SpecialRestaurantReportJune 2013

#SMART

Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™)

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TELECOMMUNICATIONSENTERTAINMENTFINANCERETAILAUTOMOTIVECONSUMER GOODSTRAVELTECHNOLOGYEDUCATIONRESTAURANTS

123456789

10

Q1 2013

312

4*58679

4*

Q1 2012CATEGORIES

Top 10 Global Advertising VerticalsRanked by SpendCHART A

*Previously reported as a combined vertical.Source: Millennial Media, Q1 2013.

Global Mobile Vertical Spending

VERTICALS GROWTH

Vertical ExplosionYear-Over-Year Spend – Q1 2013/Q1 2012CHART B

Mobile Ad Spend Per Mobile Phone UserBy Country

Source: Millennial Media, Q1 2013.

SPORTS

NONPROFIT & CHARITIES

ENERGY & POWER

EMPLOYMENT

GOVERNMENT SERVICES

CONSUMER GOODS

AUTOMOTIVE

TELECOMMUNICATIONS

600%

264%

261%

231%

189%

188%

109%

102%

Report ChangeWhile the Retail & Restaurants verticals have traditionally been combined in our reports, these verticals will now be reported separately. We made this change to keep up with the evolving mobile advertising landscape. This quarter, you can find an in-depth look at the Restaurants vertical starting on Page 4.

Telecom Tops in Q1Telecommunications was the top vertical on our platform in Q1 (Chart A), growing campaign spend 102% from the same quarter a year ago (Chart B). Mobile carriers and device manufacturers ran video campaigns promoting new device launches.

Beauty Product InnovationConsumer Goods was the sixth largest vertical spending on our platform in Q1 (Chart A), growing 188% year-over-year (Chart B). Cosmetics & Hygiene brands ran brand awareness campaigns that utilized a variety of interactive methods, such as swiping across and shaking the device to engage users.

Emerging Verticals Show GrowthThe Sports vertical saw the largest year-over-year growth in Q1, followed by the Non-profit & Charities and Energy & Power verticals (Chart B). Traditionally, these verticals have not been top ten spenders, but have recently grown their investment in mobile. In the Sports vertical, we saw leagues and organizations develop their own branded applications to share content. Non-profit health organizations used mobile to drive awareness of important issues.

DID YOU KNOW?

Source: eMarketer report, May 2013; with data from 2011.

The UK and the US are the largest spenders in mobile advertising per consumer, spending $49 per mobile phone user in each country. As consumer adoption of mobile devices continues to increase globally, there is a clear opportunity for advertisers to increase their presence on this most interactive of platforms.

U.S.JAPANCANADAGERMANYSOUTHKOREA

FRANCE UK

$8 $10 $12$20

$30

$49 $49

JUNE 2013

Source: Millennial Media, Q1 2013. *Updated categories for 2013; includes “Interactive” as a new category. Data is based on the Top 750 Campaigns on Millennial Media’s Platform in Q1 2013.

Post-Click Campaign Action MixCHART C

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Global Mobile Advertiser Trends:Campaign Engagement Methods & Goals

Sustained In-Market PresenceSite/Mobile TrafficRegistrationsBrand AwarenessIncreased Foot TrafficProduct Launch/Release

Source: Millennial Media, Q1 2013.Data is based on the Top 750 campaigns on Millennial Media’s Platform in Q1 2013.

Advertisers’ Campaign GoalsCHART D

37%

18%16%

13%

9%

8%

App Store Top of the ChartsThis quarter, application download was used in 45% of campaigns on our platform (Chart C). The Entertainment vertical integrated app download capabilities into mobile ads to drive consumers to download, purchase, or consume entertainment content.

Interacting with Mobile AdsInteractive actions were utilized in 12% of the campaigns on our platform in Q1 (Chart C). Interactive is a new category which represents post-click actions which are unique to mobile, such as swiping across the screen, shaking the device, utilizing the touch screen, or playing games. These innovative features help connect mobile consumers to the ad using familiar and fun ways of interacting with the device.

Sign-up for SavingsDriving registrations was the goal of 16% of the brand advertisers on our platform this quarter (Chart D). Retailers often paired registrations with retail promotions to offer consumers a mobile coupon in exchange for information.

Consumer Goods Drive Brand AwarenessIn Q1, brand awareness campaigns were run by 13% of the advertisers on our platform (Chart D). Consumer Goods brands layered multiple post-click actions in order to drive brand awareness. For example, food advertisers often utilized video with site search actions to send consumers to a mobile landing page where nutritional and recipe information was available.

RETAILPROMOTION

ENROLL / JOIN /SUBSCRIBE

STORE LOCATOR /VIEW MAP

WATCH VIDEOPLACE CALLAPPLICATIONDOWNLOAD

SITE SEARCHMCOMMERCEINTERACTIVE SOCIAL MEDIA

0%

10%

20%

30%

40%

50%

45%

13% 12% 12% 15%

24%

15% 17%

6% 7%

JUNE 2013

SITE SEARCH

24%

72%

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Vertical Insight: Restaurants

Site Search Heavily UsedOver 70% of Restaurant advertisers on our platform in Q1 included a Site Search option in their campaigns (Chart E). Oftentimes, Restaurant advertisers used their mobile web or landing page to house multiple types of information, such as nutritional details, coupons, and location listings.

Mobile Coupon SuccessRestaurant brands utilized Retail Promotions as part of their campaigns nearly five times as often when compared to all advertisers (Chart E). Harvester, a restaurant chain in the UK, utilized Retail Promotion by running a mobile coupon campaign leveraging Passbook in order to drive hungry consumers into their locations (Campaign Summary, Page 6).

Drive to Drive-ThruStore Locator / View Map was the largest post-click campaign action used by Restaurant advertisers on our platform in Q1 (Chart E). Over 80% of Restaurant advertisers included this action in their mobile campaign, whether as the primary goal (Chart F), or a secondary action on a rich media or mobile landing page.

Site/Mobile TrafficBrand AwarenessIncreased Foot TrafficProduct Launch/Release

Source: Millennial Media, Q1 2013.Data is based on the Top 750 campaigns on Millennial Media’s Platform in Q1 2013.

Restaurant Advertisers’ Campaign GoalsCHART F

2%

81%

9% 8%

As mentioned on Page 2, we have traditionally reported Retail & Restaurants as a combined vertical. Retail & Restaurants was the largest vertical on our platform in 2012, growing 106% year-over-year. To keep up with the changing mobile landscape and campaigns on our platform, we will now separate Retail & Restaurants in our research reports. While these verticals often utilize mobile ads to drive consumers into locations, the characteristics of these verticals make them unique. This quarter, we are highlighting the Restaurants vertical.

Restaurant Advertisers’ Post-Click Campaign Action MixCHART E

ENROLL / JOIN /SUBSCRIBE

STORE LOCATOR /VIEW MAP

WATCH VIDEOAPPLICATIONDOWNLOAD

MCOMMERCEINTERACTIVE

0%

20%

40%

60%

80%

100%

45%

13% 12% 12% 15% 17%

2% 4%

28%

1%

SOCIAL MEDIA

15%15%

83%

11%

Source: Millennial Media, Q1 2013. Data is based on the Top 750 Campaigns on Millennial Media’s Platform in Q1 2013.

Restaurant AdvertisersAll Advertisers

PLACE CALL

6%<1%

RETAILPROMOTION

7%

34%

JUNE 2013

NEW REPORTS AVAILABLE NOW

May 2013 Mobile MixThe May Mobile Mix report takes a closer look into mobile device, OS, application, and tablet trends on the Millennial Media platform. Additionally, this report features a spotlight on the Android operating system.

Vertical Insight: Restaurants

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Travelers Research On-the-GoThe Top 10 Audiences Engaging with Restaurant Ads on our platform in Q1 are shown in Chart G. The DIYers audience was the most likely to engage with Restaurant ads, followed by Travelers, and Music Fans. Travelers, both for business travel and personal vacation, use mobile to discover local restaurants when they are in a new city.

Bargain Hunters Looking for a Meal DealBargain Hunters also regularly engaged with Restaurant Ads on our platform (Chart G). Bargain Hunters are mobile users looking for a retail promotion, mobile coupon, or incentive to induce purchase. According to research from eMarketer, the number of mobile coupon users in the U.S. grew over 16% last year.

Foodies Hunger for ContentAnother top audience engaging with Restaurant Ads is the Foodies audience (Chart G). Foodies are interested in both discovering and contributing food-related content with their mobile device, such as searching for a new type of cuisine to try, or posting a photo or review of a meal online.

Top Audiences Engaging with Restaurant AdsCHART G

Source: Millennial Media, Q1 2013.

DIYers

TravelersAvidShoppers

Music Fans

Casual Gamers

Bargain HuntersTradesmen

Foodies

EntertainmentFans

Business & FinanceEnthusiasts

Mobile Intel Series: Consumer Goods Mobile Intel Series: Consumer Goods provides insight into this mobile audience, how they are using mobile to access content, and best practices for how consumer goods brands can succeed in mobile advertising.

To download the free guide visit: www.millennialmedia.com/mobile-intelligence/mobile-intel-series

To download the free report visit: www.millennialmedia.com/mobile-intelligence/mobile-mix

JUNE 2013

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Vertical Insight: Restaurants

GOAL:Reach relevant consumers in the UK and offer a seamless experience of downloading and redeeming a Harvester voucher.

STRATEGY:The UK restaurant chain Harvester created a campaign that offered consumers £5 off their bill when spending £30 or more. With the help of technology partner Eagle Eye, the campaign was the first ever in the UK to take advantage of the new Passbook functionality in iOS6.

When consumers clicked on the offer, they were given a unique voucher that was delivered straight to the Passbook app on their device. The voucher could be redeemed when paying the bill, and was processed directly from the POS terminal, giving the restaurant additional insight into campaign effectiveness.

CAMPAIGN SPOTLIGHT: HARVESTER

To download the full Campaign Summary visit:www.millennialmedia.com/advertise/campaign-successes

According to research from eMarketer, mobile payments in the U.S. alone are expected to grow to over $62 billion by 2016. Mobile payments offer unique opportunities for retailers to connect with and capture information from consumers throughout the purchase funnel, from leveraging geo-targeting around a Restaurant location, offering mobile coupons that can be saved to a mobile wallet, and to capturing point-of-sale data. In the UK, restaurant chain Harvester had great success integrating iOS’s Passbook with a mobile coupon campaign in order to drive foot traffic into their restaurants.

Best Mobile Couponing Campaign

The campaign exceeded our expectations. Clearly Apple Passbook users love a great deal as much as they love their technology! Eagle Eye’s platform gave us the real-time data and secure redemption we needed to control the offer with confidence, while Millennial Media’s platform hit the right users.

“

”~ Helen Worrall, Senior Advertising & Communications Manager – Mitchells & Butlers

JUNE 2013

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Device Trends

Source: Millennial Media, Q1 2013.

Top 5 Tablets on the Millennial Media PlatformBy ImpressionsCHART J

Apple iPad*

1

Samsung Galaxy Tab*

2

Amazon Kindle Fire*

3

Asus Transformer Pad

5

Google Nexus Tablet

4

* Ranked in the top 20 among all mobile devices

The Google Nexus 7 Tablet

GREW 126% from the previous quarter to enter our Top 5 Tablets.

Device MixRanked by ImpressionsCHART H

70%

25%

5%

Source: Millennial Media, Q1 2013.

SmartphonesNon-Phone Connected DevicesFeature Phones

OS MixRanked by ImpressionsCHART I

52%

1% 1%

7%

39%

Source: Millennial Media, Q1 2013.

AndroidiOSBlackBerry OSWindowsSymbian

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Apple

Samsung

BlackBerry

HTC

LG

Motorola

Amazon

SonyEricsson

Nokia

HUAWEI

ZTE

Asus

Kyocera

Sony

Pantech

36.87%

26.96%

6.47%

4.82%

4.52%

4.36%

2.19%

1.64%

1.39%

1.39%

1.07%

0.85%

0.60%

0.53%

0.51%

RANK MANUFACTURERS Q1 2013

Source: Millennial Media, Q1 2013.

Top 15 Manufacturers (all devices)Ranked by ImpressionsCHART K

JUNE 2013

Audience Targeting – A strategy used by advertisers to deliver relevant messaging to specific target audiences. Built upon massive volumes of diverse user, location, app, and 3rd party data, Millennial Media’s audience targeting uses a variety of targeting techniques to reach audiences, including behavioral, local, contextual, demographic, retargeting, tactical, and content-based solutions.

Cross-Platform – Pertaining to multiple devices (smartphones, tablets, feature phones, non-phone connected devices), carriers (AT&T, Verizon, Vodafone, etc.), or platforms (iOS, Android, BlackBerry, Windows Phone, Symbian, etc.). Millennial Media is cross-platform – or “platform agnostic” – because we do not focus on one single OS or device type. This enables advertisers to reach as many mobile users as possible, regardless of their mobile device or carrier of choice.

Developer – Provider/creator of mobile applications and sites. Developers range from large entities (brands, portals, news sites, etc.) to individuals who focus on just a handful of applications.

Feature Phone – Any web-enabled mobile phone that is not a smartphone.

Impression – A count of the number of times an ad unit appears on a mobile device.

Interactive Video – A high-impact video ad layered with interactive features that deliver a uniquely mobile, actionable experience to customers.

Inventory – The ad space available on mobile websites and applications.

Non-Phone Connected Device – A non-phone mobile device. This includes tablets, gaming devices, e-readers, MP3 players, etc.

Post-Click Campaign Action – The action a marketing campaign is driving the customer to take once an ad is viewed (i.e., Place Call, Download Application, View Map, etc.).

SDK – Software Development Kit. A tool that enables developers to seamlessly integrate mobile advertising into their applications, thus monetizing their apps. Developer partners on Millennial Media’s platform download and integrate our SDKs (available for a variety of operating systems – iOS, Android, Windows Phone, etc.) to gain access to the ads run by our advertising partners.

Smartphone – Any web-enabled and application-enabled mobile phone that runs on an operating system and offers the user more advanced capabilities beyond just voice and mobile web access.

Vertical – The classification of advertisers by industry.

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S.M.A.R.T.™ Glossary of TermsJUNE 2013

9

Summary & Reporting Methodology

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©2013 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

About Millennial Media

Millennial Media is the leading independent mobile advertising and data platform. Our technology, tools and services help app developers and mobile website publishers maximize their advertising revenue, acquire users and gain audience insights. Our platform also enables us to offer advertisers powerful Mobile Audience Solutions (MAS) that utilize our significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results.

About S.M.A.R.T.™

The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ delivers regular insights on key trends in mobile advertising based on actual campaign and platform data from Millennial Media.

Visit www.millennialmedia.com/mobile-intelligence to sign up to receive Millennial Media-related news including the Mobile Mix™ report, the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ report, and the Mobile Intel Series.

For questions about the data in this report, or for recommendations for future reports, please contact us at research@millennialmedia.com.

JUNE 2013