2015/08

2015/06 2015/072015/052015/04

2015/09 2015/10 2015/11

Mobidays [KM Report]Article & Advertisement Contact : j3y_sj@mobidays.com

Mobidays is a specialized mobile marketing company,making every e�ort to have proper understanding of mobile market and to activate mobile eco-system.

In order to do so, Mobidays established [Mobile Advertisement Research Institute: MARI] in August 2014(blog.naver.com/mobidays01).

[Mobile Advertisement Research Institute: MARI] collects and studies domestic and overseas mobile related information and issues ‘VEUM’ (Very easy understanding of mobile) a main column, and ‘KM report’ a monthly trend report.

KM report is a report based on insight and information articles such as domestic / overseas mobile related investment news and market issues which provides mobile eco-system trend and issues.

We will keep working our best to release various and interesting news about mobile market in succession.Thank you.

Mobidays Team

1

1. Increasing mobile payments… but large sums are yet to come

2. 5 charms of Korean mobile pay

3. Ministry of Future Planning and 8 domestic universities raise IoT talents

4. Mobile ad markets preparing for the main game

5. Korea, China, Japan’s single market and Coupang’s challenge

1. The Millennial and Silver Surfer generation of the mobile era

2. Mobile ads leading the internet ad growth

3. Apple-Starbucks smiling thanks to mobiles

4. Korea, China, Japan’s mobile game market 3 way battle and India

5. Alibaba’s Big Deal, connecting videos and commerce

Index

Domestic Issues

Global Issues

2

Increasing mobile payments… but large sums are yet to come

5 charms of Korean mobile pay

Ministry of Future Planning and 8 domestic universities raise IoT talents

Mobile ad markets preparing for the main game

Korea, China, Japan’s single market and Coupang’s challenge

1

2

3

4

5

Domestic Issues

3

Increasing Mobile Payments… But Large Sums Are Yet to Come1

Source : Nov.16th, 2015. ZDNet "Mobile first in finance as well” .. Mobile banking continuously growing

0

5,000

2011 2012 2013 2014 2015

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

54.6% 6.3%

[2015 3rd quarterinternet banking size]

Weight of Mobile Banking Out of Internet BankingThe number of mobile banking users are exceeding Desktop based users, but large scale fund transfers are being made through internet banking. Mobile banking is usually used for small amount transfers.

(Unit : 1 billion KRW)

Total internet banking

Mobile banking

Desktop based internet banking

Number of usage: daily average 77.66 million

Mobile banking usageout of internet banking

Mobile banking usage sumout of internet banking

Usage amount: daily average 40 trillion 716.2 billion KRW

4

5 Charms of Korean Mobile Pay2

Source : Oct.27th, 2015. Maeil Business News Korea [Mobile Payments] Consumer patterns looked through mobile payments

25.7%13.3% 11.7%

10.3%Restaurants Convenience

storesLight food restaurants

Co�ee shops

SamsungPay

NaverPay

• released in Aug, 2015

• accessible through smartphone touch

• Samsung Pay payment weights

• released in June, 2015

• Pay, charge, save, transfer through IDs

• main user generation: 20s~30s(77%), females

• used for fashion, general foods, digital, daily supplies purchases

• Users who access it on a daily basis: 10%

Average payment amount per person

70,000 KRW

Average number of paymentsper person

1.77 times monthly

• main user generation in 30s(over 50%), males (86.5%)

• Users who access it on a daily basis: 10%

5

5 Charms of Korean Mobile Pay2

Source : Oct.27th, 2015. Maeil Business News Korea [Mobile Payments] Consumer patterns looked through mobile payments

Kakao Pay

SSG Pay

PAYCO

• released in Sept, 2014

• mobile payment service

• main user generation in 20s(46%), females(60%)

• used for simple snack and coupon purchases

• item most purchased during one day in 2014: Baskin Robbins Pint Gift

• released in Aug, 2015

• accessible through smartphone touch /pay through ID

• supplied by NHN Entertainment

• released in July, 2015

• mobile payment service

• supplied by Shinsegae Group

• usable in Shinsegae Group such as eMart and Starbucks

• serviced with money charge method, easy payment method, and mixed method

• useful for customers who often use Shinsegae a�liated companies

• o�ine payments possible at franchise stores

• payments possible through ID and password on online shopping malls

• linked with T-money, usually used for public transportations

6

Ministry of Future Planning and 8 Domestic Universities Raise IoT Talents3

Source : Nov.8th, 2015. Seoul Economic Daily An era of 4 million domestic IoT users

Source : Ministry of Science and Future Planning

Ministry of Future Planning organizes ‘SW major universities council’

The Internet of Things(IoT) users : 4 million 84,870 (in Sept, 2015)

• SW major universities’ management experience and results will be shared.

• The network of universities within and outside the country will be utilized.

Wearable device users

Vehicle control users

Tablet PC users

77,576

676,249

57,773

293,644Jan. 2015 Sept. 2015

734,339

563,686

GachonUniversity

KoreaUniversity

SogangUniversity

SungkyunkwanUniversity

SejongUniversity

AjouUniversity

KyungpookNational

University

ChungnamNational

University

7

Mobile Ad Markets Preparing for the Main Game Preparing to go public4

Source : Nov.12th, 2015. Mobi-Inside. [SimGoon’s Moai] Domestic mobile ad companies’ M&A, IPO preparation active… the reason for this?

Echo MarketingEcho Marketing is an online advertising agency and selected

Korea Investment & Securities Co.,

• Emphasis on mobile ad business (40% of 2014 sales occurred in mobile ads)

• Entry into Chinese market (Creation of China marketing team within company)

NBTNBT services the mobile lock screen ad platform ‘cash slide’ and is planning to go

public in 2016. • Investment for securing technology human resources (30% of NBT workers are intermediate-advanced engineers)

• Securing investment funds for entry into US, China, Southeast Asia markets (obtaining develop/manage/business human resources for each country)

IncrossAn a�liate company of SK Group, its business focuses mainly on mobile game publishing, media lab, and video ad network. It has been preparing to go public since the end of 2014.

• Mobile game publishing business will be expanded and will be connected with the mobile ad business.

8

Mobile Ad Markets Preparing for the Main Game M&A4

Source : Nov.12th, 2015. Mobi-Inside. [SimGoon’s Moai] Domestic mobile ad companies’ M&A, IPO preparation active… the reason for this?

• eNuri.com announced they will release a ‘mobile lifestyle commerce platform’ through M&A.

• eNuri.com is likely to secure the groundwork for mobile commerce through Shall We AD’s mobile ad platform technology and knowhow.

• By absorbing Nextapps’ technology and Korean market infrastructure, Metaps is attempting to increase their sales.

• Most of the Japanese mobile ad companies have grown to become large companies and as purchasing prices are high, attention is paid to Korean markets.

eNuri.com takes over the mobile ad platform Shall We AD

Japanese mobible ad company Metaps takes over mobile ad company NextappsMetaps secured 51% of Nextapps’ shares at about 200KRW.

9

Korea, China, Japan’s Single Market and Coupang’s Challenge5

Source : Nov.2nd, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] The single market of Korea, China, and Japan and those who are ready

• In the summit conference of Korea, China, and Japan, the 3 countries agreed and announced to cooperate for the creation of a digital single market.

• Cooperation in electronic commerce such as information share, cooperative study and training, other interactions in both public and private areas will be carried out between the 3 countries.

• SoftBank currently owns 51% of the share of Yahoo Japan. Yahoo Japan runs Yahoo Shopping in Japan.

• SoftBank is the largest shareholder of Alibaba, owning 34.4% of the shares.

• SoftBank invested 1.1 trillion KRW in Coupang in January, 2015.

• If Alibaba, Yahoo Shopping and Coupang cooperate, people will be able to shop on the same platform whether they are in Korea, China or Japan.

Korea, China, Japan’s Single Market Announcement at the Summit Conference

If the e-commerce of Korea, China, and Japan were to be united, SoftBank will be thought of first?!

SoftBank owns 51% of Yahoo Japan’s

Shares

1.1 trillion KRWinvested in Coupang

Yahoo Shopping run by Yahoo Japan

SoftBank owns34.4% of

Alibaba’s shares

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Korea, China, Japan’s Single Market and Coupang’s Challenge5

Source : Nov.8th, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] Coupang, will they be eaten by money? Or will they eat it?

• Coupang received a total investment of 1.5 trillion KRW from companies such as Softbank, Sequoia Capital, and BlackRock between last year and this year.

• The investment will be used for delivery personnel and distribution centers in order to increase the scale in the domestic market.

• The 15,000 Coupang-man employment plan for 2017 seems to be an announcement for\obtaining 38% of the e-commerce market.

Social Commerce Coupang held a press conference on November 3rdMain keywords: increase of Coupang-man employment (delivery personnel strengthening)

/ expansion of distribution centers

Increase ofCoupang-manemployment

about 3,500 currently

Year 2016(e)10,000

Year 2017(e)15,000

about 6,000currently

Year 2017(e)About 24,000

14 currently

Year 2017(e)21

increase ofdistribution centers and CS(Call Center) workers

Increase ofCoupang-manemployment

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12

The Millennial and Silver Surfer generation of the mobile era

Mobile ads leading the internet ad growth

Apple-Starbucks smiling thanks to mobiles

Korea, China, Japan’s mobile game market 3 way battle and India

Alibaba’s Big Deal, connecting videos and commerce

1

2

3

4

5

Global Issues

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The Millennial and Silver Surfer Generation of the Mobile Era1

Source : Nov. 19th, 2015. ZDNet "Korea, Silver opens up their wallets for ‘digital’ without hesitation”_eShopping. SNS ‘world best’

Source : TNS, Connected Life

Global

Asia-Pacific area

Australia

ChinaHong Kong

IndiaIndonesia

Japan

Malaysia

New Zealand

Philippines

Singapore

Korea

Taiwan

Thailand

Vietnam

3.22.8

2.1

3.92.8

2.2 2.51.6

3.8

2.23.1 3.4

2.9 2.9

4.2

Social media use46%

View videos42%

Online shopping12%

2.2

What is the Millennial generation?The generation born between early 1980s and early 2000s,and have accessed the Internet since adolescence and are thus skilled atusing mobiles and social network services.

The Millennial generation(age 16~30)’s global averagemobile usage time : 3.2 hours

The di�erent ‘Millennial’ mobile consume timesAge 16~30 in Korea spend 2.9 hours on mobiles daily.

How the ‘Millennial generation’ use mobile phones

The ‘Millennial generation’ in the Asia-Pacific areause their mobiles as so.

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The Millennial and Silver Surfer Generation of the Mobile Era1

Source : Nov. 19th, 2015. ZDNet "Korea, Silver opens up their wallets for ‘digital’ without hesitation”_eShopping. SNS ‘world best’

Global

Korea

2.1 hoursView videos

24 minListen to radio

12 minRead newspaper

1.8 hoursUse mobile phones

Online video /TV view Social Networking Online Shopping

45.7% 37.7% 16.6%

49.2% 23.8% 27%

What is the Silver Surfer generation?

[Silver Surfer generation’s online activity (Unit: %)]

It is a term that describes the elderly who are skilled at using smart devicessuch as smartphones.People aged 55~65 are part of the Silver Surfer generation.

Koreans aged 55~65 have 24 minutes longer mobile consume time compared to theglobal spectrum.

Generations older than the ‘Millennial’ are enjoying consuming traditional media as well.

Thanks to Korea’s developed internet and mobile environment,e-commerce is vitalized among the elderly as well.

15

Mobile Ads Leading the Internet Ad Growth2

Source : Oct. 23rd, 2015. ZDNet US internet ads, mobile-social “paired” power

(Source : IAB/Search Engine Land)

4.4 billion dollars16% of total internet ad market

53% growthon average yearly for

3 years from first half of 2012until first half of this year

Mobile display ads

4.3 billion dollars54% growth compared toprevious year

• The US internet ad market in the 2nd quarter of 2015 grew 22.5% compared to the previous year.

• Mobile ads, video ads, and social ads towed the internet ad market’s growth.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$6.2

$7.7$8.7

$10.3

$11.7

$14.3

$4.1

$5.1$5.7

$5.4

[US internet ad market size during the2nd quarter each year]

[Mobile ad sales in the first half of 2015] [Social media ad sales in the first half of 2015]

(Unit : 1 billion dollars)

15% growth onaverage yearly

8.2billiondollars

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Apple-Starbucks Smiling Thanks to Mobile3 4 reasons why iPhones are selling well

Source : Oct.28th, 2015. HPPC [4 reasons why iPhones are selling well by Tim Cook]

Apple records the highest performance ever in 2015 fiscal year 4th quarter (July~Sept)!!

1. There are still a lot of people with the old small screen iPhones. Many of these people will one day upgrade their phones to a bigger screen iPhone.

2. Number of users who switch from android phones to iPhones are increasing. 30% of the 4th quarter iPhone purchasers have been Google android phone users.

3. iPhones are playing their role as a premium device effectively in the Chinese market. The Chinese middle class currently have the ability to purchase iPhones.

4. The price of iPhones are sometimes up to twice as more expensive than other phones. They are indicated as luxury premium items and this is what appeals to the Chinese middle class.

팀 쿡 애플 CEO

“4 reasons why iPhones are selling well”

• number of iPhones sold in the 4th quarter : 48.40 million• Sales 51.5 billion dollars (22% increase compared to previous year)• 63% of total sales are from iPhone sales• Net Profit 11.1 billion dollars (31% increase compared to previous year )

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Apple-Starbucks Smiling Thanks to Mobile3 Starbucks preparing for a mobile innovation

Source : Nov. 6th, 2015. Bloter 21% of Starbucks’ 4th quarter Sales are from mobiles

Starbucks Sales

4 billion 90.11 milliondollars

SalesAbout

617 billion KRW

Mobile PaymentsMonthly average

1.7 million

Mobile Payment SumMonthly average10 billion KRW

Mobile Payments

1 billion 3 milliondollars

• Starbucks mobile payments take up about 10% of each stores’ sales.

• Over 5 million cases are occurring in mobiles each week globally.

스타벅스 CEO

“ When a mobile payment environment was created to allow

easy purchase of coffee, customers began to respond enthusiastically.

We, here at Starbucks, plan for a digital innovation that no other

retail stores have achieved.”

4th quarter of 2015

Starbucks Korea in 2014

18

Korea, China, Japan’s Mobile Game Market 3 Way Battle and India4

Source : Nov.6th, 2015. Asia Economy Daily The mobile game market size of Korea, China, and Japan is 51% of the entire world.

• A few games are dominating the entire market.

(The yearly sales of ‘Monster Strike’ by Mixi and ‘Puzzle & Dragons’ by Gungho are over 1 billion dollars)

• Games must be released through local app markets because there is no Google Play.

• Due to the large surface area of the country, marketing is di�cult without a local publisher.

• 60~70% of Sales must be paid to the local publishers and app market as a commission fee.

• The mobile game market of India is 416 million dollars (about 470 billion KRW).

• By 2018, it is expected to grow up to 1.2 billion dollars(about 1.36 trillion KRW) with the aid of 1 billion population.

51% of Global market

90% of Asian market

6.2 billion dollars( about 7.05 trillion KRW )

5.2 billion dollars( about 5.91 trillion KRW )

Western game companies find it di�cult to enter Japan and China

Mobile game market in India is rapidly growing

1.3 billion dollars( about 1.48 trillion KRW )

mobile game market size of Korea, China, and Japan

12.7 billion dollars(about 14.45 trillion KRW)

19

Alibaba’s Big Deal, Connecting Videos and Commerce5

Nov.10th, 2015. Mobi-Inside. [JaeSuk Yoo’s Twisting View] Alibaba and the Chinese YouTube meet… and the dream world of Ma Yun

Source : iResearch

Alibaba attempts to take over the Chinese online video platform YouKu Tudou

• Alibaba, who runs the largest electronic commerce platform in China,

is preparing to take over China’s largest video platform YouKu Tudou.

• Alibaba plans to spend a total sum of 4.35 billion dollars (about 5 trillion

KRW) to buy all the shares of YouKu Tudou.

Chinese video market size in 201536.8 billion Yuan(about 6.6751 trillion KRW)

50.2%growth compared to

previous year

Prediction of 201890.24 billion Yuan(16.3686 trillion KRW)

Chinese video ad market size in 201522.82 billion Yuan(4.1393 trillion KRW)

Prediction of 201854.03 billion Yuan(9.8005 trillion KRW)

20

Alibaba’s Big Deal, Connecting Videos and Commerce5

Source : Nov.10th, 2015. Mobi-Inside. [JaeSuk Yoo’s Twisting View] Alibaba and the Chinese YouTube meet… and the dream world of Ma Yun

Video View Induce purchase Move to purchase page Purchase

Users

Alibaba continuously invests in the online video market• Since last year, Alibaba is taking over and investing in entertainment/media companies such as China vision media group, Wasu Media, Shanghai Enlight.

A new business connecting videos and e-commerce• Since their merge in 2012, YouKu and Tudou had no clear business models that showed the reason for the merge and have been facing deficits.

• Alibaba is preparing to take over YouKu Tudou on a mid to long term perspective.

• Online video ads have a high residual rate and are easy to connect to commerce.

• Alibaba will introduce a new business that connects YouKu Tudou’s video and e-commerce.

As foreign online video services are facing di�culties entering China,

Alibaba will have large ripple effects if YouKu Tudou secures all broadcasting contents of global channels

and combines it with e-commerce.

21

Nov.16th, 2015, ZDNet "Mobile first in finance as well” .. Mobile banking continuously growinghttps://www.zdnet.co.kr/news/news_view.asp?artice_id=20151116111025

1. Increasing mobile payments… but large sums are yet to come

Oct.27th, 2015. Maeil Business News Korea [Mobile Payments] Consumer patterns looked through mobile paymentshttp://news.mk.co.kr/newsRead.php?no=1022668&year=2015

2. 5 charms of Korean mobile pay

Nov.8th, 2015. Seoul Economic Daily An era of 4 million domestic IoT usershttp://economy.hankooki.com/lpage/it/201511/e20151108141506117700.htm

3. Ministry of Future Planning and 8 domestic universities raise IoT talents

Domestic Issues

22

Nov.12th, 2015. Mobi-Inside. [SimGoon’s Moai] Domestic mobile ad companies’ M&A, IPO preparation active… the reason for this?http://www.mobiinside.com/kr/index.php/2015/11/12/korea_mobile_cashflow/

4. Mobile ad markets preparing for the main game

Nov.2nd, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] The single market of Korea, China, and Japan and those who are readyhttp://www.mobiinside.com/kr/index.php/2015/11/02/singlemarket-1/

Nov.8th, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] Coupang, will they be eaten by money? Or will they eat it?http://www.mobiinside.com/kr/index.php/2015/11/03/coupang-money/

5. Korea, China, Japan’s single market and Coupang’s challenge

Domestic Issues

23

Nov. 19th, 2015. ZDNet "Korea, Silver opens up their wallets for ‘digital’ without hesitation”_eShopping. SNS ‘world best’ http://www.zdnet.co.kr/news/news_view.asp?artice_id=20151119084614&type=det&re=

1. The Millennial and Silver Surfer generation of the mobile era

Oct. 23rd, 2015. ZDNet US internet ads, mobile-social “paired” powerhttp://www.zdnet.co.kr/news/news_view.asp?artice_id=20151023140029&type=det&re=

2. Mobile ads leading the internet ad growth

Oct.28th, 2015. HPPC [4 reasons why iPhones are selling well by Tim Cook]http://hooc.heraldcorp.com/view.php?ud=20151028000228

Nov. .6th, 2015. Bloter 21% of Starbucks’ 4th quarter Sales are from mobiles http://www.bloter.net/archives/243073

3. Apple-Starbucks smiling thanks to mobiles

Global Issues

24

Nov.6th, 2015. Asia Economy Daily The mobile game market size of Korea, China, and Japan is 51% of the entire world.http://view.asiae.co.kr/news/view.htm?idxno=2015110608282155331

4. Korea, China, Japan’s mobile game market 3 way battle and India

Nov.10th, 2015. Mobi-Inside. [JaeSuk Yoo’s Twisting View] Alibaba and the Chinese YouTube meet… and the dream world of Ma Yunhttp://www.mobiinside.com/kr/index.php/2015/11/10/alibaba-tudou-youku/

5. Alibaba’s Big Deal, connecting videos and commerce

Global Issues

25

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