© 2011 Crain Communications Inc. Mobile Marketing Q3 Trend Report: What Marketers Need to Know About Mobile Metrics: It’s a Mad, Mad World

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Interactive Marketers’ Interest in Mobile Marketing Forrester’s survey of interactive marketers shows just how nascent mobile display and search are Q: “Of the following emerging marketing channels and tactics, please indicate which you are currently using, piloting, testing or expect to pilot in next 12 months” Base: U.S. interactive marketers (percentages may not total 100 because of rounding) Source: May 2010 U.S. Interactive Marketing Online Survey, Forrester Research NO PLANS TO USE CURRENTLY IMPLEMENTING OR PLOTTING PLAN TO PILOT IN NEXT 12 MONTHS Chart 1

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world U.S. Mobile Ad Spending, by Format, Note: Numbers may not add up to total due to rounding Source: eMarketer, Sept SEARCH MESSAGING DISPLAY VIDEO eMarketer includes SMS and mobile video spending in its projections (in millions & CAGR) 21% 74% CAGR Chart 2

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Estimated U.S. Mobile Online Advertising Gross Revenue by Vendor, 2010 Source: IDC, 2010 According to IDC, Search accounts for 55.6% of all mobile revenue which explains the significant lead of Google Gross revenue (mil)Share Google $ % Apple $ % Millenial Media $ % Yahoo! $ % Microsoft $ % Jumptap $ % Nokia $ % AOL $7.00.8% Other $ % Total $ % Chart 3

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Smartphones at 38% Penetration and Counting; Android Leads Source: Nielsen, March 2011 – May 2011, Mobile Insights, U.S. Chart 4

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Games Are the Most Popular Mobile App Category In terms of apps used, games and weather are even more popular than social networking Note: Category of apps used in past 30 days (Past 30-day app downloaders, Q2, 2011) Source: IDC, 2010 Chart 5

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Mobile Media Users are Nearing a Majority in the U.S. Forrester’s survey of interactive marketers shows how nascent mobile display and search are Mobile Media User = Used browser, application, native , stream or download music and broadcast or on demand video (does not include SMS) Source: comScore: MobiLens; Data: Three month average ending March 2011; Country: US, N= 30, million88.3 million Chart 6

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Incremental Reach from Leading U.S. News Brands’ Mobile Websites Source: comScore Total Universe Report; Data: April 2011; Country: U.S.; Beta Data comScore is able to report incremental reach of mobile for top web properties TOTAL UNIVERSAL AUDIENCE (000) INCREMENTAL REACH Pandora’s audience is over 40% mobile; 23% multi-platform MOBILE HOME/WORK PC AND MOBILE HOME/WORK PC 23% 35% 42% Chart 7

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world M-commerce is a Reality: 18% of mobile owners have purchased something on their phones Q: What did you purchase? Source: Insight Express, Digital Consumer Portrait, Q1 ‘11 Chart 8

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Mobile Most Likely to be Used for Store Locations and Price Checking Where do you typically perform the following shopping related activities? Asked of smartphone owners, n=1599, April-May 2010 Source: Compete, Quarterly Smartphone Owner Survey Look up shipping information of an item that I am considering purchasing online Review a product description Look for retailer or product coupons Check the status of an order that I originally placed online through my mobile device or computer Make a purchase after seeing the product in a store Check to see if an item is available for in-store pickup Check the status of a rebate I recently submitted Look up the address of a store or the store hours of a store I would like to visit Look at third-party or consumer-generated reviews of a product while I am in a store considering a purchase Check the price of an item while I am at a store considering a purchase, to make sure I am getting a good deal I NEVER PERFORM THIS ACTIVITY ON MY COMPUTER ON MY SMARTPHONE Chart 9

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world GroundTruth Carrier-based Data Looks Under the Sheets to Reveal Dirty Secrets of Mobile Porn is bigger than sports! Source: GroundTruth, April 2011 Chart 10

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Behaviors tracked on Smartphones Derived from Zokem smartphone metering Source: Zokem Life Meetings Movements Sleeping Wake-ups Travels Status Device Device features Applications Camera GPS Calendar usage Games App stores Application installations Maps and navigation User interface activity Keypresses Roaming Charging Battery & power Memory usage File systems & storage USB Social Calls SMS MMS applications Social networking Webmails Instant messaging VoIP Media Music Video Radio Gallery Youtube Imaging Search Mobile TV Media Music Video Radio Gallery Youtube Imaging Search Mobile TV Internet Search words Data applications Streaming Wifi Web browsing URL click- streams Page facetime Throughputs Page visits Browsing content types Data volumes Network access technologies Session-level statistics Context & Networks Profile changes Locations In-building locations Nearby people Signal strengths Dropped calls Network technology Coverage Accelerometer Chart 11

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Market Share of Online and Mobile Shopper Visits to Retailer Websites Data partnership from Compete and GroundTruth: Retailer website market share among mobile and online shoppers. % of unique visitors Market Share = Individual Retailer unique visitors as a % of Total Retailer unique visitors Analysis does NOT include apps Source: Compete, Groundtruth, June 2011 TOTAL ONLINE SHOPPERS, JUNE 2011: 125,382,105 TOTAL MOBILE SHOPPERS, JUNE 2011: 125,564,160 Chart 12

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Average Daily Breakdown of Mobile Activity on Android Smartphones Nielsen’s release of metered smartphone data shows how dominant app usage is on Android devices Source: Nielsen, unweighted metered data from smartphone analytics Chart 13

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Advertiser Campaign Goals, May 2011 Millennial’s S.M.A.R.T. Report shows how advertisers are using mobile campaigns Data is based on the top 250 campaigns on Millennial Media’s Network in May 2011 Source: Millennial Media Chart 14

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Campaign Destination Mix Millennial data shows that advertisers now are primarily driving to the mobile web Campaign destinations represent the immediate click-through from creative to site, landing page or rich media; Data is based on the top 250 campaigns on Millennial Media’s Network in May 2011 Source: Millennial Media Chart 15

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Mobile Operating System Click-through Rates Jumptap STAT Report shows click through rate trends by device Source: Jumptap STAT, June 2011 One explanation for the Apple iOS high click rates may be that this data includes the iPod Touch which is largely a gaming device: lots of ads for gaming downloads that this audience desires.72%.67%.41%.32% Apple iOS Web OS Android Symbian Other Blackberry Chart 16

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Dynamic Logic Ad Index for Mobile Methodology Both groups surveyed about attitudes toward brands; since the only statistical difference between the two groups is exposure to the banner, differences between them can be attributed to the advertising Source: Dynamic Logic Chart 17

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Mobile Brand Metrics The average mobile campaign has an impact on all five traditional brand metrics, according to Dynamic Logic Overall Mobile N=151 campaigns, n= 120,605 respondents Delta (Ä)=Exposed-Control Source: Dynamic Logic’s Ad Index for Mobile Norms through Q1/2011 Chart 18

Mobile Marketing Q3 Trend Report What marketers need to know about mobile metrics: It’s a mad, mad world Mobile Video Viewing Increasing Viewing video on phones has increased by 43 minutes per month over the past year. Monthly time spend in hours:minutes, per user 2+ Based on total users of each media; TV viewing patterns in the U.S. tend to be seasonal, with usage patterns different in winter months than summer months—sometimes leading to declines/increases in quarter to quarter usage. Source: Nielsen Cross Media Report Q1 2011Q Q % diff yr. to yr. Hours:Min diff yr. to yr. Watching TV at home 158:47154:05158:250.2%0:22 Watching timeshifted TV (all TV homes) 10:4610:279:3612.2%1:10 DVR playback (only in homes with DVRs) 26:1425:5225:481.7%0:26 Using the internet on a computer 25:3325:4925:54-1.4%-0:21 Watching video on internet 4:334:243:2334.5%1:10 Mobile subscribers watching video on a mobile phone 4:20 3:3720.0%0:43 Chart 19