Source: Mobile Marketing Association

What You Need to Know About Mobile Marketing

Mobile Spending to Reach $2.16 Billion in 2010The Mobile Marketing Association produced three estimates—low, medium and high—to project spending on mobile marketing this year

$0.96

$1.36

$2.02

$1.20

$1.70

$2.52

$1.52

$2.16

$3.20

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

2008 2009 2010

LOWER ESTIMATE

UPPER ESTIMATE

MIDDLE ESTIMATE

Source: Insight Express, June 2009; *Pew Internet & American Life Project, Generations Online, January 2009

What You Need to Know About Mobile Marketing

Phones Take On the PCAmong various demos, mobile phone penetration is equal to or greater than internet penetration

MOBILE PHONEPENETRATION

INTERNET PENETRATION*

Gen Y (18-24) 85% 87%

Gen X (25-44) 84% 83%

Younger Boomers (45-54)

84% 65%

Older Boomers (55-64)

79% 65%

Source: The Nielsen Co.

What You Need to Know About Mobile Marketing

U.S. Household Cellular-Only PenetrationFor almost one-quarter of all households, the mobile device has supplanted the landline

15% 15%

18%

21%

0%

5%

10%

15%

20%

25%

2006 2007 2008 2009

21%

of U.S. households have no landline, only mobiles

Source: comScore MobiLens

What You Need to Know About Mobile Marketing

Devices Impact BehaviorSmartphone users most likely to use phones as multimedia devices; iPhone users do more of everything

0%

10%

20%

30%

40%

50%

60%

70%

Music Games Socialnetworking

Web search Instantmessaging

News Video Personalbanking

Restaurantguides

Onlineshopping

AVERAGE MOBILE USER

SMARTPHONEIPHONEMOBILE CONTENT CONSUMPTION BY PHONE TYPE:

iPhone users are more than four times as likely as non-smartphone users, and 30% more likely than other smartphone users, to use web search

Source: iSupply Consumer Trak Survey, 2009

What You Need to Know About Mobile Marketing

The iPhone Is Less A Phone Than A Multimedia DeviceiPhone owners use the device for many more activities than just talking

Games 3%

Other 3%Music 2%

Internet 3%

E-mail 4%

SMS15%

Voice call 70%

Other 3%

Music10%

Internet9%

E-mail12%

SMS13%

Voice call 45%

Games 8%

AVERAGE US CELL PHONE USER40 minutes per day

IPHONE USER60 minutes per day

Source: The Nielsen Co., Q4 2009

What You Need to Know About Mobile Marketing

Mobile Media Penetration by Device Type

4%

24%7%

47%

15%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mobile video Apps Mobile internet

FEATURE PHONE

UNIQUE USERSSMARTPHONE

Nielsen projects the mobile internet (WAP) audience is 65 million; 32 million consumers access apps and 18 million access video

18M 32M 65M

Source: comScore MobiLens. Three-month average ending January 2009

What You Need to Know About Mobile Marketing

Touchscreen PenetrationPenetration of devices with touch technology increased 130% year over year

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10

17%

of mobile devices now have touchscreens

Source: The Nielsen Co.

What You Need to Know About Mobile Marketing

Smartphone Penetration; Projection (All Subscribers)Nielsen data show smartphones are being adopted rapidly. At current growth rates, Nielsen projects they will surpass 51% penetration by Q3 2011.

49%

51%

40%45%

31%27%

21%17%16%

10%

24%

14%13%

19%

35%

65% 60% 55%

69%

81%84%87%90% 86%

73%

83%79%

76%

0%

20%

40%

60%

80%

100%

Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

FEATURE PHONE

SMARTPHONE

28%

Smartphone penetration among recent adopters

Source: comScore MobiLens. Three-month average ending September 2009

What You Need to Know About Mobile Marketing

U.S. Mobile Usage by FunctionalityNot all mobile users are consumers of mobile media (using a browser, downloading apps or content)

SMA (and not Mobile Media)

31%

Just voice35%

Mobile Media34%

Decrease in ‘just talkers’ in past year

18%

Source: Ground Truth

What You Need to Know About Mobile Marketing

Advertising Networks’ Share of MarketAd network metrics, April 12, 2010

Rank SiteShare of Market

(Ranked by Uniques)

1 Millenial Media MBrand 69.28%

2 AdMob Performance Advertising 54.96%

3 Quattro Ads 52.03%

4 Ringleader Digital 13.24%

5 Google Ads 13.22%

6 Yahoo Advertising 11.90%

7 Millenial Media DeckTrade 11.19%

8 Mojiva 8.22%

9 AOL Advertising 8.22%

10 Advertising.com 4.37%

*Does not include HTC, largely an “ODM” for carrier-branded handsets but increasingly promoting devices under its own brand. Source: comScore

What You Need to Know About Mobile Marketing

RIM Leads U.S. Smartphone Share, Motorola All Mobile ShareApple may dominate the headlines, but it accounts for just 4% of all mobile phones and 25% of smartphones

Sony Ericsson 2%

RIM 8%

Palm 1%

Motorola22%

Nokia 9%

Samsung21%

LG22%

Apple 5%

Other5%Sanyo 2%

Kyocera 2%UTStarcom

1%

Sony Ericsson 0%

Motorola 4% Nokia3%

Samsung 5%

LG 1%

Apple25%

Other12%

Sanyo 0%

Kyocera 0%

UTStarcom 0%

RIM43%

Palm 7%

HANDSET OEM SHARE, JAN 2010* OEM SMARTPHONE SHARE, JAN 2010*

Source: MobClix iPhone app tracker

What You Need to Know About Mobile Marketing

Application Categories by Number of Apps AvailableGames, entertainment and books are most commonly available iPhone apps

24,50022,500 22,000

8,250 8,250 8,200 8,1005,500

0

5,000

10,000

15,000

20,000

25,000

30,000

Games Entertainment Books Education Travel Utilities Lifestyle Reference

Source: AdMob survey of 963 consumers administered on its network, February 2010

What You Need to Know About Mobile Marketing

Devices and Platforms Have Distinct Demographic SkewsAndroid phones currently skew male, while the iPod Touch is most likely to be used by consumers under the age of 17

57%

43%

54%

46%

73%

27%

58%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

iPhone iPod Touch Android web OS

13%

12%

21%

21%

18%

14%

65%

13%

4%6%6%5%

7%

17%

30%

21%

17%

8%

2%

22%

24%

29%

16%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

iPhone iPod Touch Android web OS

MALE

FEMALE

GENDER BY PLATFORM:

17 OR YOUNGER25-34

AGE BY PLATFORM: 35-44 45-54 55 OR

OLDER

18-24

Source: Flurry, September 2009

What You Need to Know About Mobile Marketing

Will the App Get Used?On average, only 32% of apps are still retained after 60 days; games, social and entertainment have low retention rates, while news boasts high retention

Loyalty by Application Category

Category30-DayRetenti

on

60-DayRetenti

on

90-DayRetenti

on

Frequency of

Use/Week

News 74% 57% 43% 11.0

Medical 72% 55% 43% 3.0

Reference 70% 55% 42% 10.7

Productivity 72% 38% 35% 6.0

Navigation 73% 33% 30% 6.0

Health/Fitness

65% 35% 30% 7.0

Education 72% 34% 30% 4.0

Weather 74% 38% 30% 10.5

Business 71% 33% 27% 5.0

Music 65% 32% 26% 5.0

Cont’d Loyalty by Application Category

Category30-DayRetenti

on

60-DayRetenti

on

90-DayRetenti

on

Frequency of

Use/Week

Finance 71% 33% 28% 6.0

Sport 73% 30% 21% 4.0

Travel 61% 25% 20% 7.0

Utilities 55% 19% 17% 7.7

Games 72% 23% 16% 7.4

Social Networking

61% 19% 14% 6.0

Entertainment

51% 15% 12% 2.6

Books 72% 23% 12% 10.0

Lifestyle 50% 8% 5% 8.0

AVERAGE 67% 32% 25% 6.7

Source: Compete Smartphone Survey, Q3 2009

What You Need to Know About Mobile Marketing

Smartphone Are Being Used For a Variety of Retail-Related ActivitiesPercentage of smartphone owners who have ever used the device to...

28%

33%

50%

66%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Purchased via the phone

Price comparison in store

Product lookup/ reviews

Research store info