q3 2011 - webinar report

A GLOBAL VIEW OF MOBILE ADVERTISING: Quarter 3, 2011 Webinar

InMobi Mobile Insights - Network Data

October 25th, 2011

ABOUT THE RESEARCH

Project Background

After launching in 2007 in Asia, InMobi quickly grew to become the world's largest independent mobile advertising network. In the third quarter of 2011, we served 138.4 billion impressions in 165 markets worldwide. With a physical presence in 5 continents, over 5,500 publisher partners, and a broad, independent market footprint, InMobi is well positioned to provide an objective, comprehensive, and representative view of the mobile advertising market.

Research Objectives

We have three goals with this research: 1.  Help educate the market. Statistics and information about the state of mobile

advertising are lacking in most regions of the world. 2.  Track consumer opinions regarding mobile advertising. With any emerging

medium, the consumer perspective is critical to overall market success. We see a need for trending across regions in this area.

3.  Collaborate with industry thought leaders to increase market insight and improve information quality ongoing. As a global independent company, we value partnerships that will strengthen our understanding of the market. Researchers, thought-leaders, and analysts are encouraged to contact us and apply for full partner access.

Contact Information

www.inmobi.com/research [email protected] Twitter: @inmobi

CONTENTS

InMobi Q3 Research Webinar Content •  Q3 Network Research Highlights

•  Africa •  Asia Pacific •  Central & South America •  Europe •  Middle East •  North America

•  Key Insights & Global Trends •  Smartphone growth leader •  Advertisers & Smartphones •  Android is King •  Global Monetization

NETWORK DATA

Data in this report are sourced from our global mobile advertising network which served 138.4 billion impressions in the third quarter of 2011. With 165 countries receiving over 50.4 billion impressions in September, we are able to claim one of the broadest and most representative networks in the world. Exact specifications are as follows: • Global Available Impressions in Quarter 3, 2011: 138.4 billion • Regions Represented: Africa, Asia Pacific, Europe, Middle East, North America, and South America • Countries Represented: 131 countries with over 10 million impressions per month • Base Measure: Available Impressions • Time Periods: Q2 2011 (April – June 2011), Q3 2011 (July – September 2011)

InMobi is committed to an independent and transparent leadership position in mobile advertising. With that in mind, the following issues are present in this data.

Mobile Advertising Market Definition: This report covers mobile display advertising only including both Mobile Web (WAP) and APP. SMS/Text and Search are NOT included in this synopsis.

Scale and Time In Market: Representation within the network is a function of the both scale and time in market. Readers can expect more fluctuation and variance in younger, smaller markets for the company.

Publisher Mix: As with any ad network, market representation is a function of the publisher mix. We have over 5,500 publishers of all sizes and content types, but changes to the publisher mix in a given market could impact the data.

Advertiser Mix: Similar to publisher mix, the advertiser mix could impact the numbers in our network, although to a much lesser extent than publishers.

Specifications

Representation

MEASURES AND TERM DEFINITIONS

Measures: Available Impressions: The total number of ads requests made to the InMobi network % Share (of Available Impressions): The % of total available impressions in the specified region allocated to the inventory type, device, manufacturer, or OS under analysis. Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified region or country relative to that same inventory type, device, manufacturer, or OS share globally. Regional Development Index: Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified country relative to that same inventory type, device, manufacturer, or OS share in the relevant region. % Chg: The percentage change in absolute value between two different time periods. Pt Chg: The difference between two share percentages for an inventory type, device, manufacturer, or OS under analysis in different time periods.

Definitions: Smartphone: Any impression served to an iPhone OS, Android OS, RIM OS, webOS, Windows Mobile OS, Linux Smartphone OS, Palm OS, Nokia N & E Series Phones, or Samsung Bada. Advanced: Any impression served to any OS or handset not included in the smart phone definition above. Mobile Web: Any impression served using Wireless Application Protocol (WAP) which is an open international standard for application-layer network communications in a wireless-communication environment. App (Application): Any impressions served to a mobile application resident on the consumer mobile device. Carrier: The mobile network operator (MNO), carrier service provider (CSP), wireless service provider, wireless carrier, or cellular company providing service for mobile phone subscriber served the impression. OS (Operating System): The system software (programs and data) running on the mobile devices that manages the hardware and provides common services for execution of various application software receiving the impression. Handsets and Connected Device: The make and model of the mobile device receiving the impression. Manufacturer: The OEM manufacturer of the mobile device receiving the impression. Other: An aggregation of any remaining impressions not specifically detailed previously. Typically an aggregation of everything under 1% share.

InMobi Regional Definitions: InMobi defines all regions per Wikipedia with the following modifications: “Asia Pacific” includes the 15 Oceania countries as listed in Wikipedia. “South America” includes South & Central Americas as listed in Wikipedia.

Available Impression Volume & Composition Q2 2011 Q3 2011 % Chg

Total 104,334,888,661 138,351,025,951 32.6% Smartphone 39,314,783,903 59,979,601,147 52.6% Advanced 65,020,104,758 78,371,424,804 20.5%

Mobile Web 86,948,843,684 109,314,697,724 25.7%

App 17,386,044,977 29,036,328,227 67.0%

GLOBAL SUMMARY

The global mobile ad ecosystem continues its significant growth, increasing ad impressions by 32.6% from Q2 2011 to Q3 2011. "  The InMobi network gained nearly 34 billion ad

requests in Q3 2011. Continued significant growth in the global mobile ecosystem highlights the healthy mix of increasing consumer mobile usage, advertiser adoption and publisher focus on mobile advertising.

Smartphone impression growth far outpaces advanced phones. Smartphones now represent 43% of all mobile ads on the InMobi network. "  52% growth in impressions on Smartphones over

the past quarter clearly underlines the shift towards Smartphone usage among consumers globally.

In-application advertising continues to grow quickly, although it only represents 21% of all mobile ads on the InMobi network. "  In application ads are highly utilized in only a few

key markets across the globe. Globally, most mobile ads are still delivered in the mobile web experience, which is platform agnostic.

Source: InMobi Mobile Insights – Network Research, Q3 2011

GLOBAL

The Android OS gained 7.2 share points and surpassed both the leading operating systems, Nokia and Symbian. "  Although iPhone OS gained significant traction in Q2 2011, Android OS growth has outpaced all the leading OS’s on the

InMobi network over the past quarter.

"  Ad impressions are fairly well distributed across the top 4 mobile platforms. Android is controlling over 22% of impression share.

Global OS Share: Q3 2011

Available Impressions

22%

18%

18%

11%

10%

21% Android

Nokia OS

Symbian OS

iPhone OS

RIM OS

Others

OS Impressions % Share Pt. Chg

Android 31,095,406,496 22.5% +7.2

Nokia OS 25,183,777,402 18.2% -1.8

Symbian OS 24,348,191,250 17.6% -1.5

iPhone OS 15,222,377,217 11.0% -3.8

RIM OS 13,269,885,290 9.6% +3.6

Others 29,231,388,297 21.1% -3.7


GLOBAL Global Manufacturer Share: Q3 2011

Available Impressions

36%

18% 11%

10%

6%

6%

4%

3% 1%

6% Nokia Samsung Apple RIM HTC SonyEricsson LG Motorola DoCoMo Others

Manufacturer Impressions % Share Pt. Chg Nokia 49,491,045,378 35.8% -3.2

Samsung 24,747,590,276 17.9% +3.1

Apple 15,222,377,217 11.0% -3.8

RIM 13,269,885,290 9.6% +3.6

HTC 8,190,274,125 5.9% +0.9

SonyEricsson 7,872,153,468 5.7% -1.5

LG 5,700,658,465 4.1% +0.1

Motorola 3,648,747,769 2.6% -0.5

DoCoMo 1,962,380,787 1.4% +1.3

Others 8,245,913,176 6.0% +0.1

Nokia holds the top manufacturer spot by global ad impressions, holding a commanding 35.8% share of impressions. "  Samsung gained 3.1 share points to surpass Apple and secure the 2nd spot in the manufacturer category.

"  Outside of the top 3 manufacturers, the global ad impression market is considerably fragmented across the remaining 5 major manufacturers


GLOBAL

Global Handset and Connected Device Detail: Q3 2011

Handset Impressions % Share Pt Chg Apple iPhone 4 5,703,047,167 4.1% +0.7

RIM BlackBerry 8520 4,119,025,675 3.0% +0.6 Nokia 6300 2,503,775,917 1.8% -0.4 Nokia 5233 2,360,111,627 1.7% +0.3

RIM BlackBerry 9800 2,356,015,544 1.7% +1.2 Nokia 3110c 2,106,099,465 1.5% -0.5

Apple iPod Generation IV 2,018,186,153 1.5% +0.5 Apple iPad I 1,910,102,922 1.4% +0.2 HTC 001HT 1,868,878,125 1.4% +1.3 Nokia C3-00 1,860,928,144 1.3% +0.0 Nokia C1-01 1,747,778,250 1.3% +0.5 Nokia N73 1,744,569,994 1.3% -0.2

RIM BlackBerry 9700 1,705,622,822 1.2% +0.5 RIM BlackBerry 9300 1,674,867,330 1.2% +0.6 Samsung GT-I9000 1,641,743,468 1.2% -0.0

The Apple iPhone 4 gained 0.7 share points to remain the top device globally. 6 of the top 15 handsets are Nokia devices. "  The Apple iPhone 4 is the top device by share of impressions.

"  The top 10 handsets are mostly smartphones, once again underlining the rich opportunity for advertisers to reach audiences at scale with rich experiences.


NORTH AMERICA SUMMARY


EUROPE SUMMARY


1) Germany 2) France 3) Italy 4) UK 5) Spain

EUROPE COUNTRY DETAIL

% Smartphone

Share Share

% Growth

Top Manufacturer

1) Spain 105% 2) France 102% 3) UK 64% 4) Italy 60% 5) Germany -‐9%

1) France 87% 2) Germany 86% 3) UK 84% 4) Spain 78% 5) Italy 72%

France Apple Germany Apple Italy Samsung Spain RIM UK Apple

1) Germany 2) France 3) Spain 4) Italy 5) UK

ASIA SUMMARY


ASIA PACIFIC COUNTRY DETAIL

% Smartphone % Growth

1) Taiwan 120% 2) China 99% 3) Hong Kong 49% 4) Japan 45% 5) Malaysia 37% 6) India 35% 7) Singapore 30% 8) Indonesia 1% 9) Australia 0%

1) Japan 99% 2) Taiwan 96% 3) China 93% 4) Australia 85% 4) Singapore 85% 6) Hong Kong 82% 7) Malaysia 50% 8) Indonesia 16% 9) India 13%

1) Singapore 2) Australia 3) China 4) Japan 5) Hong Kong 6) Malaysia 7) Taiwan 8) Indonesia 9) India

ASIA PACIFIC COUNTRY DETAIL

Share Share Top Manufacturer

Australia Apple China Apple Hong Kong Samsung India Nokia Indonesia Nokia Japan Apple Malaysia Nokia Singapore Apple Taiwan HTC

1) Taiwan 2) Japan 3) China 4) Hong Kong 5) Singapore 6) Malaysia 7) Australia 8) Indonesia 9) India

AFRICA SUMMARY


1) South Africa 2) Kenya 3) Nigeria

AFRICA COUNTRY DETAIL

% Smartphone

Share Share

% Growth

Top Manufacturer

1) Kenya 43% 2) Nigeria 42% 3) South Africa 20%

1) South Africa 29% 2) Nigeria 11% 3) Kenya 8%

Kenya Nokia Nigeria Nokia South Africa Nokia

1) Kenya 2) South Africa 3) Nigeria

CENTRAL & SOUTH AMERICA SUMMARY


MIDDLE EAST SUMMARY


KEY MOBILE TRENDS

ASIA LEADS SMARTPHONE GROWTH


Number of Smartphone Impressions by Region (billions)

Sep '11

Oct '10

Oct '09

Asia North America Europe Middle East South America Africa

35% 31% 18% 4% 6%

Total: 2.1bn

Total: 7.2bn

Total: 23.2bn (100%)

4%

Asia is the largest region based on number of Smartphone impressions

TOP MARKETS BY NUMBER OF TOTAL IMPRESSIONS

Q2 (billions)

1. India (24.3)

2. USA (13.7)

3. Indonesia (12.9)

4. Vietnam (4.9)

5. Japan (3.1)

6. South Africa (2.6)

7. Nigeria (2.3)

8. Mexico (2.3)

9. UK (2.2)

10. Canada (2.1)

Fastest Growing Markets, Q2 – Q3

1. India (+8.4)

2. USA (+5.1)

3. Canada (+2.4)

4. UK (+1.4)

5. Japan (+1.4)

6. China (+1.1)

7. Nigeria (+1.0)

8. Spain (+0.9)

9. Brazil (+0.9)

10. Saudi Arabia (+0.8)

Q3 (billions)

1. India (32.7)

2. USA (18.9)

3. Indonesia (13.0)

4. Vietnam (4.6)

5. Canada (4.5)

6. Japan (4.5)

7. UK (3.6)

8. Nigeria (3.3)

9. South Africa (3.1)

10. Mexico (2.8)

•  4 of the fastest growing markets by number of impressions are currently not in the top 10

•  Growth coming from emerging markets (India, China, Nigeria) as well as developed ones (UK, Japan, Canada)


TOP ADVERTISERS ARE FOLLOWING SMARTPHONES


Oct '09 Jan '10 Apr '10 Jul '10 Oct '10 Jan '11 Apr '11 Jul '11 Sep '11

Africa

South America

Middle East

Europe

North America

Asia

11.4 14.0 18.3 23.2

3 4 8 25

37 62

138

203

250

Fortune 1000 Advertisers - Global

7.2 4.7 3.5 2.7 2.1

Smartphone Impression Growth (billions)

IN Q1 NOKIA OS HAD THE HIGHEST IMPRESSION SHARE


Share of Impressions, Q1 2011

19.8%

21.8%

13.8%

10.0%

ANDROID BECOMES THE #1 GLOBAL OS



19.8%

21.8%

13.8%

10.0%

18.2%

22.5%

17.6%

11.0%


3.6

8.7

2.2

1.0

Q1-Q3 Change

IPHONE MAY BOOST IOS SHARE OVER NEXT 6 MONTHS

Mobile Subscribers Who Plan on Switching to iPhone 4S:

27.9%

11.1%

10.8%

Mobile Subscribers Who Plan on Switching to iPhone 5:

51.8%

50.7%

27.1%

Before the October 4th Apple iPhone announcement, 41% of current mobile subscribers in North America intended to

buy an iPhone 5

Source: iPhone 5 and the Mobile Market, InMobi, September 27, 2011

GLOBAL MONETIZATION DOES NOT DIFFER BY 10X

186 164

90 89 78 70

Europe North America

Africa South America

Asia Pacific

Middle East

+176% +186% +21% +674% +94% +117% Y/Y Change

Mobile MoneJzaJon (eCPM) & Growth Global Y/Y Change: +84%

Source: InMobi Mobile Insights – Network Research, October 2011

This data is part of a series of network reports that are released monthly. Additional regions and markets will be released throughout the quarter. Release Schedule Once a quarter InMobi will release a full data report which will include global, regional and country data views. The next full release is planned for mid January. Infographics with monthly data will be available in November and December. Monthly data updates including key information by market will be released via our mailing lists and website. While we move to a quarterly release schedule, we will still continue to release insightful data on key markets across regions on a monthly basis. These releases will shed light on emerging trends and unique developments specific to those key markets. Open Source Research: Getting Involved Objective industry analysts and thought-leaders are encouraged to comment, question, and participate. We will be sure to consider and update the research based on feedback and questions to improve the quality for all end users. To join our monthly research mailing list, contact us at [email protected] To download the full reports, visit us at www.InMobi.com/research

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