otel, Digital Strategy Director, Initiative Romania

Darko Buldioski, Founder & CEO, New Media Agency, Macedonia

Dorel Samoila, Vice CEO, VivaKi Moldova

Elena Pikunova, Director, Sales & Product Marketing, Opera Media Networks

Ilja Olijevskis, Head of Digital, Mediacom

Kornelia Boiadjieva, Digital Account Executive, Universal Media, Bulgaria

Liis Ristal, Advertising Director, Postimees

Marek Zámečník, Vice Director, Mediaresearch Slovakia

Martin Cooper, Mobile Phone Inventor

Mátyás Dobó, Telekom Hungary, Head of Product Development

Mikhail Doroshevich, Online Media Consultant and Contractor, e-belarus.org

Nikola Peshev, Digital Manager, New Moment Agency, Macedonia

Pavel Ševera, Project Coordinator, SPIR/IAB Czech

Ričardas Baltaduonis, Managing Director at Lrytas.lt

Saša Škorić, Digital Manager, Omnicom Media Group Croatia

Sergej Skorohoda, CEO, Marketing.by project

Tomas Čerkasas, Account Manager, iProspect

Tomasz Woźniak, co-owner and CEO, Future Mind

Volkan Biçer, IAB Turkey Technical Board Member and the CEO of Mobilike

Zoran Savin, CEO, Mojedelo.com

Rima Erdemir, Board Member and Marketing Council Chair, IAB Turkey

Page 52: Consumers go mobile in CEE

INTERESTED IN MORE KNOWLEDGE ABOUT ONLINE WORLD?

CONTACT US!Gemius HQul. Postępu 18B 02-676 Warszawaphone: + 48 22 390 90 [email protected]

Gemius LithuaniaGedimino av. 50/2,LT-01110 Vilniusphone: +370 5 249 [email protected]

Gemius EstoniaRävala 6-405,10143, Tallinn phone: +372 6988 [email protected]

Gemius SerbiaProte Mateje 48Belgrade, SERBIAphone:+381 11 344 29 [email protected]

Gemius CroatiaGrada Vukovara 25410 000 Zagrebphone: +385 1 466 [email protected]

Gemius Romania12 Semicercului Street, 3rd floor1st District, Bucharest, phone: +402 132 33 [email protected]

Gemius SloveniaGospodinjska ulica 81000 Ljubljana, SLOVENIAphone: +386 40 553 [email protected]

Gemius Bulgaria58 Bulgaria Blvd.1680 Sofiaphone: +359 2 489 69 [email protected]

Gemius Polandul. Postępu 18B02-676 Warszawaphone: + 48 22 390 90 [email protected]

Gemius HungarySzéputca 5. I. emelet / 2. 1053 Budapestphone: +36 1 797 50 [email protected]

Gemius SlovakiaKutuzovova 5/A,831 03 Bratislava 3phone: +421 (2) 5363 [email protected]

Gemius Czech RepublicČeskobratrská 2778/1130 00 Praha 3phone: +420 222 713 [email protected]

Gemius Russiaул. Дружинниковская, д. 15123242, г. Москваphone: +7 926 166 77 [email protected]

Gemius LatviaĢertrūdes 66-43,LV-1009, Rīgaphone:+371 67 244 [email protected]

Gemius UkraineFranko Street 42 , of.11Kiev 01030phone: +38 (044) 234 52 [email protected]

Page 53: Consumers go mobile in CEE

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