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

December 2012

Telecom Spotlight

Global Mobile Vertical Spending

DECEMBER 2012

Top 10 Global Advertising Verticals

Ranked by Spend CHART A

Vertical Explosion
VERTICALS

Year-Over-Year Spend Q3 2012/Q3 2011 CHART B

RANK 1 2 3 4 5 6 7 8 9 10

CATEGORIES TELECOMMUNICATIONS RETAIL & RESTAURANTS FINANCE AUTOMOTIVE TRAVEL PORTALS & DIRECTORIES CPG/FMCG ENTERTAINMENT EDUCATION TECHNOLOGY

GROWTH

AUTOMOTIVE TRAVEL EDUCATION SPORTS TECHNOLOGY GOVERNMENT SERVICES

Source: Millennial Media, Q3 2012. Data is based on the Top 750 Campaigns on Millennial Medias Platform in Q3 2012.

574% 431% 421% 417% 294% 294%

Source: Millennial Media, Q3 2012. Data is based on the Top 750 Campaigns on Millennial Medias Platform in Q3 2012.

Insights:
Telecommunications was again the number one vertical on our platform in Q3 (Chart A), a position it has held for the rst nine months of 2012. Television networks have maintained their spend throughout the year to advertise new shows and seasons, and promote a variety of viewing options on consumers mobile devices. Travel moved into the number ve spot on the Top 10 Global Advertising Verticals on our platform this quarter (Chart A), with year-over-year spend increasing 430% (Chart B). Travel advertisers ran campaigns to drive consumers to mobile application and booking sites for their summer travel plans. Ten verticals experienced triple-digit growth on our platform in Q3 2012, the top six are shown in Chart B. The Automotive vertical grew over 570% year-over-year in Q3, after growing over 370% in Q2. Automotive brands have been consistent mobile advertisers on our platform in both spend and growth over the last three quarters. The Government Services vertical grew almost 300% on our platform in Q3 (Chart B). Though not a Top 10 Vertical, U.S. election-related advertisers utilized mobile advertising during the summer months to raise voter awareness in anticipation of the November 2012 U.S. elections.

EMEA TREND: RETAIL ADVERTISERS

The Retail & Restaurants vertical was the third largest in the EMEA region in Q3 2012. Retail advertisers ran mobile ads with rich media campaigns that drove consumers to m-commerce experiences, often through branded applications.

TOP EMEA VERTICALS: 1 Finance

2 Automotive 3 Retail & Restaurants

Source: Millennial Media, Q3 2012.

In the UK, mobile retailer Carphone Warehouse ran a campaign that used an interactive video interstitial and mobile circular ad unit to engage consumers. To learn more about their success, visit: www.millennialmedia.com/advertise/campaign-success.

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Global Mobile Advertiser Trends: Campaign Engagement Methods & Goals

DECEMBER 2012

Post-Click Campaign Action Mix

CHART C
50%

40%

30%

20%

32%

41% 23%
ENROLL/JOIN/ SUBSCRIBE

10%

24%
M COMMERCE

28% 10% 13%

RETAIL PROMOTION SITE SEARCH

19%
STORE LOCATOR/ VIEW MAP

0%

14%
WATCH VIDEO

APPLICATION DOWNLOAD

SOCIAL MEDIA

PLACE CALL

Source: Millennial Media, Q3 2012. Data is based on the Top 750 Campaigns on Millennial Medias Platform in Q3 2012.

Insights:
m-Commerce represented 24% of the Post-Click Campaign Action Mix on our platform in Q3 2012 (Chart C). Clothing advertisers in the Retail & Restaurant vertical utilized mobile ads to drive consumers to shop online, often through their branded applications. Traditional brick and mortar retailers led consumers to an m-commerce experience that oered multiple delivery options, such as in-store pickup or free shipping. Social Media was utilized in 28% of the campaigns on our platform in Q3 (Chart C). Automotive brands used this action to drive consumers to their social media sites so in-market auto intenders could interact with a potential brand and see what other shoppers were saying about their vehicles. Multiple verticals ran Site Search campaigns to lead mobile users to their mobile-optimized sites, where a variety of follow up actions could take place, such as learning more about a product, reading reviews, or taking a survey. Site Search represented 41% of the post-click actions on our platform in Q3 2012 (Chart C). Sustained In-Market Presence represented 26% of Advertisers Campaign Goals on our platform in Q3 2012 (Chart D). Travel brands, such as hotels and booking sites, leveraged mobile to drive consumers to their applications in order to search, research, or book travel during the summer season.

Advertisers Campaign Goals

CHART D

7% 11% 16% 17%

26%

23%

SUSTAINED IN MARKET PRESENCE SITE TRAFFIC REGISTRATIONS BRAND AWARENESS PRODUCT LAUNCH/RELEASE INCREASED FOOT TRAFFIC

Source: Millennial Media, Q3 2012. Data is based on the Top 750 Campaigns on Millennial Medias Platform in Q3 2012.

APAC SPOTLIGHT
CPG/FMCG advertisers in the Asia-Pacic region continued to leverage mobile campaigns and was the largest vertical by spend in Q3 2012, experiencing triple-digit growth year-over-year. The Automotive vertical moved into the Top 10 Verticals in the APAC region for the rst time after seeing signicant growth in mobile advertising spend by these brands year-over-year. Automotive advertisers in APAC ran rich media campaigns to drive consumer awareness of new car models.

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Mobile Advertiser Trends: Audience Targeting & Insights

DECEMBER 2012

Top Audiences in the Telecom Vertical

CHART E
Fashionistas Business & Finance Enthusiasts In-Market Auto Buyer Movie Bus Insurance Shoppers

Vacationers
Source: Millennial Media Q3 2012.

Parents

Business Travelers

Tradesmen

Mobile Switchers

Insights:
Advertisers in the Telecom vertical have consistently been top spenders in mobile advertising on our platform throughout the year. The Telecom vertical includes such companies as mobile carriers and landline and cable companies. Many consumers have become more comfortable with using multiple devices to receive communications and entertainment programming, and Telecom brands have followed. Brands in this vertical utilized mobile, and its features to better reach their target audiences. This quarter, we take a look at the top performing audiences in the Telecom vertical. Insurance Shoppers, Mobile Switchers, and Fashionistas were just some of the top performing audiences in the telecom vertical in Q3 2012. Business Travelers and Vacationers were also among the top audiences on our platform for Telecom brands. Mobile users on the go, including those traveling for business and for pleasure, are comfortable watching their favorite TV programming on a mobile device when they are away from their home television set. Tradesmen were another of the top audiences for the Telecom vertical. Tradesmens jobs put them on the go all day long, without constant access to a desktop computer or a landline phone. Tradesmen can work at multiple job sites or locations in the eld of building, construction, and repair. This audience leverages mobile to stay connected while on a job site, to nd their way from one location to the next, and to place orders for parts.

NORTH AMERICAN TREND: HYPER LOCAL TARGETING

One of the unique features of mobile is the ability to target the right consumers at the right place and time. Hyper-local targeting has helped Retail & Restaurant brands to do just this around their locations. Retail brands have been successful using location-aware banners as a form of hyper-local targeting as part of their mobile strategy. These banners inform consumers how far they are from a store location, and consumers can click on them to see a map and directions to the store. Restaurant advertisers have also been able to utilize hyper-local targeting around restaurant locations, serving hungry consumers a coupon when they are nearby. For more information on how Retail & Restaurants brands use mobile, download the infographic: www.millennialmedia.com/rrtrends.

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Device Trends
DECEMBER 2012

Device Mix Q3 2012

Ranked by Impressions CHART F

OS Mix

Ranked by Impressions CHART G

1%

5% 20% 75%
8%
Smartphones Non-Phone Connected Devices Feature Phones

5%
Android iOS BlackBerry OS Windows Symbian

52% 34%

Source: Millennial Media, Q3 2012. Smartphone data does not include what could be considered smartphones running proprietary Operating Systems, e.g. Samsung Instinct, LG Vu.

Source: Millennial Media, Q3 2012.

Top Five Tablets on the Millennial Media Platform

By Impressions CHART G

DID YOU KNOW?

3
In Q3 2012, Apple and Samsung were again the top two manufacturers on our platform, gaining market share from previous quarters. To learn more about the latest mobile device and operating system trends, download Millennial Medias November Mobile Mix Report, featuring a spotlight on mobile in the Asia-Pacic region. Visit www.millennialmedia.com/mobile-intelligence/mobile-mix to download now.

Apple iPad*

Samsung Galaxy Tab*

Amazon Kindle Fire*

Acer Iconia

Motorola Xoom

* Ranked in the top 20 among all mobile devices

Source: Millennial Media, Q3 2012.

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S.M.A.R.T. Glossary of Terms

DECEMBER 2012

Audience Targeting A strategy used by advertisers to deliver relevant messaging to specic target audiences. Built upon massive volumes of diverse user, location, app, and 3rd party data, Millennial Medias 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 Medias 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 oers the user more advanced capabilities beyond just voice and mobile web access. Vertical The classication of advertisers by industry.

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Summary & Reporting Methodology

DECEMBER 2012

About Millennial Media Millennial Media is the leading independent mobile advertising platform company. Our technology, tools and services help app developers and mobile website publishers maximize their advertising revenue, acquire users for their apps and gain insight about their users. We oer advertisers signicant audience reach, sophisticated targeting capabilities and the ability to deliver rich and engaging ad experiences to consumers on their mobile connected devices. Visit www.millennialmedia.com for more information. 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.

2012 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

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