Appsasia Monthly Report [March 2014]

2 Appsasia Insight Mobile Marketing Analytics by appsasia 1.1 Questions on CPI Effectiveness 1.2 Facebook Advertisement Effectiveness 1.3 Case Study of Facebook Campaign by appsasia Appsasia Monthly Report Global App Marketing Agency

3 Global App Marketing Agency Are CPI Effects Trustworthy ? 1.1 Questions on CPI Effects Download Boost by CPI Profit increase Download Boost Increase in rank More Exposure Download from rank Increase In Profit (Sales) Many advertisers are skeptical about the ability of CPI to boost marketing. In fact, as you see from many case studies, the average retention rate for CPI is only 2~3% . In addition, organic user acquisition via rank boosting is decreasing as the market matures. As the market becomes more competitive, CPI has less positive effect on ROI. More quantities needed f or a higher rank Android Ranking Algorithm change Fixed app usage pattern Why?

4 Global App Marketing Agency 1.1 Questions on CPI Effects Case 1 Tenbird : Wingbeat for Kakao (KOR) Entermate Flying Zoo for Kakao (KOR) Onnet Estimated CPI cost (1 Week) : $ 210K Estimated developer profit (1 Week) : Less than $ 5K Estimated CPI cost (1 Week) : $ 94K Estimated developer profit (1 Week) : Less than $ 4K Are CPI Effects Trustworthy? Most apps gained a high rank by CPI, however the rank did not affect DAU nor the revenue. 200 100 300 400 500 Jan 26 Feb 2 Feb 9 Feb 16 Feb 23 Mar 2 Mar 92014 1 200 100 300 400 500 Dec 2103 Jan 2014 Feb 2014 Mar 2014 1 Download Rank #2 Gross Rank #220 Download Rank #6 Gross Rank #242

5 Global App Marketing Agency 1.1 Questions on CPI Effects - Case 2 Most apps gained a high rank by CPI, however the rank did not affect DAU nor the revenue. Are CPI Effects Trustworthy? Estimated CPI cost (1 Week) : $ 250K Estimated developer profit (1 Week) : Less than $ 4K Estimated CPI cost (1 Week) : $ 100K Estimated developer profit (1 Week) : Less than $ 5K 200 100 300 400 500 Jan 5 Jan 12 Jan 19 Jan 26 Feb 22014 1 200 100 300 400 500 Dec 2103 Jan 2014 Feb 201 4 Mar 201 4 1 Beauty Idol (U.S.) Animoca (Japan) [Fantom Gate Senhime] mobage Download Rank #21 Gross Rank #278 Download Rank #9 Gross Rank #229

6 Global App Marketing Agency What Is the Alternative? 1.1 Questions on CPI Effect

Facebook CPC Global App Marketing Agency Worldwide MAU 1,230,000,000 Mobile Active Users 945,000,000 Facebook users in Korea 13,200,000 Mobile users in Korea 11,800,000 1.2 Facebook Advertisement Effect Strength of Facebook CPC Unlike banner ads, Facebook CPC based ads are exposed naturally between newsfeeds. Therefore, the share and spread effects are increased. Facebook CPI UA Cost(Non-incentive) Creation, uniqueness and targeting is highly important Casual Game $1.5 - $2 Mid-core Game $2 - $2.5 Brand ads are more expensive than Game ads (differs by CTR) The effects of Facebook CPC differ depending on the ad materials. Therefore, if the creation of the ads is optimized via testing, the non-incentive user acquisition cost can be reduced. Facebook Ad

Facebook AD Global App Marketing Agency Reference: Wishpond, Adobe Digital Index Facebook CTR 365% Increased Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4'13 31% 98% 192% Exposure Awareness Sharing/Spread Online AD Facebook AD Exposure Awareness Sharing/Spread Facebook CPC No Changes 1.2 Facebook Advertisement Effect Facebook ads can target by gender, age, location, and interests which enables the cost of ads are lower by average 35% and the effects of those ads are 31% higher compared to other online ads channels.

9 Global App Marketing Agency Optimization Cycle Optimization Continuously monitoring advertising results and editing the ads according to those results in order to determine whether the budget is being spent effectively and the desired results are being obtained. Goal of Optimization Targeting the most potential royal users Driving the best LTV Create the reasonable ROI and ROAS Secure the most suitable target group (Segmented targeting) Minimize meaningless advertisement costs by focusing the budget on the most effective channel. CPI AD Data Analysis Targeting Royal users Reasonable ROI Optimization 1.2 Facebook Advertisement Effect CPI Optimization via Facebook The goal of optimization is loyal user acquisition and driving the best ROI and LTV by finding the most effective channels.

1010 1.3 Facebook AD Case Study by appsasia Global App Marketing Agency Facebook CPC by appsasia Appsasia can produce effective and creative materials. With our exhaustive management including daily report and material test, campaigns drove high cost-effective ad result. Image A Image B AD Copy A AD Copy B AD Copy C AGE Gender Interest Page < Over 10 AD TEST before actual campaign > < Young Creators brilliant AD Copy > Appsasia Facebook ad management process Minimize the trial and error Produce 10 different ad options and use the most effective image Detailed Oversight Close monitoring including real-time response and daily report Drive positive result KPI for final CPI cost is $2.5 and close the campaign over costs.

11 Market Research Appsasia's Market Research 2.1 SNS Preference Per Geography 2.2 Global LTE Penetration Analysis 2.3 Mobile Device Analysis by countries Appsasia Monthly Report Global App Marketing Agency

2.1 Global Market Summary SNS Preference Per Geography America prefers Facebook Messenger and Skype, while Europe prefers whatsapp. In Japan and South East Asia, at the same time, Line is dominant. Global App Marketing Agency

2.2 Global LTE Penetration Analysis Reference: Juniper Networks, Strategy Analytics Global App Marketing Agency 1% 2% 3% 5% 8% 14% 19% 21% 21% 62% Philippines Russia Germany United Kingdom Canada Sweden United States Australia Japan South Korea LTE Penetration By countries (2nd half, 2013) 32% 29% 28% 28% 27% 23% 14% 7% 6% 5% Niger Burundi Madagascar DRC CAR Ethiopia CUBA North Korea Myanmar Eritrea Lower Mobile Penetration By countries (2nd half, 2013) 20% of world population is in LTE service area, and it is predicted that the half of world will be able to use LTE by 2017. Currently US, Japan, and Korea is occupying 80% of utilization rate. Global LTE Penetration

Korea Mobile Market Analytics 2.3 Korea Mobile Device Analysis Implication The highest LTE penetration in the world and dominant android market share Population 49M Smartphone penetration 79.5% GDP $ 1,197B Main OS Android Main Device Samsung,LG,apple,PantechEtx Reference : LTE Subscribe/Smart Phone penetration by Ministry of Science, ICT, and Future Planning, Strategy Analytics Global App Marketing Agency Reference: 2H 2013/ Google Think Insight, Global Stats Counter Korea LTE Penetration / OS Market Share LTE 72% 3G 28% Other 1%

US Mobile Market Analytics 2.3 U.S. Mobile Device Analysis Implication Third country of LTE penetration by 46% Population 316M Smartphone penetration 67% GDP $ 16,724B Main OS Android/iOS Main Device Apple,Samsung,HTC,Motorola,LG,Etc., Global App Marketing Agency Reference: 2H 2013/ Google Think Insight, Global Stats Counter 3G 81% U.S. LTE Penetration / OS Market Share Reference : LTE Subscribe/Smart Phone penetration by Ministry of Science, ICT, and Future Planning, Strategy Analytics Other 13%

Japan Mobile Market Analytics 2.3 Japan Mobile Device Analysis Implication Symbian and other OS has 20% of market share, therefore QA for various devices is essential. Population 127M Smartphone penetration 41% GDP $ 5,007B Main OS Android/iOS Main Device Apple,Sony,Samsung,Etc., Global App Marketing Agency Reference: 2H 2013/ Google Think Insight, Global Stats Counter LTE 26% 3G 74% Other 2% Japan LTE Penetration / OS Market Share Reference : LTE Subscribe/Smart Phone penetration by IMJ, Strategy Analytics

China Mobile Market Analytics 2.3 China Mobile Device Analysis Implication LTE is not propagated yet, assuming under 5% of LTE penetration Population 1,350M Smartphone penetration 66% GDP $ 8,939B Main OS Android Main Device Apple,Samsung,Huawei,HTC,Nokia,Lenovo,Etc., Global App Marketing Agency Reference: 2H 2013/ Google Think Insight, Global Stats Counter 3G 95% Other 7%China LTE Penetration / OS Market Share Reference : LTE Subscribe/Smart Phone penetration, Strategy Analytics **Lately, China starts to broaden 4G network, and actual LTE user is inferred to be higher than 5%

Taiwan Mobile Market Analytics 2.3 Taiwan Mobile Device Analysis Implication LTE penetration is assumed under 5%, Samsung Device has high market share Population 23M Smartphone penetration 55% GDP $ 484B Main OS Android Main Device Samsung,HTC,Apple,Sony Global App Marketing Agency Reference: 2H 2013/ Google Think Insight, Global Stats Counter 3G 95% Other 2%Taiwan LTE Penetration / OS Market Share Reference : LTE Subscribe/Smart Phone penetration, Strategy Analytics

C o m p a n y & S e r v i c e s Game Marketing Awards 2013