MOBILE:Embrace It Or Be

Run Over By It

March 19, 2014

Mobile Is Eating The Internet

Source: Business Insider Intelligence

~60% Of Connected Devices Are Smartphones Or Tablets

Global Internet Device Installed Base

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

4,000,000,000

ComputersPersonal

Computers (Desktop And

Notebook)

Personal Computers

(Desktop And Notebook)

Personal Computers

(Desktop And Notebook)

Personal Computers

(Desktop And Notebook)

Personal Computers

(Desktop And Notebook)

Personal Computers

(Desktop And Notebook)

Personal Computers

(Desktop And Notebook)

Personal Computers

(Desktop And Notebook)

Personal Computers

(Desktop And Notebook)

SmartphonesSmartphones

SmartphonesSmartphones

SmartphonesSmartphones

SmartphonesSmartphones

Smartphones

Smartphones

Tablets

TabletsTablets

TabletsTablets

Tablets

Tablets

Tablets

Tablets

Tablets

Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Connected/Smart TVs

Wearables

WearablesWearables

WearablesWearables

Wearables

Wearables

Wearables

Wearables

Wearables

Nu

mb

er

Of

De

vice

s In

Use

(I1

00

0s)

Source: StatCounter, September 2013

20% Of Total Internet Traffic Is From Mobile Devices

Global Internet Traffic (Desktop Vs. Mobile)

Dec-0

8

Feb-

09

Apr-0

9

Jun-

09

Aug-0

9

Oct-0

9

Dec-0

9

Feb-

10

Apr-1

0

Jun-

10

Aug-1

0

Oct-1

0

Dec-1

0

Feb-

11

Apr-1

1

Jun-

11

Aug-1

1

Oct-1

1

Dec-1

1

Feb-

12

Apr-1

2

Jun-

12

Aug-1

2

Oct-1

2

Dec-1

2

Feb-

13

Apr-1

3

Jun-

13

Aug-1

30%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Desktop Mobile

Source: Gartner

Feature Phones Have Given Way To Smartphones

Global Mobile Phone Sales

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Smartphone Shipments Feature Phones

(1000s)

Especially In Developed Markets Like The U.S.

Source: comScore

J M M Ju S N J M M Ju S N J M M Ju S N J M M Ju S0%

10%

20%

30%

40%

50%

60%

70%

18%

62%

(as a

perc

enta

ge o

f th

e m

obile p

opula

tion)

U.S. Smartphone Penetration

Source: Gartner, IDC, Strategy Analytics, Company Filings

Tablets Continue To Cannibalize PCs

Global Internet Connected Device Shipments

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q130

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

PCsPC

Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

PC Ship-ments

TabletsTablet Shipments

Tablet ShipmentsTablet

ShipmentsTablet Shipments

Tablet Shipments

Tablet Shipments

Tablet ShipmentsTablet

ShipmentsTablet

Shipments

Tablet Shipments

Tablet ShipmentsTablet

ShipmentsTablet

Shipments

Tablet Shipments

Tablet ShipmentsTablet

Shipments

Tablet Shipments

Tablet Shipments

Tablet ShipmentsTablet

ShipmentsTablet

Shipments

(thousands)

2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Android45.8%

Android61.9%

iOS52.8%

iOS36.0%

Microsoft; 1.0% Microsoft; 2.1%

Global Tablet End User Sales (Market Share)

Source: Gartner, March 2014

And Android Continues To Gain Share

So how are people using their devices?

Source: Source: Experian Marketing Services, May 2013

They Use Smartphones For Communication, Entertainment

Other8%

Visit Websites14%

Games8%

Social Network-ing

15%Talk26%

Text20%

Email9%

Average Smartphone Owner’s Daily Time Allocation

Source: Cisco, 2013

They Watch TONS Of Video On Mobile

Projected Global Mobile Video Traffic

2011 2012 2013 2014 2015 2016 20170

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

Million

s of

Tera

byte

s P

er

Mon

th

Source: Google, August 2012

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

Average Minutes Spent Per Interaction By Device

TV PC/Laptop Tablet Smartphone0

5

10

15

20

25

30

35

40

45

50

43

39

30

17

Min

ute

s

Multiple Times A Week Daily 0%

10%

20%

30%

40%

50%

60%

70%

80%

62%

39%

67%

46%

2Q 2012 1Q 2013

% O

f R

esp

on

de

nts

Source: Nielsen, BI Intelligence

They Use A Smartphone While Watching TV

More Than Half Combine Smartphone + TV Routinely

This screen fragmentation is creating big challenges and

opportunities.

Specifically:Where’s the money

in all of this?

The money goes where the eyeballs go…

eventually.

TV Online Radio Mobile Print Other0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

45%

25%

17%

4%

9%

7%

44%

26%

16%

6%

8% 8%

43%

26%

15%

9%

7% 7%

42%

26%

14%

12%

6%5%

38%

20%

12%

20%

4% 5%

2009 2010 2011 2012 2013

Source: eMarketer (August, 2013)

Mobile’s Share Of The Media Pie Continues To Grow U.S. Consumer Media Consumption Share

Source: IAB 2013

More Attention = More Money

U.S. Digital Ad Revenue By Format

H1 2012 H2 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

48%43%

21%

19%

7%15%

7% 6%

6% 7%

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

0.50% 0.40%

Email

Rich Media

Sponsorship

Lead Generation

Digital Video

Classifieds

Mobile

Display/ Banner

Search

% O

f Tota

l D

igit

al A

d R

evenue

Print TV Web Radio Mobile0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

6%

42%

26%

14%12%

23%

43%

22%

10%

3%

Time Spent Ad Spend

Source: Mary Meeker, IAB, eMarketer

The Gap Between Mobile Spend And Time Spent Is Huge

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

Desktop Internet Mobile Internet

$3.50

$0.75

Source: comScore, Vivaki, Mobclix Exchange

And While Mobile CPMs Are Vastly Lower Than Desktop

Effective CPM, Desktop Vs. Mobile

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

Certain Formats Are Improving

CPMs For Selected Mobile Ad Platforms

Flurry video ads

Adsmobi video ads

LSN Mobile local ads

xAd local

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

$10.00

$5.00

$5.00

$3.50

No Placement Targeting Mobile News Feed Only Desktop News Feed Only Desktop News Feed + Right Hand Side Panel

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

0.07%

2.43%

1.21%

0.08%

Facebook Ad Performance By Click-Through Rate

Source: TBG Digital, Q3 2012

Native Advertising Is The Essential Social/Mobile Format

What does the environment look like for

premium publishers?

Source: comScore Media Metrix (December 2013)

Device Traffic Breakout Among Business And Tech SitesUnique Visitors By Device – Multi Platform (December, US)

FORBES

.COM

B

USINES

SINSI

DER.C

OM

W

all S

treet

Jour

nal O

nlin

e

M

ASHABLE

.COM

C

NNMONEY

.COM

B

LOOMBER

G.COM

T

HEVER

GE.COM

G

IZMODO.C

OM

W

IRED

.COM

E

NGADGET.C

OM

T

ECHCRUNCH.C

OM

E

CONOMIS

T.COM

0

5000

10000

15000

20000

25000

30000

Mobile Desktop

Business Insider Is Leading The Mobile Charge

% Of Uniques From Mobile (US)

Source: comScore Media Metrix (December 2013)

WSJ, Bloomberg, Forbes, Economist, CNNMoney

Feb-2013

Mar-2013

Apr-2013

May-2013

Jun-2013

Jul-2013

Aug-2013

Sep-2013

Oct-2013

Nov-2013

Dec-2013

0%

10%

20%

30%

40%

50%

60%

Business Insider Business Category Average Tech Category Average

Mashable, The Verge, Wired, Gizmodo, Engadget, TechCrunch

For Most, Mobile Growth Has Been Anemic

Uniques From Mobile (US)

Source: comScore Media Metrix (December 2013)

Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-130

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Business Insider Business Category Average Tech Category Average

Mashable, The Verge, Wired, Gizmodo, Engadget, TechCrunch

WSJ, Bloomberg, Forbes, Economist, CNNMoney

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tablet

Mobile

Desktop

Phone: 39%

For Business Insider, The Growth Has Been Explosive

Source: Google Analytics (January, 2014)

MOBILE + TABLET

50%

118%YoY Tablet Growth(Uniques)

Of All Uniques

240%YoY Mobile Growth(Uniques)

Desktop: 50%

Tablet: 11%

Nov 2009 January 2014

Business Insider Global Uniques By Device

Mobile’s Share Of Total Visits Continues To Climb

Source: Google Analytics (January, 2014)

Jul-1

0

Sep-

10

Nov-1

0

Jan-

11

Mar-1

1

May-1

1

Jul-1

1

Sep-

11

Nov-1

1

Jan-

12

Mar-1

2

May-1

2

Jul-1

2

Sep-

12

Nov-1

2

Jan-

13

Mar-1

3

May-1

3

Jul-1

3

Sep-

13

Nov-1

3

Jan-

140

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

0%

10%

20%

30%

40%

50%

60%

iPhone iPad Android Blackberry WindowsShare Of Total Visits

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

Driven by iPhone

Source: Google Analytics, Business Insider

Mobile Makes Weekends Media Time

11/1

/13

11/4

/13

11/7

/13

11/1

0/13

11/1

3/13

11/1

6/13

11/1

9/13

11/2

2/13

11/2

5/13

11/2

8/13

12/1

/13

12/4

/13

12/7

/13

12/1

0/13

12/1

3/13

12/1

6/13

12/1

9/13

12/2

2/13

12/2

5/13

12/2

8/13

12/3

1/13

1/3/

14

1/6/

14

1/9/

14

1/12

/14

1/15

/14

1/18

/14

1/21

/14

1/24

/14

1/27

/14

1/30

/14

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Desktop Visits Mobile Visits

Source: Google Analytics (January 2013)

Same For Off-Hours As Readers Juggle Their Devices

4:00 AM

5:00 AM

6:00 AM

7:00 AM

8:00 AM

9:00 AM

10:00 AM

11:00 AM

12:00 PM

1:00 PM

2:00 PM

3:00 PM

4:00 PM

5:00 PM

6:00 PM

7:00 PM

8:00 PM

9:00 PM

10:00 PM

11:00 PM

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Visits From Smartphone Visits From Desktop

Average Visits Per Hour

Source: Google Analytics (January 2014)

Evening Is Tablet Time

Visits From Tablet Devices By Hour Of Day

12:

1:0

2:0

3:0

4:0

5:0

6:0

7:0

8:0

9:0

10:

11:

12:

1:0

2:0

3:0

4:0

5:0

6:0

7:0

8:0

9:0

10:

11:

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Visits From Tablet

Mobile Is Transforming User Behavior

Source: Google Analytics

Mobile vVisits are shorter but more frequent

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-140

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

0

1

2

3

4

5

6

Smartphone Visits Overall Pages/Visits

How has Business Insider responded to the trend?

Consistent UX Across All Devices, Platforms

AppBrowser

“Mobile Parity”

Editors Tasked With Optimizing For Mobile

CMS has built-in “Mobile view” that allows editorial team to see how their work will appear on phones.

Should we be “mobile first?”

or “mobile only?”

NO.

Digital is multi-screen.

People Like Big Screens

We Need Distribution On All Platforms

Global Connected Device Shipments

We should be everywhere.

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

THE PROBLEM:Creative agencies continue to build in Flash, a format that doesn’t translate to mobile. Static images typically used to back up Flash are boring.

THE SOLUTION:Business Insider offers Flash to HTML5 conversion, allowing creative to flourish on all screens.

Capital One Spark Flash To HTML5 Banner Conversion

Tablet CTRs were

10X

better than standard gif and static ads.

Source: 1Internal Data

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

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

Mobile-Savvy Creative Boosts Engagement For Intel

THE CAMPAIGN:Touch-optimized HTML5 ad that integrated Intel messaging with Business Insider’s editorial coverage.

RESULTS:• 3X better interaction rate

than rich media benchmarks

• 2X better CTR on smartphones and tablets than standard IAB banners

Source: 1DoubleClick by Google Rich Media Display Benchmarks; 2Internal Data

So what’s next?

Cross-Device Targeting With Big Data

With device fragmentation (and lack of cookies), it’s difficult to reach the same readers as they move between devices.

Using our own and third-party data, we’ll soon be able to do so.

Same Reader

Same Reader

THANK YOU