1. State of the Industry: Mobile Survey Presented April 22, 2010 eMarketer Conference

2. Purpose: Check current vital signs Look inside the brains of the industry Help the industry see what’s ahead So they can plan accordingly

3. Nearly 1000 Respondents 341 Agencies, Marketers 115 Brands 194 Technologists 308 Publishers

4. MOBILE SPENDING TO CONTINUE AT A HEALTHY RATE

5. MOBI SURVEY3/8/10 N=140 Copyright © DM2PRO 2010 33% increase on average 25% said greater than 50% 10% said greater than 100% 21% said 10% Subtracting those who said 0- 1%, only 6% of total respondents are decreasing their mobile budget. Agencies: By What Percent Will Your Mobile Business Change in 2010? 94% of agency respondents say their mobile ad spend is increasing.

6. Agency Outlook on Mobile Spending MOBI SURVEY3/8/10 N=90/118 Copyright © DM2PRO 2010 Agencies reported a 2009 average of$143K. 2010 Spend jumped 80% to $260K.

7. BRANDS SEE IT COMING

8. Brands: Mobile transactions are just beginning. Less than 10% now MOBI SURVEY3/8/10 N=34 Copyright © DM2PRO 2010 But20% of respondents say more than half their customer interactions are mobile

9. Brands: Mobile interactions are just beginning. Less than 10% now MOBI SURVEY3/8/10 N=34 Copyright © DM2PRO 2010 But20% of respondents say more than half their customer interactions are mobile

10. Why Will Brands Increase Spending? “We simply want to be where are customers are, and more and more are mobile in both the consumer space and the b-to-b space, so we’ll be building out that mobile presence—in 2010 the focus in on making a compelling mobile Web experience in almost 200 countries worldwide.” - Jay Dark, worldwide manager of mobile marketing, Hewlett-Packard, Palo Alto, CA

11. Vast Majority of Brands Predict Rise in Mobile Customer Interactions MOBI SURVEY3/8/10 N=33 Copyright © DM2PRO 2010 Higher by an average of 64% Fewer by an average of 16%

12. BRANDS Will Spend to capture potential mobile customers MOBI SURVEY3/8/10 Copyright © DM2PRO 2010

13. Look for 2010 Mobile Brand Budgets to Double in Aggregate MOBI SURVEY3/8/10 N=20 Copyright © DM2PRO 2010 $679,744

14. Where is the spending coming from? So….. MOBI SURVEY3/8/10Copyright © DM2PRO 2010

15. More than 20% will spend more than 10% on Mobile this year! MOBI SURVEY3/8/10 Non-Mobile Marketers N=69 Copyright © DM2PRO 2010 Non-Mobile Content

16. Mostly Incremental Spending, But Online Will Decrease for 26% MOBI SURVEY3/8/10 N=89 Copyright © DM2PRO 2010 But online is most likely to give ground to fund mobile marketing. Newbies

17. What about applications? MOBI SURVEY3/8/10 Copyright © DM2PRO 2010

18. More Than Half Developed Apps for Clients MOBI SURVEY3/8/10 N=136 Copyright © DM2PRO 2010

19. Engagement, Branding Lead as APP Deliverables MOBI SURVEY3/8/10 N=80 Copyright © DM2PRO 2010

20. Key Questions Going Forward What are my marketing goals and how can mobile help? How much do I need to spend to accomplish those goals? How do I tie mobile into a 360 marketing plan?

21. PUBLISHERS: HOW DO WE MONETIZE ALL OF THIS GREAT NEW MOBILE CONTENT? MOBI SURVEY3/8/10 Copyright © DM2PRO 2010

22. Publishers: Mobile Platforms Used MOBI SURVEY3/8/10 N=127 Copyright © DM2PRO 2010

23. Most Mobile Revenue is Ad Supported MOBI SURVEY3/8/10 N=121 Copyright © DM2PRO 2010

24. Mobile Most Often Sold Separately MOBI SURVEY3/8/10 N=94 Copyright © DM2PRO 2010 But almost as often it’s bundled or a “value add”

25. CPM Most Frequent Charging Scheme MOBI SURVEY3/8/10 N=104 Copyright © DM2PRO 2010

26. Pricing Varies Widely MOBI SURVEY3/8/10 N=67 Copyright © DM2PRO 2010 CPC $.05-$.50 CPA $5-$50 CPM $3-$30 Sponsorship $6-100k/month

27. Publishers: Seek More Revenue MOBI SURVEY3/8/10 N=107 Copyright © DM2PRO 2010 Only 25% of MOBILE Publishers sell out more than half their inventory

28. MOBILE PUBLISHERS ASKING: WHAT DO YOU WANT FROM ME?

29. MOBI SURVEY3/8/10 N=143 Copyright © DM2PRO 2010 …demographics received the most “most important” votes. Suggested: Precision, Measurability, and Timeliness For Agencies, Context/Content Leads Choice of Most Important Factors in Mobile Media Buy

30. But How is Success Measured? CPA, CTR Received Most Top Rankings From Agencies; Engagement Higher on Average MOBI SURVEY3/8/10 N=143 Agencies Copyright © DM2PRO 2010

31. Agencies: Most Conversions Tracked In-House MOBI SURVEY3/8/10 N=137 Copyright © DM2PRO 2010 Others: Unique coupon codes, SMS, Comscore

32. CPA/CPL Leads in Buying Preference MOBI SURVEY3/8/10 Agencies N=135 Copyright © DM2PRO 2010 CPC Heavily favored write-in

33. MOBI SURVEY3/8/10 Brands N=33 Copyright © DM2PRO 2010 Content Leads as “Most Important” with Reach Ahead in the #2 Ranking Brands: What’s MOST Important in Your Mobile Media Buy?

34. For Brands: Content Quality is the Differentiator MOBI SURVEY3/8/10 Brands N=27 Copyright © DM2PRO 2010 Though measuring conversions is buyers’ major pain point, reporting metrics doesn’t factor in selecting a mobile campaign facilitator

35. But Brands Also Track Conversions Via CTR MOBI SURVEY3/8/10 Brands N=30 Copyright © DM2PRO 2010

36. THE ROLE OF MOBILE AD NETWORKS

37. Participate in a Mobile Ad Network 58.1% 71% 47.9% MOBI SURVEY3/8/10 N=117, 31, 144 Copyright © DM2PRO 2010

38. If You Use a Mobile Network, How Many? MOBI SURVEY3/8/10 N=26, 71, 82 Copyright © DM2PRO 2010

39. Ad Nets Account for Nearly 60% of Publisher’s Mobile Ad Sales MOBI SURVEY3/8/10 N=100 Copyright © DM2PRO 2010

40. But would prefer to sell more through internal sales team…. MOBI SURVEY3/8/10 N=94 Copyright © DM2PRO 2010 71.3% Say ROI is higher from internal sales 18.1% say comparable 10.6% say network ROI is higher

41. PAIN POINTS

42. Agencies: Metrics Represents Biggest Pain Point, Handset Jungle Not Far Behind MOBI SURVEY3/8/10 N=131 Copyright © DM2PRO 2010

43. Brands Agree: Mobile Metrics A Leading “Pain Point” MOBI SURVEY3/8/10 N=30 Copyright © DM2PRO 2010

44. Wanted by Agencies: Better Metrics MOBI SURVEY3/8/10 N=136 Copyright © DM2PRO 2010

45. Brands’ Wish List: Metrics and Penetration MOBI SURVEY3/8/10 Brands N=29 Copyright © DM2PRO 2010

46. Conclusions Mobile advertising will see healthy spending increases Publisher traffic will still continue to out pace spend Rich Media and App Sponsorships will help publishers engage their internal sales Ad networks will remain critical in food chain with continued increases in traffic Better reporting tools, ad units and targeting will help fuel brands/agencies adoption

47. What’s next….. Online brands, networks and players entering the space quickly Continued and significant smart phone growth – Especially Android….. Uniformed metrics and buy side tools Better reporting tools, ad units and targeting will help fuel brands/agencies adoption Mobile commerce, ticketing and couponing

48. Thanks!