Ad Opportunities in Gaming

WARC DATA Global Ad Trends, July 2020

1. Mobile gaming offers a rich 3. Streaming is, for younger 5. e-sports is becoming opportunity to capture a broad audiences especially, the 'new established in Asia, with a spectrum of users who might not prime time’. Twitch alone draws second-gen evolution into even think of themselves as 1.9m – predominantly Gen Z – female-led, mobile competition gamers. Mobile gamers are casual viewers per day, mostly after 7pm. presenting new partnership players and skew older than Two-thirds of 18–25 year-old opportunities. Brand investment average; ‘gamer mums’ are gamers would rather play video is expected to reach $844m influential in purchasing decisions games or watch gaming content globally this year despite great and brand recommendation. than watch TV. economic turbulence. Media rights will also be core to future 2. Mobile gamers understand the 4. COVID-19-induced lockdowns revenue gains, and a flurry of value exchange of advertising. resulted in a spike in streaming merger and acquisition activity is Most are fine with viewing consumption, particularly on expected in the near term. advertising if it keeps the game Twitch. Within e-sports, however, free-to-play. Ads in mobile games original audiences consolidated have no discernible impact on while new viewers proved hard to churn, and are far more effective woo, this despite more content than banner advertising when being broadcast in lieu of a inserted programmatically. traditional sporting calendar. WARC DATA Global Ad Trends, July 2020

Gamers worldwide

Average gameplay session (h:mm)

Ads per mobile gaming session Mobile gaming Streamers e-sports

Generally free-to-play (F2P) Can be regarded as a form of Competitive gaming which draws games, which are ad supported influencer, they broadcast live or mass live and VoD audiences. but also generate publisher on-demand gaming content Games are traditionally PC- and revenue from in-app purchases through platforms such as console-based but there is a Mobile-only gamers (IAP) or e-commerce elements. Twitch, YouTube and Facebook new, growingLorem market ipsum for mobile Gaming. Top streamers amass e-sports, particularly in Asia. Ad formats include videos, followers in the tens of millions. banner and native ads. Reward- Brands can partner with teams or based videos, whereby a player Advertising opportunities here individual players through receives an in-game reward for encompass pre/mid/post roll sponsorship deals in much the Brand investment in e-sports (2020) watching a video ad, is popular video as well as sponsorships same way as conventional sport. and effective within the genre. and host-read ads. WARC DATA Global Ad Trends, July 2020

Age 10-15 16-20 21-25 26-30 31-35 35-40 41-45 46-50 51-65 (Years-old) (11.5%) (11.5%) (14.1%) (13.3%) (11.9%) (11.1%) (8.7%) (7.5%) (10.3%)

Male Female Gender (54.0%) (46.0%)

Income Low Middle High N/A group (26.2%) (37.5%) (31.4%) (4.9%)

Unemployed

Full-time Part-time Student Other Employment (57.1%) (9.0%) (9.5%) (6.3%) (18.1%)

Live with partner Living Live with partner and children Live with parents Lives alone Other and no children situation (41.5%) (20.5%) (12.6%) (10.4%) (15.1%)

0% 20% 40% 60% 80% 100%

Note: Based on consumer research across 30 markets, anyone who has played video games on PC, console or mobile in last six months. SOURCE: Newzoo © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020

Mobile gamers are casual players and skew older than average; ‘gamer mums’ are influential in purchasing decisions and brand recommendation.

Mobile gamers understand the value exchange of advertising. Most are fine with viewing advertising if it keeps the game free-to-play. Ads in mobile games have no discernible impact on churn, and are far more effective than banner advertising when inserted programmatically. WARC DATA Global Ad Trends, July 2020 Mobile gaming

Any device Smartphone PC/Laptop Games Console

100% 89% 2.9bn people play games on 80% 82% their smartphone, equivalent 66% 71% 60% to seven in ten (71%) internet 63% users. This is up from 63% in 40% 45% 30% 2015 – an absolute increase 27% of one billion worldwide. 20% 0% In total, 3.4bn people play 2015 2016 2017 2018 2019 games on any device, a rise of 662m since 2015. Yet the proportion of internet users gaming has actually fallen 84% 76% 86% 83% 73% 76% 56% 68% 70% 52% during this period, to 82%. 43% 40% 46% 39% 33% 21% 26% 44% 24% 31% While the fall mirrors wider device trends over recent years, it is also a reflection of the rise in the consumption of gaming content, with would- be gamers now watching others rather than playing themselves (see page 15). Note: Based on survey of internet users aged 16-64 across 46 different markets. Q: Which of the following do you use to play games? SOURCE: GlobalWebIndex © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming

34% Search 32% TV A full 29% of internet users (and 35% of gamers – 1.2bn) 23% Social media are mobile-only, rising to one Male 45% Female 55% in three in Asia Pacific and the Middle East and Africa. Israel 48% Search (46%), Singapore (44%) and Thailand (42%) record the Gen Z Millennial Gen X 37% Social media 17% 41% 34% highest domestic rates. 36% Consumer reviews Baby Boomers 8% This cohort skews older than the average gamer, and is 56% Free delivery comprised mostly of females Asia Pacific – 33% (55% vs. 46% for all gamers). MEA – 32% 43% Coupons and discounts North America – 26% 28% Next-day delivery They are more casual gamers Europe – 25% – playing during idle time (on Latin America – 21% the commute, for example) – and do not engage with 48% Be eco-friendly typical gaming culture; only 45% Be socially responsible one in five (13%) visits Twitch, for example. Instead, mobile- 43% Listen to feedback only gamers typically spend 35 minutes longer watching linear TV than other gamers. Note: Based on survey of internet users aged 16-64 across 46 different markets. SOURCE: GlobalWebIndex © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming

Play mobile games daily Describe themselves as 'gamers'

Many mothers are committed 100% gamers but do not relate to the term – this is particularly true in Western markets. 77% 80% 74% 75% 74% As a cohort, ‘Gamer Mums’ 68% are seen to be more receptive to advertising. One in four 60% 64% (26%) appreciates advertising that exposes them to something new, and one in 40% 46% 46% 44% five (21%) likes seeing ads from their favourite brand. 36% Rates among other are 20% 20% and 17% respectively.

This group is also influential; 48% offer advice to friends on 0% purchases (compared to 36% Total US UK France Germany of others), and a third (33%) recommend products on Note: Based on survey of women aged 25-54 who play mobile or video games and have at least one child at home under the age of 18 (n=4,002). social media (vs. 25% others). SOURCE: Activision Blizzard Media

Women Men

Of the 1.33bn gamers across 1–7 hours 59.6% 48.6% Asia, 38% are female – equivalent to 500m people 8–14 hours 19.4% 24.8% and growth of 18% from 2017. Penetration rates vary 15–21 hours 11.5% 12.4% across the region, from 45% in China, to 40% in Japan and 22–29 hours 3.6% 4.2% just 18% in India. 30+ hours 6.0% 10.0% Of the female gamers in Asia, 95% (473m) play on a mobile; 0% 10% 20% 30% 40% 50% 60% 70% they accounted for 35% of all mobile gaming revenue in the region last year, a share that is expected to rise closer to 39% in 2020. In China alone, Less than 1 hour 49.1% 50.9% women spent $6.6bn within mobile games last year. 1–3 hours 62.7% 37.3%

Aside from casual mobile 3+ hours 63.3% 36.7% gaming, women are also driving mobile e-sports in 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia, with female-only teams and leagues emerging fast. SOURCE: Google, Niko Partners © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming

Number of downloads 30 days after 200th case (millions) % change compared to 30 days before

600 120% Downloads of mobile gaming apps hit 847m in a month across the US and China 500 100% alone. This compares to 60bn 89% gaming app downloads globally during 2019. 400 80%

Data show that 96.8% of Chinese female mobile 300 60% 51% gamers spent more time playing during lockdown, and 36% 78.0% spent more money in- 200 32% 40% game than they had before. 24% 18% 17% Overall, mobile gaming 100 29% 20% recorded the greatest rise in 22% share of online time in China during lockdown. Almost nine 0 0% in ten Chinese respondents to US China Great France Germany Japan Italy South Spain a Niko Partners survey stated Britain Korea they would game for longer after lockdown as a result. Note: Chinese data is Apple App Store only, all other markets include Google Play. SOURCE: Sensor Tower

Ad revenue IAP revenue

EMEA 36% 64% They provide 42 cents in Americas 45% 55% every dollar on average, with APAC 46% 54% in-app purchases comprising China 65% 35% the bulk of publisher income. Japan 59% 41% China and Japan over-index. Korea 37% 63% Ads are contributing more to 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% the bottom line, however, and two in five (42%) publishers have no concerns this will cannibalise IAP income. 0–20% 21–40% 41–60% 61%–80% 81%–100% A third (32%) of publishers use an exchange to insert ads 2017 50% 20% 16% 7% 8% into their games, with half (50%) leveraging between two and five and 22% using six or 2018 42% 28% 16% 8% 8% more. Programmatic in-game ads perform much better than 2019 38% 25% 17% 11% 10% traditional banner advertising, and sharper ad measurement 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% will help the industry to evolve long-term. Note: Average across all game types. n = 284 publishers. IAP is in-app purchases. SOURCE: DeltaDNA © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming

More than two thirds (68%) of Reward video – 85% Reward video – 76% publishers use one or more Interstitial – 47% advertising format in-game, Interstitial – 63% up from 56% in 2018. A third Banner– 38% Banner– 28% use three or more. Playable – 18% Offer wall – 21% Native – 13% Playable – 20% The most common format is a Offer wall – 11% Native – 5% reward video, whereby the player receives an in-game boost as an incentive to complete a video ad. This format is largely unique to mobile gaming, but its adoption and the subsequent ‘gamification’ of apps in the fitness and dating sectors is an emerging trend.

Gamers understand the value exchange; 57% of are OK with advertising if its keeps the Note: n = 284 publishers. A hyper-casual game is a mobile video game which is easy-to-play and features a very minimalistic user interface. A casual game is targeted at a wide, mass market audience, and generally has simpler rules, shorter sessions, and requires less learned skill. Mid-core games are game free, rising to 70% more complex than hyper-casual and casual games, requiring players to make time to play, rather than playing opportunistically or sporadically. among Americans. Hardcore games require advanced skill and are played in longer sessions. SOURCE: DeltaDNA © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming

Without ads With ads

Day one Mobile gamers see 3.7 ads per session on average, Day seven though volumes are often higher than this across hyper- casual and casual titles. Day 30

The most common concern 0% 5% 10% 15% 20% 25% 30% 35% among publishers is that too many ads will increase churn, SOURCE: Unity yet Unity finds that player retention is actually slightly higher among games with ads. Increased player churn Facebook research suggests Lower levels of player enjoyment ads do not detract from enjoyment either – another Potential loss of IAP revenue common concern. Indeed, Lower eCPM certain formats may heighten Reduced store ratings the experience: having the ability to decide whether to A drop in ad fill rate engage or not in watching the 0% 5% 10% 15% 20% 25% 30% 35% ad results in a 10–15% uplift SOURCE: DeltaDNA in a game's app store rating. © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020

Streaming is, for younger audiences especially, the 'new prime time’. Twitch alone draws 1.9m – predominantly Gen Z – viewers per day, mostly after 7pm. Two-thirds of 18–25 year-old gamers would rather play video games or watch gaming content than watch TV. WARC DATA Global Ad Trends, July 2020 Streaming

48% Search 38% TV

Male 55% Female 45% 35% Social media Streamers can be seen as a Male 65% Female 35% specialist form of influencer, and the usual playbook for 16-24 – 41% brand partnerships will apply. 25-34 – 35% 58% Search Millennials35-44 – 30% 50% Social media As with other influencers, 51% 45-54 – 21% streamers deliver audiences 55-64 – 11% 46% Consumer reviews ranging from a few thousand to tens of millions, but in any Asia Pacific – 38% case they command a strong Latin America – 31% 60% Free delivery affinity with their audience. North America – 30% 48% Coupons and discounts MEA – 30% Brand collaboration is already Europe – 27% 38% Next-day delivery common – Mastercard, Chipotle, HTC and Dr. Pepper all have direct associations with top Twitch streamers. 56% Eco-friendly 56% Socially responsible GlobalWebIndex finds that the 56% Listen to feedback most distinctive brand advocacy motivation among streamers is to enhance their Note: Based on survey of internet users aged 16-64 across 46 different markets that have watched a live game stream in the last month. reputation and status. SOURCE: GlobalWebIndex © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Streaming

Facebook Gaming Mixer Smashcast Twitch YouTube Gaming

Amazon-owned Twitch is the 1,800 dominant platform, averaging 1,600 846.9m hours of gaming content viewed per month in 1,400 2019. This is more than double all other major 1,200 platforms combined. 1,000 The COVID-19 lockdown drove Twitch consumption to 800 new highs, and while most of the surge has been retained, 600 total hours are now trending downwards as lockdown 400 conditions ease. 200 Tencent is looking to disrupt the landscape with the launch 0 of Trovo – an analogous

platform to Twitch – in the US

2020-03 2020-04 2020-05 2019-02 2019-03 2019-04 2019-05 2019-06 2019-07 2019-08 2019-09 2019-10 2019-11 2019-12 2020-01 2020-02 2020-06 this year. The move comes as 2019-01 Microsoft’s Mixer closed in Note: No YouTube data for June due to a change in algorithm. July 2020 due to poor uptake. SOURCE: Arsenal.gg © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Streamers

Streams on Amazon-owned Twitch draw 1.9m viewers per day, each watching 3.4 hours of content. ‘Just chatting’ – a catch-all term for streams in between gameplay – is the most popular content type; it allows viewers to interact with the host via chat messaging, building affinity.

Ancillary research shows that two in three (67.5%) 18–25 year-old gamers would rather play video games or watch video game content than watch TV. The rate is the same among 26–35 year-olds (66.8%) and remains high among 36–45 year-olds (59.6%). Only among those aged 46 and over does the Note: Darker segments denote greater activity. preference shift to TV. SOURCE: Arsenal.gg © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Streamers

Gaming 0.078% People & blogs 0.061% Eight in every ten thousand viewers of gaming content go News & politics 0.060% on to comment on the video – Science & technology 0.058% the highest engagement rate across all YouTube content Education 0.058% types. These videos also How-to & style 0.055% garner the most likes, at a rate Travel & events 0.049% of 5.5 viewers in every 100. Pets & animals 0.048% These above average Non-profits & activism 0.048% engagement rates speak to the affinity audiences have Autos & vehicles 0.045% with gaming influencers. Entertainment 0.044% Brands looking to work with Comedy 0.042% these streamers – either through sponsorships or Sports 0.036% host-read ads – should ensure Film & animation 0.033% the partnership feels genuine. Music 0.018%

Determining ROI from an 0.00% 0.01% 0.02% 0.03% 0.04% 0.05% 0.06% 0.07% 0.08% 0.09% influencer campaign remains a challenge, however. Note: Based on analysis of 116 million videos on 104,899 YouTube influencer channels across 180 different countries. SOURCE: InfluencerDB, YouTube Benchmarks Report: March 2020

e-sports is becoming established in Asia, with a second-gen evolution into female-led, mobile competition presenting new partnership opportunities. Brand investment is expected to reach $844m globally this year despite economic turbulence.

Western markets are lagging and new audiences proved hard to woo during lockdown. Media rights will be core to future revenue gains, and a great deal of merger and acquisition activity is expected as investors vie for control. WARC DATA Global Ad Trends, July 2020 e-sports

48% Search 38% TV

Male 61% Female 39% 35% Social media More than one in four (27%) Male 65% Female 35% male internet users has watched an e-sports 16-24 – 27% tournament in the last month, 58% Search 25-34 – 20% equivalent to 554m people. Gen Z Millennials 35-44 – 14% Gen X 50% Social media The rate among females is far 26% 51% 45-54 – 14% 21% lower at 17% (349m), placing 46% Consumer reviews 55-64 – 13% the total audience at just over 900m viewers worldwide. 60% Free delivery Penetration is highest in Asia at almost one in three (30%) Asia Pacific – 30% 48% Coupons and discounts internet users, and uptake is Latin America – 20% 38% Next-day delivery greatest among 16–24 year- MEA – 14% olds. Ancillary data from Europe – 14% Limelight Networks show that North America – 13% gamers within this age cohort 56% Eco-friendly watch 6:19 (h:mm) of e-sports 56% Socially responsible content a week on average, 56% Listen to feedback over an hour longer than they spend watching traditional sporting content (5:10). Note: Based on survey of internet users aged 16-64 across 46 different markets that have watched an e-sports tournament in the last month. SOURCE: GlobalWebIndex © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 e-sports

Watching more Just started

35% Just 3% of adults said they started watching e-sports 30% during April, when many markets were at the height of the COVID-19 outbreak. 25% Instead, existing viewers were consuming more – this was 20% true of one in ten on average. 15% Newzoo finds that only 45% of all e-sports viewers can be 10% regarded as enthusiasts (those who watch frequently 5% and interact with content), while the majority (55%) are

occasional viewers. 0%

Italy

UAE

CAC

Peru

India

Chile Spain

Almost three in five (58%) China

Poland

France

Canada

Belgium

Sweden

Average

Portugal

Australia

Denmark

Germany

Colombia Indonesia

enthusiasts are located in Argentina

Switzerland South South Korea Asia, per Newzoo, while South Arabia Saudi Korea, India and Indonesia recorded the highest uptick in Note: Based on survey (n=845 per market, on average) representative of populations aged 18+, April 2020. CAC is Central America and Caribbean. consumption rates in April. SOURCE: McKinsey & Company © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 e-sports

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

100% 9% 7% Practitioners believe brand spend will be the key driver of 14% 80% 18% 17% e-sports growth in the coming 19% years, but also expect venture capital firms to up investment – 25% 60% 26% the sign of a maturing market. 29% The US and China are seen to 25% offer the best investment opportunities at present. 40% 22%

Foley notes that as publishers 51% 28% work to expand the reach of 20% 41% their games – and as traditional 24% television networks seek to tap into ad revenue around gaming 11% 0% leagues – interest in media 2018 2019 2018 2019 rights deals will rise. Almost two in three (62%) practitioners Advertising and sponsorships Media rights believe broadcasting will be the area in which most M&A Note: Q: Rank the following from 1 being the area that will account for the greatest amount of growth the e-sports industry experiences over the next activity will occur in 2020/21. year to 5 being the area that will account for the least growth. Other options not shown above. n = 204 SOURCE: Foley & Lardner LLP © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 e-sports

Sponsorship Advertising

Brand investment is expected 1,250 to rise in spite of economic 1,084.3 (+11.3%) turbulence this year, with the 974.3 vast majority (62.8% in 2020) (+15.5%) 1,000 of money directed towards 843.9 255.3 sponsorships. Over half of (+5.4%) 768.0 (+9.9%) 242.3 investment is made in Asia. (+20.9%) (+5.9%) 750 635.0 228.9 Advertisers looking to work in (+50.6%) 225.0 (+1.7%) this space should ensure (+8.7%) brand integration feels 421.6 207.0 organic and authentic, and 500 (+51.1%) (+33.3%) 829.0 that any messaging does not 732.0 155.3 (+12.4%) interfere with gameplay. (+19.0%) 279.0 (+26.6%) 615.0 543.0 (+13.3%) 250 428.0 (+26.9%) 122.7 Sponsorships can be (+60.7%) 266.3 rewarding, as successful (+70.4%) execution can ultimately turn 156.3 gamers into brand advocates. 0 But brands must also 2016 2017 2018 2019 2020(f) 2021(f) 2022(f) understand individual games Note: Advertising is predominantly spot during breaks in live broadcast. and the lexicon around them. SOURCE: Newzoo, WARC Data

WARC DATA Global Ad Trends, July 2020

-8.1% $563bn +4.9% -3.5% -8.6% Growth Spend Growth US growth China growth forecast forecast forecast forecast forecast 2020 2020 2021 2020 2020

WARC forecasts in May project global advertising spend to fall by 8.1% to $563bn this year. This is a decline of $50bn from 2019’s level 15% but an absolute downgrade of $96bn when compared to WARC’s previous forecast of 7.1% growth made in February. 10%

The sectors most badly affected by COVID-19 are also those cutting 5% adspend the most this year. Travel & tourism will fall by almost a third (31.2%), with leisure & entertainment (-28.7%) and financial services 0% (-18.2%) also markedly down. -5% Traditional advertising formats are expected to see steep cuts, declining 16.3% this year, with TV down 13.8% and OOH by 21.7%. -10% Social media (+9.8%) is likely to be the strongest performer. -15% Among key markets, India and the US are expected to perform best while Brazil, Italy and South Africa will see the biggest falls in spend.

Note: WARC uses variable exchange rates across all markets and periods. Chart is % change in US$ global advertising spend. SOURCE: WARC Data, Adspend Database

430m 111.2% 43% $6.2bn $314m Orders Orders Indonesia’s GMV E-commerce Q1 2020 growth share of Q1 2020 revenue Q1 2020 total orders Q1 2020

The number of orders placed on e-commerce platform Shopee more than doubled to reach 430m in Q1 2020, with an increase of 111.2% representing the third consecutive quarter of triple-digit growth. The GMV Orders company also reports that orders grew by over 140% in April 2020. 250% Gross Merchandise Volume (GMV), the value of platform sales, saw 200% growth quicken from 64.8% to 74.3% in Q1 2020, reaching US$6.2bn.

150% Quicker growth in orders than GMV suggests consumers have 111.2% shifted to buying lower-priced items more often. 100%

Shopee also reports that over 40% of Indonesian orders in April were 50% 74.3% paid using its parent company’s mobile wallet service, SeaMoney. 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020

Note: Gross Merchandise Volume (GMV) is value of orders, includes shipping and other charges. Orders can include multiple items and returns. SOURCE: Sea

-22.7% $562m 12.0% 186m 50m Ad revenue Ad revenue Daily user Daily users Users using growth Q2 2020 growth Q2 2020 the Topics Q2 2020 Q2 2020 feature

Twitter reported its largest ever increase in daily users in Q2 2020, growing by 12.0% quarter-on-quarter to a total of 186m. Over 50m users also use the new Topics feature, allowing them to follow the Daily users Advertising revenue trends they’re interested in like sports and music. 30%

However, advertising revenue fell to its lowest level in three years – 20% 12.0% dropping 22.7% year-on-year to $562m. Revenue from the United 10% States fell by a quarter while international markets dropped 20%. 0% It appears the worst is over, though. In the last three weeks of March, ad revenue fell by 27% but this rate of decline had slowed to 15% in -10% the last three weeks of July. -20% -22.7% The company is also branching out into areas like subscriptions and -30% commerce, though this will be “complementary” to advertising. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020

Note: % change in daily users is quarter-on-quarter, advertising revenue is year-on-year. SOURCE: Twitter

17% 20% 30% 3.9% 2.1% Ad revenue Forecast European Daily user Forecast growth ad revenue ad revenue growth daily user Q2 2020 growth growth Q2 2020 growth Q3 2020 Q3 2020

Snapchat saw a relatively healthy increase in advertising revenue, rising 17% to $454m in Q2 2020. While this is the lowest rate of 60% increase ever reported, it was generally ahead of expectations.

50% Even with uncertainty around key events like the back to school season, ad revenue growth is forecast to quicken to 20% in Q3 2020. 40%

Europe performed best, with ad revenue rising 30% to $79m. North 30% America rose 18% to $307m while the Rest of World was up just 2%. 20% Snapchat also added 9m daily users in Q2 2020, up 3.9% to 238m. 10% However, user growth is to slow to 2.1% in Q3. The company will be hoping to attract and engage users with its new Mini applications 0% features, small third-party apps that run inside Snapchat. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3(f) 2018 2019 2020

Note: % change in daily users is quarter-on-quarter, advertising revenue is year-on-year. Q3 2020 is Snapchat’s internal forecast. SOURCE: Snapchat

-2.9% 12.0% 56% 25% £25m Ad revenue Reader Digital International Impact of growth revenue revenue revenue COVID-19 FY19/20 growth FY19/20 FY19/20 on revenue FY19/20

Advertising revenue for The Guardian and The Observer newsbrands fell 2.9% in the 12 months to March 2020, dropping £2.6m to £87.2m. While still the largest segment at 39% of total revenue, this share is Readers Advertising Newsstand down from almost a half (47%) in FY15/16. 30% Instead, reader contributions, from one-off donations to editorial 25% subscriptions, continues to be the area of growth. The segment has 20% near-doubled since FY15/16 and rose 12.0% in FY19/20, to £80.5m. 15% 12.0% 10% Digital formats accounted for 56% of total revenue, up from 39% in 5% FY15/16. The newsbrand also generated a quarter (25%) of its 0% revenue from outside of the UK, the highest level ever. -2.9% -5% -10% -8.7% COVID-19 will knock revenues down by “more than £25m” this year, bringing the total below £200m for the first time since 2013. -15% FY16/17 FY17/18 FY18/19 FY19/20

Note: All data cover The Guardian and The Observer newsbrands for the financial years ending in March. SOURCE: Guardian Media Group

5.5% 1.3% 61.5m 5.1% 7.1% Subscriber Subscriber EMEA LATAM Marketing’s growth growth subscribers subscriber share of Q2 2020 forecast Q2 2020 growth total Q3 2020 Q2 2020 revenue Q2 2020

Netflix added 10.1m paid streaming subscriptions in Q2 2020, taking the total to 192.9m. This allowed streaming revenue to top $6bn for 10% the first time ever as a result of higher interest during COVID-19.

However, this subscriber growth of 5.5% is slower than Q1 2020’s 8% 9.4%, with almost the entirety of expansion coming in April and May. Netflix forecasts this growth will slow to just 1.3% in Q3, the lowest 6% rate of increase since 2011 and suggesting some level of saturation. 4% The US and Canada is the largest region, with 72.9m subscribers, while Asia Pacific saw the quickest growth, up 13.4% in Q2 2020. 2% Netflix has also become less reliant on advertising its platform to attract subscribers, with marketing spend falling to a three year low. 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3(f) 2017 2018 2019 2020

Note: Only includes paid streaming subscriptions, Q3 2020 is Netflix’s internal forecast. SOURCE: Netflix

WARC DATA Global Ad Trends, July 2020

Global Headline Index Marketing budgets Staffing Trading conditions Growth Four in five want brands to Global audio advertising 70 act in support of Black spend to fall below $30bn 60 Lives Matter this year 50 read more read more 40 30 DTC brands struggled to Roku and Amazon account 20 attract new online shoppers for two-thirds of connected 10 Decline during COVID-19 TV viewing