Mobile Advertising Market - India February 2015
Executive Summary
Market Overview
Drivers & Challenges
Recent Developments
Global market size of mobile advertising stood at INR a1 bn in 20--, growing at a CAGR of a2% from the previous year Market size of mobile advertising in 20-- and 20-- was around INR a3 bn and INR a4 bn respectively in India It is in state1 which are statement1 across the country at element1
Drivers:
Challenges:
Rising Mobile Device Adoption and Colossal Wireless Subscriber Base Growing Demand for Rich Digital Contents High Affordability Introduction and Availability of Next Generation Cellular Networks
Affordability of Next Generation Mobile Networks Low Smartphone and Tablet Penetration in Rural Areas
Development1 Development2 Development3 Key Players
Competitive Landscape
InMobi Technology Services Pvt. Ltd.
Komli Media India Pvt. Ltd.
Ozone Media Solutions Pvt. Ltd.
PK Online Ventures Pvt. Ltd.
SVG Media Pvt. Ltd.
AdMob Google Inc.
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
2
•Macroeconomic Indicators •Introduction •Market Overview •Drivers and Challenges •Recent Development •Competitive Landscape •Strategic Recommendations •Appendix
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
3
Economic Indicators (-/-) GDP at Factor Cost: Quarterly INR tn c4 b4 a4
15 14 d1 c1 13 b1
c3 b3 a3
d2 c2 b2 a2
12 a1 11 Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly
% 2.0
p
1.5
s q
1.0
t r
0.5 0.0
Jun 2013 - Jul 2013
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
Oct 2013 - Nov 2013 4
Introduction Mobile Advertising (Ad) Overview • Mobile advertising is the act of using mobile devices such as cellular phones and Tablet PCs as a medium to deliver promotional messages Mobile advertising is a subset of mobile marketing but it is often used interchangeably
• With rising competition and growing need for customer acquisition, newer mediums and methods of advertising and promotion are becoming very crucial The overall aim is to reach the target consumer with the effectual product promotion in terms of interests, demographical characteristics and relevant geological location
• With exponentially growing number of active mobile devices and usage trends of mobile services and Value Added Services (VAS), India is rapidly becoming one of the most attractive market for mobile marketers and advertisers
Mobile Marketing Activities
Mobile Website of Company
Mobile Advertising
Mobile Application of the Company
Mobile Version of e-mail Newsletters
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
Location Based Services
Mobile Marketing Voice Communication
5
Solution1 and solution2 are the most popular services in India Market Overview – India (1/2) Revenue from mobile advertising stood at INR in 20--, growing at a CAGR of the previous year Market size of mobile advertising in 20-- and 20-- was around INR
and INR
from respectively
mobile advertising – Market Size & Growth INR bn a6
+y% a1
20--
a2
20--
a3
20--
a5 a4
20--
20--
20--
• mobile advertising market is in condition1 and it is still at a nascent stage in India • It is in state1 which are statement1 across the country at element1 • Text text text text text text text text text text text text text text text text text text text text text text text text text • Text text text text text text text text text text text text text text text text text text text text text MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
6
Drivers and Challenges – Summary
Drivers
Challenges
Rising Mobile Device Adoption and Colossal Wireless Subscriber Base
Affordability of Next Generation Mobile Networks
Growing Demand for Rich Digital Contents
Low Smartphone and Tablet Penetration in Rural Areas
High Affordability Introduction and Availability of Next Generation Cellular Networks
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
7
Recent Developments (-/-)
Development1
• text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Development2
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text
Development3
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text
Development4
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
8
Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants • Text text text text text text text text text text text text text text text text text text text text text text text text text Impact Medium Bargaining Power of Suppliers • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact Medium
Impact Medium
Competitive Rivalry • Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Threat of Substitutes • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact High Bargaining Power of Buyers • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact Low
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
9
Competitive Benchmarking (-/-) Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)
Operating Margin
% b1
SAMPLE Net Margin d1
c1 c2
a1 a2
d2
b2
0 company1
company2
company3
company4
• Company1 recorded operating margin of -%, higher than that of company2, company3 and company4 which recorded operating margin of -%, - and -% respectively • Thermax however recorded the highest net margin of -% higher than that of Ion Exchange, SPML and Va Tech Wabag which recorded net margins of -%, -% and -% respectively
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
10
Public: Domestic Company – Company 1 (1/4) Company Information
SAMPLE Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Head Office
Products and Services Category Sectors (EPC)
Products/Services
Key People Name
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
Designation
11
Public: Domestic Company – Company 1 (2/4)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Net Profit/Loss
Particulars
INR bn
INR bn s1
t1
s2 t2
s4 s3 t3 t4
0 2010
2011
2012
2013
Financial Summary
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios • The company incurred a net loss of INR - bn in FY 2013, as compared to net profit of INR - bn in FY 2012 • The company reported total income of INR - bn in FY 2013, registering a decrease of -% over FY 2012 • The company earned an operating margin of -% in FY 2013, a decrease of percentage points over FY 2012 • The company reported debt to equity ratio of - in FY 2013, an increase of % over FY 2012
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Key Financial Performance Indicators Indicators
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Value (17/01/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
Decline
12
Public: Domestic Company – Company 1 (3/4)
SAMPLE
Key Business Segments
Key Geographic Segments
Construction and Engineering
India
e1
e2
e3
e4
f1
f2
f3
f4
2010
2011
2012
2013
g1 0%
0% 2013
Overseas
Business Highlights
Description
News • Text text text text text text text text text text text text text text text text text text text text text text text
Overview
text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
13
SAMPLE
Public: Domestic Company – Company 1 (4/4)
S
W
O
T
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
14
SAMPLE
Private: Domestic Company – Company 2 (1/5) Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Ahmedabad
Year of Incorporation
Head Office Products and Services Category Products
Products/Services Key People Name
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
Designation
15
SAMPLE
Private: Domestic Company – Company 2 (2/5) Shareholders of the Company as on 28.09.2012
Name
Ownership Structure
No. of Shares held
Corporate Bodies
Foreign holdings
X X
30% Total
70%
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
16
SAMPLE
Private: Domestic Company – Company 2 (3/5) Financial Snapshot
Key Ratios
Total Income
Particulars
Net Profit/Loss
INR mn
INR mn u4 u2 u1
v4
v1
v2
u3 v3
2010
2011
2012
0
2013
Financial Summary
2011
2010
Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios
• The company reported total income of INR - mn in FY 2013, registering an increase of -% over FY 2012
Leverage Ratios
• The company reported debt to equity ratio of - in FY 2013, a decrease of -% over FY 2012
2012
Profitability Ratios
• The company earned a net profit of INR - mn in FY 2013, as compared to net loss of INR - mn in FY 2012
• The company earned an operating margin of -% in FY 2013, an increase of - percentage points over FY 2012
y-o-y change 2013 (2013-12)
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
Decline
17
SAMPLE
Private: Domestic Company – Company 2 (4/5) Business Highlights
Description
News • Text text text text text text text text text text text text text text text text text text text text text text text
Overview
text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
18
Private: Domestic Company – Company 2 – SWOT Analysis (5/5)
SAMPLE
S
W
O
T
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
19
Consumer Insights – Survey on mobile advertising (-/-) mobile advertising Usage and Preferences – Introduction & Methodology • Survey on mobile advertising usage and preferences was conducted across multiple social media websites and forums
Sample Size
x1
• The survey has been kept close ended to capture specific information from the respondents
Sample Sources
Social Media Websites and Technology Forums
• It has been conducted among a small group of people comprising home users, students, salaried professionals and other segments of the workforce
Survey Duration
z1 Weeks (Month1 – Month2 20-)
Quantitative Representation Used
Percentage
• The respondents mostly head from various urban and suburban areas of the country
Mobile Devices Possession Q: What type of mobile device(s) do you own? Response Options: 1) R1 2) R2 3) R3 4) R4 5) R5 6) R6 7) R7
R1
R2
R3
R4
R5
80 60 40 20 0 Note: Base is total no. of respondents
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
20
Strategic Recommendations (-/-) •Text text text text text text text text text text text text text text text text text •Text text text text text text text text text text text text text text text text text
Recommendation1
Recommendation2
• Text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text
• Text text text text text text text text text text text text
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
21
Appendix Ratio
Calculations
Ratio
Calculations
Operating Margin
(Operating Income/Revenues)*100
Current Ratio
Current Assets / Current Liabilities
Net Margin
(Net Profit / Revenues) *100
Cash Ratio
Profit Before Tax Margin
(Income Before Tax / Revenues *100
{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity
Total Liabilities / Shareholders Equity
Debt to Capital Ratio
{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio
EBIT / Interest Expense
Fixed Asset Turnover
Sales / Fixed Assets
Asset Turnover
Sales / Total Assets
Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital
(Net Income / Shareholders Equity)*100 EBIT / (Total Assets – Current Liabilities)*100 (EBIT / Working Capital) *100
Return on Assets
(EBIT / Total Assets)*100
Return on Fixed Assets
(EBIT / Fixed Assets) *100
Operating Costs (% of Sales)
(Operating Expenses / Sales) *100
Current Asset Turnover
Sales / Current Assets
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Working Capital Turnover
Sales / Working Capital
Interest Costs (% of Sales)
(Interest Expenses / Sales) *100
Capital Employed Turnover
Sales / (Shareholders Equity + Total Debt)
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
22
Sources of Information Secondary Research Print Medium
Primary Research Interviews
Leading Newspapers
Leading Industry Vendors
Telecom and Technology Journals / Magazines
Industry Stakeholders
Business Magazines
Industry Experts
Electronic Medium
General Consumers Online Social Media
Company Websites Government Websites / Resources
Online Telecom Magazines Online Technology and Gadget Journals / Articles Premium Databases
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
23
Thank you for the attention The Mobile Advertising – India 2015 report is a part of Netscribes’ Technology Series. For more detailed information or customized research requirements please contact:
Phone: E-Mail:
+91 22 4098 7600 info@netscribes.com
About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives.
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes. and prior permission is required for guidelines on reproduction.
MOBILE ADVERTISING MARKET IN INDIA 2015.PPT
24